HB1576 - Relating to a grant program for hurricane and windstorm loss mitigation for single-family residential property.

      By: Oliverson, et al. H.B. No. 1576       A BILL TO BE ENTITLED   AN ACT   relating to a grant program for hurricane and windstorm loss   mitigation for single-family residential property.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle A, Title 10, Insurance Code, is amended   by adding Chapter 1813 to read as follows:   CHAPTER 1813.   GRANT PROGRAM FOR HURRICANE AND WINDSTORM LOSS   MITIGATION FOR SINGLE-FAMILY RESIDENTIAL PROPERTY           Sec.   1813.001.     DEFINITION. In this chapter, "program"   means the hurricane and windstorm loss prevention grant program   established under this chapter.           Sec.   1813.002.     CONSTRUCTION OF CHAPTER. This chapter does   not create an entitlement for property owners or obligate the state   to fund the inspection or retrofitting of residential property in   this state.           Sec.   1813.003.     RULEMAKING. The commissioner may adopt   rules necessary to implement this chapter.           Sec.   1813.004.     ESTABLISHMENT OF PROGRAM. The commissioner   shall establish the hurricane and windstorm loss prevention grant   program to provide grants to retrofit eligible residential property   to resist hurricane and windstorm losses.           Sec.   1813.005.     ELIGIBILITY. An owner of residential   property may apply for a grant under the program if:                 (1)  the property to be retrofitted is:                       (A)     a single-family home or HUD-code   manufactured home, as defined by Section 1201.003, Occupations   Code; and                       (B)     the owner's residence homestead, as defined   by Section 11.13, Tax Code; and                 (2)     the owner and the property meet other eligibility   requirements for the program prescribed by commissioner rule.           Sec.   1813.006.     AWARD OF GRANTS. The commissioner may award   grants under the program to eligible applicants to ensure the state   purpose of protecting public safety during a hurricane or windstorm   is achieved.   The commissioner may only award a grant under a   contract between the department and a grant recipient that includes   provisions under which the department is given sufficient control   to ensure the state purpose is accomplished and the state receives   the return benefit.           Sec.   1813.007.     USE OF GRANT. (a) A grant under the program   must be used to retrofit the property that is the subject of the   grant to one of the following:                 (1)     the fortified home hurricane standard or fortified   home high wind and hail standard adopted by the Institute for   Business and Home Safety; or                 (2)     another mitigation program, construction   technique, or standardized code that is:                       (A)     submitted by an insurer or other entity and   approved by the commissioner; or                       (B)     adopted by the commissioner on the   commissioner's own initiative.           (b)     A property that is a HUD-code manufactured home, as   defined by Section 1201.003, Occupations Code, in wind zone II as   designated by the United States Department of Housing and Urban   Development must be retrofitted to the fortified home hurricane   manufactured/modular home guidelines adopted by the Institute for   Business and Home Safety.           Sec.   1813.008.     PERMITTING AND INSPECTIONS. (a)   The   recipient of a grant under this chapter shall secure all required   local permits and inspections for a retrofitting project to be   performed using the grant and ensure that the project is performed   in accordance with local building codes.           (b)     The department or a political subdivision in which   property for which a grant is awarded is located may inspect the   property at any time during the progress of or following completion   of the retrofitting project for compliance with laws applicable to   the project.           Sec.   1813.009.     HURRICANE AND WINDSTORM MITIGATION ACCOUNT.   (a)   The hurricane and windstorm mitigation account is a dedicated   account in the general revenue fund.   Money in the account may be   appropriated only to the department and only for the purpose of   implementing the program.           (b)  The account is composed of:                 (1)     gifts, grants, donations, and legislative   appropriations; and                 (2)     interest earned on the investment of money in the   account.           (c)     Section 403.0956, Government Code, does not apply to the   account.           (d)     The department administers the account. The department   may solicit and receive gifts, grants, and donations from any   source for the benefit of the account.           Sec.   1813.010.     NONPROFIT ADMINISTRATION. (a)   The   commissioner may make grants or funding available through the   program to a nonprofit organization for use by the organization to   retrofit eligible property in the manner required by this chapter.           (b)     A nonprofit organization that received a grant or   funding under this section must administer the grant or funding in   the same manner as the program is required to administer grants or   funding.   The organization shall provide any documentation   requested by the department in a timely manner.           Sec.   1813.011.     MANDATORY DISCOUNT OR RATE REDUCTION. (a)   This section applies to each insurer authorized to engage in the   business of residential property insurance or residential fire and   allied lines insurance in this state, including a capital stock   insurance company, mutual insurance company, county mutual   insurance company, Lloyd's plan, and reciprocal or interinsurance   exchange.           (b)  This section does not apply to:                 (1)  the Texas Windstorm Insurance Association; or                 (2)  a commercial insurance policy.           (c)     An insurer offering a policy of insurance described by   Subsection (a) shall provide an actuarially justified premium   discount or rate reduction for property that has been certified as   complying with the eligibility standards for the grant program   established under Section 1813.004 and any related inspection or   certification requirements. An insurer may require reasonable   evidence of eligibility, inspection, and certification.           (d)     The commissioner may adopt rules necessary to implement   this section. A standard discount amount, target, or benchmark   established under such rules shall be optional and primarily for   the benefit of insurers that are unable to obtain actuarially valid   data to provide a premium discount or rate reduction under   Subsection (c) due to inadequate resources or experience.          SECTION 2.  (a) The Texas Department of Insurance shall   implement Chapter 1813, Insurance Code, as added by this Act, and an   insurer is required to comply with Section 1813.011, Insurance   Code, as added by this Act, only if the legislature appropriates   money specifically for issuing grants under that chapter.          (b)  Section 1813.011, Insurance Code, as added by this Act,   applies only to an insurance policy delivered, issued for delivery,   or renewed on or after September 1, 2026.          (c)  An insurer that, immediately before September 1, 2026,   offers an actuarially justified premium discount or rate reduction   as described by Section 1813.011(c), Insurance Code, as added by   this Act, and continues to offer the discount or rate reduction on   and after September 1, 2026, is not required to offer an additional   discount under Section 1813.011, Insurance Code, as added by this   Act.          SECTION 3.  This Act takes effect September 1, 2025.