HB2563 - Relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.

      H.B. No. 2563         AN ACT   relating to establishment of the temporary certified and insured   prescribed burn manager self-insurance pool; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle G, Title 10, Insurance Code, is amended   by adding Chapter 2155 to read as follows:   CHAPTER 2155. TEMPORARY CERTIFIED AND INSURED PRESCRIBED BURN   MANAGER SELF-INSURANCE POOL           Sec. 2155.001.  DEFINITIONS. In this chapter:                 (1)     "CIPBM" means a person who is a certified and   insured prescribed burn manager under Section 153.048, Natural   Resources Code.                 (2)     "Fund" means the self-insurance fund established   under Section 2155.006.                 (3)     "Program" means the CIPBM self-insurance program   administered under this chapter.                 (4)  "Service" means the Texas A&M Forest Service.           Sec.   2155.002.     CIPBM SELF-INSURANCE PROGRAM. (a) The   service shall administer a CIPBM self-insurance program that:                 (1)     identifies and evaluates risks arising from   prescribed burns conducted under Chapter 153, Natural Resources   Code;                 (2)     maintains a loss-prevention and loss-control   program to reduce risks arising from prescribed burns;                 (3)     consolidates and administers prescribed burn risk   management and self-insurance programs; and                 (4)     provides prescribed burn self-insurance coverage   in accordance with Section 2155.003.           (b)  The service may employ staff to administer the program.           (c)     The director of the service may adopt rules to implement   and administer the program.           Sec.   2155.003.     SELF-INSURANCE POOL; COVERAGE. (a) The   program shall administer a self-insurance pool to provide general   liability coverage for CIPBMs who are residents of this state.           (b)     The coverage must indemnify a participating CIPBM for   liability arising from a prescribed burn. The coverage limits   provided must be the minimum amounts required for purposes of   Section 153.082, Natural Resources Code.           (c)     The self-insurance pool may not provide coverage for a   risk other than prescribed burning conducted by a participating   CIPBM. Prohibited coverage includes:                 (1)  workers' compensation;                 (2)  automobile liability; and                 (3)  errors and omissions or professional liability.           (d)     Self-insurance coverage provided under this section may   be funded only from money available from the fund.           (e)  The director of the service may recommend:                 (1)     requirements for participation in coverage under   this section; and                 (2)     equipment and safety standards for the prescribed   burns to be covered under this section.           Sec.   2155.004.     PARTICIPATION IN SELF-INSURANCE POOL. (a)   To participate in coverage provided under Section 2155.003, a CIPBM   must submit a written request to the program in the form and manner   prescribed by the service.           (b)     The director of the service shall approve the request   for participation if the CIPBM to be covered is certified under   Section 153.048, Natural Resources Code.           Sec.   2155.005.     TRAINING REQUIREMENTS. (a) As a condition   for continuing participation in coverage provided under Section   2155.003, a participating CIPBM shall complete a wildfire   suppression course offered or sanctioned by the service that trains   the CIPBM on:                 (1)     proper coordination with this state or local fire   departments in the event that a prescribed burn escapes its   predetermined boundaries; and                 (2)     proper assistance in the suppression of a   naturally occurring wildfire.           (b)  The service shall:                 (1)     develop the course described by Subsection (a) in   compliance with the minimum standards for prescribed burn manager   certification under Section 153.048, Natural Resources Code; and                 (2)     maintain records of a participating CIPBM's   completion of the course.           Sec.   2155.006.     TEMPORARY CIPBM SELF-INSURANCE FUND. (a)   The fund is an account in a depository selected by the board of   regents of The Texas A&M University System in the manner provided by   Section 51.003, Education Code, for funds subject to the control of   institutions of higher education under Section 51.002, Education   Code.           (b)  The fund is composed of:                 (1)     an amount not to exceed $25 million appropriated   by the legislature;                 (2)  money collected under Section 2155.008; and                 (3)  interest accruing on money in the fund.           (c)  Money in the fund may be spent only for:                 (1)  funding self-insurance under the program; or                 (2)     administering this chapter, including paying the   salaries and expenses of staff for the program and the fund.           Sec.   2155.007.     LIMITATION ON STATE'S LIABILITY. The   state's liability for all losses covered by self-insurance provided   under this chapter is limited to the assets of the fund, and the   state is not otherwise liable for those losses.           Sec.   2155.008.     SELF-INSURANCE FEE; COST-SHARING   REQUIREMENTS. (a) The service may assess and collect a reasonable   fee from participating CIPBMs to provide self-insurance coverage   under this chapter. The service shall also establish reasonable   cost-sharing requirements, including appropriate deductibles.           (b)     In establishing the amount of the fee and the   cost-sharing requirements, the service shall consider the amount   that could be charged to the CIPBM for similar insurance coverage   provided to that CIPBM in accordance with this code and ensure that   a deductible is sufficiently high to:                 (1)     deter the use of the self-insurance coverage for   minor losses; and                 (2)     ensure the self-insurance coverage is used only   for significant losses.           (c)     The service shall adjust the amount of a premium for the   self-insurance coverage under this chapter by using the information   collected under Section 2155.009.           (d)     Money collected under this section shall be deposited to   the credit of the fund.           Sec.   2155.009.     PRESCRIBED BURN DATA COLLECTION. A   participating CIPBM shall report in the form and manner prescribed   by the service the following information for each prescribed burn   the CIPBM conducts:                 (1)  the amount of land burned in acres by county;                 (2)  the date of the burn; and                 (3)     whether the burn resulted in a financial loss or   wildfire response.           Sec.   2155.010.     EXCESSIVE CLAIMS. If the service determines   that a participating CIPBM has made excessive claims under   self-insurance coverage under this chapter, the service may:                 (1)     terminate the CIPBM's participation in the   self-insurance pool under this chapter; or                 (2)     refer the CIPBM to the Prescribed Burning Board   for disciplinary action under Section 153.102, Natural Resources   Code, as if the CIPBM violated Chapter 153 of that code.           Sec.   2155.011.     LEGAL REPRESENTATION. (a) The service may   employ an attorney to represent a CIPBM in a liability action for   which insurance coverage is provided under this chapter.           (b)     The attorney general may not provide the services   described by Subsection (a).           Sec.   2155.012.     EXPIRATION OF PROGRAM AND CHAPTER. The   program and this chapter expire September 1, 2040. On expiration of   the program, the remaining balance in the fund that is not needed to   pay claims is transferred to the statewide fire contingency account   established under Section 88.117, Education Code.          SECTION 2.  This Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2563 was passed by the House on May 6,   2025, by the following vote:  Yeas 148, Nays 0, 1 present, not   voting.     ______________________________   Chief Clerk of the House                 I certify that H.B. No. 2563 was passed by the Senate on May   25, 2025, by the following vote:  Yeas 31, Nays 0.     ______________________________   Secretary of the Senate       APPROVED:  _____________________                      Date                           _____________________                    Governor