Formal rules have been issued for House Bill 2439 (HB 2439) that will make changes to inspection requirements for TWIA. TDI is currently requesting public comment until October 31, 2016. The law will apply to policies issued or renewed on or after January 1, 2017.

Highlights 

When was it passed? Last year by the 84th Texas Legislature, Regular Session (2015)

What does it do? Creates a two-path system to certify that a structure complies with the applicable windstorm building code. TDI will handle certification of on-going construction; TWIA will handle completed construction.

When does it go in effect ? January 1, 2017 for new and renewed policies

What is the status? TDI is in the public comment period; anyone can comment on the proposed formal rules by October 31. A public hearing on the rules will be held by TDI in Austin on October 21. This TDI bulletin contains more information about how to provide feedback.

Where are the proposed formal rules? A copy of the formal rules can be found on the TDI webpage.

Bill Background

HB 2439, enacted in 2015, amended several sections of the Texas Windstorm Insurance Act relating to the inspection requirements. One significant change is the addition of new Section 2210.2515, titled “Issuance of Certificates of Compliance.”

This section authorizes a person to apply to TWIA for a certificate of compliance (WPI-8) for a completed improvement if a licensed engineer designed the improvement, affixed the engineer’s seal to the design and submits an affirmation of compliance to TWIA, or the licensed engineer completes a sealed post-construction evaluation report that confirms compliance with the applicable building code. The law provides that TWIA will issue a certificate of compliance (WPI-8) once the professional engineer provides the required information.  

Section 2210.2515 also provides that if TDI cannot issue a certificate of compliance (WPI-8) on an ongoing improvement because TDI has not received all of the information and fees TDI requires, a person may apply for a certificate of compliance from TWIA. 

Bill Progress

The bill went into effect on September 1, 2015. The bill requires the Commissioner of Insurance to adopt rules no later than December 31, 2016.

TDI proposed formal rules to implement HB 2439 on September 27, 2016, and TWIA staff is in the process of reviewing them. There will be a public hearing regarding the formal proposal on October 21, 2016, and public comments may be submitted to TDI through October 31, 2016.

TWIA provided comments to the informal proposal and asked TDI to address areas of concern. Now that the formal rules have been proposed, TWIA will review them to identify changes from the informal rules. TWIA staff also plan to meet with TDI to discuss implementation logistics of the bill.

TWIA staff will also determine whether the Association needs to recommend any changes to the proposed formal rules and provide those comments to TDI by the October 31, 2016 deadline.