HBA-ATS S.B. 1610 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1610 By: Lucio Insurance 4/24/1999 Engrossed BACKGROUND AND PURPOSE Compressed air foam (CAF) technology is being used within Texas as a safer, more efficient means for fire suppression activities. Among its advantages, CAF minimizes water damages and protects exposures. Moreover, CAF technology aids in precise and extended projection of dry chemical solution to the source of the fire, thereby extinguishing the fire more rapidly. S.B. 1610 requires the use of compressed air foam technology in fire-fighting equipment to constitute a reduction in hazard by the insurance policy holder or holders. In addition, this bill includes other political subdivisions among the governmental entities to which the commissioner of insurance is authorized to give credit for each and every hazard these entities may reduce or entirely remove, and also for all added fire-fighting equipment, increased police protection, and any other equipment or improvement that has a tendency to reduce the fire hazard. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 5.33, Insurance Code, as follows: Art. 5.33. New title: CREDIT FOR REDUCING HAZARD. (a) Includes other political subdivisions among the governmental entities to which the commissioner of insurance (commissioner) is authorized, rather than to which the State Board of Insurance (board) is required to have full authority and power, to give credit for each and every hazard these entities may reduce or entirely remove, and also for all added fire fighting equipment, increased police protection, and any other equipment or improvement that has a tendency to reduce the fire hazard. Makes conforming changes. (b) Authorizes the commissioner, rather than requires the board, to compel any company to give any or all policy holders credit for any and all hazards said policy holder or holders may reduce or remove. (c) Includes the use of compressed air foam technology in fire-fighting equipment, in addition to the installation of a new standard fire hydrant approved by the Texas Department of Insurance (department), rather than the board, as activities required to constitute a reduction in hazard by the insurance policy holder or holders. Makes conforming and nonsubstantive changes. (d) Creates this subsection from existing text. SECTION 2.Makes application of this Act prospective for an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2000. SECTION 3.Effective date: September 1, 1999. SECTION 4.Emergency clause.