HBA-EVB S.B. 139 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 139 By: Moncrief Insurance 4/24/1999 Engrossed BACKGROUND AND PURPOSE Currently, state law provides an insurance premium discount to a homeowner who uses certain fire alarms or sprinkler systems. A less costly fire suppression system, known as a stovetop fire suppression device, is not eligible for existing premium discounts, although the device self-activates and produces a fire-retardant powder when temperatures exceed a certain level. S.B. 139 requires insurance providers to reduce the insurance premium of a homeowner who installs a stovetop fire suppression device and requires the commissioner of insurance to establish the amount of the reduction. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Article 5.33C, Insurance Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 5, Insurance Code, by adding Article 5.33C, as follows: Art. 5.33C. REDUCTION IN HOMEOWNERS INSURANCE AND FIRE INSURANCE PREMIUMS FOR APPROVED FIRE SUPPRESSION DEVICES. Sec. 1. DEFINITIONS. Defines "stovetop fire suppression device" and "homeowners insurance." Sec 2. ELIGIBILITY FOR PREMIUM REDUCTION. Provides that a policyholder of a single-family or multifamily dwelling is eligible for a premium reduction for homeowners insurance coverage and for fire insurance coverage if the policyholder has correctly installed on the covered property a stovetop fire suppression device that has been approved by the State Fire Marshal through the commissioner. Sec. 3. AMOUNT OF PREMIUM REDUCTION. Requires the commissioner to establish by rule the amount of a premium reduction applicable under this article and authorizes the commissioner to adopt other rules necessary for the implementation of this article. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective beginning January 1, 2000. SECTION 3. Emergency clause.