SB2510 - Relating to establishment of the temporary prescribed burn manager self-insurance pool; authorizing a fee.

  89R11676 SCL-D     By: Kolkhorst S.B. No. 2510       A BILL TO BE ENTITLED   AN ACT   relating to establishment of the temporary 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 PRESCRIBED BURN MANAGER SELF-INSURANCE   POOL           Sec. 2155.001.  DEFINITIONS. In this chapter:                 (1)     "Fund" means the prescribed burn manager   self-insurance fund established under Section 2155.006.                 (2)     "Prescribed burn manager" means a person who is a   certified and insured prescribed burn manager under Section   153.048, Natural Resources Code.                 (3)     "Program" means the prescribed burn manager   self-insurance program administered under this chapter.                 (4)  "Service" means the Texas A&M Forest Service.           Sec.   2155.002.     PRESCRIBED BURN MANAGER SELF-INSURANCE   PROGRAM. (a) The service shall administer a prescribed burn   manager 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 prescribed burns a prescribed burn manager   conducts.           (b)     The coverage may indemnify a participating prescribed   burn manager for liability arising from a prescribed burn conducted   by the manager. The coverage limits provided must be the minimum   amounts required for purposes of Section 153.082, Natural Resources   Code, or a lesser amount determined necessary based on the   liquidity of the fund after deducting the cost of administering   this chapter.           (c)     The self-insurance pool may not provide coverage for a   risk other than a prescribed burn conducted by a participating   prescribed burn manager. 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 establish:                 (1)     eligibility 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   prescribed burn manager 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 each proposed prescribed burn to be covered   meets the eligibility requirements and equipment and safety   standards established under Section 2155.003(e).           Sec.   2155.005.     TRAINING REQUIREMENTS. (a) As a condition   for continuing participation in coverage provided under Section   2155.003, a participating prescribed burn manager shall complete a   wildfire suppression course administered by the service that trains   the manager 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 National Wildfire Coordinating Group standards;   and                 (2)     maintain records of a participating prescribed   burn manager's completion of the course.           Sec.   2155.006.     PRESCRIBED BURN MANAGER 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 a loss covered by self-insurance provided   under this chapter is limited to the assets of the fund, and the   state is not otherwise liable for that loss.           Sec.   2155.008.     SELF-INSURANCE FEE; COST-SHARING   REQUIREMENTS. (a) The service may assess and collect a reasonable   fee from participating prescribed burn managers 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 prescribed burn manager for similar   insurance coverage provided to that prescribed burn manager 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 prescribed burn manager shall report in the form and   manner prescribed by the service the following information for each   prescribed burn the manager conducts:                 (1)  the amount of land burned in acres;                 (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 prescribed burn manager has made excessive   claims under self-insurance coverage under this chapter, the   service may:                 (1)     terminate the manager's participation in the   self-insurance pool under this chapter; and                 (2)     refer the manager to the Prescribed Burning Board   for disciplinary action under Section 153.102, Natural Resources   Code, as if the manager violated Chapter 153 of that code.           Sec.   2155.011.     LEGAL REPRESENTATION. (a) The service may   employ an attorney to represent a prescribed burn manager 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.