Relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.
Summary
HB 2563 creates a temporary self-insurance program for certified and insured prescribed burn managers (CIPBMs) in Texas, administered by the Texas A&M Forest Service. The program is designed to provide general liability coverage for prescribed burns, while also identifying and reducing burn-related risks through loss-prevention and loss-control efforts. It applies only to resident CIPBMs who are certified under existing Natural Resources Code provisions and requires participating managers to complete a wildfire suppression course as a condition of continued coverage.
The bill establishes a dedicated self-insurance fund that may receive up to $25 million in legislative appropriations, participant fees, and interest earnings. The fund may be used only to pay claims and administer the program, and the state’s liability is limited to the assets in the fund. The service may set participation requirements, safety standards, deductibles, and fees, and it must collect burn data from participants to help adjust premiums. The program expires on September 1, 2040, and any remaining balance after claims are paid is transferred to the statewide fire contingency account.
Impact
HB 2563 adds a new chapter to the Insurance Code and interacts with existing Natural Resources Code provisions governing prescribed burning and prescribed burn manager certification. It creates a state-administered, limited-purpose liability pool rather than a broad insurance program, excludes workers’ compensation, auto liability, and professional liability, and authorizes the Texas A&M Forest Service to manage coverage, collect fees, and adopt rules. The bill also creates reporting and disciplinary mechanisms tied to excessive claims and requires coordination with the Prescribed Burning Board and wildfire response training standards.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 148-0 and the Senate 31-0, indicating unanimous or near-unanimous legislative approval. The lack of recorded committee transcript discussion suggests the measure was treated as a technical or policy-supportive response to a specific risk-management need rather than a contested issue.
Contention
No significant opposition is reflected in the available record. The main policy choices embedded in the bill are the scope of coverage, the size and funding of the pool, participant cost-sharing, and the requirement that participants complete wildfire suppression training. Any potential concern would likely center on the use of state-backed funds for liability coverage, the adequacy of deductibles and fees to prevent minor claims, and the possibility of disciplinary referral for excessive claims, but no specific stakeholder objections are documented in the provided materials.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Authorizing the commissioner of insurance to set the amount of certain fees and cause the publication of such fees in the Kansas register, authorizing the commissioner to reduce the number of board members on certain insurance-related boards, renaming the Kansas insurance department as the Kansas department of insurance, renaming the office of the securities commissioner as the department of insurance, securities division, renaming the securities commissioner as the department of insurance, assistant commissioner, securities division and eliminating the requirement of senate confirmation for appointees to such position, requiring the commissioner of insurance to maintain a list of eligible nonadmitted insurers and authorizing such nonadmitted insurers to transact business in Kansas with vehicle dealers and to provide excess coverage insurance on Kansas risks.