bill ordering a study of school insurance costs

The text as introduced · 519 words

89R15799 MEW-D

By: Menéndez
S.B. No. 2462

A BILL TO BE ENTITLED

AN ACT

relating to an interim study by the State Office of Risk Management

regarding property and casualty insurance costs incurred by public

schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) In this section:

(1) "Agency" means the Texas Education Agency.

(2) "Office" means the State Office of Risk

Management.

(b) The office shall, in collaboration with the agency,

conduct an interim study on the costs of insuring public school real

property, using information provided by the agency, to develop a

statewide strategy to lower the costs of property and casualty

insurance for public schools in this state while ensuring that all

real property owned by public schools in this state, including

buildings, facilities, and land, is adequately insured.

(c) The agency shall require each school district and

open-enrollment charter school to submit to the agency by a date

prescribed by the agency the following information:

(1) the total insurable value of each building or

facility owned or leased by the district or school;

(2) the costs of property damage incurred by the

district or school during the preceding 10 years;

(3) the cost of property and casualty insurance to

insure all of the district's or school's assets; and

(4) the district's or school's protocols for replacing

or repairing damaged property.

(d) The agency shall report the information submitted by

each school district and open-enrollment charter school to the

office by a date prescribed by the office.

(e) In conducting the interim study under Subsection (b) of

this section, the office shall collect information and solicit

input from risk pools in which school districts and open-enrollment

charter schools participate.

(f) Not later than September 1, 2026, the office shall

prepare and submit to the legislature and each risk pool described

by Subsection (e) of this section a report regarding the office's

findings and recommendations based on the interim study conducted

under this section. The report must include recommendations

regarding:

(1) a statewide strategy to lower the costs of

property and casualty insurance for public schools in this state

while ensuring that all real property owned by public schools in

this state is adequately insured;

(2) actions school districts and open-enrollment

charter schools can individually take to alleviate property and

casualty insurance costs;

(3) actions risk pools in which school districts and

open-enrollment charter schools participate can take to lower costs

and remain resilient in the long term; and

(4) if the office recommends creating a statewide risk

pool to provide property and casualty insurance to school districts

and open-enrollment charter schools, the amount necessary for the

state to allocate to create that risk pool and the estimated savings

from operating a risk pool.

(g) This section expires September 1, 2027.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.