Relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee, the official text

H.B. No. 2563

AN ACT

relating to establishment of the temporary certified and insured

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 CERTIFIED AND INSURED PRESCRIBED BURN

MANAGER SELF-INSURANCE POOL

Sec. 2155.001. DEFINITIONS. In this chapter:

(1) "CIPBM" means a person who is a certified and

insured prescribed burn manager under Section 153.048, Natural

Resources Code.

(2) "Fund" means the self-insurance fund established

under Section 2155.006.

(3) "Program" means the CIPBM self-insurance program

administered under this chapter.

(4) "Service" means the Texas A&M Forest Service.

Sec. 2155.002. CIPBM SELF-INSURANCE PROGRAM. (a) The

service shall administer a CIPBM 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 CIPBMs who are residents of this state.

(b) The coverage must indemnify a participating CIPBM for

liability arising from a prescribed burn. The coverage limits

provided must be the minimum amounts required for purposes of

Section 153.082, Natural Resources Code.

(c) The self-insurance pool may not provide coverage for a

risk other than prescribed burning conducted by a participating

CIPBM. 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 recommend:

(1) 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 CIPBM

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 the CIPBM to be covered is certified under

Section 153.048, Natural Resources Code.

Sec. 2155.005. TRAINING REQUIREMENTS. (a) As a condition

for continuing participation in coverage provided under Section

2155.003, a participating CIPBM shall complete a wildfire

suppression course offered or sanctioned by the service that trains

the CIPBM 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 the minimum standards for prescribed burn manager

certification under Section 153.048, Natural Resources Code; and

(2) maintain records of a participating CIPBM's

completion of the course.

Sec. 2155.006. TEMPORARY CIPBM 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 all losses covered by self-insurance provided

under this chapter is limited to the assets of the fund, and the

state is not otherwise liable for those losses.

Sec. 2155.008. SELF-INSURANCE FEE; COST-SHARING

REQUIREMENTS. (a) The service may assess and collect a reasonable

fee from participating CIPBMs 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 CIPBM for similar insurance coverage

provided to that CIPBM 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 CIPBM shall report in the form and manner prescribed

by the service the following information for each prescribed burn

the CIPBM conducts:

(1) the amount of land burned in acres by county;

(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 CIPBM has made excessive claims under

self-insurance coverage under this chapter, the service may:

(1) terminate the CIPBM's participation in the

self-insurance pool under this chapter; or

(2) refer the CIPBM to the Prescribed Burning Board

for disciplinary action under Section 153.102, Natural Resources

Code, as if the CIPBM violated Chapter 153 of that code.

Sec. 2155.011. LEGAL REPRESENTATION. (a) The service may

employ an attorney to represent a CIPBM 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.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2563 was passed by the House on May 6,

2025, by the following vote: Yeas 148, Nays 0, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2563 was passed by the Senate on May

25, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor