On June 19, 2015 Governor Greg Abbott signed House Bill 3750 requiring the State Office of Risk Management to conduct a study on insurable state assets. This bill requires information coordinated by the Legislative Budget Board to develop and recommend a statewide strategy to ensure that all real property owned by the state is adequately insured.
As the State does not currently have a system for consolidating and maintaining an inventory of all real property owned by the State of Texas, this bill requires the collection of an inventory of all real property, including buildings, facilities, and land, as well as the consolidation of this data in a single master database. The study will assist House and Senate Select Interim Committees, who will study the benefits of a comprehensive database, as well as uninsured/underinsured exposures, efficiencies in consolidated or revised reporting, appraisal requirements, and other related matters. The bill also includes a requirement to conduct an appraisal of Capitol Complex properties.
“This is a major step forward for enterprise risk management in the State of Texas,” said Stephen Vollbrecht, State Risk Manager. “Consolidating this information creates significant opportunities for Texas to understand the big picture, and to design solutions to protect the state’s physical and financial assets in the most efficient and cost-effective manner.”
The Office will begin work with the Legislative Budget Board in the near future to begin the coordinated collection of real property information and the resulting study, and assist the Legislature in the appraisal process. Two previous insurable asset studies were conducted by the Office in 2011 and 2013. This third study will provide the data needed to direct future enterprise recommendations for the State.
You can find full text of the legislation here.