HB 2563

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
positive
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest

HB 2563 creates a temporary self-insurance pool for Certified and Insured Prescribed Burn Managers (CIPBMs), managed by the Texas A&M Forest Service. The goal of the legislation is to provide general liability insurance coverage to certified professionals conducting prescribed burns—an essential land management tool—when affordable private insurance options may not be available. The bill establishes a structured program to identify, mitigate, and Insure risks related strictly to prescribed burning operations carried out by CIPBMs under Chapter 153 of the Natural Resources Code.

The bill authorizes the Texas A&M Forest Service to develop and administer the program, set participation standards, hire staff, and implement training requirements. Specifically, participating CIPBMs must complete a wildfire suppression course focused on coordination with fire departments and managing unintended wildfire escapes. The self-insurance pool is capped financially by the assets of the fund itself, which may be composed of up to $25 million appropriated by the Legislature, fees collected from participants, and any accrued interest.

Importantly, the bill limits coverage strictly to prescribed burning, excluding other risks such as workers’ compensation, vehicle liability, or professional errors and omissions. The program’s fee structure and cost-sharing requirements—including deductibles—are designed to ensure sustainability without exposing the broader state budget to open-ended liabilities. Through a time-limited and tightly focused intervention, HB 2563 seeks to maintain the availability of prescribed burning services in Texas while enhancing safety, training, and risk management.

The substituted version of HB 2563 introduces several notable differences from the originally filed version (H.B. 2563), reflecting refinements in program scope, eligibility, administrative discretion, and legislative clarity.

One of the most significant changes is in terminology and focus. The originally filed bill refers broadly to “prescribed burn managers,” while the committee substitute narrows this to “Certified and Insured Prescribed Burn Managers (CIPBMs)”—explicitly tying eligibility to certification under Section 153.048 of the Natural Resources Code. This change adds precision and ensures that only fully credentialed individuals participate in the program, tightening risk management controls.

Additionally, the substitute version simplifies eligibility for coverage. In the filed version, participation approval depends on whether the individual prescribed burns meet service-determined eligibility and safety standards. In contrast, the substitute allows participation if the individual is certified under law, shifting from a burn-by-burn evaluation to a person-based qualification. This change streamlines the approval process and reduces administrative burden​.

The training requirement language was also revised. The original bill mandated that the training course align with National Wildfire Coordinating Group standards; the substitute removes this external benchmark and instead aligns the course with Texas-specific standards for prescribed burn certification. This enhances local control and flexibility while maintaining professional rigor.

Finally, the expiration provision was changed. The original bill included a sunset date of September 1, 2040, after which unused funds would transfer to a fire contingency account. This provision is absent in the substitute, suggesting that the new version either leaves the duration open-ended or defers the expiration mechanism to a future amendment or rule. This omission indicates a potential shift toward a longer-term or permanent program structure, depending on future legislative oversight.

Overall, the Committee Substitute clarifies, simplifies, and tightens eligibility and administration, likely to facilitate implementation while maintaining policy intent.

Author (1)
Trent Ashby
Co-Author (1)
Penny Morales Shaw
Sponsor (1)
Lois Kolkhorst
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of HB 2563 are currently indeterminate due to insufficient data on two key factors: the frequency and severity of prescribed burn-related losses, and the number of Certified and Insured Prescribed Burn Managers (CIPBMs) who would participate in the self-insurance program. This uncertainty limits the state's ability to project potential claims, administrative costs, or required reserves with precision​.

However, the bill does authorize the establishment of the Temporary CIPBM Self-Insurance Fund, which would be managed by the Texas A&M Forest Service (TAMFS). The fund would consist of participant fees, interest income, and legislative appropriations, capped at $25 million. While TAMFS is expected to finance ongoing administrative costs through fees and premiums collected from participating CIPBMs, it estimates that a minimum of $6 million in up-front legislative appropriation would be necessary to serve as a claims reserve. This amount is based on a standard risk threshold of three times the maximum loss limit outlined in the Natural Resources Code.

Importantly, the bill includes a statutory safeguard that limits the state’s liability to the assets available in the fund. Thus, beyond the initial seed appropriation (if granted), there would be no ongoing obligation from general revenue. Furthermore, the bill is expected to have no fiscal impact on local governments. In summary, while the program’s costs are not fully known, it is designed to be self-sustaining once launched, and the principal financial risk to the state lies in the size and structure of the initial reserve funding.

Vote Recommendation Notes

HB 2563 represents a pragmatic, market-sensitive approach to addressing a clear policy need: expanding the safe use of prescribed burning on private lands in Texas by supporting access to liability coverage for certified professionals. The devastating Panhandle Wildfire and similar events have made it evident that prescribed burning is a critical land management tool to reduce wildfire risk and improve ecological health. Yet, access to affordable liability insurance remains a key obstacle for many Certified and Insured Prescribed Burn Managers (CIPBMs), threatening the viability of this vital practice.

The bill establishes a temporary, self-contained self-insurance program administered by the Texas A&M Forest Service. Importantly, the program is voluntary, funded in part by participant fees and cost-sharing mechanisms, and designed to be financially self-sustaining. The bill explicitly limits the state’s liability to the assets of the insurance fund, avoiding any open-ended financial exposure for taxpayers. The fiscal note further affirms that no local government burden is expected, and the state’s initial investment—potentially $6 million—is a finite, capped appropriation necessary to build a foundational reserve.

From a liberty-oriented policy lens, the bill advances private property rights, promotes responsible land stewardship, and upholds the principles of limited government and personal responsibility. It supports small business operators in rural communities by offering a narrowly tailored solution that enhances their ability to operate while enforcing meaningful training and safety requirements. These elements, coupled with the bill’s temporary structure and defined sunset date, demonstrate legislative restraint and clear accountability.

Given its alignment with all five core liberty principles—Individual Liberty, Personal Responsibility, Free Enterprise, Private Property Rights, and Limited Government—Texas Policy Research recommends that lawmakers vote YES on HB 2563.

  • Individual Liberty: The bill empowers Certified and Insured Prescribed Burn Managers (CIPBMs) to safely and legally engage in prescribed burning without being excluded from the field due to unaffordable or unavailable liability insurance. By creating a voluntary, state-facilitated self-insurance program, the bill expands professional opportunities while preserving personal freedom and choice. Participants must voluntarily opt into the program, meaning the state does not mandate action but enables individuals to take more control of their professional liability needs.
  • Personal Responsibility: The bill places the burden of participation, training, and data reporting squarely on the shoulders of each CIPBM. To continue in the program, participants must complete wildfire suppression training and comply with equipment and safety protocols. They are also held accountable for reporting each burn's results, including any incidents or financial losses. This framework encourages responsible behavior while building a data-driven risk management system.
  • Free Enterprise: The bill addresses a gap in the commercial insurance market, where private insurers have been reluctant or unable to offer affordable coverage to prescribed burn professionals. Rather than imposing mandates or distorting the market through subsidies, the bill creates a self-insurance model that allows professionals to pool risk collectively. By stabilizing risk exposure for CIPBMs, the bill supports a critical land management service that underpins agricultural productivity and wildfire prevention, both central to rural economies.
  • Private Property Rights: Prescribed burning is a well-established method for landowners to manage vegetation, improve soil health, and prevent catastrophic wildfires. The bill strengthens landowners’ ability to hire CIPBMs by ensuring these professionals have access to basic liability coverage. This, in turn, protects landowners’ interests and ensures they can manage their land as they see fit, without facing excessive liability risk or reduced access to professionals.
  • Limited Government: Although the bill creates a new program, it does so in a restrained and temporary manner. The self-insurance pool is designed to be financially self-sustaining, limits the state’s liability strictly to the fund’s assets, and sunsets in 2040. This avoids creating a permanent bureaucratic structure or open-ended liability. The use of the Texas A&M Forest Service, as an existing state entity with relevant expertise, ensures administrative efficiency rather than duplication. Rulemaking authority is narrowly delegated and used to administer program logistics rather than expand state control over land use or insurance markets.
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