BILL ANALYSIS H.B. 1353 By: Crabb 3-15-95 Committee Report (Unamended) BACKGROUND Many cities in Texas require plumbers to secure a license and permit bond before issuing a permit. These bonds are generally in the amounts of one to two thousand dollars, but at times they can reach up to five thousand dollars. They are relatively easy to acquire and generally have a minimum fee of fifty dollars. However, many cities today will not issue permits to contractors unless they have general liability insurance containing a completed operations clause. Frequently, contractors operating in and around the larger cities in Texas are insured in this manner and still may be required to purchase a license and permit bond in each town they do business. It is commonly acknowledged that the insurance clearly provides more protection to the consumer and to the city than permit bonds do. Furthermore, cities retain the right to refuse a permit to contractors who have failed to compensate for damages to the city or to a consumer. PURPOSE As proposed, HB 1353 requires a political subdivision to accept a certificate of insurance from a master plumber that complies with certain provisions, if they are currently insured, in lieu of a license and permit bond. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 15, The Plumbing License Law, Article 6243-101, V.T.C.S. Sec. 15. New heading: LOCAL RULES AND REGULATIONS. Deletes MUNICIPAL and adds LOCAL. (b) Requires a political subdivision that requires a master plumber to have a bond before issuing a permit, to accept a certification of insurance that complies with the requirements of Subsection (c). (c) Requires a certificate of insurance to be: (1) written by a state licensed business, (2) to provide for commercial liability insurance, for claims for property damage or bodily injury, whether rising from a negligence claim or a contract claim; (3) be in a coverage amount of not less than $300,000 for all claims arising in any one-year period. SECTION 2. Effective date: September 1, 1995. Makes application of this Act prospective. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1353 was heard in a Public Hearing on March 15, 1995. The Chair recognized the following person to testify in favor of the bill: Mr. Edmund E. Hollub III, Modern Plumbing, Inc.; The Chair recognized the following person to testify neutral on the bill as a Resource Witness: Mr. Stanley J. Briers, State Board of Plumbing Examiners; Representative Yarbrough moved that the full committee adopt H.B. 1353, and that it be reported favorably to the full House with the recommendation that it do pass and be printed. The motion prevailed by the following vote: AYES: 8, NAYS: 0, ABSENT: 1