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