BILL ANALYSIS


                                                        H.B. 1353
                                            By: Crabb (Patterson)
                                      Intergovernmental Relations
                                                          4-18-95
                              Senate Committee Report (Unamended)
BACKGROUND

Many cities in Texas require plumbers to secure a license and
permit bond before issuing a permit.  These bonds can reach up to
$5,000 and are relatively easy to acquire, and generally have a
minimum fee of $50.

Many cities will not issue permits to contractors unless they have
general liability insurance containing a completed operations
clause.  Frequently, contractors operating in and around larger
cities in Texas are insured in this manner and still may be
required to purchase a license and permit bond in each town in
which 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.  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, H.B. 1353 requires a political subdivision to accept
a certificate of insurance instead of a bond from a master plumber
to meets requirements relating to the issuance of certain plumbing
permits.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 15, Article 6243-101, V.T.C.S. (The
Plumbing License Law), as follows:

     Sec. 15.  New heading:  LOCAL RULES AND REGULATIONS.  (a) 
     Created from existing text.
     
     (b)  Requires a political subdivision that requires a master
       plumber to have a bond before the master plumber may be
       issued a permit by the subdivision to also accept, instead
       of a bond, a certificate of insurance that meets the
       requirements of Subsection (c) of this section.
       
       (c)  Requires a certificate of insurance to be written by a
       state-licensed business, to provide for commercial liability
       insurance for the master plumber for certain claims, and 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.