BILL ANALYSIS C.S.H.B. 2784 By: Munoz 4-26-95 Committee Report (Substituted) BACKGROUND Currently, anyone can own and operate a firm that engages in the practice of engineering, without being an engineer, themselves. In many instances, a company that is operated by an individual who is not an engineer, may use his or her authority as an employer, to entice their employees (engineers) into making engineering decisions that could critically effect the safety and welfare of the general public. The owners loyalty should be with the general public not the client. Additionally, an employee (engineer) may feel that their employment could be compromised, if he or she does not make changes at the request of the owner. PURPOSE CSHB 2784 would prohibit a firm from engaging in the practice of professional engineering unless a registered engineer is associated with the entity as an owner of the firm, or an executive officer if the entity is a corporation. 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 the Texas Engineers Practice Act, Art. 3271a, by adding Section 17A: Sec. 17A PRACTICE BY CERTAIN ENTITIES. (a) The Board may not consider a firm, partnership, association, corporation, or other business entity to be in compliance with Section 17 or 18 or this Act unless a registered engineer is associated with the entity as: (1) a principal if the entity is a firm, partnership, association, or other entity; or (2) a chief engineering officer if the entity is a corporation (b) An individual is considered to be associated with an entity only if the individual has the authority by the governing body of the entity to the extent that the entity is legally liable for all the individual's professional acts and judgements as a registered engineer. (c) The board may not adopt or enforce a rule that is inconsistent with this section. SECTION 2. Emergency Clause. Effective date: upon passage COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute added partnerships, associations or other entity's that may not be considered in compliance with this act unless a registered engineer is associated with the entity as a principal. The original did not provide for this. The substitute also includes chief engineering officer if the entity is a corporation, and the original provided for executive officer of a corporation. SUMMARY OF COMMITTEE ACTION HB 2784 was heard in a Public Hearing on April 26, 1995. The Chair laid out HB 2784 and recognized the author Rep. Munoz to explain the bill. Rep. Jones offered a complete committee substitute to HB 2784, and moved that the full committee adopt CSHB 2784. There was no objection. The Chair recognized the following person to testify in favor of the bill: Mr. Noe Garza, P.E., Engineering; The Chair recognized Rep. Munoz to close. Rep. Yarbrough moved that the full committee adopt HB 2784 as substituted, and that it be reported favorably to the full House with the recommendation that it do pass and be printed and placed on the Local and Consent Calendar. The motion prevailed by the following vote: AYES: 5, NAYS: 0, ABSENT: 4.