SRC-DPW C.S.H.B. 3207 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 3207
76R10272 SMJ-DBy: Ramsay (Madla)
Jurisprudence
5/11/1999
Committee Report (Substituted)


DIGEST 

Currently, Texas law requires all district clerks to obtain errors and
omissions insurance or similar coverage from a governmental pool operating
under Chapter 119, Local Government Code, and requires a district or deputy
clerk to obtain a separate policy to cover losses due to burglary and other
enumerated occurrences.  The language of the law does not recognize the use
of self-insurance funds, also known as governmental and intergovernmental
pools, or risk retention groups authorized under Article 715c, V.T.C.S.
This bill would authorize a clerk to obtain coverage issued by a
governmental unit under Article 715c, V.T.C.S., and provide that both types
of required coverage are addressed in Section 51.302, and increase the
minimum amount of coverage a clerk is required to purchase. 

PURPOSE

As proposed, C.S.H.B. 3207 revises the requirements for insurance coverage
for district clerks. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 51.302(c), (d), (e), and (f), Government Code,
to require each district clerk to obtain an insurance policy from a
self-insurance fund or risk retention group created by one or more
governmental units under Chapter 1084, Acts of the 70th Legislature,
Regular Session, 1987 (Article 715c, V.T.C.S.) (self-insurance fund).
Requires the amount of the policy or other coverage document to be equal,
rather than in an amount equal, to the maximum amount of fees collected in
any year during the term of office immediately preceding the term for which
the insurance is obtained, except that the amount is required to be at
least $20,000, but not more than $700,000, rather than being prohibited
from being less than $10,000.  Requires each district clerk to obtain an
insurance policy or similar coverage from a governmental pool operating
under Chapter 119, Local Government Code, or from a self-insurance fund, to
cover the losses from burglary, theft, robbery, counterfeit currency, or
destruction.  Requires the amount of the policy or other coverage document
to be at least $20,000 but more than $700,000.  Authorizes a commissioners
court to establish a contingency fund to provide the coverage required by
Subsection (d).  Deletes a provision requiring each district clerk to
obtain an insurance policy.  Makes conforming changes.   

SECTION 2.Emergency clause.
  Effective date: upon passage.



SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 51.302, Government Code, by amending Subsections (c) - (f),
to require each district clerk to obtain an insurance policy from a
self-insurance fund.  Requires the amount of the policy or other coverage
document to be equal to the maximum amount of fees collected in any year
during the term of office immediately preceding the term for which the
insurance is obtained, except that the amount is required to be at least
$20,000, but not more than $700,000. Requires each district clerk to obtain
an insurance policy or similar coverage from a  governmental pool operating
under Chapter 119, Local Government Code, or from a selfinsurance fund, to
cover the losses from burglary, theft, robbery, counterfeit currency, or
destruction.  Requires the amount of the policy or other coverage document
to be at least $20,000 but more than $700,000.  Authorizes a commissioners
court to establish a contingency fund to provide the coverage required by
Subsection (d).  Deletes text regarding insurance to cover the district
clerk and any deputy clerk against losses from burglary, theft, robbery,
counterfeit currency, or destruction. Deletes a provision requiring each
district clerk to obtain an insurance policy.  Deletes proposed SECTION 2.
Makes conforming changes.