HBA-DMH S.B. 327 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 327
By: Jackson
Insurance
4/22/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, a fire extinguisher without a label of approval or an approved
listing of a testing laboratory cannot be leased, sold, rented, serviced,
or installed. Once used, a portable fire extinguisher will often have the
label of approval missing or defaced.  A missing label often results in the
fire extinguisher being discarded unnecessarily. Senate Bill 327 authorizes
a person to service such portable fire extinguishers.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Section 5, Article 5.43-1, Insurance Code) and SECTION 3 of this
bill.  

ANALYSIS

Senate Bill 327 amends the Insurance Code to require the commissioner of
insurance (commissioner), by rule, to permit a person to service a portable
fire extinguisher regardless of whether it carries a label of approval or
listing of a testing laboratory approved by the Texas Department of
Insurance.  The bill requires the commissioner to adopt such rules not
later than January 1, 2002.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.