SRC-CTC C.S.S.B. 327 77(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 327
2001S0265/1By: Jackson
Business & Commerce
2/6/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, a fire extinguisher without a label of approval 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.
C.S.S.B. 327 authorizes a person to service certain portable fire
extinguishers. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of insurance
in SECTION 1 (Section 5, Article 5.43-1, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 5, Article 5.43-1, Insurance Code, to provide an
exception to the prohibition of the sale, lease, rental, servicing, or
installation of a fire extinguisher unit, system or equipment without a
label of approval or listing of a testing laboratory approved by the Texas
Department of Insurance, rather than the State Board of Insurance.
Requires the commissioner of insurance (commissioner) to permit a person,
by rule, to service a portable fire extinguisher regardless of whether it
carries a certain label. 

SECTION 2.  Amends Section 10, Article 5.43-1, Insurance Code, to make a
conforming change. 

SECTION 3.  Requires the commissioner of insurance to adopt rules under
Section 5(e), Article 5.431, Insurance Code, as added by this Act, not
later than January 1, 2002. 

SECTION 4.  Effective date: upon passage or September 1, 2001.


SUMMARY OF COMMITTEE CHANGES

Differs from the original by adding SECTION 4 to provide an effective date
for this Act.