SRC-LBB H.B. 1329 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1329
78R9517 MXM-FBy: McReynolds (Staples)
Business & Commerce
5/17/2003
Engrossed


DIGEST AND PURPOSE 

Commercial pesticide applicators must carry general liability insurance
with an additional endorsement to cover property under their "care,
custody, or control."  The same liability insurance requirements apply to
both wood treaters and pesticide applicators even though their business
practices differ.  Insurance companies are not willing to provide "care,
custody, or control" coverage to wood treaters because, unlike other
pesticide applicators, wood treaters service their own products as well as
the products of others.  As a result, insurance companies do not know how
to price the "care, custody, or control" product for wood treaters.  H.B.
1329 removes the requirement for a  "care, custody, or control"
endorsement from wood treaters' general liability policies.  The bill also
allows for additional alternatives to insurance such as a bond,
certificate of deposit, or other acceptable proof for both pesticide
applicators and wood treaters.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends the heading to Section 1951.312, Occupations Code, to
read as follows: 

 Sec. 1951.312.  LIABILITY INSURANCE; EXCEPTIONS.

SECTION 2.  Amends Section 1951.312, Occupations Code, by amending
Subsections (a) and (b) and adding Subsection (e), as follows: 

(a)  Prohibits the Texas Structural Pest Control Board (TSPCB) from
issuing or renewing a structural pest control business license until the
license applicant meets certain requirements. 

(b)  Requires a structural pest control business license holder to at all
times maintain the insurance policy or contract or the security described
by Subsection (a)(3) in the amount approved by TSPCB.  Provides that
failure to renew the policy or contract or maintain it or the security in
the required amount is a ground for suspension or revocation of the
license and a violation of this section. 

(e)  Requires an applicant who files proof under Subsection (a)(3) to
designate a third party not affiliated with the applicant to handle the
processing of damage claims regarding that security. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date:  September 1, 2003.