C.S.H.B. 1329 78(R)    BILL ANALYSIS


C.S.H.B. 1329
By: McReynolds
Licensing & Administrative Procedures
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Commercial pesticide applicators must carry general liability insurance
with an additional endorsement to cover property under their "care,
custody, or control".  The State of  Texas applies the same regulations to
wood treaters and pesticide applicators; however,  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. CSHB 1329  simply
removes the requirement for a  "care, custody, or control" endorsement
from wood treaters general liability policies.  It also allows for
additional surety alternatives to insurance such as a bond or a
certificate of deposit  for  both pesticide applicators and wood treaters. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Amends Section 1951.312. Occupations Code by adding the word "Exceptions"
to the title of the section and by amending Subsections (a) and (b) and
adding subsection (e). 
Subsection (a) (3) is added which allows businesses to have additional
forms of surety other  than insurance.  Subsection (a) (4) is added which
requires wood treaters who treat wood on commercial property owned by the
applicant to have general liability insurance and specifies the amount of
insurance. Section(b) is amended by including other forms of surety to the
requirement of maintaining financial responsibilities.  Subsection(e) is
added which requires a third party not affiliated with the applicant to
handle  processing of damage claims. 


EFFECTIVE DATE

September 1, 2003.


COMPARISON OF ORIGINAL TO SUBSTITUTE

Add language to (4) to further define qualifications before the board is
authorized to issue or renew a structural pest control license. The
language adds monetary figures to the amount of general liability
insurance policy. Specifically, the applicant must have a policy not less
than $200,000 for bodily injury and property damage coverage, with a
minimum total aggregate of $300,000 for all occurrences.