SRC-AMY S.B. 1844 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1844
By: Staples
Business & Commerce
4/9/2003
As Filed


DIGEST AND PURPOSE 

Currently, commercial pesticide professionals are required to carry
general liability insurance with an additional endorsement to cover
property under their care, custody, or control.  Although these
requirements are the same for wood treaters and those who apply pesticide,
the business practices differ.  Insurance companies are not willing to
offer the additional coverage to wood treaters because they service their
own products, in addition to others' products, leading to confusion
regarding setting insurance rates.  As proposed, S.B. 1844 provides
alternative proofs of satisfactory coverage for wood treaters and other
structural pest control professionals. 

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) Adds to the list of prerequisites for obtaining a structural pest
control business license, or a renewal thereof, filing with the Texas
Structural Pest Control Board (TSPCB) acceptable proof of sufficient
funds, not less than $300,000, for payment of claims of damage to persons
or property occurring as a result of operations performed negligently in
the course of structural pest control on any property under the
applicant's care or control, or filing satisfactory evidence, to TSPCB, of
general liability insurance coverage, if the applicant operates solely as
a wood treater. 

(b) Makes conforming changes.

(c) Requires an applicant who files proof under Subsection (a)(3) to
designate a third party, not affiliated with the applicant, to process
damage claims regarding that security. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date:  September 1, 2003.