HBA-GUM, LCA H.B. 3207 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3207
By: Ramsay
Judicial Affairs
7/27/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Texas Legislature, a district clerk was required to
obtain errors and omissions insurance or similar coverage from a
governmental pool operating under Chapter 119, Local Government Code
(County Government Liability Insurance Pool).  This language did not
recognize the use of self-insurance funds, also known as governmental and
intergovernmental pools, or risk retention groups authorized under Article
715c, V.T.C.S.  Additionally, the law required a district or deputy clerk
to obtain a separate policy to cover losses due to burglary and other
enumerated occurences. 

H.B. 3207 amends Section 51.302, Government Code (Bond; Oath; Insurance) to
establish that a clerk may obtain coverage issued by a governmental unit
under Article 715c, V.T.C.S.  Additionally, this bill provides that both
types of required coverage are addressed in Section 51.302, and increases
the minimum amount of coverage a clerk must purchase. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 51.302(c), (d), (e), and (f), Government Code, as
follows: 

(c)  Authorizes a district clerk to obtain an insurance policy from a
self-insurance fund or risk retention group created by one or more
governmental units under Article 715c (Issuance of Bonds for Self-Insurance
Fund, Risk Retention Groups), V.T.C.S., in addition to a policy or coverage
from a governmental pool operated under Chapter 119 (County Government
Liability Insurance Pool), Local Government Code.  Increases from $10,000
to $20,000 the minimum amount of liability of the policy or other coverage
document. 

(d)  Requires each district clerk to obtain an insurance policy or similar
coverage described by Subsection (c) to cover losses from burglary, theft
robbery, counterfeit currency, or destruction.  

(e)  Redesignated from existing Subsection (d).  Authorizes the
commissioners court to establish a contingency fund to provide the coverage
required by Subsection (d) if it is determined by the district clerk that
insurance coverage is unavailable at a reasonable cost. Deletes existing
Subsection (e) to make a conforming change. 

(f)  Makes a conforming change.

SECTION 2.  Emergency clause.
  Effective date: upon passage.