HBA-NLM C.S.H.B. 452 76(R)BILL ANALYSIS
Office of House Bill AnalysisC.S.H.B. 452
By: Gutierrez
Public Safety
4/5/1999
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Currently, neither security services contractors nor investigation
companies are required to maintain workers' compensation insurance for
their employees. C.S.H.B. 452 provides that an applicant for a license as a
security service contractor or investigations company must file with the
Texas Board of Private Investigators and Private Security Agencies a
certificate of worker's compensation insurance coverage issued by an
insurer admitted to engage in the business of insurance in this state, or
satisfactory proof to the board that the applicant provides other
comprehensive employee injury benefit coverage. This bill prohibits a
license from being issued to any entity unless the applicant meets these
conditions. In addition, this bill provides that an applicant who elects
to provide other employee injury benefit coverage must provide coverage
that includes indemnity, wage replacement, and medical and legal liability
benefits for employee injuries that occur in the course and scope of
employment.
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 40, Private Investigators and Private Security
Agencies Act, Article 4413(29bb), V.T.C.S, by adding Subsections (c)-(e),
as follows:
(c) Prohibits a license from being issued to an applicant unless the
applicant files with the Texas Board of Private Investigators and Private
Security Agencies (board) a certificate of workers' compensation insurance
coverage issued by an insurer admitted to engage in the business of
insurance in this state, or satisfactory proof to the board that the
applicant provides other comprehensive employee injury benefit coverage, in
addition to the requirements of Subsection (a). (Subsection (a) states that
no license shall be issued under this article unless the applicant files
with the board evidence of a policy of general liability insurance
according to the provisions set forth in this subsection. The policy of
general liability insurance shall be conditioned to pay the amount of
damages occurring from bodily injury, property damage, or personal injury,
caused by an event involving the principal, its servants, officers, agents,
or employees in the conduct of any business licensed under this article.
Provides that the insurance policy must contain minimum limits of $100,000
per occurrence of bodily injury and property damage, and $50,000 per
occurrence for personal injury, with a minimum total aggregate amount of
$200,000 for all occurrences.)
(d) Provides that an applicant who elects to provide other employee injury
benefit coverage as described by Subsection (c) of this section must
provide coverage that includes indemnity, wage replacement, and medical and
legal liability benefits for employee injuries that occur in the course and
scope of employment in at least the minimum amounts provided by this
subsection.
(e) Provides that the liability of a certain license holder described by
this subsection is limited to $250,000 for all damages, costs, interest,
attorney's fees, and amounts previously paid as benefits to or for the
employee as medical expenses and wage replacement. Provides that the
limitation of liability under this subsection does not apply to a claim
based on the death of an employee caused by an intentional act or omission
of the license holder or gross negligence by the license holder.
SECTION 2. Amends Section 45, Private Investigators and Private Security
Agencies Act, Article 4413(29bb), V.T.C.S, by adding Subsection (j), to
require the board to require that in order to renew a license, a license
holder must provide proof that the license holder satisfies the insurance
requirements of Section 40(c) of this article.
SECTION 3. (a) Effective date: January 1, 2000.
(b) Makes application of Section 40, as amended by
this Act prospective.
(c) Makes application of Section 45, as amended by
this Act prospective.
SECTION 4. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
C.S.H.B. 452 modifies the original in SECTION 1 (proposed Section 40(c),
Private Investigators and Private Security Agencies Act, Article
4413(29bb), V.T.C.S) by providing that an applicant for a license must file
with the Texas Board of Private Investigators and Private Security Agencies
a certificate of workers' compensation insurance coverage issued by an
insurer admitted to engage in the business of insurance in this state, or
satisfactory proof to the board that the applicant provides other
comprehensive employee injury benefit coverage, in addition to the other
requirements of this section. This bill changes the requirement in the
proposed Subsection (c) of the original bill relating to evidence filed
with the board of a current policy of workers' compensation insurance
coverage issued by a licensed insurer in this state, or an equivalent form
of insurance coverage approved by the Texas Workers' Compensation
Commission.
C.S.H.B. 452 modifies the original in SECTION 1 (Section 40, Private
Investigators and Private Security Agencies Act, Article 4413(29bb),
V.T.C.S) by adding a new Subsection (d) to provide that an applicant who
elects to provide other employee injury benefit coverage as described by
Subsection (c) of this section must provide coverage that includes
indemnity, wage replacement, and medical and legal liability benefits for
employee injuries that occur in the course and scope of employment in at
least the minimum amounts provided by this subsection.
C.S.H.B. 452 modifies the original in SECTION 1 (Section 40, Private
Investigators and Private Security Agencies Act, Article 4413(29bb),
V.T.C.S) by adding a new Subsection (e) to provide that the liability of a
certain license holder described by this subsection is limited to $250,000
for all damages, costs, interest, attorney's fees, and amounts previously
paid as benefits to or for the employee as medical expenses and wage
replacement. Provides that the limitation of liability under this
subsection does not apply to a claim based on the death of an employee
caused by an intentional act or omission of the license holder or gross
negligence by the license holder.
C.S.H.B. 452 modifies the original by adding a new SECTION 2 (Section 45,
Private Investigators and Private Security Agencies Act, Article
4413(29bb), V.T.C.S) to add Subsection (j), requiring the board to require
that in order to renew a license, a license holder must provide proof that
the license holder satisfies the insurance requirements of Section 40(c) of
this article.
C.S.H.B. 452 modifies the original by adding new text to SECTION 3
(redesignated from proposed SECTION 2), to make the application of Sections
40 and 45, as amended by this Act, prospective. This bill changes the
proposed effective date from September 1, 1999, to January 1, 2000.
C.S.H.B. 452 modifies the original to redesignate the proposed SECTION 3
(emergency clause) to SECTION 4.