BILL ANALYSIS H.B. 229 By: Pitts Environmental Regulation Committee Report (Amended) BACKGROUND AND PURPOSE In current law, there is no insurance or bonding requirement for persons who construct and maintain septic tank systems. Unscrupulous or unqualified installers can cause a property owner thousands of dollars in property damage, and improperly secured and installed equipment is a threat to the health and safety of all who enjoy use of the property. H.B. 229 requires any person seeking a license or registration under Chapter 37, Water Code, to provide evidence of insurance or bonding in an amount prescribed by the Texas Commission on Environmental Quality. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in Section 2 of this bill. ANALYSIS SECTION 1. Amends Section 366.071(a), Health and Safety Code, to require any applicant for a license or registration to provide evidence of an insurance policy or bond in an amount prescribed by the Texas Commission on Environmental Quality before a license or registration may be obtained. The section further requires the obligor on the bond or insurance policy to pay for property damage resulting from the person's work on an on-site sewage disposal system. SECTION 2. Requires the Texas Commission on Environmental Quality to adopt rules to implement this bill, by January 1, 2010. The section further states that the changes in law made by this act apply only to an applicant for a license or renewal occurring on or after June 1, 2010. SECTION 3. This act takes effect September 1, 2009. EFFECTIVE DATE September 1, 2009 EXPLANATION OF AMENDMENTS Committee Amendment No. 1 Section 366.033, Health and Safety Code, is amended to require counties to implement safety standards related to the construction, installation, alteration, extension, servicing, maintenance, and repair of on-site sewage disposal systems. BILL ANALYSIS BILL ANALYSIS H.B. 229 By: Pitts Environmental Regulation Committee Report (Amended) H.B. 229 By: Pitts Environmental Regulation Committee Report (Amended) BACKGROUND AND PURPOSE In current law, there is no insurance or bonding requirement for persons who construct and maintain septic tank systems. Unscrupulous or unqualified installers can cause a property owner thousands of dollars in property damage, and improperly secured and installed equipment is a threat to the health and safety of all who enjoy use of the property. H.B. 229 requires any person seeking a license or registration under Chapter 37, Water Code, to provide evidence of insurance or bonding in an amount prescribed by the Texas Commission on Environmental Quality. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in Section 2 of this bill. ANALYSIS SECTION 1. Amends Section 366.071(a), Health and Safety Code, to require any applicant for a license or registration to provide evidence of an insurance policy or bond in an amount prescribed by the Texas Commission on Environmental Quality before a license or registration may be obtained. The section further requires the obligor on the bond or insurance policy to pay for property damage resulting from the person's work on an on-site sewage disposal system. SECTION 2. Requires the Texas Commission on Environmental Quality to adopt rules to implement this bill, by January 1, 2010. The section further states that the changes in law made by this act apply only to an applicant for a license or renewal occurring on or after June 1, 2010. SECTION 3. This act takes effect September 1, 2009. EFFECTIVE DATE September 1, 2009 EXPLANATION OF AMENDMENTS Committee Amendment No. 1 Section 366.033, Health and Safety Code, is amended to require counties to implement safety standards related to the construction, installation, alteration, extension, servicing, maintenance, and repair of on-site sewage disposal systems.