2023 Texas Statutes › Agriculture Code › Title 5 - Production, Processing, and Sale of Horticultural Products › Subtitle B - Horticultural Diseases and Pests › Chapter 76 - Pesticide and Herbicide Regulation › Subchapter E. Use and Application › Section 76.111. Applicator Businesses; Proof of Financial Responsibility

Sec. 76.111.  APPLICATOR BUSINESSES;  PROOF OF FINANCIAL RESPONSIBILITY.  (a)  In this section:
(1)  "Applicator business" means a person who applies a state-limited-use or restricted-use pesticide or regulated herbicide to the land of another for compensation and who:
(A)  is a licensed commercial applicator;  or
(B)  employs at least one licensed commercial applicator.
(2)  "M-44 device" means a nonexplosive, spring-operated mechanical device designed to deliver a capsule of sodium cyanide into the mouth of the target animal as a method of livestock predation control.
(b)  This section does not apply to an employee or agent of an applicator business.
(c)  Except as otherwise provided by this section, each applicator business shall file with the regulatory agency issuing the license a liability insurance policy, certification of a policy, or other proof of financial responsibility considered acceptable by the department protecting persons who may suffer damages as a result of the operations of the applicator business, its employees, and its agents.
(d)  The proof of financial responsibility required by this section is not required to apply to damages or injury to agricultural crops, plants, or land being worked on by the applicator business, its employees, or its agents.
(e)  Except as otherwise provided by this section, the amount of the proof of financial responsibility may not be less than $100,000 for each occurrence for property damage and may not be less than $100,000 for each occurrence for bodily injury or a general aggregate at a minimum of $200,000 for each occurrence.  The head of a regulatory agency by rule may require different amounts of coverage for different classifications of operations under this chapter.  Each commercial M-44 applicator license applicant must provide proof of financial responsibility acceptable to the department for bodily injury and property damage coverage insuring the applicator against liability for damage to persons or property occurring as a result of operations performed in the course of the application to premises or any other property under the applicator's care, custody, or control.  The department will strive to set minimum acceptable coverage at an amount that is economically feasible to applicants.  The coverage must at all times be maintained at not less than the amount set by the agency head or the Texas Department of Insurance.
(f)  The head of a regulatory agency may accept a liability insurance policy in the proper sum which has a deductible clause in an amount of not more than $1,000 for the total amount of the liability insurance policy required by this section.  If the applicator business has not satisfied the requirement of the deductible amount in any prior legal claim, an agency head may not accept a policy with a deductible clause unless the applicator business furnishes the agency with a surety bond that satisfies the amount of the deductible clause as to all claims that may arise as a result of the operation of the applicator business.
(g)  An applicator business shall cease state-limited-use or restricted-use pesticide or regulated herbicide application operations during a period in which the applicator business is unable to provide adequate proof of financial responsibility under Subsection (e).
Acts 1981, 67th Leg., p. 1200, ch. 388, Sec. 1, eff. Sept. 1, 1981.  Amended by Acts 1981, 67th Leg., p. 2590, ch. 693, Sec. 6, eff. Sept. 1, 1981;  Acts 1987, 70th Leg., ch. 223, Sec. 2, eff. May 28, 1987;  Acts 1987, 70th Leg., ch. 630, Sec. 1, eff. June 19, 1987;  Acts 1989, 71st Leg., ch. 230, Sec. 95, eff. Sept. 1, 1989;  Acts 1997, 75th Leg., ch. 1369, Sec. 1, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 117, Sec. 1, 2, eff. Sept. 1, 1999.