BILL ANALYSIS H.B. 1655 By: Goolsby 4-26-95 Committee Report (Amended) BACKGROUND In the past, many contractors have cost the State revenues for non-payment of appropriate taxes, and insurance while at the same time not providing adequate protection for their workers and protecting the property owners by whom they were employed. Many of these contractors also were not in compliance with National and Municipal Building Codes with regard to certain fire and safety requirements. Texas is prepared by all accounts to experience continued growth in many sectors of our economy, including the construction trades. It is imperative that we act now to protect the consumer. PURPOSE HB 1655 would establish the Plastering Contractors Advisory Board, and provide for the registration of plastering contractors. HB 1655 would also establish the requirements for registration, renewal, continuing education as well as suspension, and revocation of plastering contractors. It establishes prohibited acts and provides for administrative penalty. RULEMAKING AUTHORITY HB 1655 provides additional authority in SECTION 2, to the Commissioner of Licensing and Regulation to make appointments to the Plastering Contractors Advisory Board. SECTION 2, also gives the Board authority to advise the commissioner in adopting rules for this act. SECTION 3 requires the commissioner to adopt rules relating to issuance of a certificate or registration as provided by this act. SECTION 5 allows the commissioner by rule to set application and registration fees. SECTION 6, allows the commissioner authority to approve subjects for classroom continuing study necessary for renewal. SECTION BY SECTION ANALYSIS SECTION 1: Definitions in the Act SECTION 2: Plastering Contractors Advisory Board- Provides for a Plastering Contractors Advisory Board made up of contractors and professionals from the general public familiar with the plaster industry to advise the Commission and the Commissioner of the Texas Department of Licensing and Regulations in the adopting of rules, setting fees, establishing registration renewal requirements, enforcing and administering the Act. SECTION 3: Authorizes the Commission to adopt rules relating to the registration, prescribe the forms to be used and issue a registration to those applicants who possess the qualifications. SECTION 4: States the Requirements for obtaining a License under the Act: A. Payment of the application and license fee. B. Show evidence of financial responsibility by posting a bond in amount prescribed. C. Provide proof of the coverage of insurance for workers' compensation coverage on an equivalent certificate and of general liability insurance. SECTION 5: Authorizes the Commission by rule to set the Registration fees under the Act. SECTION 6: Authorizes the Commissioner and Staff to set up a program for renewals and continuing education for the Registration or Certificates. SECTION 7: Authorizes the Commissioner and Staff of the Department to enforce the Act. SECTION 8: Sets the rules for suspension, revocation, renewal or reissuance of the Registration. SECTION 9: Prohibits a corporation, partnership or an individual from engaging in metal lathing, plastering, applying EIFS or fireproofing for compensation unless they hold a Registration. SECTION 10: Sets the administrative penalties for violating the Act. SECTION 11: TRANSITION. Deals with initial appointment to the Advisory Board, and expiration of initial terms. SECTION 12: Effective Sept. 1, 1995. Registration required and penalties in effect on March 1,1996. SECTION 13: Emergency clause. EXPLANATION OF AMENDMENTS Committee amendment #1 amends SECTION 1, Subsection (7) by adding that this definition does not apply to taping, floating, or repairing sheetrock. The amendment also amends SECTION 9, by adding "except as provided by Subsection (c), a". SECTION 9 is further amended by adding a new Subsection (c) and (d) to state that the requirements under Subsection (a) does not apply to a person who performs contracting if, the person is a maintenance man or maintenance engineer who is an employee of the property owner, lessee, or management company, or (2) the work is in connection with the business in which the person is employed, and if the person and the employer do not engage in the occupation of plastering contracting to the general public. Also provides that work described in Subsection (c) of this act remains subject to any permit, inspection, or approval requirements prescribed by a municipal ordinance. SUMMARY OF COMMITTEE ACTION HB 1655 was heard in a Public Hearing on April 11, 1995. The Chair laid out HB 1655 and recognized the author Rep. Goolsby to explain the bill. Rep. Jones offered a committee amendment to HB 1655, and moved adoption of committee amendment #1. There was no objection. The Chair recognized the following persons to testify in favor of the bill: Mr. Michael R. Boyd, Ray Boyd Construction Systems, Texas Bureau; Mr. Bradley Baker, Plaster Contractor, Tx. Lathing and Plastering Contractors Assn.; Mr. Steve Spillman, Lath, Plaster, Drywall, Spray Fireproofing Contractor. The Chair recognized the following persons to testify as a Resource Witness, registering neutral on the bill: Ms. Lora H. Williams, Dep. Exec. Dir., Tx. Dept. of Licensing and Regulation; The Chair recognized the following persons to testify on, registering neutral on the bill: Mr. David Mintz, Texas Apartment Assn.; The Chair recognized Rep. Goolsby to close. The Chair recognized members for questions. HB 1655 was left pending in committee. There was no objection. HB 1655 was considered in a Public Hearing on April 26, 1995. Rep. Goolsby moved to call up HB 1655 as amended, which was pending in committee. There was no objection. The Chair laid out HB 1655, and recognized Rep. Goolsby. Rep. Goolsby moved that the full committee adopt HB 1655 as amended, and that it be reported favorably to the full House with the recommendation that it do pass and be printed. The motion prevailed by the following vote: AYES: 6, NAYS: 3, ABSENT: 0.