By Bosse H.B. No. 284 74R99 JMM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to regulation of locksmiths; providing penalties. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. PURPOSE. It is the intent of the legislature to 1-5 improve the general welfare and safety of the citizens of this 1-6 state by regulating the locksmithing industry in this state in 1-7 order to protect the best interests of both the industry and the 1-8 public. 1-9 SECTION 2. DEFINITIONS. In this Act: 1-10 (1) "Board" means the Locksmithing Advisory Board. 1-11 (2) "Commission" means the Texas Commission of 1-12 Licensing and Regulation. 1-13 (3) "Commissioner" means the commissioner of licensing 1-14 and regulation. 1-15 (4) "Department" means the Texas Department of 1-16 Licensing and Regulation. 1-17 (5) "Key duplicator" means a person licensed as a key 1-18 duplicator under this Act. 1-19 (6) "Locksmith" means a person licensed as a locksmith 1-20 under this Act. 1-21 (7) "Locksmithing" means the installation, repair, 1-22 replacement, rebuilding, rearrangement, or adjustment of a lock or 1-23 the mechanical parts of a lock. The term includes the adjustment 1-24 of a lock in a safe, vault, or vehicle. 2-1 (8) "Master locksmith" means a person licensed as a 2-2 master locksmith under this Act. 2-3 (9) "Person" means an individual. 2-4 (10) "Safe and vault technician" means a person 2-5 licensed as a safe and vault technician under this Act. 2-6 SECTION 3. EXEMPTIONS. This Act does not apply to: 2-7 (1) an employee of the federal government, the state, 2-8 or a political subdivision of the state if the employee performs 2-9 locksmithing only in the scope of the employee's official duties; 2-10 (2) a person, firm, or corporation that practices any 2-11 aspect of locksmithing only on property owned by that person, firm, 2-12 or corporation if the locksmithing activity does not affect the 2-13 welfare or safety of the general public; 2-14 (3) a builder or an employee or subcontractor of a 2-15 builder who installs locks in a building under construction or 2-16 newly constructed by the builder; or 2-17 (4) an automobile dealer or an employee or 2-18 subcontractor of an automobile dealer who repairs or repossesses 2-19 automobiles that are the property of the dealer or a customer of 2-20 the dealer. 2-21 SECTION 4. LOCKSMITHING ADVISORY BOARD. (a) The 2-22 Locksmithing Advisory Board is established as an advisory board to 2-23 the department. The board is composed of six members appointed by 2-24 the commissioner. A member holds office for a term of six years, 2-25 with two members' terms expiring on February 1 of each odd-numbered 2-26 year. The commissioner shall designate a member to serve as the 2-27 board's presiding officer. 3-1 (b) To be eligible for appointment to the board, a person 3-2 must have experience in the locksmithing industry. If possible, no 3-3 fewer than four members must be persons eligible for a master 3-4 locksmith license under this Act. The commissioner shall consider 3-5 persons recommended by locksmith associations in the state in 3-6 making the appointments. 3-7 (c) The commissioner may remove a member of the board for 3-8 inefficiency or neglect of duty in office. If a vacancy occurs on 3-9 the board, the commissioner shall appoint a member who represents 3-10 the same interests as the former member to serve for the unexpired 3-11 term. 3-12 (d) The board shall meet at least twice each year at the 3-13 call of the presiding officer at a place designated by the 3-14 presiding officer. A decision of the board is not valid unless 3-15 supported by a majority of the members present at the meeting at 3-16 which the decision is made. 3-17 (e) The board shall advise the commissioner in the adoption 3-18 of rules and the design of a licensing examination. 3-19 (f) A board member is entitled to a per diem as set by the 3-20 General Appropriations Act for each day that the member engages in 3-21 the business of the board. A member may not receive compensation 3-22 for the member's services. 3-23 SECTION 5. LICENSE ISSUANCE; RULES. (a) The commissioner 3-24 shall issue a license to an applicant for a locksmith license, 3-25 master locksmith license, key duplicator license, or safe and vault 3-26 technician license who passes the appropriate examination 3-27 prescribed by the commissioner and who possesses the other 4-1 qualifications for the specific license required by this Act or a 4-2 rule adopted under this Act. 4-3 (b) The commissioner shall: 4-4 (1) adopt rules relating to licensing under this Act; 4-5 and 4-6 (2) prescribe all forms required under this Act. 4-7 (c) The commissioner may adopt rules governing a person who 4-8 holds or applies for more than one type of license under this Act. 4-9 (d) A license issued under this Act is valid for one year 4-10 from the date of issuance. 4-11 SECTION 6. LOCKSMITH LICENSE. To qualify for a locksmith 4-12 license under this Act, a person must apply on a form prescribed by 4-13 the commissioner and demonstrate, in the manner required by the 4-14 commissioner, reasonable proficiency in the following locksmithing 4-15 procedures: 4-16 (1) making a key, other than by means of duplication 4-17 or code, to operate a specific lock; 4-18 (2) making a key, by means of duplication or code, to 4-19 operate a specific lock; 4-20 (3) opening a lock by means other than with an 4-21 existing key; 4-22 (4) making proper repairs to a damaged lock; 4-23 (5) installing properly a lock and a locking device; 4-24 and 4-25 (6) changing the combination of various types of locks 4-26 and setting a lock to a master system. 4-27 SECTION 7. MASTER LOCKSMITH LICENSE. To qualify for a 5-1 master locksmith license under this Act, a person must: 5-2 (1) apply on a form prescribed by the commissioner; 5-3 (2) have the qualifications required under this Act 5-4 for a locksmith license and safe and vault technician license; 5-5 (3) have at least 10 years of practical experience as 5-6 a locksmith; and 5-7 (4) demonstrate, in the manner required by the 5-8 commissioner, reasonable proficiency in: 5-9 (A) the charting and laying out of a master key 5-10 system; 5-11 (B) the interpretation of lock specifications; 5-12 and 5-13 (C) institutional and industrial lock 5-14 requirements. 5-15 SECTION 8. SAFE AND VAULT TECHNICIAN LICENSE. To qualify 5-16 for a safe and vault technician license under this Act, a person 5-17 must apply on a form prescribed by the commissioner and 5-18 demonstrate, in the manner required by the commissioner, reasonable 5-19 proficiency in the following safe and vault work procedures: 5-20 (1) opening a safe or vault by drilling or 5-21 manipulation; 5-22 (2) identifying a safe by outward appearance and 5-23 design; 5-24 (3) changing the combination on the locks of a safe or 5-25 vault; and 5-26 (4) repairing a lock and restoring a safe or vault to 5-27 useable condition to ensure security. 6-1 SECTION 9. KEY DUPLICATOR LICENSE. To qualify for a key 6-2 duplicator license under this Act, a person must apply on a form 6-3 prescribed by the commissioner and demonstrate, in the manner 6-4 required by the commissioner, that the person is proficient in 6-5 making keys to locks by making a duplicate of an original key 6-6 through the operation of a key machine. 6-7 SECTION 10. FEES. The commission by rule shall set license 6-8 and examination fees under this Act. 6-9 SECTION 11. EXAMINATIONS. (a) The commissioner shall 6-10 prepare examinations under this Act that test an applicant's 6-11 knowledge, skill, and efficiency in the field in which the 6-12 applicant seeks a license. 6-13 (b) A person who fails an examination may apply for 6-14 reexamination at a scheduled examination held at least six months 6-15 after the date the person failed the original examination. 6-16 (c) Examinations shall be offered in the state at least 6-17 twice a year at times and places designated by the commissioner. 6-18 SECTION 12. COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS. 6-19 (a) The commissioner shall enforce this Act. 6-20 (b) The department shall investigate allegations of 6-21 violations of this Act. The department may enter any place of 6-22 business or other establishment at which alleged illegal activity 6-23 occurs during reasonable business hours and without advance notice. 6-24 (c) The commissioner shall adopt rules for the registration 6-25 of professional and coin-operated key duplication machines. 6-26 SECTION 13. SUSPENSION, REVOCATION, AND RENEWAL OF LICENSES; 6-27 REISSUANCE. (a) After a hearing, the commissioner shall suspend 7-1 or revoke a license on a finding that a person: 7-2 (1) made a material misstatement in an application for 7-3 a license; 7-4 (2) wilfully disregarded or violated this Act or a 7-5 rule adopted under this Act; 7-6 (3) wilfully aided or abetted another in the violation 7-7 of this Act or a rule adopted under this Act; 7-8 (4) was convicted for a crime, an essential element of 7-9 which is misstatement, fraud, or dishonesty, or a felony; or 7-10 (5) engaged in dishonorable or unethical conduct 7-11 likely to deceive, defraud, or harm the public. 7-12 (b) The commissioner may reissue a license to a person whose 7-13 license has been revoked if the person applies in writing to the 7-14 department and shows good cause to justify reissuing the license. 7-15 SECTION 14. PROHIBITED ACTS. (a) A person may not 7-16 advertise, hold out, or act as a locksmith, master locksmith, safe 7-17 and vault technician, or key duplicator unless the person holds an 7-18 appropriate license under this Act. 7-19 (b) A person may not own or operate a professional key 7-20 duplication machine unless the person is licensed under this Act 7-21 and the machine is registered as provided by rules adopted under 7-22 this Act. 7-23 (c) A person may not own a coin-operated key duplication 7-24 machine unless the machine is registered as provided by rules 7-25 adopted under this Act. 7-26 (d) A person may not duplicate a key known to be a master 7-27 key, a key marked or stamped in a way indicating that the key is a 8-1 master key, or a key that is not permitted to be duplicated unless 8-2 the person is a locksmith or master locksmith licensed under this 8-3 Act. 8-4 (e) A person may not manufacture or purchase for sale or 8-5 resale to a person who is not a licensed locksmith any specialized 8-6 equipment used in the business, trade, or occupation of 8-7 locksmithing, including a lock pick, a pressure or jiggle key, a 8-8 try-out key, a depth key, or an automobile-opening device, and may 8-9 not dispose of the equipment to a person other than a person 8-10 licensed under this Act. 8-11 (f) A person may not sell a code manual used for 8-12 locksmithing or a safe manual to a person other than a person 8-13 licensed under this Act. 8-14 SECTION 15. MASTER KEYS. (a) A master key made by a 8-15 locksmith or master locksmith shall be designated by the locksmith 8-16 or master locksmith as a master key by stamping or marking the key 8-17 in a manner that identifies the key as a master key. A locksmith 8-18 or master locksmith shall mark the key in a manner that identifies 8-19 the locksmith or master locksmith who made the key. 8-20 (b) A locksmith or master locksmith shall keep a record of 8-21 each person who orders a master key, each key made by code, and 8-22 each locked item opened for another. The record maintained under 8-23 this subsection must include the person's name, address, and 8-24 driver's license number or Department of Public Safety 8-25 identification number. 8-26 SECTION 16. COIN-OPERATED KEY DUPLICATION MACHINES. (a) 8-27 With the advice of the board, the commissioner shall adopt rules 9-1 regulating coin-operated key duplication machines, including rules 9-2 relating to registration requirements for those machines. 9-3 (b) A coin-operated key duplication machine shall be labeled 9-4 with a notice that informs the user that the machine may not be 9-5 used to duplicate master keys. 9-6 SECTION 17. OFFENSE; ADMINISTRATIVE PENALTY. (a) A person 9-7 commits an offense if the person violates this Act or a rule 9-8 adopted under this Act. An offense under this subsection is a 9-9 Class A misdemeanor. 9-10 (b) A person who violates this Act or a rule adopted under 9-11 this Act is subject to an administrative penalty assessed by the 9-12 commission as provided by Section 17, Article 9100, Revised 9-13 Statutes. 9-14 SECTION 18. APPLICATION OF SUNSET ACT. The Locksmithing 9-15 Advisory Board is subject to Chapter 325, Government Code (Texas 9-16 Sunset Act). Unless continued in existence as provided by that 9-17 chapter, the board is abolished and this Act expires September 1, 9-18 2007. 9-19 SECTION 19. TRANSITION. (a) In making the initial 9-20 appointments to the Locksmithing Advisory Board, the commissioner 9-21 shall designate two members for terms expiring on February 1, 1997, 9-22 two members for terms expiring on February 1, 1999, and two members 9-23 for terms expiring on February 1, 2001. 9-24 (b) Until January 1, 1997, a locksmith, master locksmith, 9-25 key duplicator, or safe and vault technician who is a resident of 9-26 the state and who practiced in the person's respective field 9-27 during the 24 months preceding the effective date of this Act may 10-1 be licensed without examination on submitting to the commissioner 10-2 proof of the person's experience on an application form prescribed 10-3 by the commissioner. 10-4 SECTION 20. EFFECTIVE DATE. (a) Except as provided by 10-5 Subsection (b) of this section, this Act takes effect September 1, 10-6 1995. 10-7 (b) Sections 14 and 17 of this Act take effect January 1, 10-8 1996. 10-9 SECTION 21. The importance of this legislation and the 10-10 crowded condition of the calendars in both houses create an 10-11 emergency and an imperative public necessity that the 10-12 constitutional rule requiring bills to be read on three several 10-13 days in each house be suspended, and this rule is hereby suspended.