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.