By Goolsby                                            H.B. No. 1655
       74R5995 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of plastering contractors; providing
    1-3  penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  DEFINITIONS.  In this Act:
    1-6              (1)  "Board" means the Plastering Contractors Advisory
    1-7  Board.
    1-8              (2)  "Commission" means the Texas Commission of
    1-9  Licensing and Regulation.
   1-10              (3)  "Commissioner" means the commissioner of licensing
   1-11  and regulation.
   1-12              (4)  "Department" means the Texas Department of
   1-13  Licensing and Regulation.
   1-14              (5)  "Exterior insulation finish system" means a
   1-15  non-load-bearing, barrier wall, exterior cladding system that is
   1-16  applied over insulation board and glass fiber reinforcing mesh with
   1-17  both a base coat and a textured protective finish coat.
   1-18              (6)  "Metal lathing" means the art or skill of
   1-19  installing support framing, backing, and related trims to serve as
   1-20  a substrate to receive plaster.
   1-21              (7)  "Plastering" means the art or skill of applying
   1-22  various wet materials over surfaces to produce both interior and
   1-23  exterior walls, ceilings, and other surfaces in the construction
   1-24  and remodeling of residential and commercial structures.
    2-1              (8)  "Plastering contractor" means a person who engages
    2-2  in metal lathing, plastering, spray fireproofing, or the
    2-3  application of an exterior insulation finish system for which the
    2-4  person is required to hold a certificate of registration under this
    2-5  Act.
    2-6              (9)  "Spray fireproofing" means the art or skill of
    2-7  applying various materials to enhance the fire resistance of the
    2-8  structural elements of a building.
    2-9              (10)  "Person" means an individual, partnership, or
   2-10  corporation.
   2-11        SECTION 2.  PLASTERING CONTRACTORS ADVISORY BOARD.  (a)  The
   2-12  Plastering Contractors Advisory Board is established as an advisory
   2-13  board to the department.  The board is composed of six members
   2-14  appointed by the commissioner.  A member holds office for a term of
   2-15  two years, with three members' terms expiring on February 1 each
   2-16  year.  The commissioner shall designate a member to serve as the
   2-17  board's presiding officer.
   2-18        (b)  Three of the members appointed under Subsection (a) of
   2-19  this section must be plastering contractors eligible for a
   2-20  certificate of registration under this Act who each have at least
   2-21  10 years experience in the plaster industry.   The remaining three
   2-22  members of the board shall represent the general public but must be
   2-23  familiar with the plaster industry, including persons who work as
   2-24  architects, as general contractors, and in the field of insurance.
   2-25        (c)  The commissioner may remove a member of the board for
   2-26  inefficiency or neglect of duty in office.  If a vacancy occurs on
   2-27  the board, the commissioner shall appoint a member who represents
    3-1  the same interests as the former member to serve for the unexpired
    3-2  term.
    3-3        (d)  The board shall meet at least twice each year at the
    3-4  call of the presiding officer at a place designated by the
    3-5  presiding officer.  A decision of the board is not valid unless
    3-6  supported by a majority of the members present at the meeting at
    3-7  which the decision is made.
    3-8        (e)  The board shall advise the commissioner in adopting
    3-9  rules, setting fees, establishing registration renewal
   3-10  requirements, and enforcing and administering this Act.
   3-11        (f)  A member is not entitled to compensation.  Reimbursement
   3-12  of members for expenses incurred for service on the board is
   3-13  subject to Section 4, Article 6252-33, Revised Statutes.
   3-14        SECTION 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.
   3-15  (a)  The commissioner shall issue a certificate of registration to
   3-16  an applicant for registration as a plastering contractor  who
   3-17  possesses the qualifications for a certificate of registration
   3-18  required by this Act or a rule adopted under this Act.
   3-19        (b)  The commissioner shall:
   3-20              (1)  adopt rules relating to issuing a certificate of
   3-21  registration   under this Act; and
   3-22              (2)  prescribe all forms required under this Act.
   3-23        (c)  A certificate of registration issued under this Act is
   3-24  valid for one year from the date of issuance.
   3-25        SECTION 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a
   3-26  certificate of registration under this Act, a person must apply on
   3-27  a form prescribed by the commissioner and pay any application and
    4-1  registration fees required by the commission.  The applicant must
    4-2  show evidence of financial responsibility by posting a bond in an
    4-3  amount prescribed by the commissioner.
    4-4        (b)  An applicant under this Act shall provide proof that the
    4-5  person is covered by insurance by presenting a copy of the person's
    4-6  certificate of workers' compensation coverage or an equivalent
    4-7  certificate and proof of the person's general liability insurance
    4-8  coverage.  Proof of insurance coverage under this section must
    4-9  include:
   4-10              (1)  the policy number and name of the insurer;
   4-11              (2)  the amounts of coverage;
   4-12              (3)  the effective date and expiration date of the
   4-13  coverage;
   4-14              (4)  the signature of the insurance agent providing
   4-15  coverage;  and
   4-16              (5)  any cancellation clause applicable to the
   4-17  coverage.
   4-18        (c)  An application under this section must be notarized and
   4-19  contain the applicant's state identification number, if any, sales
   4-20  tax number, and Internal Revenue Service employer identification
   4-21  number.
   4-22        (d)  The business name used by an applicant under this
   4-23  section must be the same on all documents included with the
   4-24  application.
   4-25        (e)  The applicant shall provide the applicant's telephone
   4-26  number and mailing address.  The applicant shall also provide the
   4-27  address where the applicant is physically located if different from
    5-1  the mailing address.
    5-2        (f)  If the applicant is a partnership or corporation, the
    5-3  application must include:
    5-4              (1)  the name of each owner of the applicant firm;  and
    5-5              (2)  the name and signature of the individual who filed
    5-6  the application for the firm.
    5-7        SECTION 5.  FEES.  The commission by rule shall set
    5-8  application and registration fees under this Act.
    5-9        SECTION 6.  REGISTRATION RENEWAL; CONTINUING EDUCATION.  (a)
   5-10  A person holding a certificate of registration may renew the
   5-11  certificate by:
   5-12              (1)  completing the renewal application form prescribed
   5-13  by the commissioner;
   5-14              (2)  paying the renewal fee set by the commission;
   5-15              (3)  providing a new bond or a continuation certificate
   5-16  for the existing bond that satisfies the requirements of Section
   5-17  4(a) of this Act regarding evidence of financial responsibility;
   5-18              (4)  providing proof that the person satisfies the
   5-19  workers' compensation insurance and liability insurance coverage
   5-20  requirements under Section 4(b) of this Act; and
   5-21              (5)  providing proof that the person has satisfied the
   5-22  continuing education and other renewal requirements adopted by the
   5-23  commissioner.
   5-24        (b)  To renew a certificate of registration under this
   5-25  section, the person must present evidence that the person has
   5-26  successfully completed not less than 10 hours of classroom study in
   5-27  subjects required by the commissioner during the 12 months
    6-1  preceding the date of the renewal.
    6-2        (c)  A holder of a certificate of registration under this Act
    6-3  who fails to renew the certificate before the date the registration
    6-4  expires must pay a late fee set by the commission in addition to
    6-5  the other renewal requirements of this section.
    6-6        SECTION 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.
    6-7  (a)  The commissioner shall enforce this Act.
    6-8        (b)  The department shall investigate allegations of
    6-9  violations of this Act.  The department may enter any place of
   6-10  business or other establishment at which alleged illegal activity
   6-11  occurs during reasonable business hours and without advance notice.
   6-12        SECTION 8.  SUSPENSION, REVOCATION, AND RENEWAL OF
   6-13  REGISTRATION; REISSUANCE.  (a)  After a hearing, the commissioner
   6-14  shall suspend or revoke a certificate of registration on a finding
   6-15  that a person:
   6-16              (1)  made a material misstatement in an application for
   6-17  a certificate of registration;
   6-18              (2)  wilfully disregarded or violated this Act or a
   6-19  rule adopted under this Act;
   6-20              (3)  wilfully aided or abetted another in the violation
   6-21  of this Act or a rule adopted under this Act;
   6-22              (4)  was convicted for a crime an essential element of
   6-23  which is misstatement, fraud, or dishonesty, or a felony; or
   6-24              (5)  engaged in dishonorable or unethical conduct
   6-25  likely to deceive, defraud, or harm the public.
   6-26        (b)  The commissioner may reissue a certificate of
   6-27  registration to a person whose certificate of registration has been
    7-1  revoked if the person applies in writing to the department and
    7-2  shows good cause to justify reissuing the certificate of
    7-3  registration.
    7-4        SECTION 9.  PROHIBITED ACTS.  (a)  A person may not engage in
    7-5  metal lathing, plastering, spray fireproofing, or the application
    7-6  of an exterior insulation finish system for compensation unless the
    7-7  person holds a plastering contractor certificate of registration
    7-8  under this Act.
    7-9        (b)  A person may not bid on or accept a prime contract to
   7-10  engage in metal lathing, plastering, spray fireproofing, or the
   7-11  application of an exterior insulation fire system unless the person
   7-12  is registered as a plastering contractor under this Act.
   7-13        SECTION 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person
   7-14  commits an offense if the person knowingly or intentionally acts as
   7-15  a plastering contractor without a certificate of registration under
   7-16  this Act.  An offense under this subsection is a Class A
   7-17  misdemeanor.
   7-18        (b)  A person who violates this Act or a rule adopted under
   7-19  this Act is subject to an administrative penalty assessed by the
   7-20  commission as provided by Section 17, Article 9100, Revised
   7-21  Statutes.
   7-22        SECTION 11.  TRANSITION.  In making the initial appointments
   7-23  to the Plastering Contractors Advisory Board, the commissioner
   7-24  shall designate three members for terms expiring on February 1,
   7-25  1997, and three members for terms expiring on February 1, 1998.
   7-26        SECTION 12.  EFFECTIVE DATE.  (a)  Except as provided by
   7-27  Subsection (b) of this section, this Act takes effect September 1,
    8-1  1995.
    8-2        (b)  Sections 9 and 10 of this Act take effect March 1, 1996.
    8-3        SECTION 13.  EMERGENCY.  The importance of this legislation
    8-4  and the crowded condition of the calendars in both houses create an
    8-5  emergency and an imperative public necessity that the
    8-6  constitutional rule requiring bills to be read on three several
    8-7  days in each house be suspended, and this rule is hereby suspended.
    8-8                       COMMITTEE AMENDMENT NO. 1
    8-9        Amend HB 1655 to read as follows:
   8-10        Amend SECTION 1, Subsection (7) to add the following sentence
   8-11  at the end of the Subsection:  "This definition does not apply to
   8-12  taping, floating, or repairing sheetrock."
   8-13        Amend SECTION 9, Subsection (a) by inserting the following
   8-14  between "(a)" and "person":  "Except as provided by Subsection (c),
   8-15  <A> a"
   8-16        Amend SECTION 9, by adding new Subsection (c) and (d) to read
   8-17  as follows:
   8-18        (c)  The requirement under Subsection (a) does not apply to a
   8-19  person who performs plastering contracting if:  (1)  the person is
   8-20  a maintenance man or maintenance engineer who is a bona fide
   8-21  employee of the property owner, the property lessee, or the
   8-22  management company managing the property where the maintenance work
   8-23  is being performed, (2) the work is performed in connection with
   8-24  the business in which the person is employed, or (3) the person and
   8-25  the person's employer referred to in (1) do not engage in the
   8-26  occupation of plastering contracting for the general public.
   8-27        (d)  The work described by Subsection (c) of this section
    9-1  remains subject to any permit, inspection, or approval requirements
    9-2  prescribed by a municipal ordinance.
    9-3                                                     Jones of Lubbock