By Conley                                             H.B. No. 1764
       74R2168 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the licensing of certain residential contractors;
    1-3  providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5                    ARTICLE 1.  GENERAL PROVISIONS
    1-6        SECTION 1.001.  PURPOSE.  It is the intent of the legislature
    1-7  to improve the general welfare and safety of the citizens of this
    1-8  state by regulating persons engaged in the vocation of residential
    1-9  contracting and protecting the public against incompetent and
   1-10  inexperienced contractors and the unlawful and fraudulent acts of
   1-11  residential contractors.
   1-12        SECTION 1.002.  DEFINITIONS.  In this Act:
   1-13              (1)  "Board" means the State Regulatory Board for
   1-14  Residential Building Contractors.
   1-15              (2)  "Person" includes an individual, firm,
   1-16  partnership, corporation, association, or other organization,
   1-17  combination, or legal entity.
   1-18              (3)  "Residential contractor" means a person who, for
   1-19  compensation, advertises or offers to undertake, offers a bid to
   1-20  undertake, or otherwise engages in, the construction, remodeling,
   1-21  repair, or improvement of a single-family dwelling or a duplex,
   1-22  triplex, or fourplex residential building.  The term includes a
   1-23  construction manager who performs management and services on a
   1-24  construction project for a fee.
    2-1        SECTION 1.003.  EXEMPTION.  This Act does not apply to a
    2-2  person who builds or improves a structure on the person's own
    2-3  property for the person's own occupancy or use and who does not
    2-4  offer the structure for sale or rent before the first anniversary
    2-5  of the date of the completion of the building or improvement of the
    2-6  structure.
    2-7                  ARTICLE 2.  STATE REGULATORY BOARD
    2-8                 FOR RESIDENTIAL BUILDING CONTRACTORS
    2-9        SECTION 2.001.  BOARD.  (a) The State Regulatory Board for
   2-10  Residential Building Contractors is established.  The board is
   2-11  composed of nine members appointed by the governor.  Board members
   2-12  serve staggered six-year terms with the terms of three members
   2-13  expiring on February 1 of each odd-numbered year.
   2-14        (b)  The members of the board are appointed as follows:
   2-15              (1)  four members must be residential contractors
   2-16  licensed under this Act;
   2-17              (2)  one member must be a registered engineer who
   2-18  practices structural engineering;
   2-19              (3)  one member must be a licensed architect;  and
   2-20              (4)  three members must be representatives of the
   2-21  general public.
   2-22        (c)  A person is not eligible for appointment as a public
   2-23  member of the board if the person or the person's spouse:
   2-24              (1)  is registered, certified, or licensed by an
   2-25  occupational regulatory agency in the field of construction;
   2-26              (2)  is employed by or participates in the management
   2-27  of a business entity or other organization regulated by the board
    3-1  or receiving funds from the board;
    3-2              (3)  owns or controls, directly or indirectly, more
    3-3  than a 10 percent interest in a business entity or other
    3-4  organization regulated by the board or receiving funds from the
    3-5  board; or
    3-6              (4)  uses or receives a substantial amount of tangible
    3-7  goods, services, or funds from the board, other than compensation
    3-8  or reimbursement authorized by law for board membership,
    3-9  attendance, or expenses.
   3-10        (d)  An officer, employee, or paid consultant of a Texas
   3-11  trade association in the field of construction may not be a member
   3-12  of the board and may not be an employee of the board who is exempt
   3-13  from the state's position classification plan or is compensated at
   3-14  or above the amount prescribed by the General Appropriations Act
   3-15  for step 1, salary group 17, of the position classification salary
   3-16  schedule.
   3-17        (e)  A person who is the spouse of an officer, manager, or
   3-18  paid consultant of a Texas trade association in the field of
   3-19  construction may not be a member of the board and may not be an
   3-20  employee of the board who is exempt from the state's position
   3-21  classification plan or is compensated at or above the amount
   3-22  prescribed by the General Appropriations Act for step 1, salary
   3-23  group 17, of the position classification salary schedule.
   3-24        (f)  For the purposes of this section, a Texas trade
   3-25  association is a nonprofit, cooperative, and voluntarily joined
   3-26  association of business or professional competitors in this state
   3-27  designed to assist its members and its industry or profession in
    4-1  dealing with mutual business or professional problems and in
    4-2  promoting their common interest.
    4-3        (g)  A vacancy on the board shall be filled by appointment by
    4-4  the governor of a person with the appropriate qualifications to
    4-5  serve for the remainder of the term.
    4-6        (h)  Appointments to the board shall be made without regard
    4-7  to the race, color, disability, sex, religion, age, or national
    4-8  origin of the appointees.
    4-9        (i)  A member of the board may not serve more than one term.
   4-10        (j)  The State Regulatory Board for Residential Building
   4-11  Contractors is subject to Chapter 325, Government Code (Texas
   4-12  Sunset Act).  Unless continued in existence as provided by that
   4-13  chapter, the board is abolished and this Act expires September 1,
   4-14  2007.
   4-15        SECTION 2.002.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
   4-16  removal from the board if a member:
   4-17              (1)  does not have at the time of appointment the
   4-18  qualifications required by Section 2.001 of this Act;
   4-19              (2)  does not maintain during service on the board the
   4-20  qualifications required by Section 2.001 of this Act;
   4-21              (3)  violates a prohibition established by Section
   4-22  2.001 or 2.005 of this Act;
   4-23              (4)  cannot because of illness or disability discharge
   4-24  the member's duties for a substantial part of the term for which
   4-25  the member is appointed; or
   4-26              (5)  is absent from more than half of the regularly
   4-27  scheduled board meetings that the member is eligible to attend
    5-1  during a calendar year unless the absence is excused by majority
    5-2  vote of the board.
    5-3        (b)  The validity of an action of the board is not affected
    5-4  by the fact that it is taken when a ground for removal of a board
    5-5  member exists.
    5-6        (c)  If the executive director has knowledge that a potential
    5-7  ground for removal exists, the executive director shall notify the
    5-8  presiding officer of the potential ground.  The presiding officer
    5-9  shall then notify the governor and the attorney general that a
   5-10  potential ground for removal exists.  If the potential ground for
   5-11  removal involves the presiding officer, the executive director
   5-12  shall notify the next highest officer of the board, who shall
   5-13  notify the governor and the attorney general that a potential
   5-14  ground for removal exists.
   5-15        SECTION 2.003.  OFFICERS;  MEETINGS.  (a) The board shall
   5-16  elect annually from the membership of the board a presiding
   5-17  officer, assistant presiding officer, and secretary-treasurer.
   5-18        (b)  The board shall meet at least annually and at other
   5-19  times at the call of the presiding officer.
   5-20        SECTION 2.004.  BOARD POWERS AND DUTIES.  (a)  The board
   5-21  shall adopt rules consistent with this Act for the administration
   5-22  of this Act and for the operation of the board.
   5-23        (b)  The board shall adopt application, examination,
   5-24  licensing, and renewal fees in amounts that are reasonable and
   5-25  necessary to provide sufficient revenue to cover the costs of
   5-26  administering this Act.  The fees set by the board may be adjusted
   5-27  so that the total fees collected are sufficient to meet the
    6-1  expenses of administering this Act.
    6-2        (c)  The board may appoint an executive director and other
    6-3  personnel as necessary for the administration of this Act.
    6-4        SECTION 2.005.  CONFLICT OF INTEREST.  A person may not serve
    6-5  as a member of the board or act as the general counsel to the board
    6-6  if the person is required to register as a lobbyist under Chapter
    6-7  305, Government Code, because of the person's activities for
    6-8  compensation on behalf of a profession related to the operation of
    6-9  the board.
   6-10        SECTION 2.006.  ANNUAL FISCAL REPORT.  The board shall
   6-11  prepare annually a complete and detailed written report accounting
   6-12  for all funds received and disbursed by the board during the
   6-13  preceding fiscal year.  The annual report must meet the reporting
   6-14  requirements applicable to financial reporting provided in the
   6-15  General Appropriations Act.
   6-16        SECTION 2.007.  PERSONNEL POLICIES.  (a) The executive
   6-17  director or the executive director's designee shall develop an
   6-18  intra-agency career ladder program that addresses opportunities for
   6-19  mobility and advancement for employees within the board.  The
   6-20  program shall require intra-agency posting of all positions
   6-21  concurrently with any public posting.
   6-22        (b)  The executive director or the executive director's
   6-23  designee shall develop a system of annual performance evaluations
   6-24  that are based on documented employee performance.  All merit pay
   6-25  for board employees must be based on the system established under
   6-26  this subsection.
   6-27        (c)  The board shall develop and implement policies that
    7-1  clearly separate the policymaking responsibilities of the board and
    7-2  the management responsibilities of the executive director and the
    7-3  staff of the board.
    7-4        SECTION 2.008.  PUBLIC INTEREST INFORMATION.  (a)  The board
    7-5  shall prepare information of public interest describing the
    7-6  functions of the board and the procedures by which complaints are
    7-7  filed with and resolved by the board.  The board shall make the
    7-8  information available to the public and appropriate state agencies.
    7-9        (b)  The board by rule shall establish methods by which
   7-10  consumers and service recipients are notified of the name, mailing
   7-11  address, and telephone number of the board for the purpose of
   7-12  directing complaints to the board.  The board may provide for that
   7-13  notification:
   7-14              (1)  on each registration form, application, or written
   7-15  contract for services of a person regulated under this Act;
   7-16              (2)  on a sign prominently displayed in the place of
   7-17  business of each person regulated under this Act;  and
   7-18              (3)  in a bill for service provided by a person
   7-19  regulated under this Act.
   7-20        (c)  The board shall develop materials and programs to
   7-21  educate the public concerning the licensing requirements imposed
   7-22  under this Act, the need of the public to conduct business only
   7-23  with a licensed residential building contractor, and the methods
   7-24  for reporting unlicensed contracting activity.
   7-25        SECTION 2.009.  AGENCY FUNDS.  All money paid to the board
   7-26  under this Act is subject to Subchapter F, Chapter 404, Government
   7-27  Code.
    8-1        SECTION 2.010.  COMPLAINTS.  (a) The board shall keep
    8-2  information about each complaint filed with the board.  The
    8-3  information shall include:
    8-4              (1)  the date the complaint is received;
    8-5              (2)  the name of the complainant;
    8-6              (3)  the subject matter of the complaint;
    8-7              (4)  a record of all persons contacted in relation to
    8-8  the complaint;
    8-9              (5)  a summary of the results of the review or
   8-10  investigation of the complaint; and
   8-11              (6)  for complaints for which the board did not take
   8-12  action, an explanation of the reason the complaint was closed
   8-13  without action.
   8-14        (b)  The board shall keep a file about each written complaint
   8-15  filed with the board that the board has authority to resolve.  The
   8-16  board shall provide to the person filing the complaint and the
   8-17  persons or entities complained about the board's policies and
   8-18  procedures pertaining to complaint investigation and resolution.
   8-19  The board, at least quarterly and until final disposition of the
   8-20  complaint, shall notify the person filing the complaint and the
   8-21  persons or entities complained about of the status of the complaint
   8-22  unless the notice would jeopardize an undercover investigation.
   8-23        SECTION 2.011.  EQUAL EMPLOYMENT OPPORTUNITY.  (a) The
   8-24  executive director or the executive director's designee shall
   8-25  prepare and maintain a written policy statement to assure
   8-26  implementation of a program of equal employment opportunity under
   8-27  which all personnel transactions are made without regard to race,
    9-1  color, disability, sex, religion, age, or national origin.  The
    9-2  policy statement must include:
    9-3              (1)  personnel policies, including policies relating to
    9-4  recruitment, evaluation, selection, appointment, training, and
    9-5  promotion of personnel that are in compliance with the requirements
    9-6  of Chapter 21, Labor Code;
    9-7              (2)  a comprehensive analysis of the board workforce
    9-8  that meets federal and state guidelines;
    9-9              (3)  procedures by which a determination can be made
   9-10  about the extent of underuse in the board workforce of all persons
   9-11  for whom federal or state guidelines encourage a more equitable
   9-12  balance; and
   9-13              (4)  reasonable methods to appropriately address those
   9-14  areas of underuse.
   9-15        (b)  A policy statement prepared under Subsection (a) of this
   9-16  section must cover an annual period, be updated annually and
   9-17  reviewed by the Commission on Human Rights for compliance with
   9-18  Subsection (a)(1) of this section, and be filed with the governor's
   9-19  office.
   9-20        (c)  The governor's office shall deliver a biennial report to
   9-21  the legislature based on the information received under Subsection
   9-22  (b) of this section.  The report may be made separately or as a
   9-23  part of other biennial reports made to the legislature.
   9-24        SECTION 2.012.  STANDARDS OF CONDUCT.  The executive director
   9-25  or the executive director's designee shall provide to members of
   9-26  the board and to board employees, as often as necessary,
   9-27  information regarding their qualification for office or employment
   10-1  under this Act and their responsibilities under applicable laws
   10-2  relating to standards of conduct for state officers or employees.
   10-3        SECTION 2.013.  PUBLIC ACCESS.  (a)  The board shall develop
   10-4  and implement policies that provide the public with a reasonable
   10-5  opportunity to appear before the board and to speak on any issue
   10-6  under the jurisdiction of the board.
   10-7        (b)  The board shall comply with federal and state laws
   10-8  related to program and facility accessibility.  The executive
   10-9  director shall also prepare and maintain a written plan that
  10-10  describes how a person who does not speak English can be provided
  10-11  reasonable access to the board's programs and services.
  10-12        SECTION 2.014.  OPEN MEETINGS;  ADMINISTRATIVE PROCEDURE.
  10-13  The board is subject to the open meetings law, Chapter 551,
  10-14  Government Code, and the administrative procedures law, Chapter
  10-15  2001, Government Code.
  10-16        SECTION 2.015.  BOARD MEMBER TRAINING.  (a)  Before a member
  10-17  of the board may assume the member's duties and before the member
  10-18  may be confirmed by the senate, the member must complete at least
  10-19  one course of the training program established under this section.
  10-20        (b)  A training program established under this section shall
  10-21  provide information to the member regarding:
  10-22              (1)  the enabling legislation that created the board to
  10-23  which the member is appointed to serve;
  10-24              (2)  the programs operated by the board;
  10-25              (3)  the role and functions of the board;
  10-26              (4)  the rules of the board, with an emphasis on the
  10-27  rules that relate to disciplinary and investigatory authority;
   11-1              (5)  the current budget for the board;
   11-2              (6)  the results of the most recent formal audit of the
   11-3  board;
   11-4              (7)  the requirements of the:
   11-5                    (A)  open meetings law, Chapter 551, Government
   11-6  Code;
   11-7                    (B)  open records law, Chapter 552, Government
   11-8  Code; and
   11-9                    (C)  administrative procedures law, Chapter 2001,
  11-10  Government Code;
  11-11              (8)  the requirements of the conflict of interest laws
  11-12  and other laws relating to public officials; and
  11-13              (9)  any applicable ethics policies adopted by the
  11-14  board or the Texas Ethics Commission.
  11-15                   ARTICLE 3.  LICENSE REQUIREMENTS
  11-16        SECTION 3.001.  LICENSE REQUIRED.  (a)  A person may not act
  11-17  as a residential contractor in this state unless the person holds a
  11-18  license issued under this Act.  A partnership, corporation, or
  11-19  other entity conducting business as a residential contractor must,
  11-20  if the owner is not a license holder, employ an individual who
  11-21  holds a license under this Act.
  11-22        (b)  An application for a permit in a jurisdiction where a
  11-23  permit is required for the construction of a residence must include
  11-24  the license number of the residential contractor.
  11-25        (c)  A political subdivision of the state may not require a
  11-26  license for a residential contractor who is subject to the
  11-27  requirements of this Act.  This subsection does not apply to a
   12-1  general business registration required by a political subdivision
   12-2  for a person to conduct business in that political subdivision.
   12-3        SECTION 3.002.  LICENSE QUALIFICATIONS.  (a) A person may
   12-4  apply for a license under this Act by filing an application on a
   12-5  form prescribed by the board.  The application must be accompanied
   12-6  by the application fee and examination fee.
   12-7        (b)  In determining the qualifications of an applicant, the
   12-8  board shall consider the applicant's experience, ability,
   12-9  character, financial condition, ability and willingness to protect
  12-10  the public health and safety, and other pertinent information
  12-11  required by the board.  The board shall adopt an examination to
  12-12  evaluate the qualifications considered under this subsection.
  12-13        (c)  The board shall issue a license to an applicant who
  12-14  passes the examination under Subsection (b) of this section, pays
  12-15  the license fee, and submits proof of financial ability as provided
  12-16  by board rule.
  12-17        (d)  An applicant for a license whose application is rejected
  12-18  by the board may reapply under this section on payment of the fees
  12-19  required for an initial application.  An applicant who fails the
  12-20  examination under Subsection (b) of this section on three occasions
  12-21  may not reapply before the first anniversary of the date of the
  12-22  third failure.
  12-23        (e)  A license issued under this section expires on the
  12-24  second anniversary of its date of issuance.
  12-25        (f)  The board shall maintain a record of each applicant for
  12-26  a license under this section and the results of the applicant's
  12-27  examination.  A certified copy of the record under this subsection
   13-1  may be furnished to an applicant on request on payment of a fee
   13-2  adopted by the board that reasonably reflects the costs of
   13-3  furnishing the record.
   13-4        SECTION 3.003.  LICENSE RENEWAL.  (a) A person who is
   13-5  otherwise eligible to renew a license may renew an unexpired
   13-6  license by paying the required renewal fee to the board before the
   13-7  expiration date of the license and submission of a renewal
   13-8  application that includes a current audited financial statement
   13-9  prepared on a form prescribed by the board, a bank reference, a
  13-10  current credit report, and proof that the continuing education
  13-11  requirements of the board have been satisfied.  A person whose
  13-12  license has expired may not engage in activities that require a
  13-13  license until the license has been renewed under the provisions of
  13-14  this section.
  13-15        (b)  If the person's license has been expired for 90 days or
  13-16  less, the person may renew the license by paying to the board 1-1/2
  13-17  times the required renewal fee.
  13-18        (c)  If the person's license has been expired for longer than
  13-19  90 days but less than one year, the person may renew the license by
  13-20  paying to the board two times the required renewal fee.
  13-21        (d)  If the person's license has been expired for one year or
  13-22  longer, the person may not renew the license except as provided by
  13-23  Subsection (e) of this section.  The person may obtain a new
  13-24  license by submitting to reexamination and complying with the
  13-25  requirements and procedures for obtaining an original license.
  13-26        (e)  If the person was licensed in this state, moved to
  13-27  another state, and is currently licensed and has been engaged in
   14-1  residential contracting in the other state for the two years
   14-2  preceding application, the person may  renew an expired license
   14-3  without reexamination.  The person must pay to the board a fee that
   14-4  is equal to two times the required renewal fee for the license.
   14-5        (f)  Not later than the 31st day preceding the expiration of
   14-6  a person's license, the board shall send written notice of the
   14-7  impending license expiration to the person at the person's last
   14-8  known address according to the records of the board.
   14-9        (g)  The board by rule may adopt a system under which
  14-10  licenses expire on various dates during the year.  For the period
  14-11  in which the license expiration date is changed, license fees shall
  14-12  be prorated on a monthly basis so that each license holder pays
  14-13  only that portion of the license fee that is allocable to the
  14-14  number of months during which the license is valid.  On renewal of
  14-15  the license on the new expiration date, the total license renewal
  14-16  fee is payable.
  14-17        SECTION 3.004.  EXAMINATION RESULTS.  (a)  Not later than the
  14-18  30th day after the date on which a licensing examination is
  14-19  administered under this Act, the board shall notify each examinee
  14-20  of the results of the examination.  However, if an examination is
  14-21  graded or reviewed by a national testing service, the board shall
  14-22  notify examinees of the results of the examination not later than
  14-23  the 14th day after the date on which the board receives the results
  14-24  from the testing service.  If the notice of examination results
  14-25  graded or reviewed by a national testing service will not be
  14-26  received by the examiner before the 90th day after the examination
  14-27  date, the board shall notify the examinee of the reason for the
   15-1  delay before that date.  The board may require a testing service to
   15-2  notify examinees of the results of an examination.
   15-3        (b)  If requested in writing by a person who fails a
   15-4  licensing examination administered under this Act, the board shall
   15-5  furnish the person with an analysis of the person's performance on
   15-6  the examination.
   15-7        SECTION 3.005.  DISCIPLINARY PROCEEDINGS.  (a) The board
   15-8  shall revoke, suspend, or refuse to renew a license, place on
   15-9  probation a person whose license has been suspended, or reprimand a
  15-10  license holder for a violation of this Act or a rule adopted under
  15-11  this Act. If a license suspension is probated, the board may
  15-12  require the license holder to:
  15-13              (1)  report regularly to the board on matters that are
  15-14  the basis of the probation;
  15-15              (2)  limit practice to the areas prescribed by the
  15-16  board; or
  15-17              (3)  continue or review professional education until
  15-18  the license holder attains a degree of skill satisfactory to the
  15-19  board in those areas that are the basis of the probation.
  15-20        (b)  If the board proposes to suspend, revoke, or refuse to
  15-21  renew a person's license, the person is entitled to a hearing
  15-22  conducted by the State Office of Administrative Hearings.
  15-23  Proceedings for a disciplinary action are governed by the
  15-24  administrative procedures law, Chapter 2001, Government Code.
  15-25  Rules of practice adopted by the board under Section 2001.004,
  15-26  Government Code, applicable to the proceedings for a disciplinary
  15-27  action, may not conflict with rules adopted by the State Office of
   16-1  Administrative Hearings.
   16-2        (c)  In addition to a disciplinary proceeding initiated for a
   16-3  violation of this Act or a rule adopted under this Act, the board
   16-4  may revoke, suspend, or refuse to renew a license, place on
   16-5  probation a person whose license has been suspended, or reprimand a
   16-6  license holder who:
   16-7              (1)  abandons the construction of a residence under a
   16-8  contract without a legal excuse;
   16-9              (2)  wilfully or deliberately disregards or violates an
  16-10  applicable building code of this state or a political subdivision
  16-11  of this state;
  16-12              (3)  commits fraud or engages in deceit, gross
  16-13  negligence, incompetency, or misconduct in the practice of
  16-14  contracting;  or
  16-15              (4)  diverts funds received for the completion of a
  16-16  specific building project.
  16-17        (d)  In the case of a conflict between the board and a
  16-18  license holder concerning the violation of this Act or a rule
  16-19  adopted under this Act, the license holder may continue to work on
  16-20  a project under construction if the license holder posts a bond in
  16-21  an amount equal to 125 percent of the total amount, as determined
  16-22  by the board, needed to satisfy the alleged violation.
  16-23        SECTION 3.006.  RESTRICTIONS ON RULES AFFECTING ADVERTISING;
  16-24  ADVERTISING REQUIREMENTS.  (a)  The board may not adopt rules
  16-25  restricting competitive bidding or advertising by a license holder
  16-26  except to prohibit false, misleading, or deceptive practices.
  16-27        (b)  In its rules to prohibit false, misleading, or deceptive
   17-1  practices, the board may not include a rule that:
   17-2              (1)  restricts the use of any medium for advertising;
   17-3              (2)  restricts the use of a license holder's personal
   17-4  appearance or voice in an advertisement;
   17-5              (3)  relates to the size or duration of an
   17-6  advertisement by the license holder; or
   17-7              (4)  restricts the license holder's advertisement under
   17-8  a trade name.
   17-9        (c)  The license number of a residential contractor must
  17-10  appear in any advertising by that contractor.  Advertising in any
  17-11  manner by an unlicensed residential contractor is prohibited,
  17-12  including alphabetical or classified directory listings.
  17-13        SECTION 3.007.  CONTINUING EDUCATION.  (a)  The board shall
  17-14  recognize, prepare, or administer a continuing education program
  17-15  for its license holders.  Participation in the continuing education
  17-16  program by license holders is mandatory.
  17-17        (b)  The board shall require a license holder to provide
  17-18  proof that the license holder has completed 15 hours of continuing
  17-19  education during the two-year period preceding the date of the
  17-20  application for renewal before the board may renew the license.
  17-21        SECTION 3.008.  LIMITATION ON RIGHT TO SUE.  A residential
  17-22  contractor who does not hold a license under this Act may not bring
  17-23  an action to enforce the provisions of a contract for residential
  17-24  building or residential specialty contracting that the contractor
  17-25  entered into without holding a license required by this Act.
  17-26                   ARTICLE 4.  INJUNCTION; PENALTIES
  17-27        SECTION 4.001.  INJUNCTION; CIVIL PENALTY.  At the request of
   18-1  the board, the attorney general shall bring an action in the name
   18-2  of the state for an injunction or to collect a civil penalty for a
   18-3  violation of this Act.
   18-4        SECTION 4.002.  CRIMINAL PENALTY.  (a)  A person commits an
   18-5  offense if the person undertakes or attempts to undertake the
   18-6  construction, remodeling, repair, or improvement of a building in
   18-7  violation of this Act or knowingly presents to the board false
   18-8  information to obtain a license under this Act.
   18-9        (b)  An offense under this section is a Class A misdemeanor.
  18-10           ARTICLE 5.  TRANSITION; EFFECTIVE DATE; EMERGENCY
  18-11        SECTION 5.001.  TRANSITION.  (a)  In making the initial
  18-12  appointments to the State Regulatory Board for Residential
  18-13  Contractors, the governor shall appoint:
  18-14              (1)  two persons eligible to be licensed under this Act
  18-15  as residential contractors and one public member to serve terms
  18-16  expiring February 1, 1997;
  18-17              (2)  one person eligible to be licensed under this Act
  18-18  as a residential contractor, one registered engineer member, and
  18-19  one public member to serve terms expiring February 1, 1999; and
  18-20              (3)  one person eligible to be licensed under this Act
  18-21  as a residential contractor, one licensed architect member, and one
  18-22  public member to serve terms expiring February 1, 2001.
  18-23        (b)  The board shall issue a temporary license to a
  18-24  residential contractor that the board determines to be a reputable
  18-25  contractor on submission of proof that the contractor has completed
  18-26  five residential construction projects in the two-year period
  18-27  preceding the date of application for a temporary license and
   19-1  submission of three notarized client references and one reference
   19-2  from a financial institution that includes a current credit report
   19-3  for the applicant.  A temporary license is valid for one year from
   19-4  the date of issuance.  The holder of a temporary license may apply
   19-5  for a license under this Act in the same manner that a person
   19-6  applies for a renewal license.  This subsection expires September
   19-7  1, 1997.
   19-8        (c)  The board shall adopt rules under this Act not later
   19-9  than December 31, 1995.
  19-10        SECTION 5.002.  EFFECTIVE DATE.  (a)  Except as provided by
  19-11  Subsection (b) of this section, this Act takes effect September 1,
  19-12  1995.
  19-13        (b)  Sections 3.001(a) and 4.002 of this Act take effect
  19-14  March 1, 1996.
  19-15        SECTION 5.003.  EMERGENCY.  The importance of this
  19-16  legislation and the crowded condition of the calendars in both
  19-17  houses create an emergency and an imperative public necessity that
  19-18  the constitutional rule requiring bills to be read on three several
  19-19  days in each house be suspended, and this rule is hereby suspended.