75R9826 JMM-F By Goolsby H.B. No. 37 Substitute the following for H.B. No. 37: By Goolsby C.S.H.B. No. 37 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. The term 2-1 does not include taping, floating, installing, texturing, repairing 2-2 sheet rock or applying acoustical material. 2-3 (8) "Plastering contractor" means a person who engages 2-4 in metal lathing, plastering, spray fireproofing, or the 2-5 application of an exterior insulation finish system for which the 2-6 person is required to hold a certificate of registration under this 2-7 Act. 2-8 (9) "Spray fireproofing" means the art or skill of 2-9 applying various materials to enhance the fire resistance of the 2-10 structural elements of a building. 2-11 (10) "Person" means an individual, partnership, or 2-12 corporation. 2-13 SECTION 2. PLASTERING CONTRACTORS ADVISORY BOARD. (a) The 2-14 Plastering Contractors Advisory Board is established as an advisory 2-15 board to the department. The board is composed of six members 2-16 appointed by the commissioner. A member holds office for a term of 2-17 two years, with three members' terms expiring February 1 each year. 2-18 The commissioner shall designate a member to serve as the board's 2-19 presiding officer. 2-20 (b) Three of the members appointed under Subsection (a) of 2-21 this section must be plastering contractors eligible for a 2-22 certificate of registration under this Act who each have at least 2-23 10 years experience in the plaster industry. The remaining three 2-24 members of the board shall represent the general public but must be 2-25 familiar with the plaster industry, including persons who work as 2-26 architects, as general contractors, and in the field of insurance. 2-27 (c) The commissioner may remove a member of the board for 3-1 inefficiency or neglect of duty in office. If a vacancy occurs on 3-2 the board, the commissioner shall appoint a member who represents 3-3 the same interests as the former member to serve for the unexpired 3-4 term. 3-5 (d) The board shall meet at least twice each year at the 3-6 call of the presiding officer at the place designated by the 3-7 presiding officer. A decision of the board is not valid unless 3-8 supported by a majority of the members present at the meeting at 3-9 which the decision is made. 3-10 (e) The board shall advise the commissioner in adopting 3-11 rules, setting fees, establishing registration renewal 3-12 requirements, and enforcing and administering this Act. 3-13 (f) A member is not entitled to compensation. Reimbursement 3-14 of members for expenses incurred for service on the board is 3-15 subject to Section 4, Article 6252-33, Revised Statutes. 3-16 SECTION 3. ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES. 3-17 (a) The commissioner shall issue a certificate of registration to 3-18 an applicant for registration as a plastering contractor who 3-19 possesses the qualifications for a certificate of registration 3-20 required by this Act or a rule adopted under this Act. 3-21 (b) The commissioner shall: 3-22 (1) adopt rules relating to issuing a certificate of 3-23 registration under this Act; and 3-24 (2) prescribe all forms required under this Act. 3-25 (c) A certificate of registration issued under this Act is 3-26 valid for one year from the date of issuance. 3-27 SECTION 4. REGISTRATION REQUIREMENTS. (a) To qualify for a 4-1 certificate of registration under this Act, a person must apply on 4-2 a form prescribed by the commissioner and pay any application and 4-3 registration fees required by the commission. The applicant must 4-4 show evidence of financial responsibility by posting a bond in an 4-5 amount prescribed by the commissioner. 4-6 (b) An applicant under this Act shall provide proof that the 4-7 person is covered by insurance by presenting a copy of the person's 4-8 certificate of workers' compensation coverage or an alternative 4-9 certificate and proof of the person's general liability insurance 4-10 coverage. Proof of insurance coverage under this section must 4-11 include: 4-12 (1) the policy number and name of the insurer; 4-13 (2) the amounts of coverage; 4-14 (3) the effective date and expiration date of the 4-15 coverage; and 4-16 (4) the signature of the insurance agent providing 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 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) Except as provided by 7-5 Subsection (c) of this section, a person may not engage in metal 7-6 lathing, plastering, spray fireproofing, or the application of an 7-7 exterior insulation finish system for compensation unless the 7-8 person holds a plastering contractor certificate of registration 7-9 under this Act. 7-10 (b) A person may not bid on or accept a prime contract to 7-11 engage in metal lathing, plastering, spray fireproofing, or the 7-12 application of an exterior insulation finish system unless the 7-13 person is registered as a plastering contractor under this Act. 7-14 (c) Subsection (a) of this section does not apply to a 7-15 person who performs plastering contracting if: 7-16 (1) the person is a maintenance worker or maintenance 7-17 engineer who is a bona fide employee of the property owner, the 7-18 property lessee, or the management company managing the property 7-19 where the maintenance work is being performed; 7-20 (2) the work is performed in connection with the 7-21 business in which the person is employed; and 7-22 (3) the person and the person's employer do not engage 7-23 in the occupation of plastering contracting for the general public. 7-24 (d) A person exempt from the registration requirements 7-25 imposed under this Act by Subsection (c) of this section may be 7-26 subject to any permit, inspection, or approval requirements 7-27 prescribed by a municipal ordinance. 8-1 SECTION 10. OFFENSE; ADMINISTRATIVE PENALTY. (a) A person 8-2 commits an offense if the person knowingly or intentionally acts as 8-3 a plastering contractor without a certificate of registration under 8-4 this Act. An offense under this subsection is a Class C 8-5 misdemeanor. 8-6 (b) A person who violates this Act or a rule adopted under 8-7 this Act is subject to an administrative penalty assessed by the 8-8 commission as provided by Section 17, Article 9100, Revised 8-9 Statutes. 8-10 SECTION 11. TRANSITION. In making the initial appointments 8-11 to the Plastering Contractors Advisory Board, the commissioner 8-12 shall designate three members for terms expiring on February 1, 8-13 1999, and three members for terms expiring on February 1, 2000. 8-14 SECTION 12. EFFECTIVE DATE. (a) Except as provided by 8-15 Subsection (b) of this section, this Act takes effect September 1, 8-16 1997. 8-17 (b) Sections 9 and 10 of this Act take effect March 1, 1998. 8-18 SECTION 13. EMERGENCY. The importance of this legislation 8-19 and the crowded condition of the calendars in both houses create an 8-20 emergency and an imperative public necessity that the 8-21 constitutional rule requiring bills to be read on three several 8-22 days in each house be suspended, and this rule is hereby suspended.