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.