Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Goolsby                                              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, ceiling, and other surfaces in the construction and

1-24     remodeling of residential and commercial structures.  This

 2-1     definition does not apply to taping, floating, or repairing sheet

 2-2     rock.

 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 in February 1 each

2-18     year.  The commissioner shall designate a member to serve as the

2-19     board's 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

2-28     inefficiency or neglect of duty in office.  If a vacancy occurs on

2-29     the board, the commissioner shall appoint a member who represents

2-30     the same interests as the former member to serve for the unexpired

 3-1     term.

 3-2           (d)  The board shall meet at least twice each year at the

 3-3     call of the presiding officer at the place designated by the

 3-4     presiding officer.  A decision of the board is not valid unless

 3-5     supported by a majority of the members present at the meeting at

 3-6     which the decision is made.

 3-7           (e)  The board shall advise the commissioner in adopting

 3-8     rules, setting fees, establishing registration renewal

 3-9     requirements, and enforcing and administering this Act.

3-10           (f)  A member is not entitled to compensation.  Reimbursement

3-11     of members for expenses incurred for service on the board is

3-12     subject to Section 4, Article 6252-33, Revised Statutes.

3-13           SECTION 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.

3-14     (a)  The commissioner shall issue a certificate of registration to

3-15     an applicant for registration as a plastering contractor who

3-16     possesses the qualifications for a certificate of registration

3-17     required by this Act or a rule adopted under this Act.

3-18           (b)  The commissioner shall:

3-19                 (1)  adopt rules relating to issuing a certificate of

3-20     registration under this Act; and

3-21                 (2)  prescribe all forms required under this Act.

3-22           (c)  A certificate of registration issued under this Act is

3-23     valid for one year from the date of issuance.

3-24           SECTION 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a

3-25     certificate or registration under this Act, a person must apply on

3-26     a form prescribed by the commissioner and pay any application and

3-27     registration fees required by the commission.  The applicant must

3-28     show evidence of financial responsibility by posting a bond in an

3-29     amount prescribed by the commissioner.

3-30           (b)  An applicant under this Act shall provide proof that the

 4-1     person is covered by insurance by presenting a copy of the person's

 4-2     certificate of workers' compensation coverage or an equivalent

 4-3     certificate and proof of the person's general liability insurance

 4-4     coverage.  Proof of insurance coverage under this section must

 4-5     include:

 4-6                 (1)  the policy number and name of the insurer;

 4-7                 (2)  the amounts of coverage;

 4-8                 (3)  the effective date and expiration date of the

 4-9     coverage; and

4-10                 (4)  the signature of the insurance agent providing

4-11     coverage.

4-12           (c)  An application under this section must be notarized and

4-13     contain the applicant's state identification number, if any, sales

4-14     tax number, and Internal Revenue Service employer identification

4-15     number.

4-16           (d)  The business name used by an applicant under this

4-17     section must be the same on all documents included with the

4-18     application.

4-19           (e)  The applicant shall provide the applicant's telephone

4-20     number and mailing address.  The applicant shall also provide the

4-21     address where the applicant is physically located if different from

4-22     the mailing address.

4-23           (f)  If the applicant is a partnership or corporation, the

4-24     application must include:

4-25                 (1)  the name of each owner of the applicant firm;  and

4-26                 (2)  the name and signature of the individual who filed

4-27     the application for the firm.

4-28           SECTION 5.  FEES.  The commission by rule shall set

4-29     application and registration fees under this Act.

4-30           SECTION 6.  REGISTRATION RENEWAL; CONTINUING EDUCATION.  (a)

 5-1     A person holding a certificate of registration may renew the

 5-2     certificate by:

 5-3                 (1)  completing the renewal application form prescribed

 5-4     by the commissioner;

 5-5                 (2)  paying the renewal fee set by the commission;

 5-6                 (3)  providing a new bond or a continuation certificate

 5-7     for the existing bond that satisfies the requirements of Section

 5-8     4(a) of this Act regarding evidence of financial responsibility;

 5-9                 (4)  providing proof that the person satisfies the

5-10     workers' compensation insurance and liability insurance coverage

5-11     requirements under Section 4(b) of this Act; and

5-12                 (5)  providing proof that the person has satisfied the

5-13     continuing education and other renewal requirements adopted by the

5-14     commissioner.

5-15           (b)  To renew a certificate of registration under this

5-16     section, the person must present evidence that the person has

5-17     successfully completed not less than 10 hours of classroom study in

5-18     subjects required by the commissioner during the 12 months

5-19     preceding the date of renewal.

5-20           (c)  A holder of a certificate of registration under this Act

5-21     who fails to renew the certificate before the date of the

5-22     registration expires must pay a late fee set by the commission in

5-23     addition to the other renewal requirements of this section.

5-24           SECTION 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.

5-25     (a)  The commission shall enforce this Act.

5-26           (b)  The department shall investigate allegations of

5-27     violations of this Act.  The department may enter any place of

5-28     business or other establishment at which alleged illegal activity

5-29     occurs during reasonable business hours and without advance notice.

5-30           SECTION 8.  SUSPENSION, REVOCATION, AND RENEWAL OF

 6-1     REGISTRATION; REISSUANCE.  (a)  After a hearing, the commissioner

 6-2     shall suspend or revoke a certificate of registration on a finding

 6-3     that a person:

 6-4                 (1)  made a material misstatement in an application for

 6-5     a certificate of registration;

 6-6                 (2)  wilfully disregarded or violated this Act or a

 6-7     rule adopted under this Act;

 6-8                 (3)  wilfully aided or abetted another in the violation

 6-9     of this Act or a rule adopted under this Act;

6-10                 (4)  was convicted for a crime an essential element of

6-11     which is misstatement, fraud, or dishonesty, or a felony; or

6-12                 (5)  engaged in dishonorable or unethical conduct

6-13     likely to deceive, defraud, or harm the public.

6-14           (b)  The commissioner may reissue a certificate of

6-15     registration to a person whose certificate of registration has been

6-16     revoked if the person applies in writing to the department and

6-17     shows good cause to justify reissuing the certificate of

6-18     registration.

6-19           SECTION 9.  PROHIBITED ACTS.  (a)  Except as provided by

6-20     Subsection (c), a person may not engage in metal lathing,

6-21     plastering, spray fireproofing, or the application of an exterior

6-22     insulation finish system for compensation unless the person holds a

6-23     plastering contractor certificate of registration under this Act.

6-24           (b)  A person may not bid on or accept a prime contract to

6-25     engage in metal lathing, plastering, spray fireproofing, or the

6-26     application of an exterior insulation fire system unless the person

6-27     is registered as a plastering contractor under this Act.

6-28           (c)  The requirement under this Subsection (a) does not apply

6-29     to a person who performs plastering contacting if,

6-30                 (1)  the person is a maintenance man or maintenance

 7-1     engineer who is a bona fide employee of the property owner, the

 7-2     property lessee, or the management company managing the property

 7-3     where the maintenance work is being performed;

 7-4                 (2)  the work is performed in connection with the

 7-5     business in which the person is employed; and

 7-6                 (3)  The person and the person's employer referred to

 7-7     in (1) do not engage in the occupation of plastering contracting

 7-8     for the general public.

 7-9           (d)  The work described by Subsection (c) of this section

7-10     remains subject to any permit, inspection, or approval requirements

7-11     prescribed by a municipal ordinance.

7-12           SECTION 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person

7-13     commits an offense if the person knowingly or intentionally acts as

7-14     a plastering contractor without a certificate of registration under

7-15     this Act.  An offense under this subsection is a Class A

7-16     misdemeanor.

7-17           (b)  A person who violated this Act or a rule adopted under

7-18     this Act is subject to an administrative penalty assessed by the

7-19     commission as provided by Section 17, Article 9100, Revised

7-20     Statutes.

7-21           SECTION 11.  TRANSITION.  In making the initial appointments

7-22     to the Plastering Contractors Advisory Board, the commissioner

7-23     shall designate three members for terms expiring on February 1,

7-24     1999, and three members for terms expiring on February 1, 2000.

7-25           SECTION 12.  EFFECTIVE DATE.  (a)  Except as provided by

7-26     Subsection (b) of this section, this Act takes effect September 1,

7-27     1997.

7-28           (b)  Sections 9 and 10 of this Act take effect March 1, 1998.

7-29           SECTION 13.  EMERGENCY.  The importance of this legislation

7-30     and the crowded condition of the calendars in both houses create an

 8-1     emergency and an imperative public necessity that the

 8-2     constitutional rule requiring bills to be read on three several

 8-3     days in each house be suspended, and this rule is hereby suspended.