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.