75R10851 BEM-F                           

         By Garcia                                             H.B. No. 2135

         Substitute the following for H.B. No. 2135:

         By Yarbrough                                      C.S.H.B. No. 2135

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of wall and ceiling contractors;

 1-3     providing penalties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.   Chapter 20, Title 132, Revised Statutes, is

 1-6     amended by adding Article 9025 to read as follows:

 1-7           Art. 9025.  WALL AND CEILING CONTRACTORS

 1-8           Sec. 1.  DEFINITIONS.  In this article:

 1-9                 (1)  "Acoustical ceiling construction"  means the

1-10     construction of suspended acoustical ceiling systems.

1-11                 (2)  "Board" means the Texas State Wall and Ceiling

1-12     Contractors Advisory Board.

1-13                 (3)  "Commission" means the Texas Commission of

1-14     Licensing and Regulation.

1-15                 (4)  "Commissioner" means the commissioner of licensing

1-16     and regulation.

1-17                 (5)  "Department" means the Texas Department of

1-18     Licensing and Regulation.

1-19                 (6)  "Drywalling" means the construction of interior

1-20     and exterior gypsum board products.

1-21                 (7)  "Exterior cold-forming metal framing system" means

1-22     the construction of a curtain wall or load-bearing exterior wall

1-23     framed with light-gage metal for gypsum board systems.

1-24                 (8)  "Interior light-gage framing system" means the

 2-1     construction of interior walls and ceiling framed with light-gage

 2-2     metal for gypsum board systems.

 2-3                 (9)  "Wall and ceiling contracting" means performing or

 2-4     offering to perform the prime contracting of the construction,

 2-5     alteration, or modification of light-gage framing, drywall, or

 2-6     acoustical products or systems.

 2-7                 (10)  "Wall and ceiling contractor" or "wall and

 2-8     ceiling company" means a person, corporation, partnership, or other

 2-9     entity that has the skill and expertise to enter into a prime

2-10     contract for the construction of wall or ceiling systems.

2-11           Sec. 2.  WALL AND CEILING CONTRACTORS ADVISORY BOARD.

2-12     (a)  The Texas State Wall and Ceiling Contractors Advisory Board is

2-13     established as an advisory board to the department.  The board is

2-14     composed of six members appointed by the commissioner.  A member

2-15     holds office for a term of two years, with three members' terms

2-16     expiring on February 1 of each year.  The commissioner shall

2-17     designate a member to serve as the board's presiding officer.

2-18           (b)  Three of the members appointed under Subsection (a)  of

2-19     this section must be wall and ceiling contractors eligible for a

2-20     certificate of registration under this article who each have at

2-21     least 10 years' experience in the wall and ceiling industry and

2-22     represent the residential, multi-family, and commercial sector.

2-23     The remaining three members of the board shall represent the

2-24     general public.

2-25           (c)  The commissioner may remove a member of the board for

2-26     inefficiency or neglect of duty once in office.  If a vacancy

2-27     occurs on the board, the commissioner shall appoint a member who

 3-1     represents the same interests as the former member to serve for the

 3-2     unexpired term.

 3-3           (d)  The board shall meet at least once every six months and

 3-4     may meet at other times.  The board shall meet at the call of the

 3-5     commissioner and at a place designated by the board in this state.

 3-6     A decision of the board is not valid unless a majority of the

 3-7     members present at the meeting in which the decision is made vote

 3-8     in favor of the decision.

 3-9           (e)  The board shall advise the commissioner in adopting

3-10     rules, setting fees, establishing registration renewal

3-11     requirements, and in enforcing and administering this article.

3-12           (f)  A member is not entitled to compensation.  Reimbursement

3-13     of members for expenses incurred for service on the board is

3-14     subject to Section 4, Article 6252-33, Revised Statutes.

3-15           Sec. 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.  (a)

3-16     The commissioner shall issue a certificate of  registration to an

3-17     applicant for registration as a wall and ceiling contractor who

3-18     possesses the qualifications for a certificate of registration

3-19     required by this article or a rule adopted under this article.

3-20           (b)  The commissioner shall:

3-21                 (1)  adopt rules relating to issuing a certificate of

3-22     registration under this article; and

3-23                 (2)  prescribe all forms required under this article.

3-24           Sec. 4.  REGISTRATION REQUIREMENTS.  (a)  An applicant under

3-25     this article shall provide proof that the person is covered by

3-26     general liability insurance.  Proof of insurance coverage under

3-27     this section must include:

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

 4-2                 (2)  the amount of coverage;

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

 4-4     coverage;

 4-5                 (4)  a description of the coverage; and

 4-6                 (5)  any signature of the insurance agent providing

 4-7     cancellation clause application to the coverage.

 4-8           (b)  An applicant under this article shall provide proof that

 4-9     the person is covered by workers' compensation insurance or an

4-10     alternative certificate.

4-11           (c)  An application under this section must be notarized and

4-12     contain the applicant's state identification number, sales tax

4-13     number, and Internal Revenue Service employer identification

4-14     number.

4-15           (d)  The business name used by an applicant under this

4-16     section must be the same on all documents included with the

4-17     application.

4-18           (e)  The applicant shall provide the applicant's telephone

4-19     number and mailing address.  The application shall also provide the

4-20     address where the applicant is physically located if that address

4-21     is different from the mailing address.

4-22           (f)  If an applicant is a partnership, corporation, or other

4-23     entity the application must include:

4-24                 (1)  the name of each owner of the applicant entity;

4-25     and

4-26                 (2)  the name, signature, and title of the individual

4-27     who filed the application for the entity.

 5-1           (g)  The applicant must verify that all taxes owed by the

 5-2     applicant to the state have been paid.

 5-3           Sec. 5.  FEES.  The commission by rule shall set application

 5-4     and registration fees under this article.

 5-5           Sec. 6.  REGISTRATION RENEWAL.  (a)  A person holding a

 5-6     certificate of registration may renew the certificate by:

 5-7                 (1)  completing the renewal application form prescribed

 5-8     by the commissioner;

 5-9                 (2)  paying the renewal fee set by the commission;

5-10                 (3)  providing proof that the person satisfies the

5-11     general liability insurance coverage requirements under Section

5-12     4(a) of this article;

5-13                 (4)  providing proof that the person satisfies the

5-14     workers' compensation requirements of Section 4(b) of this article;

5-15     and

5-16                 (5)  providing verification that all taxes  owed by the

5-17     applicant to the state have been paid.

5-18           (b)  A holder of a certificate of registration under this

5-19     article who fails to renew the certificate before the date the

5-20     registration expires must pay a late fee set by the commission in

5-21     addition to satisfying the other renewal requirements of this

5-22     section.

5-23           Sec. 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.

5-24     (a)  The commissioner shall enforce this article.

5-25           (b)  The department shall investigate allegations of

5-26     violations of this article.  The department may enter any place of

5-27     business or other establishment in which alleged illegal activity

 6-1     occurs during reasonable business hours and without advance notice.

 6-2           Sec. 8.  SUSPENSION, REVOCATION, AND REISSUANCE.  (a)  After

 6-3     a hearing, the commissioner shall suspend or revoke a certificate

 6-4     of registration on a finding that a person:

 6-5                 (1)  made a material misstatement in an application for

 6-6     a certificate of registration;

 6-7                 (2)  wilfully disregarded or violated this article or a

 6-8     rule adopted under this article;

 6-9                 (3)  wilfully aided or abetted another in the violation

6-10     of this article or a rule adopted under this article;

6-11                 (4)  was convicted of a felony or a crime an essential

6-12     element of which is misstatement, fraud, or dishonesty; or

6-13                 (5)  engaged in dishonest or unethical conduct likely

6-14     to deceive, defraud, or harm the public.

6-15           (b)  The commissioner may reissue a certificate of

6-16     registration to a person whose certificate of registration has been

6-17     revoked under this section if the person applies to the

6-18     commissioner in writing to request a hearing and shows good cause

6-19     to justify reissuing the certificate of registration.

6-20           Sec. 9.  PROHIBITED ACTS.  A person may not engage in wall

6-21     and ceiling contracting unless the person is registered as a wall

6-22     and ceiling contractor under this article.

6-23           Sec. 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person

6-24     commits an offense if the person knowingly or intentionally

6-25     violates Section 9 of this article.  An offense under this

6-26     subsection is a Class C misdemeanor.

6-27           (b)  A person who violates this article or a rule adopted

 7-1     under this article is subject to an administrative penalty to be

 7-2     assessed by the commission as provided by Section 17, Article 9100,

 7-3     Revised Statutes.

 7-4           SECTION 2.   (a)  Except as provided by Subsection (b) of

 7-5     this section, this Act takes effect September 1, 1997.

 7-6           (b)  Sections 9 and 10, Article 9025, Revised Statutes, as

 7-7     added by this Act, take effect March 1, 1998.

 7-8           (c)  In making the initial appointments to the Texas State

 7-9     Wall and Ceiling Contractors Advisory Board, the commissioner

7-10     shall designate three members for terms expiring February 1, 1999,

7-11     and three members for terms expiring February 1, 2000.

7-12           SECTION 3.  The importance of this legislation and the

7-13     crowded condition of the calendars in both houses create an

7-14     emergency and an imperative public necessity that the

7-15     constitutional rule requiring bills to be read on three several

7-16     days in each house be suspended, and this rule is hereby suspended.