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.