By Garcia                                       H.B. No. 2135

      75R6864 BEM-F                           

                                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" means a suspended acoustical

1-10     ceiling system.

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)  "Drywall" means interior and exterior gypsum board

1-20     products.

1-21                 (7)  "Interior light-gage framing" means interior walls

1-22     and ceilings framed with light gage metal.

1-23                 (8)  "Person" means an individual, corporation,

1-24     partnership, sole proprietorship, association, or other private

 2-1     legal entity.

 2-2                 (9)  "Wall and ceiling contractor" means a person who

 2-3     engages in installing interior light-gage framing, drywall, or

 2-4     acoustical ceilings.

 2-5           Sec. 2.  WALL AND CEILING CONTRACTORS ADVISORY BOARD.  (a)

 2-6     The Wall and Ceiling Contractors Advisory Board is established as

 2-7     an advisory board to the department.  The board consists of six

 2-8     members appointed by the commissioner.  A member holds office for a

 2-9     term of two years, with three members' terms expiring on February 1

2-10     each year.  The commissioner shall designate a member to serve as

2-11     the board's presiding officer.

2-12           (b)  Three of the members appointed under Subsection (a) of

2-13     this section must be wall and ceiling contractors eligible for a

2-14     certificate of registration under this article who each have at

2-15     least 10 years experience in the wall and ceiling contracting

2-16     industry.  The remaining three members of the board shall represent

2-17     the general public but must be familiar with the wall and ceiling

2-18     industry and shall include persons who are architects, general

2-19     contractors, and persons who work in the field of insurance.

2-20           (c)  The commissioner may remove a member of the board for

2-21     inefficiency or neglect of a duty of office.  If a vacancy occurs

2-22     on the board, the commissioner shall appoint a person who

2-23     represents the same interests as the former member to serve for the

2-24     remainder of the unexpired term.

2-25           (d)  The board shall meet at least twice each year at the

2-26     call of the presiding officer at a place designated by the

2-27     presiding officer.  A decision of the board is not valid unless

 3-1     supported by a majority of the members present at the meeting at

 3-2     which the decision is made.

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

 3-4     rules, setting fees, establishing registration renewal

 3-5     requirements, and enforcing and administering this article.

 3-6           (f)  A board member is not entitled to compensation but is

 3-7     entitled to reimbursement for actual and necessary expenses

 3-8     incurred in the performance of the member's official duties.

 3-9           Sec. 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; TERM.  (a)

3-10     The commission shall issue a certificate of registration to an

3-11     applicant for registration as a wall and ceiling contractor who

3-12     possesses the qualifications for a certificate under this article

3-13     or a rule adopted under this article.

3-14           (b)  A certificate of registration issued under this article

3-15     is valid for one year after the date of issuance.

3-16           Sec. 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a

3-17     certificate of registration under this article, a person must apply

3-18     on a form prescribed by the commissioner and pay any application

3-19     and registration fees required by the commission.  The applicant

3-20     must show evidence of financial responsibility by posting a bond

3-21     with the state in an amount prescribed by the commissioner.

3-22           (b)  An applicant under this article shall provide to the

3-23     commissioner proof that the person has the appropriate insurance

3-24     coverage by presenting a copy of the person's certificate of

3-25     workers' compensation coverage or an equivalent certificate and

3-26     proof of the person's general liability insurance coverage.  Proof

3-27     of insurance coverage under this section must include:

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

 4-2                 (2)  the amounts of coverage;

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

 4-4     coverage;

 4-5                 (4)  the extent and type of coverage; and

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

 4-7     cancellation clause applicable to the coverage.

 4-8           (c)  An application under this section must be notarized and

 4-9     contain the applicant's state identification number, if any, sales

4-10     tax number, and Internal Revenue Service employer identification

4-11     number.

4-12           (d)  The applicant shall provide the applicant's telephone

4-13     number and mailing address.  The applicant shall also provide the

4-14     address where the applicant is physically located if that address

4-15     is different from the applicant's mailing address.

4-16           (e)  An applicant that is a business entity must include with

4-17     the applicant's application:

4-18                 (1)  the name of each owner of the entity; and

4-19                 (2)  the name and signature of the individual who filed

4-20     the application for the entity.

4-21           Sec. 5.  REGISTRATION RENEWAL; CONTINUING EDUCATION.  (a)  A

4-22     person holding a certificate of registration may renew the

4-23     certificate by:

4-24                 (1)  filing a renewal application with the

4-25     commissioner;

4-26                 (2)  paying the renewal fee; and

4-27                 (3)  providing to the commissioner:

 5-1                       (A)  a new bond or a continuation certificate for

 5-2     the existing bond required under Section 4(a) of this article;

 5-3                       (B)  proof that the person satisfies the workers'

 5-4     compensation insurance and liability insurance coverage

 5-5     requirements of Section 4(b) of this article; and

 5-6                       (C)  proof that the person has satisfied the

 5-7     continuing education and other renewal requirements adopted by the

 5-8     commissioner under Subsection (b) of this section.

 5-9           (b)  To be eligible for renewal of a certificate of

5-10     registration under this article, a person must successfully

5-11     complete not less than 10 hours of classroom study in subjects

5-12     prescribed by the commissioner during the 12 months preceding the

5-13     expiration date of the person's certificate.

5-14           (c)  A holder of a certificate of registration under this

5-15     article who renews the certificate after the date the registration

5-16     expires must pay a late fee in addition to satisfying the other

5-17     renewal requirements of this section.

5-18           Sec. 6.  INVESTIGATIONS AND INSPECTIONS.  The department

5-19     shall investigate allegations of violations of this article.  The

5-20     department may enter any place of business or other establishment

5-21     during reasonable business hours and without advance notice in

5-22     which illegal activity is alleged to occur involving the

5-23     performance of wall and ceiling contracting by a person registered

5-24     under this article.

5-25           Sec. 7.  SUSPENSION, REVOCATION, AND RENEWAL OF REGISTRATION;

5-26     REISSUANCE.  (a)  After a hearing, the commissioner shall suspend

5-27     or revoke a certificate of registration of a person who is found to

 6-1     have:

 6-2                 (1)  made a material misstatement in an application for

 6-3     a certificate of registration;

 6-4                 (2)  wilfully disregarded or violated this article or a

 6-5     rule adopted under this article;

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

 6-7     violation of this article or a rule adopted under this article;

 6-8                 (4)  been convicted of a crime, an essential element of

 6-9     which is misstatement, fraud, or dishonesty, or a felony; or

6-10                 (5)  engaged in dishonorable or unethical conduct

6-11     intended to deceive, defraud, or harm the public.

6-12           (b)  The commissioner may reissue a certificate of

6-13     registration to a person whose certificate of registration has been

6-14     revoked under Subsection (a) of this section if the person shows

6-15     good cause for the reissuance of the person's registration.

6-16           Sec. 8.  CERTIFICATE OF REGISTRATION REQUIRED; EXEMPTION.

6-17     (a)  A person may not act as a wall and ceiling contractor for

6-18     compensation unless the person holds a certificate of registration

6-19     as a wall and ceiling contractor under this article.

6-20           (b)  A person may not bid on or accept a contract to engage

6-21     in providing and installing light-gage framing, drywall, or

6-22     acoustical ceilings unless the person is registered as a wall and

6-23     ceiling contractor under this article.

6-24           (c)  A wall and ceiling contractor having less than 10

6-25     employees is not required to be registered under this article.

6-26           Sec. 9.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person

6-27     commits an offense if the person knowingly or intentionally

 7-1     violates Section 8 of this article.  An offense under this article

 7-2     is a Class A misdemeanor.

 7-3           (b)  A person who violates this article or a rule adopted

 7-4     under this article is subject to an administrative penalty under

 7-5     Section 17, Article 9100, Revised Statutes.

 7-6           SECTION 2.  (a)  In making the initial appointments to the

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

 7-8     licensing and regulation shall designate, not later than October 1,

 7-9     1997, three members for terms expiring on February 1, 1998, and

7-10     three members for terms expiring on February 1, 1999.

7-11           (b)  The commissioner of licensing and regulation and the

7-12     Texas Commission of Licensing and Regulation shall adopt rules

7-13     under Article 9025, Revised Statutes, as added by this Act, not

7-14     later than December 1, 1997.

7-15           SECTION 3.  (a)  Except as provided by Subsection (b) of this

7-16     section, this Act takes effect September 1, 1997.

7-17           (b)  Sections 8 and 9, Article 9025, Revised Statutes, as

7-18     added by this Act, take effect March 1, 1998.

7-19           SECTION 4.  The importance of this legislation and the

7-20     crowded condition of the calendars in both houses create an

7-21     emergency and an imperative public necessity that the

7-22     constitutional rule requiring bills to be read on three several

7-23     days in each house be suspended, and this rule is hereby suspended.