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.