By Gallegos                                      S.B. No. 761

      75R7041 T                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of Wall & Ceiling 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 Texas State Wall & Ceiling

 1-7     Contractors Advisory 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 cold-formed metal framing system" means

1-15     the skill and expertise to install curtainwall or load-bearing,

1-16     exterior wall framed with light gage metal.

1-17                 (6)  "Interior light-gage framing system" means the

1-18     skill and expertise to install interior walls and ceilings framed

1-19     with light gage metal.

1-20                 (7)  "Drywalling" means the skill and expertise to

1-21     install interior and exterior gypsum board products.

1-22                 (8)  "Acoustical ceilings" means the skill and

1-23     expertise to install suspended acoustical ceiling systems.

1-24                 (9)  "Wall & Ceiling contractor" means a person who

 2-1     engages in installing light-gage framing, drywall, and acoustical

 2-2     ceilings.

 2-3                 (10)  "Person" means an individual, corporation.

 2-4           SECTION 2.  WALL & CEILING CONTRACTORS ADVISORY BOARD.

 2-5     (a)  The Wall & Ceiling Contractors Advisory Board is established

 2-6     as an advisory board to the department.  The board is composed of

 2-7     six members appointed by the commissioner.  A member holds office

 2-8     for a term of two years, with three members terms expiring on

 2-9     February 1 each year.  The commissioner shall designate a member to

2-10     serve as the board's presiding officer.

2-11           (b)  Three of the members appointed under Subsection (a) of

2-12     this section must be Wall & Ceiling contractors eligible for a

2-13     certificate of registration under this Act who each have at least

2-14     10 years experience in the Wall & Ceiling industry.  The remaining

2-15     three members of the board shall represent the general public but

2-16     must be familiar with the Wall & Ceiling industry, including

2-17     persons who work as architects, as general contractors, and in the

2-18     field of insurance.

2-19           (c)  The commissioner may remove a member of the board for

2-20     inefficiency or neglect of duty in office.  If a vacancy occurs on

2-21     the board, the commissioner shall appoint a member who represents

2-22     the same interests as the former member to serve for the unexpired

2-23     term.

2-24           (d)  The board shall meet at least twice each year at the

2-25     call of the presiding officer at a place designated by the

2-26     presiding officer.  A decision of the board is not valid unless

2-27     supported by a majority of the members present at the meeting at

 3-1     which the decision is made.

 3-2           (e)  The board shall advise the commissioner in adopting

 3-3     rules, setting fees or establishing registration renewal

 3-4     requirements, and enforcing and administering this Act.

 3-5           (f)  A member is not entitled to compensation.  Reimbursement

 3-6     of members for expenses incurred for service on the board is

 3-7     subject to Section 4, Article 5252-33, Revised Statutes.

 3-8           SECTION 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.

 3-9     (a)  The commissions shall issue a certificate of registration to

3-10     an applicant for registration as a Wall & Ceiling contractor who

3-11     possesses the qualifications for a certificate of registration

3-12     required by this Act or a rule adopted under this Act.

3-13           (b)  The commissioner shall:

3-14                 (1)  adopt rules relating to issuing a certificate of

3-15     registration under this Act, and

3-16                 (2)  prescribe all forms required under this Act.

3-17           (c)  A certificate of registration issued under this Act is

3-18     valid for one year from the date of issuance.

3-19           SECTION 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a

3-20     certificate of registration under this Act, a person must apply on

3-21     a form prescribed by the commissioner and pay any application and

3-22     registration fees required by the commission.  The applicant must

3-23     show evidence of financial responsibility by posting a bond in an

3-24     amount prescribed by the commissioner.

3-25           (b)  An applicant under this Act shall provide proof that the

3-26     person is covered by insurance by presenting a copy of the person's

3-27     certificate of workers' compensation coverage or an equivalent

 4-1     certificate and proof of the person's general liability insurance

 4-2     coverage.  Proof of insurance coverage under this section must

 4-3     include:

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

 4-5                 (2)  the amounts of coverage;

 4-6                 (3)  the effective date and expiration date of the

 4-7     coverage;

 4-8                 (4)  the coverage; and

 4-9                 (5)  any signature of the insurance agent providing

4-10     cancellation clause applicable to the coverage.

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

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

4-13     tax number, and Internal Revenue Service employer identification

4-14     number.

4-15           (d)  The business section must be the application.

4-16           (e)  The applicant shall provide the applicant's telephone

4-17     number and mailing address.  The applicant shall also provide the

4-18     address where the applicant is physically located if different from

4-19     name used by an applicant under this same on all documents included

4-20     with the mailing address.

4-21           (f)  If the applicant is a partnership or corporation, the

4-22     application must include:

4-23                 (1)  the name of each owner of the applicant firm; and

4-24                 (2)  the name and signature of the individual who filed

4-25     the application for the firm.

4-26           SECTION 5.  FEES.  The commission by rule shall set 8

4-27     application and registration fees under this Act.

 5-1           SECTION 6.  REGISTRATION RENEWAL; CONTINUING EDUCATION.

 5-2     (a)  A person holding a certificate of registration may renew the

 5-3     certificate by:

 5-4                 (1)  completing the renewal application form prescribed

 5-5     by the commissioner;

 5-6                 (2)  paying the renewal fee set by the commission;

 5-7                 (3)  providing a new bond or a continuation certificate

 5-8     for the existing bond that satisfies the requirements of Section

 5-9     4(a) of this Act regarding evidence of financial responsibility;

5-10                 (4)  providing proof that the person satisfies the

5-11     workers' compensation insurance and liability insurance coverage

5-12     requirements under Section 4(b) of this Act; and

5-13                 (5)  providing proof that the person has satisfied the

5-14     continuing education and other renewal requirements adopted by the

5-15     commissioner.

5-16           (b)  To renew a certificate of registration under this

5-17     section, the person must present evidence that the person has

5-18     successfully completed not less than 10 hours of classroom study in

5-19     subjects required by the commissioner during the 12 months

5-20     preceding the date of the renewal.

5-21           (c)  A holder of a certificate of registration under this Act

5-22     who fails to renew the certificate before the date the registration

5-23     expires must pay a late fee set by the commission in addition to

5-24     the other renewal requirements of this section.

5-25           SECTION 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.

5-26     (a)  The commissioner shall enforce this Act.

5-27           (b)  The department shall investigate allegations of

 6-1     violations of this Act.  The department may enter any place of

 6-2     business or other establishment at which alleged illegal activity

 6-3     occurs during reasonable business hours and without advance notice.

 6-4           SECTION 8.  SUSPENSION, REVOCATION, AND RENEWAL OF

 6-5     REGISTRATION; REISSUANCE.  (a)  After a hearing, the commissioner

 6-6     shall suspend or revoke a certificate of registration on a finding

 6-7     that a person:

 6-8                 (1)  made a material misstatement in an application for

 6-9     a certificate of registration;

6-10                 (2)  wilfully disregarded or violated this Act or a

6-11     rule adopted under this Act;

6-12                 (3)  wilfully aided or abetted another in the violation

6-13     of this Act or a rule adopted under this Act;

6-14                 (4)  was convicted for a crime an essential element of

6-15     which is misstatement, fraud, or dishonesty, or a felony; or

6-16                 (5)  engaged in dishonorable or unethical conduct

6-17     likely to deceive, defraud, or harm the public.

6-18           (b)  The commissioner may reissue a certificate of

6-19     registration to a person whose certificate of registration has been

6-20     revoked if the person shows good cause to registration.

6-21           SECTION 9.  PROHIBITED ACTS.  (a)  A person may not engage in

6-22     providing and installing light-gage framing, drywall, and

6-23     acoustical ceilings for compensation unless the person holds a Wall

6-24     & Ceiling contractor certificate of registration under this Act.

6-25           (b)  A person may not bid on or accept a prime contract to

6-26     engage in providing and installing light-gage framing, drywall, and

6-27     acoustical ceilings unless the person is registered as a Wall &

 7-1     Ceiling contractor under this Act.

 7-2           SECTION 10.  OFFENSE:  ADMINISTRATIVE PENALTY.  (a)  A person

 7-3     commits an offense if the person knowingly or intentionally acts as

 7-4     a Wall & Ceiling contractor without a certificate of registration

 7-5     under this Act.  An offense under this subsection is a Class A

 7-6     misdemeanor.

 7-7           (b)  this Act applies in writing to the department and

 7-8     justify reissuing the certificate of

 7-9     A person who violates this Act or a rule adopted under is subject

7-10     to an administrative penalty assessed by the commission as provided

7-11     by Section 17, Article 9100, Revised Statutes.

7-12           SECTION 11.  TRANSITION.  In making the initial appointments

7-13     to the Wall & Ceiling Contractors Advisory Board, the commissioner

7-14     shall designate three members for terms expiring on February 1,

7-15     1998, and three members for terms expiring on February 1, 1999.

7-16           SECTION 12.  EFFECTIVE DATE.  (a)  Except as provided by

7-17     Subsection (b) of this section this Act takes effect September 1,

7-18     1997, by Sections 9 and 10 of this Act take effect March 1, 1998.

7-19           SECTION 13.  EMERGENCY.  The importance of this legislation

7-20     and the 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.