1-1     By:  Gallegos                                          S.B. No. 761

 1-2           (In the Senate - Filed February 25, 1997; February 27, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     April 11, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 8, Nays 4; April 11, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 761                 By:  Gallegos

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the regulation of wall and ceiling contractors;

1-11     providing penalties.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.   Chapter 20, Title 132, Revised Statutes, is

1-14     amended by adding Article 9025 to read as follows:

1-15           Art. 9025.  WALL AND CEILING CONTRACTORS

1-16           Sec. 1.  DEFINITIONS.  In this article:

1-17                 (1)  "Acoustical ceiling construction"  means the

1-18     construction of suspended acoustical ceiling systems.

1-19                 (2)  "Board" means the Texas State Wall and Ceiling

1-20     Contractors Advisory Board.

1-21                 (3)  "Commission" means the Texas Commission of

1-22     Licensing and Regulation.

1-23                 (4)  "Commissioner" means the commissioner of licensing

1-24     and regulation.

1-25                 (5)  "Department" means the Texas Department of

1-26     Licensing and Regulation.

1-27                 (6)  "Drywalling" means the construction of interior

1-28     and exterior gypsum board products.

1-29                 (7)  "Exterior cold-forming metal framing system" means

1-30     the construction of a curtain wall or load-bearing exterior wall

1-31     framed with light-gage metal for gypsum board systems.

1-32                 (8)  "Interior light-gage framing system" means the

1-33     construction of interior walls and ceiling framed with light-gage

1-34     metal for gypsum board systems.

1-35                 (9)  "Wall and ceiling contracting" means performing or

1-36     offering to perform the prime contracting of the construction,

1-37     alteration, or modification of light-gage framing, drywall, or

1-38     acoustical products or systems.

1-39                 (10)  "Wall and ceiling contractor" or "wall and

1-40     ceiling company" means a person, corporation, partnership, or other

1-41     entity that has the skill and expertise to enter into a prime

1-42     contract for the construction of wall or ceiling systems.

1-43           Sec. 2.  WALL AND CEILING CONTRACTORS ADVISORY BOARD.

1-44     (a)  The Texas State Wall and Ceiling Contractors Advisory Board is

1-45     established as an advisory board to the department.  The board is

1-46     composed of six members appointed by the commissioner.  A member

1-47     holds office for a term of two years, with three members' terms

1-48     expiring on February 1 of each year.  The commissioner shall

1-49     designate a member to serve as the board's presiding officer.

1-50           (b)  Three of the members appointed under Subsection (a)  of

1-51     this section must be wall and ceiling contractors eligible for a

1-52     certificate of registration under this article who each have at

1-53     least 10 years' experience in the wall and ceiling industry and

1-54     represent the residential, multifamily, and commercial sector.  The

1-55     remaining three members of the board shall represent the general

1-56     public.

1-57           (c)  The commissioner may remove a member of the board for

1-58     inefficiency or neglect of duty once in office.  If a vacancy

1-59     occurs on the board, the commissioner shall appoint a member who

1-60     represents the same interests as the former member to serve for the

1-61     unexpired term.

1-62           (d)  The board shall meet at least once every six months and

1-63     may meet at other times.  The board shall meet at the call of the

1-64     commissioner and at a place designated by the board in this state.

 2-1     A decision of the board is not valid unless a majority of the

 2-2     members present at the meeting in which the decision is made vote

 2-3     in favor of the decision.

 2-4           (e)  The board shall advise the commissioner in adopting

 2-5     rules, setting fees, establishing registration renewal

 2-6     requirements, and in enforcing and administering this article.

 2-7           (f)  A member is not entitled to compensation.  Reimbursement

 2-8     of members for expenses incurred for service on the board is

 2-9     subject to Section 4, Article 6252-33, Revised Statutes.

2-10           Sec. 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.

2-11     (a)  The commissioner shall issue a certificate of registration to

2-12     an applicant for registration as a wall and ceiling contractor who

2-13     possesses the qualifications for a certificate of registration

2-14     required by this article or a rule adopted under this article.

2-15           (b)  The commissioner shall:

2-16                 (1)  adopt rules relating to issuing a certificate of

2-17     registration under this article; and

2-18                 (2)  prescribe all forms required under this article.

2-19           Sec. 4.  REGISTRATION REQUIREMENTS.  (a)  An applicant under

2-20     this article shall provide proof that the person is covered by

2-21     general liability insurance.  Proof of insurance coverage under

2-22     this section must include:

2-23                 (1)  the policy number and name of insurer;

2-24                 (2)  the amount of coverage;

2-25                 (3)  the effective date and expiration date of the

2-26     coverage;

2-27                 (4)  a description of the coverage; and

2-28                 (5)  any signature of the insurance agent providing

2-29     cancellation clause application to the coverage.

2-30           (b)  An applicant under this article shall provide proof that

2-31     the person is covered by workers' compensation insurance or an

2-32     alternative certificate.

2-33           (c)  An application under this section must be notarized and

2-34     contain the applicant's state identification number, sales tax

2-35     number, and Internal Revenue Service employer identification

2-36     number.

2-37           (d)  The business name used by an applicant under this

2-38     section must be the same on all documents included with the

2-39     application.

2-40           (e)  The applicant shall provide the applicant's telephone

2-41     number and mailing address.  The application shall also provide the

2-42     address where the applicant is physically located if that address

2-43     is different from the mailing address.

2-44           (f)  If an applicant is a partnership, corporation, or other

2-45     entity the application must include:

2-46                 (1)  the name of each owner of the applicant entity;

2-47     and

2-48                 (2)  the name, signature, and title of the individual

2-49     who filed the application for the entity.

2-50           (g)  The applicant must verify that all taxes owed by the

2-51     applicant to the state have been paid.

2-52           Sec. 5.  FEES. The commission by rule shall set application

2-53     and registration fees under this article.

2-54           Sec. 6.  REGISTRATION RENEWAL.  (a)  A person holding a

2-55     certificate of registration may renew the certificate by:

2-56                 (1)  completing the renewal application form prescribed

2-57     by the commissioner;

2-58                 (2)  paying the renewal fee set by the commission;

2-59                 (3)  providing proof that the person satisfies the

2-60     general liability insurance coverage requirements under Subsection

2-61     (a) of Section 4 of this article;

2-62                 (4)  providing proof that the person satisfies the

2-63     workers' compensation requirements of Subsection (b) of Section 4

2-64     of this article; and

2-65                 (5)  providing verification that all taxes  owed by the

2-66     applicant to the state have been paid.

2-67           (b)  A holder of a certificate of registration under this

2-68     article who fails to renew the certificate before the date the

2-69     registration expires must pay a late fee set by the commission in

 3-1     addition to satisfying the other renewal requirements of this

 3-2     section.

 3-3           Sec. 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.

 3-4     (a)  The commissioner shall enforce this article.

 3-5           (b)  The department shall investigate allegations of

 3-6     violations of this article.  The department may enter any place of

 3-7     business or other establishment in which alleged illegal activity

 3-8     occurs during reasonable business hours and without advance notice.

 3-9           Sec. 8.  SUSPENSION, REVOCATION, AND REISSUANCE.  (a)  After

3-10     a hearing, the commissioner shall suspend or revoke a certificate

3-11     of registration on a finding that a person:

3-12                 (1)  made a material misstatement in an application for

3-13     a certificate of registration;

3-14                 (2)  wilfully disregarded or violated this article or a

3-15     rule adopted under this article;

3-16                 (3)  wilfully aided or abetted another in the violation

3-17     of this article or a rule adopted under this article;

3-18                 (4)  was convicted of a felony or a crime an essential

3-19     element of which is misstatement, fraud, or dishonesty; or

3-20                 (5)  engaged in dishonest or unethical conduct likely

3-21     to deceive, defraud, or harm the public.

3-22           (b)  The commissioner may reissue a certificate of

3-23     registration to a person whose certificate of registration has been

3-24     revoked under this section if the person applies to the

3-25     commissioner in writing to request a hearing and shows good cause

3-26     to justify reissuing the certificate of registration.

3-27           Sec. 9.  PROHIBITED ACTS.  A person may not engage in wall

3-28     and ceiling contracting unless the person is registered as a wall

3-29     and ceiling contractor under this article.

3-30           Sec. 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person

3-31     commits an offense if the person knowingly or intentionally

3-32     violates Section 9 of this article.  An offense under this

3-33     subsection is a Class C misdemeanor.

3-34           (b)  A person who violates this article or a rule adopted

3-35     under this article is subject to an administrative penalty to be

3-36     assessed by the commission as provided by Section 17, Article 9100,

3-37     Revised Statutes.

3-38           SECTION 2.   (a)  Except as provided by Subsection (b) of

3-39     this section, this Act takes effect September 1, 1997.

3-40           (b)  Sections 9 and 10, Article 9025, Revised Statutes, as

3-41     added by this Act, take effect March 1, 1998.

3-42           (c)  In making the initial appointments to the Texas State

3-43     Wall and Ceiling Contractors Advisory Board, the commissioner of

3-44     licensing and regulation shall designate three members for terms

3-45     expiring February 1, 1999, and three members for terms expiring

3-46     February 1, 2000.

3-47           SECTION 3.  The importance of this legislation and the

3-48     crowded condition of the calendars in both houses create an

3-49     emergency and an imperative public necessity that the

3-50     constitutional rule requiring bills to be read on three several

3-51     days in each house be suspended, and this rule is hereby suspended.

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