By Carona                                       S.B. No. 1580

      75R9395 JMM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of plastering 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 Plastering Contractors Advisory

 1-7     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 insulation finish system" means a

1-15     non-load-bearing, barrier wall, exterior cladding system that is

1-16     applied over insulation board and glass fiber reinforcing mesh with

1-17     both a base coat and a textured protective finish coat.

1-18                 (6)  "Metal lathing" means the art or skill of

1-19     installing support framing, backing, and related trims to serve as

1-20     a substrate to receive plaster.

1-21                 (7)  "Plastering" means the art or skill of applying

1-22     various wet materials over surfaces to produce both interior and

1-23     exterior walls, ceilings, and other surfaces in the construction

1-24     and remodeling of residential and commercial structures.  The term

 2-1     does not include taping, floating, or repairing Sheetrock.

 2-2                 (8)  "Plastering contractor" means a person who engages

 2-3     in metal lathing, plastering, spray fireproofing, or the

 2-4     application of an exterior insulation finish system for which the

 2-5     person is required to hold a certificate of registration under this

 2-6     Act.

 2-7                 (9)  "Spray fireproofing" means the art or skill of

 2-8     applying various materials to enhance the fire resistance of the

 2-9     structural elements of a building.

2-10                 (10)  "Person" means an individual, partnership, or

2-11     corporation.

2-12           SECTION 2.  PLASTERING CONTRACTORS ADVISORY BOARD.  (a)  The

2-13     Plastering Contractors Advisory Board is established as an advisory

2-14     board to the department.  The board is composed of six members

2-15     appointed by the commissioner.  A member holds office for a term of

2-16     two years, with three members' terms expiring February 1 each year.

2-17     The commissioner shall designate a member to serve as the board's

2-18     presiding officer.

2-19           (b)  Three of the members appointed under Subsection (a) of

2-20     this section must be plastering contractors eligible for a

2-21     certificate of registration under this Act who each have at least

2-22     10 years experience in the plaster industry.   The remaining three

2-23     members of the board shall represent the general public but must be

2-24     familiar with the plaster industry, including persons who work as

2-25     architects, as general contractors, and in the field of insurance.

2-26           (c)  The commissioner may remove a member of the board for

2-27     inefficiency or neglect of duty in office.  If a vacancy occurs on

 3-1     the board, the commissioner shall appoint a member who represents

 3-2     the same interests as the former member to serve for the unexpired

 3-3     term.

 3-4           (d)  The board shall meet at least twice each year at the

 3-5     call of the presiding officer at the place designated by the

 3-6     presiding officer.  A decision of the board is not valid unless

 3-7     supported by a majority of the members present at the meeting at

 3-8     which the decision is made.

 3-9           (e)  The board shall advise the commissioner in adopting

3-10     rules, setting fees, establishing registration renewal

3-11     requirements, and enforcing and administering this Act.

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           SECTION 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.

3-16     (a)  The commissioner shall issue a certificate of registration to

3-17     an applicant for registration as a plastering contractor  who

3-18     possesses the qualifications for a certificate of registration

3-19     required by this Act or a rule adopted under this Act.

3-20           (b)  The commissioner shall:

3-21                 (1)  adopt rules relating to issuing a certificate of

3-22     registration under this Act; and

3-23                 (2)  prescribe all forms required under this Act.

3-24           (c)  A certificate of registration issued under this Act is

3-25     valid for one year from the date of issuance.

3-26           SECTION 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a

3-27     certificate of registration under this Act, a person must apply on

 4-1     a form prescribed by the commissioner and pay any application and

 4-2     registration fees required by the commission.  The applicant must

 4-3     show evidence of financial responsibility by posting a bond in an

 4-4     amount prescribed by the commissioner.

 4-5           (b)  An applicant under this Act shall provide proof that the

 4-6     person is covered by insurance by presenting a copy of the person's

 4-7     certificate of workers' compensation coverage or an equivalent

 4-8     certificate and proof of the person's general liability insurance

 4-9     coverage.  Proof of insurance coverage under this section must

4-10     include:

4-11                 (1)  the policy number and name of the insurer;

4-12                 (2)  the amounts of coverage;

4-13                 (3)  the effective date and expiration date of the

4-14     coverage; and

4-15                 (4)  the signature of the insurance agent providing

4-16     coverage.

4-17           (c)  An application under this section must be notarized and

4-18     contain the applicant's state identification number, if any, sales

4-19     tax number, and Internal Revenue Service employer identification

4-20     number.

4-21           (d)  The business name used by an applicant under this

4-22     section must be the same on all documents included with the

4-23     application.

4-24           (e)  The applicant shall provide the applicant's telephone

4-25     number and mailing address.  The applicant shall also provide the

4-26     address where the applicant is physically located if different from

4-27     the mailing address.

 5-1           (f)  If the applicant is a partnership or corporation, the

 5-2     application must include:

 5-3                 (1)  the name of each owner of the applicant firm; and

 5-4                 (2)  the name and signature of the individual who filed

 5-5     the application for the firm.

 5-6           SECTION 5.  FEES.  The commission by rule shall set

 5-7     application and registration fees under this Act.

 5-8           SECTION 6.  REGISTRATION RENEWAL; CONTINUING EDUCATION.  (a)

 5-9     A person holding a certificate of registration may renew the

5-10     certificate by:

5-11                 (1)  completing the renewal application form prescribed

5-12     by the commissioner;

5-13                 (2)  paying the renewal fee set by the commission;

5-14                 (3)  providing a new bond or a continuation certificate

5-15     for the existing bond that satisfies the requirements of Section

5-16     4(a) of this Act regarding evidence of financial responsibility;

5-17                 (4)  providing proof that the person satisfies the

5-18     workers' compensation insurance and liability insurance coverage

5-19     requirements under Section 4(b) of this Act; and

5-20                 (5)  providing proof that the person has satisfied the

5-21     continuing education and other renewal requirements adopted by the

5-22     commissioner.

5-23           (b)  To renew a certificate of registration under this

5-24     section, the person must present evidence that the person has

5-25     successfully completed not less than 10 hours of classroom study in

5-26     subjects required by the commissioner during the 12 months

5-27     preceding the date of renewal.

 6-1           (c)  A holder of a certificate of registration under this Act

 6-2     who fails to renew the certificate before the date the registration

 6-3     expires must pay a late fee set by the commission in addition to

 6-4     the other renewal requirements of this section.

 6-5           SECTION 7.  COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS.

 6-6     (a)  The commissioner shall enforce this Act.

 6-7           (b)  The department shall investigate allegations of

 6-8     violations of this Act.  The department may enter any place of

 6-9     business or other establishment at which alleged illegal activity

6-10     occurs during reasonable business hours and without advance notice.

6-11           SECTION 8.  SUSPENSION, REVOCATION, AND RENEWAL OF

6-12     REGISTRATION; REISSUANCE.  (a)  After a hearing, the commissioner

6-13     shall suspend or revoke a certificate of registration on a finding

6-14     that a person:

6-15                 (1)  made a material misstatement in an application for

6-16     a certificate of registration;

6-17                 (2)  wilfully disregarded or violated this Act or a

6-18     rule adopted under this Act;

6-19                 (3)  wilfully aided or abetted another in the violation

6-20     of this Act or a rule adopted under this Act;

6-21                 (4)  was convicted for a crime an essential element of

6-22     which is misstatement, fraud, or dishonesty, or a felony; or

6-23                 (5)  engaged in dishonorable or unethical conduct

6-24     likely to deceive, defraud, or harm the public.

6-25           (b)  The commissioner may reissue a certificate of

6-26     registration to a person whose certificate of registration has been

6-27     revoked if the person applies in writing to the department and

 7-1     shows good cause to justify reissuing the certificate of

 7-2     registration.

 7-3           SECTION 9.  PROHIBITED ACTS.  (a)  Except as provided by

 7-4     Subsection (c) of this section, a person may not engage in metal

 7-5     lathing, plastering, spray fireproofing, or the application of an

 7-6     exterior insulation finish system for compensation unless the

 7-7     person holds a plastering contractor certificate of registration

 7-8     under this Act.

 7-9           (b)  A person may not bid on or accept a prime contract to

7-10     engage in metal lathing, plastering, spray fireproofing, or the

7-11     application of an exterior insulation fire system unless the person

7-12     is registered as a plastering contractor under this Act.

7-13           (c)  Subsection (a) of this section does not apply to a

7-14     person who performs plastering contracting if:

7-15                 (1)  the person is a maintenance worker or maintenance

7-16     engineer who is a bona fide employee of the property owner, the

7-17     property lessee, or the management company managing the property

7-18     where the maintenance work is being performed;

7-19                 (2)  the work is performed in connection with the

7-20     business in which the person is employed; and

7-21                 (3)  the person and the person's employer do not engage

7-22     in the occupation of plastering contracting for the general public.

7-23           (d)  A person exempt from the registration requirements

7-24     imposed under this Act by Subsection (c) of this section may be

7-25     subject to any permit, inspection, or approval requirements

7-26     prescribed by a municipal ordinance.

7-27           SECTION 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person

 8-1     commits an offense if the person knowingly or intentionally acts as

 8-2     a plastering contractor without a certificate of registration under

 8-3     this Act.  An offense under this subsection is a Class A

 8-4     misdemeanor.

 8-5           (b)  A person who violates this Act or a rule adopted under

 8-6     this Act is subject to an administrative penalty assessed by the

 8-7     commission as provided by Section 17, Article 9100, Revised

 8-8     Statutes.

 8-9           SECTION 11.  TRANSITION.  In making the initial appointments

8-10     to the Plastering Contractors Advisory Board, the commissioner

8-11     shall designate three members for terms expiring on February 1,

8-12     1999, and three members for terms expiring on February 1, 2000.

8-13           SECTION 12.  EFFECTIVE DATE.  (a)  Except as provided by

8-14     Subsection (b) of this section, this Act takes effect September 1,

8-15     1997.

8-16           (b)  Sections 9 and 10 of this Act take effect March 1, 1998.

8-17           SECTION 13.  EMERGENCY.  The importance of this legislation

8-18     and the crowded condition of the calendars in both houses create an

8-19     emergency and an imperative public necessity that the

8-20     constitutional rule requiring bills to be read on three several

8-21     days in each house be suspended, and this rule is hereby suspended.