1-1 By: Carona S.B. No. 1580 1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read 1-3 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. 1580 By: Carona 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the regulation of plastering contractors; providing 1-11 penalties. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. DEFINITIONS. In this Act: 1-14 (1) "Board" means the Plastering Contractors Advisory 1-15 Board. 1-16 (2) "Commission" means the Texas Commission of 1-17 Licensing and Regulation. 1-18 (3) "Commissioner" means the commissioner of licensing 1-19 and regulation. 1-20 (4) "Department" means the Texas Department of 1-21 Licensing and Regulation. 1-22 (5) "Exterior insulation finish system" means a 1-23 non-load-bearing, barrier wall, exterior cladding system that is 1-24 applied over insulation board and glass fiber reinforcing mesh with 1-25 both a base coat and a textured protective finish coat. 1-26 (6) "Metal lathing" means the art or skill of 1-27 installing support framing, backing, and related trims to serve as 1-28 a substrate to receive plaster. 1-29 (7) "Plastering" means the art or skill of applying 1-30 various wet materials over surfaces to produce both interior and 1-31 exterior walls, ceilings, and other surfaces in the construction 1-32 and remodeling of residential and commercial structures. The term 1-33 does not include taping, floating, installing, texturing, or 1-34 repairing sheetrock or applying acoustical material. 1-35 (8) "Plastering contractor" means a person who engages 1-36 in metal lathing, plastering, spray fireproofing, or the 1-37 application of an exterior insulation finish system for which the 1-38 person is required to hold a certificate of registration under this 1-39 Act. 1-40 (9) "Spray fireproofing" means the art or skill of 1-41 applying various materials to enhance the fire resistance of the 1-42 structural elements of a building. 1-43 (10) "Person" means an individual, partnership, or 1-44 corporation. 1-45 SECTION 2. PLASTERING CONTRACTORS ADVISORY BOARD. (a) The 1-46 Plastering Contractors Advisory Board is established as an advisory 1-47 board to the department. The board is composed of six members 1-48 appointed by the commissioner. A member holds office for a term of 1-49 two years, with three members' terms expiring February 1 each year. 1-50 The commissioner shall designate a member to serve as the board's 1-51 presiding officer. 1-52 (b) Three of the members appointed under Subsection (a) of 1-53 this section must be plastering contractors eligible for a 1-54 certificate of registration under this Act who each have at least 1-55 10 years experience in the plaster industry. The remaining three 1-56 members of the board shall represent the general public but must be 1-57 familiar with the plaster industry, including persons who work as 1-58 architects, as general contractors, and in the field of insurance. 1-59 (c) The commissioner may remove a member of the board for 1-60 inefficiency or neglect of duty in office. If a vacancy occurs on 1-61 the board, the commissioner shall appoint a member who represents 1-62 the same interests as the former member to serve for the unexpired 1-63 term. 1-64 (d) The board shall meet at least twice each year at the 2-1 call of the presiding officer at the place designated by the 2-2 presiding officer. A decision of the board is not valid unless 2-3 supported by a majority of the members present at the meeting at 2-4 which the decision is made. 2-5 (e) The board shall advise the commissioner in adopting 2-6 rules, setting fees, establishing registration renewal 2-7 requirements, and enforcing and administering this Act. 2-8 (f) A member is not entitled to compensation. Reimbursement 2-9 of members for expenses incurred for service on the board is 2-10 subject to Section 4, Article 6252-33, Revised Statutes. 2-11 SECTION 3. ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES. 2-12 (a) The commissioner shall issue a certificate of registration to 2-13 an applicant for registration as a plastering contractor who 2-14 possesses the qualifications for a certificate of registration 2-15 required by this Act or a rule adopted under this Act. 2-16 (b) The commissioner shall: 2-17 (1) adopt rules relating to issuing a certificate of 2-18 registration under this Act; and 2-19 (2) prescribe all forms required under this Act. 2-20 (c) A certificate of registration issued under this Act is 2-21 valid for one year from the date of issuance. 2-22 SECTION 4. REGISTRATION REQUIREMENTS. (a) To qualify for a 2-23 certificate of registration under this Act, a person must apply on 2-24 a form prescribed by the commissioner and pay any application and 2-25 registration fees required by the commission. The applicant must 2-26 show evidence of financial responsibility by posting a bond in an 2-27 amount prescribed by the commissioner. 2-28 (b) An applicant under this Act shall provide proof that the 2-29 person is covered by insurance by presenting a copy of the person's 2-30 certificate of workers' compensation coverage or an alternative 2-31 certificate and proof of the person's general liability insurance 2-32 coverage. Proof of insurance coverage under this section must 2-33 include: 2-34 (1) the policy number and name of the insurer; 2-35 (2) the amounts of coverage; 2-36 (3) the effective date and expiration date of the 2-37 coverage; and 2-38 (4) the signature of the insurance agent providing 2-39 coverage. 2-40 (c) An application under this section must be notarized and 2-41 contain the applicant's state identification number, if any, sales 2-42 tax number, and Internal Revenue Service employer identification 2-43 number. 2-44 (d) The business name used by an applicant under this 2-45 section must be the same on all documents included with the 2-46 application. 2-47 (e) The applicant shall provide the applicant's telephone 2-48 number and mailing address. The applicant shall also provide the 2-49 address where the applicant is physically located if different from 2-50 the mailing address. 2-51 (f) If the applicant is a partnership or corporation, the 2-52 application must include: 2-53 (1) the name of each owner of the applicant firm; and 2-54 (2) the name and signature of the individual who filed 2-55 the application for the firm. 2-56 SECTION 5. FEES. The commission by rule shall set 2-57 application and registration fees under this Act. 2-58 SECTION 6. REGISTRATION RENEWAL; CONTINUING EDUCATION. 2-59 (a) A person holding a certificate of registration may renew the 2-60 certificate by: 2-61 (1) completing the renewal application form prescribed 2-62 by the commissioner; 2-63 (2) paying the renewal fee set by the commission; 2-64 (3) providing a new bond or a continuation certificate 2-65 for the existing bond that satisfies the requirements of Subsection 2-66 (a) of Section 4 of this Act regarding evidence of financial 2-67 responsibility; 2-68 (4) providing proof that the person satisfies the 2-69 workers' compensation insurance and liability insurance coverage 3-1 requirements under Subsection (b) of Section 4 of this Act; and 3-2 (5) providing proof that the person has satisfied the 3-3 continuing education and other renewal requirements adopted by the 3-4 commissioner. 3-5 (b) To renew a certificate of registration under this 3-6 section, the person must present evidence that the person has 3-7 successfully completed not less than 10 hours of classroom study in 3-8 subjects required by the commissioner during the 12 months 3-9 preceding the date of renewal. 3-10 (c) A holder of a certificate of registration under this Act 3-11 who fails to renew the certificate before the date the registration 3-12 expires must pay a late fee set by the commission in addition to 3-13 the other renewal requirements of this section. 3-14 SECTION 7. COMMISSIONER AND DEPARTMENT DUTIES; INSPECTIONS. 3-15 (a) The commissioner shall enforce this Act. 3-16 (b) The department shall investigate allegations of 3-17 violations of this Act. The department may enter any place of 3-18 business or other establishment at which alleged illegal activity 3-19 occurs during reasonable business hours and without advance notice. 3-20 SECTION 8. SUSPENSION, REVOCATION, AND RENEWAL OF 3-21 REGISTRATION; REISSUANCE. (a) After a hearing, the commissioner 3-22 shall suspend or revoke a certificate of registration on a finding 3-23 that a person: 3-24 (1) made a material misstatement in an application for 3-25 a certificate of registration; 3-26 (2) wilfully disregarded or violated this Act or a 3-27 rule adopted under this Act; 3-28 (3) wilfully aided or abetted another in the violation 3-29 of this Act or a rule adopted under this Act; 3-30 (4) was convicted for a crime an essential element of 3-31 which is misstatement, fraud, or dishonesty, or a felony; or 3-32 (5) engaged in dishonorable or unethical conduct 3-33 likely to deceive, defraud, or harm the public. 3-34 (b) The commissioner may reissue a certificate of 3-35 registration to a person whose certificate of registration has been 3-36 revoked if the person applies in writing to the department and 3-37 shows good cause to justify reissuing the certificate of 3-38 registration. 3-39 SECTION 9. PROHIBITED ACTS. (a) Except as provided by 3-40 Subsection (c) of this section, a person may not engage in metal 3-41 lathing, plastering, spray fireproofing, or the application of an 3-42 exterior insulation finish system for compensation unless the 3-43 person holds a plastering contractor certificate of registration 3-44 under this Act. 3-45 (b) A person may not bid on or accept a prime contract to 3-46 engage in metal lathing, plastering, spray fireproofing, or the 3-47 application of an exterior insulation finish system unless the 3-48 person is registered as a plastering contractor under this Act. 3-49 (c) Subsection (a) of this section does not apply to a 3-50 person who performs plastering contracting if: 3-51 (1) the person is a maintenance worker or maintenance 3-52 engineer who is a bona fide employee of the property owner, the 3-53 property lessee, or the management company managing the property 3-54 where the maintenance work is being performed; 3-55 (2) the work is performed in connection with the 3-56 business in which the person is employed; and 3-57 (3) the person and the person's employer do not engage 3-58 in the occupation of plastering contracting for the general public. 3-59 (d) A person exempt from the registration requirements 3-60 imposed under this Act by Subsection (c) of this section may be 3-61 subject to any permit, inspection, or approval requirements 3-62 prescribed by a municipal ordinance. 3-63 SECTION 10. OFFENSE; ADMINISTRATIVE PENALTY. (a) A person 3-64 commits an offense if the person knowingly or intentionally acts as 3-65 a plastering contractor without a certificate of registration under 3-66 this Act. An offense under this subsection is a Class C 3-67 misdemeanor. 3-68 (b) A person who violates this Act or a rule adopted under 3-69 this Act is subject to an administrative penalty assessed by the 4-1 commission as provided by Section 17, Article 9100, Revised 4-2 Statutes. 4-3 SECTION 11. TRANSITION. In making the initial appointments 4-4 to the Plastering Contractors Advisory Board, the commissioner 4-5 shall designate three members for terms expiring on February 1, 4-6 1999, and three members for terms expiring on February 1, 2000. 4-7 SECTION 12. EFFECTIVE DATE. (a) Except as provided by 4-8 Subsection (b) of this section, this Act takes effect September 1, 4-9 1997. 4-10 (b) Sections 9 and 10 of this Act take effect March 1, 1998. 4-11 SECTION 13. EMERGENCY. The importance of this legislation 4-12 and the crowded condition of the calendars in both houses create an 4-13 emergency and an imperative public necessity that the 4-14 constitutional rule requiring bills to be read on three several 4-15 days in each house be suspended, and this rule is hereby suspended. 4-16 * * * * *