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.

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