By: Lindsay S.B. No. 1685 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to the requirement of registration of Construction 1-2 Contractors who engage in contracts with any governmental agency or 1-3 municipality within the State of Texas. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. This Act shall be known and may be cited as "The 1-6 Texas Contractors Licensing Act." 1-7 SECTION 1.1 It is the intent of the Legislature in order to 1-8 protect the public health, safety and welfare that this act shall 1-9 assure minimum standards of integrity, safety and quality in 1-10 construction projects that the privilege of public works 1-11 contractors be entrusted only to those persons duly licensed, 1-12 registered and practicing under the provisions of this Act and that 1-13 there be strict compliance with and enforcement of all the 1-14 provisions of this Act, and in order that the state and members of 1-15 the public may be able to identify those duly authorized to 1-16 participate in public works construction in this state and fix 1-17 responsibility for work done or services or acts performed in the 1-18 participation of public works construction only licensed and 1-19 registered persons shall participate, offer or attempt to 1-20 participate in public works construction or call themselves or be 1-21 otherwise designated as any kind of "public works contractor" or in 2-1 any manner make use of the term "public works contractor" as a 2-2 professional, business or commercial identification, title, name, 2-3 representation, claim or asset and all the provisions of this Act 2-4 shall be liberally construed and applied to carry out such 2-5 legislative intent. 2-6 SECTION 1.2 From and after the effective date of this Act, 2-7 unless duly licensed and registered in accordance with the 2-8 provisions of this Act, no person in this state shall: 2-9 (1) Participate, continue to participate, offer or 2-10 attempt to participate in "public works construction" or any branch 2-11 or part thereof. 2-12 (2) Receive any fee or compensation or the promise of 2-13 any fee or compensation for performing, offering or attempting to 2-14 perform any service, work which is any part of the participation of 2-15 "public works construction" as defined by this Act. 2-16 Within the intent and meaning and for all purposes of this Act, any 2-17 person, firm partnership, association or corporation which shall 2-18 do, offer or attempt to do any one or more of the acts or things 2-19 set forth in numbered paragraphs (1), (2), (3) or (4) of this 2-20 Section 1.2 shall be conclusively presumed and regarded as engaged 2-21 in the practice. 2-22 SECTION 1.3 Every person licensed by the Board to engage in 2-23 the practice of Public works contracting shall in the professional 2-24 use of his name on any sign, directory, listing, contract, 2-25 document, pamphlet, stationery, letterhead, advertisement, 3-1 signature or any other such means of professional identification, 3-2 written or printed, use the following "licensed public works 3-3 contractor". 3-4 SECTION 2. Definitions as used in this Act the term: 3-5 (1) "Board" shall mean the State Board of Licensing 3-6 for Public Works Contracting, provided for by this Act. 3-7 (2) "Certificate" shall mean a license issued by the 3-8 State of Texas granting a licensee the privilege of practicing 3-9 public works construction in accordance with the provisions of this 3-10 Act. 3-11 (3) "Licensed Public Works Contractor" shall mean a 3-12 person who has been duly licensed and registered by the Board to 3-13 engage in public works construction. 3-14 (4) Public works construction shall mean a contractor 3-15 with any governmental agency or municipality within the State of 3-16 Texas. 3-17 (5) "Licensed Public Works Contractor" shall mean any 3-18 person performing or doing, or offering or attempting to do or 3-19 perform any service, work, act or thing within the scope of this 3-20 Act. 3-21 SECTION 3. State Board of Licensing for Public Works 3-22 Contracting - Terms - A state Board of Licensing for Public Works 3-23 Contractors is hereby created whose duty it shall be to administer 3-24 the provisions of this Act. The Board shall be appointed by the 3-25 Governor of the State of Texas, with the advice and consent of the 4-1 Senate. The first Board shall be appointed within ninety (90) days 4-2 after this Act becomes effective. 4-3 SECTION 4. Qualifications of Members of Board - Each member 4-4 of the Board shall be a citizen of the United States and a resident 4-5 of this State for a period of ten (10) years prior to his 4-6 appointment and shall have been engaged in Public Works Contracting 4-7 for at least ten (10) years. 4-8 SECTION 5. Compensation and Expenses of Board Members shall 4-9 be determined by this Board. 4-10 SECTION 6. Removal of Members of the Board - Vacancies - The 4-11 Governor may remove any member of the Board for misconduct, 4-12 incompetency or neglect of duty. Vacancies in the membership of 4-13 this Board shall be filled for the unexpired term by appointment by 4-14 the Governor as provided in this Act. 4-15 SECTION 7. Organization and Meetings of the Board - Shall be 4-16 determined by the Board. 4-17 SECTION 8. Power of the Board - The Board shall have the 4-18 power and authority to make and enforce all rules and regulations 4-19 for the performance of its duties, to establish standards of 4-20 conduct and ethics for public works contractors in keeping with the 4-21 purpose and intent of this Act or to insure compliance with and 4-22 enforcement of this Act. 4-23 SECTION 8a. In any proceeding for injunction as provided in 4-24 Section 8 above the defendant may assert and prove as a complete 4-25 defense to such action that he was deprived of certification by the 5-1 Board by action or proceedings of the board which were 5-2 (1) arbitrary or a capricious 5-3 (2) contrary to legal requirements 5-4 (3) conducted without due process of law 5-5 SECTION 9. Receipts and Disbursements - The Secretary of the 5-6 Board shall receive and account for all moneys derived under the 5-7 provisions of this Act and shall pay the same weekly to the State 5-8 Treasurer who shall keep such moneys in a separate fund to be known 5-9 as the "Public Works Contractors Fund". 5-10 SECTION 10. Records and Reports - The Board shall keep a 5-11 record of its proceedings and register of all applications for 5-12 registration, which register shall show (a) the name, age and 5-13 residence of each applicant; (b) the date of the application; 5-14 (c) the place of business of such applicant (d) his qualifications; 5-15 (e) whether or not an examination was required; (f) whether the 5-16 applicant was rejected; (g) whether a certificate of registration 5-17 was granted; (h) the date of the action of the Board; and (I) such 5-18 other information as may be deemed necessary by the Board. 5-19 SECTION 11. Roster of Licensed Public Works Contractors - A 5-20 roster showing the names and places of business of all licensed 5-21 Public Works Contractors shall be prepared by the Secretary of the 5-22 Board at the same time each year to be determined by the Board. 5-23 SECTION 12. General requirements for Registration - To be 5-24 determined by the Board. 5-25 SECTION 13. Applications and Registration fees - Fees shall 6-1 be set by the Board and shall be sufficient to cover administrative 6-2 costs of the Contractors Licensing Board. 6-3 SECTION 14. Examinations - When oral or written examinations 6-4 are required, they shall be held at such time and place as the 6-5 Board shall determine. The scope of the examinations and the 6-6 methods of procedure shall be prescribed by the Board with special 6-7 reference to the applicants ability to insure the safety of life, 6-8 health and property. 6-9 SECTION 15. Certificate Seals - The Board shall issue a 6-10 certificate of licensing upon payment of registration fees as 6-11 provided for in this Act, to any applicant, who, in the opinion of 6-12 the Board has satisfactorily met all the requirements of this Act. 6-13 SECTION 16. Expiration and Renewal - Shall be determined by 6-14 the Board. 6-15 SECTION 17. Firms, Partnerships, Corporations and Joint 6-16 Stock Associations - Definition to be determined by the Board. 6-17 SECTION 18. Exemptions - To be determined by the Board. 6-18 SECTION 19. Reciprocity - The Board shall determine costs of 6-19 registrations. 6-20 SECTION 20. Revocations and Re-issuances of Certificates - 6-21 The Board shall have the power to revoke the certificate of license 6-22 of any registrant. The Board shall determine guidelines. 6-23 SECTION 21. Violations and Penalties - To be determined by 6-24 the Board. 6-25 SECTION 22. Invalid Portions - If any article, section, 7-1 subsection, sentence, clause or phrase of this Act is for any 7-2 reason held to be unconstitutional, such decision shall not affect 7-3 the validity of the remaining portions of this Act. The 7-4 Legislature hereby declares that it would have passed this Act and 7-5 such section, subsection, sentence, clause or phrase thereof 7-6 irrespective of the fact that any one or more of the sections, 7-7 subsections, sentences, clauses or phrases be declared 7-8 unconstitutional. 7-9 SECTION 23. The fact that there is at this time no law 7-10 requiring Public Works Contractors to be licensed, and the further 7-11 fact that there are a large number of persons calling themselves 7-12 Public Works Contractors who are not efficient; and the further 7-13 fact that the public is paying large sums of money for construction 7-14 and have no way of knowing the qualifications of the contractors 7-15 employed on these constructions and have no protection from this 7-16 incompetence create an emergency and an imperative public 7-17 necessity. 7-18 SECTION 24. The importance of this legislation and the 7-19 crowded condition of the calendars in both houses creates an 7-20 emergency and an imperative public necessity that the 7-21 constitutional rule requiring bills to be read on three several 7-22 days in each house be suspended, and this rule is hereby suspended.