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.