By Goolsby                                              H.B. No. 85
         76R1980 JMM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the registration 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, installing, texturing, repairing
 2-2     sheet rock or applying acoustical material.
 2-3                 (8)  "Plastering contractor" means a person who engages
 2-4     in metal lathing, plastering, spray fireproofing, or the
 2-5     application of an exterior insulation finish system for which the
 2-6     person is required to hold a certificate of registration under this
 2-7     Act.
 2-8                 (9)  "Spray fireproofing" means the art or skill of
 2-9     applying various materials to enhance the fire resistance of the
2-10     structural elements of a building.
2-11                 (10)  "Person" means an individual, partnership, or
2-12     corporation.
2-13           SECTION 2.  PLASTERING CONTRACTORS ADVISORY BOARD.  (a)  The
2-14     Plastering Contractors Advisory Board is established as an advisory
2-15     board to the department.  The board is composed of six members
2-16     appointed by the commissioner.  A member holds office for a term of
2-17     two years, with three members' terms expiring February 1 each year.
2-18     The commissioner shall designate a member to serve as the board's
2-19     presiding officer.
2-20           (b)  Three of the members appointed under Subsection (a) of
2-21     this section must be plastering contractors eligible for a
2-22     certificate of registration under this Act who each have at least
2-23     10 years' experience in the plaster industry.   The remaining three
2-24     members of the board shall represent the general public but must be
2-25     familiar with the plaster industry, including persons who work as
2-26     architects, as general contractors, and in the field of insurance.
2-27           (c)  The commissioner may remove a member of the board for
 3-1     inefficiency or neglect of duty in office.  If a vacancy occurs on
 3-2     the board, the commissioner shall appoint a member who represents
 3-3     the same interests as the former member to serve for the unexpired
 3-4     term.
 3-5           (d)  The board shall meet at least twice each year at the
 3-6     call of the presiding officer at the place designated by the
 3-7     presiding officer.  A decision of the board is not valid unless
 3-8     supported by a majority of the members present at the meeting at
 3-9     which the decision is made.
3-10           (e)  The board shall advise the commissioner in adopting
3-11     rules, setting fees, establishing registration renewal
3-12     requirements, and enforcing and administering this Act.
3-13           (f)  A member is not entitled to compensation.  Reimbursement
3-14     of members for expenses incurred for service on the board is
3-15     subject to Section 2110.004, Government Code.
3-16           SECTION 3.  ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES.
3-17     (a)  The commissioner shall issue a certificate of registration to
3-18     an applicant for registration as a plastering contractor  who
3-19     possesses the qualifications for a certificate of registration
3-20     required by this Act or a rule adopted under this Act.
3-21           (b)  The commissioner shall:
3-22                 (1)  adopt rules relating to issuing a certificate of
3-23     registration under this Act; and
3-24                 (2)  prescribe all forms required under this Act.
3-25           (c)  A certificate of registration issued under this Act is
3-26     valid for two years from the date of issuance.
3-27           SECTION 4.  REGISTRATION REQUIREMENTS.  (a)  To qualify for a
 4-1     certificate of registration under this Act, a person must apply on
 4-2     a form prescribed by the commissioner and pay any application and
 4-3     registration fees required by the commission.
 4-4           (b)  An applicant under this Act shall provide proof that the
 4-5     person is covered by insurance by presenting a copy of the person's
 4-6     certificate of workers' compensation coverage or an alternative
 4-7     certificate and proof of the person's general liability insurance
 4-8     coverage.  Proof of insurance coverage under this section must
 4-9     include:
4-10                 (1)  the policy number and name of the insurer;
4-11                 (2)  the amounts of coverage;
4-12                 (3)  the effective date and expiration date of the
4-13     coverage; and
4-14                 (4)  the signature of the insurance agent providing
4-15     coverage.
4-16           (c)  An application under this section must be notarized and
4-17     contain the applicant's state identification number, if any, sales
4-18     tax number, and Internal Revenue Service employer identification
4-19     number.
4-20           (d)  The business name used by an applicant under this
4-21     section must be the same on all documents included with the
4-22     application.
4-23           (e)  The applicant shall provide the applicant's telephone
4-24     number and mailing address.  The applicant shall also provide the
4-25     address where the applicant is physically located if different from
4-26     the mailing address.
4-27           (f)  If the applicant is a partnership or corporation, the
 5-1     application must include:
 5-2                 (1)  the name of each owner of the applicant; and
 5-3                 (2)  the name and signature of the individual who filed
 5-4     the application for the applicant.
 5-5           SECTION 5.  FEES.  The commission by rule shall set
 5-6     application and registration fees under this Act.
 5-7           SECTION 6.  REGISTRATION RENEWAL.  (a)  A person holding a
 5-8     certificate of registration may renew the certificate by:
 5-9                 (1)  completing the renewal application form prescribed
5-10     by the commissioner;
5-11                 (2)  paying the renewal fee set by the commission; and
5-12                 (3)  providing proof that the person satisfies the
5-13     workers' compensation insurance and liability insurance coverage
5-14     requirements under Section 4(b) of this Act.
5-15           (b)  A holder of a certificate of registration under this Act
5-16     who fails to renew the certificate before the date the registration
5-17     expires must pay a late fee set by the commission in addition to
5-18     the other renewal requirements of this section.
5-19           SECTION 7.  COMMISSIONER AND DEPARTMENT DUTIES;
5-20     INVESTIGATIONS.  (a)  The commissioner shall enforce this Act.
5-21           (b)  The department shall investigate allegations of
5-22     violations of this Act.
5-23           SECTION 8.  SUSPENSION, REVOCATION, AND RENEWAL OF
5-24     REGISTRATION; REISSUANCE.  (a)  After a hearing, the commissioner
5-25     shall suspend or revoke a certificate of registration on a finding
5-26     that a person:
5-27                 (1)  made a material misstatement in an application for
 6-1     a certificate of registration;
 6-2                 (2)  wilfully disregarded or violated this Act or a
 6-3     rule adopted under this Act;
 6-4                 (3)  wilfully aided or abetted another in the violation
 6-5     of this Act or a rule adopted under this Act;
 6-6                 (4)  was convicted for a crime an essential element of
 6-7     which is misstatement, fraud, or dishonesty, or a felony; or
 6-8                 (5)  engaged in dishonorable or unethical conduct
 6-9     likely to deceive, defraud, or harm the public.
6-10           (b)  The commissioner may reissue a certificate of
6-11     registration to a person whose certificate of registration has been
6-12     revoked if the person applies in writing to the department and
6-13     shows good cause to justify reissuing the certificate of
6-14     registration.
6-15           SECTION 9.  PROHIBITED ACTS.  (a)  Except as provided by
6-16     Subsections (c) and (e) of this section, a person may not engage in
6-17     metal lathing, plastering, spray fireproofing, or the application
6-18     of an exterior insulation finish system for compensation unless the
6-19     person holds a plastering contractor certificate of registration
6-20     under this Act.
6-21           (b)  A person may not bid on or accept a prime contract to
6-22     engage in metal lathing, plastering, spray fireproofing, or the
6-23     application of an exterior insulation finish system unless the
6-24     person is registered as a plastering contractor under this Act.
6-25           (c)  Subsection (a) of this section does not apply to a
6-26     person who performs plastering contracting if:
6-27                 (1)  the person is a maintenance worker or maintenance
 7-1     engineer who is a bona fide employee of the property owner, the
 7-2     property lessee, or the management company managing the property
 7-3     where the maintenance work is being performed;
 7-4                 (2)  the work is performed in connection with the
 7-5     business in which the person is employed; and
 7-6                 (3)  the person and the person's employer do not engage
 7-7     in the occupation of plastering contracting for the general public.
 7-8           (d)  A person exempt from the registration requirements
 7-9     imposed under this Act by Subsection (c) of this section may be
7-10     subject to any permit, inspection, or approval requirements
7-11     prescribed by a municipal ordinance.
7-12           (e)  Subsection (a) of this section does not apply to a
7-13     person who performs plastering without a certificate of
7-14     registration under this Act if the person obtains from the owner of
7-15     the building on which the plastering is being performed a signed
7-16     written disclosure stating explicitly that the owner understands
7-17     that the person who is performing plastering on the building is not
7-18     registered under this Act.
7-19           SECTION 10.  OFFENSE; ADMINISTRATIVE PENALTY.  (a)  A person
7-20     commits an offense if the person knowingly or intentionally acts as
7-21     a plastering contractor in violation of this Act.  An offense under
7-22     this subsection is a Class C misdemeanor.
7-23           (b)  A person who violates this Act or a rule adopted under
7-24     this Act is subject to an administrative penalty assessed by the
7-25     commission as provided by Section 17, Article 9100, Revised
7-26     Statutes.
7-27           SECTION 11.  TRANSITION.  In making the initial appointments
 8-1     to the Plastering Contractors Advisory Board, the commissioner
 8-2     shall designate three members for terms expiring on February 1,
 8-3     2001, and three members for terms expiring on February 1, 2002.
 8-4           SECTION 12.  EFFECTIVE DATE.  (a)  Except as provided by
 8-5     Subsection (b) of this section, this Act takes effect September 1,
 8-6     1999.
 8-7           (b)  Sections 9 and 10 of this Act take effect March 1, 2000.
 8-8           SECTION 13.  EMERGENCY.  The importance of this legislation
 8-9     and the crowded condition of the calendars in both houses create an
8-10     emergency and an imperative public necessity that the
8-11     constitutional rule requiring bills to be read on three several
8-12     days in each house be suspended, and this rule is hereby suspended.