76R9970 MXM-D By Garcia H.B. No. 1023 Substitute the following for H.B. No. 1023: By Yarbrough C.S.H.B. No. 1023 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the registration of wall and ceiling contractors; 1-3 providing a penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 20, Title 132, Revised Statutes, is 1-6 amended by adding Article 9034 to read as follows: 1-7 Art. 9034. WALL AND CEILING CONTRACTORS 1-8 Sec. 1. DEFINITIONS. In this article: 1-9 (1) "Acoustical ceiling" means a suspended acoustical 1-10 ceiling system. 1-11 (2) "Commission" means the Texas Commission of 1-12 Licensing and Regulation. 1-13 (3) "Commissioner" means the commissioner of licensing 1-14 and regulation. 1-15 (4) "Department" means the Texas Department of 1-16 Licensing and Regulation. 1-17 (5) "Drywall" means interior and exterior gypsum board 1-18 products. 1-19 (6) "Person" includes an individual, corporation, 1-20 partnership, association, and any other legal entity. 1-21 (7) "Wall and ceiling contractor" means a person who 1-22 engages in installing interior light-gauge framing, drywall, or 1-23 acoustical ceilings. 1-24 Sec. 2. ISSUANCE OF CERTIFICATE OF REGISTRATION; TERM. (a) 2-1 The commission shall issue a certificate of registration to an 2-2 applicant for registration as a wall and ceiling contractor who 2-3 possesses the qualifications for a certificate established under 2-4 this article or a rule adopted under this article. 2-5 (b) A certificate of registration issued under this article 2-6 is valid for two years from the date of issuance. 2-7 Sec. 3. REGISTRATION REQUIREMENTS. (a) To qualify for a 2-8 certificate of registration under this article, a person must apply 2-9 on a form prescribed by the commissioner and pay any application 2-10 and registration fee required by the commission. An applicant must 2-11 show evidence of financial responsibility in the manner required by 2-12 the commissioner. The commissioner may require an applicant to 2-13 submit information regarding an applicant's: 2-14 (1) sales tax number; 2-15 (2) employer identification number, if any, assigned 2-16 by the Texas Workforce Commission, including a number assigned for 2-17 unemployment compensation purposes; 2-18 (3) federal tax identification number; 2-19 (4) filings with a county or a state regarding the 2-20 applicant's status as a business entity, including a filing 2-21 regarding an assumed name, corporation, or other business entity; 2-22 or 2-23 (5) local permits or licenses. 2-24 (b) An applicant under this article shall provide to the 2-25 commissioner a certificate of workers' compensation insurance 2-26 coverage or a certificate in a form acceptable to the commissioner 2-27 of a recognized alternative to workers' compensation insurance 3-1 coverage. An applicant shall also provide proof that the person is 3-2 covered by general liability insurance. Proof of insurance 3-3 coverage under this section must include: 3-4 (1) the policy number and name of the insurer; 3-5 (2) the amounts of coverage; 3-6 (3) the effective date and expiration date of the 3-7 coverage; 3-8 (4) the extent and type of coverage; and 3-9 (5) if the policy contains a cancellation clause 3-10 applicable to the coverage, the signature of the insurance agent. 3-11 (c) An application under this section must be notarized. 3-12 (d) The applicant shall provide to the commissioner the 3-13 applicant's telephone number and mailing address. The applicant 3-14 shall also provide the address of the physical location at which 3-15 the applicant engages in business as a wall and ceiling contractor 3-16 if that address is different from the applicant's mailing address. 3-17 (e) An applicant that is a business entity must include with 3-18 the applicant's application: 3-19 (1) the name of each owner of the business entity; and 3-20 (2) the name and signature of the individual who filed 3-21 the application for the business entity. 3-22 Sec. 4. REGISTRATION RENEWAL. (a) A person who holds a 3-23 certificate of registration may renew the certificate by: 3-24 (1) filing a renewal application with the 3-25 commissioner; 3-26 (2) paying the renewal fee; and 3-27 (3) providing proof to the commissioner that the 4-1 person satisfies any renewal requirements that the commissioner may 4-2 by rule adopt. 4-3 (b) A certificate holder who renews the certificate after 4-4 the date on which the registration expires shall pay a late fee set 4-5 by the commission in addition to satisfying the other renewal 4-6 requirements of this section. 4-7 Sec. 5. INVESTIGATIONS. The department shall investigate a 4-8 violation of this article. 4-9 Sec. 6. SUSPENSION, REVOCATION, AND RENEWAL OF REGISTRATION; 4-10 REISSUANCE. (a) After a hearing, the commissioner may impose an 4-11 administrative penalty, or suspend or revoke a person's certificate 4-12 of registration, if the person is found to have: 4-13 (1) made a material misstatement in an application for 4-14 a certificate of registration; 4-15 (2) wilfully disregarded or violated this article or a 4-16 rule adopted under this article; 4-17 (3) wilfully aided or abetted another person in the 4-18 violation of this article or a rule adopted under this article; 4-19 (4) been convicted of a crime, an essential element of 4-20 which is misstatement, fraud, or dishonesty, or a felony; or 4-21 (5) engaged in dishonorable or unethical conduct 4-22 intended to deceive, defraud, or harm the public. 4-23 (b) The commissioner may reissue a certificate of 4-24 registration to a person whose certificate of registration has been 4-25 revoked under Subsection (a) of this section if the person shows 4-26 good cause for the reissuance of the person's certificate. 4-27 Sec. 7. CERTIFICATE OF REGISTRATION REQUIRED; EXEMPTIONS. 5-1 (a) A person may not act as a wall and ceiling contractor for 5-2 compensation unless the person holds a certificate of registration 5-3 as a wall and ceiling contractor issued under this article. 5-4 (b) A person may not bid on or accept a contract to engage 5-5 in providing and installing light-gauge framing, drywall, or 5-6 acoustical ceilings unless the person is registered as a wall and 5-7 ceiling contractor under this article. 5-8 (c) This article does not apply to a wall and ceiling 5-9 contractor who bids or accepts a contract for work as a wall and 5-10 ceiling contractor on a single family, duplex, triplex, or 5-11 quadraplex residential home. 5-12 Sec. 8. ADMINISTRATIVE PENALTY. A person who violates this 5-13 article or a rule adopted under this article is subject to an 5-14 administrative penalty assessed by the commission as provided by 5-15 Section 17, Article 9100, Revised Statutes. 5-16 SECTION 2. The commissioner of licensing and regulation and 5-17 the Texas Commission of Licensing and Regulation shall adopt rules 5-18 under Article 9034, Revised Statutes, as added by this Act, not 5-19 later than December 1, 1999. 5-20 SECTION 3. (a) Except as provided by Subsection (b) of this 5-21 section, this Act takes effect September 1, 1999. 5-22 (b) Sections 7 and 8, Article 9034, Revised Statutes, as 5-23 added by this Act, take effect March 1, 2000. 5-24 SECTION 4. The importance of this legislation and the 5-25 crowded condition of the calendars in both houses create an 5-26 emergency and an imperative public necessity that the 5-27 constitutional rule requiring bills to be read on three several 6-1 days in each house be suspended, and this rule is hereby suspended.