By Garcia                                             H.B. No. 1023
         76R4942 MXM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the registration of wall and ceiling contractors;
 1-3     providing penalties.
 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.  OFFENSE.  A person commits an offense if the person
5-13     knowingly or intentionally violates Section 7 of this article.  An
5-14     offense under this article is a Class C misdemeanor.
5-15           Sec. 9.  ADMINISTRATIVE PENALTY.  A person who violates this
5-16     article or a rule adopted under this article is subject to an
5-17     administrative penalty assessed by the commission as provided by
5-18     Section 17, Article 9100, Revised Statutes.
5-19           SECTION 2.  The commissioner of licensing and regulation and
5-20     the Texas Commission of Licensing and Regulation shall adopt rules
5-21     under Article 9034, Revised Statutes, as added by this Act, not
5-22     later than December 1, 1999.
5-23           SECTION 3.  (a)  Except as provided by Subsection (b) of this
5-24     section, this Act takes effect September 1, 1999.
5-25           (b)  Sections 7, 8, and 9, Article 9034, Revised Statutes, as
5-26     added by this Act, take effect March 1, 2000.
5-27           SECTION 4.  The importance of this legislation and the
 6-1     crowded condition of the calendars in both houses create an
 6-2     emergency and an imperative public necessity that the
 6-3     constitutional rule requiring bills to be read on three several
 6-4     days in each house be suspended, and this rule is hereby suspended.