76R9965 JMM-F By Goolsby H.B. No. 1497 Substitute the following for H.B. No. 1497: By Goolsby C.S.H.B. No. 1497 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) "Commissioner" means the commissioner of licensing 1-7 and regulation. 1-8 (2) "Department" means the Texas Department of 1-9 Licensing and Regulation. 1-10 (3) "Exterior insulation finish system" means a 1-11 non-load-bearing, barrier wall, exterior cladding system that is 1-12 applied over insulation board and glass fiber reinforcing mesh with 1-13 both a base coat and a textured protective finish coat. 1-14 (4) "Metal lathing" means the art or skill of 1-15 installing support framing, backing, and related trims to serve as 1-16 a substrate to receive plaster. 1-17 (5) "Plastering" means the art or skill of applying 1-18 various wet materials over surfaces to produce both interior and 1-19 exterior walls, ceilings, and other surfaces in the construction 1-20 and remodeling of residential and commercial structures. The term 1-21 does not include taping, floating, installing, texturing, repairing 1-22 sheet rock, or applying acoustical material. 1-23 (6) "Plastering contractor" means a person who engages 1-24 in metal lathing, plastering, spray fireproofing, or the 2-1 application of an exterior insulation finish system for which the 2-2 person is required to hold a certificate of registration under this 2-3 Act. 2-4 (7) "Spray fireproofing" means the art or skill of 2-5 applying various materials to enhance the fire resistance of the 2-6 structural elements of a building. 2-7 (8) "Person" means an individual, partnership, or 2-8 corporation. 2-9 SECTION 2. ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES. 2-10 (a) The secretary of state shall issue a certificate of 2-11 registration to an applicant for registration as a plastering 2-12 contractor who possesses the qualifications for a certificate of 2-13 registration required by this Act or a rule adopted under this Act. 2-14 (b) The secretary of state shall: 2-15 (1) adopt rules relating to issuing a certificate of 2-16 registration under this Act; and 2-17 (2) prescribe all forms required under this Act. 2-18 (c) A certificate of registration issued under this Act is 2-19 valid for two years from the date of issuance. 2-20 SECTION 3. REGISTRATION REQUIREMENTS. (a) To qualify for a 2-21 certificate of registration under this Act, a person must apply on 2-22 a form prescribed by the secretary of state and pay any required 2-23 application and registration fees. The applicant shall provide 2-24 evidence of financial responsibility by posting a bond in the 2-25 amount of $10,000. 2-26 (b) An applicant under this Act shall provide proof that the 2-27 person is covered by insurance by presenting a copy of the person's 3-1 certificate of workers' compensation coverage or an alternative 3-2 certificate and proof of the person's general liability insurance 3-3 coverage. Proof of insurance coverage under this section must 3-4 include: 3-5 (1) the policy number and name of the insurer; 3-6 (2) the amounts of coverage; 3-7 (3) the effective date and expiration date of the 3-8 coverage; and 3-9 (4) the signature of the insurance agent providing 3-10 coverage. 3-11 (c) An application under this section must be notarized and 3-12 contain the applicant's state identification number, if any, sales 3-13 tax number, and Internal Revenue Service employer identification 3-14 number. 3-15 (d) The business name used by an applicant under this 3-16 section must be the same on all documents included with the 3-17 application. 3-18 (e) The applicant shall provide the applicant's telephone 3-19 number and mailing address. The applicant shall also provide the 3-20 address where the applicant is physically located if different from 3-21 the mailing address. 3-22 (f) If the applicant is a partnership or corporation, the 3-23 application must include: 3-24 (1) the name of each owner of the applicant; and 3-25 (2) the name and signature of the individual who filed 3-26 the application for the applicant. 3-27 SECTION 4. FEES. The secretary of state by rule shall set 4-1 application and registration fees under this Act in amounts 4-2 reasonable and necessary to cover the costs of administering this 4-3 Act. 4-4 SECTION 5. REGISTRATION RENEWAL. (a) A person holding a 4-5 certificate of registration may renew the certificate by: 4-6 (1) completing the renewal application form prescribed 4-7 by the secretary of state; 4-8 (2) paying the renewal fee set by the secretary of 4-9 state; 4-10 (3) providing a new bond or a continuation certificate 4-11 for the existing bond that satisfies the financial responsibility 4-12 requirements of Section 3(a) of this Act; and 4-13 (4) providing proof that the person satisfies the 4-14 workers' compensation insurance and liability insurance coverage 4-15 requirements under Section 3(b) of this Act. 4-16 (b) A holder of a certificate of registration under this Act 4-17 who fails to renew the certificate before the date the registration 4-18 expires must pay a late fee set by the secretary of state in 4-19 addition to the other renewal requirements of this section. 4-20 SECTION 6. COMMISSIONER AND DEPARTMENT DUTIES; 4-21 INVESTIGATIONS. (a) The commissioner shall enforce this Act. 4-22 (b) The department shall investigate allegations of 4-23 violations of this Act. The department during reasonable business 4-24 hours and without advance notice may enter any place of business or 4-25 other establishment in which illegal activity is alleged to be 4-26 occurring. 4-27 SECTION 7. SUSPENSION, REVOCATION, AND RENEWAL OF 5-1 REGISTRATION; REISSUANCE. (a) After a hearing, the commissioner 5-2 shall recommend that the secretary of state suspend or revoke a 5-3 certificate of registration on a finding that a person: 5-4 (1) made a material misstatement in an application for 5-5 a certificate of registration; 5-6 (2) wilfully disregarded or violated this Act or a 5-7 rule adopted under this Act; or 5-8 (3) wilfully aided or abetted another in the violation 5-9 of this Act or a rule adopted under this Act. 5-10 (b) The secretary of state may reissue a certificate of 5-11 registration to a person whose certificate of registration has been 5-12 revoked if the person applies in writing and shows good cause to 5-13 justify reissuing the certificate of registration. 5-14 SECTION 8. PROHIBITED ACTS. (a) Except as provided by 5-15 Subsection (c) of this section, a person may not engage in metal 5-16 lathing, plastering, spray fireproofing, or the application of an 5-17 exterior insulation finish system for compensation unless the 5-18 person holds a plastering contractor certificate of registration 5-19 under this Act. 5-20 (b) A person may not bid on or accept a prime contract to 5-21 engage in metal lathing, plastering, spray fireproofing, or the 5-22 application of an exterior insulation finish system unless the 5-23 person is registered as a plastering contractor under this Act. 5-24 (c) Subsection (a) of this section does not apply to a 5-25 person who performs plastering contracting if: 5-26 (1) the person is a maintenance worker or maintenance 5-27 engineer who is a bona fide employee of the property owner, the 6-1 property lessee, or the management company managing the property 6-2 where the maintenance work is being performed; 6-3 (2) the work is performed in connection with the 6-4 business in which the person is employed; and 6-5 (3) the person and the person's employer do not engage 6-6 in the occupation of plastering contracting for the general public. 6-7 (d) A person exempt from the registration requirements 6-8 imposed under this Act by Subsection (c) of this section may be 6-9 subject to any permit, inspection, or approval requirements 6-10 prescribed by a municipal ordinance. 6-11 SECTION 9. OFFENSE; ADMINISTRATIVE PENALTY. (a) A person 6-12 commits an offense if the person knowingly or intentionally acts as 6-13 a plastering contractor in violation of this Act. An offense under 6-14 this subsection is a Class C misdemeanor. 6-15 (b) A person who violates this Act or a rule adopted under 6-16 this Act is subject to an administrative penalty assessed by the 6-17 commission of licensing and regulation, as provided by Section 17, 6-18 Article 9100, Revised Statutes, in the same manner as any other 6-19 person regulated by the department. 6-20 SECTION 10. EFFECTIVE DATE. (a) Except as provided by 6-21 Subsection (b) of this section, this Act takes effect September 1, 6-22 1999. 6-23 (b) Sections 8 and 9 of this Act take effect March 1, 2000. 6-24 SECTION 11. EMERGENCY. The importance of this legislation 6-25 and the crowded condition of the calendars in both houses create an 6-26 emergency and an imperative public necessity that the 6-27 constitutional rule requiring bills to be read on three several 7-1 days in each house be suspended, and this rule is hereby suspended.