By Goolsby H.B. No. 1497
76R5847 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) "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;
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 (4) was convicted for a crime an essential element of
5-11 which is misstatement, fraud, or dishonesty, or a felony; or
5-12 (5) engaged in dishonorable or unethical conduct
5-13 likely to deceive, defraud, or harm the public.
5-14 (b) The secretary of state may reissue a certificate of
5-15 registration to a person whose certificate of registration has been
5-16 revoked if the person applies in writing and shows good cause to
5-17 justify reissuing the certificate of registration.
5-18 SECTION 8. PROHIBITED ACTS. (a) Except as provided by
5-19 Subsection (c) of this section, a person may not engage in metal
5-20 lathing, plastering, spray fireproofing, or the application of an
5-21 exterior insulation finish system for compensation unless the
5-22 person holds a plastering contractor certificate of registration
5-23 under this Act.
5-24 (b) A person may not bid on or accept a prime contract to
5-25 engage in metal lathing, plastering, spray fireproofing, or the
5-26 application of an exterior insulation finish system unless the
5-27 person is registered as a plastering contractor under this Act.
6-1 (c) Subsection (a) of this section does not apply to a
6-2 person who performs plastering contracting if:
6-3 (1) the person is a maintenance worker or maintenance
6-4 engineer who is a bona fide employee of the property owner, the
6-5 property lessee, or the management company managing the property
6-6 where the maintenance work is being performed;
6-7 (2) the work is performed in connection with the
6-8 business in which the person is employed; and
6-9 (3) the person and the person's employer do not engage
6-10 in the occupation of plastering contracting for the general public.
6-11 (d) A person exempt from the registration requirements
6-12 imposed under this Act by Subsection (c) of this section may be
6-13 subject to any permit, inspection, or approval requirements
6-14 prescribed by a municipal ordinance.
6-15 SECTION 9. OFFENSE; ADMINISTRATIVE PENALTY. (a) A person
6-16 commits an offense if the person knowingly or intentionally acts as
6-17 a plastering contractor in violation of this Act. An offense under
6-18 this subsection is a Class C misdemeanor.
6-19 (b) A person who violates this Act or a rule adopted under
6-20 this Act is subject to an administrative penalty assessed by the
6-21 commission of licensing and regulation, as provided by Section 17,
6-22 Article 9100, Revised Statutes, in the same manner as any other
6-23 person regulated by the department.
6-24 SECTION 10. EFFECTIVE DATE. (a) Except as provided by
6-25 Subsection (b) of this section, this Act takes effect September 1,
6-26 1999.
6-27 (b) Sections 8 and 9 of this Act take effect March 1, 2000.
7-1 SECTION 11. EMERGENCY. The importance of this legislation
7-2 and the crowded condition of the calendars in both houses create an
7-3 emergency and an imperative public necessity that the
7-4 constitutional rule requiring bills to be read on three several
7-5 days in each house be suspended, and this rule is hereby suspended.