By Haggerty H.B. No. 1077 77R709 MXM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the registration of locksmiths; providing penalties. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 10, Occupations Code, is amended by adding 1-5 Chapter 1705 to read as follows: 1-6 CHAPTER 1705. LOCKSMITHS 1-7 SUBCHAPTER A. GENERAL PROVISIONS 1-8 Sec. 1705.001. DEFINITIONS. In this chapter: 1-9 (1) "Certificate" means a certificate of registration 1-10 issued under this chapter. 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) "Locksmith" means a person who engages in the 1-16 business of installing or repairing locks and related security and 1-17 access control devices. 1-18 Sec. 1705.002. POWERS AND DUTIES OF COMMISSIONER. (a) The 1-19 commissioner shall enforce this chapter and may adopt rules 1-20 relating to enforcement requirements. 1-21 (b) The commissioner shall prescribe application forms for 1-22 certificates and shall design the certificates. 1-23 Sec. 1705.003. EXEMPTION. This chapter does not apply to a 1-24 person licensed by the Texas Commission on Private Security. 2-1 Sec. 1705.004. ELECTRONIC AVAILABILITY OF INFORMATION. The 2-2 commission shall work with the comptroller and otherwise take steps 2-3 to make available to the public, through the Internet, information 2-4 regarding the issuance, revocation, and suspension of certificates. 2-5 (Sections 1705.005-1705.050 reserved for expansion 2-6 SUBCHAPTER B. CERTIFICATE REQUIREMENTS 2-7 Sec. 1705.051. VOLUNTARY REGISTRATION. (a) The 2-8 certification program established under this chapter is voluntary. 2-9 A locksmith who wishes to hold a certificate must comply with this 2-10 chapter. 2-11 (b) Only a certificate holder may advertise that the person 2-12 is registered with the state as a locksmith. 2-13 Sec. 1705.052. APPLICATION ON FORM PRESCRIBED BY 2-14 COMMISSIONER. An application for a certificate must be made on a 2-15 form prescribed by the commissioner. 2-16 Sec. 1705.053. INDIVIDUAL APPLICATION FOR CERTIFICATE. (a) 2-17 To be eligible for a certificate, an individual must be a 2-18 locksmith. 2-19 (b) An individual's application must be notarized and 2-20 accompanied by: 2-21 (1) the applicant's: 2-22 (A) name; 2-23 (B) telephone number; and 2-24 (C) mailing address and, if different from the 2-25 mailing address, the address where the applicant's business is 2-26 located; 2-27 (2) the nonrefundable $75 application fee; 3-1 (3) evidence of the insurance coverage required by 3-2 this chapter; and 3-3 (4) a declaration that the person has not been 3-4 convicted of a felony. 3-5 Sec. 1705.054. CRIMINAL HISTORY RECORD CHECK REQUIRED. 3-6 Before issuing a certificate to an individual, the commission shall 3-7 verify, under Section 411.122, Government Code, that the individual 3-8 has not been convicted of a felony. 3-9 Sec. 1705.055. BUSINESS APPLICATION FOR CERTIFICATE. (a) A 3-10 business entity may apply for a certificate if the business entity 3-11 is owned by or employs an individual who is a certificate holder 3-12 and who will actively act as a locksmith contracting on behalf of 3-13 the applicant. An application under this section must be notarized 3-14 and accompanied by: 3-15 (1) the applicant's: 3-16 (A) name; 3-17 (B) telephone number; and 3-18 (C) mailing address and, if different from the 3-19 mailing address, the address where the applicant's business is 3-20 located; 3-21 (2) a statement of the form of the business entity 3-22 that includes the name of each owner of the applicant; 3-23 (3) the name, address, and location for service of 3-24 process on the business entity; 3-25 (4) the name, address, telephone number, and signature 3-26 of the individual certificate holder who owns or is employed by the 3-27 business entity; 4-1 (5) the nonrefundable $75 application fee; and 4-2 (6) evidence of the insurance coverage required by 4-3 this chapter. 4-4 (b) The business name used by an applicant under this 4-5 section must be the name used on all documents included with the 4-6 application. 4-7 Sec. 1705.056. EFFECT OF CRIMINAL CONVICTION. A person 4-8 convicted under Section 1705.253(a) is not eligible for a 4-9 certificate until the fifth anniversary of the date the conviction 4-10 becomes final. 4-11 Sec. 1705.057. INSURANCE REQUIREMENT. (a) Each certificate 4-12 holder shall maintain general liability insurance coverage with a 4-13 minimum value of $50,000 for each occurrence, whether the claim 4-14 arises out of negligence or breach of contract. 4-15 (b) Each applicant for a certificate and each certificate 4-16 holder shall provide to the commissioner a document issued by the 4-17 person's insurer, signed by the insurer or the insurer's agent, 4-18 that states the following insurance policy information for that 4-19 applicant or holder: 4-20 (1) the name of the insurer; 4-21 (2) the policy number; 4-22 (3) the limits of coverage under the policy; 4-23 (4) the name of each insured under the policy; 4-24 (5) the policy term; and 4-25 (6) any cancellation clause applicable to the 4-26 coverage. 4-27 (Sections 1705.058-1705.100 reserved for expansion 5-1 SUBCHAPTER C. CERTIFICATE RENEWAL 5-2 Sec. 1705.101. ANNUAL RENEWAL. A certificate is valid for 5-3 one year after the date of issuance and may be renewed before its 5-4 expiration date on payment of a $50 renewal fee and compliance with 5-5 any renewal requirements adopted by rule by the commissioner. 5-6 (Sections 1705.102-1705.150 reserved for expansion 5-7 SUBCHAPTER D. PRACTICE BY CERTIFICATE HOLDER 5-8 Sec. 1705.151. BOND REQUIREMENT. If requested by a customer, 5-9 a certificate holder shall post a performance bond in the amount 5-10 requested by the customer, but not to exceed $25,000. 5-11 (Sections 1705.152-1705.200 reserved for expansion 5-12 SUBCHAPTER E. CERTIFICATE DENIAL AND DISCIPLINARY PROCEDURES 5-13 Sec. 1705.201. DENIAL, SUSPENSION, OR REVOCATION OF 5-14 CERTIFICATE. A violation of this chapter or a rule adopted under 5-15 this chapter is a ground for: 5-16 (1) the denial, suspension, or revocation of a 5-17 certificate; or 5-18 (2) the imposition of an administrative penalty under 5-19 Chapter 51. 5-20 Sec. 1705.202. SUSPENSION FOR FALSE INFORMATION ON 5-21 APPLICATION. (a) It is a ground for the suspension of a 5-22 certificate if an applicant for a certificate: 5-23 (1) negligently makes a material misstatement on an 5-24 application; or 5-25 (2) makes a nonmaterial misstatement on an 5-26 application. 5-27 (b) A suspension period under this section may not exceed 6-1 six months. 6-2 (Sections 1705.203-1705.250 reserved for expansion 6-3 SUBCHAPTER F. CRIMINAL PENALTIES 6-4 Sec. 1705.251. COMPLICITY. A person may not aid or abet a 6-5 person to violate this chapter. 6-6 Sec. 1705.252. FALSE REPRESENTATION AS REGISTERED LOCKSMITH; 6-7 CRIMINAL PENALTY. (a) A person commits an offense if the person 6-8 knowingly represents that the person is registered as a locksmith 6-9 in this state without holding a certificate. 6-10 (b) An offense under this section is a Class A misdemeanor. 6-11 Sec. 1705.253. PROVIDING FALSE INFORMATION ON APPLICATION; 6-12 CRIMINAL PENALTIES. (a) A person commits an offense if the person 6-13 knowingly makes a material misstatement on an initial or renewal 6-14 application for a certificate. An offense under this subsection is 6-15 a Class B misdemeanor. 6-16 (b) A person commits an offense if, on an initial or renewal 6-17 application for a certificate, the person: 6-18 (1) makes, with criminal negligence, a material 6-19 misstatement; or 6-20 (2) knowingly makes a nonmaterial misstatement. 6-21 (c) An offense under Subsection (b) is a Class C 6-22 misdemeanor. 6-23 SECTION 2. (a) Except as provided by Subsection (b) of this 6-24 section, this Act takes effect January 1, 2002. 6-25 (b) Subchapter F, Chapter 1705, Occupations Code, as added 6-26 by this Act, takes effect June 1, 2002.