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.