S.B. 1090 78(R)    BILL ANALYSIS


S.B. 1090
By: Carona
Licensing & Administrative Procedures
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the state's authority, through the Texas Department of
Licensing and Regulation (TDLR), to regulate and enforce elevator safety
and inspection requirements is limited. 

As proposed, S.B. 1090 creates a mechanism to regulate the registration of
professionals who work on elevators, sets forth inspection requirements,
and authorizes the commissioner of licensing and regulation to shut down
equipment operation through an emergency order.  


RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the [name of entity] in SECTION 1 (Section 745.0141, 745.015,
Health and Safety  Code) of this bill. 

ANALYSIS
Amends Chapter 754B, Health and Safety Code, is amended as follows:
SUBCHAPTER B. New heading: INSPECTION, CERTIFICATION, AND REGISTRATION
Sec. 754.011. DEFINITIONS. Defines "acceptance inspection," "accident,"
"alteration," "annual inspection," "ASCE Code 21," "ASME Code A18.1,"
"contractor," "equipment," "industrial facility," "serious bodily injury,"
and "unit of equipment." Redefines "ASME Code A17.3" and "related
equipment." Redesignates Subsection (2) as Subsection (7), Subsections (3)
- (5) as Subsections (9) - (11), Subsection (6) as Subsection (13), and
Subsections (7) - (8) as Subsections (16) - (17). Sec. 754.0111.
EXEMPTION. (a) Creates this subsection from existing text and deletes text
exempting an elevator, escalator, or related equipment from this
subchapter. Provides that this subchapter does not apply to equipment in a
private building owned by, rather than for, certain organizations. (b)
Exempts an elevator in a single-family dwelling from this subchapter,
except as provided by Section 754.0141 (Standards For Equipment In
Single-family Dwellings; Required Information). Sec. 754.012. ELEVATOR
ADVISORY BOARD. (a) Increases the number of members on the elevator
advisory board from nine to 13, and provides that the members be appointed
by the governor rather than commissioner of licensing and regulation
(commissioner). Provides in the prerequisites for board membership, that a
person need only own or manage one rather than multiple buildings.
Requires the board to include a licensed or registered engineer or
architect, rather than a representative of professional engineers or
architects, and increases the number of public members from one to five.
Makes conforming changes. (b) Provides that each board member serves at
the will of the governor and, unless removed thereby, until the member's
successor is appointed by the governor. Makes a conforming change. (c)
Makes a conforming change. (d) No change to this subsection. (e) Provides
that a board member is entitled to reimbursement for travel as provided
for in the General Appropriations Act. Deletes texts referring to
additional expenses that qualify for reimbursement. Sec. 754.013. BOARD
DUTIES. Requires the advisory board to advise the commissioner on certain
issues. Makes conforming and nonsubstantive changes. Sec. 754.014.
STANDARDS ADOPTED BY COMMISSIONER. (a) Makes conforming changes. (b)
Prohibits commissioner-adopted standards from containing requirements
additional to ASME Code A18.1 and ASCE Code 21, in addition to certain
other codes. Requires the standards to allow alteration of existing
equipment if it does not diminish the safety level below this subchapter's
requirements, at the time of alteration. (c) Deletes text providing that
equipment comply with the  least restrictive of certain codes. Includes
ASME Code A18.1 and ASCE Code 21 in the list of codes with which the
commissioner-adopted standards, which are applicable as well as in effect,
must comply in governing equipment installation. Makes a conforming and
nonsubstantive change. Deletes existing Subdivision (2). (d) Deletes the
specification that the ASME Code A17.3 referenced is the 1994 code. Makes
conforming changes. (e) Deletes the requirement of a written request for a
delay. Makes a conforming change. Prohibits the accumulated delay from
exceeding three years, except as provided by Subsection (f) or as allowed
by the commissioner's discretion. (f) Makes conforming and nonsubstantive
changes. (g) Authorizes the commissioner to grant a waiver of compliance
from an applicable code requirement, rather than citing specific codes, if
the commissioner finds that noncompliance, with adequate alternative
safeguards, will not constitute a significant threat to worker safety, in
addition to certain other findings. Makes conforming and nonsubstantive
changes. (h) Requires the commissioner to grant a waiver of compliance if
the noncompliance resulted from compliance with a municipal equipment
construction code at the time of the original installation, and does not
pose imminent and significant danger. Makes a conforming change. (i)
Exempts from this subchapter equipment in certain locations to which
access is limited primarily, rather than principally, to employees of or
working in that facility or structure. Makes a conforming change. (j)
Deletes text authorizing the commissioner to charge a certain fee.
Authorizes one application for a waiver or delay to contain all requests
related to a unit of equipment, rather than a particular building.
Requires a delay be granted for a specified time not to exceed three
years. (k) Provides that for the purposes of this section, the date of
installation or alteration of equipment, rather than just installation, is
the date that the owner of the real property entered into a contract for
the installation or alteration of the equipment, rather than the date of
purchase. Makes conforming changes. Sec. 745.0141. STANDARDS FOR EQUIPMENT
IN SINGLE-FAMILY DWELLINGS; REQUIRED INFORMATION. (a) Requires elevators,
chairlifts, or platform lifts installed in a single-family dwelling on or
after January 1, 2004, to comply with ASME Code A17.1 or A18.1, as
applicable, and to be inspected by a QEI-1 certified inspector after
installation. Requires the inspector to provide the owner a copy of the
inspection report. (b) Requires the commissioner to adopt rules, before
January 1, 2004, with required minimum safety standards to be used by
QEI-1 certified inspectors when inspecting certain equipment in
single-family dwellings. (c) Authorizes a municipality to withhold a
certificate of occupancy for a dwelling or the installation of certain
equipment until the owner provides a copy of the QEI-1 inspection report
to the municipality. (d) Provides that a contractor is not required to
report to the Texas Department of Licensing and Regulation (TDLR) any
information concerning equipment in a single-family dwelling or the
contractor's work on the equipment. (e) Requires a contractor to provide
the dwelling owner with certain information, upon completing installation
of equipment in a single-family dwelling. (f) Authorizes an inspection by
a QEI-1 certified inspector of equipment in a single-family dwelling only
at the owner's request and consent. Provides that the owner of a
single-family dwelling is not subject to Sections 754.022 (Notice of
Noncompliance), 754.023 (Investigation; Registration and License
Proceedings; Injunction; Emergency Orders) or 754.024 (Criminal Penalty).
Sec. 754.015. RULES. (a) Authorizes the commissioner to provide for, by
rule, certain activities. (b) Prohibits the commissioner, by rule, from
requiring or prohibiting certain activities. (c) Authorizes the
commissioner, by rule, to require a reinspection or recertification of
equipment if it has been altered and poses a significant threat to
passenger or worker safety, or if an annual inspection report indicates an
existing violation has continued longer than permitted in a delay granted
by the commissioner. (d) Authorizes the commissioner, by rule, to charge
certain fees. Sec. 754.016. New heading: INSPECTION DOCUMENTS AND
CERTIFICATE OF COMPLIANCE. (a) Requires an inspection report and a
certificate of compliance required under this subchapter to cover each
unit of equipment. Deletes text referring to specific items. Makes a
conforming change. Requires separate inspection reports, rather than only
one inspection report, and certificates of compliance for each unit of
equipment. Makes nonsubstantive changes. (b) Requires an inspector to
issue an inspection report to the building owner not later than the 10th
calendar day after the date of inspection. Deletes text referring to
commissioner-designated forms. (c) Requires the commissioner to issue, not
date and sign, a certificate of compliance to the building owner if an
application is submitted by the building owner with applicable fees and
the application reflects certain information. Sec. 754.017. CERTIFIED
INSPECTORS. (a) Requires certain prerequisites to be met in order for an
individual to inspect equipment. (b) Provides that a person assisting a
certified inspector and working under the direct, on-site supervision of
the inspector is not required to be certified, rather than ASME-QEI-1
certified.  Deletes text prohibiting the commissioner from prohibiting an
ASME-QEI-1 certified inspector from inspecting certain equipment. (c)
Provides that a registration expires on the first anniversary of the date
of issuance. (d) Prohibits a certified inspector from being required to
attend more than seven hours of continuing education during each licensing
period. Deletes text referring to a $15 fee. Sec. 754.0171. CONTRACTOR
REGISTRATION. (a) Prohibits a person from installing, repairing, or
maintaining equipment without registering as a contractor with TDLR as
required by this chapter. (b) Requires a contractor to submit an
application for registration and pay appropriate fees to TDLR. Authorizes
the registration application form to require certain information of the
applicant. (c) Provides that a registration expires on the first
anniversary of the date of issuance. (d) Requires a person registering as
a contractor under this subchapter to submit an initial report to TDLR,
not later than the 60th day following the application date, containing
certain information. (e) Requires a contractor registered as required by
this subchapter to submit to TDLR, after the initial report required by
Subsection (d), quarterly reports containing certain information. (f)
Requires installation, repair, alteration, and maintenance standards for
contractors to be consistent with certain codes. Sec. 754.0174. INSPECTION
FEE. Prohibits the amount charged for an inspection or the performance of
an inspection of equipment under this subchapter from being contingent on
the existence of a maintenance contract between the person performing the
inspection and any other person. Makes conforming and nonsubstantive
changes. Sec. 754.018. POWERS OF MUNICIPALITIES. Exempts from this
subchapter, subject to Section 751.014(h) (Standards Adopted By The
Commissioner), equipment in a municipality that operates a program for the
installation, maintenance, and alteration, in addition to inspection, or
certification of equipment; provided that the standards of installation,
maintenance, alteration, inspection, and certification are at least
equivalent to, rather than no less stringent than, those contained in this
subchapter. Sec. 754.019. DUTIES OF REAL PROPERTY OWNERS. (a) Requires the
owner of real property on which equipment is located to fulfill certain
duties. (b) Requires the owner to submit, as applicable, to TDLR, rather
than the commissioner, certain information upon filing an inspection
report. (c) Deletes text referring to an inspection timeline. Provides
that for the purpose of determining timely filing under Subsection (a)(3)
and Section 754.016(b) (Inspection Documents and Certificate of
Compliance), an inspection report and filing fees are considered filed on
the earlier of certain dates. Makes conforming and nonsubstantive changes.
(d) Deletes text referring to late fees and posting certificates of
compliance. Makes nonsubstantive changes. (e) Requires an owner to report
to TDLR each accident involving equipment, not later than 72 hours
following the accident. Sec. 754.020. New heading: CHIEF ELEVATOR
INSPECTOR. Authorizes the commissioner to appoint a chief elevator
inspector, subject to certain prerequisites, to administer the equipment
inspection and registration program. Sec. 754.021. New heading: LIST OF
REGISTERED INSPECTORS AND CONTRACTORS. Requires the commissioner to
perform certain duties. Sec. 754.022. NOTICE OF NONCOMPLIANCE.
Redesignates the duties related to noncompliance by real property owners
from the commissioner to TDLR. Sec. 754.023. New heading: INVESTIGATION;
REGISTRATION PROCEEDINGS; INJUNCTION; EMERGENCY ORDERS. (a) Authorizes a
TDLR employee to enter real property during regular business hours after
notice to certain people to inspect equipment or investigate the danger or
accident at no cost to the owner, if there is good cause to believe that
equipment on real property poses an imminent threat, rather than is
dangerous. Makes conforming changes. (b) Makes a conforming change. (c)
Authorizes the commissioner to deny, suspend, or revoke a registration,
under this subchapter and assess an administrative penalty for certain
activities. Deletes text referring to an ASME-QEI-1 certified inspector.
Makes conforming changes. (d) Provides that proceedings for certain
registration issues are governed by Chapter 2001, Government Code
(Administrative Procedure Act). (e) Creates this subsection from existing
text. (f) Requires the attorney general to represent TDLR and its
personnel, rather than the commissioner. Makes a nonsubstantive change.
(g) Authorizes the commissioner to issue an emergency order, as necessary,
to enforce this subchapter if the commissioner determines that an
emergency exists requiring immediate action to protect the public health
and safety. (h) Authorizes the commissioner to issue an emergency order
with simultaneous notice and without hearing or with the notice and
opportunity for hearing as practicable. (i) Requires the commissioner to
set the time and place for a hearing to take certain actions on the
emergency order, if an emergency order is issued under this section, not
later than the 10th day after the order was issued. (j) Authorizes an
emergency order to direct a building owner or manager to disconnect power
to or lock out equipment under certain circumstances. (k) Authorizes the
building owner or manager to have the power reconnected or the equipment
unlocked only under certain circumstances, if an emergency order to
disconnect power to or lock out equipment is issued. (l) Authorizes the
commissioner, or the designee thereof, to allow delayed payment if the
building owner or manager commits, in writing, to pay TDLR for the
expenses required by Subsection (k) not later than the 10th day after the
date power is reconnected or equipment is unlocked. (m) Requires the
commissioner, or the designee thereof, if an emergency order to disconnect
power to or lock out equipment is issued and the building owner later
notifies TDLR that the imminent and significant danger no longer exists,
to promptly issue written permission to reconnect power or unlock the
equipment and notify the owner, after the requirements of Subsection (k)
are satisfied. Sec. 754.024. CRIMINAL PENALTY. No changes in this section
Sec. 754.025. APPLICATION OF CERTAIN LAW. Provides that Chapter 53,
Occupations Code (Consequences of Criminal Conviction), applies to a
registration under this subchapter. 


EFFECTIVE DATE

September 1, 2003. Application of this Act prospective to January 1, 2004.
Application of this Act prospective to September 1, 2009, for an escalator
constructed before September 1, 2003. Application of this Act prospective
to a member of the elevator advisory board's removal by the governor or
until the member's successor is appointed by the governor.