78R3790 DLF-F
By:  Carona                                                       S.B. No. 1090
A BILL TO BE ENTITLED
AN ACT
relating to inspection, installation, repair, and maintenance of 
elevators, escalators, chairlifts, people movers, moving 
sidewalks, platform lifts, and related equipment; providing an 
administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 754, Health and Safety 
Code, is amended to read as follows:
SUBCHAPTER B.  INSPECTION, [AND] CERTIFICATION, REGISTRATION, AND
LICENSING
	Sec. 754.011.  DEFINITIONS.  In this subchapter:                               
		(1)  "Acceptance inspection" means an inspection 
performed at the completion of the initial installation or 
alteration of equipment and in accordance with the applicable ASME 
Code A17.1.
		(2)  "Accident" means an event involving equipment that 
results in death or serious bodily injury to a person.
		(3)  "Alteration" means a change in or modernization of 
existing equipment.  The term does not include maintenance, repair, 
replacement, or a cosmetic change that does not affect the 
operational safety of the equipment or diminish the safety of the 
equipment below the level required by the ASME Code A17.1, ASME Code 
A17.3, ASME Code A18.1, or ASCE Code 21, as applicable, at the time 
of alteration.
		(4)  "Annual inspection" means an inspection of 
equipment performed in a 12-month period in accordance with the 
applicable ASME Code A17.1, ASME Code A17.3, ASME Code A18.1, or 
ASCE Code 21.  The term includes an acceptance inspection performed 
within that period.
		(5)  "ASCE Code 21" means the American Society of Civil 
Engineers Code 21 for people movers operated by cables.
		(6)  "ASME Code A17.1" means the American Society of 
Mechanical Engineers Safety Code for Elevators and Escalators 
A17.1.
		(7) [(2)]  "ASME Code A17.3" means the 2002 American 
Society of Mechanical Engineers Safety Code for Elevators and 
Escalators A17.3.
		(8)  "ASME Code A18.1" means the American Society of 
Mechanical Engineers Safety Code for Platform Lifts and Stairway 
Chairlifts A18.1.
		(9) [(3)]  "Board" means the elevator advisory board. 
		(10) [(4)]  "Commission" means the Texas Commission of 
Licensing and Regulation.
		(11) [(5)]  "Commissioner" means the commissioner of 
licensing and regulation.
		(12)  "Contractor" means a person, other than an 
elevator mechanic licensed under Section 754.0172, engaged in the 
installation, repair, or maintenance of equipment.  The term does 
not include an elevator cab renovator licensed under Section 
754.0173 and engaged in activities authorized under that license or 
a person engaged in cleaning or any other work performed on 
equipment that does not affect the operational safety of the 
equipment or diminish the safety of the equipment below the level 
required by the ASME Code A17.1, ASME Code A17.3, ASME Code A18.1, 
or ASCE Code 21, as applicable.
		(13) [(6)]  "Department" means the Texas Department of 
Licensing and Regulation.
		(14)  "Equipment" means an elevator, escalator, 
chairlift, platform lift, automated people mover operated by 
cables, or moving sidewalk, or related equipment.
		(15)  "Industrial facility" means a facility to which 
access is primarily limited to employees of the facility.
		(16) [(7)]  "Qualified historic building or facility" 
means a building or facility that is:
			(A)  listed in or eligible for listing in the 
National Register of Historic Places; or
			(B)  designated as a Recorded Texas Historic 
Landmark or State Archeological Landmark.
		(17) [(8)]  "Related equipment" means:         
			(A)  automatic equipment that is used to move a 
person in a manner that is similar to that of an elevator, an [or] 
escalator, a chairlift, a platform lift, an automated people mover 
operated by cables, or [and includes] a moving sidewalk; and
			(B)  hoistways, pits, and machine rooms for 
equipment.              
		(18)  "Serious bodily injury" means a major impairment 
to bodily function or serious dysfunction of any bodily organ or 
part requiring medical attention.
		(19)  "Unit of equipment" means one elevator, 
escalator, chairlift, platform lift, automated people mover 
operated by cables, or moving sidewalk, or related equipment.
	Sec. 754.0111.  EXEMPTION.  (a)  This subchapter does not 
apply to [an elevator, escalator, or related] equipment in a 
private building owned by [for] a labor union, trade association, 
private club, or charitable organization that has two or fewer 
floors.
	(b)  This subchapter does not apply to an elevator located in 
a single-family dwelling, except as provided by Section 754.0141.
	Sec. 754.012.  ELEVATOR ADVISORY BOARD.  (a)  The elevator 
advisory board is composed of 13 [nine] members appointed by the 
governor [commissioner] as follows:
		(1)  a representative of the insurance industry or a 
certified elevator inspector;
		(2)  a representative of [elevator, escalator, and 
related] equipment constructors;
		(3)  a representative of owners or managers of a 
building [buildings] having fewer than six stories and having [an 
elevator, an escalator, or related] equipment;
		(4)  a representative of owners or managers of a 
building [buildings] having six stories or more and having [an 
elevator, an escalator, or related] equipment;
		(5)  a representative of [independent elevator, 
escalator, and related] equipment maintenance companies;
		(6)  a representative of [elevator, escalator, and 
related] equipment manufacturers;
		(7)  a licensed or registered engineer or architect
[representative of professional engineers or architects];
		(8)  five [a] public members [member]; and
		(9)  a public member with a physical disability.                              
	(b)  Each board member serves [Board members serve] at the 
will of the governor and, unless removed by the governor, until the 
member's successor is appointed by the governor [commissioner].
	(c)  The governor [commissioner] shall appoint a presiding 
officer of the board.
	(d)  The board shall meet at least twice each calendar year.                   
	(e)  A board member serves without compensation but is 
entitled to reimbursement for travel as provided for in the General 
Appropriations Act [and other necessary expenses incurred in 
performing duties under this subchapter].
	Sec. 754.013.  BOARD DUTIES.  To protect public safety and to 
identify and correct potential hazards, the board shall advise the 
commissioner on:
		(1)  the adoption of appropriate standards for the 
installation, alteration, operation, and inspection of [elevators, 
escalators, and related] equipment;
		(2)  the status of [elevators, escalators, and related] 
equipment used by the public in this state; [and]
		(3)  sources of information relating to equipment 
safety;            
		(4)  public awareness programs related to elevator 
safety, including programs for sellers and buyers of single-family 
dwellings with elevators, chairlifts, or platform lifts; and
		(5)  any other matter considered relevant by the 
commissioner.       
	Sec. 754.014.  STANDARDS ADOPTED BY COMMISSIONER.  (a)  The 
commissioner shall adopt standards for the installation, 
maintenance, alteration, operation, and inspection of [elevators, 
escalators, and related] equipment used by the public in:
		(1)  buildings owned or operated by the state, a 
state-owned institution or agency, or a political subdivision of 
the state; and
		(2)  buildings that contain [an elevator, an escalator, 
or related] equipment that is open to the general public, including 
a hotel, motel, apartment house, boardinghouse, church, office 
building, shopping center, or other commercial establishment.
	(b)  Standards adopted by the commissioner may not contain 
requirements in addition to the requirements in the ASME Code 
A17.1, [or] ASME Code A17.3, ASME Code A18.1, or ASCE Code 21. The 
standards must allow alteration of existing equipment if the 
alteration does not diminish the safety of the equipment below the 
level required by this subchapter at the time of alteration.
	(c)  Standards adopted by the commissioner must require 
[elevators, escalators, and related] equipment to comply with the 
installation requirements of the [following, whichever is the least 
restrictive:
		[(1)  the] ASME Code A17.1, ASME Code A18.1, or ASCE 
Code 21 that was in effect and applicable on the date of 
installation of the [elevators, escalators, and related] 
equipment[; or
		[(2)  an applicable municipal ordinance governing the 
installation of elevators, escalators, and related equipment that 
was in effect on the date of installation].
	(d)  Standards adopted by the commissioner must require 
[elevators, escalators, and related] equipment to comply with the 
installation requirements of the [1994] ASME Code A17.3 that 
contains minimum safety standards for all [elevators, escalators, 
and related] equipment, regardless of the date of installation.
	(e)  The [On written request, the] commissioner shall grant a 
delay for compliance with the applicable ASME Code A17.1, [or the 
1994] ASME Code A17.3, or ASME Code A18.1 until a specified time if 
compliance is not readily achievable, as that phrase is defined in 
the Americans with Disabilities Act (42 U.S.C. Section 12101 et 
seq.), or regulations adopted under that Act.  The accumulated 
total time of all delays may not exceed three years, except as 
provided by Subsection (f) or as allowed in the discretion of the 
commissioner.
	(f)  The [On written request, the] commissioner shall grant a 
delay until September 1, 2005, for compliance with the requirements 
for door restrictors or firefighter's service in the [1994] ASME 
Code A17.3 if those requirements were not included in the ASME Code 
A17.1 that was in effect on the date of installation [of the 
elevator, escalator, or related equipment] and the [that] equipment 
was not subsequently installed [by an owner of the elevator, 
escalator, or related equipment].
	(g)  The commissioner may grant a waiver of compliance from 
an applicable code requirement [with the applicable ASME Code A17.1 
or the 1994 ASME Code A17.3] if the commissioner finds that:
		(1)  the building in which the [elevator, escalator, or 
related] equipment is located is a qualified historic building or 
facility or the noncompliance is due to structural components of 
the building; [and]
		(2)  noncompliance will not constitute a significant 
threat to passenger safety; and
		(3)  noncompliance, with adequate alternative 
safeguards, will not constitute a significant threat to worker 
safety.
	(h)  The commissioner shall 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 the noncompliance does not pose imminent and 
significant danger.  The commissioner may grant a waiver of 
compliance with the firefighter's service provisions of the ASME 
Code A17.1 or the [1994] ASME Code A17.3 in an elevator that 
exclusively serves a vehicle parking garage in a building that:
		(1)  is used only for parking;                                                
		(2)  is constructed of noncombustible materials; and                          
		(3)  is not greater than 75 feet in height.                                   
	(i)  This subchapter does not apply to [an elevator, an 
escalator, or related] equipment in an industrial facility, or in a 
grain silo, radio antenna, bridge tower, underground facility, or 
dam, to which access is limited primarily [principally] to 
employees of or working in that facility or structure.
	(j)  [The commissioner may charge a reasonable fee as set by 
the commission for an application for waiver or delay.]  One 
application for a waiver or delay may contain all requests related 
to a unit of equipment [particular building].  A delay may not be 
granted indefinitely but must be granted for [to] a specified time 
not to exceed three years.
	(k)  For purposes of this section, the date of installation 
or alteration of equipment is the date that the owner of the real 
property entered into a contract for the installation or alteration 
of the [purchase of the elevators, escalators, or related] 
equipment. If that date cannot be established, the date of 
installation or alteration is the date of issuance of the municipal 
building permit under which the [elevators, escalators, or related] 
equipment was installed or altered [constructed] or, if a municipal 
building permit was not issued, the date that electrical 
consumption began for the construction of the building in which the 
[elevators, escalators, or related] equipment was installed.
	Sec. 745.0141.  STANDARDS FOR EQUIPMENT IN SINGLE-FAMILY 
DWELLINGS; REQUIRED INFORMATION.  (a)  Elevators, chairlifts, or 
platform lifts installed in a single-family dwelling on or after 
January 1, 2004, must comply with the ASME Code A17.1 or A18.1, as 
applicable, and must be inspected by a QEI-1 certified inspector 
after the installation is complete.  The inspector shall provide 
the dwelling owner a copy of the inspection report.
	(b)  The commissioner shall, before January 1, 2004, adopt 
rules containing minimum safety standards that must be used by 
QEI-1 certified inspectors when inspecting elevators, chairlifts, 
and platform lifts installed in single-family dwellings.
	(c)  A municipality may withhold a certificate of occupancy 
for a dwelling or for the installation of the elevator or chairlift 
until the owner provides a copy of the QEI-1 inspection report to 
the municipality.
	(d)  A contractor is not required to report to the department 
any information concerning equipment in a single-family dwelling or 
the contractor's work on the equipment.
	(e)  On completing installation of equipment in a 
single-family dwelling, a contractor shall provide the dwelling 
owner with relevant information, in writing, about use, safety, and 
maintenance of the equipment, including the advisability of having 
the equipment periodically and timely inspected by a QEI-1 
certified inspector.
	(f)  An inspection by a QEI-1 certified inspector of 
equipment in a single-family dwelling may be performed only at the 
request and with the consent of the owner. The owner of a 
single-family dwelling is not subject to Section 754.022, 754.023, 
or 754.024.
	Sec. 754.015.  RULES.  (a)  The commissioner by rule shall 
provide for:      
		(1)  an annual [the] inspection and certification of 
the [once each calendar year of elevators, escalators, and related] 
equipment covered by standards adopted under this subchapter;
		(2)  [the] enforcement of those standards;                   
		(3)  registration [the certification] of qualified 
[persons as] inspectors and contractors [for the purposes of this 
subchapter]; [and]
		(4)  licensure of elevator mechanics and elevator cab 
renovators;    
		(5)  the form of [the] inspection documents, contractor 
reports, [report] and certificates [certificate] of compliance;
		(6)  notification to building owners, architects, and 
other building industry professionals regarding the necessity of 
annually inspecting equipment;
		(7)  approval of continuing education programs for 
registered QEI-1 certified inspectors and licensed elevator 
mechanics; and
		(8)  standards of conduct for individuals who are 
licensed or registered under this subchapter.
	(b)  The commissioner by rule may not [require that]:         
		(1)  require inspections of equipment to [inspection] 
be made more often than every 12 months, except as provided by 
Subsection (c) [once per year of elevators, escalators, and related 
equipment];
		(2)  require persons to post a bond or furnish 
insurance or to have minimum experience or education as a condition 
of certification, registration, or licensure; [and]
		(3)  require inspection reports or certificates of 
compliance to be placed in locations other than one provided in 
Section 754.019(a)(4);
		(4)  require building owners to submit to the 
department proposed plans for equipment installation or 
alteration;
		(5)  prohibit a QEI-1 certified inspector who is 
registered with the department from inspecting equipment; or
		(6)  require an inspection report or certificate of 
compliance to be placed inside or immediately outside an elevator 
cab or escalator or in the lobby or hallways of a building.
	(c)  The commissioner by rule may require a reinspection or 
recertification of equipment if the equipment 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)  The commissioner by rule may charge a fee for:                     
		(1)  registering or renewing registration of an 
inspector, not to exceed $200;
		(2)  registering or renewing registration of a 
contractor, not to exceed $300;
		(3)  applying for a certificate of compliance, not to 
exceed $15 for each unit of equipment;
		(4)  filing an inspection report as required by Section 
754.019(a)(3), 30 days or more after the date the report is due, not 
to exceed $3 for each day the report remains not filed after the 
date the report is due;
		(5)  applying for a waiver or delay, not to exceed $100 
for each violation;
		(6)  applying for a license or license renewal, not to 
exceed $125;  
		(7)  applying for a 30-day temporary or emergency 
license or license renewal, not to exceed $125;
		(8)  reinstating an expired license in accordance with 
this subchapter, not to exceed $250;
		(9)  applying for approval of a continuing education 
program for licensed elevator mechanics or registered QEI-1 
inspectors, other than a program sponsored by the department, not 
to exceed $200;
		(10)  attending a continuing education program 
sponsored by the department for licensed elevator mechanics or 
registered QEI-1 inspectors, not to exceed $75; and
		(11)  applying for approval or certification of a 
long-term education program, not to exceed $500 [754.019(4)].
	Sec. 754.016.  INSPECTION DOCUMENTS [REPORT] AND 
CERTIFICATE OF COMPLIANCE.  (a)  An inspection report and a 
certificate of compliance required under this subchapter must cover 
each unit of [all elevators, escalators, and related] equipment [in 
a building or structure appurtenant to the building, including a 
parking facility, that are owned by the same person or persons].  
There shall be separate [only one] inspection reports [report] and 
certificates [one certificate] of compliance for each unit of 
equipment [building].
	(b)  An inspector shall date and sign an inspection report 
and shall issue the report to the building owner not later than the 
10th calendar day after the date of inspection.  [The inspection 
report shall be on forms designated by the commissioner.]
	(c)  The commissioner shall [date and sign a certificate of 
compliance and shall] issue a [the] certificate of compliance to 
the building owner if an application is submitted by the building 
owner with applicable fees and the application reflects that:
		(1)  the[. The certificate of compliance shall state 
that the elevators, escalators, and related] equipment has [have] 
been inspected by a certified inspector;
		(2)  the inspection report shows the equipment is [and 
found by the inspector to be] in compliance with the requirements of 
this chapter; and
		(3)  to the extent the report shows any noncompliance 
that does not pose an imminent and significant danger, the building 
owner:
			(A)  acknowledges the noncompliance will be 
remedied within a reasonable period, not later than six months 
following the date of the inspection report; or
			(B)  has been granted a waiver or delay for 
compliance by the commissioner[, except for any delays or waivers 
granted by the commissioner and stated in the certificate].
	Sec. 754.017.  CERTIFIED INSPECTORS.  (a)  In order to 
inspect equipment, an individual must:
		(1)  be registered [An inspector must register] with 
the department;
		(2)  attend educational programs approved by the 
department;         
		(3)  [and] be certified as a QEI-1 [an ASME-QEI-1] 
inspector by an organization accredited by the American Society of 
Mechanical Engineers; and
		(4)  pay all applicable fees.  [Any certification 
charges or fees shall be paid by the inspector.]
	(b)  [The commissioner may not by rule prohibit an ASME-QEI-1 
certified inspector who is registered with the department from 
inspecting under this subchapter an elevator, an escalator, or 
related equipment.]  A person assisting a certified inspector and 
working under the direct, on-site supervision of the inspector is 
not required to be [ASME-QEI-1] certified.
	(c)  A registration expires on the first anniversary of the 
date of issuance.
	(d)  A certified inspector may not be required to attend more 
than seven hours of continuing education during each licensing 
period.  [The commissioner may charge a $15 fee to certified 
inspectors for registering with the department.]
	Sec. 754.0171.  CONTRACTOR REGISTRATION.  (a)  A person may 
not install, repair, or maintain equipment without registering as a 
contractor with the department as required by this subchapter.
	(b)  A contractor shall submit an application for 
registration and pay appropriate fees to the department.  The 
registration application form may require information concerning 
the background, experience, or identity of the applicant.
	(c)  A registration expires on the first anniversary of the 
date of issuance.
	(d)  A person registering as a contractor under this 
subchapter shall submit to the department an initial report, not 
later than the 60th day following the application date, containing:
		(1)  the street address of each building or location at 
which the person performed installation, repair, alteration, or 
maintenance of equipment for the previous two years; and
		(2)  the name and mailing address of the building 
owner.             
	(e)  After the initial report required by Subsection (d), a 
contractor registered as required by this subchapter shall submit 
to the department a quarterly report containing:
		(1)  the street address of each building or location at 
which the contractor performed installation, repair, alteration, 
or maintenance of equipment not reported in the contractor's 
initial report to the department under Subsection (d); and
		(2)  the name and mailing address of the building 
owner.             
	(f)  Installation, repair, alteration, and maintenance 
standards for contractors must be consistent with ASME Code A17.1, 
ASME Code A17.3, ASME Code A18.1, and ASCE Code 21.
	Sec. 754.0172.  ELEVATOR MECHANIC LICENSE.  (a)  Except as 
provided by this section, an individual may not install, repair, 
wire, test, or maintain equipment without obtaining an elevator 
mechanic license or an emergency or temporary elevator mechanic 
license.
	(b)  An individual who is directly supervised by a licensed 
elevator mechanic on-site in a building or building complex is not 
required to be licensed under Subsection (a).  The commissioner may 
adopt rules listing the work activities an unlicensed individual 
may perform on equipment without being under the direct supervision 
of a licensed elevator mechanic.
	(c)  The commissioner shall adopt rules providing for the 
issuance of a 30-day emergency license and a  30-day temporary 
license.  The commissioner may waive any license examination 
requirement for an applicant with a valid license from another 
state that has a reciprocity agreement with this state.  An 
individual who applies for a temporary or emergency license or a 
license by reciprocity shall pay an application fee not to exceed 
$125 to the department.
	(d)  An applicant for an elevator mechanic license under 
Subsection (a) must be at least 18 years old.  The application must 
be in a form prescribed by the commissioner and must be verified and 
accompanied by:
		(1)  a statement of the applicant's practical 
experience, as described by Subsection (f);
		(2)  the examination fee; and                                          
		(3)  information about any felony conviction or 
deferred adjudication history of the applicant.
	(e)  Except as provided by this subsection, the commissioner 
shall issue an elevator mechanic license to an applicant who 
possesses the required qualifications, passes the appropriate 
examination, and pays the applicable license fee.  An applicant who 
fails an examination is eligible for reexamination on compliance 
with Subsection (d).
	(f)  The practical experience must be in the area of 
installation and repair of equipment.
	(g)  Unless the license has been suspended or revoked, the 
commissioner shall annually renew an elevator mechanic license on 
receipt of the applicable fee, the application for renewal, and 
proof of completion of continuing education requirements.  The 
commissioner shall adopt rules providing for reinstatement of a 
license on payment of the applicable fee if application for renewal 
is made not later than the 30th day after the date the license 
expires.
	(h)  The department may recognize and certify continuing 
education programs and long-term training programs for elevator 
mechanics.  A program provider shall pay the applicable fee to the 
department when applying for department approval of a program.
	(i)  The examination must primarily be on the subjects 
described by Subsection (f).  Not later than the 30th day after the 
date an examination is administered, the commissioner shall notify 
each examinee of the results of the examination.  If an examination 
is graded or reviewed by a national testing service, the 
commissioner shall notify examinees of the results of the 
examination not later than the 14th day after the date the 
commissioner receives the results from the testing service.  If the 
notice of an examination result is delayed for longer than 90 days 
after the examination date, the commissioner shall notify the 
examinee of the reason for the delay before the 90th day.
	(j)  The commissioner shall prepare and administer 
examinations and continuing education programs for licenses or 
certify other persons to perform those functions.  An elevator 
mechanic licensed under this subchapter must attend seven hours of 
required continuing education during each licensing period.
	Sec. 754.0173.  ELEVATOR CAB RENOVATOR LICENSE.  (a)  Except 
as provided by this section, an individual may not enter an elevator 
hoistway to make an evaluation in connection with renovation of an 
elevator cab or to renovate the interior of the cab without 
obtaining an elevator cab renovator license.
	(b)  A licensed elevator mechanic or an individual who is 
directly supervised by a person holding an elevator cab renovator 
license is not required to be licensed under Subsection (a).
	(c)  The commissioner may waive any license examination 
requirement for an applicant with a valid license comparable to an 
elevator mechanic license or elevator cab renovator license from 
another state that has a reciprocity agreement with this state.
	(d)  An applicant for an elevator cab renovator license under 
Subsection (a) must be at least 18 years old. The application must 
be in a form prescribed by the commissioner and must be verified and 
accompanied by:
		(1)  a statement of the applicant's practical 
experience, as described by Subsection (f);
		(2)  the examination fee; and                                          
		(3)  information about any felony conviction or 
deferred adjudication history of the applicant.
	(e)  Except as provided by this subsection, the commissioner 
shall issue an elevator cab renovator license to an applicant who 
possesses the required qualifications, passes the appropriate 
examination, and pays the applicable license fee.  An applicant who 
fails an examination is eligible for reexamination on compliance 
with Subsection (d).
	(f)  The practical experience must be in the safety aspects 
of lighting, glass, mirrors, fire retardant materials, weight 
factors, cab finish-out installation, and performance of any aspect 
of elevator cab renovation that involves stopping or securing an 
elevator or entering the hoistway of an elevator for cab renovation 
purposes.
	(g)  Unless the license has been suspended or revoked, the 
commissioner shall annually renew an elevator cab renovator license 
on receipt of the applicable fee and the application for renewal.  
The commissioner shall adopt rules providing for reinstatement of a 
license on payment of the applicable fee if application for renewal 
is made not later than the 30th day after the date the license 
expires.
	(h)  The examination must primarily be on the subjects 
described by Subsection (f).  Not later than the 30th day after the 
date an examination is administered, the commissioner shall notify 
each examinee of the results of the examination.  If an examination 
is graded or reviewed by a national testing service, the 
commissioner shall notify examinees of the results of the 
examination not later than the 14th day after the date the 
commissioner receives the results from the testing service.  If the 
notice of an examination result is delayed for longer than 90 days 
after the examination date, the commissioner shall notify the 
examinee of the reason for the delay before the 90th day and shall 
issue a temporary license, which shall be valid until the 
examination result is received.
	(i)  The commissioner shall prepare and administer 
examinations for licenses or certify other persons to perform those 
functions.
	Sec. 754.0174.  INSPECTION FEE.  [(a)  A person inspecting an 
elevator, an escalator, or related equipment under this subchapter 
may not charge more than $65 per elevator cab or per escalator for 
each inspection.
	[(b)]  The amount charged for an inspection or the 
performance of an inspection of equipment under this subchapter may 
not be contingent on the existence of a maintenance contract 
between the person performing the inspection and any other person.
	Sec. 754.018.  POWERS OF MUNICIPALITIES.  Subject to Section 
754.014(h), if [If] a municipality operates a program for the 
installation, maintenance, alteration, inspection, or [and] 
certification of [elevators, escalators, and related] equipment, 
this subchapter shall not apply to the [elevators, escalators, and 
related] equipment in that municipality, provided that the 
standards of installation, maintenance, alteration, inspection,
and certification are at least equivalent to [no less stringent 
than] those contained in this subchapter.
	Sec. 754.019.  DUTIES OF REAL PROPERTY OWNERS.  (a)  The 
owner of real property on which [an elevator, an escalator, or 
related] equipment covered by this subchapter is located shall:
		(1)  have the [elevator, escalator, or related] 
equipment inspected annually by a [an ASME-QEI-1] certified 
inspector [in accordance with the commissioner's rules];
		(2)  obtain an inspection report from the inspector 
evidencing that all [elevators, escalators, and related] equipment 
in a building on the real property was [were] inspected in 
accordance with this subchapter and rules adopted under this 
subchapter;
		(3)  file with the department the [commissioner a copy 
of each] inspection report for each unit of equipment, and all 
applicable fees, [and a $20 filing fee for each report, plus $5 for 
each elevator, escalator, or related equipment] not later than the 
60th day after the date on which an inspection is made under this 
subchapter;
		(4)  display the certificate of compliance or a copy of 
the certificate:
			(A)  in each [the] elevator mechanical room if the 
certificate relates to an elevator;
			(B)  in each [the] escalator box if the 
certificate relates to an escalator; or
			(C)  in a place designated by rule if related to 
equipment other than an elevator or escalator [the commissioner if 
the certificate relates to related equipment]; and
		(5)  display the inspection report at the locations 
designated in Subdivision (4) until a certificate of compliance is 
issued [by the commissioner].
	(b)  When an inspection report is filed [with the 
commissioner], the owner shall submit to the department, as 
applicable [commissioner]:
		(1)  verification that any deficiencies in the 
inspector's report have been remedied or that a bona fide contract 
to remedy the deficiencies has been entered into; or
		(2)  any application for delay or waiver of an 
applicable standard.         
	(c)  [An inspection must be made not later than 18 months 
after the previous calendar year's inspection.  This subsection 
does not affect the requirement that elevators, escalators, or 
related equipment be inspected at least once each calendar year.
	[(d)]  For the purpose of determining timely filing under 
Subsection (a)(3) and Section 754.016(b), an inspection report and 
filing fees [fee] are considered filed on the earlier of:
		(1)  the date of personal delivery;                             
		(2)  the date of postmark [mailing] by United States 
mail if properly addressed to the department; or
		(3)  the date of deposit with a commercial courier 
service, if properly addressed to the department [commissioner].
	(d)  [(e)  If the inspection report and fee required by 
Subsection (a)(3) are not timely filed, the commissioner may charge 
the owner of the real property on which the elevator, escalator, or 
related equipment is located an additional $100 fee for late 
filing.
	[(f)  The commissioner may not require that an inspection 
report or certificate of compliance be placed inside or immediately 
outside an elevator cab or escalator or in the lobby or hallways of 
a building.
	[(g)]  A fee may not be charged or collected for a 
certificate of compliance for an institution of higher education as 
defined in Section 61.003, Education Code.
	(e)  An owner shall report to the department each accident 
involving equipment not later than 72 hours following the accident.
	Sec. 754.020.  CHIEF ELEVATOR INSPECTOR [DEPOSIT OF FEES].  
The commissioner may appoint a chief elevator inspector to 
administer the equipment inspection and registration program.  The 
chief elevator inspector:
		(1)  may not have a financial or commercial interest in 
the manufacture, maintenance, repair, inspection, installation, or 
sale of equipment; and 
		(2)  must possess a QEI-1 certification or obtain the 
certification within six months after becoming chief inspector.
[Fees collected under this subchapter shall be deposited to the 
credit of an account in the general revenue fund that may be used by 
the commissioner only to administer and enforce this subchapter and 
to reimburse expenses of board members provided by this 
subchapter.]
	Sec. 754.021.  LIST OF REGISTERED INSPECTORS AND CONTRACTORS 
AND LICENSED ELEVATOR MECHANICS AND ELEVATOR CAB RENOVATORS [; 
PERSONNEL].  The commissioner shall [may]:
		(1)  compile a list of [ASME-QEI-1] certified 
inspectors and contractors who are registered with the department 
and elevator mechanics and elevator cab renovators who are licensed 
by the department [to perform an inspection under this subchapter]; 
and
		(2)  employ personnel who are [as] necessary to enforce 
this subchapter.
	Sec. 754.022.  NOTICE OF NONCOMPLIANCE.  If the department
[commissioner] learns of a situation of noncompliance under Section 
754.019, the department [commissioner] shall send notice by 
certified mail of the noncompliance and the actions required to 
remedy the noncompliance to the record owner of the real property on 
which the equipment that is the subject of the noncompliance is 
located.
	Sec. 754.023.  INVESTIGATION; REGISTRATION AND LICENSE 
PROCEEDINGS; INJUNCTION; EMERGENCY ORDERS.  (a)  If there is good 
cause [for the commissioner] to believe that [an elevator, an 
escalator, or related] equipment on real property poses an imminent 
and significant danger [is dangerous] or that an accident involving 
[an elevator, an escalator, or related] equipment occurred on the 
property and serious bodily injury or property damage resulted, a 
department employee [the commissioner] may enter the property 
during regular business hours after notice to the owner, operator, 
or person in charge of the property to inspect the [elevator, 
escalator, or related] equipment or investigate the danger or
accident at no cost to the owner.
	(b)  The department employee [commissioner] may enter real 
property during regular business hours after notice to the owner, 
operator, or person in charge of the property to verify, at no cost 
to the owner, whether an inspection report or certificate of 
compliance has been displayed as required under Section 754.019(a).
	(c)  The commissioner may deny, suspend, or revoke a license 
or [the] registration under this subchapter and may assess an 
administrative penalty [of any ASME-QEI-1 certified inspector] 
for:
		(1)  obtaining a license or registration [with the 
commissioner] by fraud or false representation;
		(2)  falsifying a [any inspection] report [submitted to 
the commissioner]; or
		(3)  violating this subchapter or a rule adopted under 
this subchapter.     
	(d)  Proceedings for the denial, suspension, or revocation 
of a license or registration and appeals from those proceedings are 
governed by Chapter 2001, Government Code (the Administrative 
Procedure Act).
	(e)  The commissioner is entitled to appropriate injunctive 
relief to prevent a violation or threatened violation of this 
subchapter or a rule adopted under this subchapter.
	(f) [(e)]  The commissioner may bring suit in a district 
court in Travis County or in the county in which the violation or 
threatened violation occurs.  If requested, the attorney general 
shall represent the department and its personnel [commissioner] in 
the suit.
	(g)  The commissioner may 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)  The commissioner may issue an emergency order with 
simultaneous notice and without hearing or with the notice and 
opportunity for hearing practicable under the circumstances.
	(i)  If an emergency order is issued under this section 
without a hearing, the commissioner shall set the time and place for 
a hearing to affirm, modify, or set aside the emergency order not 
later than the 10th day after the date the order was issued.
	(j)  An emergency order may direct a building owner or 
manager to disconnect power to or lock out equipment if:
		(1)  the department determines imminent and 
significant danger to passenger safety exists if action is not 
taken immediately and reasonable effort has been made for voluntary 
compliance by notification to the building owner or manager of the 
danger before the issuance of an emergency order; or
		(2)  an annual inspection has not been performed in 
more than two years and:
			(A)  the department gives the building owner or 
manager, or the agent of the building owner or manager, 60 days' 
written notice by certified mail directing the equipment to be 
inspected according to this subchapter; and
			(B)  after the expiration of the notice period 
under Paragraph (A), the department gives the building owner or 
manager, or the agent of the building owner or manager, written 
notice by certified mail stating that an order to disconnect power 
or lock out equipment will be made after the seventh day after the 
date notice is delivered.
	(k)  If an emergency order to disconnect power or lock out 
equipment is issued, the building owner or manager may have the 
power reconnected or the equipment unlocked only if:
		(1)  a registered inspector or contractor or a 
department representative has filed a written form with the 
department verifying the imminent and significant danger has been 
removed by repair, replacement, or other means; and
		(2)  the building owner, before the reconnection of 
power or unlocking of equipment, reimburses the department for all 
expenses incurred relating to the disconnection of power or 
lockout.
	(l)  The commissioner or the commissioner's designee may 
allow delayed payment if the building owner or manager commits in 
writing to pay the department for the expenses required by 
Subsection (k) not later than the 10th day after the date power is 
reconnected or equipment is unlocked.
	(m)  If an emergency order to disconnect power or lock out 
equipment is issued and the building owner later notifies the 
department that the imminent and significant danger no longer 
exists, the commissioner or the commissioner's designee shall, 
after the requirements of Subsection (k) are satisfied, promptly 
issue written permission to reconnect power or unlock the equipment 
and notify the owner.
	Sec. 754.024. CRIMINAL PENALTY.  (a)  A person commits an 
offense if the person receives notice of noncompliance under 
Section 754.022 and the person has not remedied the noncompliance 
or entered into a bona fide contract to remedy the noncompliance 
before the 61st day after the date on which the notice is received.
	(b)  An offense under this section is a Class C misdemeanor.                   
	(c)  Each day of an offense under Subsection (a)  constitutes 
a separate offense.
	Sec. 754.025.  APPLICATION OF CERTAIN LAW.  Chapter 53, 
Occupations Code, applies to a license or registration under this 
subchapter.
	SECTION 2.  (a)  This Act takes effect September 1, 2003, 
except that:       
		(1)  a contractor is not required to be registered 
under Section 754.0171, Health and Safety Code, as amended by this 
Act, before January 1, 2004;
		(2)  an individual is not required to be licensed under 
Section 754.0172, Health and Safety Code, as added by this Act, 
before January 1, 2004; and
		(3)  an escalator constructed before September 1, 2003, 
is not required to comply with step/skirt index requirements 
imposed under the 2002 American Society of Mechanical Engineers 
Safety Code for Elevators and Escalators A17.3 before September 1, 
2009.
	(b)  An applicant for an elevator mechanic license under 
Section 754.0172, Health and Safety Code,  as added by this Act, or 
an elevator cab renovator license under Section 754.0173, Health 
and Safety Code, as added by this Act, who has 36 months of 
practical experience at the time of application and who applies for 
the license not later than December 31, 2003, is not required to 
take the required examination.  The practical experience must be in 
the areas described by Section 754.0172 or Section 754.0173, as 
applicable.
	(c)  A member of the elevator advisory board serving on the 
effective date of this Act continues to serve until removed by the 
governor or until the member's successor is appointed by the 
governor.