HBA-ALS H.B. 1497 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1497 By: Goolsby Licensing & Administrative Procedures 3/16/1999 Introduced BACKGROUND AND PURPOSE Currently, a plastering contractor is not required to register with the state. There is a concern that some contractors are not paying appropriate taxes, purchasing sufficient liability and workers' compensation insurance, providing adequate work quality to their customers, or complying with certain fire and safety codes. H.B.1497 prohibits a person from engaging in metal lathing, plastering, spray fireproofing, or the application of an exterior insulation finish system for compensation without a plastering contractor certificate of registration (certificate). This bill requires the secretary of state to issue and adopt rules relating the issuance of a certificate. It also establishes requirements and procedures for the application, fees, renewal, suspension, revocation, and reissuance of a certificate. H.B. 1497 requires an applicant to post a $10,000 bond and provide proof of insurance to qualify for a certificate. This bill grants the commissioner of licensing and regulation enforcement powers and grants the Texas Department of Licensing and Regulation investigatory powers relating to this Act. Under H.B.1497, a person who knowingly and intentionally violates this Act commits a Class C misdemeanor and is subject to administrative penalties. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the secretary of state in SECTIONS 2 and 4 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. DEFINITIONS. Defines "commissioner," "department," "exterior insulation finish system," "metal lathing," "plastering," "plastering contractor," "spray fireproofing," and "person." SECTION 2. ISSUANCE OF CERTIFICATE OF REGISTRATION; RULES. Requires the secretary of state to issue a certificate of registration (certificate) as a plastering contractor to an applicant who has the required qualifications under this Act. Requires the secretary of state to adopt rules relating to the issuance of a certificate and to prescribe all forms under this Act. Provides that a certificate that is issued under this Act is valid for two years from the date of issuance. SECTION 3. REGISTRATION REQUIREMENTS. (a) Provides that a person must apply on a prescribed form and pay the required application and registration fees in order to qualify for a certificate under this Act. Requires the applicant to provide evidence of financial responsibility by posting a bond of $10,000. (b) Requires an applicant to present a copy of the applicant's certificate of workers' compensation coverage or an alternate certificate and proof of the person's general liability insurance coverage, which must include specified information. (c) Provides that an application must be notarized and include the applicant's state identification number, sales tax number, and Internal Revenue Service employer identification number. (d) Provides that the business name used by an applicant must be the same on all application documents. (e) Requires the applicant to provide the applicant's telephone number, mailing address, and physical address. (f) Provides that if the applicant is a partnership or corporation, the application must include the include the name of each owner of the applicant and the name and signature of the individual who filed the application for the applicant. SECTION 4. FEES. Requires the secretary of state, by rule, to set application and registration fees in amounts reasonable and necessary to cover the cost of administering this Act. SECTION 5. REGISTRATION RENEWAL. Authorizes a certificate holder to renew the certificate by specified procedures. Provides that a certificate holder who fails to renew the certificate before the registration expires must pay a late fee that is set by the secretary of state in addition to other renewal requirements. SECTION 6. COMMISSIONER AND DEPARTMENT DUTIES; INVESTIGATIONS. Requires the commissioner of licensing and regulation (commissioner) to enforce this Act. Requires the Texas Department of Licensing and Regulation (department) to investigate alleged violations of this Act and authorizes the department to enter a business or establishment in which illegal activity is alleged to be occurring during reasonable business hours and without advance notice. SECTION 7. SUSPENSION, REVOCATION, AND RENEWAL OF REGISTRATION; REISSUANCE. Requires the commissioner to recommend that the secretary of state suspend or revoke a certificate after a hearing is held at which the commission finds that the person has committed a specified act. Authorizes the secretary of state to reissue a revoked certificate if the certificate holder applies in writing and shows good cause justifying the reissuance. SECTION 8. PROHIBITED ACTS. (a) Prohibits a person from engaging in metal lathing, plastering, spray fireproofing, or the application of an exterior insulation finish system for compensation unless the person holds a plastering contractor certificate of registration under this Act, except as provided by Subsection (c) of this section. (b) Prohibits a person from bidding on or accepting a prime contract to engage in metal lathing, plastering, spray fireproofing, or the application of an exterior insulation finish system unless the person is registered as a plastering contractor under this Act. (c) Provides that Subsection (a) of this section does not apply to a person who performs plastering contracting if certain conditions are met. (d) Provides that a person who is exempt from the registration requirement of Subsection (c) of this section may be subject to a permit, inspection, or approval requirements prescribed by municipal ordinance. SECTION 9. OFFENSE; ADMINISTRATIVE PENALTY. Provides that a person commits a Class C misdemeanor if the person knowingly or intentionally acts as a plastering contractor in violation of this Act. Provides that a person who violates this act or a rule adopted pursuant to this Act is subject to an administrative penalty assessed by the commission pursuant to Section 17, Article 9100 (Department of Licensing and Regulation), V.T.C.S., in the same manner as any person regulated by the department. SECTION 10. EFFECTIVE DATE. Effective date: September 1, 1999. Provides that Sections 8 and 9 of this Act take effect March 1, 2000. SECTION 11. EMERGENCY. Emergency clause.