HBA-NRS H.B. 1077 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1077
By: Haggerty
Licensing & Administrative Procedures
4/3/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the state does not require locksmiths to be registered for
certification. Locksmiths across the state support the high standard and
quality of their profession by increasing their knowledge, experience, and
skill and encouraging the use of goods and services of their fellow
locksmiths. House Bill 1077 establishes provisions for the voluntary
registration of locksmiths.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of licensing and
regulation in SECTION 1 (Sections 1705.002 and 1705.101, Occupations Code)
of this bill. 

ANALYSIS

House Bill 1077 amends the Occupations Code relating to the registration of
locksmiths. The bill provides that the locksmith registration is voluntary,
and that a locksmith who wishes to hold a certificate of registration must
comply with registration requirements. The bill authorizes only a
certificate holder to advertise that the person is registered as a
locksmith. To be eligible for a certificate, an individual must be a
locksmith. The bill provides that an individual's application must be
notarized and accompanied by specified information and a $75 fee. The bill
requires the Texas Commission of Licensing and Regulation (commission) to
verify that the individual has not been convicted of a felony by examining
criminal history record information, before issuing a certificate to an
individual. 

In addition, the bill authorizes a business entity to apply for a
certificate if the business entity is owned by or employs an individual who
is a certificate holder and who will actively act as a locksmith
contracting on behalf of the applicant. An application must be notarized
and accompanied by specified information and a $75 fee. The bill provides
that the business name used by an applicant must be the name used on all
documents included with the application.   

H.B. 1077 requires the certificate holder to post a performance bond in the
amount requested by the customer, but not to exceed $25,000. The bill
provides that a violation of the locksmith's registration or a rule adopted
for locksmith registration is a ground for the denial, suspension, or
revocation of a certificate or the imposition of an administrative penalty.
The bill provides that it is also ground for the suspension of a
certificate if an applicant negligently makes a material or nonmaterial
misstatement on an application. The bill prohibits a suspension for
providing false information on an application from exceeding six months.  

The bill provides that a certificate is valid for one year after the date
of issuance and the bill authorizes the certificate to be renewed before
its expiration date on payment of a $50 renewal fee and compliance with any
renewal requirements adopted by rule by the commissioner. The bill requires
each certificate holder to maintain general liability insurance coverage
with a minimum value of $50,000. 

House Bill 1077 prohibits a person from aiding or abetting a person to
violate the provisions relating to locksmith registration. The bill
provides that a person commits a Class A misdemeanor if the person
knowingly represents that the person is registered as a locksmith in this
state without holding a certificate. A person convicted of such an offense
is not eligible for a certificate until the fifth anniversary of the date
the conviction becomes final. A person commits a Class B misdemeanor if the
person knowingly makes a material misstatement on an initial or renewal
application for a certificate. Finally, a person commits a Class C
misdemeanor if, on an initial or renewal application for a certificate, the
person makes, with criminal negligence, a material misstatement or
knowingly makes a nonmaterial misstatement. 

The bill requires the commissioner of licensing and regulation
(commissioner) to enforce the registration of a locksmith and authorizes
the commissioner to adopt rules relating to enforcement requirements. The
bill requires the commission to work with the comptroller and otherwise
take steps to make available to the public, through the Internet,
information regarding the issuance, revocation, and suspension of
certificates. The registration of locksmiths does not apply to a person
licensed by the Texas Commission on Private Security.  

EFFECTIVE DATE

January 1, 2002. Provisions related to criminal penalties take effect June
1, 2002.