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


Office of House Bill AnalysisC.S.H.B. 1077
By: Haggerty
Licensing & Administrative Procedures
4/17/2001
Committee Report (Substituted)



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. C.S.H.B. 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, 1705.053, 1705.056, 1705.101,
and 1705.201, Occupations Code) of this bill. 

ANALYSIS

C.S.H.B. 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 (Sec. 1705.051). To be eligible for a certificate, an individual
must be a locksmith. The bill provides that an individual's application
must include specified information and a nonrefundable application fee not
to exceed $225 (Sec. 1705.053). The bill requires the Texas Commission of
Licensing and Regulation (commission) to verify that the individual has not
been convicted of a felony by conducting a criminal background check,
before issuing a certificate to an individual (Sec. 1705.054). 

C.S.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 (Sec.
1705.151). 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 authorizes the commissioner to adopt
rules to impose additional sanctions to protect the public (Sec. 1705.201).

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 renewal fee not to exceed $100 and
compliance with any renewal requirements adopted by rule by the
commissioner. The bill sets forth provisions for the renewal of a
certificate or the issuance of a new certificate after the expiration date
(Sec. 1705.101). The bill requires each certificate holder to maintain
general liability insurance coverage with a minimum value of $50,000 (Sec.
1705.056). 

C.S.H.B. 1077 prohibits a person from aiding or abetting a person to
violate the provisions relating to locksmith registration (Sec. 1705.202).
The bill provides that a person is subject to an administrative penalty if
the person knowingly represents that the person is registered as a
locksmith in this state without holding a certificate or knowingly makes a
material misstatement on an initial or renewal application for a
certificate (Secs. 1705.203 and 1705.204). A person convicted of a felony
is not eligible for a certificate until the fifth anniversary of the date
the person's voting rights were restored. The bill requires the
commissioner of licensing and regulation (commissioner) to revoke the
certificate of a certificate holder who is imprisoned as a result of a
felony conviction, felony community supervision revocation, parole
revocation, or revocation of mandatory supervision. The bill authorizes a
person convicted of a felony whose voting rights have been restored for at
least five years to apply for and receive a certificate if the commissioner
determines that issuing a certificate does not pose a threat to public
safety. The bill authorizes a person who is denied a certificate to appeal
the commissioner's determination (Sec. 1705.055). 

The bill requires the commissioner to enforce the registration of a
locksmith and authorizes the commissioner to adopt applicable rules. The
bill requires the commissioner to develop an identification numbering
system for certificates, cards, and other documents for the registration of
locksmiths. The bill authorizes the commission to prescribe fees for the
administration of functions that the commissioner may perform in
administering and enforcing the registration of locksmiths (Sec 1705.002).
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 (Sec. 1705.004). The registration of locksmiths does not apply
to a person licensed by the Texas Commission on Private Security (Sec.
1705.003).  

EFFECTIVE DATE

January 1, 2002.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1077 modifies the original bill by broadening the powers and
duties of the commissioner of licensing and regulation (commissioner) (Sec.
1705.002). The substitute provides that the application for a locksmith
certificate must be accompanied by a nonrefundable application fee not to
exceed $225, rather than a $75 application fee (Sec. 1705.053). The
substitute requires the commissioner to revoke the certificate of a person
imprisoned for specified reasons and authorizes the commissioner to
consider public safety before issuing a certificate to a person convicted
of a felony (Sec. 1705.055). The substitute increases the maximum annual
renewal fee to $100 and clarifies the late renewal process (Sec. 1705.101).
The substitute removes provisions relating to a business's application for
a certificate. The substitute removes provisions relating to the suspension
of a certificate on the basis of providing false information on an
application for a certificate. The substitute removes all criminal
penalties and provides for administrative penalties against a person who
knowingly represents that the person is  registered as a locksmith in this
state without holding a certificate or knowingly makes a material
misstatement on an initial or renewal application for a certificate (Secs.
1705.203 and 1705.204).