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).