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.