Elevator Contractors Penalties and Sanctions


Elevator Contractors (ELE)

Texas Health & Safety Code, Chapter 754

16 Texas Administration Code, Chapter 74

Cases against Contractors

Class A: (per unit of equipment)

1st Violation: Up to $1,000

2nd Violation: $500 to $3,000

3rd Violation: $1,000 to $3,000 and/or 6-month probated suspension to 1-year full suspension

Administrative and Reporting Violations

  • Failed to re-designate a responsible party within 30 days of the previous responsible party becoming unavailable 74.24(c)
  • Failed to retain a copy of the certificate of completion from a continuing education course 74.25(e)
  • Failed to notify Department within 30 days of changes to registrant information 74.72(j)
  • Failed to report to the Department and owner within 72 hours of discovering equipment that did not have a decal number 74.57(b)

Insurance Violations

  • Failed to file proof of insurance with the Department 74.40(c)
  • Failed to furnish insurance information to any customer who requests it 74.40(d)

Class B: (per unit of equipment)

1st Violation: $1,000 to $3,000 and/or up to 6-month probated suspension

2nd Violation: $1,500 to $4,000 plus 1-year probated suspension to 1-year full suspension

3rd Violation: $2,500 to $5,000 plus 1-year full suspension to revocation

Documentation Violations

  • Failed to provide the inspector a copy of the approved application and plans 74.78(b)
  • Failed to leave a copy of the approved application and plans in the required location 74.78(b)
  • Failed to provide required documents to owner when installing or altering equipment 74.79(a)
  • Failed provide owner with required documents as part of the contract to install or alter equipment 74.79(b)
  • Placed equipment into operation before an inspector verified required documents were on site 74.79(c)

Plan Review Violations

  • Failed to submit to the Department for review the application and plans of new equipment before beginning installation 74.110(a), 74.111(a)
  • Failed to submit to the Department for review the application and plans of existing equipment before beginning alterations 74.110(a), 74.112(a)
  • Failed to resubmit for approval changes to an approved application and plans 74.114(a)

Standards of Conduct Violations

  • Required the owner to sign a confidentiality or non-disclosure agreement in order to receive required documents 74.79(d)
  • Failed to accurately and truthfully represent to a prospective client the contractor's capabilities and qualifications, including the extent of prior education or experience 74.72(c), 74.72(f)(9)
  • Stated or implied to the building owner that the Department will grant a delay or waiver 74.72(f)(3)
  • Held self out as being engaged in a partnership or association when said partnership or association did not exist 74.72(f)(10)
  • Failed to withdraw from employment when required 74.72(h)
  • Failed to provide reasonable notice to client upon withdrawal 74.72(h)

Class C: (per unit of equipment)

1st Violation: $1,000 to $5,000 and/or 1-year probated suspension up to revocation

2nd Violation: $2,000 to $5,000 plus 1-year probated suspension to revocation

3rd Violation: $4,000 to $5,000 plus revocation

Insurance Violations

  • Failed to maintain general liability insurance 74.40(a)

Reporting Violations

  • Falsified a report submitted to the Executive Director 754.0232(a)(2)
  • Failed to notify the owner and department in writing within 24 hours of discovering equipment with a reportable condition 74.57(a)

Standards of Conduct Violations

  • Engaged in activity that constitutes dishonesty, misrepresentation, or fraud 74.72(c), 74.72(f)(4)
  • Engaged in acts or practices that constitute threats, coercion, or extortion 74.72(c)
  • Failed to maintain primary interest of ensuring compliance with the law and the ASME Safety Code or ASCE Standards 74.72(d)
  • Failed to avoid conflict of interest or the appearance of a conflict of interest 74.72(e)
  • Participated in a plan, scheme, or arrangement attempting or having at its purpose the evasion of any provision of the, law or the standards adopted by the Commission 74.72(f)(1)
  • Knowingly furnished inaccurate, deceitful, or misleading information to the Department, a building owner, or other person 74.72(f)(2)
  • Engaged in false, misleading, or deceptive advertising 74.72(f)(8)

Unlicensed Activity

  • Acted as a contractor without registering with the Department 754.0171(a), 74.22(a)

Safety Violations

  • Performed equipment installation, repair or maintenance in a negligent or incompetent manner 74.72(b), 74.72(f)(5)
  • Failed to apply for new technology variance before installing device, equipment or technology not permitted by current standards 74.120(a)

Class D: (per unit of equipment)

1st Violation: $5,000 and/or revocation

2nd Violation: $5,000 and/or revocation

3rd Violation: $5,000 and/or revocation

  • Violated a previous order of Commission or Executive Director 51.353(a), 74.90
  • Obtained or attempted to obtain a registration by fraud or false representation 754.0232(a)(1), 60.23(a)(1)
  • Failed to pay the Department for a dishonored payment 60.82