Texas House Bill HB1291

Texas 2009 - 81st Regular

Caption

Relating to regulation of certain disaster remediation contractors; providing penalties.

Impact

The legislation is significant as it introduces a systematic approach to addressing the often-chaotic landscape of disaster-related services. By creating a registry for contractors, the bill aims to eliminate fraudulent activities and ensure that residents receive quality service from reputable providers. It provides mechanisms for consumer complaints and outlines the enforcement actions that can be taken against contractors who fail to comply with the established regulations, including penalties for deceptive trade practices.

Summary

House Bill 1291 focuses on the regulation of disaster remediation contractors in Texas. The bill establishes a framework for defining disaster remediation services and the contractors who provide them, requiring that these individuals or entities register with the Texas Department of Insurance. This regulation aims to enhance consumer protection by ensuring that only qualified and registered contractors can offer disaster remediation services, which are particularly critical in the aftermath of natural disasters such as floods, hurricanes, or fires. The bill explicitly defines terms such as 'disaster remediation' and 'contract holder', establishing clarity in the services offered and the responsibilities of contractors.

Contention

While the bill has garnered support for its potential to safeguard consumers during vulnerable times, some may argue it could impose additional bureaucracy on legitimate contractors. Additionally, there may be concerns about the implementation of the registry and how it will affect small businesses or independent contractors who are crucial in disaster recovery efforts. However, the provision for penalties for non-compliance is seen as a necessary measure to maintain standards within the industry.