81R6129 JAM-D By: Veasey H.B. No. 1653 A BILL TO BE ENTITLED AN ACT relating to issuance of an optional license for certain builders. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subtitle C, Title 16, Property Code, is amended to read as follows: SUBTITLE C. BUILDER REGISTRATION AND LICENSING SECTION 2. Subtitle C, Title 16, Property Code, is amended by adding Chapter 422 to read as follows: CHAPTER 422. OPTIONAL LICENSE Sec. 422.001. OPTIONAL LICENSE. (a) A person may act as a builder without holding a license issued under this chapter. (b) A person may not represent that the person is a licensed builder unless the person holds a license issued under this chapter. Sec. 422.002. APPLICATION FOR LICENSE. An applicant for an original or renewal license must submit an application on a form prescribed by the commission. Sec. 422.003. FEES. (a) The commission shall charge and collect license application and renewal fees in amounts reasonable and necessary to cover the cost of administering this chapter. (b) All fees paid to the commission under this section are nonrefundable. Sec. 422.004. ELIGIBILITY REQUIREMENTS. A person may not receive a license under this chapter unless the person, at the time of the application: (1) is at least 18 years of age; (2) maintains liability insurance in an amount set by the commission; (3) maintains at least $2,500 of working capital; (4) has a total cost of at least $500 on one or more projects; (5) has, within the 10 years preceding the date of the application, at least: (A) four years of building trade experience; or (B) two years of building trade experience and a four-year baccalaureate degree in accounting, business, mathematics, physics, economics, or another field of study approved by the commission; and (6) has passed an examination approved by the commission regarding: (A) business law; and (B) homebuilding laws, regulations, and ethics. Sec. 422.005. ISSUANCE OF LICENSE. (a) Not later than the 15th day after the date the commission receives an application from an applicant who meets the requirements of this chapter, the commission shall issue a license to the applicant. (b) The license remains in effect for the period prescribed by the commission if the license holder complies with this chapter and pays the appropriate renewal fees. Sec. 422.006. DENIAL OF LICENSE. (a) If the commission denies an application for an original license or a renewal license, the commission shall give written notice to the applicant not later than the 15th day after the date the commission receives the application. (b) The applicant may appeal the denial of the application if, on or before the 30th day after the date the applicant receives notice under this section, the applicant files a written request for a hearing before the commission. (c) The commission shall: (1) set a time and place for the hearing not later than the 30th day after the date the commission receives the notice of the appeal; and (2) give notice of the hearing to the applicant before the 15th day before the date of the hearing. (d) The hearings officer may grant a motion for continuance of the hearing on the request of the commission or either party. (e) The hearing shall be held before a hearings officer appointed by the commission. After the hearing, the hearings officer shall enter an appropriate order. (f) The commission shall adopt procedural rules under which a decision by a hearings officer under this section is subject to appeal to the commission. (g) A hearing under this section is governed by Chapter 2001, Government Code. Sec. 422.007. EXPIRATION OF LICENSE. (a) The commission may issue or renew a license for a period that does not exceed 24 months. (b) The commission by rule may adopt a system under which licenses expire on various dates throughout the year. The commission shall adjust the date for payment of renewal fees accordingly. (c) In a year in which the expiration date for a license is changed, the renewal fee payable shall be prorated on a monthly basis so that the license holder pays only that portion of the fee that is allocable to the number of months during which the license is valid. On renewal of the license on the new expiration date, the total renewal fee is payable. Sec. 422.008. RULES. The commission shall adopt rules necessary to implement this chapter. SECTION 3. This Act takes effect September 1, 2009.