82R8345 SLB-D
By: Legler H.B. No. 2530
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of foundation repair contractors;
providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 6, Occupations Code, is
amended by adding Chapter 1003 to read as follows:
CHAPTER 1003. FOUNDATION REPAIR CONTRACTORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1003.001. SHORT TITLE. This chapter may be cited as
the Foundation Repair Contractors Act.
Sec. 1003.002. DEFINITIONS. In this chapter:
(1) "Advisory board" means the Foundation Repair
Contractors Advisory Board.
(2) "Chief administrator" means an individual
performing duties under Section 1003.106.
(3) "Commission" means the Texas Commission of
Licensing and Regulation.
(4) "Department" means the Texas Department of
Licensing and Regulation.
(5) "Executive director" means the executive director
of the department.
(6) "Foundation" means that portion of a structure
that serves the function of:
(A) supporting an overlying structure;
(B) providing a base for an overlying structure;
or
(C) transmitting loads from an overlying
structure to the underlying soils.
(7) "Foundation repair contracting" means performing
or offering to perform the design, installation, or construction
functions in connection with the repair or maintenance of a
foundation.
(8) "Foundation repair contractor" means an
individual or business engaged in foundation repair contracting for
the public.
(9) "Manager" means an individual who oversees
activities related to foundation repair contracting, including
foundation installation, foundation lifting, customer service,
sales, foundation design, or general business administration.
(10) "Mobile structure" means a structure that has
wheels attached for the purpose of moving the structure from one
location to another.
Sec. 1003.003. EXEMPTIONS. (a) This chapter does not apply
to:
(1) an individual homeowner who, without paid help,
repairs the foundation of the individual's residence;
(2) an individual licensed as an engineer under
Chapter 1001 who engages in foundation repair contracting in
connection with the business in which the individual is employed
but who does not engage in that work for the public; or
(3) an individual who engages in foundation repair
contracting for a mobile structure.
(b) An individual is not required to hold a license under
this chapter if the individual is engaged in foundation repair
under the supervision of a license holder under this chapter.
Sec. 1003.004. APPLICATION OF MUNICIPAL ORDINANCES.
Foundation repair contracting by an individual who is exempt under
this chapter remains subject to a permit, inspection, or approval
requirement established by a municipal ordinance.
[Sections 1003.005-1003.050 reserved for expansion]
SUBCHAPTER B. FOUNDATION REPAIR CONTRACTORS ADVISORY BOARD
Sec. 1003.051. ADVISORY BOARD MEMBERSHIP. The Foundation
Repair Contractors Advisory Board consists of:
(1) the executive director;
(2) the chief administrator; and
(3) seven members appointed by the presiding officer
of the commission, with the commission's approval.
Sec. 1003.052. APPOINTED MEMBERS. (a) Each appointed
advisory board member, other than the public member, must be
experienced in the design, installation, construction,
maintenance, service, repair, or modification of a foundation.
(b) The appointed members shall be appointed as follows:
(1) one member who is an official of a municipality;
(2) one member who is an engineer licensed by this
state;
(3) four members who are full-time licensed foundation
repair contractors, of whom two must be members of a statewide
foundation repair organization; and
(4) one member who represents the public and is not
affiliated with any foundation repair contracting company.
Sec. 1003.053. EX OFFICIO MEMBERS. The executive director
and the chief administrator shall serve as ex officio members. The
executive director and the chief administrator are nonvoting
members of the advisory board.
Sec. 1003.054. ADVISORY BOARD DUTIES. The advisory board
shall provide advice and recommendations to the department and
commission on technical matters relevant to the administration and
enforcement of this chapter, including examination content,
licensing standards, applicable fees, rules, and continuing
education requirements.
Sec. 1003.055. TERMS; VACANCY. (a) Appointed advisory
board members shall serve staggered six-year terms. The terms of
two or three appointed members expire on February 1 of each
odd-numbered year.
(b) If a vacancy occurs during an appointed member's term,
the presiding officer of the commission, with the commission's
approval, shall fill the vacancy for the remainder of the unexpired
term with an individual having the same qualifications as the
predecessor.
Sec. 1003.056. PRESIDING OFFICER. The presiding officer of
the commission, with the commission's approval, shall designate one
member of the advisory board to serve as presiding officer of the
board for a two-year term.
Sec. 1003.057. COMPENSATION; REIMBURSEMENT. An advisory
board member serves without compensation but is entitled to
reimbursement for actual and necessary expenses incurred in
performing functions as an advisory board member, as provided by
the General Appropriations Act.
Sec. 1003.058. MEETINGS. (a) The advisory board shall meet
at least once every six months and may meet at other times at the
call of the presiding officer of the board.
(b) The advisory board shall meet in this state at a place
designated by the board.
[Sections 1003.059-1003.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1003.101. GENERAL DUTIES. The commission shall
maintain a record of the commission's proceedings under this
chapter.
Sec. 1003.102. RULES. (a) The commission shall adopt rules
as necessary to implement this chapter.
(b) The rules must establish standards for the practice of
foundation repair at least as stringent as the standards provided
by:
(1) the Foundation Repair Association; or
(2) the Texas Section of the American Society of Civil
Engineers Guidelines for the Evaluation and Repair of Residential
Foundations, Version 2, adopted May 1, 2009.
Sec. 1003.103. INSURANCE REQUIREMENTS. (a) The commission
shall establish insurance requirements for a license holder under
this chapter.
(b) The commission may waive the insurance requirements for
a license holder who does not engage in foundation repair
contracting for the public.
Sec. 1003.104. CONTRACTS FOR ENFORCEMENT. The department
may contract with another state agency or political subdivision of
the state to enforce this chapter and rules adopted under this
chapter.
Sec. 1003.105. PERSONNEL. The department may employ
personnel necessary to administer this chapter.
Sec. 1003.106. CHIEF ADMINISTRATOR. (a) The chief
administrator is responsible for the administration of this chapter
under the direction of the department. The chief administrator
shall perform duties as prescribed by the department.
(b) The chief administrator is a full-time employee of the
department.
Sec. 1003.107. DIRECTORY OF LICENSE HOLDERS. (a) The
department shall maintain a directory of license holders and make
the directory available to the public.
(b) The department may sell the directory for a reasonable
fee set by the commission.
[Sections 1003.108-1003.150 reserved for expansion]
SUBCHAPTER D. LICENSE REQUIREMENTS
Sec. 1003.151. LICENSE REQUIRED. (a) An individual may not
engage in foundation repair contracting unless the individual holds
a license under this chapter.
(b) An individual who holds a license issued under this
chapter is not required to hold a license issued by a municipality
to engage in foundation repair contracting in the municipality.
Sec. 1003.152. LICENSE CLASSIFICATIONS. The department
shall issue master, journeyman, tradesman apprentice, and
apprentice foundation repair contractor licenses.
Sec. 1003.153. MASTER LICENSE. (a) A master license
entitles the license holder to engage in foundation repair
contracting.
(b) An applicant for a master license under this chapter
must:
(1) be at least 21 years of age;
(2) have at least 60 months of documented, practical
experience working in foundation repair contracting under the
supervision of a master license holder during the preceding seven
years;
(3) have a high school diploma or its equivalent; and
(4) pass an examination administered by the
department.
Sec. 1003.154. JOURNEYMAN LICENSE. (a) A journeyman
license entitles the license holder to engage in the design and sale
of foundation repair and of lifting, lowering, and adjusting
buildings under the supervision of a master license holder.
(b) An applicant for a journeyman license under this chapter
must:
(1) be at least 21 years of age;
(2) have at least 24 months of documented, practical
experience working in foundation repair contracting under the
supervision of a master license holder during the preceding five
years;
(3) have a high school diploma or its equivalent; and
(4) pass an examination administered by the
department.
Sec. 1003.155. TRADESMAN APPRENTICE LICENSE. (a) A
tradesman apprentice license entitles the license holder to engage
in providing an estimate or design for a foundation repair or for
the lifting, lowering, or adjusting of a building if the estimate or
design is reviewed and approved in writing by a master license
holder not later than the 10th business day after the date the
estimate or design is presented to a member of the public.
(b) An applicant for a tradesman apprentice license under
this chapter must:
(1) be at least 21 years of age;
(2) have a high school diploma or its equivalent; and
(3) pass an examination administered by the
department.
Sec. 1003.156. APPRENTICE LICENSE. (a) An apprentice
license entitles the license holder to engage in the repair of a
foundation under the supervision of a master license holder.
(b) An applicant for an apprentice license under this
chapter must be at least 18 years of age.
Sec. 1003.157. PRACTICAL EXPERIENCE. For purposes of
determining an applicant's practical experience under this
subchapter, a four-year degree in engineering is equivalent to two
years of practical experience if:
(1) the degree is from an institution of higher
education; and
(2) the institution's program is approved by the Texas
Board of Professional Engineers for the purpose of licensing
engineers.
Sec. 1003.158. APPLICATION. (a) An applicant for a license
must submit an application on the form prescribed by the
department.
(b) The application must specify the class of license for
which the applicant is applying.
(c) The application must be accompanied by:
(1) a statement containing evidence satisfactory to
the department of the applicant's required practical experience;
(2) the examination fee; and
(3) proof of insurance as required by this chapter or
commission rule.
(d) The department may conduct a criminal background check
on an applicant.
Sec. 1003.159. EXAMINATIONS. (a) The department shall
prescribe a separate examination for each class of license, except
that an examination is not required for an apprentice license.
(b) The department shall prescribe the method and content of
an examination administered under this chapter and shall contract
with a statewide association of foundation repair contractors for
the examination.
(c) The examination:
(1) must be offered on a monthly basis or more
frequently as determined by the executive director;
(2) must be offered at locations throughout the state
as determined by the executive director; and
(3) may be offered online as determined by the
executive director.
Sec. 1003.160. ISSUANCE AND TERM OF LICENSE. (a) The
department shall issue a foundation repair contractor license to an
applicant who:
(1) provides evidence of insurance coverage required
by the commission;
(2) passes the applicable examination;
(3) passes a criminal background check;
(4) pays the required fees; and
(5) meets the requirements of this chapter.
(b) Not later than the 30th day after the date an applicant
fulfills the license requirements, the department shall issue a
license to the applicant.
(c) A license issued under this chapter expires at the end
of the license period set by the commission.
Sec. 1003.161. RENEWAL OF LICENSE. To renew a license, the
license holder must:
(1) submit a renewal application in the form
prescribed by the executive director;
(2) pay the required fee;
(3) show evidence of insurance required under this
chapter or commission rule; and
(4) show evidence of having completed the continuing
education requirements established by the commission.
Sec. 1003.162. FORM OF LICENSE. The executive director
shall prescribe the design of an original license and a renewal
license.
Sec. 1003.163. DISPLAY OF LICENSE. The commission, with
the advice of the advisory board, shall adopt rules relating to the
use, display, and advertisement of a license.
Sec. 1003.164. NOTICE TO MUNICIPALITIES. (a) An
individual who obtains a license under this chapter shall provide a
notice to the municipal authority that enforces foundation repair
contracting regulations in each municipality in which the
individual engages in foundation repair contracting.
(b) The notice must be in the form required by the
municipality and inform the municipality that the individual has
obtained a license under this chapter.
(c) A municipality may charge a fee to an individual who
provides the notice required by this section. The municipality
shall set the fee in an amount reasonable and necessary to
administer this section.
Sec. 1003.165. REQUIREMENTS FOR FOUNDATION REPAIR
CONTRACTING COMPANY. (a) A foundation repair contracting company
shall employ at least one full-time license holder who holds a
master license.
(b) A foundation repair contracting company that does not
employ a license holder as required by Subsection (a) at the time a
contract for foundation repair contracting services is signed and
at the time the services are performed may not collect a fee or
otherwise enforce the contract.
Sec. 1003.166. PROHIBITED PRACTICES BY LICENSE HOLDER. (a)
A license holder may not perform or offer or attempt to perform an
act, service, or function that is:
(1) defined as the practice of engineering under
Chapter 1001, unless the individual holds a license under that
chapter;
(2) defined as the practice of architecture under
Chapter 1051, unless the individual holds a license under that
chapter;
(3) regulated under Chapter 113, Natural Resources
Code, unless the individual holds a license or is exempt by rule
under that chapter; or
(4) defined as plumbing under Chapter 1301, unless the
individual holds a license under that chapter.
(b) A license holder may not:
(1) fail to provide services for which payment has
been made or fail to honor the terms of a contract in the absence of
a good faith dispute;
(2) intentionally or knowingly misrepresent a
necessary service, service to be provided, or service that has been
provided; or
(3) make a fraudulent promise to induce an individual
to contract for a service.
[Sections 1003.167-1003.200 reserved for expansion]
SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY
Sec. 1003.201. DISCIPLINARY ACTION. The commission may
impose an administrative penalty or take disciplinary action under
Chapter 51 if a license holder violates this chapter or a rule
adopted under this chapter.
Sec. 1003.202. CRIMINAL PENALTY. (a) A person commits an
offense if the person knowingly engages in foundation repair
contracting without holding a license under this chapter.
(b) An offense under this section is a Class C misdemeanor.
[Sections 1003.203-1003.250 reserved for expansion]
SUBCHAPTER F. INITIAL LICENSES
Sec. 1003.251. INITIAL LICENSING. (a) The department
shall waive the requirements of Section 1003.153(b) for a master
license for an applicant who has been an owner or manager of a
foundation repair contracting company continuously for at least 10
years before March 1, 2012.
(b) The department shall waive the requirements of Section
1003.154(b) for a journeyman license for an applicant who has
worked continuously for a foundation repair contractor as a
salesman, estimator, or manager for at least four years before
March 1, 2012.
Sec. 1003.252. RENEWAL OF LICENSE. To qualify to renew an
initial license issued under this subchapter, the license holder
must comply with the requirements of Section 1003.161.
Sec. 1003.253. EXPIRATION OF SUBCHAPTER. This subchapter
expires June 1, 2013.
SECTION 2. (a) The Texas Commission of Licensing and
Regulation shall appoint the members of the Foundation Repair
Contractors Advisory Board as soon as practicable after the
effective date of this Act.
(b) The members of the Foundation Repair Contractors
Advisory Board appointed under Chapter 1003, Occupations Code, as
added by this Act, shall draw lots to determine which terms of two
members expire February 1, 2013, which terms of two members expire
February 1, 2015, and which terms of three members expire February
1, 2017.
(c) The changes in law made by Section 1003.165, Occupations
Code, as added by this Act, apply only to a contract for foundation
repair entered into or renewed on or after March 1, 2012. A
contract for foundation repair entered into or renewed before March
1, 2012, is governed by the law as it existed on the date the
contract was entered into, and the former law is continued in effect
for that purpose.
SECTION 3. (a) The Texas Commission of Licensing and
Regulation shall adopt rules to implement Chapter 1003, Occupations
Code, as added by this Act, not later than January 1, 2012.
(b) A person is not required to obtain a license to engage in
foundation repair contracting under Chapter 1003, Occupations
Code, as added by this Act, before March 1, 2012.
SECTION 4. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2011.
(b) Sections 1003.151 and 1003.202, Occupations Code, as
added by this Act, take effect March 1, 2012.