By: Patrick S.B. No. 1399
(Legler)
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of foundation repair contractors;
providing penalties.
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) "Commission" means the Texas Commission of
Licensing and Regulation.
(3) "Department" means the Texas Department of
Licensing and Regulation.
(4) "Executive director" means the executive director
of the department.
(5) "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.
(6) "Foundation repair" means the performance of or an
offer to perform the design, installation, or construction
functions in connection with the repair or maintenance of a
foundation.
(7) "Foundation repair contracting company" means an
individual or business engaged in foundation repair contracting for
the public.
(8) "Laborer" means an individual who, under the
supervision of a person licensed under this chapter, performs
manual labor, including digging holes, pouring foundations,
tunneling, and installing underpinning.
(9) "Manager" means an individual who oversees
activities related to foundation repair, including foundation
installation, foundation lifting, customer service, and sales.
(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 in connection with
the business in which the individual is employed but who does not
engage in that work for the public;
(3) an individual or entity that engages in foundation
repair for a mobile structure;
(4) an individual or entity that performs foundation
repair only on nonresidential properties; or
(5) an individual or entity that, for compensation:
(A) sells, constructs, or remodels a
single-family house or duplex;
(B) supervises or manages the construction or
remodeling of a single-family house or duplex; or
(C) contracts for the supervision or management
of the construction or remodeling of a single-family house or
duplex.
(b) A laborer is not required to hold a license under this
chapter if the laborer is engaged in foundation repair under the
supervision of a license holder under this chapter.
Sec. 1003.004. APPLICATION OF MUNICIPAL ORDINANCES.
Foundation repair by an individual or entity, including an
individual or entity that is exempt under this chapter, is 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 seven members
appointed by the presiding officer of the commission, with the
commission's approval.
Sec. 1003.052. MEMBERS. (a) Each 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 members shall be appointed as follows:
(1) one member who is an official of a municipality;
(2) one member who is an engineer licensed under
Chapter 1001;
(3) four members who are licensed foundation repair
master license holders, 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. 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, fees, rules, and continuing education
requirements.
Sec. 1003.054. TERMS; VACANCY. (a) Advisory board members
shall serve staggered six-year terms. The terms of two or three
members expire on February 1 of each odd-numbered year.
(b) If a vacancy occurs during a 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. 1003.055. 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. 1003.056. 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 and the budget of the department.
Sec. 1003.057. MEETINGS. (a) The advisory board shall
meet at least annually and may meet at other times at the call of the
presiding officer of the commission or the executive director.
(b) The advisory board shall meet in this state at a place
designated by the executive director.
[Sections 1003.058-1003.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 1003.101. RULES. The commission shall adopt rules as
necessary to implement this chapter.
Sec. 1003.102. INSURANCE REQUIREMENTS. The commission by
rule shall establish minimum liability insurance requirements for a
foundation repair contracting company under this chapter.
Sec. 1003.103. 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. 1003.104. PERSONNEL. The department may employ
personnel necessary to administer this chapter.
Sec. 1003.105. DIRECTORY OF LICENSE HOLDERS. The
department shall maintain a directory of license holders and make
the directory available to the public.
[Sections 1003.106-1003.150 reserved for expansion]
SUBCHAPTER D. LICENSE REQUIREMENTS
Sec. 1003.151. LICENSE REQUIRED. (a) An individual or
entity may not engage in foundation repair unless the individual or
entity holds the appropriate license under this chapter.
(b) An individual or entity that holds a license issued
under this chapter is not required to hold a license issued by a
municipality to engage in foundation repair in the municipality.
Sec. 1003.152. LICENSE CLASSIFICATIONS. The department
shall issue contracting company, master, journeyman, estimator,
and foreman licenses.
Sec. 1003.153. CONTRACTING COMPANY LICENSE. (a) A
contracting company license entitles the license holder to engage
in business as a foundation repair contracting company.
(b) A foundation repair contracting company shall employ at
least one full-time license holder who holds a master license.
(c) A foundation repair contracting company that does not
employ a license holder as required by Subsection (b) at the time
the services are performed may not collect a fee or otherwise
enforce the contract.
(d) A foundation repair contracting company shall maintain
at all times insurance as required by commission rule.
Sec. 1003.154. MASTER LICENSE. (a) A master license
entitles the license holder to engage in foundation repair.
(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
work experience in foundation repair under the supervision of a
master license holder during the preceding seven years or
substantially equivalent experience;
(3) have a high school diploma or its equivalent; and
(4) pass an examination administered by the
department.
Sec. 1003.155. JOURNEYMAN LICENSE. (a) A journeyman
license entitles the license holder to engage in the design and sale
of foundation repair and the lifting, lowering, and adjusting of
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
work experience in foundation repair under the supervision of a
master license holder during the preceding five years or
substantially equivalent experience;
(3) have a high school diploma or its equivalent; and
(4) pass an examination administered by the
department.
Sec. 1003.156. ESTIMATOR LICENSE. (a) An estimator
license entitles the license holder to engage in providing
estimates or designs for foundation repair under the supervision of
a master or journeyman license holder.
(b) An applicant for an estimator 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. 1003.157. FOREMAN LICENSE. (a) A foreman license
entitles the license holder to supervise laborers and to engage in
foundation repair under the supervision of a master or journeyman
license holder.
(b) An applicant for a foreman license under this chapter
must be at least 18 years of age.
Sec. 1003.158. 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 the degree is from an institution
of higher education.
Sec. 1003.159. 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 and include the required fees.
(c) The application for a master, journeyman, estimator, or
foreman license must include a statement containing evidence
satisfactory to the department of the applicant's required
practical experience. An application for a contracting company
license must include proof of insurance as required by commission
rule.
(d) The department may conduct a criminal background check
on an applicant.
Sec. 1003.160. EXAMINATIONS. (a) The department shall
prescribe a separate examination for each class of license under
this chapter, except that an examination is not required for a
foreman or contracting company license.
(b) The department shall prescribe the method and content of
an examination administered under this chapter.
(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. 1003.161. ISSUANCE AND TERM OF LICENSE. (a) The
department shall issue a license to an applicant who:
(1) submits a verified application on a form
prescribed by the department;
(2) provides evidence of insurance coverage required
by commission rule, if applicable;
(3) passes an examination, if applicable;
(4) pays the required fees; and
(5) meets the requirements of this chapter and rules
adopted under this chapter.
(b) A license issued under this chapter expires at the end
of the license period set by the commission.
Sec. 1003.162. 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 by commission
rule, if applicable; and
(4) show evidence of having completed the continuing
education requirements established by the commission, as
applicable.
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
regulations in each municipality in which the individual engages in
foundation repair.
(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. PROHIBITED PRACTICES. (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.
(c) A laborer may not supervise any individual who is
performing work related to foundation repair.
[Sections 1003.166-1003.200 reserved for expansion]
SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY
Sec. 1003.201. DISCIPLINARY ACTION. The commission or
executive director may impose an administrative penalty or take
disciplinary action under Chapter 51 or this chapter if a license
holder violates this chapter, a rule adopted under this chapter, or
an order of the commission or the executive director.
Sec. 1003.202. CRIMINAL PENALTY. (a) A person commits an
offense if the person knowingly engages in foundation repair
without holding a license required by 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. WAIVER OF EXAMINATION REQUIREMENT. (a) The
department shall waive the examination requirement of Section
1003.154(b) for a master license for an applicant who has been an
owner or manager of a foundation repair contracting company for at
least 60 months before September 1, 2012.
(b) The department shall waive the examination requirement
of Section 1003.155(b) for a journeyman license for an applicant
who has worked for a foundation repair contracting company as a
salesperson, estimator, foreman, or manager for at least 24 months
before September 1, 2012.
Sec. 1003.252. INITIAL LICENSING. (a) The department
shall issue a master license to a qualified applicant who:
(1) submits an application not later than September 1,
2012;
(2) is at least 21 years of age;
(3) has been an owner or manager of a foundation repair
contracting company for at least 60 months; and
(4) has a high school diploma or its equivalent.
(b) The department shall issue a journeyman license to a
qualified applicant who:
(1) submits an application not later than September 1,
2012;
(2) is at least 21 years of age;
(3) has worked for a foundation repair contracting
company as a salesperson, estimator, foreman, or manager for at
least 24 months; and
(4) has a high school diploma or its equivalent.
Sec. 1003.253. RENEWAL OF LICENSE. To qualify to renew an
initial license issued under this subchapter, the license holder
must comply with the requirements of Section 1003.162.
Sec. 1003.254. EXPIRATION OF SUBCHAPTER. This subchapter
expires October 1, 2012.
SECTION 2. (a) Notwithstanding the requirement of
Subdivision (3), Subsection (b), Section 1003.052, Occupations
Code, as added by this Act, the Texas Commission of Licensing and
Regulation shall appoint persons who meet the practical experience
requirement for an initial master license to serve as initial
members of the Foundation Repair Contractors Advisory Board as soon
as practicable after the effective date of this Act.
(b) The Texas Commission of Licensing and Regulation shall
determine with respect to the members of the Foundation Repair
Contractors Advisory Board appointed under Chapter 1003,
Occupations Code, as added by this Act, 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 1003.153, Occupations
Code, as added by this Act, apply only to a contract for foundation
repair entered into or renewed on or after September 1, 2012. A
contract for foundation repair entered into or renewed before
September 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 February 1, 2012.
(b) A person is not required to obtain a license to engage in
foundation repair under Chapter 1003, Occupations Code, as added by
this Act, before September 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, 1003.201, and 1003.202, Occupations
Code, as added by this Act, take effect September 1, 2012.