By: Sheets H.B. No. 2693
A BILL TO BE ENTITLED
AN ACT
relating to the registration of roofing contractors; authorizing a
fee and providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 20, Insurance Code, is amended by adding
Chapter 6004 to read as follows:
CHAPTER 6004. ROOFING CONTRACTORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6004.001. SHORT TITLE. This chapter may be cited as
the Roofing Contractor Registration Act.
Sec. 6004.002. DEFINITIONS. In this chapter:
(2) "Agricultural use" means a use or activity
involving agriculture, as defined by Section 11.002, Water Code,
other than the processing of an agricultural commodity.
(3) "Commissioner" means the commissioner of
insurance.
(5) "Department" means the Texas Department of
Insurance."
(6) "Maintenance personnel" means an employee who
performs maintenance work incidental to and in connection with
other duties including the repair, maintenance and replacement of
existing building systems and components. Such maintenance
personnel shall not engage in roofing services for the general
public.
(7) "Roofing contractor" means a person or business
performing roofing services for compensation who:
(A) is an owner, officer, or director of a
roofing business;
(B) possesses direct or indirect control of at
least 10 percent of the voting securities of a roofing business that
is a corporation;
(C) owns or possesses direct or indirect control
of at least $25,000 of the fair market value of a roofing business;
(D) directly or indirectly possesses the power to
direct or cause the direction of the management or polices of a
roofing business; or
(E) has a direct or indirect interest in at least
10 percent of the profits, proceeds, or capital gains of a roofing
business.
(8) "Roofing product" means any material commonly used
in the construction, installation, or replacement of a commercial
or residential roof.
(9) "Roofing services" means the installation,
construction, maintenance, repair, alteration, or modification of
a roofing product for a commercial or residential roof.
(10 "Remodeler" means a person who manages, oversees
or carries out multiple structural alterations, in addition to the
performance of roofing services, for an existing residential or
commercial property for compensation.
Sec. 6004.003. EXEMPTIONS. (a) This chapter does not apply
to:
(1) the owner of residential property or property used
primarily for agricultural purposes, or an employee of the owner,
who physically performs roofing services on the owner's dwelling or
on another structure located on the property;
(2) the owner or maintenance personnel of a commercial
building;
(3) an authorized employee or representative of the
United States government, this state, or any county, municipality,
or other political subdivision of this state acting in an official
capacity;
(4) a person who furnishes any fabricated or finished
roofing product, material, or article of merchandise that is not
incorporated into or attached to real property by the person;
(5) an employee while working for and acting under the
supervision of a roofing contractor who holds a registration
certificate under this chapter; or
(6) a builder of a newly constructed single family or
multi-family residential dwelling or commercial structure.
(7) a remodeler of a single family or multi-family
residential dwelling or commercial structure.
(b) Notwithstanding Subsection (a), a person described by
Subsection (a)(6),(7) is subject to the requirements of this
chapter to the extent the person provides roofing services other
than those described by that subdivision.
Sec. 6004.004. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER
LAW. This chapter shall be construed to be in addition to any
required registration of persons in this state. This chapter is not
intended to conflict with or affect the authority of any state or
local agency, board, or department that administers or enforces any
law or ordinance or that establishes, administers, or enforces a
policy, rule, qualification, or standard for a trade or profession.
[Sections 6004.005-6004.100 reserved for expansion]
SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT AND COMMISSIONER
Sec. 6004.101. GENERAL POWERS AND DUTIES. The department
or commissioner, as appropriate, may take action as necessary to
administer and enforce this chapter.
Sec. 6004.102. RULES. The commissioner shall adopt rules
as necessary to administer this chapter, including rules relating
to:
(1) registration and renewal of registrations of
roofing contractors;
(2) registration requirements for out of state roofing
contractors.
(3) the display of a registration certificate by a
registrant; and
(4) the form and manner of a complaint submitted to the
department; including the investigation of complaints.
Sec. 6004.103. UNIFORM CONTRACT REQUIREMENT. The
commissioner shall adopt rules necessary to establish the elements
of a uniform contract which shall be made available for all
registrants to use, if requested.
Sec. 6004.104 REQUIRED FINANCIAL DISCLOSURE. The
commissioner shall adopt rules requiring registrants to disclose,
in writing, whether or not a registrant carries insurance or
maintains any other form of financial responsibility, including any
form of liability coverage, surety bond, workers compensation
coverage, or other coverage. This disclosure shall be made to any
consumer for whom a registrant seeks to provide roofing services
and must be made prior to the signing of a contract with a consumer.
Sec. 1307.105. REGISTRANT DATABASE. The department shall
make available on its Internet website a publicly accessible list
of registered roofing contractors. The list must contain the
following for each registered roofing contractor:
(1) contact information for the contractor;
(2) a statement indicating whether the contractor is
registered and in good standing;
(3) a summary of any known disciplinary action taken
against the contractor; and
(4) any other information that the department
determines is relevant.
[Sections 6004.106-6004.150 reserved for expansion]
SUBCHAPTER C. REGISTRATION REQUIREMENTS
Sec. 6004.151. REGISTRATION REQUIRED. (a) A person may not
act as or offer to act as a roofing contractor unless the person
holds a registration certificate issued under this chapter.
(b) A registration:
(1) is valid only with respect to the person or company
named on the registration certificate; and
(2) authorizes the registrant to operate one roofing
contractor business for each registration.
(c) a registration may not be transferred or assigned.
Sec. 6004.152. APPLICATION; APPLICATION FEE. (a) An
applicant for registration must:
(1) apply to the department on a form prescribed by the
commissioner and under rules adopted by the commissioner;
(2) submit with the application a nonrefundable
application fee in an amount to be set by the commissioner.
(b) The commissioner by rule shall specify the information
that must be included on an application submitted to the
department. The rules must require each application to include:
(1) the name and address of each controlling person.
Sec. 6004.153. TERM OF REGISTRATION AND RENEWAL. (a)
Registration issued under this chapter is valid for one year.
(b) A renewal application must be filed by a roofing
contractor at least 30 days prior to the expiration of each prior
years registration.
(c) If a roofing contractor fails to file a renewal
application at least 30 days prior to the expiration of the prior
years registration then the roofing contractor's registration
shall be deemed not in good standing.
(d) A roofing contractor has a thirty-day grace period
to renew a registration beyond the expiration date.
(e) A roofing contractor who fails to renew a
registration beyond the time provided in 6004.153 (d) shall have
their registration revoked for failure to renew.
[Sections 6004.154-6004.200 reserved for expansion]
SUBCHAPTER D. PRACTICE BY REGISTRANT
Sec. 6004.201. DISPLAY OF REGISTRATION CERTIFICATE. (a) A
roofing contractor shall display the contractor's business name and
the number of the registration certificate issued by the
commissioner on each vehicle owned by the contractor and used in
providing roofing services.
(b) The information required to be displayed must be:
(1) printed in letters and numbers that are at least
two inches high and in a color that contrasts with the color of the
background surface; and
(2) affixed in conspicuous places on both sides of the
vehicle.
Sec. 6004.202. COMPLIANCE WITH LOCAL REQUIREMENTS. A
roofing contractor shall comply with local ordinances and
regulations relating to standards and permits for roofing services.
Sec. 6004.203. OBTAINING A REGISTRATION UNDER ANOTHER NAME
PROHIBITED. (a) A person may not attempt to obtain registration
under any other name during any period during which the person's
roofing contractor registration is suspended or revoked.
(b) Subsection (a) applies to any controlling person of a
business entity or other group whose registration is suspended or
revoked.
Sec. 6004.204. NOTIFICATION OF CHANGE OF INFORMATION. A
roofing contractor shall timely notify the department of any change
to the name, address, business entity, or legal service agent of the
contractor.
Sec. 6004.205. WAIVER OF INSURANCE DEDUCTIBLE PROHIBITED.
A roofing contractor providing roofing services to be paid by a
consumer from the proceeds of the consumer's property or casualty
insurance policy may not pay or rebate or promise to pay or rebate
all or part of any applicable insurance deductible.
Sec. 6004.206. MISREPRESENTATION AND DECEPTIVE ACTS
PROHIBITED. A roofing contractor shall not engage in any
fraudulent or deceptive acts or practices or misrepresentation of
products, services, or qualifications of a roofing contractor.
SEC. 6004.207. CERTAIN CLAIMS HANDLING PROHIBITED. A
roofing contractor shall not handle or advertise services to handle
the adjustment of claims or losses on behalf of an insured.
Sec. 6004.206. CONFLICTS OF INTEREST PROHIBITED. (a) In
this section, "public insurance adjuster" has the meaning assigned
by Section 4102.001, Insurance Code.
(b) A roofing contractor may not act as a public insurance
adjuster for any property for which the contractor is providing
roofing services, regardless of whether the contractor holds a
license under Chapter 4102, Insurance Code.
(c) A roofing contractor is subject to the prohibitions
under Section 4102.158, 4102.153, 4102.155 and 4102.161, Insurance
Code.
[Sections 6004.207-6004.250 reserved for expansion]
SUBCHAPTER E. ENFORCEMENT
Sec. 6004.251. INVESTIGATION OF COMPLAINTS. (a) The
department shall investigate any complaint alleging that a
violation of this chapter or a rule adopted under this chapter has
occurred.
(b) A complaint must be filed in a manner prescribed by the
department.
Sec. 6004.252 ADMINISTRATIVE PENALTY. The commissioner may
impose an administrative penalty on a person under Subchapter B,
Chapter 84, regardless or whether the person is a registrant under
this chapter, if the person violates:
(1) this chapter or a rule adopted under this chapter;
or
(2) a rule or order of the department or commissioner.
Sec. 6004.253. PENALTIES. The commissioner may impose a
penalty as provided by Section 84.022.
Sec. 6004.254. CRIMINAL PENALTY. (a) A person commits an
offense if the person:
(1) violates the registration requirements of this
chapter; or
(2) performs roofing services without the
registration required by this chapter.
(b) An offense under this section is a Class C misdemeanor.
(c) More than one violation of this act during any
twelve-month period shall be grounds for the suspension of a
roofing contractors registration by the department.
(d) More than two violations of this act during any
twelve-month period shall cause the registrant to be ineligible for
registration for a period not to exceed twelve-months from the date
of the last violation.
SECTION 2. Not later than February 1, 2014, the Texas
Department of Insurance, the Commissioner of the Department of
Insurance, as appropriate, shall adopt rules and forms necessary to
implement Chapter 6004, Insurance Code, as added by this Act.
SECTION 3. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2013.
(b) Section 6004.151, Insurance Code, and Subchapters E and
F, Chapter 6004, Insurance Code, as added by this Act, take effect
September 1, 2014.