Texas 2013 - 83rd Regular

Texas House Bill HB2693 Compare Versions

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1	1	83R18664 PMO-F
2	2	By: Sheets, Sheffield of Bell, Eiland, H.B. No. 2693
3	3	Smithee, et al.
4	4	Substitute the following for H.B. No. 2693:
5	5	By: Smith C.S.H.B. No. 2693
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to voluntary registration and regulation of roofing
11	11	contractors; providing criminal penalties; authorizing a fee.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Title 20, Insurance Code, is amended by adding
14	14	Chapter 6004 to read as follows:
15	15	CHAPTER 6004. ROOFING CONTRACTORS
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 6004.001. SHORT TITLE. This chapter may be cited as
18	18	the Roofing Contractor Consumer Protection Act.
19	19	Sec. 6004.002. DEFINITIONS. In this chapter:
20	20	(1) "Roofing contractor":
21	21	(A) means an individual performing roofing
22	22	services for the public for compensation who:
23	23	(i) is operating as an individual or sole
24	24	proprietorship; or
25	25	(ii) with respect to a business entity:
26	26	(a) is an owner, officer, or director
27	27	of the business entity;
28	28	(b) possesses direct or indirect
29	29	control of not less than, as applicable:
30	30	(1) 10 percent of the voting
31	31	shares of a corporate entity; or
32	32	(2) $25,000 of the fair market
33	33	value of a noncorporate entity;
34	34	(c) possesses direct or indirect
35	35	control of the management or policies of the business entity; or
36	36	(d) has a direct or indirect interest
37	37	in not less than 10 percent of the profits, proceeds, or capital
38	38	gains of the business entity; and
39	39	(B) does not include an individual acting as an
40	40	engineer licensed under Chapter 1001, Occupations Code, or an
41	41	architect registered under Chapter 1051, Occupations Code.
42	42	(2) "Roofing product" means any material commonly used
43	43	in the construction, installation, or replacement of a commercial
44	44	or residential roof.
45	45	(3) "Roofing services" means the installation,
46	46	construction, maintenance, repair, alteration, or modification of
47	47	a roofing product for a commercial or residential roof.
48	48	Sec. 6004.003. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER
49	49	LAW. This chapter shall be construed to be in addition to any
50	50	required license, certification, or registration of persons in this
51	51	state. This chapter is not intended to conflict with or affect the
52	52	authority of any state or local agency, board, or department that
53	53	administers or enforces any law or ordinance or that establishes,
54	54	administers, or enforces a policy, rule, qualification, or standard
55	55	for a trade or profession. This chapter does not require that a
56	56	roofing contractor be registered under this chapter to engage in
57	57	the business of providing roofing services in this state.
58	58	SUBCHAPTER B. POWERS AND DUTIES
59	59	Sec. 6004.051. ADMINISTRATION. The commissioner shall
60	60	administer this chapter in accordance with Chapter 36.
61	61	Sec. 6004.052. VOLUNTARY REGISTRANT DATABASE. The
62	62	department shall make available on its Internet website a publicly
63	63	accessible list of roofing contractors who voluntarily elect to
64	64	register under this chapter. The list must contain the following
65	65	for each registered roofing contractor:
66	66	(1) contact information for the contractor;
67	67	(2) the name of each business entity with respect to
68	68	which the registrant is described by Section 6004.002(1)(A)(ii);
69	69	(3) a statement indicating whether the contractor is
70	70	registered in good standing under this chapter;
71	71	(4) a summary of known disciplinary action taken
72	72	against the contractor; and
73	73	(5) any other information that the commissioner
74	74	considers relevant.
75	75	SUBCHAPTER C. VOLUNTARY REGISTRATION
76	76	Sec. 6004.101. REGISTRATION. (a) A roofing contractor who
77	77	voluntarily elects to register under this chapter may represent to
78	78	the public that the contractor is a registered roofing contractor.
79	79	(b) A registration:
80	80	(1) is valid only with respect to the individual named
81	81	on the certificate of registration; and
82	82	(2) authorizes the registrant to operate under the
83	83	registration under the business names included in the application
84	84	for registration.
85	85	(c) A registration certificate may not be transferred or
86	86	assigned.
87	87	Sec. 6004.102. APPLICATION; APPLICATION FEE. (a) An
88	88	applicant for a registration certificate must:
89	89	(1) apply to the department on a form prescribed by the
90	90	commissioner by rule; and
91	91	(2) submit with the application a nonrefundable
92	92	application fee established by the commissioner by rule.
93	93	(b) The commissioner by rule shall specify the information
94	94	that must be included on an application submitted to the
95	95	department.
96	96	Sec. 6004.103. ISSUANCE OF CERTIFICATE. The commissioner
97	97	shall issue a numbered certificate of registration to an applicant
98	98	who submits an application and fee in compliance with Section
99	99	6004.102.
100	100	Sec. 6004.104. TERM OF REGISTRATION; RENEWAL. (a) A
101	101	certificate of registration issued under this chapter is valid for
102	102	one year.
103	103	(b) Except as provided by Subsection (c), an application for
104	104	renewal of a certificate of registration must be filed with the
105	105	department not later than the 30th day before the date the
106	106	certificate of registration expires. A certificate of registration
107	107	for which an application for renewal is not timely filed under this
108	108	subsection is considered not in good standing until the later of the
109	109	date of the expiration of the certificate of registration under
110	110	Subsection (d) or the granting of an application described by
111	111	Subsection (c), if any.
112	112	(c) A registrant may file an application for renewal not
113	113	later than the 30th day after the date a certificate of registration
114	114	expires.
115	115	(d) A certificate of registration not renewed under
116	116	Subsection (b) or (c) may not be renewed. The individual may obtain
117	117	a new certificate of registration by complying with the
118	118	requirements and procedures for obtaining an initial certificate of
119	119	registration.
120	120	SUBCHAPTER D. PRACTICE BY ROOFING CONTRACTOR
121	121	Sec. 6004.151. COMPLIANCE WITH LOCAL REQUIREMENTS. A
122	122	roofing contractor shall comply with local ordinances and
123	123	regulations relating to standards and permits for roofing services.
124	124	Sec. 6004.152. NOTIFICATION OF CHANGE OF INFORMATION. A
125	125	registrant shall timely notify the department of any change to the
126	126	name, address, business entity, or legal service agent of the
127	127	contractor.
128	128	Sec. 6004.153. REGISTRATION DURING SUSPENSION OR
129	129	REVOCATION PROHIBITED. An individual may not obtain another
130	130	certificate of registration under this chapter during any period in
131	131	which the individual's certificate of registration is suspended or
132	132	revoked.
133	133	Sec. 6004.154. REBATING PROHIBITED. (a) A roofing
134	134	contractor providing roofing services to be paid by a consumer from
135	135	the proceeds of the consumer's property insurance policy may not
136	136	pay or rebate or promise to pay or rebate all or part of any
137	137	applicable insurance deductible.
138	138	(b) A roofing contractor that violates Subsection (a)
139	139	commits an offense. An offense under this subsection is a Class A
140	140	misdemeanor.
141	141	Sec. 6004.155. CONFLICTS OF INTEREST PROHIBITED. A roofing
142	142	contractor may not act as an adjuster or advertise to adjust claims
143	143	for any property for which the contractor is providing or may
144	144	provide roofing services, regardless of whether the contractor
145	145	holds a license under Chapter 4101 or 4102.
146	146	Sec. 6004.156. ENGINEERING AND ARCHITECTURE SERVICES
147	147	PROHIBITED. Unless a roofing contractor holds a license under the
148	148	applicable chapter, the contractor may not engage or offer or
149	149	attempt to engage in the practice of:
150	150	(1) engineering regulated under Chapter 1001,
151	151	Occupations Code; or
152	152	(2) architecture regulated under Chapter 1051,
153	153	Occupations Code.
154	154	Sec. 6004.157. DISPLAY OF CERTIFICATE OF REGISTRATION
155	155	NUMBER PERMITTED. A registrant may display the certificate of
156	156	registration number issued to the contractor under Section
157	157	6004.103.
158	158	Sec. 6004.158. LIABILITY INSURANCE DISCLOSURE. (a) A
159	159	roofing contractor shall provide to all consumers solicited by the
160	160	contractor a written disclosure of whether the contractor carries
161	161	liability insurance coverage for damage or loss arising from the
162	162	contractor's provision of roofing services.
163	163	(b) A roofing contractor may not enter into a contract for
164	164	roofing services with a consumer until the contractor provides to
165	165	the consumer the disclosure described by Subsection (a).
166	166	(c) On request of a consumer, a roofing contractor that
167	167	carries liability insurance coverage described by Subsection (a)
168	168	shall provide to the consumer a copy of the declarations page of the
169	169	insurance policy.
170	170	SUBCHAPTER E. ENFORCEMENT
171	171	Sec. 6004.201. INVESTIGATION OF COMPLAINTS. (a) The
172	172	department shall investigate any complaint alleging that a
173	173	voluntary registrant has violated this chapter or a rule adopted
174	174	under this chapter.
175	175	(b) A complaint must be filed in a manner prescribed by the
176	176	department.
177	177	Sec. 6004.202. CRIMINAL PENALTY. (a) A roofing contractor
178	178	commits an offense if the contractor:
179	179	(1) violates Section 6004.155 or 6004.158; or
180	180	(2) represents to the public that the contractor is a
181	181	registered roofing contractor unless the contractor is registered
182	182	under this chapter and has received from the department
183	183	confirmation of registration.
184	184	(b) An offense under this section is a Class C misdemeanor.
185	185	SECTION 2. Not later than February 1, 2014, the
186	186	commissioner of insurance shall adopt rules and forms necessary to
187	187	implement Chapter 6004, Insurance Code, as added by this Act.
188	188	SECTION 3. This Act takes effect September 1, 2013.