83R18664 PMO-F
By: Sheets, Sheffield of Bell, Eiland, H.B. No. 2693
Smithee, et al.
Substitute the following for H.B. No. 2693:
By: Smith C.S.H.B. No. 2693
A BILL TO BE ENTITLED
AN ACT
relating to voluntary registration and regulation of roofing
contractors; providing criminal penalties; authorizing a fee.
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 Consumer Protection Act.
Sec. 6004.002. DEFINITIONS. In this chapter:
(1) "Roofing contractor":
(A) means an individual performing roofing
services for the public for compensation who:
(i) is operating as an individual or sole
proprietorship; or
(ii) with respect to a business entity:
(a) is an owner, officer, or director
of the business entity;
(b) possesses direct or indirect
control of not less than, as applicable:
(1) 10 percent of the voting
shares of a corporate entity; or
(2) $25,000 of the fair market
value of a noncorporate entity;
(c) possesses direct or indirect
control of the management or policies of the business entity; or
(d) has a direct or indirect interest
in not less than 10 percent of the profits, proceeds, or capital
gains of the business entity; and
(B) does not include an individual acting as an
engineer licensed under Chapter 1001, Occupations Code, or an
architect registered under Chapter 1051, Occupations Code.
(2) "Roofing product" means any material commonly used
in the construction, installation, or replacement of a commercial
or residential roof.
(3) "Roofing services" means the installation,
construction, maintenance, repair, alteration, or modification of
a roofing product for a commercial or residential roof.
Sec. 6004.003. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER
LAW. This chapter shall be construed to be in addition to any
required license, certification, or 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. This chapter does not require that a
roofing contractor be registered under this chapter to engage in
the business of providing roofing services in this state.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 6004.051. ADMINISTRATION. The commissioner shall
administer this chapter in accordance with Chapter 36.
Sec. 6004.052. VOLUNTARY REGISTRANT DATABASE. The
department shall make available on its Internet website a publicly
accessible list of roofing contractors who voluntarily elect to
register under this chapter. The list must contain the following
for each registered roofing contractor:
(1) contact information for the contractor;
(2) the name of each business entity with respect to
which the registrant is described by Section 6004.002(1)(A)(ii);
(3) a statement indicating whether the contractor is
registered in good standing under this chapter;
(4) a summary of known disciplinary action taken
against the contractor; and
(5) any other information that the commissioner
considers relevant.
SUBCHAPTER C. VOLUNTARY REGISTRATION
Sec. 6004.101. REGISTRATION. (a) A roofing contractor who
voluntarily elects to register under this chapter may represent to
the public that the contractor is a registered roofing contractor.
(b) A registration:
(1) is valid only with respect to the individual named
on the certificate of registration; and
(2) authorizes the registrant to operate under the
registration under the business names included in the application
for registration.
(c) A registration certificate may not be transferred or
assigned.
Sec. 6004.102. APPLICATION; APPLICATION FEE. (a) An
applicant for a registration certificate must:
(1) apply to the department on a form prescribed by the
commissioner by rule; and
(2) submit with the application a nonrefundable
application fee established by the commissioner by rule.
(b) The commissioner by rule shall specify the information
that must be included on an application submitted to the
department.
Sec. 6004.103. ISSUANCE OF CERTIFICATE. The commissioner
shall issue a numbered certificate of registration to an applicant
who submits an application and fee in compliance with Section
6004.102.
Sec. 6004.104. TERM OF REGISTRATION; RENEWAL. (a) A
certificate of registration issued under this chapter is valid for
one year.
(b) Except as provided by Subsection (c), an application for
renewal of a certificate of registration must be filed with the
department not later than the 30th day before the date the
certificate of registration expires. A certificate of registration
for which an application for renewal is not timely filed under this
subsection is considered not in good standing until the later of the
date of the expiration of the certificate of registration under
Subsection (d) or the granting of an application described by
Subsection (c), if any.
(c) A registrant may file an application for renewal not
later than the 30th day after the date a certificate of registration
expires.
(d) A certificate of registration not renewed under
Subsection (b) or (c) may not be renewed. The individual may obtain
a new certificate of registration by complying with the
requirements and procedures for obtaining an initial certificate of
registration.
SUBCHAPTER D. PRACTICE BY ROOFING CONTRACTOR
Sec. 6004.151. COMPLIANCE WITH LOCAL REQUIREMENTS. A
roofing contractor shall comply with local ordinances and
regulations relating to standards and permits for roofing services.
Sec. 6004.152. NOTIFICATION OF CHANGE OF INFORMATION. A
registrant shall timely notify the department of any change to the
name, address, business entity, or legal service agent of the
contractor.
Sec. 6004.153. REGISTRATION DURING SUSPENSION OR
REVOCATION PROHIBITED. An individual may not obtain another
certificate of registration under this chapter during any period in
which the individual's certificate of registration is suspended or
revoked.
Sec. 6004.154. REBATING PROHIBITED. (a) A roofing
contractor providing roofing services to be paid by a consumer from
the proceeds of the consumer's property insurance policy may not
pay or rebate or promise to pay or rebate all or part of any
applicable insurance deductible.
(b) A roofing contractor that violates Subsection (a)
commits an offense. An offense under this subsection is a Class A
misdemeanor.
Sec. 6004.155. CONFLICTS OF INTEREST PROHIBITED. A roofing
contractor may not act as an adjuster or advertise to adjust claims
for any property for which the contractor is providing or may
provide roofing services, regardless of whether the contractor
holds a license under Chapter 4101 or 4102.
Sec. 6004.156. ENGINEERING AND ARCHITECTURE SERVICES
PROHIBITED. Unless a roofing contractor holds a license under the
applicable chapter, the contractor may not engage or offer or
attempt to engage in the practice of:
(1) engineering regulated under Chapter 1001,
Occupations Code; or
(2) architecture regulated under Chapter 1051,
Occupations Code.
Sec. 6004.157. DISPLAY OF CERTIFICATE OF REGISTRATION
NUMBER PERMITTED. A registrant may display the certificate of
registration number issued to the contractor under Section
6004.103.
Sec. 6004.158. LIABILITY INSURANCE DISCLOSURE. (a) A
roofing contractor shall provide to all consumers solicited by the
contractor a written disclosure of whether the contractor carries
liability insurance coverage for damage or loss arising from the
contractor's provision of roofing services.
(b) A roofing contractor may not enter into a contract for
roofing services with a consumer until the contractor provides to
the consumer the disclosure described by Subsection (a).
(c) On request of a consumer, a roofing contractor that
carries liability insurance coverage described by Subsection (a)
shall provide to the consumer a copy of the declarations page of the
insurance policy.
SUBCHAPTER E. ENFORCEMENT
Sec. 6004.201. INVESTIGATION OF COMPLAINTS. (a) The
department shall investigate any complaint alleging that a
voluntary registrant has violated this chapter or a rule adopted
under this chapter.
(b) A complaint must be filed in a manner prescribed by the
department.
Sec. 6004.202. CRIMINAL PENALTY. (a) A roofing contractor
commits an offense if the contractor:
(1) violates Section 6004.155 or 6004.158; or
(2) represents to the public that the contractor is a
registered roofing contractor unless the contractor is registered
under this chapter and has received from the department
confirmation of registration.
(b) An offense under this section is a Class C misdemeanor.
SECTION 2. Not later than February 1, 2014, the
commissioner of insurance shall adopt rules and forms necessary to
implement Chapter 6004, Insurance Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2013.