83R10500 KKR-D By: J. Davis of Harris H.B. No. 3242 A BILL TO BE ENTITLED AN ACT relating to roofing contractors; creating an offense. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is amended by adding Chapter 110 to read as follows: CHAPTER 110. ROOFING CONTRACTORS Sec. 110.001. DEFINITION. In this chapter, "roofing contractor" means a person who, for compensation, provides a roofing service, including the installation, construction, maintenance, service, repair, alteration, or modification of any part of a roof. Sec. 110.002. PROHIBITED CONDUCT. A roofing contractor may not: (1) assist a customer to obtain payment under an insurance policy for a roofing service or product provided by the contractor, without regard to whether the contractor is compensated for providing the assistance; or (2) bear the cost, directly or indirectly, of an insurance policy deductible applicable to a roofing service or product provided by the contractor. Sec. 110.003. PROHIBITED AGREEMENT. A roofing contractor may not enter into an agreement with a customer or potential customer under which the contractor agrees to engage in conduct prohibited by Section 110.002. Sec. 110.004. REQUIRED DISCLOSURE OF LIABILITY INSURANCE COVERAGE. Before or at the time of entering into a contract for a roofing service, a roofing contractor must disclose in writing to the customer or potential customer whether the contractor is covered by a liability insurance policy that covers the contractor for liability for damages arising out of the provision of roofing services. At the request of the customer or potential customer, the roofing contractor shall provide to the customer or potential customer a copy of the declarations page of any applicable liability insurance policy. Sec. 110.005. INSURANCE ADJUSTERS. An insurance adjuster licensed under Chapter 4101, Insurance Code, or a public insurance adjuster licensed under Chapter 4102, Insurance Code, may not engage in business as a roofing contractor. Sec. 110.006. OFFENSE. A person commits an offense if the person is a roofing contractor and violates this chapter. An offense under this section is a Class C misdemeanor. SECTION 2. Chapter 4101, Insurance Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. PROHIBITED CONDUCT Sec. 4101.251. CERTAIN ROOFING-RELATED BUSINESS PROHIBITED. A licensed adjuster may not engage in business as a roofing contractor, as that term is defined by Section 110.001, Business & Commerce Code. SECTION 3. Subchapter D, Chapter 4102, Insurance Code, is amended by adding Section 4102.163 to read as follows: Sec. 4102.163. CERTAIN ROOFING-RELATED BUSINESS PROHIBITED. A license holder may not engage in business as a roofing contractor, as that term is defined by Section 110.001, Business & Commerce Code. SECTION 4. This Act takes effect September 1, 2013.