Texas 2013 - 83rd Regular

Texas House Bill HB613 Compare Versions

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1	1	83R19448 SLB-D
2	2	By: Orr, Larson H.B. No. 613
3	3	Substitute the following for H.B. No. 613:
4	4	By: Kuempel C.S.H.B. No. 613
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of foundation repair contractors;
10	10	providing penalties; authorizing fees.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle A, Title 6, Occupations Code, is
13	13	amended by adding Chapter 1003 to read as follows:
14	14	CHAPTER 1003. FOUNDATION REPAIR CONTRACTORS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 1003.001. SHORT TITLE. This chapter may be cited as
17	17	the Foundation Repair Contractors Act.
18	18	Sec. 1003.002. DEFINITIONS. In this chapter:
19	19	(1) "Advisory board" means the Foundation Repair
20	20	Advisory Board.
21	21	(2) "Commission" means the Texas Commission of
22	22	Licensing and Regulation.
23	23	(3) "Department" means the Texas Department of
24	24	Licensing and Regulation.
25	25	(4) "Executive director" means the executive director
26	26	of the department.
27	27	(5) "Foundation" means that portion of the structure
28	28	of a residential property, other than a column, that serves the
29	29	function of:
30	30	(A) supporting an overlying structure;
31	31	(B) providing a base for an overlying structure;
32	32	or
33	33	(C) transmitting loads from an overlying
34	34	structure to the underlying soils.
35	35	(6) "Foundation repair company" means a person engaged
36	36	in the business of foundation repair contracting.
37	37	(7) "Foundation repair contracting" means performing
38	38	or offering to prepare an estimation or to perform the preparation
39	39	for, installation of, or construction functions in connection with
40	40	the repair or maintenance of a foundation.
41	41	(8) "Foundation repair work" means the preparation for
42	42	or estimation of the repair or maintenance of a foundation, or labor
43	43	or the use of materials for the installation or construction
44	44	functions in connection with the repair or maintenance of a
45	45	foundation.
46	46	(9) "Laborer" means an individual who, under the
47	47	supervision and direction of a person licensed under this chapter,
48	48	performs nonsupervisory manual labor, including digging holes,
49	49	pouring supports, tunneling, and installing underpinning.
50	50	(10) "Mobile structure" means:
51	51	(A) a manufactured home that complies with the
52	52	construction and safety standards of the United States Department
53	53	of Housing and Urban Development; or
54	54	(B) a mobile home, as defined by Section
55	55	1201.003.
56	56	(11) "Principal" means an individual who:
57	57	(A) personally or constructively holds,
58	58	including as the beneficiary of a trust:
59	59	(i) at least 10 percent of a corporation's
60	60	outstanding stock; or
61	61	(ii) more than $25,000 of the fair market
62	62	value of a business entity;
63	63	(B) has the controlling interest in a business
64	64	entity;
65	65	(C) has a direct or indirect participating
66	66	interest through shares, stock, or otherwise, regardless of whether
67	67	voting rights are included, of more than 10 percent of the profits,
68	68	proceeds, or capital gains of a business entity;
69	69	(D) is a member of the board of directors or other
70	70	governing body of a business entity; or
71	71	(E) serves as an elected officer of a business
72	72	entity.
73	73	(12) "Residential property" means a single-family
74	74	home or duplex not more than three stories in height or a townhome
75	75	not more than two stories in height.
76	76	Sec. 1003.003. EXEMPTIONS. (a) This chapter does not apply
77	77	to:
78	78	(1) an individual who performs foundation repair work
79	79	only on a home for which the individual is listed in the records of
80	80	the local appraisal district as the owner, except that the
81	81	individual may not pay compensation to any person for the repair
82	82	other than to purchase materials;
83	83	(2) an individual licensed as an engineer under
84	84	Chapter 1001;
85	85	(3) a person who performs foundation repair work only
86	86	on a mobile structure;
87	87	(4) a person who performs foundation repair work only
88	88	on nonresidential property;
89	89	(5) a person who, for compensation:
90	90	(A) constructs or remodels a single-family home
91	91	or duplex;
92	92	(B) supervises or manages the construction or
93	93	remodeling of a single-family home or duplex; or
94	94	(C) contracts for the supervision or management
95	95	of the construction or remodeling of a single-family home or
96	96	duplex; or
97	97	(6) a person regularly employed as a maintenance
98	98	person for the owner of residential or commercial property who:
99	99	(A) physically performs work on structures on the
100	100	property; and
101	101	(B) does not perform or offer to perform
102	102	foundation repair work for the public.
103	103	(b) For the purposes of Subsection (a)(5):
104	104	(1) the remodeling of a single-family home or duplex
105	105	is not exempt if the work consists solely of foundation repair work;
106	106	and
107	107	(2) foundation repair work, including work done under
108	108	a structural or foundation warranty covering the original
109	109	construction or the remodel, conducted on a single-family home or
110	110	duplex is exempt from the requirements of this chapter to the extent
111	111	that the repair work is supervised, managed, or performed, or
112	112	contracted to be supervised, managed, or performed, by the person
113	113	who originally:
114	114	(A) constructed or remodeled the single-family
115	115	home or duplex;
116	116	(B) supervised or managed the construction or
117	117	remodeling of the single-family home or duplex; or
118	118	(C) contracted for the supervision or management
119	119	of the construction or remodeling of the single-family home or
120	120	duplex.
121	121	(c) A laborer is not required to hold a license under this
122	122	chapter if the laborer is engaged in foundation repair under the
123	123	supervision of a license holder and in accordance with this
124	124	chapter.
125	125	SUBCHAPTER B. FOUNDATION REPAIR ADVISORY BOARD
126	126	Sec. 1003.051. ADVISORY BOARD MEMBERSHIP. (a) The
127	127	Foundation Repair Advisory Board consists of nine members appointed
128	128	by the presiding officer of the commission, with the commission's
129	129	approval, as follows:
130	130	(1) one member who is an official of a municipality;
131	131	(2) one member who is an engineer licensed under
132	132	Chapter 1001;
133	133	(3) four members who are foundation repair master
134	134	license holders;
135	135	(4) one member who is a journeyman license holder;
136	136	(5) one member who is a building contractor
137	137	principally engaged in residential building; and
138	138	(6) one member who represents the public and is not
139	139	affiliated with any foundation repair company.
140	140	(b) Appointments to the advisory board shall be made without
141	141	regard to the race, color, disability, sex, religion, age, or
142	142	national origin of the appointee.
143	143	(c) Notwithstanding Subsection (a)(3), the commission may
144	144	appoint a person to the advisory board under that subdivision if the
145	145	person:
146	146	(1) does not hold a license under this chapter; and
147	147	(2) meets the qualifications for the license,
148	148	including the requirement that the person pass a criminal
149	149	background check.
150	150	(d) A member appointed under Subsection (c) must apply for
151	151	and obtain a license not later than the 30th day after the date the
152	152	member is appointed.
153	153	Sec. 1003.052. ADVISORY BOARD DUTIES. The advisory board
154	154	shall provide advice and recommendations to the department and
155	155	commission on technical matters relevant to the administration and
156	156	enforcement of this chapter, including examination content,
157	157	licensing standards, foundation repair standards, fees, rules, and
158	158	continuing education requirements.
159	159	Sec. 1003.053. TERMS; VACANCY. (a) Advisory board members
160	160	serve staggered six-year terms. The terms of three members expire
161	161	on February 1 of each odd-numbered year.
162	162	(b) If a vacancy occurs during a member's term, the
163	163	presiding officer of the commission, with the commission's
164	164	approval, shall fill the vacancy for the remainder of the unexpired
165	165	term with an individual having the same qualifications as the
166	166	individual's predecessor.
167	167	(c) A member may not serve more than two consecutive full
168	168	terms.
169	169	Sec. 1003.054. PRESIDING OFFICER. (a) The presiding
170	170	officer of the commission, with the commission's approval, shall
171	171	designate one member of the advisory board to serve as presiding
172	172	officer of the advisory board for a one-year term.
173	173	(b) The presiding officer of the advisory board may vote on
174	174	any matter before the advisory board.
175	175	Sec. 1003.055. COMPENSATION; REIMBURSEMENT. An advisory
176	176	board member serves without compensation but may receive
177	177	reimbursement for actual and necessary expenses incurred in
178	178	performing functions as an advisory board member, as provided by
179	179	the General Appropriations Act and the budget of the department.
180	180	Sec. 1003.056. MEETINGS. The advisory board shall meet at
181	181	least annually and may meet at other times at the call of the
182	182	presiding officer of the commission or the executive director.
183	183	SUBCHAPTER C. POWERS AND DUTIES OF COMMISSION AND DEPARTMENT
184	184	Sec. 1003.101. RULES. The commission shall adopt rules as
185	185	necessary to implement this chapter, including rules:
186	186	(1) regarding the requirements to obtain and renew
187	187	each type of license under this chapter;
188	188	(2) regarding the operation of a foundation repair
189	189	company, including reasonable minimum insurance requirements, and
190	190	the performance of foundation repair contracting;
191	191	(3) governing the use, display, and advertisement of a
192	192	license issued under this chapter;
193	193	(4) regarding advertising in relation to an offer to
194	194	perform foundation repair work or foundation repair contracting;
195	195	and
196	196	(5) relating to administrative sanctions that may be
197	197	imposed on a person under this chapter.
198	198	Sec. 1003.102. CONTRACTS FOR ENFORCEMENT. The department
199	199	may contract with another state agency or political subdivision of
200	200	this state to enforce this chapter and rules adopted under this
201	201	chapter.
202	202	Sec. 1003.103. PERSONNEL. The department may employ
203	203	personnel necessary to administer this chapter.
204	204	Sec. 1003.104. DIRECTORY OF LICENSE HOLDERS. The
205	205	department shall maintain a directory of license holders and make
206	206	the directory available to the public on the Internet.
207	207	Sec. 1003.105. FEES. The commission shall establish and
208	208	the department shall collect reasonable and necessary fees in
209	209	amounts sufficient to cover the costs of administering this
210	210	chapter.
211	211	Sec. 1003.106. CRIMINAL HISTORY BACKGROUND CHECK. The
212	212	department may obtain criminal history record information under
213	213	Subchapter F, Chapter 411, Government Code, for an applicant for or
214	214	holder of a license under this chapter. For purposes of Section
215	215	411.093, Government Code, an applicant for or holder of a license
216	216	under this chapter includes a principal of the applicant or license
217	217	holder.
218	218	SUBCHAPTER D. LICENSE REQUIREMENTS
219	219	Sec. 1003.151. LICENSE REQUIRED. (a) Unless the person
220	220	holds an appropriate license issued under this chapter, a person
221	221	may not:
222	222	(1) operate a foundation repair company;
223	223	(2) perform foundation repair work or supervise the
224	224	performance of foundation repair work; or
225	225	(3) prepare or provide:
226	226	(A) cost estimates for foundation repair work,
227	227	including bids or proposals; or
228	228	(B) a contract to perform foundation repair work.
229	229	(b) A person may not offer to perform an activity listed in
230	230	Subsection (a) unless the person holds an appropriate license
231	231	issued under this chapter.
232	232	(c) A license issued under this chapter is not transferable
233	233	and may be used only by the person, including a single foundation
234	234	repair company, listed on the license.
235	235	Sec. 1003.152. LICENSE CLASSIFICATIONS. The department
236	236	shall issue foundation repair company, master, journeyman, and
237	237	estimator licenses.
238	238	Sec. 1003.153. FOUNDATION REPAIR COMPANY LICENSE. (a) A
239	239	foundation repair company license entitles the license holder to
240	240	engage in business as a foundation repair company.
241	241	(b) To be eligible for a foundation repair company license:
242	242	(1) if the applicant is an individual, the applicant
243	243	must:
244	244	(A) submit proof that the applicant owns the
245	245	foundation repair company as a sole proprietor;
246	246	(B) be a master license holder or submit proof
247	247	that the applicant will employ at least one master license holder
248	248	full-time;
249	249	(C) submit proof that the applicant has
250	250	insurance that meets the requirements of commission rules; and
251	251	(D) pass a criminal history background check; or
252	252	(2) if the applicant is a business entity:
253	253	(A) the applicant must identify each principal of
254	254	the applicant, including:
255	255	(i) the name and address of each partner, if
256	256	the applicant is a partnership; and
257	257	(ii) the name and address of the president,
258	258	secretary, and treasurer, if the applicant is a corporation;
259	259	(B) the applicant must submit proof that the
260	260	applicant will employ at least one master license holder full-time;
261	261	(C) the applicant must submit proof that the
262	262	applicant has insurance that meets the requirements of commission
263	263	rules; and
264	264	(D) each principal of the applicant must pass a
265	265	criminal history background check.
266	266	Sec. 1003.154. MASTER LICENSE. (a) A master license
267	267	entitles the license holder to engage in foundation repair
268	268	contracting.
269	269	(b) An applicant for a master license under this chapter
270	270	must:
271	271	(1) be at least 21 years of age;
272	272	(2) have at least 60 months of documented, practical
273	273	work experience performing foundation repair contracting under the
274	274	supervision of a master license holder during the preceding 10
275	275	years or substantially equivalent experience as determined by the
276	276	department;
277	277	(3) pass a criminal history background check; and
278	278	(4) pass an examination administered by the
279	279	department.
280	280	Sec. 1003.155. JOURNEYMAN LICENSE. (a) A journeyman
281	281	license entitles the license holder to engage in foundation repair
282	282	contracting under the supervision of a master license holder.
283	283	(b) An applicant for a journeyman license under this chapter
284	284	must:
285	285	(1) be at least 21 years of age;
286	286	(2) have at least 24 months of documented, practical
287	287	work experience in foundation repair contracting under the
288	288	supervision of a master license holder during the preceding 10
289	289	years or substantially equivalent experience as determined by the
290	290	department;
291	291	(3) pass a criminal history background check; and
292	292	(4) pass an examination administered or accepted by
293	293	the department.
294	294	Sec. 1003.156. ESTIMATOR LICENSE. (a) An estimator
295	295	license entitles the license holder to engage in providing
296	296	estimates or preparations for foundation repair contracting or
297	297	foundation repair work under the supervision of a master or
298	298	journeyman license holder.
299	299	(b) An applicant for an estimator license under this chapter
300	300	must:
301	301	(1) be at least 18 years of age;
302	302	(2) pass a criminal history background check; and
303	303	(3) pass an examination administered or accepted by
304	304	the department.
305	305	Sec. 1003.157. PRACTICAL EXPERIENCE. (a) An applicant who
306	306	holds a degree or diploma or completes a certification program from
307	307	an institution of higher education that is accredited by an
308	308	accrediting agency recognized by the Texas Higher Education
309	309	Coordinating Board, holds a certificate of authority to grant
310	310	degrees issued by the Texas Higher Education Coordinating Board, or
311	311	is similarly authorized to award degrees by an equivalent governing
312	312	body in another state as determined by the executive director may
313	313	substitute:
314	314	(1) a four-year degree or diploma in engineering for
315	315	24 months of practical experience required under this subchapter;
316	316	(2) a two-year associate's degree, a two-year diploma,
317	317	or a two-year certification program primarily focused on
318	318	engineering or construction-related work for 12 months of practical
319	319	experience required under this subchapter;
320	320	(3) a one-year certification program, or a program
321	321	that is not less than two semesters, in engineering or
322	322	construction-related work for six months of practical experience
323	323	required under this subchapter; and
324	324	(4) a program resulting in another applicable degree,
325	325	diploma, or certificate for an amount of practical experience
326	326	required under this subchapter as determined by the department
327	327	under commission rule.
328	328	(b) Each of the following qualifies as practical experience
329	329	required under this subchapter:
330	330	(1) verified military service in which the person was
331	331	trained in or performed related engineering or
332	332	construction-related work as part of the person's military
333	333	occupational specialty; and
334	334	(2) experience performing engineering or construction
335	335	work related to foundation repair while employed by a governmental
336	336	entity.
337	337	(c) An applicant who has substantially equivalent
338	338	experience obtained in another state and who held a similar license
339	339	in that state may receive credit for the experience as determined by
340	340	the department under commission rule.
341	341	Sec. 1003.158. APPLICATION. (a) An applicant for a license
342	342	must submit an application on the form prescribed by the executive
343	343	director.
344	344	(b) The application must specify the class of license for
345	345	which the applicant is applying and include the required fees.
346	346	(c) The application for a master or journeyman license must
347	347	include a statement containing evidence satisfactory to the
348	348	department of the applicant's required practical experience.
349	349	(d) The applicant must submit any other information
350	350	required by the executive director or by commission rule.
351	351	(e) The department may deny an application for a license or
352	352	for the renewal of a license if the applicant has previously had a
353	353	license under this chapter revoked or if the applicant has violated
354	354	an order of the commission or the executive director, including an
355	355	order imposing sanctions or an administrative penalty.
356	356	Sec. 1003.159. EXAMINATIONS. (a) The executive director
357	357	shall prescribe a separate examination for each class of license
358	358	under this chapter, except that an examination is not required for a
359	359	foundation repair company license.
360	360	(b) The executive director shall prescribe the method and
361	361	content of an examination required under this chapter and may
362	362	approve and accept results of an examination administered by
363	363	another organization.
364	364	Sec. 1003.160. ISSUANCE AND TERM OF LICENSE. (a) The
365	365	department shall issue a license to an applicant who meets the
366	366	requirements of this chapter and rules adopted under this chapter.
367	367	(b) A license issued under this chapter is valid for one
368	368	year and expires on the first anniversary of the date the license is
369	369	issued.
370	370	Sec. 1003.161. RENEWAL OF LICENSE. (a) To renew a license,
371	371	the license holder must:
372	372	(1) submit a renewal application in the form
373	373	prescribed by the executive director;
374	374	(2) pay the required fee; and
375	375	(3) show evidence of having completed the continuing
376	376	education requirements established under Section 1003.162, if
377	377	applicable.
378	378	(b) In addition to the requirements of Subsection (a), an
379	379	applicant to renew a foundation repair company license must also
380	380	meet the requirements of Section 1003.153(b).
381	381	(c) In addition to the requirements of Subsection (a), an
382	382	applicant to renew a master, journeyman, or estimator license must
383	383	pass a criminal history background check.
384	384	Sec. 1003.162. CONTINUING EDUCATION. (a) The commission
385	385	by rule shall recognize, prepare, or administer continuing
386	386	education programs for license holders. Each master, journeyman,
387	387	and estimator license holder must complete a continuing education
388	388	program before the license holder may renew the license holder's
389	389	master license or journeyman license.
390	390	(b) A person recognized by the commission to offer a
391	391	continuing education program must:
392	392	(1) register with the department; and
393	393	(2) comply with rules adopted by the commission
394	394	relating to continuing education.
395	395	SUBCHAPTER E. PRACTICE BY LICENSE HOLDERS
396	396	Sec. 1003.201. DELEGATION; SUPERVISION OF LABORERS AND
397	397	CERTAIN EMPLOYEES. (a) A person holding a master or journeyman
398	398	license may delegate to a laborer under the license holder's
399	399	supervision any foundation repair work that does not require a
400	400	license under this chapter.
401	401	(b) A master license holder is responsible for foundation
402	402	repair work performed by a journeyman, estimator, laborer, or other
403	403	employee of a foundation repair company who is not required to hold
404	404	a license under this chapter under the supervision of the master
405	405	license holder.
406	406	(c) A journeyman license holder is responsible for
407	407	foundation repair work performed by a laborer or other employee of a
408	408	foundation repair company who is not required to hold a license
409	409	under this chapter under the supervision of the journeyman license
410	410	holder.
411	411	(d) The department may determine whether a specific act
412	412	constitutes foundation repair work under this chapter.
413	413	(e) A person who does not hold an appropriate license under
414	414	this chapter may not supervise a person who holds a license under
415	415	this chapter in performing foundation repair contracting or
416	416	foundation repair work.
417	417	Sec. 1003.202. PRACTICE; FOUNDATION REPAIR COMPANY. (a) A
418	418	foundation repair company must be a sole proprietorship owned by a
419	419	master license holder or employ at least one master license holder
420	420	full-time who is designated as the company's master license holder.
421	421	(b) Not later than the 30th day after the date a master
422	422	license holder required by Subsection (a) leaves the employment of
423	423	a foundation repair company, the company shall submit to the
424	424	department satisfactory evidence of a replacement master license
425	425	holder.
426	426	(c) A foundation repair company license holder that does not
427	427	meet the requirements of Subsection (a) at the time foundation
428	428	repair contracting services are performed may not collect a fee or
429	429	otherwise enforce a contract for those services.
430	430	(d) A master license holder designated under Subsection (a)
431	431	is responsible for the foundation repair company's compliance with
432	432	this chapter and rules adopted under this chapter.
433	433	(e) A master license holder may not be designated under
434	434	Subsection (a) for more than one foundation repair company at any
435	435	time.
436	436	Sec. 1003.203. PROHIBITED PRACTICES. (a) A license holder
437	437	may not perform or offer or attempt to perform an act, service, or
438	438	function that is:
439	439	(1) defined as the practice of engineering under
440	440	Chapter 1001, unless the individual holds a license under that
441	441	chapter;
442	442	(2) defined as the practice of architecture under
443	443	Chapter 1051, unless the individual holds a license under that
444	444	chapter;
445	445	(3) regulated under Chapter 113, Natural Resources
446	446	Code, unless the individual holds a license or is exempt by rule
447	447	under that chapter; or
448	448	(4) defined as plumbing under Chapter 1301, unless the
449	449	individual holds a license under that chapter.
450	450	(b) A license holder may not:
451	451	(1) fail to provide services for which payment has
452	452	been made;
453	453	(2) fail to honor the terms of a contract in the
454	454	absence of a good faith dispute;
455	455	(3) knowingly misrepresent a necessary service,
456	456	service to be provided, or service that has been provided;
457	457	(4) make a fraudulent promise to induce an individual
458	458	to contract for a service; or
459	459	(5) perform foundation repair work that requires a
460	460	permit from a political subdivision without first obtaining the
461	461	required permit.
462	462	(c) A person licensed under this chapter may not use the
463	463	services of or assist a person to perform foundation repair
464	464	contracting or foundation repair work if the other person is
465	465	required to hold a license under this chapter and does not hold the
466	466	appropriate license.
467	467	SUBCHAPTER F. LOCAL REGULATION
468	468	Sec. 1003.251. DEFINITIONS. In this subchapter:
469	469	(1) "Local political subdivision" means a county or
470	470	municipality in which a person seeks to perform foundation repair
471	471	work or foundation repair contracting.
472	472	(2) "Local regulation" means an order adopted by a
473	473	county commissioners court or an ordinance or other regulation
474	474	adopted by a municipality.
475	475	Sec. 1003.252. APPLICATION OF LOCAL ORDINANCE. This
476	476	chapter does not affect a person's obligation to comply with a local
477	477	regulation establishing a permit, inspection, or approval process
478	478	in connection with foundation repair work.
479	479	Sec. 1003.253. LOCAL STANDARDS. (a) The standard for the
480	480	practice of foundation repair work or foundation repair contracting
481	481	in a local political subdivision is the standard established by
482	482	local regulation if the standard is not less stringent than the
483	483	standard imposed by this chapter.
484	484	(b) A person who holds a license issued under this chapter
485	485	is not required to hold a license issued by a local political
486	486	subdivision or take an examination required by a local regulation
487	487	to engage in foundation repair work or foundation repair
488	488	contracting.
489	489	Sec. 1003.254. NOTICE TO LOCAL POLITICAL SUBDIVISION. (a)
490	490	A person who obtains a foundation repair company license shall
491	491	provide notice to a local political subdivision if required to
492	492	perform work in the local political subdivision.
493	493	(b) The notice must be in a form required by the local
494	494	political subdivision.
495	495	SUBCHAPTER G. ENFORCEMENT
496	496	Sec. 1003.301. ADMINISTRATIVE PENALTY. The commission or
497	497	the executive director may impose an administrative penalty on a
498	498	person under Subchapter F, Chapter 51, regardless of whether the
499	499	person holds a license under this chapter.
500	500	Sec. 1003.302. ADMINISTRATIVE SANCTIONS. The commission
501	501	may impose administrative sanctions as provided by Section 51.353.
502	502	Sec. 1003.303. CRIMINAL PENALTY; LICENSING. (a) A person
503	503	commits an offense if the person:
504	504	(1) violates the licensing requirements of this
505	505	chapter;
506	506	(2) employs an individual who does not hold the
507	507	appropriate license required by this chapter, other than a laborer;
508	508	or
509	509	(3) submits to the department a false document
510	510	relating to work experience, certification, or training in
511	511	connection with an application for a license under this chapter.
512	512	(b) An offense under this section is a Class C misdemeanor.
513	513	SUBCHAPTER H. INITIAL LICENSING
514	514	Sec. 1003.351. DEFINITIONS. In this subchapter:
515	515	(1) "Manager" means a person employed by a foundation
516	516	repair company or similar entity, regardless of whether that
517	517	company or entity holds a license under this chapter, to direct and
518	518	perform foundation repair work, including foundation installation
519	519	and lifting.
520	520	(2) "Salesperson" means a person who engages in the
521	521	selection of methods used to repair or maintain a foundation,
522	522	including estimation of the cost of labor and materials.
523	523	Sec. 1003.352. WAIVER OF EXAMINATION REQUIREMENT. (a) The
524	524	department shall waive the examination requirement under Section
525	525	1003.154(b) for a master license for an applicant who meets the
526	526	requirements of this subchapter.
527	527	(b) The department shall waive the examination requirement
528	528	under Section 1003.155(b) for a journeyman license for an applicant
529	529	who meets the requirements of this subchapter.
530	530	Sec. 1003.353. INITIAL LICENSING. (a) The department
531	531	shall issue a master license to a qualified applicant who:
532	532	(1) submits an application not later than September 1,
533	533	2014; and
534	534	(2) has been an owner or manager of a foundation repair
535	535	company or similar entity for at least 60 months, regardless of
536	536	whether that company or entity holds a license under this chapter.
537	537	(b) The department shall issue a journeyman license to a
538	538	qualified applicant who:
539	539	(1) submits an application not later than September 1,
540	540	2014; and
541	541	(2) has worked for a foundation repair company or
542	542	similar entity as a salesperson, estimator, or manager for at least
543	543	24 months, regardless of whether that company or entity holds a
544	544	license under this chapter.
545	545	Sec. 1003.354. RENEWAL OF LICENSE. To qualify to renew an
546	546	initial license issued under this subchapter, the license holder
547	547	must comply with the requirements of Section 1003.161.
548	548	Sec. 1003.355. EXPIRATION OF SUBCHAPTER. This subchapter
549	549	expires October 1, 2014.
550	550	SECTION 2. (a) Notwithstanding the requirement of Section
551	551	1003.051(a)(3), Occupations Code, as added by this Act, the Texas
552	552	Commission of Licensing and Regulation shall appoint persons who
553	553	meet the practical experience requirement for an initial master
554	554	license to serve as initial members of the Foundation Repair
555	555	Advisory Board as soon as practicable after the effective date of
556	556	this Act.
557	557	(b) The Texas Commission of Licensing and Regulation shall
558	558	determine with respect to the members of the Foundation Repair
559	559	Advisory Board appointed under Chapter 1003, Occupations Code, as
560	560	added by this Act, which terms of three members expire February 1,
561	561	2015, which terms of three members expire February 1, 2017, and
562	562	which terms of three members expire February 1, 2019.
563	563	(c) The changes in law made by Section 1003.202(c),
564	564	Occupations Code, as added by this Act, apply only to a contract for
565	565	foundation repair entered into or renewed on or after September 1,
566	566	2014. A contract for foundation repair entered into or renewed
567	567	before September 1, 2014, is governed by the law as it existed on
568	568	the date the contract was entered into, and the former law is
569	569	continued in effect for that purpose.
570	570	SECTION 3. (a) The Texas Commission of Licensing and
571	571	Regulation shall adopt rules to implement Chapter 1003, Occupations
572	572	Code, as added by this Act, not later than February 1, 2014.
573	573	(b) Not later than March 1, 2014, the Texas Commission of
574	574	Licensing and Regulation shall begin accepting applications for and
575	575	issuing licenses under Chapter 1003, Occupations Code, as added by
576	576	this Act.
577	577	(c) A person is not required to obtain a license to engage in
578	578	foundation repair contracting or foundation repair work under
579	579	Chapter 1003, Occupations Code, as added by this Act, before
580	580	September 1, 2014.
581	581	SECTION 4. (a) Except as provided by Subsection (b) of this
582	582	section, this Act takes effect September 1, 2013.
583	583	(b) Section 1003.151 and Subchapter G, Chapter 1003,
584	584	Occupations Code, as added by this Act, take effect September 1,
585	585	2014.