Texas 2015 - 84th Regular

Texas House Bill HB3148 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R2193 MAW-F
2	2	By: Rodriguez of Travis H.B. No. 3148
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of construction contractors; providing
8	8	an administrative penalty; requiring an occupational registration;
9	9	authorizing a fee.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Title 8, Occupations Code, is amended by adding
12	12	Chapter 1306 to read as follows:
13	13	CHAPTER 1306. CONSTRUCTION CONTRACTORS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1306.001. DEFINITIONS. In this chapter:
16	16	(1) "Commission" means the Texas Commission of
17	17	Licensing and Regulation.
18	18	(2) "Construction" means work related to the erection,
19	19	improvement, alteration, repair, renovation, maintenance, or
20	20	remodeling of a building, structure, appurtenance, road, highway,
21	21	bridge, dam, levee, canal, jetty, or other improvement to or on real
22	22	property, including moving, demolishing, dredging, shoring,
23	23	drilling, blasting, and excavating real property.
24	24	(3) "Construction contractor" means a person who:
25	25	(A) contracts to perform construction for
26	26	compensation; and
27	27	(B) employs one or more employees to perform the
28	28	construction.
29	29	(4) "Controlling person" means an individual who:
30	30	(A) is an owner, officer, or director of a
31	31	construction contractor; or
32	32	(B) possesses direct or indirect control of 25
33	33	percent or more of a construction contractor.
34	34	(5) "Department" means the Texas Department of
35	35	Licensing and Regulation.
36	36	(6) "Employee" has the meaning assigned by Section
37	37	61.001, Labor Code.
38	38	(7) "Executive director" means the executive director
39	39	of the department.
40	40	(8) "Independent contractor" means a person who
41	41	contracts to perform construction for compensation and who
42	42	ordinarily:
43	43	(A) acts as the employer of any employee of the
44	44	person by paying wages, directing activities, and performing other
45	45	similar functions characteristic of an employer-employee
46	46	relationship;
47	47	(B) is free to determine the manner in which the
48	48	construction is performed, including the hours of labor of or
49	49	method of payment to any employee;
50	50	(C) is required to furnish or to have employees,
51	51	if any, furnish necessary tools, supplies, or materials to perform
52	52	the construction; and
53	53	(D) possesses the skills required for the
54	54	specific type of construction.
55	55	Sec. 1306.002. EXEMPTIONS. (a) This chapter does not apply
56	56	to:
57	57	(1) the manufacture, distribution, or sale of a
58	58	product, material, or merchandise; or
59	59	(2) landscaping services that:
60	60	(A) consist only of the maintenance or removal of
61	61	existing plants, shrubs, trees, or other vegetation; or
62	62	(B) are not provided in connection with other
63	63	construction work that the person performing the landscaping
64	64	services has also contracted to perform.
65	65	(b) A construction contractor who holds a license,
66	66	certificate, or registration under Title 6 or this title is not
67	67	required to register under this chapter to the extent the
68	68	construction services performed by the contractor do not violate
69	69	the applicable chapter under which the contractor is licensed,
70	70	certified, or registered.
71	71	SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION
72	72	Sec. 1306.051. GENERAL POWERS AND DUTIES. The department,
73	73	executive director, or commission, as appropriate, may take action
74	74	as necessary to administer and enforce this chapter.
75	75	Sec. 1306.052. RULES. The commission shall adopt rules as
76	76	necessary to administer this chapter.
77	77	Sec. 1306.053. CONSTRUCTION CONTRACTOR DATABASE. The
78	78	department shall make available on its Internet website a publicly
79	79	accessible list of construction contractors who are or have been
80	80	registered under this chapter. For each construction contractor,
81	81	the list must contain:
82	82	(1) a statement indicating whether the contractor is
83	83	registered in good standing; and
84	84	(2) information regarding whether the contractor's
85	85	registration has ever been suspended or revoked.
86	86	Sec. 1306.054. ANNUAL REPORT. (a) The department shall
87	87	submit a report to the legislature not later than September 30 of
88	88	each year regarding the registration and regulation of construction
89	89	contractors under this chapter. The report must include the
90	90	following information for the preceding fiscal year:
91	91	(1) the number of:
92	92	(A) individuals misclassified as independent
93	93	contractors by construction contractors;
94	94	(B) construction contractors assessed
95	95	administrative penalties;
96	96	(C) construction contractors who are not
97	97	registered under this chapter, if required to register;
98	98	(D) registrations suspended or revoked under
99	99	this chapter; and
100	100	(E) new registrations issued under this chapter;
101	101	(2) the total amount of administrative penalties
102	102	assessed;
103	103	(3) the total amount of administrative penalties
104	104	collected;
105	105	(4) the name of each construction contractor whose
106	106	registration was suspended or revoked; and
107	107	(5) any additional information the commission
108	108	considers necessary.
109	109	(b) On request by the department, the Texas Workforce
110	110	Commission shall provide information to the department or otherwise
111	111	assist the department in preparing the report.
112	112	SUBCHAPTER C. REGISTRATION REQUIREMENTS
113	113	Sec. 1306.101. REGISTRATION REQUIRED. A person may not act
114	114	as or offer to act as a construction contractor unless the person is
115	115	registered under this chapter.
116	116	Sec. 1306.102. APPLICATION; APPLICATION FEE. (a) An
117	117	applicant for registration must:
118	118	(1) apply to the department on a form prescribed by the
119	119	executive director and under rules adopted by the commission; and
120	120	(2) submit with the application a nonrefundable
121	121	application fee in an amount set by the commission.
122	122	(b) The commission by rule shall specify the information
123	123	that must be included on an application submitted to the
124	124	department. The rules must require that an application include the
125	125	following information for an applicant, including each controlling
126	126	person of an applicant:
127	127	(1) full legal name;
128	128	(2) business address and telephone number;
129	129	(3) tax identification number;
130	130	(4) number of employees of the applicant, if any; and
131	131	(5) if applicable:
132	132	(A) federal employer identification number;
133	133	(B) employer identification number issued to the
134	134	applicant by the Texas Workforce Commission for purposes of
135	135	unemployment compensation; and
136	136	(C) evidence that the applicant has obtained
137	137	workers' compensation insurance.
138	138	Sec. 1306.103. TERM OF REGISTRATION. A registration under
139	139	this chapter is valid for one year.
140	140	Sec. 1306.104. CHANGE IN INFORMATION. A registration
141	141	holder shall notify the department in the manner prescribed by the
142	142	department not later than the 15th day after the date of any change
143	143	that occurs in the information submitted in the application.
144	144	Sec. 1306.105. CONFIDENTIALITY. (a) Except as provided by
145	145	Subsection (b) and Section 1306.053, information submitted to the
146	146	department in an application under Section 1306.102 is confidential
147	147	and not subject to disclosure under Chapter 552, Government Code.
148	148	(b) The department shall release to the Texas Workforce
149	149	Commission information regarding an applicant for or holder of a
150	150	registration, including information regarding disciplinary action
151	151	taken against a registration holder.
152	152	SUBCHAPTER D. PENALTIES AND OTHER ENFORCEMENT PROVISIONS
153	153	Sec. 1306.151. NOTICE TO DEPARTMENT. The Texas Workforce
154	154	Commission shall notify the department if the Texas Workforce
155	155	Commission has knowledge that a person required to register under
156	156	this chapter is not registered or is otherwise violating this
157	157	chapter.
158	158	Sec. 1306.152. GROUNDS FOR LICENSE DENIAL AND DISCIPLINARY
159	159	ACTION. (a) The commission or executive director may refuse to
160	160	issue or renew a registration, revoke or suspend a registration,
161	161	place on probation a person whose registration has been suspended,
162	162	or reprimand a registration holder who violates this chapter, a
163	163	rule adopted under this chapter, or an order of the commission or
164	164	executive director.
165	165	(b) The commission or executive director shall suspend a
166	166	registration for not less than six months if the registration
167	167	holder has been:
168	168	(1) assessed a penalty under Section 214.008, Labor
169	169	Code; or
170	170	(2) convicted of an offense under:
171	171	(A) Section 61.019, Labor Code; or
172	172	(B) Section 31.04, Penal Code, if the offense
173	173	involved the theft of a service that was rendered by an employee of
174	174	the registration holder.
175	175	(c) The commission or executive director shall revoke a
176	176	registration if the registration holder is:
177	177	(1) assessed a penalty under Section 214.008, Labor
178	178	Code, before the fifth anniversary of the date of a prior penalty
179	179	assessed under that section; or
180	180	(2) convicted of an offense described by Subsection
181	181	(b)(2) before the fifth anniversary of the date of a prior
182	182	conviction for an offense described by that subsection.
183	183	Sec. 1306.153. ELIGIBILITY OF PERSON WHOSE REGISTRATION
184	184	HAS BEEN REVOKED. A person whose registration has been revoked by
185	185	order of the commission or executive director is not eligible to
186	186	submit a new application for registration until the first
187	187	anniversary of the date of the revocation.
188	188	Sec. 1306.154. PROHIBITED ACTS. A construction contractor
189	189	may not:
190	190	(1) require an individual through coercion,
191	191	misrepresentation, or fraudulent means to:
192	192	(A) perform services as an independent
193	193	contractor; or
194	194	(B) form a business entity;
195	195	(2) knowingly misclassify an employee as an
196	196	independent contractor; or
197	197	(3) knowingly contract with or pay a person for
198	198	construction services if the person is required to register under
199	199	this chapter and is not registered.
200	200	Sec. 1306.155. ADMINISTRATIVE PENALTY. The commission or
201	201	executive director may impose an administrative penalty on a person
202	202	under Subchapter F, Chapter 51, if the person is required to
203	203	register under this chapter and fails to register on or before the
204	204	30th day after the date of receiving notice from the department that
205	205	the person is required to register. The amount of the
206	206	administrative penalty may not exceed $1,000.
207	207	SECTION 2. Not later than December 1, 2015, the Texas
208	208	Commission of Licensing and Regulation, the Texas Department of
209	209	Licensing and Regulation, and the executive director of the Texas
210	210	Department of Licensing and Regulation, as appropriate, shall adopt
211	211	rules and forms necessary to implement Chapter 1306, Occupations
212	212	Code, as added by this Act.
213	213	SECTION 3. (a) Except as provided by Subsection (b) of this
214	214	section, this Act takes effect September 1, 2015.
215	215	(b) Section 1306.101, Occupations Code, and Subchapter D,
216	216	Chapter 1306, Occupations Code, as added by this Act, take effect
217	217	January 1, 2016.