Texas 2019 - 86th Regular

Texas House Bill HB2101 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R22537 TSR-F
2		-	By: Capriglione, et al. H.B. No. 2101
3		-	Substitute the following for H.B. No. 2101:
4		-	By: Martinez Fischer C.S.H.B. No. 2101
	1	+	86R5254 TSR-F
	2	+	By: Capriglione H.B. No. 2101
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the regulation of reroofing contractors; providing
10		-	administrative and civil penalties; authorizing fees; ~~requiring an~~
11		-	occupational registration.
	8	+	administrative and civil penalties; authorizing fees; creating a
	9	+	criminal offense; requiring an occupational registration.
12	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	11		SECTION 1. Title 8, Occupations Code, is amended by adding
14	12		Chapter 1306 to read as follows:
15	13		CHAPTER 1306. REROOFING CONTRACTORS
16	14		SUBCHAPTER A. GENERAL PROVISIONS
17	15		Sec. 1306.001. SHORT TITLE. This chapter may be cited as
18	16		the Reroofing Contractor Registration Act.
19	17		Sec. 1306.002. DEFINITIONS. In this chapter:
20		-	(1) "Commission" means the Texas Commission of
	18	+	(1) "Advisory board" means the Reroofing Contractor
	19	+	Advisory Board.
	20	+	(2) "Commission" means the Texas Commission of
21	21		Licensing and Regulation.
22		-	(2) "Department" means the Texas Department of
	22	+	(3) "Department" means the Texas Department of
23	23		Licensing and Regulation.
24		-	(3) "Executive director" means the executive director
	24	+	(4) "Executive director" means the executive director
25	25		of the department.
26		-	(4) "Person" means an individual or business entity.
27		-	(5) "Registered reroofing contractor" means a
	26	+	(5) "Person" means an individual or business entity.
	27	+	(6) "Registered reroofing contractor" means a
28	28		reroofing contractor who is registered under this chapter and who
29		-	holds a statement of registration number issued under this chapter.
30		-	(6) "Reroofing contractor" means a person who:
	29	+	holds a valid statement of registration number issued under this
	30	+	chapter.
	31	+	(7) "Reroofing contractor" means a person who:
31	32		(A) engages in repairing, recovering, or
32	33		replacing existing roof coverings on residential or commercial
33	34		structures; or
34	35		(B) solicits, advertises, or contracts to
35	36		repair, recover, or replace existing roof coverings on residential
36	37		or commercial structures.
37		-	(7) "Reroofing project" means a project to repair,
	38	+	(8) "Reroofing project" means a project to repair,
38	39		recover, or replace an existing roof covering on a residential or
39	40		commercial structure.
40		-	Sec. 1306.003. EXEMPTIONS. (a) This chapter does not apply
41		-	to:
	41	+	Sec. 1306.003. EXEMPTIONS. This chapter does not apply to:
42	42		(1) an owner of residential property or property
43	43		primarily used for agricultural purposes, or an employee of the
44	44		owner, who performs a reroofing project on the owner's property;
45	45		(2) an authorized employee or representative of the
46	46		United States government, this state, or a county, municipality, or
47	47		other political subdivision of this state acting in an official
48	48		capacity;
49	49		(3) the new construction of a residential or
50		-	commercial structure;
51		-	(4) a person performing a minor reroofing project the
52		-	value of which does not exceed $500;
53		-	(5) a person who is licensed as a retailer of
54		-	manufactured homes under Chapter 1201 and is performing a reroofing
55		-	project on a manufactured home as defined by Section 1201.003;
56		-	(6) subject to Subsection (b), an individual who is a
57		-	sales manager, project manager, or other individual employed or
58		-	otherwise engaged by a registered reroofing contractor in the
59		-	ordinary course of the contractor's business if the individual does
60		-	not otherwise engage in repairing, recovering, or replacing
61		-	existing roof coverings on residential or commercial structures; or
62		-	(7) an individual who otherwise engages in repairing,
63		-	recovering, or replacing existing roof coverings on residential or
64		-	commercial structures as an employee of or under contract with a
65		-	registered reroofing contractor if the individual is not involved
66		-	in soliciting, advertising, or executing contracts for the
67		-	contractor.
68		-	(b) An individual described by Subsection (a)(6) shall
69		-	operate in the name of the registered reroofing contractor and the
70		-	contractor is responsible for the conduct of that individual in
71		-	complying with the requirements of this chapter.
72		-	Sec. 1306.004. APPLICATION OF CHAPTER. This chapter does
73		-	not authorize a registered reroofing contractor to engage in:
74		-	(1) the practice of engineering as defined by Section
75		-	1001.003; or
76		-	(2) the practice of architecture as defined by Section
77		-	1051.001.
	50	+	commercial structure; or
	51	+	(4) a person performing a minor repair of an existing
	52	+	roof covering if the value of the repair does not exceed $500.
78	53		SUBCHAPTER B. POWERS AND DUTIES
79	54		Sec. 1306.051. GENERAL POWERS AND DUTIES. The department
80	55		shall administer and enforce this chapter.
81	56		Sec. 1306.052. RULES. (a) The commission by rule shall:
82	57		(1) prescribe the requirements for the issuance and
83		-	renewal of a registration under this chapter; and
84		-	(2) with respect to reroofing projects on property
	58	+	renewal of a registration under this chapter;
	59	+	(2) adopt a code of ethics for reroofing contractors;
	60	+	and
	61	+	(3) with respect to reroofing projects on property
85	62		located in an area for which the governor declares a state of
86		-	disaster under Chapter 418, Government Code, provide for the
87		-	issuance of a temporary emergency registration at a reduced fee.
	63	+	disaster under Chapter 418, Government Code, provide for:
	64	+	(A) a temporary exception to the requirements of
	65	+	this chapter; and
	66	+	(B) the temporary recognition of reroofing
	67	+	contractors licensed or registered in good standing in another
	68	+	state.
88	69		(b) The commission may adopt additional rules as necessary
89	70		to administer this chapter.
90	71		Sec. 1306.053. FEES. (a) Except as provided by Subsection
91	72		(b), the commission shall establish and collect reasonable and
92	73		necessary fees in amounts sufficient to cover the costs of
93	74		administering this chapter.
94	75		(b) The fees adopted under this chapter must include fees
95	76		for:
96	77		(1) an initial application for registration, in an
97	78		amount not to exceed $250; and
98	79		(2) the renewal of a registration, in an amount not to
99	80		exceed $100.
100	81		Sec. 1306.054. REGISTRATION DATABASE. The department shall
101	82		make available on its Internet website a publicly accessible list
102	83		of all registered reroofing contractors who are in good standing.
103	84		The list must be searchable by name and location. The list must
104	85		contain the following for each registered reroofing contractor:
105	86		(1) the name, mailing address, and telephone number of
106	87		the reroofing contractor;
107		-	(2) a summary of any disciplinary action taken by the
	88	+	(2) the date of initial registration;
	89	+	(3) information concerning the reroofing contractor's
	90	+	insurance coverage, if reported by the reroofing contractor;
	91	+	(4) a summary of any disciplinary action taken by the
108	92		department against the reroofing contractor; and
109		-	(3) any other information required by the department.
	93	+	(5) any other information required by the department.
110	94		Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or
111	95		municipal building official may not grant or approve a building or
112	96		construction permit for a reroofing project unless the applicant
113	97		for the permit is:
114	98		(1) a registered reroofing contractor; or
115	99		(2) exempt from registration under this chapter.
116	100		(b) On request of a county or municipal building official,
117	101		the department shall verify the registration of an applicant
118	102		described by Subsection (a). The department shall establish a
119	103		verification system to ensure a timely response to a request for
120	104		verification of a registration.
	105	+	Sec. 1306.056. ADVISORY BOARD. (a) The Reroofing
	106	+	Contractor Advisory Board shall advise the commission in adopting
	107	+	rules under this chapter.
	108	+	(b) The advisory board consists of seven members appointed
	109	+	by the executive director as follows:
	110	+	(1) three reroofing contractors;
	111	+	(2) one member of the board of directors of the Roofing
	112	+	Contractors Association of Texas, or a successor organization;
	113	+	(3) one county or municipal building official in this
	114	+	state; and
	115	+	(4) two members who represent the public.
	116	+	(c) Appointments to the advisory board shall be made without
	117	+	regard to the race, color, disability, sex, religion, age, or
	118	+	national origin of the appointee.
	119	+	(d) Members of the advisory board serve three-year terms.
	120	+	(e) Chapter 2110, Government Code, does not apply to the
	121	+	size, composition, or duration of the advisory board.
	122	+	(f) Advisory board members may not receive compensation for
	123	+	serving as a member.
121	124		SUBCHAPTER C. REGISTRATION REQUIREMENTS
122	125		Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the
123	126		person holds a registration issued under this chapter, a person may
124	127		not:
125	128		(1) perform or otherwise engage in a reroofing
126	129		project; or
127	130		(2) solicit, advertise, or contract to perform or
128	131		engage in a reroofing project.
129	132		(b) A registration under this chapter shall be issued in the
130	133		form of a statement of registration number.
131	134		(c) A registration issued under this chapter:
132	135		(1) is valid only with respect to the person named on
133	136		the registration; and
134	137		(2) authorizes the registration holder to operate as a
135	138		reroofing contractor.
136	139		(d) A person may obtain a registration for more than one
137	140		business entity. A registration is not transferable.
138		-	Sec. 1306.102. APPLICATION FOR REGISTRATION. (a) An
	141	+	Sec. 1306.102. EXEMPTION FROM REGISTRATION. (a) A person
	142	+	is not required to be registered under this chapter if:
	143	+	(1) subject to Subsection (b), the person is a sales
	144	+	manager, project manager, or other person employed or otherwise
	145	+	used by a registered reroofing contractor in the ordinary course of
	146	+	the contractor's business if the person does not engage in
	147	+	repairing, recovering, or replacing an existing roof covering; or
	148	+	(2) the person engages in repairing, recovering, or
	149	+	replacing an existing roof covering as an employee of or under
	150	+	contract with a registered reroofing contractor and the person is
	151	+	not involved in soliciting, advertising, or executing contracts for
	152	+	the contractor.
	153	+	(b) A person described by Subsection (a)(1) shall operate in
	154	+	the name of the registered reroofing contractor. The reroofing
	155	+	contractor is responsible for the conduct of that person in
	156	+	complying with the requirements of this chapter.
	157	+	Sec. 1306.103. APPLICATION FOR REGISTRATION. (a) An
139	158		applicant for registration shall submit an application to the
140	159		department on a form prescribed by the executive director.
141	160		(b) The application must be accompanied by:
142	161		(1) if the applicant is an individual, proof of the
143	162		applicant's identity;
144	163		(2) if the applicant is a business entity, proof of the
145	164		applicant's existence and confirmation of authority to conduct
146	165		business in this state under a certificate of status issued by the
147	166		secretary of state that is in good standing;
148	167		(3) proof of the mailing address and telephone number
149	168		of the applicant's residence or business location; and
150	169		(4) the application fee.
151		-	Sec. 1306.~~103~~. ISSUANCE OF REGISTRATION; TERM. (a) The
	170	+	Sec. 1306.104. ISSUANCE OF REGISTRATION; TERM. (a) The
152	171		department shall issue a registration to an applicant who complies
153	172		with the registration requirements of this chapter not later than
154		-	the ~~10th~~ day after the date the department receives the
	173	+	the 14th day after the date the department receives the
155	174		application.
156	175		(b) A registration is valid for two years from the date of
157	176		issuance and may be renewed before expiration in the manner
158		-	provided by Section 1306.~~104~~.
159		-	Sec. 1306.~~104~~. RENEWAL OF REGISTRATION. (a) To renew a
	177	+	provided by Section 1306.105.
	178	+	Sec. 1306.105. RENEWAL OF REGISTRATION. (a) To renew a
160	179		registration, a reroofing contractor shall submit an application
161	180		for renewal to the department on a form prescribed by the executive
162	181		director.
163	182		(b) The application must be accompanied by:
164	183		(1) documentation of any changes in the reroofing
165	184		contractor's information submitted to the department under Section
166		-	1306.~~102~~(b); and
	185	+	1306.103(b); and
167	186		(2) the renewal fee.
168	187		SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
169	188		Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
170	189		registered reroofing contractor shall include the contractor's
171	190		registration number in each:
172	191		(1) contract for a reroofing project in the manner
173	192		provided by Section 1306.153; and
174	193		(2) advertisement for a reroofing service by the
175	194		contractor, including on each business card, flyer, or door card
176	195		and in each television, radio, social media, or newspaper
177	196		advertisement.
178	197		(b) Other than the inclusion of a registration number in the
179	198		manner prescribed by this section, a reroofing contractor may not
180	199		make any representation or statement regarding the effect of being
181	200		issued a registration under this chapter or the fact that the
182	201		contractor has been issued a registration under this chapter.
183	202		Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
184	203		DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
185	204		advertise or promise to pay or rebate all or part of an insurance
186	205		deductible in connection with a reroofing project in violation of
187	206		Section 27.02, Business & Commerce Code.
188	207		Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
189	208		engaging in a reroofing project, a registered reroofing contractor
190	209		must provide a written contract to the property owner that is signed
191		-	by the reroofing contractor and the property owner.
	210	+	by the reroofing contractor or the contractor's designee and the
	211	+	property owner.
192	212		(b) A written contract under Subsection (a) must include:
193	213		(1) the following statement printed in at least
194	214		12-point bold type: "The work to be performed under this contract
195	215		must commence not later than the 30th day after the date the
196	216		reroofing contractor collects an initial payment, unless a longer
197	217		period is agreed to in writing and signed by both parties to this
198	218		contract.";
199	219		(2) the reroofing contractor's contact information,
200	220		including physical address, e-mail address, and telephone number;
201	221		(3) the reroofing contractor's policy regarding
202		-	cancellation of the contract, which must be consistent with state
203		-	law;
	222	+	cancellation of the contract; and
204	223		(4) the reroofing contractor's registration number in
205	224		at least 12-point bold type in the following form: "Texas
206		-	Registered Reroofing Contractor Number (registration number)"; and
207		-	(5) the department's contact information for the
208		-	purpose of directing complaints to the department.
	225	+	Registered Reroofing Contractor Number (registration number)."
209	226		Sec. 1306.154. COMPLIANCE WITH OTHER LAW. (a) A registered
210	227		reroofing contractor shall comply with each applicable:
211	228		(1) building code adopted by this state or a political
212	229		subdivision of this state; and
213	230		(2) order, ordinance, or rule of a political
214	231		subdivision relating to the issuance of a permit for or the
215	232		performance of a reroofing project in the political subdivision.
216	233		(b) A registered reroofing contractor shall comply with
217	234		Chapter 58, Business & Commerce Code, during a natural disaster, as
218	235		that term is defined by Section 58.001, Business & Commerce Code.
	236	+	(c) The registered reroofing contractor's contract
	237	+	cancellation policy must be consistent with state law.
219	238		SUBCHAPTER E. ENFORCEMENT
220	239		Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The
221	240		department shall investigate any complaint alleging a violation of
222	241		this chapter or a rule adopted under this chapter.
223	242		(b) A complaint must be filed in a manner prescribed by the
224	243		department.
225	244		Sec. 1306.202. ADMINISTRATIVE PENALTY. The commission or
226	245		executive director may impose an administrative penalty on a person
227	246		under Subchapter F, Chapter 51, regardless of whether the person is
228	247		registered under this chapter, if the person violates:
229	248		(1) this chapter or a rule adopted under this chapter;
230	249		or
231	250		(2) an order of the commission or executive director.
232	251		Sec. 1306.203. SANCTIONS. The commission may impose
233	252		sanctions as provided by Section 51.353.
234	253		Sec. 1306.204. CEASE AND DESIST ORDER. The executive
235	254		director may issue a cease and desist order under Section 51.3513 to
236	255		prohibit any person from performing or engaging in a reroofing
237	256		project if the person is not in compliance with this chapter.
238		-	Sec. 1306.205. CIVIL PENALTY. The attorney general or
239		-	executive director may institute an action for a civil penalty
240		-	under this chapter as provided by Section 51.352. The amount of a
241		-	civil penalty assessed under this section may not exceed $500 for
242		-	each violation.
	257	+	Sec. 1306.205. CRIMINAL PENALTY. (a) A person commits an
	258	+	offense if the person violates this chapter.
	259	+	(b) An offense under this section is a Class C misdemeanor.
	260	+	(c) If the conduct constituting an offense under this
	261	+	section also constitutes an offense under Section 32.42(b)(12),
	262	+	Penal Code, the person may be prosecuted under either section or
	263	+	under both sections.
243	264		Sec. 1306.206. DECEPTIVE TRADE PRACTICE. A reroofing
244	265		contractor who advertises that the contractor holds a registration
245	266		under this chapter commits a false, misleading, or deceptive act or
246	267		practice within the meaning of Section 17.46, Business & Commerce
247	268		Code, if the reroofing contractor does not hold a valid
248	269		registration issued under this chapter.
249		-	SECTION 2. Not later than April 1, 2020, the Texas
250		-	Commission of Licensing and Regulation shall adopt the rules,
251		-	procedures, and fees necessary to administer Chapter 1306,
252		-	Occupations Code, as added by this Act.
	270	+	SECTION 2. The Texas Commission of Licensing and Regulation
	271	+	shall adopt rules necessary to implement Chapter 1306, Occupations
	272	+	Code, as added by this Act, not later than January 1, 2020.
253	273		SECTION 3. The Texas Department of Licensing and Regulation
254		-	~~is not required to~~ begin issuing registrations under Chapter 1306,
255		-	~~Occupations~~ Code, as added by this Act, ~~before June~~ 1, 2020.
	274	+	shall begin issuing registrations under Chapter 1306, Occupations
	275	+	Code, as added by this Act, not later than March 1, 2020.
256	276		SECTION 4. (a) Except as provided by Subsection (b) of this
257	277		section, this Act takes effect September 1, 2019.
258		-	(b) Section 1306.101, Occupations Code, and ~~Subchapter E,~~
259		-	Chapter 1306, Occupations Code, as added by this Act, take ~~effect~~
260		-	~~August~~ 1, 2020.
	278	+	(b) Section 1306.101, Occupations Code, and Subchapters D
	279	+	and E, Chapter 1306, Occupations Code, as added by this Act, take
	280	+	effect March 1, 2020.