Texas 2019 - 86th Regular

Texas House Bill HB3151 Compare Versions

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

Old	New	Differences
1	1	By: Capriglione H.B. No. 3151
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the regulation of reroofing contractors; providing
7	7	administrative and civil penalties; authorizing fees; creating a
8	8	criminal offense; requiring an occupational registration.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Title 8, Occupations Code, is amended by adding
11	11	Chapter 1306 to read as follows:
12	12	CHAPTER 1306. TEXAS BOARD ON REROOFING CONTRACTORS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 1306.001. SHORT TITLE. This chapter may be cited as
15	15	the Reroofing Contractor Registration Act.
16	16	Sec. 1306.002. PURPOSE AND LEGISLATIVE FINDINGS. (a) This
17	17	legislature finds that:
18	18	(1) there is a growing need to provide state residents
19	19	with safe, affordable, and well-constructed replacement roofs;
20	20	(2) the reroofing industry requires regulation to
21	21	ensure safe working conditions for its contractors and best
22	22	protections for reroofing consumers;
23	23	(3) statutes and rules in effect before September 1,
24	24	2019, were inadequate to:
25	25	(A) fully protect the consumer; and
26	26	(B) prevent the construction of poorly made
27	27	replacement roofs;
28	28	(4) there is a need for the state of Texas to oversee
29	29	and register reroofing contractors and to regulate the reroofing
30	30	construction industry.
31	31	(b) The purposes of this chapter are to:
32	32	(1) encourage the construction of safe roofing for
33	33	state residents; and
34	34	(2) improve the general welfare and safety of
35	35	purchasers and consumers of roofing construction.
36	36	(c) This chapter shall be liberally construed to promote its
37	37	policies and accomplish its purposes.
38	38	Sec. 1306.003. DEFINITIONS. In this chapter:
39	39	(1) "Board" means the Texas Board on Reroofing
40	40	Contractors.
41	41	(2) "Executive director" means the executive director
42	42	of the Texas Board on Reroofing Contractors.
43	43	(4) "Person" means an individual or business entity.
44	44	(5) "Registered reroofing contractor" means a
45	45	reroofing contractor who is registered under this chapter and who
46	46	holds a valid statement of registration number issued under this
47	47	chapter.
48	48	(6) "Reroofing contractor" means a person who:
49	49	(A) engages in repairing, recovering, or
50	50	replacing existing roof coverings on residential or commercial
51	51	structures; or
52	52	(B) solicits, advertises, or contracts to
53	53	repair, recover, or replace existing roof coverings on residential
54	54	or commercial structures.
55	55	(8) "Reroofing project" means a project to repair,
56	56	recover, or replace an existing roof covering on a residential or
57	57	commercial structure.
58	58	Sec. 1306.004. EXEMPTIONS. This chapter does not apply to:
59	59	(1) an owner of residential property or property
60	60	primarily used for agricultural purposes, or an employee of the
61	61	owner, who performs a reroofing project on the owner's property;
62	62	(2) an authorized employee or representative of the
63	63	United States government, this state, or a county, municipality, or
64	64	other political subdivision of this state acting in an official
65	65	capacity;
66	66	(3) the new construction of a residential or
67	67	commercial structure; or
68	68	(4) a person performing a minor repair of an existing
69	69	roof covering if the value of the repair does not exceed $500.
70	70	SUBCHAPTER B. POWERS AND DUTIES
71	71	Sec. 1306.050. TEXAS BOARD ON REROOFING CONTRACTORS. (a)
72	72	The Texas Board on Reroofing Contractors shall consists of seven
73	73	members appointed by the governor as follows:
74	74	(1) four reroofing contractors;
75	75	(2) one county or municipal building official in this
76	76	state; and
77	77	(3) two members who represent the public.
78	78	(b) Appointments to the board shall be made without regard
79	79	to the race, color, disability, sex, religion, age, or national
80	80	origin of the appointee.
81	81	(c) Members of the board serve three-year terms.
82	82	Sec.
83	83	1306.051. GENERAL POWERS AND DUTIES. The board shall
84	84	administer and enforce this chapter.
85	85	Sec. 1306.052. RULES. (a) The board by rule shall:
86	86	(1) prescribe the requirements for the issuance and
87	87	renewal of a registration under this chapter;
88	88	(2) adopt a code of ethics for reroofing contractors;
89	89	and
90	90	(3) with respect to reroofing projects on property
91	91	located in an area for which the governor declares a state of
92	92	disaster under Chapter 418, Government Code, provide for:
93	93	(A) a temporary exception to the requirements of
94	94	this chapter; and
95	95	(B) the temporary recognition of reroofing
96	96	contractors licensed or registered in good standing in another
97	97	state.
98	98	(b) The board may adopt additional rules as necessary to
99	99	administer this chapter.
100	100	Sec. 1306.053. FEES. (a) Except as provided by Subsection
101	101	(b), the board shall establish and collect reasonable and necessary
102	102	fees in amounts sufficient to cover the costs of administering this
103	103	chapter.
104	104	(b) The fees adopted under this chapter must include fees
105	105	for:
106	106	(1) an initial application for registration, in an
107	107	amount not to exceed $250; and
108	108	(2) the renewal of a registration, in an amount not to
109	109	exceed $100.
110	110	Sec. 1306.054. REGISTRATION DATABASE. The board shall make
111	111	available on its Internet website a publicly accessible list of all
112	112	registered reroofing contractors who are in good standing. The list
113	113	must be searchable by name and location. The list must contain the
114	114	following for each registered reroofing contractor:
115	115	(1) the name, mailing address, and telephone number of
116	116	the reroofing contractor;
117	117	(2) the date of initial registration;
118	118	(3) information concerning the reroofing contractor's
119	119	insurance coverage, if reported by the reroofing contractor;
120	120	(4) a summary of any disciplinary action taken by the
121	121	board against the reroofing contractor; and
122	122	(5) any other information required by the board.
123	123	Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or
124	124	municipal building official may not grant or approve a building or
125	125	construction permit for a reroofing project unless the applicant
126	126	for the permit is:
127	127	(1) a registered reroofing contractor; or
128	128	(2) exempt from registration under this chapter.
129	129	(b) On request of a county or municipal building official,
130	130	the board shall verify the registration of an applicant described
131	131	by Subsection (a). The board shall establish a verification system
132	132	to ensure a timely response to a request for verification of a
133	133	registration.
134	134	Sec. 1306.056. EXECUTIVE DIRECTOR AND STAFF. (a) The board
135	135	shall employ an executive director as the executive head of the
136	136	agency.
137	137	(b) The board may employ personnel as necessary to
138	138	administer this chapter. The board may determine the compensation
139	139	and duties of its employees and the terms of their employment.
140	140	SUBCHAPTER C. REGISTRATION REQUIREMENTS
141	141	Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the
142	142	person holds a registration issued under this chapter, a person may
143	143	not:
144	144	(1) perform or otherwise engage in a reroofing
145	145	project; or
146	146	(2) solicit, advertise, or contract to perform or
147	147	engage in a reroofing project.
148	148	(b) A registration under this chapter shall be issued in the
149	149	form of a statement of registration number.
150	150	(c) A registration issued under this chapter:
151	151	(1) is valid only with respect to the person named on
152	152	the registration; and
153	153	(2) authorizes the registration holder to operate as a
154	154	reroofing contractor.
155	155	(d) A person may obtain a registration for more than one
156	156	business entity. A registration is not transferable.
157	157	Sec. 1306.102. EXEMPTION FROM REGISTRATION. (a) A person
158	158	is not required to be registered under this chapter if:
159	159	(1) subject to Subsection (b), the person is a sales
160	160	manager, project manager, or other person employed or otherwise
161	161	used by a registered reroofing contractor in the ordinary course of
162	162	the contractor's business if the person does not engage in
163	163	repairing, recovering, or replacing an existing roof covering; or
164	164	(2) the person engages in repairing, recovering, or
165	165	replacing an existing roof covering as an employee of or under
166	166	contract with a registered reroofing contractor and the person is
167	167	not involved in soliciting, advertising, or executing contracts for
168	168	the contractor.
169	169	(b) A person described by Subsection (a)(1) shall operate in
170	170	the name of the registered reroofing contractor. The reroofing
171	171	contractor is responsible for the conduct of that person in
172	172	complying with the requirements of this chapter.
173	173	Sec. 1306.103. APPLICATION FOR REGISTRATION. (a) An
174	174	applicant for registration shall submit an application to the board
175	175	on a form prescribed by the executive director.
176	176	(b) The application must be accompanied by:
177	177	(1) if the applicant is an individual, proof of the
178	178	applicant's identity;
179	179	(2) if the applicant is a business entity, proof of the
180	180	applicant's existence and confirmation of authority to conduct
181	181	business in this state under a certificate of status issued by the
182	182	secretary of state that is in good standing;
183	183	(3) proof of the mailing address and telephone number
184	184	of the applicant's residence or business location; and
185	185	(4) the application fee.
186	186	Sec. 1306.104. ISSUANCE OF REGISTRATION; TERM. (a) The
187	187	board shall issue a registration to an applicant who complies with
188	188	the registration requirements of this chapter not later than the
189	189	14th day after the date the board receives the application.
190	190	(b) A registration is valid for two years from the date of
191	191	issuance and may be renewed before expiration in the manner
192	192	provided by Section 1306.105.
193	193	Sec. 1306.105. RENEWAL OF REGISTRATION. (a) To renew a
194	194	registration, a reroofing contractor shall submit an application
195	195	for renewal to the board on a form prescribed by the executive
196	196	director.
197	197	(b) The application must be accompanied by:
198	198	(1) documentation of any changes in the reroofing
199	199	contractor's information submitted to the board under Section
200	200	1306.103(b); and
201	201	(2) the renewal fee.
202	202	SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
203	203	Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
204	204	registered reroofing contractor shall include the contractor's
205	205	registration number in each:
206	206	(1) contract for a reroofing project in the manner
207	207	provided by Section 1306.153; and
208	208	(2) advertisement for a reroofing service by the
209	209	contractor, including on each business card, flyer, or door card
210	210	and in each television, radio, social media, or newspaper
211	211	advertisement.
212	212	(b) Other than the inclusion of a registration number in the
213	213	manner prescribed by this section, a reroofing contractor may not
214	214	make any representation or statement regarding the effect of being
215	215	issued a registration under this chapter or the fact that the
216	216	contractor has been issued a registration under this chapter.
217	217	Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
218	218	DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
219	219	advertise or promise to pay or rebate all or part of an insurance
220	220	deductible in connection with a reroofing project in violation of
221	221	Section 27.02, Business & Commerce Code.
222	222	Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
223	223	engaging in a reroofing project, a registered reroofing contractor
224	224	must provide a written contract to the property owner that is signed
225	225	by the reroofing contractor or the contractor's designee and the
226	226	property owner.
227	227	(b) A written contract under Subsection (a) must include:
228	228	(1) the following statement printed in at least
229	229	12-point bold type: "The work to be performed under this contract
230	230	must commence not later than the 30th day after the date the
231	231	reroofing contractor collects an initial payment, unless a longer
232	232	period is agreed to in writing and signed by both parties to this
233	233	contract.";
234	234	(2) the reroofing contractor's contact information,
235	235	including physical address, e-mail address, and telephone number;
236	236	(3) the reroofing contractor's policy regarding
237	237	cancellation of the contract; and
238	238	(4) the reroofing contractor's registration number in
239	239	at least 12-point bold type in the following form: "Texas
240	240	Registered Reroofing Contractor Number (registration number)."
241	241	Sec. 1306.154. COMPLIANCE WITH OTHER LAW. (a) A registered
242	242	reroofing contractor shall comply with each applicable:
243	243	(1) building code adopted by this state or a political
244	244	subdivision of this state; and
245	245	(2) order, ordinance, or rule of a political
246	246	subdivision relating to the issuance of a permit for or the
247	247	performance of a reroofing project in the political subdivision.
248	248	(b) A registered reroofing contractor shall comply with
249	249	Chapter 58, Business & Commerce Code, during a natural disaster, as
250	250	that term is defined by Section 58.001, Business & Commerce Code.
251	251	(c) The registered reroofing contractor's contract
252	252	cancellation policy must be consistent with state law.
253	253	SUBCHAPTER E. ENFORCEMENT
254	254	Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The board
255	255	shall investigate any complaint alleging a violation of this
256	256	chapter or a rule adopted under this chapter.
257	257	(b) A complaint must be filed in a manner prescribed by the
258	258	board.
259	259	Sec. 1306.202. ADMINISTRATIVE PENALTY. The board or
260	260	executive director may impose an administrative penalty on a person
261	261	under Subchapter F, Chapter 51, regardless of whether the person is
262	262	registered under this chapter, if the person violates:
263	263	(1) this chapter or a rule adopted under this chapter;
264	264	or
265	265	(2) an order of the board or executive director.
266	266	Sec. 1306.203. SANCTIONS. The board may impose sanctions
267	267	as provided by Section 51.353.
268	268	Sec. 1306.204. CEASE AND DESIST ORDER. The executive
269	269	director may issue a cease and desist order under Section 51.3513 to
270	270	prohibit any person from performing or engaging in a reroofing
271	271	project if the person is not in compliance with this chapter.
272	272	Sec. 1306.205. CRIMINAL PENALTY. (a) A person commits an
273	273	offense if the person violates this chapter.
274	274	(b) An offense under this section is a Class C misdemeanor.
275	275	(c) If the conduct constituting an offense under this
276	276	section also constitutes an offense under Section 32.42(b)(12),
277	277	Penal Code, the person may be prosecuted under either section or
278	278	under both sections.
279	279	Sec. 1306.206. DECEPTIVE TRADE PRACTICE. A reroofing
280	280	contractor who advertises that the contractor holds a registration
281	281	under this chapter commits a false, misleading, or deceptive act or
282	282	practice within the meaning of Section 17.46, Business & Commerce
283	283	Code, if the reroofing contractor does not hold a valid
284	284	registration issued under this chapter.
285	285	SECTION 2. The Texas Board on Reroofing Contractors shall
286	286	adopt rules necessary to implement Chapter 1306, Occupations Code,
287	287	as added by this Act, not later than January 1, 2020. The Texas
288	288	Board on Reroofing Contractors shall begin issuing registrations
289	289	under Chapter 1306, Occupations Code, as added by this Act, not
290	290	later than March 1, 2020.
291	291	SECTION 3. (a) Except as provided by Subsection (b) of this
292	292	section, this Act takes effect September 1, 2019.
293	293	(b) Section 1306.101, Occupations Code, and Subchapters D
294	294	and E, Chapter 1306, Occupations Code, as added by this Act, take
295	295	effect March 1, 2020.