By: Capriglione H.B. No. 3151
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of reroofing contractors; providing
administrative and civil penalties; authorizing fees; creating a
criminal offense; requiring an occupational registration.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 8, Occupations Code, is amended by adding
Chapter 1306 to read as follows:
CHAPTER 1306. TEXAS BOARD ON REROOFING CONTRACTORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1306.001. SHORT TITLE. This chapter may be cited as
the Reroofing Contractor Registration Act.
Sec. 1306.002. PURPOSE AND LEGISLATIVE FINDINGS. (a) This
legislature finds that:
(1) there is a growing need to provide state residents
with safe, affordable, and well-constructed replacement roofs;
(2) the reroofing industry requires regulation to
ensure safe working conditions for its contractors and best
protections for reroofing consumers;
(3) statutes and rules in effect before September 1,
2019, were inadequate to:
(A) fully protect the consumer; and
(B) prevent the construction of poorly made
replacement roofs;
(4) there is a need for the state of Texas to oversee
and register reroofing contractors and to regulate the reroofing
construction industry.
(b) The purposes of this chapter are to:
(1) encourage the construction of safe roofing for
state residents; and
(2) improve the general welfare and safety of
purchasers and consumers of roofing construction.
(c) This chapter shall be liberally construed to promote its
policies and accomplish its purposes.
Sec. 1306.003. DEFINITIONS. In this chapter:
(1) "Board" means the Texas Board on Reroofing
Contractors.
(2) "Executive director" means the executive director
of the Texas Board on Reroofing Contractors.
(4) "Person" means an individual or business entity.
(5) "Registered reroofing contractor" means a
reroofing contractor who is registered under this chapter and who
holds a valid statement of registration number issued under this
chapter.
(6) "Reroofing contractor" means a person who:
(A) engages in repairing, recovering, or
replacing existing roof coverings on residential or commercial
structures; or
(B) solicits, advertises, or contracts to
repair, recover, or replace existing roof coverings on residential
or commercial structures.
(8) "Reroofing project" means a project to repair,
recover, or replace an existing roof covering on a residential or
commercial structure.
Sec. 1306.004. EXEMPTIONS. This chapter does not apply to:
(1) an owner of residential property or property
primarily used for agricultural purposes, or an employee of the
owner, who performs a reroofing project on the owner's property;
(2) an authorized employee or representative of the
United States government, this state, or a county, municipality, or
other political subdivision of this state acting in an official
capacity;
(3) the new construction of a residential or
commercial structure; or
(4) a person performing a minor repair of an existing
roof covering if the value of the repair does not exceed $500.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 1306.050. TEXAS BOARD ON REROOFING CONTRACTORS. (a)
The Texas Board on Reroofing Contractors shall consists of seven
members appointed by the governor as follows:
(1) four reroofing contractors;
(2) one county or municipal building official in this
state; and
(3) two members who represent the public.
(b) Appointments to the board shall be made without regard
to the race, color, disability, sex, religion, age, or national
origin of the appointee.
(c) Members of the board serve three-year terms.
Sec.
1306.051. GENERAL POWERS AND DUTIES. The board shall
administer and enforce this chapter.
Sec. 1306.052. RULES. (a) The board by rule shall:
(1) prescribe the requirements for the issuance and
renewal of a registration under this chapter;
(2) adopt a code of ethics for reroofing contractors;
and
(3) with respect to reroofing projects on property
located in an area for which the governor declares a state of
disaster under Chapter 418, Government Code, provide for:
(A) a temporary exception to the requirements of
this chapter; and
(B) the temporary recognition of reroofing
contractors licensed or registered in good standing in another
state.
(b) The board may adopt additional rules as necessary to
administer this chapter.
Sec. 1306.053. FEES. (a) Except as provided by Subsection
(b), the board shall establish and collect reasonable and necessary
fees in amounts sufficient to cover the costs of administering this
chapter.
(b) The fees adopted under this chapter must include fees
for:
(1) an initial application for registration, in an
amount not to exceed $250; and
(2) the renewal of a registration, in an amount not to
exceed $100.
Sec. 1306.054. REGISTRATION DATABASE. The board shall make
available on its Internet website a publicly accessible list of all
registered reroofing contractors who are in good standing. The list
must be searchable by name and location. The list must contain the
following for each registered reroofing contractor:
(1) the name, mailing address, and telephone number of
the reroofing contractor;
(2) the date of initial registration;
(3) information concerning the reroofing contractor's
insurance coverage, if reported by the reroofing contractor;
(4) a summary of any disciplinary action taken by the
board against the reroofing contractor; and
(5) any other information required by the board.
Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or
municipal building official may not grant or approve a building or
construction permit for a reroofing project unless the applicant
for the permit is:
(1) a registered reroofing contractor; or
(2) exempt from registration under this chapter.
(b) On request of a county or municipal building official,
the board shall verify the registration of an applicant described
by Subsection (a). The board shall establish a verification system
to ensure a timely response to a request for verification of a
registration.
Sec. 1306.056. EXECUTIVE DIRECTOR AND STAFF. (a) The board
shall employ an executive director as the executive head of the
agency.
(b) The board may employ personnel as necessary to
administer this chapter. The board may determine the compensation
and duties of its employees and the terms of their employment.
SUBCHAPTER C. REGISTRATION REQUIREMENTS
Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the
person holds a registration issued under this chapter, a person may
not:
(1) perform or otherwise engage in a reroofing
project; or
(2) solicit, advertise, or contract to perform or
engage in a reroofing project.
(b) A registration under this chapter shall be issued in the
form of a statement of registration number.
(c) A registration issued under this chapter:
(1) is valid only with respect to the person named on
the registration; and
(2) authorizes the registration holder to operate as a
reroofing contractor.
(d) A person may obtain a registration for more than one
business entity. A registration is not transferable.
Sec. 1306.102. EXEMPTION FROM REGISTRATION. (a) A person
is not required to be registered under this chapter if:
(1) subject to Subsection (b), the person is a sales
manager, project manager, or other person employed or otherwise
used by a registered reroofing contractor in the ordinary course of
the contractor's business if the person does not engage in
repairing, recovering, or replacing an existing roof covering; or
(2) the person engages in repairing, recovering, or
replacing an existing roof covering as an employee of or under
contract with a registered reroofing contractor and the person is
not involved in soliciting, advertising, or executing contracts for
the contractor.
(b) A person described by Subsection (a)(1) shall operate in
the name of the registered reroofing contractor. The reroofing
contractor is responsible for the conduct of that person in
complying with the requirements of this chapter.
Sec. 1306.103. APPLICATION FOR REGISTRATION. (a) An
applicant for registration shall submit an application to the board
on a form prescribed by the executive director.
(b) The application must be accompanied by:
(1) if the applicant is an individual, proof of the
applicant's identity;
(2) if the applicant is a business entity, proof of the
applicant's existence and confirmation of authority to conduct
business in this state under a certificate of status issued by the
secretary of state that is in good standing;
(3) proof of the mailing address and telephone number
of the applicant's residence or business location; and
(4) the application fee.
Sec. 1306.104. ISSUANCE OF REGISTRATION; TERM. (a) The
board shall issue a registration to an applicant who complies with
the registration requirements of this chapter not later than the
14th day after the date the board receives the application.
(b) A registration is valid for two years from the date of
issuance and may be renewed before expiration in the manner
provided by Section 1306.105.
Sec. 1306.105. RENEWAL OF REGISTRATION. (a) To renew a
registration, a reroofing contractor shall submit an application
for renewal to the board on a form prescribed by the executive
director.
(b) The application must be accompanied by:
(1) documentation of any changes in the reroofing
contractor's information submitted to the board under Section
1306.103(b); and
(2) the renewal fee.
SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
registered reroofing contractor shall include the contractor's
registration number in each:
(1) contract for a reroofing project in the manner
provided by Section 1306.153; and
(2) advertisement for a reroofing service by the
contractor, including on each business card, flyer, or door card
and in each television, radio, social media, or newspaper
advertisement.
(b) Other than the inclusion of a registration number in the
manner prescribed by this section, a reroofing contractor may not
make any representation or statement regarding the effect of being
issued a registration under this chapter or the fact that the
contractor has been issued a registration under this chapter.
Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
advertise or promise to pay or rebate all or part of an insurance
deductible in connection with a reroofing project in violation of
Section 27.02, Business & Commerce Code.
Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
engaging in a reroofing project, a registered reroofing contractor
must provide a written contract to the property owner that is signed
by the reroofing contractor or the contractor's designee and the
property owner.
(b) A written contract under Subsection (a) must include:
(1) the following statement printed in at least
12-point bold type: "The work to be performed under this contract
must commence not later than the 30th day after the date the
reroofing contractor collects an initial payment, unless a longer
period is agreed to in writing and signed by both parties to this
contract.";
(2) the reroofing contractor's contact information,
including physical address, e-mail address, and telephone number;
(3) the reroofing contractor's policy regarding
cancellation of the contract; and
(4) the reroofing contractor's registration number in
at least 12-point bold type in the following form: "Texas
Registered Reroofing Contractor Number (registration number)."
Sec. 1306.154. COMPLIANCE WITH OTHER LAW. (a) A registered
reroofing contractor shall comply with each applicable:
(1) building code adopted by this state or a political
subdivision of this state; and
(2) order, ordinance, or rule of a political
subdivision relating to the issuance of a permit for or the
performance of a reroofing project in the political subdivision.
(b) A registered reroofing contractor shall comply with
Chapter 58, Business & Commerce Code, during a natural disaster, as
that term is defined by Section 58.001, Business & Commerce Code.
(c) The registered reroofing contractor's contract
cancellation policy must be consistent with state law.
SUBCHAPTER E. ENFORCEMENT
Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The board
shall investigate any complaint alleging a violation of this
chapter or a rule adopted under this chapter.
(b) A complaint must be filed in a manner prescribed by the
board.
Sec. 1306.202. ADMINISTRATIVE PENALTY. The board or
executive director may impose an administrative penalty on a person
under Subchapter F, Chapter 51, regardless of whether the person is
registered under this chapter, if the person violates:
(1) this chapter or a rule adopted under this chapter;
or
(2) an order of the board or executive director.
Sec. 1306.203. SANCTIONS. The board may impose sanctions
as provided by Section 51.353.
Sec. 1306.204. CEASE AND DESIST ORDER. The executive
director may issue a cease and desist order under Section 51.3513 to
prohibit any person from performing or engaging in a reroofing
project if the person is not in compliance with this chapter.
Sec. 1306.205. CRIMINAL PENALTY. (a) A person commits an
offense if the person violates this chapter.
(b) An offense under this section is a Class C misdemeanor.
(c) If the conduct constituting an offense under this
section also constitutes an offense under Section 32.42(b)(12),
Penal Code, the person may be prosecuted under either section or
under both sections.
Sec. 1306.206. DECEPTIVE TRADE PRACTICE. A reroofing
contractor who advertises that the contractor holds a registration
under this chapter commits a false, misleading, or deceptive act or
practice within the meaning of Section 17.46, Business & Commerce
Code, if the reroofing contractor does not hold a valid
registration issued under this chapter.
SECTION 2. The Texas Board on Reroofing Contractors shall
adopt rules necessary to implement Chapter 1306, Occupations Code,
as added by this Act, not later than January 1, 2020. The Texas
Board on Reroofing Contractors shall begin issuing registrations
under Chapter 1306, Occupations Code, as added by this Act, not
later than March 1, 2020.
SECTION 3. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2019.
(b) Section 1306.101, Occupations Code, and Subchapters D
and E, Chapter 1306, Occupations Code, as added by this Act, take
effect March 1, 2020.