Texas 2019 - 86th Regular

Texas House Bill HB3156 Compare Versions

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1	1	By: Capriglione H.B. No. 3156
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 20, Insurance Code, is amended by adding
11	11	Chapter 6004 to read as follows:
12	12	CHAPTER 6004. REROOFING CONTRACTORS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 6004.001. SHORT TITLE. This chapter may be cited as
15	15	the Reroofing Contractor Registration Act.
16	16	Sec. 6004.002. DEFINITIONS. In this chapter:
17	17	(1) "Advisory board" means the Reroofing Contractor
18	18	Advisory Board.
19	19	(2) "Commissioner" means the Texas Commissioner of
20	20	Insurance.
21	21	(3) "Department" means the Texas Department of
22	22	Insurance.
23	23	(4) "Person" means an individual or business entity.
24	24	(6) "Registered reroofing contractor" means a
25	25	reroofing contractor who is registered under this chapter and who
26	26	holds a valid statement of registration number issued under this
27	27	chapter.
28	28	(7) "Reroofing contractor" means a person who:
29	29	(A) engages in repairing, recovering, or
30	30	replacing existing roof coverings on residential or commercial
31	31	structures; or
32	32	(B) solicits, advertises, or contracts to
33	33	repair, recover, or replace existing roof coverings on residential
34	34	or commercial structures.
35	35	(8) "Reroofing project" means a project to repair,
36	36	recover, or replace an existing roof covering on a residential or
37	37	commercial structure.
38	38	Sec. 6004.003. EXEMPTIONS. This chapter does not apply to:
39	39	(1) an owner of residential property or property
40	40	primarily used for agricultural purposes, or an employee of the
41	41	owner, who performs a reroofing project on the owner's property;
42	42	(2) an authorized employee or representative of the
43	43	United States government, this state, or a county, municipality, or
44	44	other political subdivision of this state acting in an official
45	45	capacity;
46	46	(3) the new construction of a residential or
47	47	commercial structure; or
48	48	(4) a person performing a minor repair of an existing
49	49	roof covering if the value of the repair does not exceed $500.
50	50	SUBCHAPTER B. POWERS AND DUTIES
51	51	Sec. 6004.051. GENERAL POWERS AND DUTIES. The department
52	52	shall administer and enforce this chapter.
53	53	Sec. 6004.052. RULES. (a) The commissioner by rule shall:
54	54	(1) prescribe the requirements for the issuance and
55	55	renewal of a registration under this chapter;
56	56	(2) adopt a code of ethics for reroofing contractors;
57	57	and
58	58	(3) with respect to reroofing projects on property
59	59	located in an area for which the governor declares a state of
60	60	disaster under Chapter 418, Government Code, provide for:
61	61	(A) a temporary exception to the requirements of
62	62	this chapter; and
63	63	(B) the temporary recognition of reroofing
64	64	contractors licensed or registered in good standing in another
65	65	state.
66	66	(b) The commissioner may adopt additional rules as
67	67	necessary to administer this chapter.
68	68	Sec. 6004.053. FEES. (a) Except as provided by Subsection
69	69	(b), the commissioner shall establish and collect reasonable and
70	70	necessary fees in amounts sufficient to cover the costs of
71	71	administering this chapter by the department.
72	72	(b) The fees adopted under this chapter must include fees
73	73	for:
74	74	(1) an initial application for registration, in an
75	75	amount not to exceed $250; and
76	76	(2) the renewal of a registration, in an amount not to
77	77	exceed $100.
78	78	Sec. 6004.054. DEPOSIT IN OPERATING ACCOUNT. All fees
79	79	collected under this chapter shall be deposited in the state
80	80	treasury to the credit of the Texas Department of Insurance
81	81	operating account for use in administering this chapter.
82	82	Sec. 6004.055. REGISTRATION DATABASE. The department shall
83	83	make available on its Internet website a publicly accessible list
84	84	of all registered reroofing contractors who are in good standing.
85	85	The list must be searchable by name and location. The list must
86	86	contain the following for each registered reroofing contractor:
87	87	(1) the name, mailing address, and telephone number of
88	88	the reroofing contractor;
89	89	(2) the date of initial registration;
90	90	(3) information concerning the reroofing contractor's
91	91	insurance coverage, if reported by the reroofing contractor;
92	92	(4) a summary of any disciplinary action taken by the
93	93	department against the reroofing contractor; and
94	94	(5) any other information required by the department.
95	95	Sec. 6004.055. REGISTRATION VERIFICATION. (a) A county or
96	96	municipal building official may not grant or approve a building or
97	97	construction permit for a reroofing project unless the applicant
98	98	for the permit is:
99	99	(1) a registered reroofing contractor; or
100	100	(2) exempt from registration under this chapter.
101	101	(b) On request of a county or municipal building official,
102	102	the department shall verify the registration of an applicant
103	103	described by Subsection (a). The department shall establish a
104	104	verification system to ensure a timely response to a request for
105	105	verification of a registration.
106	106	Sec. 6004.056. ADVISORY BOARD. (a) The Reroofing
107	107	Contractor Advisory Board shall advise the commissioner in adopting
108	108	rules under this chapter.
109	109	(b) The advisory board consists of seven members appointed
110	110	by the commissioner as follows:
111	111	(1) four reroofing contractors;
112	112	(2) the county or municipal building official in this
113	113	state; and
114	114	(3) two members who represent the public.
115	115	(c) Appointments to the advisory board shall be made without
116	116	regard to the race, color, disability, sex, religion, age, or
117	117	national origin of the appointee.
118	118	(d) Members of the advisory board serve three-year terms.
119	119	(e) Chapter 2110, Government Code, does not apply to the
120	120	size, composition, or duration of the advisory board.
121	121	(f) Advisory board members may not receive compensation for
122	122	serving as a member.
123	123	SUBCHAPTER C. REGISTRATION REQUIREMENTS
124	124	Sec. 6004.101. REGISTRATION REQUIRED. (a) Unless the
125	125	person holds a registration issued under this chapter, a person may
126	126	not:
127	127	(1) perform or otherwise engage in a reroofing
128	128	project; or
129	129	(2) solicit, advertise, or contract to perform or
130	130	engage in a reroofing project.
131	131	(b) A registration under this chapter shall be issued in the
132	132	form of a statement of registration number.
133	133	(c) A registration issued under this chapter:
134	134	(1) is valid only with respect to the person named on
135	135	the registration; and
136	136	(2) authorizes the registration holder to operate as a
137	137	reroofing contractor.
138	138	(d) A person may obtain a registration for more than one
139	139	business entity. A registration is not transferable.
140	140	Sec. 6004.102. EXEMPTION FROM REGISTRATION. (a) A person
141	141	is not required to be registered under this chapter if:
142	142	(1) subject to Subsection (b), the person is a sales
143	143	manager, project manager, or other person employed or otherwise
144	144	used by a registered reroofing contractor in the ordinary course of
145	145	the contractor's business if the person does not engage in
146	146	repairing, recovering, or replacing an existing roof covering; or
147	147	(2) the person engages in repairing, recovering, or
148	148	replacing an existing roof covering as an employee of or under
149	149	contract with a registered reroofing contractor and the person is
150	150	not involved in soliciting, advertising, or executing contracts for
151	151	the contractor.
152	152	(b) A person described by Subsection (a)(1) shall operate in
153	153	the name of the registered reroofing contractor. The reroofing
154	154	contractor is responsible for the conduct of that person in
155	155	complying with the requirements of this chapter.
156	156	Sec. 6004.103. APPLICATION FOR REGISTRATION. (a) An
157	157	applicant for registration shall submit an application to the
158	158	department on a form prescribed by the department.
159	159	(b) The application must be accompanied by:
160	160	(1) if the applicant is an individual, proof of the
161	161	applicant's identity;
162	162	(2) if the applicant is a business entity, proof of the
163	163	applicant's existence and confirmation of authority to conduct
164	164	business in this state under a certificate of status issued by the
165	165	secretary of state that is in good standing;
166	166	(3) proof of the mailing address and telephone number
167	167	of the applicant's residence or business location; and
168	168	(4) the application fee.
169	169	Sec. 6004.104. ISSUANCE OF REGISTRATION; TERM. (a) The
170	170	department shall issue a registration to an applicant who complies
171	171	with the registration requirements of this chapter not later than
172	172	the 14th day after the date the department receives the
173	173	application.
174	174	(b) A registration is valid for two years from the date of
175	175	issuance and may be renewed before expiration in the manner
176	176	provided by Section 6004.105.
177	177	Sec. 6004.105. RENEWAL OF REGISTRATION. (a) To renew a
178	178	registration, a reroofing contractor shall submit an application
179	179	for renewal to the department on a form prescribed by the executive
180	180	director.
181	181	(b) The application must be accompanied by:
182	182	(1) documentation of any changes in the reroofing
183	183	contractor's information submitted to the department under Section
184	184	6004.103(b); and
185	185	(2) the renewal fee.
186	186	SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
187	187	Sec. 6004.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
188	188	registered reroofing contractor shall include the contractor's
189	189	registration number in each:
190	190	(1) contract for a reroofing project in the manner
191	191	provided by Section 6004.153; and
192	192	(2) advertisement for a reroofing service by the
193	193	contractor, including on each business card, flyer, or door card
194	194	and in each television, radio, social media, or newspaper
195	195	advertisement.
196	196	(b) Other than the inclusion of a registration number in the
197	197	manner prescribed by this section, a reroofing contractor may not
198	198	make any representation or statement regarding the effect of being
199	199	issued a registration under this chapter or the fact that the
200	200	contractor has been issued a registration under this chapter.
201	201	Sec. 6004.152. CERTAIN PRACTICES RELATING TO INSURANCE
202	202	DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
203	203	advertise or promise to pay or rebate all or part of an insurance
204	204	deductible in connection with a reroofing project in violation of
205	205	Section 27.02, Business & Commerce Code.
206	206	Sec. 6004.153. CONTRACT FOR REROOFING PROJECT. (a) Before
207	207	engaging in a reroofing project, a registered reroofing contractor
208	208	must provide a written contract to the property owner that is signed
209	209	by the reroofing contractor or the contractor's designee and the
210	210	property owner.
211	211	(b) A written contract under Subsection (a) must include:
212	212	(1) the following statement printed in at least
213	213	12-point bold type: "The work to be performed under this contract
214	214	must commence not later than the 30th day after the date the
215	215	reroofing contractor collects an initial payment, unless a longer
216	216	period is agreed to in writing and signed by both parties to this
217	217	contract.";
218	218	(2) the reroofing contractor's contact information,
219	219	including physical address, e-mail address, and telephone number;
220	220	(3) the reroofing contractor's policy regarding
221	221	cancellation of the contract; and
222	222	(4) the reroofing contractor's registration number in
223	223	at least 12-point bold type in the following form: "Texas
224	224	Registered Reroofing Contractor Number (registration number)."
225	225	Sec. 6004.154. COMPLIANCE WITH OTHER LAW. (a) A registered
226	226	reroofing contractor shall comply with each applicable:
227	227	(1) building code adopted by this state or a political
228	228	subdivision of this state; and
229	229	(2) order, ordinance, or rule of a political
230	230	subdivision relating to the issuance of a permit for or the
231	231	performance of a reroofing project in the political subdivision.
232	232	(b) A registered reroofing contractor shall comply with
233	233	Chapter 58, Business & Commerce Code, during a natural disaster, as
234	234	that term is defined by Section 58.001, Business & Commerce Code.
235	235	(c) The registered reroofing contractor's contract
236	236	cancellation policy must be consistent with state law.
237	237	SUBCHAPTER E. ENFORCEMENT
238	238	Sec. 6004.201. INVESTIGATION OF COMPLAINTS. (a) The
239	239	department shall investigate any complaint alleging a violation of
240	240	this chapter or a rule adopted under this chapter.
241	241	(b) A complaint must be filed in a manner prescribed by the
242	242	department.
243	243	Sec. 6004.202. ADMINISTRATIVE PENALTY. The commissioner or
244	244	department may impose an administrative penalty on a person under
245	245	Subchapter F, Chapter 51, regardless of whether the person is
246	246	registered under this chapter, if the person violates:
247	247	(1) this chapter or a rule adopted under this chapter;
248	248	or
249	249	(2) an order of the commissioner or department.
250	250	Sec. 6004.203. SANCTIONS. The commissioner or department
251	251	may impose sanctions as provided by Section 51.353.
252	252	Sec. 6004.204. CEASE AND DESIST ORDER. The commissioner or
253	253	department may issue a cease and desist order under Section 51.3513
254	254	to prohibit any person from performing or engaging in a reroofing
255	255	project if the person is not in compliance with this chapter.
256	256	Sec. 6004.205. CRIMINAL PENALTY. (a) A person commits an
257	257	offense if the person violates this chapter.
258	258	(b) An offense under this section is a Class C misdemeanor.
259	259	(c) If the conduct constituting an offense under this
260	260	section also constitutes an offense under Section 32.42(b)(12),
261	261	Penal Code, the person may be prosecuted under either section or
262	262	under both sections.
263	263	Sec. 6004.206. DECEPTIVE TRADE PRACTICE. A reroofing
264	264	contractor who advertises that the contractor holds a registration
265	265	under this chapter commits a false, misleading, or deceptive act or
266	266	practice within the meaning of Section 17.46, Business & Commerce
267	267	Code, if the reroofing contractor does not hold a valid
268	268	registration issued under this chapter.
269	269	SECTION 2. The Texas Department of Insurance shall adopt
270	270	rules necessary to implement Chapter 6004, Insurance Code, as added
271	271	by this Act, not later than January 1, 2020.
272	272	SECTION 3. The Texas Department of Insurance shall begin
273	273	issuing registrations under Chapter 6004, Insurance Code, as added
274	274	by this Act, not later than March 1, 2020.
275	275	SECTION 4. (a) Except as provided by Subsection (b) of this
276	276	section, this Act takes effect September 1, 2019.
277	277	(b) Section 6004.101, Insurance Code, and Subchapters D and
278	278	E, Chapter 6004, Insurance Code, as added by this Act, take effect
279	279	March 1, 2020.