Texas 2019 - 86th Regular

Texas House Bill HB4467 Compare Versions

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

Old	New	Differences
1	1	86R9451 TSR-F
2	2	By: Thierry H.B. No. 4467
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of roofing contractors; providing an
8	8	administrative penalty; authorizing a fee; creating a criminal
9	9	offense; requiring an occupational license.
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. ROOFING CONTRACTORS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1306.001. SHORT TITLE. This chapter may be cited as
16	16	the Roofing Contractor Consumer Protection Act.
17	17	Sec. 1306.002. DEFINITIONS. In this chapter:
18	18	(1) "Advisory board" means the roofing contractors
19	19	advisory board.
20	20	(2) "Commission" means the Texas Commission of
21	21	Licensing and Regulation.
22	22	(3) "Controlling person" means an individual who:
23	23	(A) is an owner, officer, or director of a
24	24	roofing contractor;
25	25	(B) possesses direct or indirect control of at
26	26	least 10 percent of the voting securities of a roofing contractor
27	27	that is a corporation;
28	28	(C) owns or possesses direct or indirect control
29	29	of at least $25,000 of the fair market value of a roofing
30	30	contractor;
31	31	(D) directly or indirectly possesses the power to
32	32	direct or cause the direction of the management or policies of a
33	33	roofing contractor; or
34	34	(E) has a direct or indirect interest in at least
35	35	10 percent of the profits, proceeds, or capital gains of a roofing
36	36	contractor.
37	37	(4) "Department" means the Texas Department of
38	38	Licensing and Regulation.
39	39	(5) "Executive director" means the executive director
40	40	of the department.
41	41	(6) "Roofing contractor" means a person who performs
42	42	roofing services for compensation.
43	43	(7) "Roofing product" means any material commonly used
44	44	in the construction, installation, or replacement of a commercial
45	45	or residential roof.
46	46	(8) "Roofing services" means the installation,
47	47	construction, maintenance, repair, alteration, or modification of
48	48	a roofing product for a commercial or residential roof.
49	49	Sec. 1306.003. EXEMPTIONS. (a) This chapter does not apply
50	50	to:
51	51	(1) the owner of residential property or property used
52	52	primarily for agricultural purposes, or an employee of the owner,
53	53	who physically performs roofing services on the owner's dwelling or
54	54	on another structure located on the property;
55	55	(2) an authorized employee or representative of the
56	56	United States government, this state, or any county, municipality,
57	57	or other political subdivision of this state acting in an official
58	58	capacity;
59	59	(3) a person who furnishes any fabricated or finished
60	60	roofing product, material, or article of merchandise that is not
61	61	incorporated into or attached to real property by the person;
62	62	(4) an employee of a roofing contractor licensed under
63	63	this chapter; or
64	64	(5) a person who performs roofing services for the new
65	65	construction of a commercial or residential structure.
66	66	(b) Notwithstanding Subsection (a), a person described by
67	67	Subsection (a)(5) may be subject to the requirements of this
68	68	chapter to the extent the person provides roofing services other
69	69	than those described by that subdivision.
70	70	Sec. 1306.004. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER
71	71	LAW. This chapter shall be construed to be in addition to any
72	72	required licensure of persons in this state. This chapter is not
73	73	intended to conflict with or affect the authority of any state or
74	74	local agency, board, or department that administers or enforces any
75	75	law or ordinance or that establishes, administers, or enforces a
76	76	policy, rule, qualification, or standard for a trade or profession.
77	77	SUBCHAPTER B. ADVISORY BOARD
78	78	Sec. 1306.051. ROOFING CONTRACTORS ADVISORY BOARD. (a)
79	79	The advisory board consists of five members appointed by the
80	80	presiding officer of the commission with the approval of the
81	81	commission as follows:
82	82	(1) one general contractor who is not a roofing
83	83	contractor;
84	84	(2) three roofing contractors licensed under this
85	85	chapter; and
86	86	(3) one public member.
87	87	(b) For purposes of Subsection (a)(2), the commission may
88	88	appoint a roofing contractor who is not licensed under this chapter
89	89	if the contractor has fulfilled the requirements for the issuance
90	90	of a license and has submitted a complete application to the
91	91	department. The commission shall remove from the advisory board a
92	92	roofing contractor appointed under this subsection if the
93	93	contractor does not receive a license before the 31st day after the
94	94	date the contractor is appointed to the advisory board.
95	95	(c) Appointments to the advisory board shall be made without
96	96	regard to the race, color, disability, sex, religion, age, or
97	97	national origin of the appointee.
98	98	(d) Chapter 2110, Government Code, does not apply to the
99	99	composition or duration of the advisory board.
100	100	Sec. 1306.052. POWERS AND DUTIES OF ADVISORY BOARD. The
101	101	advisory board shall provide advice and recommendations to the
102	102	commission on the adoption of rules governing the repair of a
103	103	roofing system.
104	104	Sec. 1306.053. COMPENSATION. Advisory board members may
105	105	not receive compensation for serving as a member.
106	106	SUBCHAPTER C. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION
107	107	Sec. 1306.101. GENERAL POWERS AND DUTIES. The department,
108	108	executive director, or commission, as appropriate, may take action
109	109	as necessary to administer and enforce this chapter.
110	110	Sec. 1306.102. RULES. The commission shall adopt rules as
111	111	necessary to administer this chapter, including rules relating to:
112	112	(1) licensing roofing contractors and establishing
113	113	standards of conduct for license holders, including the display of
114	114	a license by a license holder;
115	115	(2) investigating and resolving complaints filed
116	116	under this chapter;
117	117	(3) establishing the minimum financial responsibility
118	118	requirements for license holders;
119	119	(4) administering a licensing examination; and
120	120	(5) prohibiting false, misleading, or deceptive
121	121	advertising practices by license holders.
122	122	Sec. 1306.103. CRIMINAL HISTORY BACKGROUND CHECK. The
123	123	department may obtain criminal history record information under
124	124	Subchapter F, Chapter 411, Government Code, for an applicant for or
125	125	holder of a license under this chapter. For purposes of Section
126	126	411.093, Government Code, an applicant for or holder of a license
127	127	under this chapter includes a controlling person of an applicant or
128	128	holder.
129	129	Sec. 1306.104. LICENSE HOLDER DATABASE. The commission
130	130	shall make available on its Internet website a publicly accessible
131	131	list of licensed roofing contractors. The list must contain the
132	132	following for each licensed roofing contractor:
133	133	(1) contact information for the contractor;
134	134	(2) a statement indicating whether the contractor is
135	135	licensed in good standing;
136	136	(3) a summary of any disciplinary action taken by the
137	137	commission against the contractor; and
138	138	(4) any other information that the commission
139	139	determines is relevant.
140	140	SUBCHAPTER D. LICENSE REQUIREMENTS
141	141	Sec. 1306.151. LICENSE REQUIRED. (a) A person may not act
142	142	as or offer to act as a roofing contractor unless the person holds a
143	143	license issued under this chapter.
144	144	(b) A license:
145	145	(1) is valid only with respect to the person or company
146	146	named on the license; and
147	147	(2) authorizes the license holder to operate one
148	148	roofing contractor business for each license.
149	149	(c) A license issued under this chapter is not transferable
150	150	or assignable.
151	151	Sec. 1306.152. APPLICATION; APPLICATION FEE. (a) An
152	152	applicant for a license must:
153	153	(1) apply to the department on a form prescribed by the
154	154	executive director and under rules adopted by the commission;
155	155	(2) submit with the application a nonrefundable
156	156	application fee in an amount set by the commission; and
157	157	(3) pass an examination adopted by the department.
158	158	(b) The commission by rule shall specify the information
159	159	that must be included on an application submitted to the
160	160	department. The rules must require each application to include:
161	161	(1) the name and address of, and an authorization for
162	162	the department to obtain criminal history record information for,
163	163	each controlling person; and
164	164	(2) evidence that the applicant satisfies the minimum
165	165	financial responsibility requirements established by commission
166	166	rule.
167	167	Sec. 1306.153. TERM OF LICENSE. A license issued under this
168	168	chapter is valid for one year.
169	169	Sec. 1306.154. EXAMINATION. (a) An examination required
170	170	by this chapter shall be conducted at locations throughout the
171	171	state.
172	172	(b) The department shall accept, develop, or contract for
173	173	the examination required by this chapter, including the
174	174	administration of the examination. Each examination must test the
175	175	knowledge of the applicant about basic contracting principles and
176	176	roofing services.
177	177	(c) The executive director shall determine uniform
178	178	standards for acceptable performance on an examination.
179	179	SUBCHAPTER E. PRACTICE BY LICENSE HOLDER
180	180	Sec. 1306.201. DISPLAY OF LICENSE INFORMATION. (a) A
181	181	roofing contractor shall display the contractor's business name and
182	182	the number of the license issued by the executive director on each
183	183	vehicle owned by the contractor and used in providing roofing
184	184	services.
185	185	(b) The information required to be displayed must be:
186	186	(1) printed in letters and numbers that are at least
187	187	two inches high and in a color that contrasts with the color of the
188	188	background surface; and
189	189	(2) affixed in conspicuous places on both sides of the
190	190	vehicle.
191	191	Sec. 1306.202. COMPLIANCE WITH LOCAL REQUIREMENTS. A
192	192	roofing contractor shall comply with local ordinances and
193	193	regulations relating to standards and permits for roofing services.
194	194	Sec. 1306.203. OBTAINING A LICENSE UNDER ANOTHER NAME
195	195	PROHIBITED. (a) A person may not attempt to obtain a license under
196	196	any other name during any period during which the person's roofing
197	197	contractor license is suspended or revoked.
198	198	(b) Subsection (a) applies to any controlling person of a
199	199	business entity or other group whose license is suspended or
200	200	revoked.
201	201	Sec. 1306.204. NOTIFICATION OF CHANGE OF INFORMATION. A
202	202	roofing contractor shall timely notify the department of any change
203	203	to the name, address, business entity, liability coverage, or legal
204	204	service agent of the contractor.
205	205	Sec. 1306.205. PROHIBITED ACTS. A roofing contractor
206	206	providing roofing services to be paid by a consumer from the
207	207	proceeds of the consumer's property or casualty insurance policy
208	208	may not pay or rebate or promise to pay or rebate all or part of any
209	209	applicable insurance deductible.
210	210	Sec. 1306.206. CONFLICTS OF INTEREST PROHIBITED. (a) In
211	211	this section, "public insurance adjuster" has the meaning assigned
212	212	by Section 4102.001, Insurance Code.
213	213	(b) A roofing contractor may not act as a public insurance
214	214	adjuster for any property for which the contractor is providing
215	215	roofing services, regardless of whether the contractor holds a
216	216	license under Chapter 4102, Insurance Code.
217	217	(c) A roofing contractor is subject to the prohibitions
218	218	under Section 4102.158, Insurance Code.
219	219	SUBCHAPTER F. ENFORCEMENT
220	220	Sec. 1306.251. INVESTIGATION OF COMPLAINTS. (a) The
221	221	department shall investigate any complaint alleging that a
222	222	violation of this chapter or a rule adopted under this chapter has
223	223	occurred.
224	224	(b) A complaint must be filed in a manner prescribed by the
225	225	department.
226	226	Sec. 1306.252. ADMINISTRATIVE PENALTY. The commission or
227	227	executive director may impose an administrative penalty on a person
228	228	under Subchapter F, Chapter 51, regardless of whether the person
229	229	holds a license under this chapter, if the person violates:
230	230	(1) this chapter or a rule adopted under this chapter;
231	231	or
232	232	(2) a rule or order of the commission or executive
233	233	director.
234	234	Sec. 1306.253. SANCTIONS. The commission may impose
235	235	sanctions as provided by Section 51.353.
236	236	Sec. 1306.254. CRIMINAL OFFENSE. (a) A person commits an
237	237	offense if the person:
238	238	(1) violates the licensing requirements of this
239	239	chapter; or
240	240	(2) performs roofing services without a license
241	241	required by this chapter.
242	242	(b) An offense under this section is a Class C misdemeanor.
243	243	SECTION 2. Not later than February 1, 2020, the Texas
244	244	Commission of Licensing and Regulation, the Texas Department of
245	245	Licensing and Regulation, and the executive director of the Texas
246	246	Department of Licensing and Regulation, as appropriate, shall adopt
247	247	rules and forms necessary to implement Chapter 1306, Occupations
248	248	Code, as added by this Act.
249	249	SECTION 3. The Texas Department of Licensing and Regulation
250	250	shall issue a roofing contractor license under Chapter 1306,
251	251	Occupations Code, as added by this Act, to an applicant who:
252	252	(1) applies for a license under this section not later
253	253	than June 1, 2020;
254	254	(2) submits to the department the information required
255	255	by rule;
256	256	(3) has at least 10 years of experience performing
257	257	roofing services as defined by Section 1306.002, Occupations Code,
258	258	as added by this Act; and
259	259	(4) pays the application fee established by the Texas
260	260	Commission of Licensing and Regulation.
261	261	SECTION 4. (a) Except as provided by Subsection (b) of this
262	262	section, this Act takes effect September 1, 2019.
263	263	(b) Section 1306.151, Occupations Code, and Subchapters E
264	264	and F, Chapter 1306, Occupations Code, as added by this Act, take
265	265	effect September 1, 2020.