Texas 2019 - 86th Regular

Texas Senate Bill SB1168 Compare Versions

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

Old	New	Differences
1	1	86R5254 TSR-F
2	2	By: Zaffirini S.B. No. 1168
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of reroofing contractors; providing
8	8	administrative and civil penalties; authorizing fees; creating a
9	9	criminal offense; requiring an occupational registration.
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. REROOFING CONTRACTORS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 1306.001. SHORT TITLE. This chapter may be cited as
16	16	the Reroofing Contractor Registration Act.
17	17	Sec. 1306.002. DEFINITIONS. In this chapter:
18	18	(1) "Advisory board" means the Reroofing Contractor
19	19	Advisory Board.
20	20	(2) "Commission" means the Texas Commission of
21	21	Licensing and Regulation.
22	22	(3) "Department" means the Texas Department of
23	23	Licensing and Regulation.
24	24	(4) "Executive director" means the executive director
25	25	of the department.
26	26	(5) "Person" means an individual or business entity.
27	27	(6) "Registered reroofing contractor" means a
28	28	reroofing contractor who is registered under this chapter and who
29	29	holds a valid statement of registration number issued under this
30	30	chapter.
31	31	(7) "Reroofing contractor" means a person who:
32	32	(A) engages in repairing, recovering, or
33	33	replacing existing roof coverings on residential or commercial
34	34	structures; or
35	35	(B) solicits, advertises, or contracts to
36	36	repair, recover, or replace existing roof coverings on residential
37	37	or commercial structures.
38	38	(8) "Reroofing project" means a project to repair,
39	39	recover, or replace an existing roof covering on a residential or
40	40	commercial structure.
41	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	50	commercial structure; or
51	51	(4) a person performing a minor repair of an existing
52	52	roof covering if the value of the repair does not exceed $500.
53	53	SUBCHAPTER B. POWERS AND DUTIES
54	54	Sec. 1306.051. GENERAL POWERS AND DUTIES. The department
55	55	shall administer and enforce this chapter.
56	56	Sec. 1306.052. RULES. (a) The commission by rule shall:
57	57	(1) prescribe the requirements for the issuance and
58	58	renewal of a registration under this chapter;
59	59	(2) adopt a code of ethics for reroofing contractors;
60	60	and
61	61	(3) with respect to reroofing projects on property
62	62	located in an area for which the governor declares a state of
63	63	disaster under Chapter 418, Government Code, provide for:
64	64	(A) a temporary exception to the requirements of
65	65	this chapter; and
66	66	(B) the temporary recognition of reroofing
67	67	contractors licensed or registered in good standing in another
68	68	state.
69	69	(b) The commission may adopt additional rules as necessary
70	70	to administer this chapter.
71	71	Sec. 1306.053. FEES. (a) Except as provided by Subsection
72	72	(b), the commission shall establish and collect reasonable and
73	73	necessary fees in amounts sufficient to cover the costs of
74	74	administering this chapter.
75	75	(b) The fees adopted under this chapter must include fees
76	76	for:
77	77	(1) an initial application for registration, in an
78	78	amount not to exceed $250; and
79	79	(2) the renewal of a registration, in an amount not to
80	80	exceed $100.
81	81	Sec. 1306.054. REGISTRATION DATABASE. The department shall
82	82	make available on its Internet website a publicly accessible list
83	83	of all registered reroofing contractors who are in good standing.
84	84	The list must be searchable by name and location. The list must
85	85	contain the following for each registered reroofing contractor:
86	86	(1) the name, mailing address, and telephone number of
87	87	the reroofing contractor;
88	88	(2) the date of initial registration;
89	89	(3) information concerning the reroofing contractor's
90	90	insurance coverage, if reported by the reroofing contractor;
91	91	(4) a summary of any disciplinary action taken by the
92	92	department against the reroofing contractor; and
93	93	(5) any other information required by the department.
94	94	Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or
95	95	municipal building official may not grant or approve a building or
96	96	construction permit for a reroofing project unless the applicant
97	97	for the permit is:
98	98	(1) a registered reroofing contractor; or
99	99	(2) exempt from registration under this chapter.
100	100	(b) On request of a county or municipal building official,
101	101	the department shall verify the registration of an applicant
102	102	described by Subsection (a). The department shall establish a
103	103	verification system to ensure a timely response to a request for
104	104	verification of a registration.
105	105	Sec. 1306.056. ADVISORY BOARD. (a) The Reroofing
106	106	Contractor Advisory Board shall advise the commission in adopting
107	107	rules under this chapter.
108	108	(b) The advisory board consists of seven members appointed
109	109	by the executive director as follows:
110	110	(1) three reroofing contractors;
111	111	(2) one member of the board of directors of the Roofing
112	112	Contractors Association of Texas, or a successor organization;
113	113	(3) one county or municipal building official in this
114	114	state; and
115	115	(4) two members who represent the public.
116	116	(c) Appointments to the advisory board shall be made without
117	117	regard to the race, color, disability, sex, religion, age, or
118	118	national origin of the appointee.
119	119	(d) Members of the advisory board serve three-year terms.
120	120	(e) Chapter 2110, Government Code, does not apply to the
121	121	size, composition, or duration of the advisory board.
122	122	(f) Advisory board members may not receive compensation for
123	123	serving as a member.
124	124	SUBCHAPTER C. REGISTRATION REQUIREMENTS
125	125	Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the
126	126	person holds a registration issued under this chapter, a person may
127	127	not:
128	128	(1) perform or otherwise engage in a reroofing
129	129	project; or
130	130	(2) solicit, advertise, or contract to perform or
131	131	engage in a reroofing project.
132	132	(b) A registration under this chapter shall be issued in the
133	133	form of a statement of registration number.
134	134	(c) A registration issued under this chapter:
135	135	(1) is valid only with respect to the person named on
136	136	the registration; and
137	137	(2) authorizes the registration holder to operate as a
138	138	reroofing contractor.
139	139	(d) A person may obtain a registration for more than one
140	140	business entity. A registration is not transferable.
141	141	Sec. 1306.102. EXEMPTION FROM REGISTRATION. (a) A person
142	142	is not required to be registered under this chapter if:
143	143	(1) subject to Subsection (b), the person is a sales
144	144	manager, project manager, or other person employed or otherwise
145	145	used by a registered reroofing contractor in the ordinary course of
146	146	the contractor's business if the person does not engage in
147	147	repairing, recovering, or replacing an existing roof covering; or
148	148	(2) the person engages in repairing, recovering, or
149	149	replacing an existing roof covering as an employee of or under
150	150	contract with a registered reroofing contractor and the person is
151	151	not involved in soliciting, advertising, or executing contracts for
152	152	the contractor.
153	153	(b) A person described by Subsection (a)(1) shall operate in
154	154	the name of the registered reroofing contractor. The reroofing
155	155	contractor is responsible for the conduct of that person in
156	156	complying with the requirements of this chapter.
157	157	Sec. 1306.103. APPLICATION FOR REGISTRATION. (a) An
158	158	applicant for registration shall submit an application to the
159	159	department on a form prescribed by the executive director.
160	160	(b) The application must be accompanied by:
161	161	(1) if the applicant is an individual, proof of the
162	162	applicant's identity;
163	163	(2) if the applicant is a business entity, proof of the
164	164	applicant's existence and confirmation of authority to conduct
165	165	business in this state under a certificate of status issued by the
166	166	secretary of state that is in good standing;
167	167	(3) proof of the mailing address and telephone number
168	168	of the applicant's residence or business location; and
169	169	(4) the application fee.
170	170	Sec. 1306.104. ISSUANCE OF REGISTRATION; TERM. (a) The
171	171	department shall issue a registration to an applicant who complies
172	172	with the registration requirements of this chapter not later than
173	173	the 14th day after the date the department receives the
174	174	application.
175	175	(b) A registration is valid for two years from the date of
176	176	issuance and may be renewed before expiration in the manner
177	177	provided by Section 1306.105.
178	178	Sec. 1306.105. RENEWAL OF REGISTRATION. (a) To renew a
179	179	registration, a reroofing contractor shall submit an application
180	180	for renewal to the department on a form prescribed by the executive
181	181	director.
182	182	(b) The application must be accompanied by:
183	183	(1) documentation of any changes in the reroofing
184	184	contractor's information submitted to the department under Section
185	185	1306.103(b); and
186	186	(2) the renewal fee.
187	187	SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
188	188	Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
189	189	registered reroofing contractor shall include the contractor's
190	190	registration number in each:
191	191	(1) contract for a reroofing project in the manner
192	192	provided by Section 1306.153; and
193	193	(2) advertisement for a reroofing service by the
194	194	contractor, including on each business card, flyer, or door card
195	195	and in each television, radio, social media, or newspaper
196	196	advertisement.
197	197	(b) Other than the inclusion of a registration number in the
198	198	manner prescribed by this section, a reroofing contractor may not
199	199	make any representation or statement regarding the effect of being
200	200	issued a registration under this chapter or the fact that the
201	201	contractor has been issued a registration under this chapter.
202	202	Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
203	203	DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
204	204	advertise or promise to pay or rebate all or part of an insurance
205	205	deductible in connection with a reroofing project in violation of
206	206	Section 27.02, Business & Commerce Code.
207	207	Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
208	208	engaging in a reroofing project, a registered reroofing contractor
209	209	must provide a written contract to the property owner that is signed
210	210	by the reroofing contractor or the contractor's designee and the
211	211	property owner.
212	212	(b) A written contract under Subsection (a) must include:
213	213	(1) the following statement printed in at least
214	214	12-point bold type: "The work to be performed under this contract
215	215	must commence not later than the 30th day after the date the
216	216	reroofing contractor collects an initial payment, unless a longer
217	217	period is agreed to in writing and signed by both parties to this
218	218	contract.";
219	219	(2) the reroofing contractor's contact information,
220	220	including physical address, e-mail address, and telephone number;
221	221	(3) the reroofing contractor's policy regarding
222	222	cancellation of the contract; and
223	223	(4) the reroofing contractor's registration number in
224	224	at least 12-point bold type in the following form: "Texas
225	225	Registered Reroofing Contractor Number (registration number)."
226	226	Sec. 1306.154. COMPLIANCE WITH OTHER LAW. (a) A registered
227	227	reroofing contractor shall comply with each applicable:
228	228	(1) building code adopted by this state or a political
229	229	subdivision of this state; and
230	230	(2) order, ordinance, or rule of a political
231	231	subdivision relating to the issuance of a permit for or the
232	232	performance of a reroofing project in the political subdivision.
233	233	(b) A registered reroofing contractor shall comply with
234	234	Chapter 58, Business & Commerce Code, during a natural disaster, as
235	235	that term is defined by Section 58.001, Business & Commerce Code.
236	236	(c) The registered reroofing contractor's contract
237	237	cancellation policy must be consistent with state law.
238	238	SUBCHAPTER E. ENFORCEMENT
239	239	Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The
240	240	department shall investigate any complaint alleging a violation of
241	241	this chapter or a rule adopted under this chapter.
242	242	(b) A complaint must be filed in a manner prescribed by the
243	243	department.
244	244	Sec. 1306.202. ADMINISTRATIVE PENALTY. The commission or
245	245	executive director may impose an administrative penalty on a person
246	246	under Subchapter F, Chapter 51, regardless of whether the person is
247	247	registered under this chapter, if the person violates:
248	248	(1) this chapter or a rule adopted under this chapter;
249	249	or
250	250	(2) an order of the commission or executive director.
251	251	Sec. 1306.203. SANCTIONS. The commission may impose
252	252	sanctions as provided by Section 51.353.
253	253	Sec. 1306.204. CEASE AND DESIST ORDER. The executive
254	254	director may issue a cease and desist order under Section 51.3513 to
255	255	prohibit any person from performing or engaging in a reroofing
256	256	project if the person is not in compliance with this chapter.
257	257	Sec. 1306.205. CRIMINAL PENALTY. (a) A person commits an
258	258	offense if the person violates this chapter.
259	259	(b) An offense under this section is a Class C misdemeanor.
260	260	(c) If the conduct constituting an offense under this
261	261	section also constitutes an offense under Section 32.42(b)(12),
262	262	Penal Code, the person may be prosecuted under either section or
263	263	under both sections.
264	264	Sec. 1306.206. DECEPTIVE TRADE PRACTICE. A reroofing
265	265	contractor who advertises that the contractor holds a registration
266	266	under this chapter commits a false, misleading, or deceptive act or
267	267	practice within the meaning of Section 17.46, Business & Commerce
268	268	Code, if the reroofing contractor does not hold a valid
269	269	registration issued under this chapter.
270	270	SECTION 2. The Texas Commission of Licensing and Regulation
271	271	shall adopt rules necessary to implement Chapter 1306, Occupations
272	272	Code, as added by this Act, not later than January 1, 2020.
273	273	SECTION 3. The Texas Department of Licensing and Regulation
274	274	shall begin issuing registrations under Chapter 1306, Occupations
275	275	Code, as added by this Act, not later than March 1, 2020.
276	276	SECTION 4. (a) Except as provided by Subsection (b) of this
277	277	section, this Act takes effect September 1, 2019.
278	278	(b) Section 1306.101, Occupations Code, and Subchapters D
279	279	and E, Chapter 1306, Occupations Code, as added by this Act, take
280	280	effect March 1, 2020.