Texas 2019 - 86th Regular

Texas Senate Bill SB985 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R6283 JES-F
1	2		By: Kolkhorst S.B. No. 985
2		-	(In the Senate - Filed February 21, 2019; March 1, 2019,
3		-	read first time and referred to Committee on Business & Commerce;
4		-	April 30, 2019, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 9, Nays 0; April 30, 2019,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 985 By: Nichols
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to restrictions under disaster remediation contracts;
14	8		creating a criminal offense.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		SECTION 1. Sections 58.001(1) and (2), Business & Commerce
17	11		Code, are amended to read as follows:
18	12		(1) "Disaster remediation" means the removal,
19	13		cleaning, sanitizing, demolition, reconstruction, or other
20	14		treatment of existing improvements to real property performed
21	15		because of damage or destruction to that property caused by a
22	16		natural disaster.
23	17		(2) "Disaster remediation contractor" means a person
24	18		who engages in disaster remediation for compensation, other than a
25	19		person who has a permit, license, registration, or other
26	20		authorization from the Texas Commission on Environmental Quality
27	21		for the collection, transportation, treatment, storage,
28	22		processing, or disposal of solid waste, but does not include an
29	23		entity approved by the Internal Revenue Service as tax exempt under
30	24		Section 501(c)(3), Internal Revenue Code of 1986.
31	25		SECTION 2. Section 58.003(b), Business & Commerce Code, is
32	26		amended to read as follows:
33	27		(b) A disaster remediation contractor:
34	28		(1) may not require a person to make a full or partial
35	29		payment under a contract before the contractor begins work, unless
36		-	the amount of such payment is held in escrow with an escrow officer
37		-	who meets the requirements of Section 2652.001, Insurance Code;
	30	+	the amount of such payment is held in escrow with a title insurance
	31	+	company or title insurance agent operating in accordance with Title
	32	+	11, Insurance Code;
38	33		(2) may not require that the amount of any partial
39	34		payment under the contract exceed an amount reasonably
40	35		proportionate to the work performed, including any materials
41	36		delivered; and
42	37		(3) shall include in any contract for disaster
43	38		remediation services the following statement in conspicuous,
44	39		boldfaced type of at least 10 points in size: "This contract is
45	40		subject to Chapter 58, Business & Commerce Code. A contractor may
46	41		not require a full or partial payment before the contractor begins
47	42		work and may not require partial payments in an amount that exceeds
48	43		an amount reasonably proportionate to the work performed, including
49	44		any materials delivered."
50	45		SECTION 3. Section 58.004, Business & Commerce Code, is
51	46		amended to read as follows:
52	47		Sec. 58.004. PENALTIES [DECEPTIVE TRADE PRACTICE]. (a) A
53	48		violation of this chapter by a disaster remediation contractor is a
54	49		false, misleading, or deceptive act or practice as defined by
55	50		Section 17.46(b), and any remedy under Subchapter E, Chapter 17, is
56	51		available for a violation of this chapter.
57	52		(b) A disaster remediation contractor who violates Section
58	53		58.003(b)(1) or (2) commits an offense. An offense under this
59	54		section is:
60	55		(1) a Class B misdemeanor if the offense was committed
61	56		without the intent to defraud the person contracting for disaster
62	57		remediation services; or
63	58		(2) a felony of the third degree if the offense was
64	59		committed with the intent to defraud the person contracting for
65	60		disaster remediation services.
66	61		(c) It is a defense to prosecution under this section if the
67	62		disaster remediation contractor refunds any payment made in
68	63		violation of Section 58.003(b)(1) or (2) not later than the 15th day
69	64		following the receipt of a written demand alleging a violation of
70	65		Section 58.003(b)(1) or (2) sent by certified mail to the disaster
71	66		remediation contractor's last known business address or the address
72	67		of the disaster remediation contractor's registered agent.
73	68		SECTION 4. The changes in law made by this Act apply only to
74	69		a disaster remediation contract entered into on or after the
75	70		effective date of this Act. A disaster remediation contract
76	71		entered into before the effective date of this Act is governed by
77	72		the law in effect when the contract was entered into, and the former
78	73		law is continued in effect for that purpose.
79	74		SECTION 5. This Act takes effect September 1, 2019.
80		-	* * * * *