87R3320 DRS-F
By: Pacheco H.B. No. 2777
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of reroofing contractors; providing
administrative and civil penalties; authorizing fees; 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. 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. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Commission of
Licensing and Regulation.
(2) "Department" means the Texas Department of
Licensing and Regulation.
(3) "Executive director" means the executive director
of the department.
(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 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.
(7) "Reroofing project" means a project to repair,
recover, or replace an existing roof covering on a residential or
commercial structure.
Sec. 1306.003. EXEMPTIONS. (a) This chapter does not apply
to:
(1) a laborer or other individual who repairs,
recovers, or replaces existing roof coverings on residential or
commercial structures as an employee of or under contract with a
registered reroofing contractor;
(2) a sales manager, project manager, administrative
assistant, or any other individual employed or otherwise engaged by
a registered reroofing contractor in the ordinary course of the
contractor's business;
(3) 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;
(4) 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;
(5) a person who constructs new residential or
commercial structures; or
(6) a person who is licensed as a retailer of
manufactured homes under Chapter 1201 and is performing a reroofing
project on a manufactured home as defined by Section 1201.003.
(b) An individual who is exempt under Subsection (a)(1) or
(2) must operate in the name of the registered reroofing
contractor, and the contractor is responsible for the conduct of
the individual while the individual performs or otherwise engages
in the reroofing project.
Sec. 1306.004. APPLICATION OF CHAPTER. This chapter does
not authorize a registered reroofing contractor to engage in:
(1) the practice of engineering as defined by Section
1001.003; or
(2) the practice of architecture as defined by Section
1051.001.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 1306.051. GENERAL POWERS AND DUTIES. The department
shall administer and enforce this chapter.
Sec. 1306.052. RULES. The commission by rule shall:
(1) prescribe the requirements for the issuance and
renewal of a registration under this chapter; and
(2) provide for the issuance of a temporary emergency
registration at a reduced fee for reroofing projects on property
located in an area for which the governor declares a state of
disaster under Chapter 418, Government Code.
Sec. 1306.053. FEES. (a) Except as provided by Subsection
(b), the commission shall establish and collect reasonable and
necessary fees in amounts not to exceed a total amount sufficient to
cover the state's 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 department 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) a summary of any disciplinary action taken by the
department against the reroofing contractor; and
(3) any other information required by the department.
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 department shall verify the registration of an applicant
described by Subsection (a)(1). The department shall establish a
verification system to ensure a timely response to a request for
verification of a registration.
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. APPLICATION FOR REGISTRATION. (a) An
applicant for registration shall submit an application to the
department 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. 1306.103. ISSUANCE OF REGISTRATION; TERM. (a) The
department shall issue a registration to an applicant who complies
with the registration requirements of this chapter not later than
the 10th day after the date the department 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 1306.104.
Sec. 1306.104. RENEWAL OF REGISTRATION. (a) To renew a
registration, a reroofing contractor shall submit an application
for renewal to the department 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 department under Section
1306.102(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
holding a registration issued under this chapter or the fact that
the contractor holds a registration issued under this chapter.
Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
DEDUCTIBLES PROHIBITED; REVOCATION OF REGISTRATION. (a) A
registered reroofing contractor may not advertise or promise to
pay, rebate, waive, absorb, or otherwise not collect all or part of
an insurance deductible in connection with a reroofing project in
violation of Section 27.02, Business & Commerce Code.
(b) A reroofing contractor who violates Subsection (a) is
subject to revocation of the contractor's registration, and the
contractor is ineligible for registration under this chapter before
the first anniversary of the date the registration is revoked.
Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
engaging in a reroofing project, a registered reroofing contractor
must provide to the property owner a written contract that is signed
by the reroofing contractor and the property owner.
(b) The written contract 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, which must be consistent with state
law;
(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)"; and
(5) the department's contact information for
complaints directed to the department.
SUBCHAPTER E. ENFORCEMENT
Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The
department 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
department.
Sec. 1306.202. ADMINISTRATIVE PENALTY. The commission 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 commission or executive director.
Sec. 1306.203. ADMINISTRATIVE SANCTIONS. The commission
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 or a
rule adopted under this chapter.
Sec. 1306.205. CIVIL PENALTY. The attorney general or
executive director may institute an action for a civil penalty
under this chapter as provided by Section 51.352. The amount of a
civil penalty assessed under this section may not exceed $500 for
each violation.
SECTION 2. Not later than April 1, 2022, the Texas
Commission of Licensing and Regulation shall adopt the rules,
procedures, and fees necessary to administer Chapter 1306,
Occupations Code, as added by this Act.
SECTION 3. The Texas Department of Licensing and Regulation
is not required to begin issuing registrations under Chapter 1306,
Occupations Code, as added by this Act, before June 1, 2022.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2021.
(b) Section 1306.101, Occupations Code, and Subchapter E,
Chapter 1306, Occupations Code, as added by this Act, take effect
August 1, 2022.