Texas 2021 - 87th Regular

Texas House Bill HB2777 Compare Versions

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

Old	New	Differences
1	1	87R3320 DRS-F
2	2	By: Pacheco H.B. No. 2777
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; requiring an
9	9	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) "Commission" means the Texas Commission of
19	19	Licensing and Regulation.
20	20	(2) "Department" means the Texas Department of
21	21	Licensing and Regulation.
22	22	(3) "Executive director" means the executive director
23	23	of the department.
24	24	(4) "Person" means an individual or business entity.
25	25	(5) "Registered reroofing contractor" means a
26	26	reroofing contractor who is registered under this chapter and who
27	27	holds a statement of registration number issued under this chapter.
28	28	(6) "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	(7) "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. 1306.003. EXEMPTIONS. (a) This chapter does not apply
39	39	to:
40	40	(1) a laborer or other individual who repairs,
41	41	recovers, or replaces existing roof coverings on residential or
42	42	commercial structures as an employee of or under contract with a
43	43	registered reroofing contractor;
44	44	(2) a sales manager, project manager, administrative
45	45	assistant, or any other individual employed or otherwise engaged by
46	46	a registered reroofing contractor in the ordinary course of the
47	47	contractor's business;
48	48	(3) an owner of residential property or property
49	49	primarily used for agricultural purposes, or an employee of the
50	50	owner, who performs a reroofing project on the owner's property;
51	51	(4) an authorized employee or representative of the
52	52	United States government, this state, or a county, municipality, or
53	53	other political subdivision of this state acting in an official
54	54	capacity;
55	55	(5) a person who constructs new residential or
56	56	commercial structures; or
57	57	(6) a person who is licensed as a retailer of
58	58	manufactured homes under Chapter 1201 and is performing a reroofing
59	59	project on a manufactured home as defined by Section 1201.003.
60	60	(b) An individual who is exempt under Subsection (a)(1) or
61	61	(2) must operate in the name of the registered reroofing
62	62	contractor, and the contractor is responsible for the conduct of
63	63	the individual while the individual performs or otherwise engages
64	64	in the reroofing project.
65	65	Sec. 1306.004. APPLICATION OF CHAPTER. This chapter does
66	66	not authorize a registered reroofing contractor to engage in:
67	67	(1) the practice of engineering as defined by Section
68	68	1001.003; or
69	69	(2) the practice of architecture as defined by Section
70	70	1051.001.
71	71	SUBCHAPTER B. POWERS AND DUTIES
72	72	Sec. 1306.051. GENERAL POWERS AND DUTIES. The department
73	73	shall administer and enforce this chapter.
74	74	Sec. 1306.052. RULES. The commission by rule shall:
75	75	(1) prescribe the requirements for the issuance and
76	76	renewal of a registration under this chapter; and
77	77	(2) provide for the issuance of a temporary emergency
78	78	registration at a reduced fee for reroofing projects on property
79	79	located in an area for which the governor declares a state of
80	80	disaster under Chapter 418, Government Code.
81	81	Sec. 1306.053. FEES. (a) Except as provided by Subsection
82	82	(b), the commission shall establish and collect reasonable and
83	83	necessary fees in amounts not to exceed a total amount sufficient to
84	84	cover the state's costs of administering this chapter.
85	85	(b) The fees adopted under this chapter must include fees
86	86	for:
87	87	(1) an initial application for registration, in an
88	88	amount not to exceed $250; and
89	89	(2) the renewal of a registration, in an amount not to
90	90	exceed $100.
91	91	Sec. 1306.054. REGISTRATION DATABASE. The department shall
92	92	make available on its Internet website a publicly accessible list
93	93	of all registered reroofing contractors who are in good standing.
94	94	The list must be searchable by name and location. The list must
95	95	contain the following for each registered reroofing contractor:
96	96	(1) the name, mailing address, and telephone number of
97	97	the reroofing contractor;
98	98	(2) a summary of any disciplinary action taken by the
99	99	department against the reroofing contractor; and
100	100	(3) any other information required by the department.
101	101	Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or
102	102	municipal building official may not grant or approve a building or
103	103	construction permit for a reroofing project unless the applicant
104	104	for the permit is:
105	105	(1) a registered reroofing contractor; or
106	106	(2) exempt from registration under this chapter.
107	107	(b) On request of a county or municipal building official,
108	108	the department shall verify the registration of an applicant
109	109	described by Subsection (a)(1). The department shall establish a
110	110	verification system to ensure a timely response to a request for
111	111	verification of a registration.
112	112	SUBCHAPTER C. REGISTRATION REQUIREMENTS
113	113	Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the
114	114	person holds a registration issued under this chapter, a person may
115	115	not:
116	116	(1) perform or otherwise engage in a reroofing
117	117	project; or
118	118	(2) solicit, advertise, or contract to perform or
119	119	engage in a reroofing project.
120	120	(b) A registration under this chapter shall be issued in the
121	121	form of a statement of registration number.
122	122	(c) A registration issued under this chapter:
123	123	(1) is valid only with respect to the person named on
124	124	the registration; and
125	125	(2) authorizes the registration holder to operate as a
126	126	reroofing contractor.
127	127	(d) A person may obtain a registration for more than one
128	128	business entity. A registration is not transferable.
129	129	Sec. 1306.102. APPLICATION FOR REGISTRATION. (a) An
130	130	applicant for registration shall submit an application to the
131	131	department on a form prescribed by the executive director.
132	132	(b) The application must be accompanied by:
133	133	(1) if the applicant is an individual, proof of the
134	134	applicant's identity;
135	135	(2) if the applicant is a business entity, proof of the
136	136	applicant's existence and confirmation of authority to conduct
137	137	business in this state under a certificate of status issued by the
138	138	secretary of state that is in good standing;
139	139	(3) proof of the mailing address and telephone number
140	140	of the applicant's residence or business location; and
141	141	(4) the application fee.
142	142	Sec. 1306.103. ISSUANCE OF REGISTRATION; TERM. (a) The
143	143	department shall issue a registration to an applicant who complies
144	144	with the registration requirements of this chapter not later than
145	145	the 10th day after the date the department receives the
146	146	application.
147	147	(b) A registration is valid for two years from the date of
148	148	issuance and may be renewed before expiration in the manner
149	149	provided by Section 1306.104.
150	150	Sec. 1306.104. RENEWAL OF REGISTRATION. (a) To renew a
151	151	registration, a reroofing contractor shall submit an application
152	152	for renewal to the department on a form prescribed by the executive
153	153	director.
154	154	(b) The application must be accompanied by:
155	155	(1) documentation of any changes in the reroofing
156	156	contractor's information submitted to the department under Section
157	157	1306.102(b); and
158	158	(2) the renewal fee.
159	159	SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER
160	160	Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A
161	161	registered reroofing contractor shall include the contractor's
162	162	registration number in each:
163	163	(1) contract for a reroofing project in the manner
164	164	provided by Section 1306.153; and
165	165	(2) advertisement for a reroofing service by the
166	166	contractor, including on each business card, flyer, or door card
167	167	and in each television, radio, social media, or newspaper
168	168	advertisement.
169	169	(b) Other than the inclusion of a registration number in the
170	170	manner prescribed by this section, a reroofing contractor may not
171	171	make any representation or statement regarding the effect of
172	172	holding a registration issued under this chapter or the fact that
173	173	the contractor holds a registration issued under this chapter.
174	174	Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE
175	175	DEDUCTIBLES PROHIBITED; REVOCATION OF REGISTRATION. (a) A
176	176	registered reroofing contractor may not advertise or promise to
177	177	pay, rebate, waive, absorb, or otherwise not collect all or part of
178	178	an insurance deductible in connection with a reroofing project in
179	179	violation of Section 27.02, Business & Commerce Code.
180	180	(b) A reroofing contractor who violates Subsection (a) is
181	181	subject to revocation of the contractor's registration, and the
182	182	contractor is ineligible for registration under this chapter before
183	183	the first anniversary of the date the registration is revoked.
184	184	Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before
185	185	engaging in a reroofing project, a registered reroofing contractor
186	186	must provide to the property owner a written contract that is signed
187	187	by the reroofing contractor and the property owner.
188	188	(b) The written contract must include:
189	189	(1) the following statement printed in at least
190	190	12-point bold type: "The work to be performed under this contract
191	191	must commence not later than the 30th day after the date the
192	192	reroofing contractor collects an initial payment, unless a longer
193	193	period is agreed to in writing and signed by both parties to this
194	194	contract.";
195	195	(2) the reroofing contractor's contact information,
196	196	including physical address, e-mail address, and telephone number;
197	197	(3) the reroofing contractor's policy regarding
198	198	cancellation of the contract, which must be consistent with state
199	199	law;
200	200	(4) the reroofing contractor's registration number in
201	201	at least 12-point bold type in the following form: "Texas
202	202	Registered Reroofing Contractor Number (registration number)"; and
203	203	(5) the department's contact information for
204	204	complaints directed to the department.
205	205	SUBCHAPTER E. ENFORCEMENT
206	206	Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The
207	207	department shall investigate any complaint alleging a violation of
208	208	this chapter or a rule adopted under this chapter.
209	209	(b) A complaint must be filed in a manner prescribed by the
210	210	department.
211	211	Sec. 1306.202. ADMINISTRATIVE PENALTY. The commission or
212	212	executive director may impose an administrative penalty on a person
213	213	under Subchapter F, Chapter 51, regardless of whether the person is
214	214	registered under this chapter, if the person violates:
215	215	(1) this chapter or a rule adopted under this chapter;
216	216	or
217	217	(2) an order of the commission or executive director.
218	218	Sec. 1306.203. ADMINISTRATIVE SANCTIONS. The commission
219	219	may impose sanctions as provided by Section 51.353.
220	220	Sec. 1306.204. CEASE AND DESIST ORDER. The executive
221	221	director may issue a cease and desist order under Section 51.3513 to
222	222	prohibit any person from performing or engaging in a reroofing
223	223	project if the person is not in compliance with this chapter or a
224	224	rule adopted under this chapter.
225	225	Sec. 1306.205. CIVIL PENALTY. The attorney general or
226	226	executive director may institute an action for a civil penalty
227	227	under this chapter as provided by Section 51.352. The amount of a
228	228	civil penalty assessed under this section may not exceed $500 for
229	229	each violation.
230	230	SECTION 2. Not later than April 1, 2022, the Texas
231	231	Commission of Licensing and Regulation shall adopt the rules,
232	232	procedures, and fees necessary to administer Chapter 1306,
233	233	Occupations Code, as added by this Act.
234	234	SECTION 3. The Texas Department of Licensing and Regulation
235	235	is not required to begin issuing registrations under Chapter 1306,
236	236	Occupations Code, as added by this Act, before June 1, 2022.
237	237	SECTION 4. (a) Except as provided by Subsection (b) of this
238	238	section, this Act takes effect September 1, 2021.
239	239	(b) Section 1306.101, Occupations Code, and Subchapter E,
240	240	Chapter 1306, Occupations Code, as added by this Act, take effect
241	241	August 1, 2022.