87R20752 JES-F
By: Morrison H.B. No. 3422
Substitute the following for H.B. No. 3422:
By: Turner of Tarrant C.S.H.B. No. 3422
A BILL TO BE ENTITLED
AN ACT
relating to restrictions under disaster remediation contracts;
providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 58.001(1) and (2), Business & Commerce
Code, are amended to read as follows:
(1) "Disaster remediation" means the removal,
cleaning, sanitizing, demolition, reconstruction, or other
treatment of existing improvements to real property performed
because of damage or destruction to that property caused by a
natural disaster.
(2) "Disaster remediation contractor" means a person
who engages in disaster remediation for compensation, other than a
person who has a permit, license, registration, or other
authorization from the Texas Commission on Environmental Quality
for the collection, transportation, treatment, storage,
processing, or disposal of solid waste, but does not include an
entity approved by the Internal Revenue Service as tax exempt under
Section 501(c)(3), Internal Revenue Code of 1986.
SECTION 2. Section 58.003(b), Business & Commerce Code, is
amended to read as follows:
(b) A disaster remediation contractor:
(1) may not require a person to make a full or partial
payment under a contract before the contractor begins work, unless
the amount of such payment is held in escrow;
(2) may not require that the amount of any partial
payment under the contract exceed an amount reasonably
proportionate to the work performed, including any materials
delivered; and
(3) shall include in any contract for disaster
remediation services the following statement in conspicuous,
boldfaced type of at least 10 points in size: "This contract is
subject to Chapter 58, Business & Commerce Code. A contractor may
not require a full or partial payment before the contractor begins
work and may not require partial payments in an amount that exceeds
an amount reasonably proportionate to the work performed, including
any materials delivered."
SECTION 3. Section 58.004, Business & Commerce Code, is
amended to read as follows:
Sec. 58.004. DECEPTIVE TRADE PRACTICE; CIVIL PENALTY. (a)
A violation of this chapter by a disaster remediation contractor is
a false, misleading, or deceptive act or practice as defined by
Section 17.46(b), and any remedy under Subchapter E, Chapter 17, is
available for a violation of this chapter.
(b) A disaster remediation contractor who violates Section
58.003(b)(1) or (2) is liable to this state for a civil penalty in
an amount of not more than:
(1) $500 for each violation that was committed without
the intent to defraud the person contracting for disaster
remediation services; or
(2) $2,000 for each violation that was committed with
the intent to defraud the person contracting for disaster
remediation services.
(c) The attorney general may bring an action in the name of
this state against a disaster remediation contractor that violates
Section 58.003(b)(1) or (2) for recovery of a civil penalty imposed
under Subsection (b).
(d) An action under Subsection (c) may be brought in a
district court in:
(1) Travis County; or
(2) a county in which any part of the violation occurs.
SECTION 4. The changes in law made by this Act apply only to
a disaster remediation contract entered into on or after the
effective date of this Act. A disaster remediation contract
entered into before the effective date of this Act is governed by
the law in effect when the contract was entered into, and the former
law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2021.