Texas 2021 - 87th Regular

Texas House Bill HB3422 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		87R20752 JES-F
2	2		By: Morrison H.B. No. 3422
	3	+	Substitute the following for H.B. No. 3422:
	4	+	By: Turner of Tarrant C.S.H.B. No. 3422
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to restrictions under disaster remediation contracts;
8	10		providing a civil penalty.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Sections 58.001(1) and (2), Business & Commerce
11	13		Code, are amended to read as follows:
12	14		(1) "Disaster remediation" means the removal,
13	15		cleaning, sanitizing, demolition, reconstruction, or other
14	16		treatment of existing improvements to real property performed
15	17		because of damage or destruction to that property caused by a
16	18		natural disaster.
17	19		(2) "Disaster remediation contractor" means a person
18	20		who engages in disaster remediation for compensation, other than a
19	21		person who has a permit, license, registration, or other
20	22		authorization from the Texas Commission on Environmental Quality
21	23		for the collection, transportation, treatment, storage,
22	24		processing, or disposal of solid waste, but does not include an
23	25		entity approved by the Internal Revenue Service as tax exempt under
24	26		Section 501(c)(3), Internal Revenue Code of 1986.
25	27		SECTION 2. Section 58.003(b), Business & Commerce Code, is
26	28		amended to read as follows:
27	29		(b) A disaster remediation contractor:
28	30		(1) may not require a person to make a full or partial
29	31		payment under a contract before the contractor begins work, unless
30	32		the amount of such payment is held in escrow;
31	33		(2) may not require that the amount of any partial
32	34		payment under the contract exceed an amount reasonably
33	35		proportionate to the work performed, including any materials
34	36		delivered; and
35	37		(3) shall include in any contract for disaster
36	38		remediation services the following statement in conspicuous,
37	39		boldfaced type of at least 10 points in size: "This contract is
38	40		subject to Chapter 58, Business & Commerce Code. A contractor may
39	41		not require a full or partial payment before the contractor begins
40	42		work and may not require partial payments in an amount that exceeds
41	43		an amount reasonably proportionate to the work performed, including
42	44		any materials delivered."
43	45		SECTION 3. Section 58.004, Business & Commerce Code, is
44	46		amended to read as follows:
45	47		Sec. 58.004. DECEPTIVE TRADE PRACTICE; CIVIL PENALTY. (a)
46	48		A violation of this chapter by a disaster remediation contractor is
47	49		a false, misleading, or deceptive act or practice as defined by
48	50		Section 17.46(b), and any remedy under Subchapter E, Chapter 17, is
49	51		available for a violation of this chapter.
50	52		(b) A disaster remediation contractor who violates Section
51	53		58.003(b)(1) or (2) is liable to this state for a civil penalty in
52	54		an amount of not more than:
53	55		(1) $500 for each violation that was committed without
54	56		the intent to defraud the person contracting for disaster
55	57		remediation services; or
56	58		(2) $2,000 for each violation that was committed with
57	59		the intent to defraud the person contracting for disaster
58	60		remediation services.
59	61		(c) The attorney general may bring an action in the name of
60	62		this state against a disaster remediation contractor that violates
61	63		Section 58.003(b)(1) or (2) for recovery of a civil penalty imposed
62	64		under Subsection (b).
63	65		(d) An action under Subsection (c) may be brought in a
64	66		district court in:
65	67		(1) Travis County; or
66	68		(2) a county in which any part of the violation occurs.
67	69		SECTION 4. The changes in law made by this Act apply only to
68	70		a disaster remediation contract entered into on or after the
69	71		effective date of this Act. A disaster remediation contract
70	72		entered into before the effective date of this Act is governed by
71	73		the law in effect when the contract was entered into, and the former
72	74		law is continued in effect for that purpose.
73	75		SECTION 5. This Act takes effect September 1, 2021.