88R6393 DIO-F
By: Meza H.B. No. 3890
A BILL TO BE ENTITLED
AN ACT
relating to the regulation and voluntary licensing of reroofing
contractors by the Texas Department of Licensing and Regulation;
providing administrative and civil penalties; authorizing fees.
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. 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) "Licensed reroofing contractor" means a reroofing
contractor who holds a license issued under this chapter.
(5) "Person" means an individual or business entity.
(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.
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
prescribe the requirements for the issuance and renewal of a
license under this chapter.
Sec. 1306.053. FEES. The commission shall establish by
rule and collect reasonable and necessary fees in amounts not to
exceed the total amount sufficient to cover the state's costs of
administering this chapter.
SUBCHAPTER C. REROOFING CONTRACTOR ADVISORY BOARD
Sec. 1306.101. DEFINITION. In this subchapter, "advisory
board" means the reroofing contractor advisory board.
Sec. 1306.102. REROOFING CONTRACTOR ADVISORY BOARD. (a)
The reroofing contractor advisory board shall advise the commission
on educational matters, operational matters, and common practices
in the reroofing industry.
(b) Section 2110.003, Government Code, does not apply to the
advisory board.
Sec. 1306.103. ADVISORY BOARD MEMBERSHIP. (a) The
advisory board is composed of seven members as follows:
(1) six members appointed by the presiding officer of
the commission with the commission's approval as follows:
(A) four members who are licensed reroofing
contractors; and
(B) two public members; and
(2) one member who is the administrative head, or the
administrative head's designee, of a state agency or office that is
selected by the commission.
(b) The advisory board members must include two members who
are affiliated with a statewide association of reroofing
contractors.
(c) In appointing advisory board members under Subsection
(a)(1)(A), the presiding officer of the commission shall consider
the geographical diversity of the members.
(d) Appointments to the advisory board shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
Sec. 1306.104. ELIGIBILITY OF PUBLIC MEMBERS. A person is
not eligible for appointment as a public member of the advisory
board if the person or the person's spouse:
(1) is licensed by an occupational regulatory agency
in the reroofing or construction industry;
(2) is employed by or participates in the management
of an agency or business entity related to the reroofing or
construction industry; or
(3) has, other than as a consumer, a financial
interest in a business entity related to the reroofing or
construction industry.
Sec. 1306.105. TERMS; VACANCIES. (a) Except as provided by
Subsection (b), advisory board members:
(1) serve terms of two years, with the terms expiring
on February 1 of each odd-numbered year; and
(2) may not consecutively serve more than two full
terms.
(b) The advisory board member appointed to the position
described by Section 1306.103(a)(2) is an ex officio member and
shall continue to serve during the time the member holds office.
(c) If a vacancy occurs during a term of a member other than
the member described by Section 1306.103(a)(2), the presiding
officer of the commission shall appoint a replacement who meets the
qualifications of the vacated position to serve for the remainder
of the term.
Sec. 1306.106. PRESIDING OFFICER. (a) The governor shall
designate a member of the advisory board as the presiding officer of
the board to serve in that capacity at the pleasure of the governor.
(b) The presiding officer of the advisory board must be a
licensed reroofing contractor.
SUBCHAPTER D. VOLUNTARY LICENSE
Sec. 1306.151. VOLUNTARY REROOFING CONTRACTOR LICENSE; USE
OF TITLE. A reroofing contractor may not advertise that the company
is licensed by this state or use the title "licensed reroofing
contractor" unless the contractor holds a license issued under this
chapter.
Sec. 1306.152. APPLICATION. (a) An applicant for a
reroofing contractor license must submit an application to the
department on a form prescribed by the executive director.
(b) A person may obtain a license for more than one business
entity by applying separately for each entity as required by this
chapter.
(c) The application must be accompanied by:
(1) if the applicant is a sole proprietorship that
operates under a name other than the sole proprietor's legal name,
proof of an assumed name certificate issued by the secretary of
state reflecting the business name;
(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;
(4) proof that the applicant satisfies the general
liability insurance coverage and surety bond requirements
established by commission rule; and
(5) the application fee established by commission
rule.
(d) The department shall conduct an examination of any
criminal conviction of an applicant, including obtaining any
criminal history record information permitted by law.
Sec. 1306.153. ISSUANCE OF LICENSE; LICENSE NUMBER. (a)
Not later than the 10th day after the date the department receives
the application, the department shall issue a license to an
applicant who complies with the license requirements of this
chapter.
(b) A license initially issued under this chapter must
include a unique license number. Any renewal of the license must
include the number included in the initial issuance of the license.
(c) A license issued under this chapter is not assignable or
transferable.
Sec. 1306.154. LICENSE TERM. A license issued under this
chapter is valid for two years from the date of issuance and may be
renewed before expiration in the manner provided by Section
1306.155.
Sec. 1306.155. RENEWAL OF LICENSE. (a) To renew a license,
a reroofing contractor must 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
1306.152(c); and
(2) the renewal fee established by commission rule.
Sec. 1306.156. LICENSE DATABASE. The department shall make
available on the department's Internet website a publicly
accessible list of all licensed reroofing contractors who are in
good standing. The list must be searchable by name and location.
The list must contain the following information for each licensed
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. 1306.157. LICENSE VERIFICATION. On request of a
county or municipal building official, the department shall verify
the license status of a reroofing contractor. The department shall
establish a verification system to ensure a timely response to a
request for license status verification of a reroofing contractor.
SUBCHAPTER E. PRACTICE BY LICENSE HOLDER
Sec. 1306.201. DISCLOSURE OF LICENSE NUMBER. A licensed
reroofing contractor shall include the contractor's license number
in each:
(1) contract for a reroofing project in the manner
provided by Section 1306.203; 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.
Sec. 1306.202. CERTAIN PRACTICES RELATING TO INSURANCE
DEDUCTIBLES PROHIBITED; REVOCATION OF LICENSE. (a) A licensed
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 licensed reroofing contractor who violates Subsection
(a) is subject to revocation of the contractor's license and is
ineligible for licensure under this chapter before the first
anniversary of the date the license is revoked.
Sec. 1306.203. CONTRACT FOR REROOFING PROJECT. (a) Before
engaging in a reroofing project, a licensed 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 reroofing contractor's contact information,
including physical address, e-mail address, and telephone number;
(2) the reroofing contractor's policy regarding
cancellation of the contract, which must be consistent with state
law;
(3) the reroofing contractor's license number in at
least 12-point bold type in the following form: "Texas Licensed
Reroofing Contractor Number (license number)"; and
(4) the department's contact information for
complaints directed to the department.
SUBCHAPTER F. ENFORCEMENT
Sec. 1306.251. 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 the manner prescribed by
the department.
Sec. 1306.252. ADMINISTRATIVE PENALTY. The commission or
executive director may impose an administrative penalty on a person
under Subchapter F, Chapter 51, 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. 1306.253. ADMINISTRATIVE SANCTIONS. The commission
may impose sanctions as provided by Section 51.353.
Sec. 1306.254. 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, 2024, 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 licenses under Chapter 1306,
Occupations Code, as added by this Act, before June 1, 2024.
SECTION 4. This Act takes effect September 1, 2023.