1 | 1 | | 89R12580 DNC-F |
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2 | 2 | | By: Curry H.B. No. 3344 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the regulation of roofing contractors; providing an |
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10 | 10 | | administrative penalty; authorizing a fee; creating a criminal |
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11 | 11 | | offense; requiring an occupational license. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Title 8, Occupations Code, is amended by adding |
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14 | 14 | | Chapter 1306 to read as follows: |
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15 | 15 | | CHAPTER 1306. ROOFING CONTRACTORS |
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16 | 16 | | SUBCHAPTER A. GENERAL PROVISIONS |
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17 | 17 | | Sec. 1306.001. SHORT TITLE. This chapter may be cited as |
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18 | 18 | | the Roofing Contractor Consumer Protection Act. |
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19 | 19 | | Sec. 1306.002. DEFINITIONS. In this chapter: |
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20 | 20 | | (1) "Advisory board" means the roofing contractors |
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21 | 21 | | advisory board. |
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22 | 22 | | (2) "Commission" means the Texas Commission of |
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23 | 23 | | Licensing and Regulation. |
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24 | 24 | | (3) "Controlling person" means an individual who: |
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25 | 25 | | (A) is an owner, officer, or director of a |
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26 | 26 | | roofing contractor; |
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27 | 27 | | (B) possesses direct or indirect control of at |
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28 | 28 | | least 10 percent of the voting securities of a roofing contractor |
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29 | 29 | | that is a corporation; |
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30 | 30 | | (C) owns or possesses direct or indirect control |
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31 | 31 | | of at least $25,000 of the fair market value of a roofing |
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32 | 32 | | contractor; |
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33 | 33 | | (D) directly or indirectly possesses the power to |
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34 | 34 | | direct or cause the direction of the management or policies of a |
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35 | 35 | | roofing contractor; or |
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36 | 36 | | (E) has a direct or indirect interest in at least |
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37 | 37 | | 10 percent of the profits, proceeds, or capital gains of a roofing |
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38 | 38 | | contractor. |
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39 | 39 | | (4) "Department" means the Texas Department of |
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40 | 40 | | Licensing and Regulation. |
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41 | 41 | | (5) "Executive director" means the executive director |
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42 | 42 | | of the department. |
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43 | 43 | | (6) "Roofing contractor" means a person who performs |
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44 | 44 | | roofing services for compensation. |
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45 | 45 | | (7) "Roofing product" means any material commonly used |
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46 | 46 | | in the construction, installation, or replacement of a commercial |
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47 | 47 | | or residential roof. |
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48 | 48 | | (8) "Roofing services" means the installation, |
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49 | 49 | | construction, maintenance, repair, alteration, or modification of |
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50 | 50 | | a roofing product for a commercial or residential roof. |
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51 | 51 | | Sec. 1306.003. EXEMPTIONS. (a) This chapter does not apply |
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52 | 52 | | to: |
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53 | 53 | | (1) the owner of residential property or property used |
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54 | 54 | | primarily for agricultural purposes, or an employee of the owner, |
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55 | 55 | | who physically performs roofing services on the owner's dwelling or |
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56 | 56 | | on another structure located on the property; |
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57 | 57 | | (2) an authorized employee or representative of the |
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58 | 58 | | United States government, this state, or any county, municipality, |
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59 | 59 | | or other political subdivision of this state acting in an official |
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60 | 60 | | capacity; |
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61 | 61 | | (3) a person who furnishes any fabricated or finished |
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62 | 62 | | roofing product, material, or article of merchandise that is not |
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63 | 63 | | incorporated into or attached to real property by the person; |
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64 | 64 | | (4) an employee of a roofing contractor licensed under |
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65 | 65 | | this chapter; or |
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66 | 66 | | (5) a person who performs roofing services for the new |
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67 | 67 | | construction of a commercial or residential structure. |
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68 | 68 | | (b) Notwithstanding Subsection (a), a person described by |
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69 | 69 | | Subsection (a)(5) may be subject to the requirements of this |
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70 | 70 | | chapter to the extent the person provides roofing services other |
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71 | 71 | | than those described by that subdivision. |
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72 | 72 | | Sec. 1306.004. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER |
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73 | 73 | | LAW. This chapter shall be construed to be in addition to any |
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74 | 74 | | required licensure of persons in this state. This chapter is not |
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75 | 75 | | intended to conflict with or affect the authority of any state or |
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76 | 76 | | local agency, board, or department that administers or enforces any |
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77 | 77 | | law or ordinance or that establishes, administers, or enforces a |
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78 | 78 | | policy, rule, qualification, or standard for a trade or profession. |
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79 | 79 | | SUBCHAPTER B. ADVISORY BOARD |
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80 | 80 | | Sec. 1306.051. ROOFING CONTRACTORS ADVISORY BOARD. (a) |
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81 | 81 | | The advisory board consists of five members appointed by the |
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82 | 82 | | presiding officer of the commission with the approval of the |
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83 | 83 | | commission as follows: |
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84 | 84 | | (1) one general contractor who is not a roofing |
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85 | 85 | | contractor; |
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86 | 86 | | (2) three roofing contractors licensed under this |
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87 | 87 | | chapter; and |
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88 | 88 | | (3) one public member. |
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89 | 89 | | (b) For purposes of Subsection (a)(2), the commission may |
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90 | 90 | | appoint a roofing contractor who is not licensed under this chapter |
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91 | 91 | | if the contractor has fulfilled the requirements for the issuance |
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92 | 92 | | of a license and has submitted a complete application to the |
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93 | 93 | | department. The commission shall remove from the advisory board a |
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94 | 94 | | roofing contractor appointed under this subsection if the |
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95 | 95 | | contractor does not receive a license before the 31st day after the |
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96 | 96 | | date the contractor is appointed to the advisory board. |
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97 | 97 | | (c) Appointments to the advisory board shall be made without |
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98 | 98 | | regard to the race, color, disability, sex, religion, age, or |
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99 | 99 | | national origin of the appointee. |
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100 | 100 | | (d) Chapter 2110, Government Code, does not apply to the |
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101 | 101 | | composition or duration of the advisory board. |
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102 | 102 | | Sec. 1306.052. POWERS AND DUTIES OF ADVISORY BOARD. The |
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103 | 103 | | advisory board shall provide advice and recommendations to the |
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104 | 104 | | commission on the adoption of rules governing the repair of a |
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105 | 105 | | roofing system. |
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106 | 106 | | Sec. 1306.053. COMPENSATION. Advisory board members may |
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107 | 107 | | not receive compensation for serving as a member. |
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108 | 108 | | SUBCHAPTER C. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION |
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109 | 109 | | Sec. 1306.101. GENERAL POWERS AND DUTIES. The department, |
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110 | 110 | | executive director, or commission, as appropriate, may take action |
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111 | 111 | | as necessary to administer and enforce this chapter. |
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112 | 112 | | Sec. 1306.102. RULES. The commission shall adopt rules as |
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113 | 113 | | necessary to administer this chapter, including rules relating to: |
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114 | 114 | | (1) licensing roofing contractors and establishing |
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115 | 115 | | standards of conduct for license holders, including the display of |
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116 | 116 | | a license by a license holder; |
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117 | 117 | | (2) investigating and resolving complaints filed |
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118 | 118 | | under this chapter; |
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119 | 119 | | (3) establishing the minimum financial responsibility |
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120 | 120 | | requirements for license holders; |
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121 | 121 | | (4) administering a licensing examination; and |
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122 | 122 | | (5) prohibiting false, misleading, or deceptive |
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123 | 123 | | advertising practices by license holders. |
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124 | 124 | | Sec. 1306.103. CRIMINAL HISTORY BACKGROUND CHECK. The |
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125 | 125 | | department may obtain criminal history record information under |
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126 | 126 | | Subchapter F, Chapter 411, Government Code, for an applicant for or |
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127 | 127 | | holder of a license under this chapter. For purposes of Section |
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128 | 128 | | 411.093, Government Code, an applicant for or holder of a license |
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129 | 129 | | under this chapter includes a controlling person of an applicant or |
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130 | 130 | | holder. |
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131 | 131 | | Sec. 1306.104. LICENSE HOLDER DATABASE. The commission |
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132 | 132 | | shall make available on its Internet website a publicly accessible |
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133 | 133 | | list of licensed roofing contractors. The list must contain the |
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134 | 134 | | following for each licensed roofing contractor: |
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135 | 135 | | (1) contact information for the contractor; |
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136 | 136 | | (2) a statement indicating whether the contractor is |
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137 | 137 | | licensed in good standing; |
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138 | 138 | | (3) a summary of any disciplinary action taken by the |
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139 | 139 | | commission against the contractor; and |
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140 | 140 | | (4) any other information that the commission |
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141 | 141 | | determines is relevant. |
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142 | 142 | | SUBCHAPTER D. LICENSE REQUIREMENTS |
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143 | 143 | | Sec. 1306.151. LICENSE REQUIRED. (a) A person may not act |
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144 | 144 | | as or offer to act as a roofing contractor unless the person holds a |
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145 | 145 | | license issued under this chapter. |
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146 | 146 | | (b) A license: |
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147 | 147 | | (1) is valid only with respect to the person or company |
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148 | 148 | | named on the license; and |
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149 | 149 | | (2) authorizes the license holder to operate one |
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150 | 150 | | roofing contractor business for each license. |
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151 | 151 | | (c) A license issued under this chapter is not transferable |
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152 | 152 | | or assignable. |
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153 | 153 | | Sec. 1306.152. APPLICATION; APPLICATION FEE. (a) An |
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154 | 154 | | applicant for a license must: |
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155 | 155 | | (1) apply to the department on a form prescribed by the |
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156 | 156 | | executive director and under rules adopted by the commission; |
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157 | 157 | | (2) submit with the application a nonrefundable |
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158 | 158 | | application fee in an amount set by the commission; and |
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159 | 159 | | (3) pass an examination adopted by the department. |
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160 | 160 | | (b) The commission by rule shall specify the information |
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161 | 161 | | that must be included on an application submitted to the |
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162 | 162 | | department. The rules must require each application to include: |
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163 | 163 | | (1) the name and address of, and an authorization for |
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164 | 164 | | the department to obtain criminal history record information for, |
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165 | 165 | | each controlling person; and |
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166 | 166 | | (2) evidence that the applicant satisfies the minimum |
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167 | 167 | | financial responsibility requirements established by commission |
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168 | 168 | | rule. |
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169 | 169 | | Sec. 1306.153. TERM OF LICENSE. A license issued under this |
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170 | 170 | | chapter is valid for one year. |
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171 | 171 | | Sec. 1306.154. EXAMINATION. (a) An examination required |
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172 | 172 | | by this chapter shall be conducted at locations throughout the |
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173 | 173 | | state. |
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174 | 174 | | (b) The department shall accept, develop, or contract for |
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175 | 175 | | the examination required by this chapter, including the |
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176 | 176 | | administration of the examination. Each examination must test the |
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177 | 177 | | knowledge of the applicant about basic contracting principles and |
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178 | 178 | | roofing services. |
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179 | 179 | | (c) The executive director shall determine uniform |
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180 | 180 | | standards for acceptable performance on an examination. |
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181 | 181 | | SUBCHAPTER E. PRACTICE BY LICENSE HOLDER |
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182 | 182 | | Sec. 1306.201. DISPLAY OF LICENSE INFORMATION. (a) A |
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183 | 183 | | roofing contractor shall display the contractor's business name and |
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184 | 184 | | the number of the license issued by the executive director on each |
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185 | 185 | | vehicle owned by the contractor and used in providing roofing |
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186 | 186 | | services. |
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187 | 187 | | (b) The information required to be displayed must be: |
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188 | 188 | | (1) printed in letters and numbers that are at least |
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189 | 189 | | two inches high and in a color that contrasts with the color of the |
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190 | 190 | | background surface; and |
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191 | 191 | | (2) affixed in conspicuous places on both sides of the |
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192 | 192 | | vehicle. |
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193 | 193 | | Sec. 1306.202. COMPLIANCE WITH LOCAL REQUIREMENTS. A |
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194 | 194 | | roofing contractor shall comply with local ordinances and |
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195 | 195 | | regulations relating to standards and permits for roofing services. |
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196 | 196 | | Sec. 1306.203. OBTAINING A LICENSE UNDER ANOTHER NAME |
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197 | 197 | | PROHIBITED. (a) A person may not attempt to obtain a license under |
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198 | 198 | | any other name during any period during which the person's roofing |
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199 | 199 | | contractor license is suspended or revoked. |
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200 | 200 | | (b) Subsection (a) applies to any controlling person of a |
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201 | 201 | | business entity or other group whose license is suspended or |
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202 | 202 | | revoked. |
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203 | 203 | | Sec. 1306.204. NOTIFICATION OF CHANGE OF INFORMATION. A |
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204 | 204 | | roofing contractor shall timely notify the department of any change |
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205 | 205 | | to the name, address, business entity, liability coverage, or legal |
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206 | 206 | | service agent of the contractor. |
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207 | 207 | | Sec. 1306.205. PROHIBITED ACTS. A roofing contractor |
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208 | 208 | | providing roofing services to be paid by a consumer from the |
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209 | 209 | | proceeds of the consumer's property or casualty insurance policy |
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210 | 210 | | may not pay or rebate or promise to pay or rebate all or part of any |
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211 | 211 | | applicable insurance deductible. |
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212 | 212 | | Sec. 1306.206. CONFLICTS OF INTEREST PROHIBITED. (a) In |
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213 | 213 | | this section, "public insurance adjuster" has the meaning assigned |
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214 | 214 | | by Section 4102.001, Insurance Code. |
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215 | 215 | | (b) A roofing contractor may not act as a public insurance |
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216 | 216 | | adjuster for any property for which the contractor is providing |
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217 | 217 | | roofing services, regardless of whether the contractor holds a |
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218 | 218 | | license under Chapter 4102, Insurance Code. |
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219 | 219 | | (c) A roofing contractor is subject to the prohibitions |
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220 | 220 | | under Section 4102.158, Insurance Code. |
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221 | 221 | | SUBCHAPTER F. ENFORCEMENT |
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222 | 222 | | Sec. 1306.251. INVESTIGATION OF COMPLAINTS. (a) The |
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223 | 223 | | department shall investigate any complaint alleging that a |
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224 | 224 | | violation of this chapter or a rule adopted under this chapter has |
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225 | 225 | | occurred. |
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226 | 226 | | (b) A complaint must be filed in a manner prescribed by the |
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227 | 227 | | department. |
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228 | 228 | | Sec. 1306.252. ADMINISTRATIVE PENALTY. The commission or |
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229 | 229 | | executive director may impose an administrative penalty on a person |
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230 | 230 | | under Subchapter F, Chapter 51, regardless of whether the person |
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231 | 231 | | holds a license under this chapter, if the person violates: |
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232 | 232 | | (1) this chapter or a rule adopted under this chapter; |
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233 | 233 | | or |
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234 | 234 | | (2) a rule or order of the commission or executive |
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235 | 235 | | director. |
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236 | 236 | | Sec. 1306.253. SANCTIONS. The commission may impose |
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237 | 237 | | sanctions as provided by Section 51.353. |
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238 | 238 | | Sec. 1306.254. CRIMINAL OFFENSE. (a) A person commits an |
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239 | 239 | | offense if the person: |
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240 | 240 | | (1) violates the licensing requirements of this |
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241 | 241 | | chapter; or |
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242 | 242 | | (2) performs roofing services without a license |
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243 | 243 | | required by this chapter. |
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244 | 244 | | (b) An offense under this section is a Class C misdemeanor. |
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245 | 245 | | SECTION 2. Not later than February 1, 2026, the Texas |
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246 | 246 | | Commission of Licensing and Regulation, the Texas Department of |
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247 | 247 | | Licensing and Regulation, and the executive director of the Texas |
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248 | 248 | | Department of Licensing and Regulation, as appropriate, shall adopt |
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249 | 249 | | rules and forms necessary to implement Chapter 1306, Occupations |
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250 | 250 | | Code, as added by this Act. |
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251 | 251 | | SECTION 3. The Texas Department of Licensing and Regulation |
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252 | 252 | | shall issue a roofing contractor license under Chapter 1306, |
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253 | 253 | | Occupations Code, as added by this Act, to an applicant who: |
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254 | 254 | | (1) applies for a license under this section not later |
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255 | 255 | | than June 1, 2026; |
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256 | 256 | | (2) submits to the department the information required |
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257 | 257 | | by rule; |
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258 | 258 | | (3) has at least 10 years of experience performing |
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259 | 259 | | roofing services as defined by Section 1306.002, Occupations Code, |
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260 | 260 | | as added by this Act; and |
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261 | 261 | | (4) pays the application fee established by the Texas |
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262 | 262 | | Commission of Licensing and Regulation. |
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263 | 263 | | SECTION 4. (a) Except as provided by Subsection (b) of this |
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264 | 264 | | section, this Act takes effect September 1, 2025. |
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265 | 265 | | (b) Section 1306.151, Occupations Code, and Subchapters E |
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266 | 266 | | and F, Chapter 1306, Occupations Code, as added by this Act, take |
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267 | 267 | | effect September 1, 2026. |
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