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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of reroofing contractors; providing |
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administrative and civil penalties; authorizing fees; requiring an |
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occupational registration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 8, Occupations Code, is amended by adding |
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Chapter 1306 to read as follows: |
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CHAPTER 1306. REROOFING CONTRACTORS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1306.001. SHORT TITLE. This chapter may be cited as |
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the Reroofing Contractor Registration Act. |
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Sec. 1306.002. DEFINITIONS. In this chapter: |
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(1) "Commission" means the Texas Commission of |
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Licensing and Regulation. |
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(2) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(3) "Executive director" means the executive director |
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of the department. |
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(4) "Person" means an individual or business entity. |
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(5) "Registered reroofing contractor" means a |
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reroofing contractor who is registered under this chapter and who |
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holds a statement of registration number issued under this chapter. |
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(6) "Reroofing contractor" means a person who: |
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(A) engages in repairing, recovering, or |
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replacing existing roof coverings on residential or commercial |
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structures; or |
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(B) solicits, advertises, or contracts to |
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repair, recover, or replace existing roof coverings on residential |
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or commercial structures. |
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(7) "Reroofing project" means a project to repair, |
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recover, or replace an existing roof covering on a residential or |
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commercial structure. |
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Sec. 1306.003. EXEMPTIONS. (a) This chapter does not apply |
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to: |
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(1) a laborer or other individual who repairs, |
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recovers, or replaces existing roof coverings on residential or |
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commercial structures as an employee of or under contract with a |
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registered reroofing contractor; |
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(2) a sales manager, project manager, administrative |
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assistant, or any other individual employed or otherwise engaged by |
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a registered reroofing contractor in the ordinary course of the |
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contractor's business; |
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(3) an owner of residential property or property |
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primarily used for agricultural purposes, or an employee of the |
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owner, who performs a reroofing project on the owner's property; |
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(4) an authorized employee or representative of the |
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United States government, this state, or a county, municipality, or |
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other political subdivision of this state acting in an official |
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capacity; |
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(5) a person who constructs new residential or |
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commercial structures; or |
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(6) a person who is licensed as a retailer of |
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manufactured homes under Chapter 1201 and is performing a reroofing |
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project on a manufactured home as defined by Section 1201.003. |
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(b) An individual who is exempt under Subsection (a)(1) or |
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(2) must operate in the name of the registered reroofing |
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contractor, and the contractor is responsible for the conduct of |
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the individual while the individual performs or otherwise engages |
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in the reroofing project. |
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Sec. 1306.004. APPLICATION OF CHAPTER. This chapter does |
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not authorize a registered reroofing contractor to engage in: |
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(1) the practice of engineering as defined by Section |
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1001.003; or |
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(2) the practice of architecture as defined by Section |
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1051.001. |
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SUBCHAPTER B. POWERS AND DUTIES |
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Sec. 1306.051. GENERAL POWERS AND DUTIES. The department |
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shall administer and enforce this chapter. |
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Sec. 1306.052. RULES. The commission by rule shall: |
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(1) prescribe the requirements for the issuance and |
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renewal of a registration under this chapter; and |
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(2) provide for the issuance of a temporary emergency |
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registration at a reduced fee for reroofing projects on property |
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located in an area for which the governor declares a state of |
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disaster under Chapter 418, Government Code. |
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Sec. 1306.053. FEES. (a) Except as provided by Subsection |
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(b), the commission shall establish and collect reasonable and |
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necessary fees in amounts not to exceed a total amount sufficient to |
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cover the state's costs of administering this chapter. |
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(b) The fees adopted under this chapter must include fees |
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for: |
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(1) an initial application for registration, in an |
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amount not to exceed $250; and |
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(2) the renewal of a registration, in an amount not to |
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exceed $100. |
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Sec. 1306.054. REGISTRATION DATABASE. The department shall |
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make available on its Internet website a publicly accessible list |
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of all registered reroofing contractors who are in good standing. |
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The list must be searchable by name and location. The list must |
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contain the following for each registered reroofing contractor: |
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(1) the name, mailing address, and telephone number of |
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the reroofing contractor; |
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(2) a summary of any disciplinary action taken by the |
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department against the reroofing contractor; and |
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(3) any other information required by the department. |
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Sec. 1306.055. REGISTRATION VERIFICATION. (a) A county or |
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municipal building official may not grant or approve a building or |
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construction permit for a reroofing project unless the applicant |
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for the permit is: |
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(1) a registered reroofing contractor; or |
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(2) exempt from registration under this chapter. |
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(b) On request of a county or municipal building official, |
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the department shall verify the registration of an applicant |
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described by Subsection (a)(1). The department shall establish a |
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verification system to ensure a timely response to a request for |
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verification of a registration. |
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SUBCHAPTER C. REGISTRATION REQUIREMENTS |
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Sec. 1306.101. REGISTRATION REQUIRED. (a) Unless the |
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person holds a registration issued under this chapter, a person may |
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not: |
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(1) perform or otherwise engage in a reroofing |
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project; or |
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(2) solicit, advertise, or contract to perform or |
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engage in a reroofing project. |
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(b) A registration under this chapter shall be issued in the |
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form of a statement of registration number. |
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(c) A registration issued under this chapter: |
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(1) is valid only with respect to the person named on |
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the registration; and |
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(2) authorizes the registration holder to operate as a |
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reroofing contractor. |
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(d) A person may obtain a registration for more than one |
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business entity. A registration is not transferable. |
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Sec. 1306.102. APPLICATION FOR REGISTRATION. (a) An |
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applicant for registration shall submit an application to the |
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department on a form prescribed by the executive director. |
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(b) The application must be accompanied by: |
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(1) if the applicant is an individual, proof of the |
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applicant's identity; |
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(2) if the applicant is a business entity, proof of the |
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applicant's existence and confirmation of authority to conduct |
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business in this state under a certificate of status issued by the |
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secretary of state that is in good standing; |
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(3) proof of the mailing address and telephone number |
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of the applicant's residence or business location; and |
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(4) the application fee. |
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Sec. 1306.103. ISSUANCE OF REGISTRATION; TERM. (a) The |
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department shall issue a registration to an applicant who complies |
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with the registration requirements of this chapter not later than |
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the 10th day after the date the department receives the |
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application. |
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(b) A registration is valid for two years from the date of |
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issuance and may be renewed before expiration in the manner |
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provided by Section 1306.104. |
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Sec. 1306.104. RENEWAL OF REGISTRATION. (a) To renew a |
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registration, a reroofing contractor shall submit an application |
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for renewal to the department on a form prescribed by the executive |
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director. |
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(b) The application must be accompanied by: |
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(1) documentation of any changes in the reroofing |
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contractor's information submitted to the department under Section |
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1306.102(b); and |
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(2) the renewal fee. |
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SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER |
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Sec. 1306.151. DISCLOSURE OF REGISTRATION NUMBER. (a) A |
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registered reroofing contractor shall include the contractor's |
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registration number in each: |
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(1) contract for a reroofing project in the manner |
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provided by Section 1306.153; and |
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(2) advertisement for a reroofing service by the |
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contractor, including on each business card, flyer, or door card |
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and in each television, radio, social media, or newspaper |
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advertisement. |
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(b) Other than the inclusion of a registration number in the |
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manner prescribed by this section, a reroofing contractor may not |
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make any representation or statement regarding the effect of |
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holding a registration issued under this chapter or the fact that |
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the contractor holds a registration issued under this chapter. |
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Sec. 1306.152. CERTAIN PRACTICES RELATING TO INSURANCE |
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DEDUCTIBLES PROHIBITED; REVOCATION OF REGISTRATION. (a) A |
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registered reroofing contractor may not advertise or promise to |
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pay, rebate, waive, absorb, or otherwise not collect all or part of |
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an insurance deductible in connection with a reroofing project in |
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violation of Section 27.02, Business & Commerce Code. |
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(b) A reroofing contractor who violates Subsection (a) is |
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subject to revocation of the contractor's registration, and the |
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contractor is ineligible for registration under this chapter before |
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the first anniversary of the date the registration is revoked. |
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Sec. 1306.153. CONTRACT FOR REROOFING PROJECT. (a) Before |
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engaging in a reroofing project, a registered reroofing contractor |
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must provide to the property owner a written contract that is signed |
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by the reroofing contractor and the property owner. |
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(b) The written contract must include: |
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(1) the following statement printed in at least |
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12-point bold type: "The work to be performed under this contract |
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must commence not later than the 30th day after the date the |
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reroofing contractor collects an initial payment, unless a longer |
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period is agreed to in writing and signed by both parties to this |
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contract."; |
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(2) the reroofing contractor's contact information, |
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including physical address, e-mail address, and telephone number; |
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(3) the reroofing contractor's policy regarding |
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cancellation of the contract, which must be consistent with state |
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law; |
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(4) the reroofing contractor's registration number in |
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at least 12-point bold type in the following form: "Texas |
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Registered Reroofing Contractor Number (registration number)"; and |
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(5) the department's contact information for |
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complaints directed to the department. |
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SUBCHAPTER E. ENFORCEMENT |
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Sec. 1306.201. INVESTIGATION OF COMPLAINTS. (a) The |
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department shall investigate any complaint alleging a violation of |
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this chapter or a rule adopted under this chapter. |
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(b) A complaint must be filed in a manner prescribed by the |
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department. |
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Sec. 1306.202. ADMINISTRATIVE PENALTY. The commission or |
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executive director may impose an administrative penalty on a person |
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under Subchapter F, Chapter 51, regardless of whether the person is |
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registered under this chapter, if the person violates: |
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(1) this chapter or a rule adopted under this chapter; |
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or |
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(2) an order of the commission or executive director. |
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Sec. 1306.203. ADMINISTRATIVE SANCTIONS. The commission |
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may impose sanctions as provided by Section 51.353. |
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Sec. 1306.204. CEASE AND DESIST ORDER. The executive |
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director may issue a cease and desist order under Section 51.3513 to |
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prohibit any person from performing or engaging in a reroofing |
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project if the person is not in compliance with this chapter or a |
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rule adopted under this chapter. |
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Sec. 1306.205. CIVIL PENALTY. The attorney general or |
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executive director may institute an action for a civil penalty |
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under this chapter as provided by Section 51.352. The amount of a |
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civil penalty assessed under this section may not exceed $500 for |
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each violation. |
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SECTION 2. Not later than April 1, 2022, the Texas |
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Commission of Licensing and Regulation shall adopt the rules, |
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procedures, and fees necessary to administer Chapter 1306, |
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Occupations Code, as added by this Act. |
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SECTION 3. The Texas Department of Licensing and Regulation |
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is not required to begin issuing registrations under Chapter 1306, |
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Occupations Code, as added by this Act, before June 1, 2022. |
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SECTION 4. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2021. |
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(b) Section 1306.101, Occupations Code, and Subchapter E, |
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Chapter 1306, Occupations Code, as added by this Act, take effect |
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August 1, 2022. |