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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions under disaster remediation contracts; |
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creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 58.001(1) and (2), Business & Commerce |
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Code, are amended to read as follows: |
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(1) "Disaster remediation" means the removal, |
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cleaning, sanitizing, demolition, reconstruction, or other |
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treatment of existing improvements to real property performed |
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because of damage or destruction to that property caused by a |
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natural disaster. |
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(2) "Disaster remediation contractor" means a person |
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who engages in disaster remediation for compensation, other than a |
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person who has a permit, license, registration, or other |
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authorization from the Texas Commission on Environmental Quality |
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for the collection, transportation, treatment, storage, |
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processing, or disposal of solid waste, but does not include an |
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entity approved by the Internal Revenue Service as tax exempt under |
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Section 501(c)(3), Internal Revenue Code of 1986. |
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SECTION 2. Section 58.003(b), Business & Commerce Code, is |
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amended to read as follows: |
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(b) A disaster remediation contractor: |
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(1) may not require a person to make a full or partial |
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payment under a contract before the contractor begins work, unless |
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the amount of such payment is held in escrow; |
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(2) may not require that the amount of any partial |
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payment under the contract exceed an amount reasonably |
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proportionate to the work performed, including any materials |
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delivered; and |
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(3) shall include in any contract for disaster |
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remediation services the following statement in conspicuous, |
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boldfaced type of at least 10 points in size: "This contract is |
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subject to Chapter 58, Business & Commerce Code. A contractor may |
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not require a full or partial payment before the contractor begins |
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work and may not require partial payments in an amount that exceeds |
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an amount reasonably proportionate to the work performed, including |
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any materials delivered." |
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SECTION 3. Section 58.004, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 58.004. PENALTIES [DECEPTIVE TRADE PRACTICE]. (a) A |
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violation of this chapter by a disaster remediation contractor is a |
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false, misleading, or deceptive act or practice as defined by |
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Section 17.46(b), and any remedy under Subchapter E, Chapter 17, is |
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available for a violation of this chapter. |
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(b) A disaster remediation contractor who violates Section |
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58.003(b)(1) or (2) commits an offense. An offense under this |
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section is: |
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(1) a Class B misdemeanor if the offense was committed |
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without the intent to defraud the person contracting for disaster |
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remediation services; or |
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(2) a felony of the third degree if the offense was |
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committed with the intent to defraud the person contracting for |
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disaster remediation services. |
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(c) It is a defense to prosecution under this section if the |
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disaster remediation contractor refunds any payment made in |
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violation of Section 58.003(b)(1) or (2) not later than the 15th day |
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following the receipt of a written demand alleging a violation of |
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Section 58.003(b)(1) or (2) sent by certified mail to the disaster |
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remediation contractor's last known business address or the address |
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of the disaster remediation contractor's registered agent. |
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SECTION 4. The changes in law made by this Act apply only to |
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a disaster remediation contract entered into on or after the |
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effective date of this Act. A disaster remediation contract |
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entered into before the effective date of this Act is governed by |
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the law in effect when the contract was entered into, and the former |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2021. |