SRC-TNM S.B. 259 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 259
By: Moncrief
State Affairs
2-21-97
As Filed


DIGEST 

Currently, Texas has no system of regulating the roofing industry.  In May
1995, hail storms inflicted damage to an estimated 100,000 roofs in north
Texas.  Many consumers in need of new roofs or roofing repair employed
roofers who could not be held responsible for ineffective work.  S.B. 259
seeks to regulate roofing contractors by allowing only licensed roofing
contracting companies to perform residential or commercial roofing
contracting in Texas. 

PURPOSE

As proposed, S.B. 259 outlines provisions and provides penalties regarding
regulation of roofing contractors. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of licensing and
regulation in SECTIONS 3(a), 6(g), and 15(b) and to a municipality in
SECTION 17, Roofing Contractors Licensing Law, of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. SHORT TITLE: ROOFING CONTRACTORS LICENSING LAW.

SECTION 2. DEFINITIONS. Defines "advisory board," "commercial roofing,"
"commission," "commissioner," "mechanical integrity," "person,"
"qualifying party," "residential roofing," "roofing contracting," "roofing
contracting company," and "company." 

SECTION 3. POWERS AND DUTIES OF COMMISSIONER.  Sets forth the powers and
duties allocated to the commissioner of licensing and regulation
(commissioner) and the Texas Commission of Licensing and Regulation
(commission). 

SECTION 4. ADVISORY BOARD. Sets forth requirements for the creation of the
Roofing Contractors Advisory Board (advisory board). 

SECTION 5. LICENSE REQUIRED.  Prohibits a person or company from
performing roofing contracting without a license unless the person is
exempt under Section 14 of this Act.  Requires a roofing contracting
company that is not exempt to employ a license holder whose license is
assigned to that company.  Authorizes a representative of the commission
or a municipal official to issue a citation to a person who performs
roofing contracting without a license.  Provides that to the extent
authorized by Chapter 29, Government Code, the municipal court has
concurrent jurisdiction with a justice court of a precinct in which the
municipality is located, in a case arising from a citation issued under
this subsection.  Provides that a license is valid throughout this state
and the holder and persons under the holder's supervision are not required
to hold a municipal license to practice roofing contracting in any
municipality within this state. 

SECTION 6. ROOFING CONTRACTOR LICENSES.  Requires the roofing contracting
company to be the license holder and to comply with all the requirements
of this Act, with a principal of the company being the qualifying party
meeting all the requirements of this Act.  Sets forth the classes of
roofing contractor licenses and the services the licensee is entitled to
perform.  Requires the  commissioner to prescribe separate examinations
for each class of licenses and prescribe separate examinations for
commercial and residential services for Class I licenses.  Requires the
qualifying party applying for a roofing contractor license to be at least
18 years old and present to the commissioner satisfactory evidence of at
least 36 months of practical experience with the tools of the trade in the
preceding five years.  Sets forth requirements for the creation of an
application and sets forth the information to be accompanied by an
application.  Sets forth requirements for a company to which the
commissioner is required to issue a roofing contractor license.  Provides
that an applicant who fails an examination is eligible for reexamination.
Provides that a license issued is valid for a one-year period from the
date of issuance.  Requires the commissioner to adopt rules relating to
the use, display, and advertisement of a licensee's license with the
advice of the advisory board. 

SECTION 7. NOTICE OF EXAMINATION RESULTS. Sets forth the requirements for
notice of examination results.   

SECTION 8. INSURANCE REQUIREMENT. Sets forth the monetary amounts in which
a licensed contractor is required to maintain general liability insurance
coverage.  Requires insurance to be obtained from an admitted company or
an eligible surplus lines insurer, as defined in Article 1.14-2, Insurance
Code.  Sets forth requirements for the certificate of insurance a license
applicant or holder is required to furnish to the commission.  Requires a
license holder whose proof of insurance expires to be notified by the
commission that the holder has an insurance violation.  Requires failure
to provide the required proof to be grounds for revocation of the license
in accordance with Article 9100, V.T.C.S.  Sets forth monetary amounts in
which a surety bond is required to be posted with the commission by each
licensee. 

SECTION 9. CONTINUING EDUCATION PROGRAMS. Sets forth requirements for the
establishment of continuing education programs.  Requires each licensee to
be required to complete eight hours of continuing education per license
year. 

SECTION 10. LICENSE BY RECIPROCITY. Authorizes the commissioner to waive
any license requirement for an applicant or qualifying party of an
applicant with a valid license from another state with which this state
has a reciprocity agreement. 

SECTION 11. TEMPORARY LICENSE. Sets forth requirements for the issuance of
a temporary license.  

SECTION 12. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.  Sets forth
instances in which a license may be denied suspended, or revoked.
Provides that proceedings for the denial, suspension, or revocation of a
license and appeals from those proceedings are governed by Chapter 2001,
Government Code.  Provides that the imposition of administrative penalties
is governed by Article 9100, V.T.C.S.  

SECTION 13. CONSUMER COMPLAINT INVESTIGATION.  Requires the commissioner
to prepare information of consumer interest describing the functions
performed by the commissioner and the rights of consumers.  Requires the
information to describe the procedure by which a consumer complaint is
filed with and resolved by the commissioner.  Requires the commissioner to
make the information available to the general public.  Requires the
commissioner to investigate consumer complaints filed with the
commissioner.  Authorizes the commissioner to take appropriate action
under Section 12 of this Act if the commissioner determines after
investigation that a licensee has violated this Act or rule adopted under
this Act.   

SECTION 14. EXEMPTIONS. Sets forth the entities which are exempt from this
Act. 

SECTION 15. ENFORCEMENT OF CONTRACTS. Outlines provisions and requirements
for the enforcement of contracts for the performance of roofing
contracting.  Requires the commissioner to adopt rules relating to the
manner in which proof may be presented under this section. 

SECTION 16. OFFENSE; PENALTY. Provides that a person commits a Class B
misdemeanor if the person knowingly or intentionally engages in roofing
contracting without a license, except as  provided in Section 17 of this
Act.   

SECTION 17. MUNICIPAL REGULATION. Outlines provisions for the regulation
by municipalities.   

SECTION 18. EXEMPTION FROM EXAMINATION FOR CERTIFIED CONTRACTORS. Sets
forth instances in which a certified roofing contractor is exempt from
examination requirements. Sets forth license classifications required for
specific contractors.  Provides that a roofing contractor who is issued a
license under this section is subject to other provisions of this Act,
including provisions for the renewal of the roofing contractor license. 

SECTION 19. TERMS OF INITIAL BOARD MEMBERS.  Sets forth the terms of
initial advisory board members.     

SECTION 20. (a) Effective date: September 1, 1997, 

(b) Effective date for Sections 5 and 6: September 1, 1998.

SECTION 21. Emergency clause.