By: Moncrief S.B. No. 259
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of roofing contractors; providing
1-2 penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. SHORT TITLE. This Act may be cited as the
1-5 "Roofing Contractors Licensing Law."
1-6 SECTION 2. DEFINITIONS. In this Act:
1-7 (1) "Advisory board" means the Roofing Contractors
1-8 Advisory Board.
1-9 (2) "Commercial roofing" means the exterior roof,
1-10 cover, or skin of the roof assembly consisting of membrane, metal
1-11 panels, sheets, shingles, tiles, slate, and other materials on any
1-12 building or structure other than buildings or structures listed in
1-13 Subdivision (8) of this section.
1-14 (3) "Commission" means the Texas Commission of
1-15 Licensing and Regulation.
1-16 (4) "Commissioner" means the commissioner of licensing
1-17 and regulation.
1-18 (5) "Mechanical integrity" means physical installation
1-19 of products, systems, or equipment in accordance with their
1-20 intended purpose and according to industry standards at least as
1-21 strict as the roofing manufacturers' specifications.
1-22 (6) "Person" means an individual, corporation,
1-23 organization, business trust, estate, trust, partnership,
2-1 association, and any other legal entity.
2-2 (7) "Qualifying party" means a person who possesses
2-3 all the necessary qualifications and who is a principal of a
2-4 company licensed under this Act.
2-5 (8) "Residential roofing" means any material applied
2-6 to the exterior roof framing (wood or steel) on single-family
2-7 homes, duplexes, or quadplexes.
2-8 (9) "Roofing contracting" means performing or offering
2-9 to perform the design, installation, construction, maintenance,
2-10 service, repair, alteration, or modification of a product or of
2-11 equipment in roofs.
2-12 (10) "Roofing contracting company" or "company" means
2-13 any person, corporation, partnership, association, or other entity
2-14 that performs roofing contracting.
2-15 SECTION 3. POWERS AND DUTIES OF COMMISSIONER. (a) The
2-16 commissioner shall adopt rules for the practice of roofing
2-17 contracting consistent with this Act. The standards prescribed by
2-18 rule must be substantially the same as the standards set forth in
2-19 the roofing manufacturers' standard requirements. The commissioner
2-20 shall enforce this Act and may adopt rules relating to enforcement
2-21 requirements.
2-22 (b) The commissioner may issue an emergency order as
2-23 necessary to enforce this Act if the commissioner determines that
2-24 an emergency exists or formerly existed requiring immediate
2-25 temporary action to protect the public health and safety or to
3-1 protect damaged property. The order may be issued without notice
3-2 and hearing or with such notice and hearing as the commissioner
3-3 considers practicable under the circumstances. If an emergency
3-4 order is issued under this subsection without a hearing, the
3-5 commissioner shall set the time and place for a hearing to affirm,
3-6 modify, or set aside the emergency order. The commission may issue
3-7 cease and desist orders.
3-8 (c) The commissioner shall prescribe application forms for
3-9 original and renewal licenses and the design of the licenses.
3-10 (d) The commissioner shall prescribe the method and content
3-11 of examinations administered under this Act and shall set
3-12 compliance requirements for the examinations. The examination
3-13 shall be offered at least quarterly at various locations around the
3-14 state as determined by the commission.
3-15 (e) The commissioner shall enforce insurance requirements
3-16 for persons licensed under this Act.
3-17 (f) The commission may employ the personnel necessary to
3-18 implement this Act. The commission shall contract with at least
3-19 two full-time roofing contractors to serve as test examiners.
3-20 (g) The commissioner may authorize necessary disbursements
3-21 to implement this Act, including office expenses, costs of
3-22 equipment, and other necessary facilities.
3-23 (h) The commission shall publish annually a directory of the
3-24 persons licensed under this Act. The commission may sell the
3-25 directory on payment of a reasonable fee set by the commission.
4-1 The fees collected under this subsection shall be appropriated to
4-2 the commission for use in the administration of this Act.
4-3 (i) The commission may contract with another state agency or
4-4 with a political subdivision of the state for the enforcement of
4-5 this Act and the rules adopted by the commissioner under this Act.
4-6 (j) The commissioner shall adopt rules that require a
4-7 license holder to obtain a permit from an approved landfill to
4-8 dispose of roofing materials. Rules adopted under this subsection
4-9 shall include a requirement that a license holder maintain a record
4-10 for each disposal of roofing materials by the license holder.
4-11 SECTION 4. ADVISORY BOARD. (a) The Roofing Contractors
4-12 Advisory Board is created to advise the commissioner in adopting
4-13 rules, method, and content of examination and enforcing and
4-14 administering this Act and to advise the commission in setting
4-15 fees.
4-16 (b) The advisory board is composed of six members appointed
4-17 by the commissioner who are experienced in the design,
4-18 installation, construction, maintenance, service, repair,
4-19 alteration, or modification of roofing systems. Members of the
4-20 advisory board shall hold office for staggered terms of six years,
4-21 with two terms expiring on February 1 of each odd-numbered year.
4-22 (c) The commissioner shall appoint the advisory board
4-23 members as follows:
4-24 (1) three members must be full-time licensed roofing
4-25 contractors as follows:
5-1 (A) one member must hold a commercial license;
5-2 (B) one member must hold a residential license;
5-3 and
5-4 (C) one member must hold a commercial and a
5-5 residential license; and
5-6 (2) three shall be public members.
5-7 (d) For the members appointed under Subsection (c)(1) of
5-8 this section, at least one member must practice in a municipality
5-9 with a population of 250,000 or more and at least one member must
5-10 practice in a municipality with a population of less than 250,000.
5-11 For the purposes of this subsection, "population" means the
5-12 population according to the most recent federal decennial census.
5-13 (e) The commissioner shall designate one member of the
5-14 advisory board to serve as chairman. The commissioner or the
5-15 commissioner's designee shall serve as an ex officio, nonvoting
5-16 member of the advisory board. On the resignation, death,
5-17 suspension, or incapacity of any member, the commissioner shall
5-18 fill the vacancy for the remainder of the unexpired term with an
5-19 individual who represents the same category with which the
5-20 predecessor was identified.
5-21 (f) The advisory board shall meet at least every six months
5-22 and may meet at other times at the call of the chairman. The
5-23 advisory board shall meet at a place designated by the board within
5-24 the State of Texas. A decision of the advisory board is not
5-25 effective unless it receives the affirmative vote of at least a
6-1 majority of the members present.
6-2 (g) The advisory board members serve without compensation.
6-3 SECTION 5. LICENSE REQUIRED. (a) Unless the person is
6-4 exempted under Section 14 of this Act, a person or company may not
6-5 perform roofing contracting without a license under this Act.
6-6 (b) A roofing contracting company that is not exempt under
6-7 this Act must employ a license holder, or license holders, whose
6-8 license is assigned to that company.
6-9 (c) A representative of the commission or a municipal
6-10 official may issue a citation to a person who performs roofing
6-11 contracting without a license issued under this Act.
6-12 (d) A license issued under this Act is valid throughout the
6-13 state, and the holder and persons under the holder's supervision
6-14 are not required to hold a municipal license to practice roofing
6-15 contracting in any municipality within this state.
6-16 SECTION 6. ROOFING CONTRACTOR LICENSES. (a) The roofing
6-17 contracting company shall be the license holder and shall comply
6-18 with all the requirements of this Act, with a principal of the
6-19 company being the qualifying party meeting all the requirements of
6-20 this Act. Roofing contractor licenses are of the following three
6-21 classes and entitle the licensee to perform the following services,
6-22 respectively:
6-23 (1) a Class I license entitles the licensee to perform
6-24 commercial and residential roofing services;
6-25 (2) a Class II license entitles the licensee to
7-1 perform only commercial roofing services; and
7-2 (3) a Class III license entitles the licensee to
7-3 perform only residential roofing services.
7-4 (b) The commissioner shall prescribe separate examinations
7-5 for each class of license. For Class I licenses, the commissioner
7-6 shall prescribe separate examinations for commercial and
7-7 residential services.
7-8 (c) The qualifying party that applies for a roofing
7-9 contractor license must be at least 18 years old and must present
7-10 to the commissioner satisfactory evidence of at least 36 months of
7-11 practical experience in the preceding five years.
7-12 (d) The application must be made on a form prescribed by the
7-13 commissioner and must specify the class of license the applicant
7-14 seeks. The application must be sworn to and verified and must be
7-15 accompanied by:
7-16 (1) evidence of the insurance coverage required under
7-17 this Act;
7-18 (2) a statement of the applicant's practical
7-19 experience; and
7-20 (3) the examination fee.
7-21 (e) The commissioner shall issue a roofing contractor
7-22 license to a company which has a qualifying party who possesses the
7-23 required qualifications, passes the appropriate examinations, and
7-24 pays the examination fee and the original license fee required by
7-25 this Act. An applicant who fails an examination is eligible for
8-1 reexamination.
8-2 (f) A license issued under this Act is valid for a one-year
8-3 period from the date of issuance.
8-4 (g) With the advice of the advisory board, the commissioner
8-5 shall adopt rules relating to the use, display, and advertisement
8-6 of a licensee's license.
8-7 SECTION 7. NOTICE OF EXAMINATION RESULTS. (a) Not later
8-8 than the 45th day after the date on which an examination is
8-9 administered under this Act, the commissioner shall notify each
8-10 examinee of the results of the examination. However, if an
8-11 examination is graded or reviewed by a national testing service,
8-12 the commissioner shall notify examinees of the results of the
8-13 examination not later than the 14th day after the date on which the
8-14 commissioner receives the results from the testing service.
8-15 (b) If requested in writing by a person who fails the
8-16 examination, the commissioner shall furnish the person with the
8-17 results of the person's performance on the examination.
8-18 SECTION 8. INSURANCE REQUIREMENT. (a) A licensed
8-19 contractor shall maintain general liability insurance coverage in
8-20 the following amounts:
8-21 (1) for a Class I license, $250,000 per occurrence,
8-22 with a minimum total aggregate of $500,000;
8-23 (2) for a Class II license, $250,000 per occurrence,
8-24 with a minimum total aggregate of $500,000; and
8-25 (3) for a Class III license, $100,000 minimum total
9-1 aggregate.
9-2 (b) Insurance must be obtained from an admitted company or
9-3 an eligible surplus lines insurer, as defined in Article 1.14-2,
9-4 Insurance Code.
9-5 (c) A license applicant or holder shall furnish to the
9-6 commission a certificate of insurance. The license holder's name,
9-7 business name, and address must be shown as it appears on the
9-8 license. The certificate form to be submitted shall be the form
9-9 furnished by the commission. Each certificate of insurance shall
9-10 reflect all assumed names used by the license holder and registered
9-11 with this agency. Neither binders nor interim certificates of less
9-12 than 60 days will be accepted.
9-13 (d) The certificate of insurance shall state that the
9-14 insurance carrier shall notify the commission not later than the
9-15 30th day before the cancellation or nonrenewal by the insurance
9-16 carrier and not later than the 10th day following nonrenewal or
9-17 cancellation by the insured.
9-18 (e) A license holder whose proof of insurance expires shall
9-19 be notified by the commission that the holder has an insurance
9-20 violation. Failure to furnish the required proof shall be grounds
9-21 for revocation of the license in accordance with Article 9100,
9-22 Revised Statutes.
9-23 (f) A surety bond shall be posted with the commission by
9-24 each licensee in the following amounts:
9-25 (1) $35,000 for a Class I license;
10-1 (2) $25,000 for a Class II license; and
10-2 (3) $10,000 for a Class III license.
10-3 SECTION 9. CONTINUING EDUCATION PROGRAMS. The commissioner
10-4 shall recognize, prepare, or administer continuing education
10-5 programs for licensees. The Roofing Contractors Association of
10-6 Texas shall be an education provider and shall be the approval
10-7 agent of continuing education credits in these programs.
10-8 Participation in the programs is mandatory. Each licensee shall be
10-9 required to complete eight hours of continuing education per
10-10 license year.
10-11 SECTION 10. LICENSE BY RECIPROCITY. The commissioner may
10-12 waive any license requirement for an applicant or for the
10-13 qualifying party of an applicant with a valid license from another
10-14 state with which this state has a reciprocity agreement. A
10-15 reciprocity agreement with another state may only be recognized
10-16 under this section if the other state has licensing requirements
10-17 that the commissioner determines are substantially equivalent to
10-18 the requirements of this Act. The commissioner may not waive a
10-19 license requirement under this section for an applicant or
10-20 qualifying party of an applicant that does not maintain insurance
10-21 coverage and does not post a surety bond of the same type and
10-22 amount as required by Section 8 of this Act. The insurance
10-23 coverage and surety bond must apply to work performed in this
10-24 state.
10-25 SECTION 11. TEMPORARY LICENSE. (a) In the event the
11-1 qualifying party becomes incapacitated and unable to serve in the
11-2 normal capacity of principal of a company or is no longer available
11-3 due to the dissolution of a partnership or corporation, a temporary
11-4 license may be issued to another principal of the company, who then
11-5 becomes the qualifying party for a period extending 30 days beyond
11-6 the date of the next examination, not to exceed six months. The
11-7 temporary license is not renewable, but a second temporary license
11-8 may be issued if the company's qualifying party becomes unavailable
11-9 in circumstances that make the company again eligible to receive a
11-10 temporary license. The temporary license shall be of the same
11-11 class and endorsement as the license being replaced.
11-12 (b) The commissioner may issue a temporary license under the
11-13 conditions provided by Subsection (a) of this section to an
11-14 applicant who applies to the commissioner on a form prescribed by
11-15 the commissioner and pays the required fees.
11-16 SECTION 12. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
11-17 (a) A violation of this Act or a rule adopted under this Act is a
11-18 ground for the denial, suspension, or revocation of a license
11-19 issued under this Act as well as a ground for the imposition of
11-20 administrative penalties as provided by Article 9100, Revised
11-21 Statutes. The failure to provide proper installation consistent
11-22 with the manufacturer's specifications or consistent with commonly
11-23 accepted roofing practices, proper service, and mechanical
11-24 integrity under this Act constitutes a violation of this Act. An
11-25 intentional or knowing misrepresentation of necessary services,
12-1 services to be provided, or services that have been provided
12-2 constitutes a violation of this Act and a ground for the suspension
12-3 or revocation of a license issued under this Act.
12-4 (b) Proceedings for the denial, suspension, or revocation of
12-5 a license and appeals from those proceedings are governed by
12-6 Chapter 2001, Government Code. The imposition of administrative
12-7 penalties is governed by Article 9100, Revised Statutes.
12-8 SECTION 13. CONSUMER COMPLAINT INVESTIGATION. (a) The
12-9 commissioner shall prepare information of consumer interest
12-10 describing the functions performed by the commissioner under this
12-11 Act and the rights of consumers as affected by this Act. The
12-12 information must describe the procedure by which a consumer
12-13 complaint is filed with and resolved by the commissioner. The
12-14 commissioner shall make the information available to the general
12-15 public.
12-16 (b) The commissioner shall investigate consumer complaints
12-17 filed with the commissioner. If the commissioner determines after
12-18 investigation that a licensee has violated this Act or a rule
12-19 adopted under this Act, the commissioner may take appropriate
12-20 action under Section 12 of this Act.
12-21 SECTION 14. EXEMPTIONS. (a) This Act does not apply:
12-22 (1) to a person who performs roofing contracting on
12-23 property owned by the person;
12-24 (2) to a person or firm that is registered as a
12-25 manufacturer, retailer, or installer and regulated pursuant to the
13-1 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
13-2 Texas Civil Statutes) and that engages in roofing contracting for
13-3 manufactured homes in the installation of manufactured homes or in
13-4 providing retailer or manufacturer warranty services free of
13-5 charge;
13-6 (3) to new residential construction of single-family
13-7 homes, duplexes, or quadplexes;
13-8 (4) to a person who performs roofing contracting if:
13-9 (A) the person is a maintenance person or
13-10 maintenance engineer who is a regular bona fide employee of the
13-11 property owner, the property lessee, or the management company
13-12 managing the property where the roofing contracting work is being
13-13 performed;
13-14 (B) the work is performed in connection with the
13-15 business in which the person is employed; and
13-16 (C) the person and the person's employee
13-17 referred to in Paragraph (A) of this subdivision do not engage in
13-18 the occupation of roofing contracting for the general public;
13-19 (5) to a person who performs roofing contracting on a
13-20 dwelling owned by a member of the person's family;
13-21 (6) to a person that performs roofing contracting
13-22 without a license under this Act but receives a signed disclosure
13-23 statement from the owner of the property that states explicitly
13-24 that the owner understands that the person performing roofing
13-25 contracting on the owner's property is not a license holder under
14-1 this Act;
14-2 (7) to roofing contracting that is performed on
14-3 property that is primarily for agricultural use;
14-4 (8) to roofing contracting that is performed on
14-5 property that is a portable building or a garage that is not
14-6 connected to a dwelling; or
14-7 (9) to a person who holds a license or other
14-8 credential under the laws of this state who performs roofing
14-9 contracting that is incidental to work performed by the person in
14-10 the ordinary scope of the person's work under the license or
14-11 credential.
14-12 (b) This Act shall in no way restrict the practice of
14-13 architecture or engineering by persons duly licensed in Texas to
14-14 practice these professions. This Act does not affect any provision
14-15 or requirement of Chapter 478, Acts of the 45th Legislature,
14-16 Regular Session, 1937 (Article 249a, Vernon's Texas Civil
14-17 Statutes), or The Texas Engineering Practice Act (Article 3271a,
14-18 Vernon's Texas Civil Statutes).
14-19 SECTION 15. ENFORCEMENT OF CONTRACTS. (a) A person who
14-20 performs roofing contracting without holding the appropriate
14-21 license under this Act may not collect a fee or otherwise enforce a
14-22 contract for the services performed unless the person performing
14-23 the roofing contracting is subject to the exemptions as outlined in
14-24 Section 14 of this Act. To enforce a contract for the performance
14-25 of roofing contracting, the person performing the services must
15-1 present proof that the person or the person's company held a
15-2 license under this Act at the time the contract was signed and the
15-3 work is performed or must present a signed disclosure statement
15-4 from the homeowner as prescribed by Section 14(a)(6) of this Act.
15-5 (b) The commissioner shall adopt rules relating to the
15-6 manner in which proof may be presented under this section.
15-7 SECTION 16. OFFENSE; PENALTY. Except as provided in Section
15-8 18 of this Act, a person commits an offense if the person is a
15-9 qualifying party and knowingly or intentionally engages in roofing
15-10 contracting without a license issued under this Act. An offense
15-11 under this section is a Class B misdemeanor.
15-12 SECTION 17. CERTAIN ADVERTISING PROHIBITED. A person may
15-13 not advertise to the public that the person is engaged in the
15-14 business of roofing contracting unless the person holds a license
15-15 issued under this Act. A violation of this section constitutes
15-16 engaging in roofing contracting without a license for purposes of
15-17 Section 16 of this Act.
15-18 SECTION 18. MUNICIPAL REGULATION. A municipality may by
15-19 ordinance adopt and enforce standards for roofing contractors that
15-20 are consistent with the standards established under this Act. A
15-21 municipality may not impose a licensing or registration fee on a
15-22 roofing contractor licensed under this Act. The municipality may
15-23 report a violation of this Act to the commission. If the
15-24 municipality elects to report the violation, it shall do so not
15-25 later than the 10th day after the date on which it discovers the
16-1 violation of this Act. Conviction of an offense under the
16-2 municipal ordinance is a ground for the denial, suspension, or
16-3 revocation of a license issued under this Act.
16-4 SECTION 19. EXEMPTION FROM EXAMINATION FOR CERTIFIED
16-5 CONTRACTORS. (a) A person who is a certified roofing contractor
16-6 in good standing as tested and approved by the Roofing Contractors
16-7 Association of Texas on the effective date of this Act is entitled
16-8 or, if the person is a qualifying party of a company, the person's
16-9 company is entitled to receive a license without examination if the
16-10 contractor applies to the commissioner for the license not later
16-11 than September 1, 1998, and:
16-12 (1) registers with the commission and pays the
16-13 required licensing fee;
16-14 (2) shows evidence of insurance coverage required
16-15 under Section 8 of this Act; and
16-16 (3) submits a copy of the contractor's certification
16-17 that has been attested to by the president and the executive
16-18 director of the Roofing Contractors Association of Texas.
16-19 (b) The class of a license issued under this section shall
16-20 be based on the classification of certification that is currently
16-21 held by the contractor and shall correspond as follows:
16-22 (1) a certified commercial and residential roofing
16-23 contractor shall receive a Class I license;
16-24 (2) a certified commercial roofing contractor shall
16-25 receive a Class II license; and
17-1 (3) a certified residential roofing contractor shall
17-2 receive a Class III license.
17-3 (c) A roofing contractor who is issued a license under this
17-4 section is subject to all other provisions of this Act, including
17-5 provisions for the renewal of the roofing contractor license.
17-6 SECTION 20. TERMS OF INITIAL BOARD MEMBERS. In making the
17-7 initial appointments to the advisory board, the commissioner shall
17-8 designate two members for terms expiring on February 1, 1999, two
17-9 members for terms expiring on February 1, 2001, and two members for
17-10 terms expiring on February 1, 2003.
17-11 SECTION 21. EFFECTIVE DATE. (a) Except as provided by
17-12 Subsection (b) of this section, this Act takes effect September 1,
17-13 1997.
17-14 (b) Sections 5 and 16 of this Act take effect September 1,
17-15 1998.
17-16 SECTION 22. EMERGENCY. The importance of this legislation
17-17 and the crowded condition of the calendars in both houses create an
17-18 emergency and an imperative public necessity that the
17-19 constitutional rule requiring bills to be read on three several
17-20 days in each house be suspended, and this rule is hereby suspended.