75R13923 JMM-F
By Moncrief S.B. No. 259
Substitute the following for S.B. No. 259:
By Yarbrough C.S.S.B. No. 259
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of roofing contractors; providing
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. SHORT TITLE. This Act may be cited as the
1-6 "Roofing Contractors Licensing Law."
1-7 SECTION 2. DEFINITIONS. In this Act:
1-8 (1) "Advisory board" means the Roofing Contractors
1-9 Advisory Board.
1-10 (2) "Commercial roofing" means the exterior roof,
1-11 cover, or skin of the roof assembly consisting of membrane, metal
1-12 panels, sheets, shingles, tiles, slate, and other materials on any
1-13 building or structure other than buildings or structures listed in
1-14 Subdivision (8) of this section.
1-15 (3) "Commission" means the Texas Commission of
1-16 Licensing and Regulation.
1-17 (4) "Commissioner" means the commissioner of licensing
1-18 and regulation.
1-19 (5) "Mechanical integrity" means physical installation
1-20 of products, systems, or equipment in accordance with their
1-21 intended purpose and according to industry standards at least as
1-22 strict as the roofing manufacturers' specifications.
1-23 (6) "Person" means an individual, corporation,
1-24 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
2-26 protect damaged property. The order may be issued without notice
2-27 and hearing or with such notice and hearing as the commissioner
3-1 considers practicable under the circumstances. If an emergency
3-2 order is issued under this subsection without a hearing, the
3-3 commissioner shall set the time and place for a hearing to affirm,
3-4 modify, or set aside the emergency order. The commission may issue
3-5 cease and desist orders.
3-6 (c) The commissioner shall prescribe application forms for
3-7 original and renewal licenses and the design of the licenses.
3-8 (d) The commissioner shall prescribe the method and content
3-9 of examinations administered under this Act and shall set
3-10 compliance requirements for the examinations. The examination
3-11 shall be offered at least quarterly at various locations around the
3-12 state as determined by the commission.
3-13 (e) The commissioner shall enforce insurance requirements
3-14 for persons licensed under this Act.
3-15 (f) The commission may employ the personnel necessary to
3-16 implement this Act. The commission shall contract with at least
3-17 two full-time roofing contractors to serve as test examiners.
3-18 (g) The commissioner may authorize necessary disbursements
3-19 to implement this Act, including office expenses, costs of
3-20 equipment, and other necessary facilities.
3-21 (h) The commission shall publish annually a directory of the
3-22 persons licensed under this Act. The commission may sell the
3-23 directory on payment of a reasonable fee set by the commission.
3-24 The fees collected under this subsection shall be appropriated to
3-25 the commission for use in the administration of this Act.
3-26 (i) The commission may contract with another state agency or
3-27 with a political subdivision of the state for the enforcement of
4-1 this Act and the rules adopted by the commissioner under this Act.
4-2 (j) The commissioner shall adopt rules that require a
4-3 license holder to obtain a permit from an approved landfill to
4-4 dispose of roofing materials. Rules adopted under this subsection
4-5 shall include a requirement that a license holder maintain a record
4-6 for each disposal of roofing materials by the license holder.
4-7 SECTION 4. ADVISORY BOARD. (a) The Roofing Contractors
4-8 Advisory Board is created to advise the commissioner in adopting
4-9 rules, method, and content of examination and enforcing and
4-10 administering this Act and to advise the commission in setting
4-11 fees.
4-12 (b) The advisory board is composed of six members appointed
4-13 by the commissioner who are experienced in the design,
4-14 installation, construction, maintenance, service, repair,
4-15 alteration, or modification of roofing systems. Members of the
4-16 advisory board shall hold office for staggered terms of six years,
4-17 with two terms expiring on February 1 of each odd-numbered year.
4-18 (c) The commissioner shall appoint the advisory board
4-19 members as follows:
4-20 (1) three members must be full-time licensed roofing
4-21 contractors as follows:
4-22 (A) one member must hold a commercial license;
4-23 (B) one member must hold a residential license;
4-24 and
4-25 (C) one member must hold a commercial and a
4-26 residential license; and
4-27 (2) three shall be public members.
5-1 (d) For the members appointed under Subsection (c)(1) of
5-2 this section, at least one member must practice in a municipality
5-3 with a population of 250,000 or more and at least one member must
5-4 practice in a municipality with a population of less than 250,000.
5-5 For the purposes of this subsection, "population" means the
5-6 population according to the most recent federal decennial census.
5-7 (e) The commissioner shall designate one member of the
5-8 advisory board to serve as chairman. The commissioner or the
5-9 commissioner's designee shall serve as an ex officio, nonvoting
5-10 member of the advisory board. On the resignation, death,
5-11 suspension, or incapacity of any member, the commissioner shall
5-12 fill the vacancy for the remainder of the unexpired term with an
5-13 individual who represents the same category with which the
5-14 predecessor was identified.
5-15 (f) The advisory board shall meet at least every six months
5-16 and may meet at other times at the call of the chairman. The
5-17 advisory board shall meet at a place designated by the board within
5-18 the State of Texas. A decision of the advisory board is not
5-19 effective unless it receives the affirmative vote of at least a
5-20 majority of the members present.
5-21 (g) The advisory board members serve without compensation.
5-22 SECTION 5. LICENSE REQUIRED. (a) Unless the person is
5-23 exempted under Section 14 of this Act, a person or company may not
5-24 perform roofing contracting without a license under this Act.
5-25 (b) A roofing contracting company that is not exempt under
5-26 this Act must employ a license holder, or license holders, whose
5-27 license is assigned to that company.
6-1 (c) A representative of the commission or a municipal
6-2 official may issue a citation to a person who performs roofing
6-3 contracting without a license issued under this Act.
6-4 (d) A license issued under this Act is valid throughout the
6-5 state, and the holder and persons under the holder's supervision
6-6 are not required to hold a municipal license to practice roofing
6-7 contracting in any municipality within this state.
6-8 SECTION 6. ROOFING CONTRACTOR LICENSES. (a) The roofing
6-9 contracting company shall be the license holder and shall comply
6-10 with all the requirements of this Act, with a principal of the
6-11 company being the qualifying party meeting all the requirements of
6-12 this Act. Roofing contractor licenses are of the following three
6-13 classes and entitle the licensee to perform the following services,
6-14 respectively:
6-15 (1) a Class I license entitles the licensee to perform
6-16 commercial and residential roofing services;
6-17 (2) a Class II license entitles the licensee to
6-18 perform only commercial roofing services; and
6-19 (3) a Class III license entitles the licensee to
6-20 perform only residential roofing services.
6-21 (b) The commissioner shall prescribe separate examinations
6-22 for each class of license. For Class I licenses, the commissioner
6-23 shall prescribe separate examinations for commercial and
6-24 residential services.
6-25 (c) The qualifying party that applies for a roofing
6-26 contractor license must be at least 18 years old and must present
6-27 to the commissioner satisfactory evidence of at least 36 months of
7-1 practical experience in the preceding five years.
7-2 (d) The application must be made on a form prescribed by the
7-3 commissioner and must specify the class of license the applicant
7-4 seeks. The application must be sworn to and verified and must be
7-5 accompanied by:
7-6 (1) evidence of the insurance coverage required under
7-7 this Act;
7-8 (2) a statement of the applicant's practical
7-9 experience; and
7-10 (3) the examination fee.
7-11 (e) The commissioner shall issue a roofing contractor
7-12 license to a company which has a qualifying party who possesses the
7-13 required qualifications, passes the appropriate examinations, and
7-14 pays the examination fee and the original license fee required by
7-15 this Act. An applicant who fails an examination is eligible for
7-16 reexamination.
7-17 (f) A license issued under this Act is valid for a one-year
7-18 period from the date of issuance.
7-19 (g) With the advice of the advisory board, the commissioner
7-20 shall adopt rules relating to the use, display, and advertisement
7-21 of a licensee's license.
7-22 SECTION 7. NOTICE OF EXAMINATION RESULTS. (a) Not later
7-23 than the 45th day after the date on which an examination is
7-24 administered under this Act, the commissioner shall notify each
7-25 examinee of the results of the examination. However, if an
7-26 examination is graded or reviewed by a national testing service,
7-27 the commissioner shall notify examinees of the results of the
8-1 examination not later than the 14th day after the date on which the
8-2 commissioner receives the results from the testing service.
8-3 (b) If requested in writing by a person who fails the
8-4 examination, the commissioner shall furnish the person with the
8-5 results of the person's performance on the examination.
8-6 SECTION 8. INSURANCE REQUIREMENT. (a) A licensed
8-7 contractor shall maintain general liability insurance coverage in
8-8 the following amounts:
8-9 (1) for a Class I license, $250,000 per occurrence,
8-10 with a minimum total aggregate of $500,000;
8-11 (2) for a Class II license, $250,000 per occurrence,
8-12 with a minimum total aggregate of $500,000; and
8-13 (3) for a Class III license, $100,000 minimum total
8-14 aggregate.
8-15 (b) Insurance must be obtained from an admitted company or
8-16 an eligible surplus lines insurer, as defined in Article 1.14-2,
8-17 Insurance Code.
8-18 (c) A license applicant or holder shall furnish to the
8-19 commission a certificate of insurance. The license holder's name,
8-20 business name, and address must be shown as it appears on the
8-21 license. The certificate form to be submitted shall be the form
8-22 furnished by the commission. Each certificate of insurance shall
8-23 reflect all assumed names used by the license holder and registered
8-24 with this agency. Neither binders nor interim certificates of less
8-25 than 60 days will be accepted.
8-26 (d) The certificate of insurance shall state that the
8-27 insurance carrier shall notify the commission not later than the
9-1 30th day before the cancellation or nonrenewal by the insurance
9-2 carrier and not later than the 10th day following nonrenewal or
9-3 cancellation by the insured.
9-4 (e) A license holder whose proof of insurance expires shall
9-5 be notified by the commission that the holder has an insurance
9-6 violation. Failure to furnish the required proof shall be grounds
9-7 for revocation of the license in accordance with Article 9100,
9-8 Revised Statutes.
9-9 (f) A surety bond shall be posted with the commission by
9-10 each licensee in the following amounts:
9-11 (1) $35,000 for a Class I license;
9-12 (2) $25,000 for a Class II license; and
9-13 (3) $10,000 for a Class III license.
9-14 SECTION 9. CONTINUING EDUCATION PROGRAMS. The commissioner
9-15 shall recognize, prepare, or administer continuing education
9-16 programs for licensees. The Roofing Contractors Association of
9-17 Texas shall be an education provider and shall be the approval
9-18 agent of continuing education credits in these programs.
9-19 Participation in the programs is mandatory. Each licensee shall be
9-20 required to complete eight hours of continuing education per
9-21 license year.
9-22 SECTION 10. LICENSE BY RECIPROCITY. The commissioner may
9-23 waive any license requirement for an applicant or for the
9-24 qualifying party of an applicant with a valid license from another
9-25 state with which this state has a reciprocity agreement. A
9-26 reciprocity agreement with another state may only be recognized
9-27 under this section if the other state has licensing requirements
10-1 that the commissioner determines are substantially equivalent to
10-2 the requirements of this Act. The commissioner may not waive a
10-3 license requirement under this section for an applicant or
10-4 qualifying party of an applicant that does not maintain insurance
10-5 coverage and does not post a surety bond of the same type and
10-6 amount as required by Section 8 of this Act. The insurance
10-7 coverage and surety bond must apply to work performed in this
10-8 state.
10-9 SECTION 11. TEMPORARY LICENSE. (a) In the event the
10-10 qualifying party becomes incapacitated and unable to serve in the
10-11 normal capacity of principal of a company or is no longer available
10-12 due to the dissolution of a partnership or corporation, a temporary
10-13 license may be issued to another principal of the company, who then
10-14 becomes the qualifying party for a period extending 30 days beyond
10-15 the date of the next examination, not to exceed six months. The
10-16 temporary license is not renewable, but a second temporary license
10-17 may be issued if the company's qualifying party becomes unavailable
10-18 in circumstances that make the company again eligible to receive a
10-19 temporary license. The temporary license shall be of the same
10-20 class and endorsement as the license being replaced.
10-21 (b) The commissioner may issue a temporary license under the
10-22 conditions provided by Subsection (a) of this section to an
10-23 applicant who applies to the commissioner on a form prescribed by
10-24 the commissioner and pays the required fees.
10-25 SECTION 12. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
10-26 (a) A violation of this Act or a rule adopted under this Act is a
10-27 ground for the denial, suspension, or revocation of a license
11-1 issued under this Act as well as a ground for the imposition of
11-2 administrative penalties as provided by Article 9100, Revised
11-3 Statutes. The failure to provide proper installation consistent
11-4 with the manufacturer's specifications or consistent with commonly
11-5 accepted roofing practices, proper service, and mechanical
11-6 integrity under this Act constitutes a violation of this Act. An
11-7 intentional or knowing misrepresentation of necessary services,
11-8 services to be provided, or services that have been provided
11-9 constitutes a violation of this Act and a ground for the suspension
11-10 or revocation of a license issued under this Act.
11-11 (b) Proceedings for the denial, suspension, or revocation of
11-12 a license and appeals from those proceedings are governed by
11-13 Chapter 2001, Government Code. The imposition of administrative
11-14 penalties is governed by Article 9100, Revised Statutes.
11-15 SECTION 13. CONSUMER COMPLAINT INVESTIGATION. (a) The
11-16 commissioner shall prepare information of consumer interest
11-17 describing the functions performed by the commissioner under this
11-18 Act and the rights of consumers as affected by this Act. The
11-19 information must describe the procedure by which a consumer
11-20 complaint is filed with and resolved by the commissioner. The
11-21 commissioner shall make the information available to the general
11-22 public.
11-23 (b) The commissioner shall investigate consumer complaints
11-24 filed with the commissioner. If the commissioner determines after
11-25 investigation that a licensee has violated this Act or a rule
11-26 adopted under this Act, the commissioner may take appropriate
11-27 action under Section 12 of this Act.
12-1 SECTION 14. EXEMPTIONS. (a) This Act does not apply:
12-2 (1) to a person who performs roofing contracting on
12-3 property owned by the person;
12-4 (2) to a person or firm that is licensed and regulated
12-5 as a manufacturer, rebuilder, retailer, or installer under the
12-6 Texas Manufactured Housing Standards Act (Article 5221f, Vernon's
12-7 Texas Civil Statutes), and that engages in roofing contracting for
12-8 manufactured homes or in providing retailer or manufacturer
12-9 warranty services free of charge;
12-10 (3) to new residential construction of single-family
12-11 homes, duplexes, or quadplexes;
12-12 (4) to a person who performs roofing contracting if:
12-13 (A) the person is a maintenance person or
12-14 maintenance engineer who is a regular bona fide employee of the
12-15 property owner, the property lessee, or the management company
12-16 managing the property where the roofing contracting work is being
12-17 performed;
12-18 (B) the work is performed in connection with the
12-19 business in which the person is employed; and
12-20 (C) the person and the person's employee
12-21 referred to in Paragraph (A) of this subdivision do not engage in
12-22 the occupation of roofing contracting for the general public;
12-23 (5) to a person who performs roofing contracting on a
12-24 dwelling owned by a member of the person's family;
12-25 (6) to roofing contracting that is performed on
12-26 property that is primarily for agricultural use;
12-27 (7) to roofing contracting that is performed on
13-1 property that is a portable building or a garage that is not
13-2 connected to a dwelling; or
13-3 (8) to a person who holds a license or other
13-4 credential under the laws of this state who performs roofing
13-5 contracting that is incidental to work performed by the person in
13-6 the ordinary scope of the person's work under the license or
13-7 credential.
13-8 (b) This Act shall in no way restrict the practice of
13-9 architecture or engineering by persons duly licensed in Texas to
13-10 practice these professions. This Act does not affect any provision
13-11 or requirement of Chapter 478, Acts of the 45th Legislature,
13-12 Regular Session, 1937 (Article 249a, Vernon's Texas Civil
13-13 Statutes), or The Texas Engineering Practice Act (Article 3271a,
13-14 Vernon's Texas Civil Statutes).
13-15 SECTION 15. ENFORCEMENT OF CONTRACTS. (a) A person who
13-16 performs roofing contracting without holding the appropriate
13-17 license under this Act may not collect a fee or otherwise enforce a
13-18 contract for the services performed. To enforce a contract for the
13-19 performance of roofing contracting, the person performing the
13-20 services must present proof that the person or the person's company
13-21 held a license under this Act at the time the contract was signed
13-22 and the work is performed.
13-23 (b) The commissioner shall adopt rules relating to the
13-24 manner in which proof may be presented under this section.
13-25 SECTION 16. OFFENSE; PENALTY. Except as provided in Section
13-26 18 of this Act, a person commits an offense if the person is a
13-27 qualifying party and knowingly or intentionally engages in roofing
14-1 contracting without a license issued under this Act. An offense
14-2 under this section is a Class C misdemeanor.
14-3 SECTION 17. CERTAIN ADVERTISING PROHIBITED. A person may
14-4 not advertise to the public that the person is engaged in the
14-5 business of roofing contracting unless the person holds a license
14-6 issued under this Act. A violation of this section constitutes
14-7 engaging in roofing contracting without a license for purposes of
14-8 Section 16 of this Act.
14-9 SECTION 18. MUNICIPAL REGULATION. A municipality may by
14-10 ordinance adopt and enforce standards for roofing contractors that
14-11 are consistent with the standards established under this Act. A
14-12 municipality may not impose a licensing or registration fee on a
14-13 roofing contractor licensed under this Act. The municipality may
14-14 report a violation of this Act to the commission. If the
14-15 municipality elects to report the violation, it shall do so not
14-16 later than the 10th day after the date on which it discovers the
14-17 violation of this Act. Conviction of an offense under the
14-18 municipal ordinance is a ground for the denial, suspension, or
14-19 revocation of a license issued under this Act.
14-20 SECTION 19. EXEMPTION FROM EXAMINATION FOR CERTIFIED
14-21 CONTRACTORS. (a) A person who is a certified roofing contractor
14-22 in good standing as tested and approved by the Roofing Contractors
14-23 Association of Texas on the effective date of this Act is entitled
14-24 or, if the person is a qualifying party of a company, the person's
14-25 company is entitled to receive a license without examination if the
14-26 contractor applies to the commissioner for the license not later
14-27 than September 1, 1998, and:
15-1 (1) registers with the commission and pays the
15-2 required licensing fee;
15-3 (2) shows evidence of insurance coverage required
15-4 under Section 8 of this Act; and
15-5 (3) submits a copy of the contractor's certification
15-6 that has been attested to by the president and the executive
15-7 director of the Roofing Contractors Association of Texas.
15-8 (b) The class of a license issued under this section shall
15-9 be based on the classification of certification that is currently
15-10 held by the contractor and shall correspond as follows:
15-11 (1) a certified commercial and residential roofing
15-12 contractor shall receive a Class I license;
15-13 (2) a certified commercial roofing contractor shall
15-14 receive a Class II license; and
15-15 (3) a certified residential roofing contractor shall
15-16 receive a Class III license.
15-17 (c) A roofing contractor who is issued a license under this
15-18 section is subject to all other provisions of this Act, including
15-19 provisions for the renewal of the roofing contractor license.
15-20 SECTION 20. TERMS OF INITIAL BOARD MEMBERS. In making the
15-21 initial appointments to the advisory board, the commissioner shall
15-22 designate two members for terms expiring on February 1, 1999, two
15-23 members for terms expiring on February 1, 2001, and two members for
15-24 terms expiring on February 1, 2003.
15-25 SECTION 21. EFFECTIVE DATE. (a) Except as provided by
15-26 Subsection (b) of this section, this Act takes effect September 1,
15-27 1997.
16-1 (b) Sections 5 and 16 of this Act take effect September 1,
16-2 1998.
16-3 SECTION 22. EMERGENCY. The importance of this legislation
16-4 and the crowded condition of the calendars in both houses create an
16-5 emergency and an imperative public necessity that the
16-6 constitutional rule requiring bills to be read on three several
16-7 days in each house be suspended, and this rule is hereby suspended.