By:  Moncrief                                 S.B. No. 259

         97S0146/1                            

                                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 (7) 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.

1-23                 (7)  "Qualifying party" means a person who possesses

 2-1     all the necessary qualifications and who is a principal of a

 2-2     company licensed under this Act.

 2-3                 (8)  "Residential roofing" means any material applied

 2-4     to the exterior roof framing (wood or steel) on single-family

 2-5     homes, duplexes, or quadplexes.

 2-6                 (9)  "Roofing contracting" means performing or offering

 2-7     to perform the design, installation, construction, maintenance,

 2-8     service, repair, alteration, or modification of a product or of

 2-9     equipment in roofs.

2-10                 (10)  "Roofing contracting company" or "company" means

2-11     any person, corporation, partnership, association, or other entity

2-12     that performs roofing contracting.

2-13           SECTION 3.  POWERS AND DUTIES OF COMMISSIONER.  (a)  The

2-14     commissioner shall adopt rules for the practice of roofing

2-15     contracting consistent with this Act.  The standards prescribed by

2-16     rule must be substantially the same as the standards set forth in

2-17     the roofing manufacturers' standard requirements.  The commissioner

2-18     shall enforce this Act and may adopt rules relating to enforcement

2-19     requirements.

2-20           (b)  The commissioner may issue an emergency order as

2-21     necessary to enforce this Act if the commissioner determines that

2-22     an emergency exists requiring immediate action to protect the

2-23     public health and safety.  The order may be issued without notice

2-24     and hearing or with such notice and hearing as the commissioner

2-25     considers practicable under the circumstances.  If an emergency

 3-1     order is issued under this subsection without a hearing, the

 3-2     commissioner shall set the time and place for a hearing to affirm,

 3-3     modify, or set aside the emergency order.  The commission may issue

 3-4     cease and desist orders.

 3-5           (c)  The commissioner shall prescribe application forms for

 3-6     original and renewal licenses and the design of the licenses.

 3-7           (d)  The commissioner shall prescribe the method and content

 3-8     of examinations administered under this Act and shall set

 3-9     compliance requirements for the examinations.  The examination

3-10     shall be offered at least quarterly at various locations around the

3-11     state as determined by the commission.

3-12           (e)  The commissioner shall enforce insurance requirements

3-13     for persons licensed under this Act.

3-14           (f)  The commission may employ the personnel necessary to

3-15     implement this Act.  The commission shall contract with at least

3-16     two full-time roofing contractors to serve as test examiners.

3-17           (g)  The commissioner may authorize necessary disbursements

3-18     to implement this Act, including office expenses, costs of

3-19     equipment, and other necessary facilities.

3-20           (h)  The commission shall publish annually a directory of the

3-21     persons licensed under this Act.  The commission may sell the

3-22     directory on payment of a reasonable fee set by the commission.

3-23     The fees collected under this subsection shall be appropriated to

3-24     the commission for use in the administration of this Act.

3-25           (i)  The commission may contract with another state agency or

 4-1     with a political subdivision of the state for the enforcement of

 4-2     this Act and the rules adopted by the commissioner under this Act.

 4-3           SECTION 4.  ADVISORY BOARD.  (a)  The Roofing Contractors

 4-4     Advisory Board is created to advise the commissioner in adopting

 4-5     rules, method, and content of examination and enforcing and

 4-6     administering this Act and to advise the commission in setting

 4-7     fees.

 4-8           (b)  The advisory board is composed of six members appointed

 4-9     by the commissioner who are experienced in the design,

4-10     installation, construction, maintenance, service, repair,

4-11     alteration, or modification of roofing systems.  Members of the

4-12     advisory board shall hold office for staggered terms of six years,

4-13     with two terms expiring on February 1 of each odd-numbered year.

4-14           (c)  The commissioner shall appoint the advisory board

4-15     members as follows:

4-16                 (1)  three members must be full-time licensed roofing

4-17     contractors as follows:

4-18                       (A)  one member must hold a commercial license;

4-19                       (B)  one member must hold a residential license;

4-20     and

4-21                       (C)  one member must hold a commercial and a

4-22     residential license; and

4-23                 (2)  three shall be public members.

4-24           (d)  For the members appointed under Subsection (c)(1) of

4-25     this section, at least one member must practice in a municipality

 5-1     with a population of 250,000 or more and at least one member must

 5-2     practice in a municipality with a population of less than 250,000.

 5-3     For the purposes of this subsection, "population" means the

 5-4     population according to the most recent federal decennial census.

 5-5           (e)  The commissioner shall designate one member of the

 5-6     advisory board to serve as chairman.  The commissioner or the

 5-7     commissioner's designee shall serve as an ex officio, nonvoting

 5-8     member of the advisory board.  On the resignation, death,

 5-9     suspension, or incapacity of any member, the commissioner shall

5-10     fill the vacancy for the remainder of the unexpired term with an

5-11     individual who represents the same category with which the

5-12     predecessor was identified.

5-13           (f)  The advisory board shall meet at least every six months

5-14     and may meet at other times at the call of the chairman.  The

5-15     advisory board shall meet at a place designated by the board within

5-16     the State of Texas.  A decision of the advisory board is not

5-17     effective unless it receives the affirmative vote of at least a

5-18     majority of the members present.

5-19           (g)  The advisory board members serve without compensation.

5-20           SECTION 5.  LICENSE REQUIRED.  (a)  Unless the person is

5-21     exempted under Section 14 of this Act, a person or company may not

5-22     perform roofing contracting without a license under this Act.

5-23           (b)  A roofing contracting company that is not exempt under

5-24     this Act must employ a license holder, or license holders whose

5-25     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.  To the extent

 6-4     authorized by Chapter 29, Government Code, the municipal court has

 6-5     concurrent jurisdiction with a justice court of a precinct in which

 6-6     the municipality is located in a case arising from a citation

 6-7     issued under this subsection.

 6-8           (d)  A license issued under this Act is valid throughout the

 6-9     state, and the holder and persons under the holder's supervision

6-10     are not required to hold a municipal license to practice roofing

6-11     contracting in any municipality within this state.

6-12           SECTION 6.  ROOFING CONTRACTOR LICENSES.  (a)  The roofing

6-13     contracting company shall be the license holder and shall comply

6-14     with all the requirements of this Act, with a principal of the

6-15     company being the qualifying party meeting all the requirements of

6-16     this Act.  Roofing contractor licenses are of the following three

6-17     classes and entitle the licensee to perform the following services,

6-18     respectively:

6-19                 (1)  a Class I license entitles the licensee to perform

6-20     commercial and residential roofing services;

6-21                 (2)  a Class II license entitles the licensee to

6-22     perform only commercial roofing services; and

6-23                 (3)  a Class III license entitles the licensee to

6-24     perform only residential roofing services.

6-25           (b)  The commissioner shall prescribe separate examinations

 7-1     for each class of license.  For Class I licenses, the commissioner

 7-2     shall prescribe separate examinations for commercial and

 7-3     residential services.

 7-4           (c)  The qualifying party that applies for a roofing

 7-5     contractor license must be at least 18 years old and must present

 7-6     to the commissioner satisfactory evidence of at least 36 months of

 7-7     practical experience with the tools of the trade in the preceding

 7-8     five years.

 7-9           (d)  The application must be made on a form prescribed by the

7-10     commissioner and must specify the class of license the applicant

7-11     seeks.  The application must be sworn to and verified and must be

7-12     accompanied by:

7-13                 (1)  evidence of the insurance coverage required under

7-14     this Act;

7-15                 (2)  a statement of the applicant's practical

7-16     experience; and

7-17                 (3)  the examination fee.

7-18           (e)  The commissioner shall issue a roofing contractor

7-19     license to a company which has a qualifying party who possesses the

7-20     required qualifications, passes the appropriate examinations, and

7-21     pays the examination fee and the original license fee required by

7-22     this Act.  An applicant who fails an examination is eligible for

7-23     reexamination.

7-24           (f)  A license issued under this Act is valid for a one-year

7-25     period from the date of issuance.

 8-1           (g)  With the advice of the advisory board, the commissioner

 8-2     shall adopt rules relating to the use, display, and advertisement

 8-3     of a licensee's license.

 8-4           SECTION 7.  NOTICE OF EXAMINATION RESULTS.  (a)  Not later

 8-5     than the 45th day after the date on which an examination is

 8-6     administered under this Act, the commissioner shall notify each

 8-7     examinee of the results of the examination.  However, if an

 8-8     examination is graded or reviewed by a national testing service,

 8-9     the commissioner shall notify examinees of the results of the

8-10     examination not later than the 14th day after the date on which the

8-11     commissioner receives the results from the testing service.

8-12           (b)  If requested in writing by a person who fails the

8-13     examination, the commissioner shall furnish the person with the

8-14     results of the person's performance on the examination.

8-15           SECTION 8.  INSURANCE REQUIREMENT.  (a)  A licensed

8-16     contractor shall maintain general liability insurance coverage in

8-17     the following amounts:

8-18                 (1)  for a Class I license, $250,000 per occurrence,

8-19     with a minimum total aggregate of $500,000;

8-20                 (2)  for a Class II license, $250,000 per occurrence,

8-21     with a minimum total aggregate of $500,000; and

8-22                 (3)  for a Class III license, $100,000 minimum total

8-23     aggregate.

8-24           (b)  Insurance must be obtained from an admitted company or

8-25     an eligible surplus lines insurer, as defined in Article 1.14-2,

 9-1     Insurance Code.

 9-2           (c)  A license applicant or holder shall furnish to the

 9-3     commission a certificate of insurance.  The license holder's name,

 9-4     business name, and address must be shown as it appears on the

 9-5     license.  The certificate form to be submitted shall be the form

 9-6     furnished by the commission.  Each certificate of insurance shall

 9-7     reflect all assumed names used by the license holder and registered

 9-8     with this agency.  Neither binders nor interim certificates of less

 9-9     than 60 days will be accepted.

9-10           (d)  The certificate of insurance shall state that the

9-11     insurance carrier shall notify the commission not later than the

9-12     30th day before the cancellation or nonrenewal by the insurance

9-13     carrier and not later than the 10th day following nonrenewal or

9-14     cancellation by the insured.

9-15           (e)  A license holder whose proof of insurance expires shall

9-16     be notified by the commission that the holder has an insurance

9-17     violation.  Failure to furnish the required proof shall be grounds

9-18     for revocation of the license in accordance with Article 9100,

9-19     Revised Statutes.

9-20           (f)  A surety bond shall be posted with the commission by

9-21     each licensee in the following amounts:

9-22                 (1)  $35,000 for a Class I license;

9-23                 (2)  $25,000 for a Class II license; and

9-24                 (3)  $10,000 for a Class III license.

9-25           SECTION 9.  CONTINUING EDUCATION PROGRAMS.  The commissioner

 10-1    shall recognize, prepare, or administer continuing education

 10-2    programs for licensees.  The Roofing Contractors Association of

 10-3    Texas shall be an education provider and shall be the approval

 10-4    agent of continuing education credits in these programs.

 10-5    Participation in the programs is mandatory.  Each licensee shall be

 10-6    required to complete eight hours of continuing education per

 10-7    license year.

 10-8          SECTION 10.  LICENSE BY RECIPROCITY.  The commissioner may

 10-9    waive any license requirement for an applicant or for the

10-10    qualifying party of an applicant with a valid license from another

10-11    state with which this state has a reciprocity agreement.

10-12          SECTION 11.  TEMPORARY LICENSE.  (a)  In the event the

10-13    qualifying party becomes incapacitated and unable to serve in the

10-14    normal capacity of principal of a company or is no longer available

10-15    due to the dissolution of a partnership or corporation, a temporary

10-16    license may be issued to another principal of the company, who then

10-17    becomes the qualifying party for a period extending 30 days beyond

10-18    the date of the next examination, not to exceed six months.  The

10-19    temporary license is not renewable, but a second temporary license

10-20    may be issued if the company's qualifying party becomes unavailable

10-21    in circumstances that make the company again eligible to receive a

10-22    temporary license.  The temporary license shall be of the same

10-23    class and endorsement as the license being replaced.

10-24          (b)  The commissioner may issue a temporary license under the

10-25    conditions provided by Subsection (a) of this section to an

 11-1    applicant who applies to the commissioner on a form prescribed by

 11-2    the commissioner and pays the required fees.

 11-3          SECTION 12.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.

 11-4    (a)  A violation of this Act or a rule adopted under this Act is a

 11-5    ground for the denial, suspension, or revocation of a license

 11-6    issued under this Act as well as a ground for the imposition of

 11-7    administrative penalties as provided by Article 9100, Revised

 11-8    Statutes.  The failure to provide proper installation consistent

 11-9    with the manufacturer's specifications or consistent with commonly

11-10    accepted roofing practices, proper service, and mechanical

11-11    integrity under this Act constitutes a violation of this Act.  An

11-12    intentional or knowing misrepresentation of necessary services,

11-13    services to be provided, or services that have been provided

11-14    constitutes a violation of this Act and a ground for the suspension

11-15    or revocation of a license issued under this Act.

11-16          (b)  Proceedings for the denial, suspension, or revocation of

11-17    a license and appeals from those proceedings are governed by

11-18    Chapter 2001, Government Code.  The imposition of administrative

11-19    penalties is governed by Article 9100, Revised Statutes.

11-20          SECTION 13.  CONSUMER COMPLAINT INVESTIGATION.  (a)  The

11-21    commissioner shall prepare information of consumer interest

11-22    describing the functions performed by the commissioner under this

11-23    Act and the rights of consumers as affected by this Act.  The

11-24    information must describe the procedure by which a consumer

11-25    complaint is filed with and resolved by the commissioner.  The

 12-1    commissioner shall make the information available to the general

 12-2    public.

 12-3          (b)  The commissioner shall investigate consumer complaints

 12-4    filed with the commissioner.  If the commissioner determines after

 12-5    investigation that a licensee has violated this Act or a rule

 12-6    adopted under this Act, the commissioner may take appropriate

 12-7    action under Section 12 of this Act.

 12-8          SECTION 14.  EXEMPTIONS.  This Act does not apply:

 12-9                (1)  to a person who performs roofing contracting on a

12-10    dwelling owned by the person and used as the person's residence;

12-11                (2)  to a person or firm that is registered as a

12-12    manufacturer, retailer, or installer and regulated pursuant to the

12-13    Texas Manufactured Housing Standards Act (Article 5221f, Vernon's

12-14    Texas Civil Statutes) and that engages in roofing contracting for

12-15    manufactured homes in the installation of manufactured homes or in

12-16    providing retailer or manufacturer warranty services free of

12-17    charge; or

12-18                (3)  to new residential construction of single-family

12-19    homes, duplexes, or quadplexes.

12-20          SECTION 15.  ENFORCEMENT OF CONTRACTS.  (a)  A person who

12-21    performs roofing contracting without holding the appropriate

12-22    license under this Act may not collect a fee or otherwise enforce a

12-23    contract for the services performed.  To enforce a contract for the

12-24    performance of roofing contracting, the person who performs the

12-25    services must present proof that the person or the person's company

 13-1    holds a license under this Act at the time the contract is signed

 13-2    and the work is performed.

 13-3          (b)  The commissioner shall adopt rules relating to the

 13-4    manner in which proof may be presented under this section.

 13-5          SECTION 16.  OFFENSE; PENALTY.  Except as provided in Section

 13-6    17 of this Act, a person commits an offense if the person is a

 13-7    qualifying party and knowingly or intentionally engages in roofing

 13-8    contracting without a license issued under this Act.  An offense

 13-9    under this section is a Class B misdemeanor.

13-10          SECTION 17.  MUNICIPAL REGULATION.  A municipality may by

13-11    ordinance adopt and enforce standards for roofing contractors that

13-12    are consistent with the standards established under this Act.  A

13-13    municipality may not impose a licensing or registration fee on a

13-14    roofing contractor licensed under this Act.  The municipality may

13-15    report a violation of this Act to the commission.  If the

13-16    municipality elects to report the violation, it shall do so not

13-17    later than the 10th day after the date on which it discovers the

13-18    violation of this Act.  Conviction of an offense under the

13-19    municipal ordinance is a ground for the denial, suspension, or

13-20    revocation of a license issued under this Act.

13-21          SECTION 18.  EXEMPTION FROM EXAMINATION FOR CERTIFIED

13-22    CONTRACTORS.  (a)  A person who is a certified roofing contractor

13-23    in good standing as tested and approved by the Roofing Contractors

13-24    Association of Texas on the effective date of this Act is entitled

13-25    or, if the person is a qualifying party of a company, the person's

 14-1    company is entitled to receive a license without examination if the

 14-2    contractor applies to the commissioner for the license not later

 14-3    than September 1, 1998, and:

 14-4                (1)  registers with the commission and pays the

 14-5    required licensing fee;

 14-6                (2)  shows evidence of insurance coverage required

 14-7    under Section 8 of this Act; and

 14-8                (3)  submits a copy of the contractor's certification

 14-9    that has been attested to by the president and the executive

14-10    director of the Roofing Contractors Association of Texas.

14-11          (b)  The class of a license issued under this section shall

14-12    be based on the classification of certification that is currently

14-13    held by the contractor and shall correspond as follows:

14-14                (1)  a certified commercial and residential roofing

14-15    contractor shall receive a Class I license;

14-16                (2)  a certified commercial roofing contractor shall

14-17    receive a Class II license; and

14-18                (3)  a certified residential roofing contractor shall

14-19    receive a Class III license.

14-20          (c)  A roofing contractor who is issued a license under this

14-21    section is subject to all other provisions of this Act, including

14-22    provisions for the renewal of the roofing contractor license.

14-23          SECTION 19.  TERMS OF INITIAL BOARD MEMBERS.  In making the

14-24    initial appointments to the advisory board, the commissioner shall

14-25    designate two members for a term expiring on February 1, 1999, two

 15-1    members for a term expiring on February 1, 2001, and two members

 15-2    for a term expiring on February 1, 2003.

 15-3          SECTION 20.  EFFECTIVE DATE.  (a)  Except as provided by

 15-4    Subsection (b) of this section, this Act takes effect September 1,

 15-5    1997.

 15-6          (b)  Sections 5 and 16 of this Act take effect September 1,

 15-7    1998.

 15-8          SECTION 21.  EMERGENCY.  The importance of this legislation

 15-9    and the crowded condition of the calendars in both houses create an

15-10    emergency and an imperative public necessity that the

15-11    constitutional rule requiring bills to be read on three several

15-12    days in each house be suspended, and this rule is hereby suspended.