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.