1-1     By:  Moncrief                                          S.B. No. 259

 1-2           (In the Senate - Filed January 21, 1997; January 23, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     March 19, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 11, Nays 1; March 19, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 259                    By:  Nixon

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the regulation of roofing contractors; providing

1-11     penalties.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  SHORT TITLE.  This Act may be cited as the

1-14     "Roofing Contractors Licensing Law."

1-15           SECTION 2.  DEFINITIONS.  In this Act:

1-16                 (1)  "Advisory board" means the Roofing Contractors

1-17     Advisory Board.

1-18                 (2)  "Commercial roofing" means the exterior roof,

1-19     cover, or skin of the roof assembly consisting of membrane, metal

1-20     panels, sheets, shingles, tiles, slate, and other materials on any

1-21     building or structure other than buildings or structures listed in

1-22     Subdivision (8) of this section.

1-23                 (3)  "Commission" means the Texas Commission of

1-24     Licensing and Regulation.

1-25                 (4)  "Commissioner" means the commissioner of licensing

1-26     and regulation.

1-27                 (5)  "Mechanical integrity" means physical installation

1-28     of products, systems, or equipment in accordance with their

1-29     intended purpose and according to industry standards at least as

1-30     strict as the roofing manufacturers' specifications.

1-31                 (6)  "Person" means an individual.

1-32                 (7)  "Qualifying party" means a person who possesses

1-33     all the necessary qualifications and who is a principal of a

1-34     company licensed under this Act.

1-35                 (8)  "Residential roofing" means any material applied

1-36     to the exterior roof framing (wood or steel) on single-family

1-37     homes, duplexes, or quadplexes.

1-38                 (9)  "Roofing contracting" means performing or offering

1-39     to perform the design, installation, construction, maintenance,

1-40     service, repair, alteration, or modification of a product or of

1-41     equipment in roofs.

1-42                 (10)  "Roofing contracting company" or "company" means

1-43     any person, corporation, partnership, association, or other entity

1-44     that performs roofing contracting.

1-45           SECTION 3.  POWERS AND DUTIES OF COMMISSIONER.  (a)  The

1-46     commissioner shall adopt rules for the practice of roofing

1-47     contracting consistent with this Act.  The standards prescribed by

1-48     rule must be substantially the same as the standards set forth in

1-49     the roofing manufacturers' standard requirements.  The commissioner

1-50     shall enforce this Act and may adopt rules relating to enforcement

1-51     requirements.

1-52           (b)  The commissioner may issue an emergency order as

1-53     necessary to enforce this Act if the commissioner determines that

1-54     an emergency exists requiring immediate action to protect the

1-55     public health and safety.  The order may be issued without notice

1-56     and hearing or with such notice and hearing as the commissioner

1-57     considers practicable under the circumstances.  If an emergency

1-58     order is issued under this subsection without a hearing, the

1-59     commissioner shall set the time and place for a hearing to affirm,

1-60     modify, or set aside the emergency order.  The commission may issue

1-61     cease and desist orders.

1-62           (c)  The commissioner shall prescribe application forms for

1-63     original and renewal licenses and the design of the licenses.

1-64           (d)  The commissioner shall prescribe the method and content

 2-1     of examinations administered under this Act and shall set

 2-2     compliance requirements for the examinations.  The examination

 2-3     shall be offered at least quarterly at various locations around the

 2-4     state as determined by the commission.

 2-5           (e)  The commissioner shall enforce insurance requirements

 2-6     for persons licensed under this Act.

 2-7           (f)  The commission may employ the personnel necessary to

 2-8     implement this Act.  The commission shall contract with at least

 2-9     two full-time roofing contractors to serve as test examiners.

2-10           (g)  The commissioner may authorize necessary disbursements

2-11     to implement this Act, including office expenses, costs of

2-12     equipment, and other necessary facilities.

2-13           (h)  The commission shall publish annually a directory of the

2-14     persons licensed under this Act.  The commission may sell the

2-15     directory on payment of a reasonable fee set by the commission.

2-16     The fees collected under this subsection shall be appropriated to

2-17     the commission for use in the administration of this Act.

2-18           (i)  The commission may contract with another state agency or

2-19     with a political subdivision of the state for the enforcement of

2-20     this Act and the rules adopted by the commissioner under this Act.

2-21           SECTION 4.  ADVISORY BOARD.  (a)  The Roofing Contractors

2-22     Advisory Board is created to advise the commissioner in adopting

2-23     rules, method, and content of examination and enforcing and

2-24     administering this Act and to advise the commission in setting

2-25     fees.

2-26           (b)  The advisory board is composed of six members appointed

2-27     by the commissioner who are experienced in the design,

2-28     installation, construction, maintenance, service, repair,

2-29     alteration, or modification of roofing systems.  Members of the

2-30     advisory board shall hold office for staggered terms of six years,

2-31     with two terms expiring on February 1 of each odd-numbered year.

2-32           (c)  The commissioner shall appoint the advisory board

2-33     members as follows:

2-34                 (1)  three members must be full-time licensed roofing

2-35     contractors as follows:

2-36                       (A)  one member must hold a commercial license;

2-37                       (B)  one member must hold a residential license;

2-38     and

2-39                       (C)  one member must hold a commercial and a

2-40     residential license; and

2-41                 (2)  three shall be public members.

2-42           (d)  For the members appointed under Subsection (c)(1) of

2-43     this section, at least one member must practice in a municipality

2-44     with a population of 250,000 or more and at least one member must

2-45     practice in a municipality with a population of less than 250,000.

2-46     For the purposes of this subsection, "population" means the

2-47     population according to the most recent federal decennial census.

2-48           (e)  The commissioner shall designate one member of the

2-49     advisory board to serve as chairman.  The commissioner or the

2-50     commissioner's designee shall serve as an ex officio, nonvoting

2-51     member of the advisory board.  On the resignation, death,

2-52     suspension, or incapacity of any member, the commissioner shall

2-53     fill the vacancy for the remainder of the unexpired term with an

2-54     individual who represents the same category with which the

2-55     predecessor was identified.

2-56           (f)  The advisory board shall meet at least every six months

2-57     and may meet at other times at the call of the chairman.  The

2-58     advisory board shall meet at a place designated by the board within

2-59     the State of Texas.  A decision of the advisory board is not

2-60     effective unless it receives the affirmative vote of at least a

2-61     majority of the members present.

2-62           (g)  The advisory board members serve without compensation.

2-63           SECTION 5.  LICENSE REQUIRED.  (a)  Unless the person is

2-64     exempted under Section 14 of this Act, a person or company may not

2-65     perform roofing contracting without a license under this Act.

2-66           (b)  A roofing contracting company that is not exempt under

2-67     this Act must employ a license holder, or license holders, whose

2-68     license is assigned to that company.

2-69           (c)  A representative of the commission or a municipal

 3-1     official may issue a citation to a person who performs roofing

 3-2     contracting without a license issued under this Act.

 3-3           (d)  A license issued under this Act is valid throughout the

 3-4     state, and the holder and persons under the holder's supervision

 3-5     are not required to hold a municipal license to practice roofing

 3-6     contracting in any municipality within this state.

 3-7           SECTION 6.  ROOFING CONTRACTOR LICENSES.  (a)  The roofing

 3-8     contracting company shall be the license holder and shall comply

 3-9     with all the requirements of this Act, with a principal of the

3-10     company being the qualifying party meeting all the requirements of

3-11     this Act.  Roofing contractor licenses are of the following three

3-12     classes and entitle the licensee to perform the following services,

3-13     respectively:

3-14                 (1)  a Class I license entitles the licensee to perform

3-15     commercial and residential roofing services;

3-16                 (2)  a Class II license entitles the licensee to

3-17     perform only commercial roofing services; and

3-18                 (3)  a Class III license entitles the licensee to

3-19     perform only residential roofing services.

3-20           (b)  The commissioner shall prescribe separate examinations

3-21     for each class of license.  For Class I licenses, the commissioner

3-22     shall prescribe separate examinations for commercial and

3-23     residential services.

3-24           (c)  The qualifying party that applies for a roofing

3-25     contractor license must be at least 18 years old and must present

3-26     to the commissioner satisfactory evidence of at least 36 months of

3-27     practical experience in the preceding five years.

3-28           (d)  The application must be made on a form prescribed by the

3-29     commissioner and must specify the class of license the applicant

3-30     seeks.  The application must be sworn to and verified and must be

3-31     accompanied by:

3-32                 (1)  evidence of the insurance coverage required under

3-33     this Act;

3-34                 (2)  a statement of the applicant's practical

3-35     experience; and

3-36                 (3)  the examination fee.

3-37           (e)  The commissioner shall issue a roofing contractor

3-38     license to a company which has a qualifying party who possesses the

3-39     required qualifications, passes the appropriate examinations, and

3-40     pays the examination fee and the original license fee required by

3-41     this Act.  An applicant who fails an examination is eligible for

3-42     reexamination.

3-43           (f)  A license issued under this Act is valid for a one-year

3-44     period from the date of issuance.

3-45           (g)  With the advice of the advisory board, the commissioner

3-46     shall adopt rules relating to the use, display, and advertisement

3-47     of a licensee's license.

3-48           SECTION 7.  NOTICE OF EXAMINATION RESULTS.  (a)  Not later

3-49     than the 45th day after the date on which an examination is

3-50     administered under this Act, the commissioner shall notify each

3-51     examinee of the results of the examination.  However, if an

3-52     examination is graded or reviewed by a national testing service,

3-53     the commissioner shall notify examinees of the results of the

3-54     examination not later than the 14th day after the date on which the

3-55     commissioner receives the results from the testing service.

3-56           (b)  If requested in writing by a person who fails the

3-57     examination, the commissioner shall furnish the person with the

3-58     results of the person's performance on the examination.

3-59           SECTION 8.  INSURANCE REQUIREMENT.  (a)  A licensed

3-60     contractor shall maintain general liability insurance coverage in

3-61     the following amounts:

3-62                 (1)  for a Class I license, $250,000 per occurrence,

3-63     with a minimum total aggregate of $500,000;

3-64                 (2)  for a Class II license, $250,000 per occurrence,

3-65     with a minimum total aggregate of $500,000; and

3-66                 (3)  for a Class III license, $100,000 minimum total

3-67     aggregate.

3-68           (b)  Insurance must be obtained from an admitted company or

3-69     an eligible surplus lines insurer, as defined in Article 1.14-2,

 4-1     Insurance Code.

 4-2           (c)  A license applicant or holder shall furnish to the

 4-3     commission a certificate of insurance.  The license holder's name,

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

 4-5     license.  The certificate form to be submitted shall be the form

 4-6     furnished by the commission.  Each certificate of insurance shall

 4-7     reflect all assumed names used by the license holder and registered

 4-8     with this agency.  Neither binders nor interim certificates of less

 4-9     than 60 days will be accepted.

4-10           (d)  The certificate of insurance shall state that the

4-11     insurance carrier shall notify the commission not later than the

4-12     30th day before the cancellation or nonrenewal by the insurance

4-13     carrier and not later than the 10th day following nonrenewal or

4-14     cancellation by the insured.

4-15           (e)  A license holder whose proof of insurance expires shall

4-16     be notified by the commission that the holder has an insurance

4-17     violation.  Failure to furnish the required proof shall be grounds

4-18     for revocation of the license in accordance with Article 9100,

4-19     Revised Statutes.

4-20           (f)  A surety bond shall be posted with the commission by

4-21     each licensee in the following amounts:

4-22                 (1)  $35,000 for a Class I license;

4-23                 (2)  $25,000 for a Class II license; and

4-24                 (3)  $10,000 for a Class III license.

4-25           SECTION 9.  CONTINUING EDUCATION PROGRAMS.  The commissioner

4-26     shall recognize, prepare, or administer continuing education

4-27     programs for licensees.  The Roofing Contractors Association of

4-28     Texas shall be an education provider and shall be the approval

4-29     agent of continuing education credits in these programs.

4-30     Participation in the programs is mandatory.  Each licensee shall be

4-31     required to complete eight hours of continuing education per

4-32     license year.

4-33           SECTION 10.  LICENSE BY RECIPROCITY.  The commissioner may

4-34     waive any license requirement for an applicant or for the

4-35     qualifying party of an applicant with a valid license from another

4-36     state with which this state has a reciprocity agreement.

4-37           SECTION 11.  TEMPORARY LICENSE.  (a)  In the event the

4-38     qualifying party becomes incapacitated and unable to serve in the

4-39     normal capacity of principal of a company or is no longer available

4-40     due to the dissolution of a partnership or corporation, a temporary

4-41     license may be issued to another principal of the company, who then

4-42     becomes the qualifying party for a period extending 30 days beyond

4-43     the date of the next examination, not to exceed six months.  The

4-44     temporary license is not renewable, but a second temporary license

4-45     may be issued if the company's qualifying party becomes unavailable

4-46     in circumstances that make the company again eligible to receive a

4-47     temporary license.  The temporary license shall be of the same

4-48     class and endorsement as the license being replaced.

4-49           (b)  The commissioner may issue a temporary license under the

4-50     conditions provided by Subsection (a) of this section to an

4-51     applicant who applies to the commissioner on a form prescribed by

4-52     the commissioner and pays the required fees.

4-53           SECTION 12.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.

4-54     (a)  A violation of this Act or a rule adopted under this Act is a

4-55     ground for the denial, suspension, or revocation of a license

4-56     issued under this Act as well as a ground for the imposition of

4-57     administrative penalties as provided by Article 9100, Revised

4-58     Statutes.  The failure to provide proper installation consistent

4-59     with the manufacturer's specifications or consistent with commonly

4-60     accepted roofing practices, proper service, and mechanical

4-61     integrity under this Act constitutes a violation of this Act.  An

4-62     intentional or knowing misrepresentation of necessary services,

4-63     services to be provided, or services that have been provided

4-64     constitutes a violation of this Act and a ground for the suspension

4-65     or revocation of a license issued under this Act.

4-66           (b)  Proceedings for the denial, suspension, or revocation of

4-67     a license and appeals from those proceedings are governed by

4-68     Chapter 2001, Government Code. The imposition of administrative

4-69     penalties is governed by Article 9100, Revised Statutes.

 5-1           SECTION 13.  CONSUMER COMPLAINT INVESTIGATION.  (a)  The

 5-2     commissioner shall prepare information of consumer interest

 5-3     describing the functions performed by the commissioner under this

 5-4     Act and the rights of consumers as affected by this Act.  The

 5-5     information must describe the procedure by which a consumer

 5-6     complaint is filed with and resolved by the commissioner.  The

 5-7     commissioner shall make the information available to the general

 5-8     public.

 5-9           (b)  The commissioner shall investigate consumer complaints

5-10     filed with the commissioner.  If the commissioner determines after

5-11     investigation that a licensee has violated this Act or a rule

5-12     adopted under this Act, the commissioner may take appropriate

5-13     action under Section 12 of this Act.

5-14           SECTION 14.  EXEMPTIONS.  (a)  This Act does not apply:

5-15                 (1)  to a person who performs roofing contracting on a

5-16     dwelling owned by the person and used as the person's residence;

5-17                 (2)  to a person or firm that is registered as a

5-18     manufacturer, retailer, or installer and regulated pursuant to the

5-19     Texas Manufactured Housing Standards Act (Article 5221f, Vernon's

5-20     Texas Civil Statutes) and that engages in roofing contracting for

5-21     manufactured homes in the installation of manufactured homes or in

5-22     providing retailer or manufacturer warranty services free of

5-23     charge;

5-24                 (3)  to new residential construction of single-family

5-25     homes, duplexes, or quadplexes;

5-26                 (4)  to a person who performs roofing contracting if

5-27     (i) the person is a maintenance person or maintenance engineer who

5-28     is a regular bona fide employee of the property owner, the property

5-29     lessee, or the management company managing the property where the

5-30     roofing contracting work is being performed, (ii) the work is

5-31     performed in connection with the business in which the person is

5-32     employed, and (iii) the person and the person's employee referred

5-33     to in (i) above do not engage in the occupation of roofing

5-34     contracting for the general public;

5-35                 (5)  to a person who performs roofing contracting on a

5-36     dwelling owned by a member of the person's family; or

5-37                 (6)  to a person who performs roofing contracting that

5-38     is not a license holder under this Act but who receives a signed

5-39     disclosure statement from a homeowner that states explicitly that

5-40     the homeowner understands that the person who is performing roofing

5-41     contracting on the homeowner's dwelling is not a license holder

5-42     under this Act.

5-43           (b)  This Act shall in no way restrict the practice of

5-44     architecture or engineering by persons duly licensed in Texas to

5-45     practice these professions.

5-46           SECTION 15.  ENFORCEMENT OF CONTRACTS.  (a)  A person who

5-47     performs roofing contracting without holding the appropriate

5-48     license under this Act may not collect a fee or otherwise enforce a

5-49     contract for the services performed unless the person performing

5-50     the roofing contracting is subject to the exemptions as outlined in

5-51     Section 14 of this Act.  To enforce a contract for the performance

5-52     of roofing contracting, the person performing the services must

5-53     present proof that the person or the person's company held a

5-54     license under this Act at the time the contract was signed and the

5-55     work is performed or must present a signed disclosure statement

5-56     from the homeowner as prescribed by Subdivision (6), Subsection

5-57     (a), Section 14 of this Act.

5-58           (b)  The commissioner shall adopt rules relating to the

5-59     manner in which proof may be presented under this section.

5-60           SECTION 16.  OFFENSE; PENALTY.  Except as provided in Section

5-61     17 of this Act, a person commits an offense if the person is a

5-62     qualifying party and knowingly or intentionally engages in roofing

5-63     contracting without a license issued under this Act.  An offense

5-64     under this section is a Class B misdemeanor.

5-65           SECTION 17.  MUNICIPAL REGULATION.  A municipality may by

5-66     ordinance adopt and enforce standards for roofing contractors that

5-67     are consistent with the standards established under this Act.  A

5-68     municipality may not impose a licensing or registration fee on a

5-69     roofing contractor licensed under this Act.  The municipality may

 6-1     report a violation of this Act to the commission.  If the

 6-2     municipality elects to report the violation, it shall do so not

 6-3     later than the 10th day after the date on which it discovers the

 6-4     violation of this Act.  Conviction of an offense under the

 6-5     municipal ordinance is a ground for the denial, suspension, or

 6-6     revocation of a license issued under this Act.

 6-7           SECTION 18.  EXEMPTION FROM EXAMINATION FOR CERTIFIED

 6-8     CONTRACTORS.  (a)  A person who is a certified roofing contractor

 6-9     in good standing as tested and approved by the Roofing Contractors

6-10     Association of Texas on the effective date of this Act is entitled

6-11     or, if the person is a qualifying party of a company, the person's

6-12     company is entitled to receive a license without examination if the

6-13     contractor applies to the commissioner for the license not later

6-14     than September 1, 1998, and:

6-15                 (1)  registers with the commission and pays the

6-16     required licensing fee;

6-17                 (2)  shows evidence of insurance coverage required

6-18     under Section 8 of this Act; and

6-19                 (3)  submits a copy of the contractor's certification

6-20     that has been attested to by the president and the executive

6-21     director of the Roofing Contractors Association of Texas.

6-22           (b)  The class of a license issued under this section shall

6-23     be based on the classification of certification that is currently

6-24     held by the contractor and shall correspond as follows:

6-25                 (1)  a certified commercial and residential roofing

6-26     contractor shall receive a Class I license;

6-27                 (2)  a certified commercial roofing contractor shall

6-28     receive a Class II license; and

6-29                 (3)  a certified residential roofing contractor shall

6-30     receive a Class III license.

6-31           (c)  A roofing contractor who is issued a license under this

6-32     section is subject to all other provisions of this Act, including

6-33     provisions for the renewal of the roofing contractor license.

6-34           SECTION 19.  TERMS OF INITIAL BOARD MEMBERS.  In making the

6-35     initial appointments to the advisory board, the commissioner shall

6-36     designate two members for a term expiring on February 1, 1999, two

6-37     members for a term expiring on February 1, 2001, and two members

6-38     for a term expiring on February 1, 2003.

6-39           SECTION 20.  EFFECTIVE DATE.  (a)  Except as provided by

6-40     Subsection (b) of this section, this Act takes effect September 1,

6-41     1997.

6-42           (b)  Sections 5 and 16 of this Act take effect September 1,

6-43     1998.

6-44           SECTION 21.  EMERGENCY.  The importance of this legislation

6-45     and the crowded condition of the calendars in both houses create an

6-46     emergency and an imperative public necessity that the

6-47     constitutional rule requiring bills to be read on three several

6-48     days in each house be suspended, and this rule is hereby suspended.

6-49                                  * * * * *