By Giddings H.B. No. 3759 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the registration of certain persons who provide or 1-3 agree to provide residential carpet cleaning services; providing 1-4 penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 ARTICLE 1. GENERAL PROVISIONS 1-7 SECTION 1.01. DEFINITIONS. In this Act: 1-8 (1) "Consumer" means an individual who is solicited to 1-9 purchase or who purchases the services of a residential carpet 1-10 cleaner who is required to register under this Act. 1-11 (2) "Person" means an individual, corporation, 1-12 organization, business trust, estate, trust, partnership, 1-13 association, or any other private legal entity. 1-14 (3) "Residential carpet cleaner" means a person who 1-15 provides or agrees to provide carpet cleaning services to a 1-16 one-to-four-family dwelling used or occupied wholly or partly as 1-17 the residence of one or more persons. 1-18 SECTION 1.02. EXEMPTIONS. The registration requirements of 1-19 this Act do not apply to a: 1-20 (1) maid or other person who performs domestic or 1-21 household services; or 2-1 (2) person who engages in or provides carpet cleaning 2-2 services only as an incidental part of the person's normal 2-3 business. 2-4 SECTION 1.03. WAIVER VOID. A waiver of a provision of this 2-5 Act by a consumer is void. 2-6 ARTICLE 2. REGISTRATION 2-7 SECTION 2.01. REGISTRATION REQUIREMENT. A person may not 2-8 engage in business as a residential carpet cleaner in this state 2-9 unless the person holds a certificate of registration issued under 2-10 this Act. 2-11 SECTION 2.02. REGISTRATION STATEMENT. (a) A person must 2-12 file a registration statement with the secretary of state before 2-13 engaging in business as a residential carpet cleaner in this state. 2-14 The registration statement must contain: 2-15 (1) the name, street address, and telephone number of 2-16 the cleaner; 2-17 (2) the name under which the cleaner is doing or 2-18 intends to do business, if different from the cleaner's name; 2-19 (3) if the cleaner's business is incorporated: 2-20 (A) the cleaner's business name registered with 2-21 the secretary of state; 2-22 (B) the location of the cleaner's registered 2-23 business office; and 2-24 (C) the name and address of each person who 2-25 directly or indirectly owns or controls 10 percent or more of the 3-1 outstanding shares of stock in the cleaner's business; 3-2 (4) each registered location for which a certificate 3-3 of registration will be issued and the cleaner's principal business 3-4 location; 3-5 (5) any assumed name under which the cleaner is doing 3-6 business; and 3-7 (6) a complete disclosure of any litigation relating 3-8 to carpet cleaning brought against the cleaner or an owner, 3-9 officer, or director of the cleaner that: 3-10 (A) was completed within three years before the 3-11 date on which the statement is filed; or 3-12 (B) is pending on the date of filing. 3-13 (b) Each residential carpet cleaner shall maintain a copy of 3-14 the registration statement in the cleaner's business records. 3-15 (c) The residential carpet cleaner shall update the 3-16 registration statement when a material change occurs in the 3-17 information on file. 3-18 (d) The residential carpet cleaner shall notify the 3-19 secretary of state if a legal action relating to the cleaner's 3-20 business is brought against the cleaner or an owner, officer, or 3-21 director of the cleaner. The notice must be given to the secretary 3-22 of state in writing not later than the 10th day after the date on 3-23 which the cleaner receives notice of the action. 3-24 SECTION 2.03. ISSUANCE OF CERTIFICATE OF REGISTRATION. The 3-25 secretary of state shall issue a certificate of registration to a 4-1 residential carpet cleaner that: 4-2 (1) files a completed registration statement; and 4-3 (2) pays the required registration fee. 4-4 SECTION 2.04. CERTIFICATE OF REGISTRATION NOT TRANSFERABLE. 4-5 A certificate of registration issued under this Act is not 4-6 transferable. 4-7 SECTION 2.05. TERM; RENEWAL. (a) A residential carpet 4-8 cleaner's certificate of registration expires on the first 4-9 anniversary of the date of issuance. 4-10 (b) A registrant may renew a certificate of registration 4-11 before the expiration date of the certificate by paying the renewal 4-12 fee and complying with other renewal requirements as prescribed by 4-13 rules of the secretary of state. The secretary of state shall 4-14 issue a renewal certificate to the registrant at the time of the 4-15 renewal. 4-16 (c) The secretary of state shall notify each registrant in 4-17 writing of the pending expiration not later than the 30th day 4-18 before the date on which the certificate of registration expires. 4-19 SECTION 2.06. POSTING OF CERTIFICATE AND OTHER INFORMATION. 4-20 (a) Each residential carpet cleaner shall post the certificate of 4-21 registration in a conspicuous place accessible to clients and 4-22 prospective clients in the cleaner's principal office. 4-23 (b) Each residential carpet cleaner registered under this 4-24 Act shall display in the cleaner's principal office a sign provided 4-25 by the secretary of state that contains: 5-1 (1) a statement that the cleaner is registered with 5-2 the secretary of state; 5-3 (2) the mailing address and telephone number of the 5-4 secretary of state; and 5-5 (3) a statement informing consumers that a complaint 5-6 against a cleaner registered under this Act may be directed to the 5-7 secretary of state. 5-8 SECTION 2.07. RECORDS. Each registrant shall maintain 5-9 records relating to the operation of the carpet cleaning business 5-10 as prescribed by rule of the secretary of state. 5-11 ARTICLE 3. PROHIBITIONS AND RESTRICTIONS 5-12 SECTION 3.01. REPRESENTATIVE. For purposes of this article, 5-13 a representative of a residential carpet cleaner includes a 5-14 salesperson, agent, or other representative of the cleaner. 5-15 SECTION 3.02. ADVERTISING SERVICES WITHOUT FILING 5-16 REGISTRATION STATEMENT. (a) A residential carpet cleaner or a 5-17 representative of the cleaner may not advertise the services of the 5-18 cleaner unless the cleaner has filed a registration statement 5-19 required by Article 2 of this Act. 5-20 (b) An advertisement for the services of a residential 5-21 carpet cleaner must contain the registration number of the 5-22 certificate issued under Article 2 of this Act. 5-23 (c) The secretary of state by rule shall adopt regulations 5-24 and establish standards relating to permissible forms of 5-25 advertising by a person registered under this Act. 6-1 SECTION 3.03. FRAUDULENT OR DECEPTIVE CONDUCT. A 6-2 residential carpet cleaner may not directly or indirectly engage in 6-3 a fraudulent or deceptive act, practice, or course of business 6-4 relating to the offer or sale of carpet cleaning services. 6-5 SECTION 3.04. CAUSING WAIVER PROHIBITED. A residential 6-6 carpet cleaner may not attempt to cause a consumer to waive a right 6-7 under this Act. 6-8 ARTICLE 4. POWERS AND DUTIES OF SECRETARY OF STATE; 6-9 ADMINISTRATIVE ENFORCEMENT 6-10 SECTION 4.01. ADMINISTRATIVE AND RULEMAKING AUTHORITY. (a) 6-11 The secretary of state shall administer this Act. 6-12 (b) The secretary of state shall adopt rules necessary for 6-13 the administration of this Act. 6-14 SECTION 4.02. FILING FEE. The secretary of state shall 6-15 charge each applicant for: 6-16 (1) a certificate of registration, a $100 fee; and 6-17 (2) renewal of a certificate, a $50 fee. 6-18 SECTION 4.03. DENIAL, SUSPENSION, OR REVOCATION OF 6-19 CERTIFICATE OF REGISTRATION. (a) The secretary of state may deny, 6-20 suspend, revoke, or reinstate a certificate of registration. 6-21 (b) The secretary of state by rule: 6-22 (1) may establish grounds for denial, suspension, 6-23 revocation, or reinstatement of a certificate of registration in 6-24 addition to those provided by this Act; and 6-25 (2) shall establish procedures for disciplinary 7-1 actions. 7-2 (c) It is a ground for the denial of a certificate of 7-3 registration, or the permanent revocation or suspension for a 7-4 definite period, after notice and hearing, of a residential carpet 7-5 cleaner's certificate of registration, that the person filing a 7-6 registration statement or the certificate holder: 7-7 (1) violated this Act; or 7-8 (2) provided false information on a registration 7-9 statement or other document filed with the secretary of state under 7-10 this Act. 7-11 (d) A proceeding relating to the suspension or revocation of 7-12 a certificate of registration issued under this Act is subject to 7-13 Chapter 2001, Government Code. 7-14 (e) A person whose certificate of registration has been 7-15 revoked under this section may not apply for a new certificate of 7-16 registration before the first anniversary of the date of the 7-17 revocation. 7-18 ARTICLE 5. EFFECTIVE DATE; EMERGENCY CLAUSE 7-19 SECTION 5.01. EFFECTIVE DATE. This Act takes effect 7-20 September 1, 1999. 7-21 SECTION 5.02. EMERGENCY. The importance of this legislation 7-22 and the crowded condition of the calendars in both houses create an 7-23 emergency and an imperative public necessity that the 7-24 constitutional rule requiring bills to be read on three several 7-25 days in each house be suspended, and this rule is hereby suspended.