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.