81R8958 YDB-D
  By: Davis of Harris H.B. No. 1854
  relating to the registration of roofing contractors; providing
         SECTION 1.  Title 8, Occupations Code, is amended by adding
  Subchapter 1306 to read as follows:
         Sec. 1306.001.  DEFINITIONS. In this chapter:
               (1)  "Certificate" means a certificate of registration
  issued under this chapter.
               (2)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (3)  "Department" means the Texas Department of
  Licensing and Regulation.
               (4)  "Roofing contracting" means performing or
  offering to perform the installation, construction, maintenance,
  service, repair, alteration, or modification of a roofing product
  or equipment in roofs.
               (5)  "Roofing contractor" means a person who performs
  roofing contracting for compensation.
         Sec. 1306.002.  EXEMPTIONS. (a) This chapter does not apply
  to a person while the person performs roofing contracting:
               (1)  on new residential construction of a single-family
  home, duplex, triplex, or fourplex;
               (2)  under the direct supervision of an individual
  certificate holder;
               (3)  on property owned by the person and used as the
  person's residence; or
               (4)  on a dwelling owned by a member of the person's
         (b)  This chapter does not apply to a person who holds an
  occupational license or other analogous authority issued by this
  state and who performs roofing contracting work incidental to the
  performance of work within the course and scope of the person's
  license or other authority.
         (c)  This chapter does not apply to roofing contracting
  performed for compensation that does not exceed a total amount of
  [Sections 1306.003-1306.050 reserved for expansion]
         Sec. 1306.051.  ENFORCEMENT; RULES. (a) The commission
  shall enforce this chapter and may adopt rules relating to
  enforcement requirements.
         (b)  The commission may contract with another state agency or
  with a political subdivision of this state for the enforcement of
  this chapter and the rules adopted by the commission under this
         Sec. 1306.052.  FEES. The commission by rule shall set the
  fees assessed to implement this chapter, including application
  fees, registration fees, and renewal fees. The commission shall
  set the fees in amounts reasonable and necessary to cover the costs
  of implementing this chapter.
  [Sections 1306.053-1306.100 reserved for expansion]
         Sec. 1306.101.  CERTIFICATE REQUIRED. (a) Unless exempted
  from registration under Section 1306.002, a person may not perform
  roofing contracting unless the person holds a certificate issued
  under this chapter.
         (b)  A certificate is valid throughout this state, and the
  holder is not required to hold a municipal license or certificate to
  practice roofing contracting in any municipality in this state.
         Sec. 1306.102.  APPLICATION; ELIGIBILITY. (a) A
  certificate application must be made on a form prescribed by the
         (b)  To be eligible for a certificate, an individual
  applicant must:
               (1)  be at least 18 years of age; and
               (2)  meet any experience requirements prescribed by the
  commission by rule.
         (c)  An individual's application must be accompanied by:
               (1)  proof of age of the applicant;
               (2)  a statement of the applicant's practical
  experience, including the number of years of experience in roofing;
               (3)  the applicant's:
                     (A)  state photo identification number, if any;
                     (B)  sales tax number;
                     (C)  Internal Revenue Service employer
  identification number;
                     (D)  telephone number and facsimile number;
                     (E)  e-mail address; and
                     (F)  mailing address and, if different from the
  mailing address, the address where the applicant's business is
  physically located; and
               (4)  the application fee.
         (d)  A business entity may be registered if the business
  entity is owned by or employs an individual certificate holder who
  will actively engage in roofing contracting on behalf of the
  applicant. An application under this subsection must be
  accompanied by:
               (1)  the applicant's:
                     (A)  state identification number, if any;
                     (B)  sales tax number;
                     (C)  Internal Revenue Service employer
  identification number;
                     (D)  telephone number and facsimile number;
                     (E)  e-mail address; and
                     (F)  mailing address and, if different from the
  mailing address, the address where the applicant's business is
  physically located;
               (2)  the form of the business entity and name of each
  owner of the applicant;
               (3)  the name, address, e-mail address, telephone
  number, and facsimile number of the individual certificate holder
  who owns or is employed by the business entity; and
               (4)  the application fee.
         (e)  The business name used by an applicant under this
  section must be the same on all documents included with the
         (f)  Each applicant must submit the evidence of insurance
  coverage required by this chapter.
         Sec. 1306.103.  INSURANCE REQUIREMENTS. (a) A certificate
  holder shall maintain comprehensive general liability insurance
  coverage as provided by this section.
         (b)  An applicant for a certificate must provide as part of
  the application:
               (1)  a certificate of insurance or other documentary
  evidence of a general liability insurance policy issued by a
  property and casualty insurer authorized by the Texas Department of
  Insurance to engage in the business of insurance in this state,
  countersigned by an insurance agent licensed in this state; or
               (2)  a certificate of insurance for surplus lines
  coverage obtained under Chapter 981, Insurance Code, through a
  licensed surplus lines agent resident in this state.
         (c)  The general liability insurance policy must be
  conditioned to pay on behalf of the certificate holder damages that
  the certificate holder becomes legally obligated to pay because of
  bodily injury, property damage, or personal injury caused by an
  event involving the principal, or an officer, agent, or employee of
  the principal, in the conduct of any activity or service for which
  the certificate holder is registered under this chapter.
         (d)  The insurance policy must:
               (1)  include products liability and completed
  operations coverage; and
               (2)  contain minimum limits of:
                     (A)  $500,000 for each occurrence for death or
  bodily injury; and
                     (B)  $500,000 for each occurrence for property
         (e)  On renewal of the certificate, each certificate holder
  shall provide to the department a document issued by the person's
  insurer that states the following:
               (1)  the name of the insurer;
               (2)  the policy number;
               (3)  the limits of coverage under the policy;
               (4)  the name of each insured under the policy;
               (5)  the policy term;
               (6)  any cancellation clause applicable to the
  coverage; and
               (7)  a signature from the insurer or an agent for that
         (f)  An insurance policy used to satisfy the requirements of
  this section must provide that the insurer must send notice to the
  department in the manner prescribed by the commission not later
  than the 10th day after the date on which:
               (1)  the insurance policy is canceled before the policy
  expiration date; or
               (2)  the minimum coverage limits required by this
  section are reduced.
  NUMBER. (a) The commission shall issue a certificate to a person
  who qualifies for a certificate under this chapter.
         (b)  Each roofing contractor who holds a certificate under
  this chapter shall display the certificate number on each contract,
  letterhead, advertisement, or motor vehicle used by the certificate
  holder in providing roofing contracting services in this state.
         Sec. 1306.105.  TERM. A certificate is valid for one year
  from the date of issuance.
         Sec. 1306.106.  RENEWAL; CONTINUING EDUCATION. (a) To
  renew a certificate, a certificate holder must complete at least
  eight hours of continuing education annually.
         (b)  The commission shall recognize, prepare, or administer
  continuing education programs for certificate holders.
  [Sections 1306.107-1306.150 reserved for expansion]
  CERTIFICATE. (a) A violation of this chapter, a rule adopted under
  this chapter, or an order issued under this chapter is a ground for
  the denial, suspension, or revocation of a certificate and a ground
  for the imposition of an administrative penalty under Subchapter F,
  Chapter 51.
         (b)  A conviction of a crime an essential element of which is
  misstatement, fraud, or dishonesty, or of a felony, is a ground for
  denial, suspension, or revocation of a certificate.
         (c)  A proceeding for the denial, suspension, or revocation
  of a certificate or an appeal from that proceeding is subject to
  Chapter 2001, Government Code.
         (d)  The department may reissue a certificate that has been
  revoked under this section if the certificate holder applies in
  writing to the commission and shows good cause to justify
         Sec. 1306.152.  ENFORCEMENT OF CONTRACTS. (a) A person
  required to register under this chapter who performs roofing
  contracting without holding a certificate issued under this chapter
  may not collect a fee or otherwise enforce a contract for the
  roofing service performed. To enforce a contract for the
  performance of roofing contracting, the person performing the
  service must present proof that the person held a certificate at the
  time the contract was signed and the work was performed.
         (b)  The commission shall adopt rules relating to the manner
  in which proof may be presented under this section.
         Sec. 1306.153.  OFFENSE; CRIMINAL PENALTY. (a) A person
  commits an offense if the person engages in roofing contracting
  without holding a certificate required under this chapter.
         (b)  An offense under this section is a Class C misdemeanor.
         SECTION 2.  The Texas Commission of Licensing and Regulation
  shall adopt rules as required by Chapter 1306, Occupations Code, as
  added by this Act, not later than January 1, 2010.
         SECTION 3.  Notwithstanding Section 1306.101, Occupations
  Code, as added by this Act, a person is not required to hold a
  certificate of registration to engage in roofing contracting for
  compensation in this state until March 1, 2010.
         SECTION 4.  (a)  Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2009.
         (b)  Section 1306.101, Occupations Code, and Subchapter D,
  Chapter 106, Occupations Code, take effect March 1, 2010.