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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of foundation repair contractors; |
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providing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 6, Occupations Code, is |
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amended by adding Chapter 1003 to read as follows: |
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CHAPTER 1003. FOUNDATION REPAIR CONTRACTORS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1003.001. SHORT TITLE. This chapter may be cited as |
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the Foundation Repair Contractors Act. |
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Sec. 1003.002. DEFINITIONS. In this chapter: |
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(1) "Advisory board" means the Foundation Repair |
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Contractors Advisory Board. |
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(2) "Chief administrator" means an individual |
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performing duties under Section 1003.106. |
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(3) "Commission" means the Texas Commission of |
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Licensing and Regulation. |
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(4) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(5) "Executive director" means the executive director |
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of the department. |
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(6) "Foundation" means that portion of a structure |
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that serves the function of: |
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(A) supporting an overlying structure; |
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(B) providing a base for an overlying structure; |
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or |
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(C) transmitting loads from an overlying |
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structure to the underlying soils. |
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(7) "Foundation repair contracting" means performing |
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or offering to perform the design, installation, or construction |
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functions in connection with the repair or maintenance of a |
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foundation. |
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(8) "Foundation repair contractor" means an |
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individual or business engaged in foundation repair contracting for |
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the public. |
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(9) "Manager" means an individual who oversees |
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activities related to foundation repair contracting, including |
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foundation installation, foundation lifting, customer service, |
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sales, foundation design, or general business administration. |
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(10) "Mobile structure" means a structure that has |
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wheels attached for the purpose of moving the structure from one |
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location to another. |
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Sec. 1003.003. EXEMPTIONS. (a) This chapter does not apply |
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to: |
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(1) an individual homeowner who, without paid help, |
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repairs the foundation of the individual's residence; |
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(2) an individual licensed as an engineer under |
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Chapter 1001 who engages in foundation repair contracting in |
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connection with the business in which the individual is employed |
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but who does not engage in that work for the public; or |
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(3) an individual who engages in foundation repair |
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contracting for a mobile structure. |
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(b) An individual is not required to hold a license under |
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this chapter if the individual is engaged in foundation repair |
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under the supervision of a license holder under this chapter. |
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Sec. 1003.004. APPLICATION OF MUNICIPAL ORDINANCES. |
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Foundation repair contracting by an individual who is exempt under |
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this chapter remains subject to a permit, inspection, or approval |
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requirement established by a municipal ordinance. |
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[Sections 1003.005-1003.050 reserved for expansion] |
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SUBCHAPTER B. FOUNDATION REPAIR CONTRACTORS ADVISORY BOARD |
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Sec. 1003.051. ADVISORY BOARD MEMBERSHIP. The Foundation |
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Repair Contractors Advisory Board consists of: |
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(1) the executive director; |
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(2) the chief administrator; and |
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(3) seven members appointed by the presiding officer |
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of the commission, with the commission's approval. |
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Sec. 1003.052. APPOINTED MEMBERS. (a) Each appointed |
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advisory board member, other than the public member, must be |
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experienced in the design, installation, construction, |
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maintenance, service, repair, or modification of a foundation. |
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(b) The appointed members shall be appointed as follows: |
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(1) one member who is an official of a municipality; |
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(2) one member who is an engineer licensed by this |
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state; |
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(3) four members who are full-time licensed foundation |
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repair contractors, of whom two must be members of a statewide |
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foundation repair organization; and |
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(4) one member who represents the public and is not |
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affiliated with any foundation repair contracting company. |
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Sec. 1003.053. EX OFFICIO MEMBERS. The executive director |
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and the chief administrator shall serve as ex officio members. The |
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executive director and the chief administrator are nonvoting |
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members of the advisory board. |
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Sec. 1003.054. ADVISORY BOARD DUTIES. The advisory board |
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shall provide advice and recommendations to the department and |
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commission on technical matters relevant to the administration and |
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enforcement of this chapter, including examination content, |
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licensing standards, applicable fees, rules, and continuing |
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education requirements. |
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Sec. 1003.055. TERMS; VACANCY. (a) Appointed advisory |
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board members shall serve staggered six-year terms. The terms of |
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two or three appointed members expire on February 1 of each |
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odd-numbered year. |
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(b) If a vacancy occurs during an appointed member's term, |
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the presiding officer of the commission, with the commission's |
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approval, shall fill the vacancy for the remainder of the unexpired |
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term with an individual having the same qualifications as the |
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predecessor. |
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Sec. 1003.056. PRESIDING OFFICER. The presiding officer of |
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the commission, with the commission's approval, shall designate one |
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member of the advisory board to serve as presiding officer of the |
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board for a two-year term. |
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Sec. 1003.057. COMPENSATION; REIMBURSEMENT. An advisory |
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board member serves without compensation but is entitled to |
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reimbursement for actual and necessary expenses incurred in |
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performing functions as an advisory board member, as provided by |
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the General Appropriations Act. |
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Sec. 1003.058. MEETINGS. (a) The advisory board shall meet |
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at least once every six months and may meet at other times at the |
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call of the presiding officer of the board. |
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(b) The advisory board shall meet in this state at a place |
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designated by the board. |
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[Sections 1003.059-1003.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 1003.101. GENERAL DUTIES. The commission shall |
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maintain a record of the commission's proceedings under this |
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chapter. |
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Sec. 1003.102. RULES. (a) The commission shall adopt rules |
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as necessary to implement this chapter. |
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(b) The rules must establish standards for the practice of |
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foundation repair at least as stringent as the standards provided |
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by: |
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(1) the Foundation Repair Association; or |
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(2) the Texas Section of the American Society of Civil |
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Engineers Guidelines for the Evaluation and Repair of Residential |
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Foundations, Version 2, adopted May 1, 2009. |
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Sec. 1003.103. INSURANCE REQUIREMENTS. (a) The commission |
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shall establish insurance requirements for a license holder under |
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this chapter. |
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(b) The commission may waive the insurance requirements for |
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a license holder who does not engage in foundation repair |
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contracting for the public. |
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Sec. 1003.104. CONTRACTS FOR ENFORCEMENT. The department |
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may contract with another state agency or political subdivision of |
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the state to enforce this chapter and rules adopted under this |
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chapter. |
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Sec. 1003.105. PERSONNEL. The department may employ |
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personnel necessary to administer this chapter. |
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Sec. 1003.106. CHIEF ADMINISTRATOR. (a) The chief |
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administrator is responsible for the administration of this chapter |
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under the direction of the department. The chief administrator |
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shall perform duties as prescribed by the department. |
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(b) The chief administrator is a full-time employee of the |
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department. |
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Sec. 1003.107. DIRECTORY OF LICENSE HOLDERS. (a) The |
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department shall maintain a directory of license holders and make |
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the directory available to the public. |
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(b) The department may sell the directory for a reasonable |
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fee set by the commission. |
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[Sections 1003.108-1003.150 reserved for expansion] |
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SUBCHAPTER D. LICENSE REQUIREMENTS |
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Sec. 1003.151. LICENSE REQUIRED. (a) An individual may not |
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engage in foundation repair contracting unless the individual holds |
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a license under this chapter. |
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(b) An individual who holds a license issued under this |
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chapter is not required to hold a license issued by a municipality |
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to engage in foundation repair contracting in the municipality. |
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Sec. 1003.152. LICENSE CLASSIFICATIONS. The department |
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shall issue master, journeyman, tradesman apprentice, and |
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apprentice foundation repair contractor licenses. |
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Sec. 1003.153. MASTER LICENSE. (a) A master license |
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entitles the license holder to engage in foundation repair |
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contracting. |
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(b) An applicant for a master license under this chapter |
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must: |
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(1) be at least 21 years of age; |
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(2) have at least 60 months of documented, practical |
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experience working in foundation repair contracting under the |
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supervision of a master license holder during the preceding seven |
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years; |
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(3) have a high school diploma or its equivalent; and |
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(4) pass an examination administered by the |
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department. |
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Sec. 1003.154. JOURNEYMAN LICENSE. (a) A journeyman |
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license entitles the license holder to engage in the design and sale |
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of foundation repair and of lifting, lowering, and adjusting |
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buildings under the supervision of a master license holder. |
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(b) An applicant for a journeyman license under this chapter |
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must: |
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(1) be at least 21 years of age; |
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(2) have at least 24 months of documented, practical |
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experience working in foundation repair contracting under the |
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supervision of a master license holder during the preceding five |
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years; |
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(3) have a high school diploma or its equivalent; and |
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(4) pass an examination administered by the |
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department. |
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Sec. 1003.155. TRADESMAN APPRENTICE LICENSE. (a) A |
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tradesman apprentice license entitles the license holder to engage |
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in providing an estimate or design for a foundation repair or for |
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the lifting, lowering, or adjusting of a building if the estimate or |
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design is reviewed and approved in writing by a master license |
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holder not later than the 10th business day after the date the |
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estimate or design is presented to a member of the public. |
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(b) An applicant for a tradesman apprentice license under |
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this chapter must: |
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(1) be at least 21 years of age; |
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(2) have a high school diploma or its equivalent; and |
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(3) pass an examination administered by the |
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department. |
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Sec. 1003.156. APPRENTICE LICENSE. (a) An apprentice |
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license entitles the license holder to engage in the repair of a |
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foundation under the supervision of a master license holder. |
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(b) An applicant for an apprentice license under this |
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chapter must be at least 18 years of age. |
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Sec. 1003.157. PRACTICAL EXPERIENCE. For purposes of |
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determining an applicant's practical experience under this |
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subchapter, a four-year degree in engineering is equivalent to two |
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years of practical experience if: |
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(1) the degree is from an institution of higher |
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education; and |
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(2) the institution's program is approved by the Texas |
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Board of Professional Engineers for the purpose of licensing |
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engineers. |
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Sec. 1003.158. APPLICATION. (a) An applicant for a license |
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must submit an application on the form prescribed by the |
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department. |
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(b) The application must specify the class of license for |
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which the applicant is applying. |
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(c) The application must be accompanied by: |
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(1) a statement containing evidence satisfactory to |
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the department of the applicant's required practical experience; |
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(2) the examination fee; and |
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(3) proof of insurance as required by this chapter or |
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commission rule. |
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(d) The department may conduct a criminal background check |
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on an applicant. |
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Sec. 1003.159. EXAMINATIONS. (a) The department shall |
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prescribe a separate examination for each class of license, except |
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that an examination is not required for an apprentice license. |
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(b) The department shall prescribe the method and content of |
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an examination administered under this chapter and shall contract |
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with a statewide association of foundation repair contractors for |
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the examination. |
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(c) The examination: |
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(1) must be offered on a monthly basis or more |
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frequently as determined by the executive director; |
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(2) must be offered at locations throughout the state |
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as determined by the executive director; and |
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(3) may be offered online as determined by the |
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executive director. |
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Sec. 1003.160. ISSUANCE AND TERM OF LICENSE. (a) The |
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department shall issue a foundation repair contractor license to an |
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applicant who: |
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(1) provides evidence of insurance coverage required |
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by the commission; |
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(2) passes the applicable examination; |
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(3) passes a criminal background check; |
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(4) pays the required fees; and |
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(5) meets the requirements of this chapter. |
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(b) Not later than the 30th day after the date an applicant |
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fulfills the license requirements, the department shall issue a |
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license to the applicant. |
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(c) A license issued under this chapter expires at the end |
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of the license period set by the commission. |
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Sec. 1003.161. RENEWAL OF LICENSE. To renew a license, the |
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license holder must: |
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(1) submit a renewal application in the form |
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prescribed by the executive director; |
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(2) pay the required fee; |
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(3) show evidence of insurance required under this |
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chapter or commission rule; and |
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(4) show evidence of having completed the continuing |
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education requirements established by the commission. |
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Sec. 1003.162. FORM OF LICENSE. The executive director |
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shall prescribe the design of an original license and a renewal |
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license. |
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Sec. 1003.163. DISPLAY OF LICENSE. The commission, with |
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the advice of the advisory board, shall adopt rules relating to the |
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use, display, and advertisement of a license. |
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Sec. 1003.164. NOTICE TO MUNICIPALITIES. (a) An |
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individual who obtains a license under this chapter shall provide a |
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notice to the municipal authority that enforces foundation repair |
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contracting regulations in each municipality in which the |
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individual engages in foundation repair contracting. |
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(b) The notice must be in the form required by the |
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municipality and inform the municipality that the individual has |
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obtained a license under this chapter. |
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(c) A municipality may charge a fee to an individual who |
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provides the notice required by this section. The municipality |
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shall set the fee in an amount reasonable and necessary to |
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administer this section. |
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Sec. 1003.165. REQUIREMENTS FOR FOUNDATION REPAIR |
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CONTRACTING COMPANY. (a) A foundation repair contracting company |
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shall employ at least one full-time license holder who holds a |
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master license. |
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(b) A foundation repair contracting company that does not |
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employ a license holder as required by Subsection (a) at the time a |
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contract for foundation repair contracting services is signed and |
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at the time the services are performed may not collect a fee or |
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otherwise enforce the contract. |
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Sec. 1003.166. PROHIBITED PRACTICES BY LICENSE HOLDER. (a) |
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A license holder may not perform or offer or attempt to perform an |
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act, service, or function that is: |
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(1) defined as the practice of engineering under |
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Chapter 1001, unless the individual holds a license under that |
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chapter; |
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(2) defined as the practice of architecture under |
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Chapter 1051, unless the individual holds a license under that |
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chapter; |
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(3) regulated under Chapter 113, Natural Resources |
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Code, unless the individual holds a license or is exempt by rule |
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under that chapter; or |
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(4) defined as plumbing under Chapter 1301, unless the |
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individual holds a license under that chapter. |
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(b) A license holder may not: |
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(1) fail to provide services for which payment has |
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been made or fail to honor the terms of a contract in the absence of |
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a good faith dispute; |
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(2) intentionally or knowingly misrepresent a |
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necessary service, service to be provided, or service that has been |
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provided; or |
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(3) make a fraudulent promise to induce an individual |
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to contract for a service. |
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[Sections 1003.167-1003.200 reserved for expansion] |
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SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY |
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Sec. 1003.201. DISCIPLINARY ACTION. The commission may |
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impose an administrative penalty or take disciplinary action under |
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Chapter 51 if a license holder violates this chapter or a rule |
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adopted under this chapter. |
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Sec. 1003.202. CRIMINAL PENALTY. (a) A person commits an |
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offense if the person knowingly engages in foundation repair |
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contracting without holding a license under this chapter. |
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(b) An offense under this section is a Class C misdemeanor. |
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[Sections 1003.203-1003.250 reserved for expansion] |
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SUBCHAPTER F. INITIAL LICENSES |
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Sec. 1003.251. INITIAL LICENSING. (a) The department |
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shall waive the requirements of Section 1003.153(b) for a master |
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license for an applicant who has been an owner or manager of a |
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foundation repair contracting company continuously for at least 10 |
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years before March 1, 2012. |
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(b) The department shall waive the requirements of Section |
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1003.154(b) for a journeyman license for an applicant who has |
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worked continuously for a foundation repair contractor as a |
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salesman, estimator, or manager for at least four years before |
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March 1, 2012. |
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Sec. 1003.252. RENEWAL OF LICENSE. To qualify to renew an |
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initial license issued under this subchapter, the license holder |
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must comply with the requirements of Section 1003.161. |
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Sec. 1003.253. EXPIRATION OF SUBCHAPTER. This subchapter |
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expires June 1, 2013. |
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SECTION 2. (a) The Texas Commission of Licensing and |
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Regulation shall appoint the members of the Foundation Repair |
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Contractors Advisory Board as soon as practicable after the |
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effective date of this Act. |
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(b) The members of the Foundation Repair Contractors |
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Advisory Board appointed under Chapter 1003, Occupations Code, as |
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added by this Act, shall draw lots to determine which terms of two |
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members expire February 1, 2013, which terms of two members expire |
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February 1, 2015, and which terms of three members expire February |
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1, 2017. |
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(c) The changes in law made by Section 1003.165, Occupations |
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Code, as added by this Act, apply only to a contract for foundation |
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repair entered into or renewed on or after March 1, 2012. A |
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contract for foundation repair entered into or renewed before March |
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1, 2012, is governed by the law as it existed on the date the |
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contract was entered into, and the former law is continued in effect |
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for that purpose. |
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SECTION 3. (a) The Texas Commission of Licensing and |
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Regulation shall adopt rules to implement Chapter 1003, Occupations |
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Code, as added by this Act, not later than January 1, 2012. |
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(b) A person is not required to obtain a license to engage in |
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foundation repair contracting under Chapter 1003, Occupations |
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Code, as added by this Act, before March 1, 2012. |
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SECTION 4. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2011. |
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(b) Sections 1003.151 and 1003.202, Occupations Code, as |
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added by this Act, take effect March 1, 2012. |