82R8562 JAM-F

By: Williams S.B. No. 1274

A BILL TO BE ENTITLED

AN ACT

relating to the registration of roofing contractors; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 8, Occupations Code, is amended by adding Chapter 1307 to read as follows:

CHAPTER 1307. ROOFING CONTRACTORS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1307.001. SHORT TITLE. This chapter may be cited as the Roofing Contractor Registration Act.

Sec. 1307.002. 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) "Executive director" means the executive director of the department.

(5) "Roofing contractor" means a person who performs roofing services for compensation.

(6) "Roofing services" means performing or offering to perform the installation, construction, maintenance, service, repair, alteration, or modification of a roofing product or equipment in roofs.

Sec. 1307.003. EXEMPTIONS. This chapter does not apply to:

(1) an actual owner of residential or farm property who physically performs or has employees perform roofing services on the owner's dwelling or on another structure located on the person's residential or farm property;

(2) an authorized employee or representative of the United States government, this state, or any county, municipality, or other political subdivision of this state;

(3) a person who furnishes any fabricated or finished product, material, or article of merchandise that is not incorporated into or attached to real property by the person; or

(4) an employee of a roofing contractor who holds a certificate issued under this chapter.

Sec. 1307.004. CONSTRUCTION OF CHAPTER. This chapter shall be construed to be in addition to any required licensure of persons in this state, and this chapter may not be construed as conflicting with or affecting the authority of any state or local agency, board, or department that administers or enforces any law or ordinance or that establishes, administers, or enforces a policy, rule, qualification, or standard for a trade or profession.

[Sections 1307.005-1307.050 reserved for expansion]

SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION

Sec. 1307.051. GENERAL POWERS AND DUTIES. The department, executive director, or commission, as appropriate, may take action as necessary to administer and enforce this chapter.

Sec. 1307.052. RULES. The commission shall adopt rules for registering roofing contractors and standards of conduct for registrants under this chapter.

Sec. 1307.053. FEES. The commission shall establish and collect reasonable and necessary fees in amounts sufficient to cover the costs of administering this chapter.

Sec. 1307.054. CRIMINAL HISTORY BACKGROUND CHECK. The department may obtain criminal history record information under Subchapter F, Chapter 411, Government Code, for an applicant for a certificate under this chapter.

Sec. 1307.055. VERIFICATION. On request, the department shall verify a roofing contractor registration number to a city, county, or other government enforcement official. The department shall establish a verification system for certificates maintained by the department.

[Sections 1307.056-1307.100 reserved for expansion]

SUBCHAPTER C. REGISTRATION REQUIREMENTS

Sec. 1307.101. REGISTRATION REQUIRED. (a) Except as provided by Section 1307.003, a person may not perform or offer to perform roofing services unless the person holds a certificate issued under this chapter.

(b) A certificate:

(1) is valid only with respect to the person or company named on the certificate; and

(2) authorizes the registrant to operate one roofing contractor business for each certificate.

Sec. 1307.102. APPLICATION; ELIGIBILITY. An applicant for a certificate under this chapter must:

(1) submit to the department a completed application on a form prescribed by the executive director;

(2) submit to the department any other information required by the executive director or by rule;

(3) demonstrate the applicant's honesty, trustworthiness, and integrity;

(4) submit sufficient information and an authorization for the department to obtain criminal history record information;

(5) submit proof of general liability insurance in an amount not less than $300,000;

(6) unless the applicant has elected not to obtain workers' compensation coverage, as provided by Subchapter A, Chapter 406, Labor Code, and provided notice under Section 406.004, Labor Code, submit proof that the applicant maintains workers' compensation coverage for the contractor's employees through an insurance company authorized by the Texas Department of Insurance to engage in the business of insurance in this state or through self-insurance; and

(7) pay any required application fee.

Sec. 1307.103. REGISTRATION RENEWAL. (a) A certificate issued under this chapter is valid for one year. The department may adopt a system under which certificates expire at different times during the year.

(b) The commission by rule shall adopt requirements to renew a certificate issued under this chapter.

[Sections 1307.104-1307.150 reserved for expansion]

SUBCHAPTER D. PRACTICE BY CERTIFICATE HOLDER

Sec. 1307.151. DISPLAY OF CERTIFICATE INFORMATION. (a) A roofing contractor shall display the contractor's business name and the number of the certificate issued by the executive director on each vehicle used by the contractor in providing roofing services.

(b) The information required to be displayed must be:

(1) printed in letters and numbers that are at least two inches high and in a color that contrasts with the color of the background surface; and

(2) permanently affixed in conspicuous places on both sides of the vehicle.

(c) The commission may develop rules for the display of the certificate number on contracts and other documents used to solicit and conduct roofing services in this state.

Sec. 1307.152. USE OF CERTIFICATE. (a) A roofing contractor's certificate number:

(1) must be valid and in good standing at the time of soliciting a project and during subsequent job performance;

(2) must be provided when applying for a permit issued by the state or any political subdivision of the state for commercial or residential roofing services or projects; and

(3) may not be shared or used by any other individual or business entity, except that a business entity or other group may be granted a single roofing registration certificate number for use by designated roofing contractors acting as agents for the business entity if:

(A) the application for registration contains sufficient information on each member, partner, officer, and agent of the entity; and

(B) the department issued a single certificate number to those persons as a single business entity.

(b) At the time of any change to the name, address, business entity, or legal service agent of a roofing contractor, the contractor shall notify the department.

Sec. 1307.153. COMPLIANCE WITH PERMIT REQUIREMENTS. A roofing contractor shall comply with state laws and local ordinances and regulations relating to standards and permits for roofing services and projects.

Sec. 1307.154. OBTAINING A CERTIFICATE UNDER ANOTHER NAME PROHIBITED. (a) A person may not attempt to obtain a certificate under any other name during any period during which the person's roofing contractor registration is suspended or revoked.

(b) Subsection (a) applies to any member, partner, officer, or agent of a business entity or other group whose certificate is suspended or revoked.

Sec. 1307.155. INSURANCE CLAIMS FOR RESIDENTIAL ROOFING GOODS AND SERVICES; PAYMENT OR REBATE OF INSURANCE DEDUCTIBLE. A registered roofing contractor providing residential roofing services to be paid by an insured from the proceeds of a property or casualty insurance policy may not advertise or promise to pay or rebate all or part of any applicable insurance deductible.

[Sections 1307.156-1307.200 reserved for expansion]

SUBCHAPTER E. ENFORCEMENT

Sec. 1307.201. DENIAL OF LICENSE; ADMINISTRATIVE SANCTIONS. The department may deny an application for a certificate or impose an administrative sanction under Section 51.353 if the applicant or, if the applicant is not an individual, a partner, principal, officer, or general manager of the applicant has:

(1) before the date of the application, a criminal conviction or has pleaded guilty or no contest to an offense for:

(A) a felony; or

(B) a misdemeanor punishable by confinement in jail or by a fine in an amount that exceeds $500;

(2) violated this chapter or a rule or order of the commission or executive director, including an order for sanctions or administrative penalties; or

(3) knowingly submitted false or incomplete information on the application.

Sec. 1307.202. INVESTIGATION OF COMPLAINTS. (a) The department shall investigate any complaint filed with the department alleging that a person has:

(1) violated this chapter or a rule adopted under this chapter;

(2) abandoned a roofing contract without legal excuse after a deposit of money or other consideration has been paid;

(3) misused money or property entrusted to a roofing contractor;

(4) engaged in any fraudulent or deceptive act or practice or misrepresentation as a roofing contractor;

(5) made a false or misleading statement in an application for a certificate or certificate renewal;

(6) been convicted of an offense that prohibits the person from registering as a roofing contractor or affects the ability of the person to act as a roofing contractor;

(7) performed roofing services without a valid certificate under this chapter; or

(8) performed roofing services without obtaining a permit required by a state or local authority.

(b) A complaint must be filed in a manner prescribed by the department.

Sec. 1307.203. ADMINISTRATIVE PENALTY. (a) The commission or executive director may impose an administrative penalty on a person under Subchapter F, Chapter 51, regardless of whether the person holds a certificate under this chapter, if the person violates:

(1) this chapter or a rule adopted under this chapter; or

(2) a rule or order of the executive director or commission.

(b) An administrative penalty may not be imposed unless the person charged with a violation is provided the opportunity for a hearing.

Sec. 1307.204. CEASE AND DESIST ORDER; INJUNCTION; CIVIL PENALTY. (a) The executive director may issue a cease and desist order as necessary to enforce this chapter if the executive director determines that the action is necessary to prevent a violation of this chapter and to protect public health and safety.

(b) The attorney general or executive director may institute an action for an injunction or a civil penalty under this chapter as provided by Section 51.352.

Sec. 1307.205. SANCTIONS. The department may impose sanctions as provided by Section 51.353.

Sec. 1307.206. CRIMINAL PENALTY. (a) A person commits an offense if the person:

(1) violates the registration requirements of this chapter; or

(2) performs roofing services without a certificate required by this chapter.

(b) An offense under this section is a Class C misdemeanor.

SECTION 2. Not later than March 31, 2012, the Texas Commission of Licensing and Regulation and the Texas Department of Licensing and Regulation, as appropriate, shall adopt rules and forms necessary to implement Chapter 1307, Occupations Code, as added by this Act.

SECTION 3. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2011.

(b) Section 1307.101, Occupations Code, and Subchapters D and E, Chapter 1307, Occupations Code, as added by this Act, take effect September 1, 2012.