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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 penalties. |
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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) "Commission" means the Texas Commission of |
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Licensing and Regulation. |
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(3) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(4) "Executive director" means the executive director |
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of the department. |
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(5) "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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(6) "Foundation repair" means the performance of or an |
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offer 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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(7) "Foundation repair contracting company" 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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(8) "Laborer" means an individual who, under the |
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supervision of a person licensed under this chapter, performs |
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manual labor, including digging holes, pouring foundations, |
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tunneling, and installing underpinning. |
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(9) "Manager" means an individual who oversees |
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activities related to foundation repair, including foundation |
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installation, foundation lifting, customer service, and sales. |
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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 |
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apply 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 in connection with |
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the business in which the individual is employed but who does not |
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engage in that work for the public; |
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(3) an individual or entity that engages in foundation |
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repair for a mobile structure; |
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(4) an individual or entity that performs foundation |
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repair only on nonresidential properties; or |
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(5) an individual or entity that, for compensation: |
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(A) sells, constructs, or remodels a |
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single-family house or duplex; |
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(B) supervises or manages the construction or |
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remodeling of a single-family house or duplex; or |
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(C) contracts for the supervision or management |
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of the construction or remodeling of a single-family house or |
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duplex. |
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(b) A laborer is not required to hold a license under this |
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chapter if the laborer is engaged in foundation repair under the |
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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 by an individual or entity, including an |
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individual or entity that is exempt under this chapter, is subject |
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to a permit, inspection, or approval requirement established by a |
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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 seven members |
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appointed by the presiding officer of the commission, with the |
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commission's approval. |
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Sec. 1003.052. MEMBERS. (a) Each advisory board member, |
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other than the public member, must be experienced in the design, |
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installation, construction, maintenance, service, repair, or |
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modification of a foundation. |
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(b) The 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 under |
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Chapter 1001; |
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(3) four members who are licensed foundation repair |
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master license holders, 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. 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, fees, rules, and continuing education |
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requirements. |
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Sec. 1003.054. TERMS; VACANCY. (a) Advisory board members |
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shall serve staggered six-year terms. The terms of two or three |
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members expire on February 1 of each odd-numbered year. |
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(b) If a vacancy occurs during a member's term, the |
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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. 1003.055. 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. 1003.056. 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 and the budget of the department. |
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Sec. 1003.057. MEETINGS. (a) The advisory board shall |
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meet at least annually and may meet at other times at the call of the |
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presiding officer of the commission or the executive director. |
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(b) The advisory board shall meet in this state at a place |
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designated by the executive director. |
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[Sections 1003.058-1003.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 1003.101. RULES. The commission shall adopt rules as |
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necessary to implement this chapter. |
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Sec. 1003.102. INSURANCE REQUIREMENTS. The commission by |
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rule shall establish minimum liability insurance requirements for a |
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foundation repair contracting company under this chapter. |
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Sec. 1003.103. 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. 1003.104. PERSONNEL. The department may employ |
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personnel necessary to administer this chapter. |
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Sec. 1003.105. DIRECTORY OF LICENSE HOLDERS. 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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[Sections 1003.106-1003.150 reserved for expansion] |
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SUBCHAPTER D. LICENSE REQUIREMENTS |
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Sec. 1003.151. LICENSE REQUIRED. (a) An individual or |
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entity may not engage in foundation repair unless the individual or |
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entity holds the appropriate license under this chapter. |
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(b) An individual or entity that holds a license issued |
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under this chapter is not required to hold a license issued by a |
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municipality to engage in foundation repair in the municipality. |
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Sec. 1003.152. LICENSE CLASSIFICATIONS. The department |
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shall issue contracting company, master, journeyman, estimator, |
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and foreman licenses. |
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Sec. 1003.153. CONTRACTING COMPANY LICENSE. (a) A |
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contracting company license entitles the license holder to engage |
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in business as a foundation repair contracting company. |
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(b) A foundation repair contracting company shall employ at |
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least one full-time license holder who holds a master license. |
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(c) A foundation repair contracting company that does not |
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employ a license holder as required by Subsection (b) at the time |
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the services are performed may not collect a fee or otherwise |
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enforce the contract. |
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(d) A foundation repair contracting company shall maintain |
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at all times insurance as required by commission rule. |
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Sec. 1003.154. MASTER LICENSE. (a) A master license |
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entitles the license holder to engage in foundation repair. |
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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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work experience in foundation repair under the supervision of a |
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master license holder during the preceding seven years or |
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substantially equivalent experience; |
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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. 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 the lifting, lowering, and adjusting of |
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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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work experience in foundation repair under the supervision of a |
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master license holder during the preceding five years or |
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substantially equivalent experience; |
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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. 1003.156. ESTIMATOR LICENSE. (a) An estimator |
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license entitles the license holder to engage in providing |
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estimates or designs for foundation repair under the supervision of |
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a master or journeyman license holder. |
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(b) An applicant for an estimator 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 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. 1003.157. FOREMAN LICENSE. (a) A foreman license |
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entitles the license holder to supervise laborers and to engage in |
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foundation repair under the supervision of a master or journeyman |
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license holder. |
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(b) An applicant for a foreman license under this chapter |
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must be at least 18 years of age. |
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Sec. 1003.158. 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 the degree is from an institution |
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of higher education. |
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Sec. 1003.159. APPLICATION. (a) An applicant for a |
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license 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 and include the required fees. |
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(c) The application for a master, journeyman, estimator, or |
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foreman license must include a statement containing evidence |
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satisfactory to the department of the applicant's required |
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practical experience. An application for a contracting company |
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license must include proof of insurance as required by commission |
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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. 1003.160. EXAMINATIONS. (a) The department shall |
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prescribe a separate examination for each class of license under |
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this chapter, except that an examination is not required for a |
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foreman or contracting company 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. |
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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. 1003.161. ISSUANCE AND TERM OF LICENSE. (a) The |
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department shall issue a license to an applicant who: |
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(1) submits a verified application on a form |
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prescribed by the department; |
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(2) provides evidence of insurance coverage required |
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by commission rule, if applicable; |
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(3) passes an examination, if applicable; |
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(4) pays the required fees; and |
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(5) meets the requirements of this chapter and rules |
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adopted under this chapter. |
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(b) 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. 1003.162. 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 by commission |
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rule, if applicable; and |
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(4) show evidence of having completed the continuing |
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education requirements established by the commission, as |
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applicable. |
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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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regulations in each municipality in which the individual engages in |
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foundation repair. |
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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. PROHIBITED PRACTICES. (a) A license holder |
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may not perform or offer or attempt to perform an act, service, or |
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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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(c) A laborer may not supervise any individual who is |
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performing work related to foundation repair. |
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[Sections 1003.166-1003.200 reserved for expansion] |
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SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY |
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Sec. 1003.201. DISCIPLINARY ACTION. The commission or |
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executive director may impose an administrative penalty or take |
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disciplinary action under Chapter 51 or this chapter if a license |
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holder violates this chapter, a rule adopted under this chapter, or |
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an order of the commission or the executive director. |
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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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without holding a license required by 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. WAIVER OF EXAMINATION REQUIREMENT. (a) The |
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department shall waive the examination requirement of Section |
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1003.154(b) for a master license for an applicant who has been an |
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owner or manager of a foundation repair contracting company for at |
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least 60 months before September 1, 2012. |
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(b) The department shall waive the examination requirement |
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of Section 1003.155(b) for a journeyman license for an applicant |
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who has worked for a foundation repair contracting company as a |
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salesperson, estimator, foreman, or manager for at least 24 months |
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before September 1, 2012. |
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Sec. 1003.252. INITIAL LICENSING. (a) The department |
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shall issue a master license to a qualified applicant who: |
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(1) submits an application not later than September 1, |
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2012; |
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(2) is at least 21 years of age; |
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(3) has been an owner or manager of a foundation repair |
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contracting company for at least 60 months; and |
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(4) has a high school diploma or its equivalent. |
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(b) The department shall issue a journeyman license to a |
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qualified applicant who: |
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(1) submits an application not later than September 1, |
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2012; |
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(2) is at least 21 years of age; |
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(3) has worked for a foundation repair contracting |
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company as a salesperson, estimator, foreman, or manager for at |
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least 24 months; and |
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(4) has a high school diploma or its equivalent. |
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Sec. 1003.253. 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 1003.162. |
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Sec. 1003.254. EXPIRATION OF SUBCHAPTER. This subchapter |
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expires October 1, 2012. |
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SECTION 2. (a) Notwithstanding the requirement of |
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Subdivision (3), Subsection (b), Section 1003.052, Occupations |
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Code, as added by this Act, the Texas Commission of Licensing and |
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Regulation shall appoint persons who meet the practical experience |
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requirement for an initial master license to serve as initial |
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members of the Foundation Repair Contractors Advisory Board as soon |
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as practicable after the effective date of this Act. |
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(b) The Texas Commission of Licensing and Regulation shall |
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determine with respect to the members of the Foundation Repair |
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Contractors Advisory Board appointed under Chapter 1003, |
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Occupations Code, as added by this Act, which terms of two members |
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expire February 1, 2013, which terms of two members expire February |
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1, 2015, and which terms of three members expire February 1, 2017. |
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(c) The changes in law made by Section 1003.153, 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 September 1, 2012. A |
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contract for foundation repair entered into or renewed before |
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September 1, 2012, is governed by the law as it existed on the date |
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the contract was entered into, and the former law is continued in |
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effect 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 February 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 under Chapter 1003, Occupations Code, as added by |
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this Act, before September 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, 1003.201, and 1003.202, Occupations |
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Code, as added by this Act, take effect September 1, 2012. |