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SECTION 1. Title 20,
Insurance Code, is amended by adding Chapter 6004 to read as follows:
CHAPTER 6004. ROOFING
CONTRACTORS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 6004.001. SHORT
TITLE. This chapter may be cited as the Roofing Contractor Registration
Act.
Sec. 6004.002. DEFINITIONS.
In this chapter:
(2)
"Agricultural use" means a use or activity involving
agriculture, as defined by Section 11.002, Water Code, other than the
processing of an agricultural commodity.
(3) "Commissioner" means the commissioner of insurance.
(5) "Department" means the Texas Department of
Insurance."
(6) "Maintenance personnel" means an employee who performs
maintenance work incidental to and in connection with other duties
including the repair, maintenance and replacement of existing building
systems and components. Such maintenance personnel shall not engage in
roofing services for the general public.
(7) "Roofing
contractor" means a person or business performing roofing services for
compensation who:
(A) is an owner, officer,
or director of a roofing business;
(B) possesses direct or
indirect control of at least 10 percent of the voting securities of a
roofing business that is a corporation;
(C) owns or possesses
direct or indirect control of at least $25,000 of the fair market value of
a roofing business;
(D) directly or indirectly
possesses the power to direct or cause the direction of the management or policies
of a roofing business; or
(E) has a direct or
indirect interest in at least 10 percent of the profits, proceeds, or
capital gains of a roofing business.
(8) "Roofing
product" means any material commonly used in the construction, installation,
or replacement of a commercial or residential roof.
(9) "Roofing
services" means the installation, construction, maintenance, repair,
alteration, or modification of a roofing product for a commercial or
residential roof.
(10 "Remodeler" means a person who manages, oversees or
carries out multiple structural alterations, in addition to the performance of roofing services,
for an existing residential or commercial property for compensation.
Sec. 6004.003. EXEMPTIONS.
(a) This chapter does not apply to:
(1) the owner of
residential property or property used primarily for agricultural purposes,
or an employee of the owner, who physically performs roofing services on
the owner's dwelling or on another structure located on the property;
(2) the owner or
maintenance personnel of a commercial building;
(3) an authorized employee
or representative of the United States government, this state, or any
county, municipality, or other political subdivision of this state acting
in an official capacity;
(4) a person who furnishes
any fabricated or finished roofing product, material, or article of
merchandise that is not incorporated into or attached to real property by
the person;
(5) an employee while
working for and acting under the supervision of a roofing contractor who
holds a registration certificate under this chapter; or
(6) a builder of a newly
constructed single family or multi-family residential dwelling or
commercial structure.
(7) a remodeler of a
single family or multi-family residential dwelling or commercial structure.
(b) Notwithstanding
Subsection (a), a person described by Subsection (a)(6),(7) is subject to
the requirements of this chapter to the extent the person provides roofing
services other than those described by that subdivision.
Sec. 6004.004. CONSTRUCTION
OF CHAPTER; CONFLICT WITH OTHER LAW. This chapter shall be construed to be
in addition to any required registration of persons in this state. This
chapter is not intended to conflict with or affect 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
6004.005-6004.100 reserved for expansion]
SUBCHAPTER B. POWERS AND
DUTIES OF DEPARTMENT AND COMMISSIONER
Sec. 6004.101. GENERAL POWERS AND DUTIES. The department or
commissioner, as appropriate, may take action as necessary to administer
and enforce this chapter.
Sec. 6004.102. RULES. The
commissioner shall adopt rules as necessary to administer this chapter,
including rules relating to:
(1) registration and
renewal of registrations of roofing contractors;
(2) registration
requirements for out of state roofing contractors.
(3) the display of a registration
certificate by a registrant; and
(4) the form and manner of
a complaint submitted to the department; including the investigation of
complaints.
Sec. 6004.103. UNIFORM
CONTRACT REQUIREMENT. The commissioner shall adopt rules necessary to
establish the elements of a uniform contract which shall be made available
for all registrants to use, if requested.
Sec. 6004.104 REQUIRED
FINANCIAL DISCLOSURE. The commissioner shall adopt rules requiring
registrants to disclose, in writing, whether or not a registrant carries
insurance or maintains any other form of financial responsibility,
including any form of liability coverage, surety bond, workers compensation
coverage, or other coverage. This disclosure shall be made to any consumer
for whom a registrant seeks to provide roofing services and must be made
prior to the signing of a contract with a consumer.
Sec. 1307.105. REGISTRANT
DATABASE. The department shall make available on its Internet website a
publicly accessible list of registered
roofing contractors. The list must contain the following for each
registered roofing contractor:
(1) contact information
for the contractor;
(2) a statement indicating
whether the contractor is registered and in good standing;
(3) a summary of any known
disciplinary action taken against the contractor; and
(4) any other information
that the department determines is
relevant.
[Sections
6004.106-6004.150 reserved for expansion]
SUBCHAPTER C. REGISTRATION
REQUIREMENTS
Sec. 6004.151. REGISTRATION
REQUIRED. (a) A person may not act as or
offer to act as a roofing contractor unless the person holds a registration
certificate issued under this chapter.
(b) A registration:
(1) is valid only with
respect to the person or company named
on the registration certificate; and
(2) authorizes the
registrant to operate one roofing contractor
business for each registration.
(c) a registration may not
be transferred or assigned.
Sec. 6004.152. APPLICATION;
APPLICATION FEE. (a) An applicant for registration must:
(1) apply to the department
on a form prescribed by the commissioner and under rules adopted by the
commissioner;
(2) submit with the
application a nonrefundable application fee in an amount to be set by the
commissioner.
(b) The commissioner by
rule shall specify the information that must be included on an application
submitted to the department. The rules must
require each application to include:
(1) the name and address of each controlling person.
No
equivalent provision.
Sec. 6004.153. TERM OF
REGISTRATION AND RENEWAL. (a) Registration issued under this chapter is
valid for one year.
(b) A renewal application
must be filed by a roofing contractor at least 30 days prior to the
expiration of each prior years registration.
(c) If a roofing
contractor fails to file a renewal application at least 30 days prior to
the expiration of the prior years registration then the roofing
contractor's registration shall be deemed not in good standing.
(d) A roofing contractor
has a thirty-day grace period to renew a registration beyond the expiration
date.
(e) A roofing contractor
who fails to renew a registration beyond the time provided in 6004.153 (d)
shall have their registration revoked for failure to renew.
[Sections
6004.154-6004.200 reserved for expansion]
SUBCHAPTER D. PRACTICE BY
REGISTRANT
Sec. 6004.201. DISPLAY OF
REGISTRATION CERTIFICATE. (a) A roofing contractor shall display the
contractor's business name and the number of the registration certificate
issued by the commissioner on each vehicle owned by the contractor and used
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) affixed in conspicuous
places on both sides of the vehicle.
Sec. 6004.202. COMPLIANCE
WITH LOCAL REQUIREMENTS. A roofing contractor shall comply with local
ordinances and regulations relating to standards and permits for roofing
services.
Sec. 6004.203. OBTAINING A
REGISTRATION UNDER ANOTHER NAME PROHIBITED. (a) A person may not attempt to
obtain registration 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 controlling person of a business entity or other group whose
registration is suspended or revoked.
Sec. 6004.204. NOTIFICATION
OF CHANGE OF INFORMATION. A roofing contractor shall timely notify the
department of any change to the name, address, business entity, or legal
service agent of the contractor.
No
equivalent provision.
Sec. 6004.205. WAIVER OF
INSURANCE DEDUCTIBLE PROHIBITED. A roofing contractor providing roofing
services to be paid by a consumer from the proceeds of the consumer's
property or casualty insurance policy may not pay or rebate or promise to
pay or rebate all or part of any applicable insurance deductible.
Sec. 6004.206. MISREPRESENTATION
AND DECEPTIVE ACTS PROHIBITED. A roofing contractor shall not engage in any
fraudulent or deceptive acts or practices or misrepresentation of products,
services, or qualifications of a roofing contractor.
SEC. 6004.207. CERTAIN
CLAIMS HANDLING PROHIBITED. A roofing contractor shall not handle or
advertise services to handle the adjustment of claims or losses on behalf
of an insured.
Sec. 6004.206. CONFLICTS
OF INTEREST PROHIBITED. (a) In this section,
"public insurance adjuster" has the meaning assigned by Section
4102.001, Insurance Code.
(b) A roofing contractor may not act as a public insurance adjuster
for any property for which the contractor is providing roofing services,
regardless of whether the contractor holds a license under Chapter 4102,
Insurance Code.
(c) A roofing contractor is subject to the prohibitions under Section
4102.158, 4102.153, 4102.155 and 4102.161, Insurance Code.
[Sections
6004.207-6004.250 reserved for expansion]
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
SUBCHAPTER E. ENFORCEMENT
Sec. 6004.251. INVESTIGATION
OF COMPLAINTS. (a) The department shall investigate any complaint alleging
that a violation of this chapter or a
rule adopted under this chapter has occurred.
(b) A complaint must be
filed in a manner prescribed by the department.
Sec. 6004.252 ADMINISTRATIVE
PENALTY. The commissioner may impose an administrative penalty on a person
under Subchapter B, Chapter 84, regardless of whether the person is a
registrant 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
department or commissioner.
Sec. 6004.253. PENALTIES. The
commissioner may impose a penalty as provided by Section 84.022.
Sec. 6004.254. 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 the registration required by
this chapter.
(b) An offense under this
section is a Class C misdemeanor.
(c) More than one violation of this act during any twelve-month
period shall be grounds for the suspension of a roofing contractors
registration by the department.
(d) More than two violations of this act during any twelve-month
period shall cause the registrant to be ineligible for registration for a
period not to exceed twelve-months from the date of the last violation.
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SECTION 1. Title 20,
Insurance Code, is amended by adding Chapter 6004 to read as follows:
CHAPTER 6004. ROOFING
CONTRACTORS
SUBCHAPTER A. GENERAL
PROVISIONS
Sec. 6004.001. SHORT
TITLE. This chapter may be cited as the Roofing Contractor Consumer
Protection Act.
Sec. 6004.002. DEFINITIONS.
In this chapter:
(1) "Roofing
contractor":
(A) means an individual
performing roofing services for the public for compensation who:
(i) is operating as an individual or sole proprietorship; or
(ii) with respect to a
business entity:
(a) is an owner, officer,
or director of the business entity;
(b) possesses direct or
indirect control of not less than, as applicable:
(1) 10 percent of the
voting shares of a corporate entity; or
(2) $25,000 of the fair
market value of a noncorporate entity;
(c) possesses direct or
indirect control of the management or policies of the business entity; or
(d) has a direct or
indirect interest in not less than 10 percent of the profits, proceeds, or
capital gains of the business entity; and
(B) does not include an individual acting as an engineer licensed
under Chapter 1001, Occupations Code, or an architect registered under
Chapter 1051, Occupations Code.
(2) "Roofing
product" means any material commonly used in the construction,
installation, or replacement of a commercial or residential roof.
(3) "Roofing
services" means the installation, construction, maintenance, repair,
alteration, or modification of a roofing product for a commercial or
residential roof.
No
equivalent provision.
Sec. 6004.003. CONSTRUCTION
OF CHAPTER; CONFLICT WITH OTHER LAW. This chapter shall be construed to be
in addition to any required license,
certification, or registration of persons in this state. This
chapter is not intended to conflict with or affect 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. This chapter does not require that a roofing
contractor be registered under this chapter to engage in the business of
providing roofing services in this state.
SUBCHAPTER B. POWERS AND
DUTIES
Sec. 6004.051. ADMINISTRATION. The commissioner shall administer this
chapter in accordance with Chapter 36.
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
Sec. 6004.052. VOLUNTARY
REGISTRANT DATABASE. The department shall make available on its Internet
website a publicly accessible list of roofing contractors who voluntarily elect to register under this
chapter. The list must contain the following for each registered
roofing contractor:
(1) contact information
for the contractor;
(2) the name of each business entity with respect to which the
registrant is described by Section 6004.002(1)(A)(ii);
(3) a statement indicating
whether the contractor is registered in good standing under this chapter;
(4) a summary of known
disciplinary action taken against the contractor; and
(5) any other information
that the commissioner considers
relevant.
SUBCHAPTER C. VOLUNTARY
REGISTRATION
Sec. 6004.101. REGISTRATION.
(a) A roofing contractor who voluntarily
elects to register under this chapter may represent to the public that the
contractor is a registered roofing contractor.
(b) A registration:
(1) is valid only with
respect to the individual named on the
certificate of registration; and
(2) authorizes the
registrant to operate under the registration
under the business names included in the application for registration.
(c) A registration
certificate may not be transferred or assigned.
Sec. 6004.102. APPLICATION;
APPLICATION FEE. (a) An applicant for a registration certificate must:
(1) apply to the
department on a form prescribed by the commissioner by rule; and
(2) submit with the
application a nonrefundable application fee established by the commissioner
by rule.
(b) The commissioner by
rule shall specify the information that must be included on an application
submitted to the department.
Sec. 6004.103. ISSUANCE OF
CERTIFICATE. The commissioner shall issue a numbered certificate of
registration to an applicant who submits an application and fee in
compliance with Section 6004.102.
Sec. 6004.104. TERM OF
REGISTRATION; RENEWAL. (a) A certificate of registration issued under this
chapter is valid for one year.
(b) Except as provided by
Subsection (c), an application for renewal of a certificate of registration
must be filed with the department not later than the 30th day before the
date the certificate of registration expires. A certificate of registration
for which an application for renewal is not timely filed under this
subsection is considered not in good standing until
the later of the date of the expiration of the certificate of registration
under Subsection (d) or the granting of an application described by
Subsection (c), if any.
(c) A registrant may file
an application for renewal not later than the 30th day after the date a
certificate of registration expires.
(d) A certificate of
registration not renewed under Subsection (b) or (c) may not be renewed. The individual may obtain a new certificate of registration
by complying with the requirements and procedures for obtaining an initial
certificate of registration.
SUBCHAPTER D. PRACTICE BY
ROOFING CONTRACTOR
No
equivalent provision.
Sec. 6004.151. COMPLIANCE
WITH LOCAL REQUIREMENTS. A roofing contractor shall comply with local
ordinances and regulations relating to standards and permits for roofing
services.
No
equivalent provision.
Sec. 6004.152. NOTIFICATION
OF CHANGE OF INFORMATION. A registrant shall timely notify the department
of any change to the name, address, business entity, or legal service agent
of the contractor.
Sec. 6004.153. REGISTRATION
DURING SUSPENSION OR REVOCATION PROHIBITED. An individual may not obtain
another certificate of registration under this chapter during any period in
which the individual's certificate of registration is suspended or revoked.
Sec. 6004.154. REBATING
PROHIBITED. (a) A roofing contractor providing roofing services to be paid
by a consumer from the proceeds of the consumer's property insurance policy
may not pay or rebate or promise to pay or rebate all or part of any
applicable insurance deductible.
(b) A roofing contractor that violates Subsection (a) commits an
offense. An offense under this subsection is a Class A misdemeanor.
No
equivalent provision.
No
equivalent provision.
Sec. 6004.155. CONFLICTS
OF INTEREST PROHIBITED. A roofing contractor
may not act as an adjuster or advertise to adjust claims for any property
for which the contractor is providing or may provide roofing services,
regardless of whether the contractor holds a license under Chapter 4101 or
4102.
Sec. 6004.156. ENGINEERING
AND ARCHITECTURE SERVICES PROHIBITED. Unless a roofing contractor holds a
license under the applicable chapter, the contractor may not engage or
offer or attempt to engage in the practice of:
(1) engineering regulated
under Chapter 1001, Occupations Code; or
(2) architecture regulated
under Chapter 1051, Occupations Code.
Sec. 6004.157. DISPLAY OF
CERTIFICATE OF REGISTRATION NUMBER PERMITTED. A registrant may display the
certificate of registration number issued to the contractor under Section
6004.103.
Sec. 6004.158. LIABILITY
INSURANCE DISCLOSURE. (a) A roofing contractor shall provide to all
consumers solicited by the contractor a written disclosure of whether the
contractor carries liability insurance coverage for damage or loss arising
from the contractor's provision of roofing services.
(b) A roofing contractor
may not enter into a contract for roofing services with a consumer until
the contractor provides to the consumer the disclosure described by
Subsection (a).
(c) On request of a
consumer, a roofing contractor that carries liability insurance coverage
described by Subsection (a) shall provide to the consumer a copy of the
declarations page of the insurance policy.
SUBCHAPTER E. ENFORCEMENT
Sec. 6004.201. INVESTIGATION
OF COMPLAINTS. (a) The department shall investigate any complaint alleging
that a voluntary registrant has violated
this chapter or a rule adopted under this chapter.
(b) A complaint must be
filed in a manner prescribed by the department.
No
equivalent provision.
No
equivalent provision.
Sec. 6004.202. CRIMINAL
PENALTY. (a) A roofing contractor commits an offense if the contractor:
(1) violates Section 6004.155 or 6004.158; or
(2) represents to the public that the contractor is a registered
roofing contractor unless the contractor is registered under this chapter
and has received from the department confirmation of registration.
(b) An offense under this
section is a Class C misdemeanor.
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