84R9336 PMO-F

By: Sheets H.B. No. 1488

A BILL TO BE ENTITLED

AN ACT

relating to voluntary registration and regulation of roofing contractors; providing criminal penalties; authorizing a fee.

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

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.

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.

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

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.

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.

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.

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.

SECTION 2. Not later than February 1, 2016, the commissioner of insurance shall adopt rules and forms necessary to implement Chapter 6004, Insurance Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2015.