86R22537 TSR-F
  By: Capriglione, et al. H.B. No. 2101
  Substitute the following for H.B. No. 2101:
  By:  Martinez Fischer C.S.H.B. No. 2101
  relating to the regulation of reroofing contractors; providing
  administrative and civil penalties; authorizing fees; requiring an
  occupational registration.
         SECTION 1.  Title 8, Occupations Code, is amended by adding
  Chapter 1306 to read as follows:
         Sec. 1306.001.  SHORT TITLE. This chapter may be cited as
  the Reroofing Contractor Registration Act.
         Sec. 1306.002.  DEFINITIONS. In this chapter:
               (1)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (2)  "Department" means the Texas Department of
  Licensing and Regulation.
               (3)  "Executive director" means the executive director
  of the department.
               (4)  "Person" means an individual or business entity.
               (5)  "Registered reroofing contractor" means a
  reroofing contractor who is registered under this chapter and who
  holds a statement of registration number issued under this chapter.
               (6)  "Reroofing contractor" means a person who:
                     (A)  engages in repairing, recovering, or
  replacing existing roof coverings on residential or commercial
  structures; or
                     (B)  solicits, advertises, or contracts to
  repair, recover, or replace existing roof coverings on residential
  or commercial structures.
               (7)  "Reroofing project" means a project to repair,
  recover, or replace an existing roof covering on a residential or
  commercial structure.
         Sec. 1306.003.  EXEMPTIONS. (a)  This chapter does not apply
               (1)  an owner of residential property or property
  primarily used for agricultural purposes, or an employee of the
  owner, who performs a reroofing project on the owner's property;
               (2)  an authorized employee or representative of the
  United States government, this state, or a county, municipality, or
  other political subdivision of this state acting in an official
               (3)  the new construction of a residential or
  commercial structure;
               (4)  a person performing a minor reroofing project the
  value of which does not exceed $500;
               (5)  a person who is licensed as a retailer of
  manufactured homes under Chapter 1201 and is performing a reroofing
  project on a manufactured home as defined by Section 1201.003;
               (6)  subject to Subsection (b), an individual who is a
  sales manager, project manager, or other individual employed or
  otherwise engaged by a registered reroofing contractor in the
  ordinary course of the contractor's business if the individual does
  not otherwise engage in repairing, recovering, or replacing
  existing roof coverings on residential or commercial structures; or
               (7)  an individual who otherwise engages in repairing,
  recovering, or replacing existing roof coverings on residential or
  commercial structures as an employee of or under contract with a
  registered reroofing contractor if the individual is not involved
  in soliciting, advertising, or executing contracts for the
         (b)  An individual described by Subsection (a)(6) shall
  operate in the name of the registered reroofing contractor and the
  contractor is responsible for the conduct of that individual in
  complying with the requirements of this chapter.
         Sec. 1306.004.  APPLICATION OF CHAPTER. This chapter does
  not authorize a registered reroofing contractor to engage in:
               (1)  the practice of engineering as defined by Section
  1001.003; or
               (2)  the practice of architecture as defined by Section
         Sec. 1306.051.  GENERAL POWERS AND DUTIES. The department
  shall administer and enforce this chapter.
         Sec. 1306.052.  RULES. (a) The commission by rule shall:
               (1)  prescribe the requirements for the issuance and
  renewal of a registration under this chapter; and
               (2)  with respect to reroofing projects on property
  located in an area for which the governor declares a state of
  disaster under Chapter 418, Government Code, provide for the
  issuance of a temporary emergency registration at a reduced fee.
         (b)  The commission may adopt additional rules as necessary
  to administer this chapter.
         Sec. 1306.053.  FEES. (a) Except as provided by Subsection
  (b), the commission shall establish and collect reasonable and
  necessary fees in amounts sufficient to cover the costs of
  administering this chapter.
         (b)  The fees adopted under this chapter must include fees
               (1)  an initial application for registration, in an
  amount not to exceed $250; and
               (2)  the renewal of a registration, in an amount not to
  exceed $100.
         Sec. 1306.054.  REGISTRATION DATABASE. The department shall
  make available on its Internet website a publicly accessible list
  of all registered reroofing contractors who are in good standing.
  The list must be searchable by name and location. The list must
  contain the following for each registered reroofing contractor:
               (1)  the name, mailing address, and telephone number of
  the reroofing contractor;
               (2)  a summary of any disciplinary action taken by the
  department against the reroofing contractor; and
               (3)  any other information required by the department.
         Sec. 1306.055.  REGISTRATION VERIFICATION. (a) A county or
  municipal building official may not grant or approve a building or
  construction permit for a reroofing project unless the applicant
  for the permit is:
               (1)  a registered reroofing contractor; or
               (2)  exempt from registration under this chapter.
         (b)  On request of a county or municipal building official,
  the department shall verify the registration of an applicant
  described by Subsection (a). The department shall establish a
  verification system to ensure a timely response to a request for
  verification of a registration.
         Sec. 1306.101.  REGISTRATION REQUIRED. (a) Unless the
  person holds a registration issued under this chapter, a person may
               (1)  perform or otherwise engage in a reroofing
  project; or
               (2)  solicit, advertise, or contract to perform or
  engage in a reroofing project.
         (b)  A registration under this chapter shall be issued in the
  form of a statement of registration number.
         (c)  A registration issued under this chapter:
               (1)  is valid only with respect to the person named on
  the registration; and
               (2)  authorizes the registration holder to operate as a
  reroofing contractor.
         (d)  A person may obtain a registration for more than one
  business entity. A registration is not transferable.
         Sec. 1306.102.  APPLICATION FOR REGISTRATION. (a) An
  applicant for registration shall submit an application to the
  department on a form prescribed by the executive director.
         (b)  The application must be accompanied by:
               (1)  if the applicant is an individual, proof of the
  applicant's identity;
               (2)  if the applicant is a business entity, proof of the
  applicant's existence and confirmation of authority to conduct
  business in this state under a certificate of status issued by the
  secretary of state that is in good standing;
               (3)  proof of the mailing address and telephone number
  of the applicant's residence or business location; and
               (4)  the application fee.
         Sec. 1306.103.  ISSUANCE OF REGISTRATION; TERM. (a) The
  department shall issue a registration to an applicant who complies
  with the registration requirements of this chapter not later than
  the 10th day after the date the department receives the
         (b)  A registration is valid for two years from the date of
  issuance and may be renewed before expiration in the manner
  provided by Section 1306.104.
         Sec. 1306.104.  RENEWAL OF REGISTRATION. (a) To renew a
  registration, a reroofing contractor shall submit an application
  for renewal to the department on a form prescribed by the executive
         (b)  The application must be accompanied by:
               (1)  documentation of any changes in the reroofing
  contractor's information submitted to the department under Section
  1306.102(b); and
               (2)  the renewal fee.
         Sec. 1306.151.  DISCLOSURE OF REGISTRATION NUMBER. (a) A
  registered reroofing contractor shall include the contractor's
  registration number in each:
               (1)  contract for a reroofing project in the manner
  provided by Section 1306.153; and
               (2)  advertisement for a reroofing service by the
  contractor, including on each business card, flyer, or door card
  and in each television, radio, social media, or newspaper
         (b)  Other than the inclusion of a registration number in the
  manner prescribed by this section, a reroofing contractor may not
  make any representation or statement regarding the effect of being
  issued a registration under this chapter or the fact that the
  contractor has been issued a registration under this chapter.
  DEDUCTIBLES PROHIBITED. A registered reroofing contractor may not
  advertise or promise to pay or rebate all or part of an insurance
  deductible in connection with a reroofing project in violation of
  Section 27.02, Business & Commerce Code.
         Sec. 1306.153.  CONTRACT FOR REROOFING PROJECT. (a) Before
  engaging in a reroofing project, a registered reroofing contractor
  must provide a written contract to the property owner that is signed
  by the reroofing contractor and the property owner.
         (b)  A written contract under Subsection (a) must include:
               (1)  the following statement printed in at least
  12-point bold type: "The work to be performed under this contract
  must commence not later than the 30th day after the date the
  reroofing contractor collects an initial payment, unless a longer
  period is agreed to in writing and signed by both parties to this
               (2)  the reroofing contractor's contact information,
  including physical address, e-mail address, and telephone number;
               (3)  the reroofing contractor's policy regarding
  cancellation of the contract, which must be consistent with state
               (4)  the reroofing contractor's registration number in
  at least 12-point bold type in the following form: "Texas
  Registered Reroofing Contractor Number (registration number)"; and
               (5)  the department's contact information for the
  purpose of directing complaints to the department.
         Sec. 1306.154.  COMPLIANCE WITH OTHER LAW. (a) A registered
  reroofing contractor shall comply with each applicable:
               (1)  building code adopted by this state or a political
  subdivision of this state; and
               (2)  order, ordinance, or rule of a political
  subdivision relating to the issuance of a permit for or the
  performance of a reroofing project in the political subdivision.
         (b)  A registered reroofing contractor shall comply with
  Chapter 58, Business & Commerce Code, during a natural disaster, as
  that term is defined by Section 58.001, Business & Commerce Code.
         Sec. 1306.201.  INVESTIGATION OF COMPLAINTS. (a) The
  department shall investigate any complaint alleging a violation of
  this chapter or a rule adopted under this chapter.
         (b)  A complaint must be filed in a manner prescribed by the
         Sec. 1306.202.  ADMINISTRATIVE PENALTY. The commission or
  executive director may impose an administrative penalty on a person
  under Subchapter F, Chapter 51, regardless of whether the person is
  registered under this chapter, if the person violates:
               (1)  this chapter or a rule adopted under this chapter;
               (2)  an order of the commission or executive director.
         Sec. 1306.203.  SANCTIONS. The commission may impose
  sanctions as provided by Section 51.353.
         Sec. 1306.204.  CEASE AND DESIST ORDER. The executive
  director may issue a cease and desist order under Section 51.3513 to
  prohibit any person from performing or engaging in a reroofing
  project if the person is not in compliance with this chapter.
         Sec. 1306.205.  CIVIL PENALTY. The attorney general or
  executive director may institute an action for a civil penalty
  under this chapter as provided by Section 51.352. The amount of a
  civil penalty assessed under this section may not exceed $500 for
  each violation.
         Sec. 1306.206.  DECEPTIVE TRADE PRACTICE. A reroofing
  contractor who advertises that the contractor holds a registration
  under this chapter commits a false, misleading, or deceptive act or
  practice within the meaning of Section 17.46, Business & Commerce
  Code, if the reroofing contractor does not hold a valid
  registration issued under this chapter.
         SECTION 2.  Not later than April 1, 2020, the Texas
  Commission of Licensing and Regulation shall adopt the rules,
  procedures, and fees necessary to administer Chapter 1306,
  Occupations Code, as added by this Act.
         SECTION 3.  The Texas Department of Licensing and Regulation
  is not required to begin issuing registrations under Chapter 1306,
  Occupations Code, as added by this Act, before June 1, 2020.
         SECTION 4.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2019.
         (b)  Section 1306.101, Occupations Code, and Subchapter E,
  Chapter 1306, Occupations Code, as added by this Act, take effect
  August 1, 2020.