89R9119 SCR-D

By: Campos H.B. No. 4169

A BILL TO BE ENTITLED

AN ACT

relating to fire remediation contracts.

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

SECTION 1. Title 4, Business & Commerce Code, is amended by adding Chapter 60 to read as follows:

CHAPTER 60. FIRE REMEDIATION CONTRACTS

Sec. 60.001. DEFINITIONS. In this chapter:

(1) "Final fire remediation contract" means a fire remediation contract entered into after an insurance company performs an adequate assessment of the damage or destruction caused by a fire.

(2) "Fire remediation" means removing, cleaning, sanitizing, demolishing, or otherwise treating improvements to real property because of damage or destruction to that property caused by a fire.

(3) "Fire remediation contract" means an agreement for fire remediation services.

(4) "Fire remediation contractor" means a person who engages in fire remediation for compensation, other than a person who holds a permit, license, registration, or other authorization issued by the Texas Commission on Environmental Quality for the collection, transportation, treatment, storage, processing, or disposal of solid waste.

(5) "Person" means an individual, corporation, trust, partnership, association, or other private legal entity.

(6) "Pre-estimate fire remediation contract" means a fire remediation contract entered into before an insurance company performs an adequate assessment of the damage or destruction caused by a fire.

Sec. 60.002. APPLICABILITY OF CHAPTER. This chapter applies to a contract between a person and a fire remediation contractor for the performance of fire remediation services on real property owned or leased by the person.

Sec. 60.003. CERTAIN FIRE REMEDIATION CONTRACTS NOT BINDING. A pre-estimate fire remediation contract is not binding except to the extent provided by Section 60.004.

Sec. 60.004. FIRE REMEDIATION CONTRACT REQUIREMENTS. A fire remediation contract between a person who owns or leases property and a fire remediation contractor must be in writing and include:

(1) a statement acknowledging the contract is not binding if the contract is a pre-estimate fire remediation contract except to the extent provided by Subdivision (5);

(2) any applicable estimated dollar amount an insurance company will pay for the fire remediation services;

(3) the estimated amount the person will be responsible for paying after submitting any applicable insurance claim;

(4) a statement informing the person that the person is not required to sign the contract; and

(5) a statement that, if the person signs the contract, the person is only responsible for paying the estimated amount provided in accordance with Subdivision (3).

Sec. 60.005. ELECTRONIC FILING SYSTEM. (a) The secretary of state shall maintain on the secretary's Internet website an electronic filing system for fire remediation contracts.

(b) A fire remediation contractor shall submit each pre-estimate fire remediation contract and final fire remediation contract to the electronic filing system.

Sec. 60.006. DECEPTIVE TRADE PRACTICE. A violation of this chapter by a fire remediation contractor is a false, misleading, or deceptive act or practice in addition to the practice described by Subchapter E, Chapter 17, and is actionable under that subchapter.

Sec. 60.007. PROHIBITED WAIVER OF CHAPTER. A person may not waive the requirements of this chapter by contract or other means. A purported waiver of this chapter is a violation of this section and is void.

SECTION 2. Chapter 60, Business & Commerce Code, as added by this Act, applies only to a contract entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.