Bill Text: TX HB1488 | 2015-2016 | 84th Legislature | Introduced


Bill Title: Relating to voluntary registration and regulation of roofing contractors; providing criminal penalties; authorizing a fee.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-09 - Referred to Insurance [HB1488 Detail]

Download: Texas-2015-HB1488-Introduced.html
  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.
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