Bill Text: TX HB3156 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the regulation of reroofing contractors; providing administrative and civil penalties; authorizing fees; creating a criminal offense; requiring an occupational registration.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-13 - Referred to Business & Industry [HB3156 Detail]
Download: Texas-2019-HB3156-Introduced.html
By: Capriglione | H.B. No. 3156 |
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relating to the regulation of reroofing contractors; providing | ||
administrative and civil penalties; authorizing fees; creating a | ||
criminal offense; requiring an occupational registration. | ||
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. REROOFING CONTRACTORS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 6004.001. SHORT TITLE. This chapter may be cited as | ||
the Reroofing Contractor Registration Act. | ||
Sec. 6004.002. DEFINITIONS. In this chapter: | ||
(1) "Advisory board" means the Reroofing Contractor | ||
Advisory Board. | ||
(2) "Commissioner" means the Texas Commissioner of | ||
Insurance. | ||
(3) "Department" means the Texas Department of | ||
Insurance. | ||
(4) "Person" means an individual or business entity. | ||
(6) "Registered reroofing contractor" means a | ||
reroofing contractor who is registered under this chapter and who | ||
holds a valid statement of registration number issued under this | ||
chapter. | ||
(7) "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. | ||
(8) "Reroofing project" means a project to repair, | ||
recover, or replace an existing roof covering on a residential or | ||
commercial structure. | ||
Sec. 6004.003. EXEMPTIONS. This chapter does not apply to: | ||
(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 | ||
capacity; | ||
(3) the new construction of a residential or | ||
commercial structure; or | ||
(4) a person performing a minor repair of an existing | ||
roof covering if the value of the repair does not exceed $500. | ||
SUBCHAPTER B. POWERS AND DUTIES | ||
Sec. 6004.051. GENERAL POWERS AND DUTIES. The department | ||
shall administer and enforce this chapter. | ||
Sec. 6004.052. RULES. (a) The commissioner by rule shall: | ||
(1) prescribe the requirements for the issuance and | ||
renewal of a registration under this chapter; | ||
(2) adopt a code of ethics for reroofing contractors; | ||
and | ||
(3) 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: | ||
(A) a temporary exception to the requirements of | ||
this chapter; and | ||
(B) the temporary recognition of reroofing | ||
contractors licensed or registered in good standing in another | ||
state. | ||
(b) The commissioner may adopt additional rules as | ||
necessary to administer this chapter. | ||
Sec. 6004.053. FEES. (a) Except as provided by Subsection | ||
(b), the commissioner shall establish and collect reasonable and | ||
necessary fees in amounts sufficient to cover the costs of | ||
administering this chapter by the department. | ||
(b) The fees adopted under this chapter must include fees | ||
for: | ||
(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. 6004.054. DEPOSIT IN OPERATING ACCOUNT. All fees | ||
collected under this chapter shall be deposited in the state | ||
treasury to the credit of the Texas Department of Insurance | ||
operating account for use in administering this chapter. | ||
Sec. 6004.055. 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) the date of initial registration; | ||
(3) information concerning the reroofing contractor's | ||
insurance coverage, if reported by the reroofing contractor; | ||
(4) a summary of any disciplinary action taken by the | ||
department against the reroofing contractor; and | ||
(5) any other information required by the department. | ||
Sec. 6004.055. 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. 6004.056. ADVISORY BOARD. (a) The Reroofing | ||
Contractor Advisory Board shall advise the commissioner in adopting | ||
rules under this chapter. | ||
(b) The advisory board consists of seven members appointed | ||
by the commissioner as follows: | ||
(1) four reroofing contractors; | ||
(2) the county or municipal building official in this | ||
state; and | ||
(3) two members who represent the public. | ||
(c) Appointments to the advisory board shall be made without | ||
regard to the race, color, disability, sex, religion, age, or | ||
national origin of the appointee. | ||
(d) Members of the advisory board serve three-year terms. | ||
(e) Chapter 2110, Government Code, does not apply to the | ||
size, composition, or duration of the advisory board. | ||
(f) Advisory board members may not receive compensation for | ||
serving as a member. | ||
SUBCHAPTER C. REGISTRATION REQUIREMENTS | ||
Sec. 6004.101. REGISTRATION REQUIRED. (a) Unless the | ||
person holds a registration issued under this chapter, a person may | ||
not: | ||
(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. 6004.102. EXEMPTION FROM REGISTRATION. (a) A person | ||
is not required to be registered under this chapter if: | ||
(1) subject to Subsection (b), the person is a sales | ||
manager, project manager, or other person employed or otherwise | ||
used by a registered reroofing contractor in the ordinary course of | ||
the contractor's business if the person does not engage in | ||
repairing, recovering, or replacing an existing roof covering; or | ||
(2) the person engages in repairing, recovering, or | ||
replacing an existing roof covering as an employee of or under | ||
contract with a registered reroofing contractor and the person is | ||
not involved in soliciting, advertising, or executing contracts for | ||
the contractor. | ||
(b) A person described by Subsection (a)(1) shall operate in | ||
the name of the registered reroofing contractor. The reroofing | ||
contractor is responsible for the conduct of that person in | ||
complying with the requirements of this chapter. | ||
Sec. 6004.103. APPLICATION FOR REGISTRATION. (a) An | ||
applicant for registration shall submit an application to the | ||
department on a form prescribed by the department. | ||
(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. 6004.104. 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 14th day after the date the department receives the | ||
application. | ||
(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 6004.105. | ||
Sec. 6004.105. 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 | ||
director. | ||
(b) The application must be accompanied by: | ||
(1) documentation of any changes in the reroofing | ||
contractor's information submitted to the department under Section | ||
6004.103(b); and | ||
(2) the renewal fee. | ||
SUBCHAPTER D. PRACTICE BY REGISTRATION HOLDER | ||
Sec. 6004.151. 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 6004.153; 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 | ||
advertisement. | ||
(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. | ||
Sec. 6004.152. CERTAIN PRACTICES RELATING TO INSURANCE | ||
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. 6004.153. 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 or the contractor's designee 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 | ||
contract."; | ||
(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; and | ||
(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)." | ||
Sec. 6004.154. 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. | ||
(c) The registered reroofing contractor's contract | ||
cancellation policy must be consistent with state law. | ||
SUBCHAPTER E. ENFORCEMENT | ||
Sec. 6004.201. 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 | ||
department. | ||
Sec. 6004.202. ADMINISTRATIVE PENALTY. The commissioner or | ||
department 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; | ||
or | ||
(2) an order of the commissioner or department. | ||
Sec. 6004.203. SANCTIONS. The commissioner or department | ||
may impose sanctions as provided by Section 51.353. | ||
Sec. 6004.204. CEASE AND DESIST ORDER. The commissioner or | ||
department 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. 6004.205. CRIMINAL PENALTY. (a) A person commits an | ||
offense if the person violates this chapter. | ||
(b) An offense under this section is a Class C misdemeanor. | ||
(c) If the conduct constituting an offense under this | ||
section also constitutes an offense under Section 32.42(b)(12), | ||
Penal Code, the person may be prosecuted under either section or | ||
under both sections. | ||
Sec. 6004.206. 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. The Texas Department of Insurance shall adopt | ||
rules necessary to implement Chapter 6004, Insurance Code, as added | ||
by this Act, not later than January 1, 2020. | ||
SECTION 3. The Texas Department of Insurance shall begin | ||
issuing registrations under Chapter 6004, Insurance Code, as added | ||
by this Act, not later than March 1, 2020. | ||
SECTION 4. (a) Except as provided by Subsection (b) of this | ||
section, this Act takes effect September 1, 2019. | ||
(b) Section 6004.101, Insurance Code, and Subchapters D and | ||
E, Chapter 6004, Insurance Code, as added by this Act, take effect | ||
March 1, 2020. |