Bill Text: TX HB888 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the licensing and regulation of roofing contractors; authorizing a fee and providing penalties.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-02-19 - Referred to Licensing & Administrative Procedures [HB888 Detail]

Download: Texas-2013-HB888-Introduced.html

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83R4258 MAW-F
By: Sheets H.B. No. 888

A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of roofing contractors;
authorizing a fee and providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 8, Occupations Code, is amended by adding
Chapter 1307 to read as follows:
CHAPTER 1307. ROOFING CONTRACTORS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1307.001. SHORT TITLE. This chapter may be cited as
the Roofing Contractor Consumer Protection Act.
Sec. 1307.002. DEFINITIONS. In this chapter:
(1) "Advisory board" means the roofing contractors
advisory board.
(2) "Commission" means the Texas Commission of
Licensing and Regulation.
(3) "Controlling person" means an individual who:
(A) is an owner, officer, or director of a
roofing contractor;
(B) possesses direct or indirect control of at
least 10 percent of the voting securities of a roofing contractor
that is a corporation;
(C) owns or possesses direct or indirect control
of at least $25,000 of the fair market value of a roofing
contractor;
(D) directly or indirectly possesses the power to
direct or cause the direction of the management or policies of a
roofing contractor; or
(E) has a direct or indirect interest in at least
10 percent of the profits, proceeds, or capital gains of a roofing
contractor.
(4) "Department" means the Texas Department of
Licensing and Regulation.
(5) "Executive director" means the executive director
of the department.
(6) "Roofing contractor" means a person who performs
roofing services for compensation.
(7) "Roofing product" means any material commonly used
in the construction, installation, or replacement of a commercial
or residential roof.
(8) "Roofing services" means the installation,
construction, maintenance, repair, alteration, or modification of
a roofing product for a commercial or residential roof.
Sec. 1307.003. EXEMPTIONS. (a) This chapter does not apply
to:
(1) the owner of residential property or property used
primarily for agricultural purposes, or an employee of the owner,
who physically performs roofing services on the owner's dwelling or
on another structure located on the property;
(2) an authorized employee or representative of the
United States government, this state, or any county, municipality,
or other political subdivision of this state acting in an official
capacity;
(3) a person who furnishes any fabricated or finished
roofing product, material, or article of merchandise that is not
incorporated into or attached to real property by the person;
(4) an employee of a roofing contractor licensed under
this chapter; or
(5) a person who performs roofing services for the new
construction of a commercial or residential structure.
(b) Notwithstanding Subsection (a), a person described by
Subsection (a)(5) may be subject to the requirements of this
chapter to the extent the person provides roofing services other
than those described by that subdivision.
Sec. 1307.004. CONSTRUCTION OF CHAPTER; CONFLICT WITH OTHER
LAW. This chapter shall be construed to be in addition to any
required licensure 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.
[Sections 1307.005-1307.050 reserved for expansion]
SUBCHAPTER B. ADVISORY BOARD
Sec. 1307.051. ROOFING CONTRACTORS ADVISORY BOARD. (a)
The advisory board consists of five members appointed by the
presiding officer of the commission with the approval of the
commission as follows:
(1) one general contractor who is not a roofing
contractor;
(2) three roofing contractors licensed under this
chapter; and
(3) one public member.
(b) For purposes of Subsection (a)(2), the commission may
appoint a roofing contractor who is not licensed under this chapter
if the contractor has fulfilled the requirements for the issuance
of a license and has submitted a complete application to the
department. The commission shall remove from the advisory board a
roofing contractor appointed under this subsection if the
contractor does not receive a license before the 31st day after the
date the contractor is appointed to the advisory board.
(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) Chapter 2110, Government Code, does not apply to the
composition or duration of the advisory board.
Sec. 1307.052. POWERS AND DUTIES OF ADVISORY BOARD. The
advisory board shall provide advice and recommendations to the
commission on the adoption of rules governing the repair of a
roofing system.
Sec. 1307.053. COMPENSATION. Advisory board members may
not receive compensation for serving as a member.
[Sections 1307.054-1307.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES OF DEPARTMENT AND COMMISSION
Sec. 1307.101. GENERAL POWERS AND DUTIES. The department,
executive director, or commission, as appropriate, may take action
as necessary to administer and enforce this chapter.
Sec. 1307.102. RULES. The commission shall adopt rules as
necessary to administer this chapter, including rules relating to:
(1) licensing roofing contractors and establishing
standards of conduct for license holders, including the display of
a license by a license holder;
(2) investigating and resolving complaints filed
under this chapter;
(3) establishing the minimum financial responsibility
requirements for license holders;
(4) administering a licensing examination; and
(5) prohibiting false, misleading, or deceptive
advertising practices by license holders.
Sec. 1307.103. CRIMINAL HISTORY BACKGROUND CHECK. The
department may obtain criminal history record information under
Subchapter F, Chapter 411, Government Code, for an applicant for or
holder of a license under this chapter. For purposes of Section
411.093, Government Code, an applicant for or holder of a license
under this chapter includes a controlling person of an applicant or
holder.
Sec. 1307.104. LICENSE HOLDER DATABASE. The commission
shall make available on its Internet website a publicly accessible
list of licensed roofing contractors. The list must contain the
following for each licensed roofing contractor:
(1) contact information for the contractor;
(2) a statement indicating whether the contractor is
licensed in good standing;
(3) a summary of any disciplinary action taken by the
commission against the contractor; and
(4) any other information that the commission
determines is relevant.
[Sections 1307.105-1307.150 reserved for expansion]
SUBCHAPTER D. LICENSE REQUIREMENTS
Sec. 1307.151. LICENSE REQUIRED. (a) A person may not act
as or offer to act as a roofing contractor unless the person holds a
license issued under this chapter.
(b) A license:
(1) is valid only with respect to the person or company
named on the license; and
(2) authorizes the license holder to operate one
roofing contractor business for each license.
(c) A license issued under this chapter is not transferable
or assignable.
Sec. 1307.152. APPLICATION; APPLICATION FEE. (a) An
applicant for a license must:
(1) apply to the department on a form prescribed by the
executive director and under rules adopted by the commission;
(2) submit with the application a nonrefundable
application fee in an amount set by the commission; and
(3) pass an examination adopted by the department.
(b) The commission by rule shall specify the information
that must be included on an application submitted to the
department. The rules must require each application to include:
(1) the name and address of, and an authorization for
the department to obtain criminal history record information for,
each controlling person; and
(2) evidence that the applicant satisfies the minimum
financial responsibility requirements established by commission
rule.
Sec. 1307.153. TERM OF LICENSE. A license issued under this
chapter is valid for one year.
Sec. 1307.154. EXAMINATION. (a) An examination required
by this chapter shall be conducted at locations throughout the
state.
(b) The department shall accept, develop, or contract for
the examination required by this chapter, including the
administration of the examination. Each examination must test the
knowledge of the applicant about basic contracting principles and
roofing services.
(c) The executive director shall determine uniform
standards for acceptable performance on an examination.
[Sections 1307.155-1307.200 reserved for expansion]
SUBCHAPTER E. PRACTICE BY LICENSE HOLDER
Sec. 1307.201. DISPLAY OF LICENSE INFORMATION. (a) A
roofing contractor shall display the contractor's business name and
the number of the license issued by the executive director on each
vehicle owned by the contractor and used in providing roofing
services.
(b) The information required to be displayed must be:
(1) printed in letters and numbers that are at least
two inches high and in a color that contrasts with the color of the
background surface; and
(2) affixed in conspicuous places on both sides of the
vehicle.
Sec. 1307.202. COMPLIANCE WITH LOCAL REQUIREMENTS. A
roofing contractor shall comply with local ordinances and
regulations relating to standards and permits for roofing services.
Sec. 1307.203. OBTAINING A LICENSE UNDER ANOTHER NAME
PROHIBITED. (a) A person may not attempt to obtain a license under
any other name during any period during which the person's roofing
contractor license is suspended or revoked.
(b) Subsection (a) applies to any controlling person of a
business entity or other group whose license is suspended or
revoked.
Sec. 1307.204. NOTIFICATION OF CHANGE OF INFORMATION. A
roofing contractor shall timely notify the department of any change
to the name, address, business entity, liability coverage, or legal
service agent of the contractor.
Sec. 1307.205. PROHIBITED ACTS. A roofing contractor
providing roofing services to be paid by a consumer from the
proceeds of the consumer's property or casualty insurance policy
may not pay or rebate or promise to pay or rebate all or part of any
applicable insurance deductible.
Sec. 1307.206. CONFLICTS OF INTEREST PROHIBITED. (a) In
this section, "public insurance adjuster" has the meaning assigned
by Section 4102.001, Insurance Code.
(b) A roofing contractor may not act as a public insurance
adjuster for any property for which the contractor is providing
roofing services, regardless of whether the contractor holds a
license under Chapter 4102, Insurance Code.
(c) A roofing contractor is subject to the prohibitions
under Section 4102.158, Insurance Code.
[Sections 1307.207-1307.250 reserved for expansion]
SUBCHAPTER F. ENFORCEMENT
Sec. 1307.251. INVESTIGATION OF COMPLAINTS. (a) The
department shall investigate any complaint alleging that a
violation of this chapter or a rule adopted under this chapter has
occurred.
(b) A complaint must be filed in a manner prescribed by the
department.
Sec. 1307.252. 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
holds a license under this chapter, if the person violates:
(1) this chapter or a rule adopted under this chapter;
or
(2) a rule or order of the commission or executive
director.
Sec. 1307.253. SANCTIONS. The commission may impose
sanctions as provided by Section 51.353.
Sec. 1307.254. CRIMINAL PENALTY. (a) A person commits an
offense if the person:
(1) violates the licensing requirements of this
chapter; or
(2) performs roofing services without a license
required by this chapter.
(b) An offense under this section is a Class C misdemeanor.
SECTION 2. Not later than February 1, 2014, the Texas
Commission of Licensing and Regulation, the Texas Department of
Licensing and Regulation, and the executive director of the Texas
Department of Licensing and Regulation, as appropriate, shall adopt
rules and forms necessary to implement Chapter 1307, Occupations
Code, as added by this Act.
SECTION 3. The Texas Department of Licensing and Regulation
shall issue a roofing contractor license under Chapter 1307,
Occupations Code, as added by this Act, to an applicant who:
(1) applies for a license under this section not later
than June 1, 2014;
(2) submits to the department the information required
by rule;
(3) has at least 10 years of experience performing
roofing services as defined by Section 1307.002, Occupations Code,
as added by this Act; and
(4) pays the application fee established by the Texas
Commission of Licensing and Regulation.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2013.
(b) Section 1307.151, Occupations Code, and Subchapters E
and F, Chapter 1307, Occupations Code, as added by this Act, take
effect September 1, 2014.