Bill Text: TX SB1399 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of foundation repair contractors; providing penalties.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2011-05-23 - Committee report distributed [SB1399 Detail]
Download: Texas-2011-SB1399-Introduced.html
Bill Title: Relating to the regulation of foundation repair contractors; providing penalties.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2011-05-23 - Committee report distributed [SB1399 Detail]
Download: Texas-2011-SB1399-Introduced.html
82R8345 SLB-D | ||
By: Patrick | S.B. No. 1399 |
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relating to the regulation of foundation repair contractors; | ||
providing a penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle A, Title 6, Occupations Code, is | ||
amended by adding Chapter 1003 to read as follows: | ||
CHAPTER 1003. FOUNDATION REPAIR CONTRACTORS | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 1003.001. SHORT TITLE. This chapter may be cited as | ||
the Foundation Repair Contractors Act. | ||
Sec. 1003.002. DEFINITIONS. In this chapter: | ||
(1) "Advisory board" means the Foundation Repair | ||
Contractors Advisory Board. | ||
(2) "Chief administrator" means an individual | ||
performing duties under Section 1003.106. | ||
(3) "Commission" means the Texas Commission of | ||
Licensing and Regulation. | ||
(4) "Department" means the Texas Department of | ||
Licensing and Regulation. | ||
(5) "Executive director" means the executive director | ||
of the department. | ||
(6) "Foundation" means that portion of a structure | ||
that serves the function of: | ||
(A) supporting an overlying structure; | ||
(B) providing a base for an overlying structure; | ||
or | ||
(C) transmitting loads from an overlying | ||
structure to the underlying soils. | ||
(7) "Foundation repair contracting" means performing | ||
or offering to perform the design, installation, or construction | ||
functions in connection with the repair or maintenance of a | ||
foundation. | ||
(8) "Foundation repair contractor" means an | ||
individual or business engaged in foundation repair contracting for | ||
the public. | ||
(9) "Manager" means an individual who oversees | ||
activities related to foundation repair contracting, including | ||
foundation installation, foundation lifting, customer service, | ||
sales, foundation design, or general business administration. | ||
(10) "Mobile structure" means a structure that has | ||
wheels attached for the purpose of moving the structure from one | ||
location to another. | ||
Sec. 1003.003. EXEMPTIONS. (a) This chapter does not apply | ||
to: | ||
(1) an individual homeowner who, without paid help, | ||
repairs the foundation of the individual's residence; | ||
(2) an individual licensed as an engineer under | ||
Chapter 1001 who engages in foundation repair contracting in | ||
connection with the business in which the individual is employed | ||
but who does not engage in that work for the public; or | ||
(3) an individual who engages in foundation repair | ||
contracting for a mobile structure. | ||
(b) An individual is not required to hold a license under | ||
this chapter if the individual is engaged in foundation repair | ||
under the supervision of a license holder under this chapter. | ||
Sec. 1003.004. APPLICATION OF MUNICIPAL ORDINANCES. | ||
Foundation repair contracting by an individual who is exempt under | ||
this chapter remains subject to a permit, inspection, or approval | ||
requirement established by a municipal ordinance. | ||
[Sections 1003.005-1003.050 reserved for expansion] | ||
SUBCHAPTER B. FOUNDATION REPAIR CONTRACTORS ADVISORY BOARD | ||
Sec. 1003.051. ADVISORY BOARD MEMBERSHIP. The Foundation | ||
Repair Contractors Advisory Board consists of: | ||
(1) the executive director; | ||
(2) the chief administrator; and | ||
(3) seven members appointed by the presiding officer | ||
of the commission, with the commission's approval. | ||
Sec. 1003.052. APPOINTED MEMBERS. (a) Each appointed | ||
advisory board member, other than the public member, must be | ||
experienced in the design, installation, construction, | ||
maintenance, service, repair, or modification of a foundation. | ||
(b) The appointed members shall be appointed as follows: | ||
(1) one member who is an official of a municipality; | ||
(2) one member who is an engineer licensed by this | ||
state; | ||
(3) four members who are full-time licensed foundation | ||
repair contractors, of whom two must be members of a statewide | ||
foundation repair organization; and | ||
(4) one member who represents the public and is not | ||
affiliated with any foundation repair contracting company. | ||
Sec. 1003.053. EX OFFICIO MEMBERS. The executive director | ||
and the chief administrator shall serve as ex officio members. The | ||
executive director and the chief administrator are nonvoting | ||
members of the advisory board. | ||
Sec. 1003.054. ADVISORY BOARD DUTIES. The advisory board | ||
shall provide advice and recommendations to the department and | ||
commission on technical matters relevant to the administration and | ||
enforcement of this chapter, including examination content, | ||
licensing standards, applicable fees, rules, and continuing | ||
education requirements. | ||
Sec. 1003.055. TERMS; VACANCY. (a) Appointed advisory | ||
board members shall serve staggered six-year terms. The terms of | ||
two or three appointed members expire on February 1 of each | ||
odd-numbered year. | ||
(b) If a vacancy occurs during an appointed member's term, | ||
the presiding officer of the commission, with the commission's | ||
approval, shall fill the vacancy for the remainder of the unexpired | ||
term with an individual having the same qualifications as the | ||
predecessor. | ||
Sec. 1003.056. PRESIDING OFFICER. The presiding officer of | ||
the commission, with the commission's approval, shall designate one | ||
member of the advisory board to serve as presiding officer of the | ||
board for a two-year term. | ||
Sec. 1003.057. COMPENSATION; REIMBURSEMENT. An advisory | ||
board member serves without compensation but is entitled to | ||
reimbursement for actual and necessary expenses incurred in | ||
performing functions as an advisory board member, as provided by | ||
the General Appropriations Act. | ||
Sec. 1003.058. MEETINGS. (a) The advisory board shall meet | ||
at least once every six months and may meet at other times at the | ||
call of the presiding officer of the board. | ||
(b) The advisory board shall meet in this state at a place | ||
designated by the board. | ||
[Sections 1003.059-1003.100 reserved for expansion] | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 1003.101. GENERAL DUTIES. The commission shall | ||
maintain a record of the commission's proceedings under this | ||
chapter. | ||
Sec. 1003.102. RULES. (a) The commission shall adopt rules | ||
as necessary to implement this chapter. | ||
(b) The rules must establish standards for the practice of | ||
foundation repair at least as stringent as the standards provided | ||
by: | ||
(1) the Foundation Repair Association; or | ||
(2) the Texas Section of the American Society of Civil | ||
Engineers Guidelines for the Evaluation and Repair of Residential | ||
Foundations, Version 2, adopted May 1, 2009. | ||
Sec. 1003.103. INSURANCE REQUIREMENTS. (a) The commission | ||
shall establish insurance requirements for a license holder under | ||
this chapter. | ||
(b) The commission may waive the insurance requirements for | ||
a license holder who does not engage in foundation repair | ||
contracting for the public. | ||
Sec. 1003.104. CONTRACTS FOR ENFORCEMENT. The department | ||
may contract with another state agency or political subdivision of | ||
the state to enforce this chapter and rules adopted under this | ||
chapter. | ||
Sec. 1003.105. PERSONNEL. The department may employ | ||
personnel necessary to administer this chapter. | ||
Sec. 1003.106. CHIEF ADMINISTRATOR. (a) The chief | ||
administrator is responsible for the administration of this chapter | ||
under the direction of the department. The chief administrator | ||
shall perform duties as prescribed by the department. | ||
(b) The chief administrator is a full-time employee of the | ||
department. | ||
Sec. 1003.107. DIRECTORY OF LICENSE HOLDERS. (a) The | ||
department shall maintain a directory of license holders and make | ||
the directory available to the public. | ||
(b) The department may sell the directory for a reasonable | ||
fee set by the commission. | ||
[Sections 1003.108-1003.150 reserved for expansion] | ||
SUBCHAPTER D. LICENSE REQUIREMENTS | ||
Sec. 1003.151. LICENSE REQUIRED. (a) An individual may not | ||
engage in foundation repair contracting unless the individual holds | ||
a license under this chapter. | ||
(b) An individual who holds a license issued under this | ||
chapter is not required to hold a license issued by a municipality | ||
to engage in foundation repair contracting in the municipality. | ||
Sec. 1003.152. LICENSE CLASSIFICATIONS. The department | ||
shall issue master, journeyman, tradesman apprentice, and | ||
apprentice foundation repair contractor licenses. | ||
Sec. 1003.153. MASTER LICENSE. (a) A master license | ||
entitles the license holder to engage in foundation repair | ||
contracting. | ||
(b) An applicant for a master license under this chapter | ||
must: | ||
(1) be at least 21 years of age; | ||
(2) have at least 60 months of documented, practical | ||
experience working in foundation repair contracting under the | ||
supervision of a master license holder during the preceding seven | ||
years; | ||
(3) have a high school diploma or its equivalent; and | ||
(4) pass an examination administered by the | ||
department. | ||
Sec. 1003.154. JOURNEYMAN LICENSE. (a) A journeyman | ||
license entitles the license holder to engage in the design and sale | ||
of foundation repair and of lifting, lowering, and adjusting | ||
buildings under the supervision of a master license holder. | ||
(b) An applicant for a journeyman license under this chapter | ||
must: | ||
(1) be at least 21 years of age; | ||
(2) have at least 24 months of documented, practical | ||
experience working in foundation repair contracting under the | ||
supervision of a master license holder during the preceding five | ||
years; | ||
(3) have a high school diploma or its equivalent; and | ||
(4) pass an examination administered by the | ||
department. | ||
Sec. 1003.155. TRADESMAN APPRENTICE LICENSE. (a) A | ||
tradesman apprentice license entitles the license holder to engage | ||
in providing an estimate or design for a foundation repair or for | ||
the lifting, lowering, or adjusting of a building if the estimate or | ||
design is reviewed and approved in writing by a master license | ||
holder not later than the 10th business day after the date the | ||
estimate or design is presented to a member of the public. | ||
(b) An applicant for a tradesman apprentice license under | ||
this chapter must: | ||
(1) be at least 21 years of age; | ||
(2) have a high school diploma or its equivalent; and | ||
(3) pass an examination administered by the | ||
department. | ||
Sec. 1003.156. APPRENTICE LICENSE. (a) An apprentice | ||
license entitles the license holder to engage in the repair of a | ||
foundation under the supervision of a master license holder. | ||
(b) An applicant for an apprentice license under this | ||
chapter must be at least 18 years of age. | ||
Sec. 1003.157. PRACTICAL EXPERIENCE. For purposes of | ||
determining an applicant's practical experience under this | ||
subchapter, a four-year degree in engineering is equivalent to two | ||
years of practical experience if: | ||
(1) the degree is from an institution of higher | ||
education; and | ||
(2) the institution's program is approved by the Texas | ||
Board of Professional Engineers for the purpose of licensing | ||
engineers. | ||
Sec. 1003.158. APPLICATION. (a) An applicant for a license | ||
must submit an application on the form prescribed by the | ||
department. | ||
(b) The application must specify the class of license for | ||
which the applicant is applying. | ||
(c) The application must be accompanied by: | ||
(1) a statement containing evidence satisfactory to | ||
the department of the applicant's required practical experience; | ||
(2) the examination fee; and | ||
(3) proof of insurance as required by this chapter or | ||
commission rule. | ||
(d) The department may conduct a criminal background check | ||
on an applicant. | ||
Sec. 1003.159. EXAMINATIONS. (a) The department shall | ||
prescribe a separate examination for each class of license, except | ||
that an examination is not required for an apprentice license. | ||
(b) The department shall prescribe the method and content of | ||
an examination administered under this chapter and shall contract | ||
with a statewide association of foundation repair contractors for | ||
the examination. | ||
(c) The examination: | ||
(1) must be offered on a monthly basis or more | ||
frequently as determined by the executive director; | ||
(2) must be offered at locations throughout the state | ||
as determined by the executive director; and | ||
(3) may be offered online as determined by the | ||
executive director. | ||
Sec. 1003.160. ISSUANCE AND TERM OF LICENSE. (a) The | ||
department shall issue a foundation repair contractor license to an | ||
applicant who: | ||
(1) provides evidence of insurance coverage required | ||
by the commission; | ||
(2) passes the applicable examination; | ||
(3) passes a criminal background check; | ||
(4) pays the required fees; and | ||
(5) meets the requirements of this chapter. | ||
(b) Not later than the 30th day after the date an applicant | ||
fulfills the license requirements, the department shall issue a | ||
license to the applicant. | ||
(c) A license issued under this chapter expires at the end | ||
of the license period set by the commission. | ||
Sec. 1003.161. RENEWAL OF LICENSE. To renew a license, the | ||
license holder must: | ||
(1) submit a renewal application in the form | ||
prescribed by the executive director; | ||
(2) pay the required fee; | ||
(3) show evidence of insurance required under this | ||
chapter or commission rule; and | ||
(4) show evidence of having completed the continuing | ||
education requirements established by the commission. | ||
Sec. 1003.162. FORM OF LICENSE. The executive director | ||
shall prescribe the design of an original license and a renewal | ||
license. | ||
Sec. 1003.163. DISPLAY OF LICENSE. The commission, with | ||
the advice of the advisory board, shall adopt rules relating to the | ||
use, display, and advertisement of a license. | ||
Sec. 1003.164. NOTICE TO MUNICIPALITIES. (a) An | ||
individual who obtains a license under this chapter shall provide a | ||
notice to the municipal authority that enforces foundation repair | ||
contracting regulations in each municipality in which the | ||
individual engages in foundation repair contracting. | ||
(b) The notice must be in the form required by the | ||
municipality and inform the municipality that the individual has | ||
obtained a license under this chapter. | ||
(c) A municipality may charge a fee to an individual who | ||
provides the notice required by this section. The municipality | ||
shall set the fee in an amount reasonable and necessary to | ||
administer this section. | ||
Sec. 1003.165. REQUIREMENTS FOR FOUNDATION REPAIR | ||
CONTRACTING COMPANY. (a) A foundation repair contracting company | ||
shall employ at least one full-time license holder who holds a | ||
master license. | ||
(b) A foundation repair contracting company that does not | ||
employ a license holder as required by Subsection (a) at the time a | ||
contract for foundation repair contracting services is signed and | ||
at the time the services are performed may not collect a fee or | ||
otherwise enforce the contract. | ||
Sec. 1003.166. PROHIBITED PRACTICES BY LICENSE HOLDER. (a) | ||
A license holder may not perform or offer or attempt to perform an | ||
act, service, or function that is: | ||
(1) defined as the practice of engineering under | ||
Chapter 1001, unless the individual holds a license under that | ||
chapter; | ||
(2) defined as the practice of architecture under | ||
Chapter 1051, unless the individual holds a license under that | ||
chapter; | ||
(3) regulated under Chapter 113, Natural Resources | ||
Code, unless the individual holds a license or is exempt by rule | ||
under that chapter; or | ||
(4) defined as plumbing under Chapter 1301, unless the | ||
individual holds a license under that chapter. | ||
(b) A license holder may not: | ||
(1) fail to provide services for which payment has | ||
been made or fail to honor the terms of a contract in the absence of | ||
a good faith dispute; | ||
(2) intentionally or knowingly misrepresent a | ||
necessary service, service to be provided, or service that has been | ||
provided; or | ||
(3) make a fraudulent promise to induce an individual | ||
to contract for a service. | ||
[Sections 1003.167-1003.200 reserved for expansion] | ||
SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY | ||
Sec. 1003.201. DISCIPLINARY ACTION. The commission may | ||
impose an administrative penalty or take disciplinary action under | ||
Chapter 51 if a license holder violates this chapter or a rule | ||
adopted under this chapter. | ||
Sec. 1003.202. CRIMINAL PENALTY. (a) A person commits an | ||
offense if the person knowingly engages in foundation repair | ||
contracting without holding a license under this chapter. | ||
(b) An offense under this section is a Class C misdemeanor. | ||
[Sections 1003.203-1003.250 reserved for expansion] | ||
SUBCHAPTER F. INITIAL LICENSES | ||
Sec. 1003.251. INITIAL LICENSING. (a) The department | ||
shall waive the requirements of Section 1003.153(b) for a master | ||
license for an applicant who has been an owner or manager of a | ||
foundation repair contracting company continuously for at least 10 | ||
years before March 1, 2012. | ||
(b) The department shall waive the requirements of Section | ||
1003.154(b) for a journeyman license for an applicant who has | ||
worked continuously for a foundation repair contractor as a | ||
salesman, estimator, or manager for at least four years before | ||
March 1, 2012. | ||
Sec. 1003.252. RENEWAL OF LICENSE. To qualify to renew an | ||
initial license issued under this subchapter, the license holder | ||
must comply with the requirements of Section 1003.161. | ||
Sec. 1003.253. EXPIRATION OF SUBCHAPTER. This subchapter | ||
expires June 1, 2013. | ||
SECTION 2. (a) The Texas Commission of Licensing and | ||
Regulation shall appoint the members of the Foundation Repair | ||
Contractors Advisory Board as soon as practicable after the | ||
effective date of this Act. | ||
(b) The members of the Foundation Repair Contractors | ||
Advisory Board appointed under Chapter 1003, Occupations Code, as | ||
added by this Act, shall draw lots to determine which terms of two | ||
members expire February 1, 2013, which terms of two members expire | ||
February 1, 2015, and which terms of three members expire February | ||
1, 2017. | ||
(c) The changes in law made by Section 1003.165, Occupations | ||
Code, as added by this Act, apply only to a contract for foundation | ||
repair entered into or renewed on or after March 1, 2012. A | ||
contract for foundation repair entered into or renewed before March | ||
1, 2012, is governed by the law as it existed on the date the | ||
contract was entered into, and the former law is continued in effect | ||
for that purpose. | ||
SECTION 3. (a) The Texas Commission of Licensing and | ||
Regulation shall adopt rules to implement Chapter 1003, Occupations | ||
Code, as added by this Act, not later than January 1, 2012. | ||
(b) A person is not required to obtain a license to engage in | ||
foundation repair contracting under Chapter 1003, Occupations | ||
Code, as added by this Act, before March 1, 2012. | ||
SECTION 4. (a) Except as provided by Subsection (b) of | ||
this section, this Act takes effect September 1, 2011. | ||
(b) Sections 1003.151 and 1003.202, Occupations Code, as | ||
added by this Act, take effect March 1, 2012. |