88R6393 DIO-F     By: Meza H.B. No. 3890       A BILL TO BE ENTITLED   AN ACT   relating to the regulation and voluntary licensing of reroofing   contractors by the Texas Department of Licensing and Regulation;   providing administrative and civil penalties; authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 8, Occupations Code, is amended by adding   Chapter 1306 to read as follows:   CHAPTER 1306.  REROOFING CONTRACTORS   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 1306.001.  DEFINITIONS. In this chapter:                (1)  "Commission" means the Texas Commission of   Licensing and Regulation.                (2)  "Department" means the Texas Department of   Licensing and Regulation.                (3)  "Executive director" means the executive director   of the department.                (4)  "Licensed reroofing contractor" means a reroofing   contractor who holds a license issued under this chapter.                (5)  "Person" means an individual or business entity.                (6)  "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.                (7)  "Reroofing project" means a project to repair,   recover, or replace an existing roof covering on a residential or   commercial structure.   SUBCHAPTER B.  POWERS AND DUTIES          Sec. 1306.051.  GENERAL POWERS AND DUTIES. The department   shall administer and enforce this chapter.          Sec. 1306.052.  RULES. The commission by rule shall   prescribe the requirements for the issuance and renewal of a   license under this chapter.          Sec. 1306.053.  FEES. The commission shall establish by   rule and collect reasonable and necessary fees in amounts not to   exceed the total amount sufficient to cover the state's costs of   administering this chapter.   SUBCHAPTER C.  REROOFING CONTRACTOR ADVISORY BOARD          Sec. 1306.101.  DEFINITION. In this subchapter, "advisory   board" means the reroofing contractor advisory board.          Sec. 1306.102.  REROOFING CONTRACTOR ADVISORY BOARD. (a)     The reroofing contractor advisory board shall advise the commission   on educational matters, operational matters, and common practices   in the reroofing industry.          (b)  Section 2110.003, Government Code, does not apply to the   advisory board.          Sec. 1306.103.  ADVISORY BOARD MEMBERSHIP. (a)  The   advisory board is composed of seven members as follows:                (1)  six members appointed by the presiding officer of   the commission with the commission's approval as follows:                      (A)  four members who are licensed reroofing   contractors; and                      (B)  two public members; and                (2)  one member who is the administrative head, or the   administrative head's designee, of a state agency or office that is   selected by the commission.          (b)  The advisory board members must include two members who   are affiliated with a statewide association of reroofing   contractors.          (c)  In appointing advisory board members under Subsection   (a)(1)(A), the presiding officer of the commission shall consider   the geographical diversity of the members.          (d)  Appointments to the advisory board shall be made without   regard to the race, color, disability, sex, religion, age, or   national origin of the appointee.          Sec. 1306.104.  ELIGIBILITY OF PUBLIC MEMBERS. A person is   not eligible for appointment as a public member of the advisory   board if the person or the person's spouse:                (1)  is licensed by an occupational regulatory agency   in the reroofing or construction industry;                (2)  is employed by or participates in the management   of an agency or business entity related to the reroofing or   construction industry; or                (3)  has, other than as a consumer, a financial   interest in a business entity related to the reroofing or   construction industry.          Sec. 1306.105.  TERMS; VACANCIES.  (a)  Except as provided by   Subsection (b), advisory board members:                (1)  serve terms of two years, with the terms expiring   on February 1 of each odd-numbered year; and                (2)  may not consecutively serve more than two full   terms.          (b)  The advisory board member appointed to the position   described by Section 1306.103(a)(2) is an ex officio member and   shall continue to serve during the time the member holds office.          (c)  If a vacancy occurs during a term of a member other than   the member described by Section 1306.103(a)(2), the presiding   officer of the commission shall appoint a replacement who meets the   qualifications of the vacated position to serve for the remainder   of the term.          Sec. 1306.106.  PRESIDING OFFICER. (a)  The governor shall   designate a member of the advisory board as the presiding officer of   the board to serve in that capacity at the pleasure of the governor.          (b)  The presiding officer of the advisory board must be a   licensed reroofing contractor.   SUBCHAPTER D.  VOLUNTARY LICENSE          Sec. 1306.151.  VOLUNTARY REROOFING CONTRACTOR LICENSE; USE   OF TITLE.  A reroofing contractor may not advertise that the company   is licensed by this state or use the title "licensed reroofing   contractor" unless the contractor holds a license issued under this   chapter.          Sec. 1306.152.  APPLICATION. (a)  An applicant for a   reroofing contractor license must submit an application to the   department on a form prescribed by the executive director.          (b)  A person may obtain a license for more than one business   entity by applying separately for each entity as required by this   chapter.          (c)  The application must be accompanied by:                (1)  if the applicant is a sole proprietorship that   operates under a name other than the sole proprietor's legal name,   proof of an assumed name certificate issued by the secretary of   state reflecting the business name;                (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;                (4)  proof that the applicant satisfies the general   liability insurance coverage and surety bond requirements   established by commission rule; and                (5)  the application fee established by commission   rule.          (d)  The department shall conduct an examination of any   criminal conviction of an applicant, including obtaining any   criminal history record information permitted by law.          Sec. 1306.153.  ISSUANCE OF LICENSE; LICENSE NUMBER.  (a)     Not later than the 10th day after the date the department receives   the application, the department shall issue a license to an   applicant who complies with the license requirements of this   chapter.          (b)  A license initially issued under this chapter must   include a unique license number.  Any renewal of the license must   include the number included in the initial issuance of the license.          (c)  A license issued under this chapter is not assignable or   transferable.          Sec. 1306.154.  LICENSE TERM. A license issued under this   chapter is valid for two years from the date of issuance and may be   renewed before expiration in the manner provided by Section   1306.155.          Sec. 1306.155.  RENEWAL OF LICENSE. (a)  To renew a license,   a reroofing contractor must 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   1306.152(c); and                (2)  the renewal fee established by commission rule.          Sec. 1306.156.  LICENSE DATABASE. The department shall make   available on the department's Internet website a publicly   accessible list of all licensed reroofing contractors who are in   good standing.  The list must be searchable by name and location.     The list must contain the following information for each licensed   reroofing contractor:                (1)  the name, mailing address, and telephone number of   the reroofing contractor;                (2)  a summary of any disciplinary action taken by the   department against the reroofing contractor; and                (3)  any other information required by the department.          Sec. 1306.157.  LICENSE VERIFICATION. On request of a   county or municipal building official, the department shall verify   the license status of a reroofing contractor.  The department shall   establish a verification system to ensure a timely response to a   request for license status verification of a reroofing contractor.   SUBCHAPTER E.  PRACTICE BY LICENSE HOLDER          Sec. 1306.201.  DISCLOSURE OF LICENSE NUMBER. A licensed   reroofing contractor shall include the contractor's license number   in each:                (1)  contract for a reroofing project in the manner   provided by Section 1306.203; 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.          Sec. 1306.202.  CERTAIN PRACTICES RELATING TO INSURANCE   DEDUCTIBLES PROHIBITED; REVOCATION OF LICENSE.  (a)  A licensed   reroofing contractor may not advertise or promise to pay, rebate,   waive, absorb, or otherwise not collect all or part of an insurance   deductible in connection with a reroofing project in violation of   Section 27.02, Business & Commerce Code.          (b)  A licensed reroofing contractor who violates Subsection   (a) is subject to revocation of the contractor's license and is   ineligible for licensure under this chapter before the first   anniversary of the date the license is revoked.          Sec. 1306.203.  CONTRACT FOR REROOFING PROJECT. (a)  Before   engaging in a reroofing project, a licensed reroofing contractor   must provide to the property owner a written contract that is signed   by the reroofing contractor and the property owner.          (b)  The written contract must include:                (1)  the reroofing contractor's contact information,   including physical address, e-mail address, and telephone number;                (2)  the reroofing contractor's policy regarding   cancellation of the contract, which must be consistent with state   law;                (3)  the reroofing contractor's license number in at   least 12-point bold type in the following form: "Texas Licensed   Reroofing Contractor Number (license number)"; and                (4)  the department's contact information for   complaints directed to the department.   SUBCHAPTER F.  ENFORCEMENT          Sec. 1306.251.  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 the manner prescribed by   the department.          Sec. 1306.252.  ADMINISTRATIVE PENALTY. The commission or   executive director may impose an administrative penalty on a person   under Subchapter F, Chapter 51, if the person violates:                (1)  this chapter or a rule adopted under this chapter;   or                (2)  an order of the commission or executive director.          Sec. 1306.253.  ADMINISTRATIVE SANCTIONS. The commission   may impose sanctions as provided by Section 51.353.          Sec. 1306.254.  CIVIL PENALTY. The attorney general or   executive director may institute an action for a civil penalty   under this chapter as provided by Section 51.352.  The amount of a   civil penalty assessed under this section may not exceed $500 for   each violation.          SECTION 2.  Not later than April 1, 2024, the Texas   Commission of Licensing and Regulation shall adopt the rules,   procedures, and fees necessary to administer Chapter 1306,   Occupations Code, as added by this Act.          SECTION 3.  The Texas Department of Licensing and Regulation   is not required to begin issuing licenses under Chapter 1306,   Occupations Code, as added by this Act, before June 1, 2024.          SECTION 4.  This Act takes effect September 1, 2023.