87R3320 DRS-F     By: Pacheco H.B. No. 2777       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of reroofing contractors; providing   administrative and civil penalties; authorizing fees; requiring an   occupational registration.          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.  SHORT TITLE. This chapter may be cited as   the Reroofing Contractor Registration Act.          Sec. 1306.002.  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)  "Person" means an individual or business entity.                (5)  "Registered reroofing contractor" means a   reroofing contractor who is registered under this chapter and who   holds a statement of registration number issued under this chapter.                (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.          Sec. 1306.003.  EXEMPTIONS. (a) This chapter does not apply   to:                (1)  a laborer or other individual who repairs,   recovers, or replaces existing roof coverings on residential or   commercial structures as an employee of or under contract with a   registered reroofing contractor;                (2)  a sales manager, project manager, administrative   assistant, or any other individual employed or otherwise engaged by   a registered reroofing contractor in the ordinary course of the   contractor's business;                (3)  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;                (4)  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;                (5)  a person who constructs new residential or   commercial structures; or                (6)  a person who is licensed as a retailer of   manufactured homes under Chapter 1201 and is performing a reroofing   project on a manufactured home as defined by Section 1201.003.          (b)  An individual who is exempt under Subsection (a)(1) or   (2) must operate in the name of the registered reroofing   contractor, and the contractor is responsible for the conduct of   the individual while the individual performs or otherwise engages   in the reroofing project.          Sec. 1306.004.  APPLICATION OF CHAPTER. This chapter does   not authorize a registered reroofing contractor to engage in:                (1)  the practice of engineering as defined by Section   1001.003; or                (2)  the practice of architecture as defined by Section   1051.001.   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:                (1)  prescribe the requirements for the issuance and   renewal of a registration under this chapter; and                (2)  provide for the issuance of a temporary emergency   registration at a reduced fee for reroofing projects on property   located in an area for which the governor declares a state of   disaster under Chapter 418, Government Code.          Sec. 1306.053.  FEES. (a) Except as provided by Subsection   (b), the commission shall establish and collect reasonable and   necessary fees in amounts not to exceed a total amount sufficient to   cover the state's costs of administering this chapter.          (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. 1306.054.  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)  a summary of any disciplinary action taken by the   department against the reroofing contractor; and                (3)  any other information required by the department.          Sec. 1306.055.  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)(1). The department shall establish a   verification system to ensure a timely response to a request for   verification of a registration.   SUBCHAPTER C. REGISTRATION REQUIREMENTS          Sec. 1306.101.  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. 1306.102.  APPLICATION FOR REGISTRATION. (a) An   applicant for registration shall submit an application to the   department on a form prescribed by the executive director.          (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. 1306.103.  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 10th 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 1306.104.          Sec. 1306.104.  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   1306.102(b); and                (2)  the renewal fee.   SUBCHAPTER D.  PRACTICE BY REGISTRATION HOLDER          Sec. 1306.151.  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 1306.153; 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   holding a registration issued under this chapter or the fact that   the contractor holds a registration issued under this chapter.          Sec. 1306.152.  CERTAIN PRACTICES RELATING TO INSURANCE   DEDUCTIBLES PROHIBITED; REVOCATION OF REGISTRATION. (a) A   registered 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 reroofing contractor who violates Subsection (a) is   subject to revocation of the contractor's registration, and the   contractor is ineligible for registration under this chapter before   the first anniversary of the date the registration is revoked.          Sec. 1306.153.  CONTRACT FOR REROOFING PROJECT. (a) Before   engaging in a reroofing project, a registered 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 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, which must be consistent with state   law;                (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)"; and                (5)  the department's contact information for   complaints directed to the department.   SUBCHAPTER E. ENFORCEMENT          Sec. 1306.201.  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. 1306.202.  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 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 commission or executive director.          Sec. 1306.203.  ADMINISTRATIVE SANCTIONS. The commission   may impose sanctions as provided by Section 51.353.          Sec. 1306.204.  CEASE AND DESIST ORDER. The executive   director 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 or a   rule adopted under this chapter.          Sec. 1306.205.  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, 2022, 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 registrations under Chapter 1306,   Occupations Code, as added by this Act, before June 1, 2022.          SECTION 4.  (a) Except as provided by Subsection (b) of this   section, this Act takes effect September 1, 2021.          (b)  Section 1306.101, Occupations Code, and Subchapter E,   Chapter 1306, Occupations Code, as added by this Act, take effect   August 1, 2022.