89R12580 DNC-F     By: Curry H.B. No. 3344       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of roofing contractors; providing an   administrative penalty; authorizing a fee; creating a criminal   offense; requiring an occupational license.          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. ROOFING CONTRACTORS   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 1306.001.  SHORT TITLE.  This chapter may be cited as   the Roofing Contractor Consumer Protection Act.          Sec. 1306.002.  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. 1306.003.  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. 1306.004.  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.   SUBCHAPTER B. ADVISORY BOARD          Sec. 1306.051.  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. 1306.052.  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. 1306.053.  COMPENSATION. Advisory board members may   not receive compensation for serving as a member.   SUBCHAPTER C.  POWERS AND DUTIES OF DEPARTMENT AND COMMISSION          Sec. 1306.101.  GENERAL POWERS AND DUTIES. The department,   executive director, or commission, as appropriate, may take action   as necessary to administer and enforce this chapter.          Sec. 1306.102.  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. 1306.103.  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. 1306.104.  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.   SUBCHAPTER D. LICENSE REQUIREMENTS          Sec. 1306.151.  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. 1306.152.  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. 1306.153.  TERM OF LICENSE.  A license issued under this   chapter is valid for one year.          Sec. 1306.154.  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.   SUBCHAPTER E. PRACTICE BY LICENSE HOLDER          Sec. 1306.201.  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. 1306.202.  COMPLIANCE WITH LOCAL REQUIREMENTS.  A   roofing contractor shall comply with local ordinances and   regulations relating to standards and permits for roofing services.          Sec. 1306.203.  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. 1306.204.  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. 1306.205.  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. 1306.206.  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.   SUBCHAPTER F.  ENFORCEMENT          Sec. 1306.251.  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. 1306.252.  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. 1306.253.  SANCTIONS. The commission may impose   sanctions as provided by Section 51.353.          Sec. 1306.254.  CRIMINAL OFFENSE. (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, 2026, 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 1306, Occupations   Code, as added by this Act.          SECTION 3.  The Texas Department of Licensing and Regulation   shall issue a roofing contractor license under Chapter 1306,   Occupations Code, as added by this Act, to an applicant who:                (1)  applies for a license under this section not later   than June 1, 2026;                (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 1306.002, 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, 2025.          (b)  Section 1306.151, Occupations Code, and Subchapters E   and F, Chapter 1306, Occupations Code, as added by this Act, take   effect September 1, 2026.