Curry Reroofing Bill Lets Unlicensed Roofers Keep Replacing Roofs

The text as introduced · 1,964 words

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.