83R1626 SLB-D
 
  By: Orr H.B. No. 613
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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)  "Commission" means the Texas Commission of
  Licensing and Regulation.
               (3)  "Department" means the Texas Department of
  Licensing and Regulation.
               (4)  "Executive director" means the executive director
  of the department.
               (5)  "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.
               (6)  "Foundation repair" means the performance of or an
  offer to perform the design, installation, or construction
  functions in connection with the repair or maintenance of a
  foundation.
               (7)  "Foundation repair contracting company" means an
  individual or business engaged in foundation repair contracting for
  the public.
               (8)  "Laborer" means an individual who, under the
  supervision of a person licensed under this chapter, performs
  manual labor, including digging holes, pouring foundations,
  tunneling, and installing underpinning.
               (9)  "Manager" means an individual who oversees
  activities related to foundation repair, including foundation
  installation, foundation lifting, customer service, and sales.
               (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 who, without paid help, repairs the
  foundation of a home that the individual owns and in which the
  individual resides;
               (2)  an individual licensed as an engineer under
  Chapter 1001 who engages in foundation repair in connection with
  the business in which the individual is employed but who does not
  engage in that work for the public;
               (3)  an individual or entity that engages in foundation
  repair for a mobile structure;
               (4)  an individual or entity that performs foundation
  repair only on nonresidential properties; or
               (5)  an individual or entity that, for compensation:
                     (A)  sells, constructs, or remodels a
  single-family house or duplex;
                     (B)  supervises or manages the construction or
  remodeling of a single-family house or duplex; or
                     (C)  contracts for the supervision or management
  of the construction or remodeling of a single-family house or
  duplex.
         (b)  For purposes of Subsection (a), remodeling of a
  single-family house or duplex is exempt to the extent it does not
  include foundation repair.
         (c)  A laborer is not required to hold a license under this
  chapter if the laborer is engaged in foundation repair under the
  supervision of a license holder under this chapter.
         Sec. 1003.004.  APPLICATION OF MUNICIPAL ORDINANCES.
  Foundation repair by an individual or entity, including an
  individual or entity that is exempt under this chapter, is 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 seven members
  appointed by the presiding officer of the commission, with the
  commission's approval.
         Sec. 1003.052.  MEMBERS. (a) Each 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 members shall be appointed as follows:
               (1)  one member who is an official of a municipality;
               (2)  one member who is an engineer licensed under
  Chapter 1001;
               (3)  four members who are foundation repair master
  license holders, 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.  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, fees, rules, and continuing education
  requirements.
         Sec. 1003.054.  TERMS; VACANCY. (a) Advisory board members
  shall serve staggered six-year terms. The terms of two or three
  members expire on February 1 of each odd-numbered year.
         (b)  If a vacancy occurs during a 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. 1003.055.  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
  advisory board for a two-year term.
         Sec. 1003.056.  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 and the budget of the department.
         Sec. 1003.057.  MEETINGS. (a)  The advisory board shall meet
  at least annually and may meet at other times at the call of the
  presiding officer of the commission or the executive director.
         (b)  The advisory board shall meet in this state at a place
  designated by the executive director.
  [Sections 1003.058-1003.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 1003.101.  RULES. The commission shall adopt rules as
  necessary to implement this chapter.
         Sec. 1003.102.  INSURANCE REQUIREMENTS. The commission by
  rule shall establish reasonable minimum liability insurance
  requirements for a contracting company license holder under this
  chapter.
         Sec. 1003.103.  CONTRACTS FOR ENFORCEMENT. The department
  may contract with another state agency or political subdivision of
  this state to enforce this chapter and rules adopted under this
  chapter.
         Sec. 1003.104.  PERSONNEL.  The department may employ
  personnel necessary to administer this chapter.
         Sec. 1003.105.  DIRECTORY OF LICENSE HOLDERS. The
  department shall maintain a directory of license holders and make
  the directory available to the public.
  [Sections 1003.106-1003.150 reserved for expansion]
  SUBCHAPTER D. LICENSE REQUIREMENTS
         Sec. 1003.151.  LICENSE REQUIRED. (a) An individual or
  entity may not engage in foundation repair unless the individual or
  entity holds the appropriate license under this chapter.
         (b)  An individual or entity that holds a license issued
  under this chapter is not required to hold a license issued by a
  municipality to engage in foundation repair in the municipality.
         Sec. 1003.152.  LICENSE CLASSIFICATIONS. The department
  shall issue contracting company, master, and journeyman licenses.
         Sec. 1003.153.  CONTRACTING COMPANY LICENSE. (a) A
  contracting company license entitles the license holder to engage
  in business as a foundation repair contracting company.
         (b)  A contracting company license holder shall employ at
  least one full-time master license holder.
         (c)  A contracting company license holder that does not
  employ a master license holder as required by Subsection (b) at the
  time the services are performed may not collect a fee or otherwise
  enforce the contract.
         (d)  A contracting company license holder shall maintain at
  all times insurance as required by commission rule.
         Sec. 1003.154.  MASTER LICENSE.  (a)  A master license
  entitles the license holder to engage in foundation repair.
         (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
  work experience in foundation repair under the supervision of a
  master license holder during the preceding seven years or
  substantially equivalent experience; and
               (3)  pass an examination administered by the
  department.
         Sec. 1003.155.  JOURNEYMAN LICENSE.  (a)  A journeyman
  license entitles the license holder to engage in the design and sale
  of foundation repair and the lifting, lowering, and adjusting of
  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
  work experience in foundation repair under the supervision of a
  master license holder during the preceding five years or
  substantially equivalent experience; and
               (3)  pass an examination administered by the
  department.
         Sec. 1003.156.  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 the degree is from an institution
  of higher education.
         Sec. 1003.157.  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 and include the required fees.
         (c)  The application for a master or journeyman license must
  include a statement containing evidence satisfactory to the
  department of the applicant's required practical experience.  An
  application for a contracting company license must include proof of
  insurance as required by commission rule.
         (d)  The department may conduct a criminal background check
  on an applicant.
         Sec. 1003.158.  EXAMINATIONS. (a) The department shall
  prescribe a separate examination for each class of license under
  this chapter, except that an examination is not required for a
  contracting company license.
         (b)  The department shall prescribe the method and content of
  an examination administered under this chapter.
         (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. 1003.159.  ISSUANCE AND TERM OF LICENSE. (a) The
  department shall issue a license to an applicant who:
               (1)  submits a verified application on a form
  prescribed by the department;
               (2)  provides evidence of insurance coverage required
  by commission rule, if applicable;
               (3)  passes an examination, if applicable;
               (4)  pays the required fees; and
               (5)  meets the requirements of this chapter and rules
  adopted under this chapter.
         (b)  A license issued under this chapter expires at the end
  of the license period set by the commission.
         Sec. 1003.160.  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 by commission
  rule, if applicable; and
               (4)  show evidence of having completed the continuing
  education requirements established by the commission, as
  applicable.
         Sec. 1003.161.  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. 1003.162.  NOTICE TO MUNICIPALITIES. (a) An
  individual or entity that obtains a license under this chapter
  shall provide a notice to the municipal authority that enforces
  foundation repair regulations in each municipality in which the
  individual or entity engages in foundation repair.
         (b)  The notice must be in the form required by the
  municipality and inform the municipality that the individual or
  entity has obtained a license under this chapter.
         Sec. 1003.163.  PROHIBITED PRACTICES. (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 1003.164-1003.200 reserved for expansion]
  SUBCHAPTER E. DISCIPLINARY ACTION; PENALTY
         Sec. 1003.201.  DISCIPLINARY ACTION. The commission or
  executive director may impose an administrative penalty or take
  disciplinary action under Chapter 51 or this chapter if a license
  holder violates this chapter, a rule adopted under this chapter, or
  an order of the commission or the executive director.
         Sec. 1003.202.  CRIMINAL PENALTY. (a) A person commits an
  offense if the person knowingly engages in foundation repair
  without holding a license required by 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.  WAIVER OF EXAMINATION REQUIREMENT. (a)  The
  department shall waive the examination requirement of Section
  1003.154(b) for a master license for an applicant who has been an
  owner or manager of a foundation repair contracting company for at
  least 60 months before September 1, 2014.
         (b)  The department shall waive the examination requirement
  of Section 1003.155(b) for a journeyman license for an applicant
  who has worked for a foundation repair contracting company as a
  salesperson, estimator, foreman, or manager for at least 24 months
  before September 1, 2014.
         Sec. 1003.252.  INITIAL LICENSING.  (a)  The department
  shall issue a master license to a qualified applicant who:
               (1)  submits an application not later than September 1,
  2014;
               (2)  is at least 21 years of age; and
               (3)  has been an owner or manager of a foundation repair
  contracting company for at least 60 months.
         (b)  The department shall issue a journeyman license to a
  qualified applicant who:
               (1)  submits an application not later than September 1,
  2014;
               (2)  is at least 21 years of age; and
               (3)  has worked for a foundation repair contracting
  company as a salesperson, estimator, foreman, or manager for at
  least 24 months.
         Sec. 1003.253.  RENEWAL OF LICENSE. To qualify to renew an
  initial license issued under this subchapter, the license holder
  must comply with the requirements of Section 1003.160.
         Sec. 1003.254.  EXPIRATION OF SUBCHAPTER.  This subchapter
  expires October 1, 2014.
         SECTION 2.  (a)  Notwithstanding the requirement of Section
  1003.052(b)(3), Occupations Code, as added by this Act, the Texas
  Commission of Licensing and Regulation shall appoint persons who
  meet the practical experience requirement for an initial master
  license to serve as initial members of the Foundation Repair
  Contractors Advisory Board as soon as practicable after the
  effective date of this Act.
         (b)  The Texas Commission of Licensing and Regulation shall
  determine with respect to the members of the Foundation Repair
  Contractors Advisory Board appointed under Chapter 1003,
  Occupations Code, as added by this Act, which terms of two members
  expire February 1, 2015, which terms of two members expire February
  1, 2017, and which terms of three members expire February 1, 2019.
         (c)  The changes in law made by Section 1003.153, Occupations
  Code, as added by this Act, apply only to a contract for foundation
  repair entered into or renewed on or after September 1, 2014. A
  contract for foundation repair entered into or renewed before
  September 1, 2014, 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 February 1, 2014.
         (b)  Not later than March 1, 2014, the Texas Commission of
  Licensing and Regulation shall begin accepting applications for and
  issuing licenses under Chapter 1003, Occupations Code, as added by
  this Act.
         (c)  A person is not required to obtain a license to engage in
  foundation repair under Chapter 1003, Occupations Code, as added by
  this Act, before September 1, 2014.
         SECTION 4.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2013.
         (b)  Sections 1003.151, 1003.201, and 1003.202, Occupations
  Code, as added by this Act, take effect September 1, 2014.