83R7955 PMO-F
	By: Carona	S.B. No. 19

	A BILL TO BE ENTITLED
	AN ACT
	relating to certain residential and other structures and mitigation
	of loss to those structures resulting from natural catastrophes;
	providing administrative and criminal penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle C, Title 2, Insurance Code, is amended
	by adding Chapter 152 to read as follows:
	CHAPTER 152. LOSS MITIGATION PROGRAMS
	Sec. 152.001.  DEFINITIONS. In this chapter:
	(1)  "Construction" includes alteration, remodeling,
	enlargement, or repair of, or an addition to, a structure.
	(2)  "Mitigation measure" means an improvement to or
	feature of a structure that reduces the risk or amount of loss from
	a covered loss under a residential property insurance policy.
	(3)  "Qualified inspector" includes:
	(A)  an inspector certified by:
	(i)  the International Code Council;
	(ii)  the Building Officials and Code
	Administrators International, Inc.;
	(iii)  the International Conference of
	Building Officials; or
	(iv)  the Southern Building Code Congress
	International, Inc.;
	(B)  a licensed professional engineer whose name
	appears on the roster described by Section 1001.652, Occupations
	Code; or
	(C)  a person who meets the requirements for
	appointment to conduct windstorm inspections as specified by the
	commissioner by rule.
	(4)  "Seacoast territory" has the meaning assigned by
	Section 2210.003.
	(5)  "Trade association" means a nonprofit,
	cooperative, and voluntarily joined association of business or
	professional competitors designed to assist its members and its
	industry or profession in dealing with mutual business or
	professional problems and in promoting their common interest.
	Sec. 152.002.  ESTABLISHMENT OF PROGRAMS; PURPOSE.  (a) The
	commissioner in cooperation with the office of public insurance
	counsel shall develop and implement statewide emergency
	preparedness and loss mitigation programs designed to reduce
	potential insured residential property losses in this state.
	(b)  The programs may:
	(1)  improve preparedness for windstorm, hail,
	wildfire, and other natural catastrophes;
	(2)  reduce the risk and amount of potential insured
	residential property losses arising from windstorm, hail,
	wildfire, and other natural catastrophes;
	(3)  provide grants for loss mitigation measures; and
	(4)  promote public education about  emergency
	preparedness and loss mitigation related to windstorm, hail,
	wildfire, and other natural catastrophes.
	(c)  The department and the office of public insurance
	counsel may enter into an interagency contract or other agreements
	with each other as appropriate to implement this chapter. The
	department or the office of public insurance counsel, jointly or
	severally, may enter into agreements with any individual or entity,
	including a political subdivision, a state or federal agency, a
	trade association, a university, or a nonprofit entity or other
	private entity as appropriate to implement this chapter.
	Sec. 152.003.  FUNDING FOR LOSS MITIGATION GRANT PROGRAM.
	The department in cooperation with the office of public insurance
	counsel shall use its best efforts to obtain funding for loss
	mitigation grants available under Section 152.005, including
	obtaining:
	(1)  grants from any individual or entity, including a
	political subdivision, a state or federal agency, a trade
	association, a university, or a nonprofit entity or other private
	entity; or
	(2)  gifts or grants of money or in kind.
	Sec. 152.004.  ADDITIONAL FUNDING FOR LOSS MITIGATION GRANTS
	IN SEACOAST TERRITORY. The Texas Windstorm Insurance Association,
	at the direction of the commissioner, shall provide money described
	by Section 2210.454 in an amount determined by the commissioner to
	provide funding in addition to the funding under Section 152.003
	for grants available only to residential property owners in the
	seacoast territory.
	Sec. 152.005.  LOSS MITIGATION GRANT PROGRAM. (a)  The
	commissioner in cooperation with the office of public insurance
	counsel may establish and administer a grant program to provide to
	residential property owners financial assistance to implement
	mitigation measures.
	(b)  Subject to eligibility requirements determined by the
	commissioner by rule, grants under this section may be made
	available to residential property owners in areas susceptible to
	windstorm, hail, wildfire, and other natural catastrophes as
	determined by the commissioner by rule.
	(c)  Grants may be made available for implementation,
	addition, or installation of mitigation measures, including:
	(1)  roof deck attachments;
	(2)  secondary water barriers;
	(3)  roof coverings;
	(4)  brace gable ends;
	(5)  roof-to-wall connection reinforcements;
	(6)  exterior opening protections;
	(7)  exterior doors, including garage doors;
	(8)  tie downs;
	(9)  reinforcements of trusses, studs, or other
	structural components; or
	(10)  other mitigation measures approved by the
	commissioner by rule.
	(d)  The commissioner may adopt by rule quality standards
	applicable to the mitigation measures described by Subsection (c).
	Sec. 152.006.  LOSS MITIGATION CREDIT AND SURCHARGE PROGRAM.
	(a)  The commissioner by rule may identify actuarially justified
	premium credits that may be given for a residential property
	insurance policy if mitigation measures identified by the
	commissioner by rule have been implemented, added, or installed in
	an insured structure or in the construction of the structure.
	(b)  The commissioner by rule may adopt an actuarially
	justified premium surcharge that may be imposed by an insurer for a
	residential property insurance policy if the insured structure or
	the construction of the structure does not meet building code
	standards adopted by the commissioner by rule. The surcharge shall
	be retained by the insurer issuing the policy for which the
	surcharge is paid.
	(c)  The commissioner by rule may require inspection by a
	qualified inspector of an insured structure or the construction of
	the structure for a property owner to qualify for a premium credit
	or to be subject to a premium surcharge under this section.
	(d)  The commissioner shall adopt rules necessary to
	implement and enforce this section, including rules that:
	(1)  adopt building code standards; and
	(2)  define "actuarially justified" for the purposes of
	this section.
	Sec. 152.007.  COLLECTION OF INFORMATION; PUBLIC
	AVAILABILITY. (a)  The department may collect information relating
	to premium credits and surcharges:
	(1)  related to loss mitigation generally; or
	(2)  authorized under Section 152.006.
	(b)  The information collected under Subsection (a) may
	include:
	(1)  the name of a credit or surcharge;
	(2)  the amount of a credit or surcharge;
	(3)  mitigation measures eligible for a credit;
	(4)  building code standards that must be met to avoid a
	surcharge; and
	(5)  other information the commissioner in cooperation
	with the office of public insurance counsel reasonably believes
	promotes the purpose of this chapter.
	(c)  The information collected under this section may be used
	in connection with the public education program established under
	Section 152.009.
	(d)  The information collected under this section must be:
	(1)  made available to the public;
	(2)  posted on the department's Internet website; and
	(3)  posted on the Internet website of the office of
	public insurance counsel.
	(e)  The department and the office of public insurance
	counsel shall take all reasonable precautions to prevent disclosure
	or use of personal information obtained in the collection of
	information under this section.
	Sec. 152.008.  FUNDING FOR PUBLIC EDUCATION PROGRAM. The
	department in cooperation with the office of public insurance
	counsel shall use its best efforts to obtain funding for the public
	education program established under Section 152.009, including
	obtaining:
	(1)  grants from any individual or entity, including a
	political subdivision, a state or federal agency, a trade
	association, a university, or a nonprofit entity or other private
	entity; or
	(2)  gifts or grants of money or in kind.
	Sec. 152.009.  PUBLIC EDUCATION PROGRAM. (a)  The
	commissioner in cooperation with the office of public insurance
	counsel may create a public education program to educate and inform
	the public about:
	(1)  the programs established under this chapter;
	(2)  the appropriateness of particular mitigation
	measures in certain circumstances;
	(3)  the availability of credits described by this
	chapter; and
	(4)  the imposition of surcharges described by this
	chapter.
	(b)  To develop and implement the public education program,
	the department in cooperation with the office of public insurance
	counsel may coordinate or collaborate with any individual or
	entity, including a political subdivision, a state or federal
	agency, a trade association, a university, or a nonprofit entity or
	other private entity.
	SECTION 2.  Sections 2210.454(a), (b), and (d), Insurance
	Code, are amended to read as follows:
	(a)  The commissioner shall annually develop and implement a
	mitigation and preparedness plan in coordination with the loss
	mitigation programs authorized under Chapter 152.
	(b)  Each state fiscal year, the department may fund the
	mitigation and preparedness plan and provide additional funding for
	the loss mitigation program as described by Section 152.004 using
	available funds.
	(d)  Money in excess of $1 million may not be used under this
	section or provided to the loss mitigation program described by
	Section 152.004 if the commissioner determines that an expenditure
	of investment income from the trust fund would jeopardize the
	actuarial soundness of the fund or materially impair the ability of
	the fund to serve the state purposes for which the fund was
	established.
	SECTION 3.  Sections 233.153(a), (c), and (f), Local
	Government Code, are amended to read as follows:
	(a)  New residential construction of a single-family house
	or duplex in the unincorporated area of a county [to which this
	subchapter applies] shall conform to the version of the
	International Residential Code published as of May 1, 2008, or the
	version of the International Residential Code that is applicable in
	the county seat of that county.
	(c)  If a municipality [located within a county to which this
	subchapter applies] has adopted a building code in the
	municipality's extraterritorial jurisdiction, the building code
	adopted by the municipality controls and building code standards
	under this subchapter have no effect in the municipality's
	extraterritorial jurisdiction.
	(f)  Except as provided by Section 233.1546, a [A] county may
	not charge a fee to a person subject to standards under this
	subchapter to defray the costs of enforcing the standards.
	SECTION 4.  Sections 233.154(b) and (c), Local Government
	Code, are amended to read as follows:
	(b)  Before [If required by a county to which this subchapter
	applies, before] commencing new residential construction, the
	builder shall provide notice to the county on a form prescribed by
	the county of:
	(1)  the location of the new residential construction;
	(2)  the approximate date by which the new residential
	construction will be commenced; and
	(3)  the version of the International Residential Code
	that will be used to construct the new residential construction
	before commencing construction.
	(c)  Not [If required by the county, not] later than the 10th
	day after the date of the final inspection under this section, the
	builder shall submit notice of the inspection stating whether or
	not the inspection showed compliance with the building code
	standards applicable to that phase of construction in a form
	required by the county to:
	(1)  the county employee, department, or agency
	designated by the commissioners court of the county to receive the
	information; and
	(2)  the person for whom the new residential
	construction is being built, if different from the builder.
	SECTION 5.  Subchapter F, Chapter 233, Local Government
	Code, is amended by adding Sections 233.1545 and 233.1546 to read as
	follows:
	Sec. 233.1545.  CERTIFICATION OF COMPLIANCE; CONNECTION OF
	UTILITIES. (a) A county shall require the issuance of a
	certificate of compliance as a precondition to obtaining utility
	services as provided by this section.
	(b)  Not later than the fifth business day after the date a
	notice of inspection described by Section 233.154(c) stating that
	the inspection showed compliance with applicable building code
	standards is received, the county shall issue the party submitting
	the notice a written certificate of compliance.
	(c)  An electric, gas, water, or sewer service utility may
	not permanently serve or connect new residential construction of a
	single-family house or duplex as described by Section 233.151(a)(1)
	with electricity, gas, water, sewer, or other utility service
	unless the utility receives a certificate issued by the county
	under Subsection (b).
	(d)  Subsection (c) does not prevent the temporary use or
	connection of utilities necessary to complete new residential
	construction, including temporary use or connection of utilities to
	pass an inspection under this subchapter.
	Sec. 233.1546.  FEES. A county may charge a reasonable fee
	to issue a certificate of compliance under Section 233.1545.  The
	fees, aggregated annually, may not exceed the annual cost of
	issuing the certificates under Section 233.1545.
	SECTION 6.  Title 8, Occupations Code, is amended by adding
	Chapter 1307 to read as follows:
	CHAPTER 1307. ROOFING CONTRACTORS
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 1307.001.  SHORT TITLE.  This chapter may be cited as
	the Roofing Contractor Consumer Protection Act.
	Sec. 1307.002.  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. 1307.003.  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. 1307.004.  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. 1307.051.  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. 1307.052.  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. 1307.053.  COMPENSATION. Advisory board members may
	not receive compensation for serving as a member.
	SUBCHAPTER C.  POWERS AND DUTIES OF DEPARTMENT AND COMMISSION
	Sec. 1307.101.  GENERAL POWERS AND DUTIES. The department,
	executive director, or commission, as appropriate, may take action
	as necessary to administer and enforce this chapter.
	Sec. 1307.102.  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. 1307.103.  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. 1307.104.  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. 1307.151.  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. 1307.152.  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. 1307.153.  TERM OF LICENSE.  A license issued under this
	chapter is valid for one year.
	Sec. 1307.154.  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. 1307.201.  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. 1307.202.  COMPLIANCE WITH LOCAL REQUIREMENTS.  A
	roofing contractor shall comply with local ordinances and
	regulations relating to standards and permits for roofing services.
	Sec. 1307.203.  OBTAINING 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. 1307.204.  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. 1307.205.  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. 1307.206.  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. 1307.251.  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. 1307.252.  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. 1307.253.  SANCTIONS. The commission may impose
	sanctions as provided by Section 51.353.
	Sec. 1307.254.  CRIMINAL PENALTY. (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 7.  Section 233.152, Local Government Code, is
	repealed.
	SECTION 8.  Chapter 152, Insurance Code, as added by this
	Act, applies only to an insurance policy that is delivered, issued
	for delivery, or renewed on or after January 1, 2014. A policy
	delivered, issued for delivery, or renewed before January 1, 2014,
	is governed by the law as it existed immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	SECTION 9.  (a)  Except as provided by Subsection (b) of this
	section, Subchapter F, Chapter 233, Local Government Code, as
	amended by this Act, applies only to new residential construction
	that commences on or after the effective date of this Act.
	(b)  In a county that, before the effective date of this Act,
	required notice under Section 233.154(b), Local Government Code, as
	it existed before amendment by this Act, Subchapter F, Chapter 233,
	Local Government Code, as amended by this Act, applies only to new
	residential construction for which notice was given on or after the
	effective date of this Act.
	SECTION 10.  Not later than February 1, 2014, 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 1307, Occupations
	Code, as added by this Act.
	SECTION 11.  The Texas Department of Licensing and
	Regulation shall issue a roofing contractor license under Chapter
	1307, Occupations Code, as added by this Act, to an applicant who:
	(1)  applies for a license under this section not later
	than June 1, 2014;
	(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 1307.002, Occupations Code,
	as added by this Act; and
	(4)  pays the application fee established by the Texas
	Commission of Licensing and Regulation.
	SECTION 12.  (a)  Except as provided by Subsection (b) of
	this section, this Act takes effect September 1, 2013.
	(b)  Section 1307.151, Occupations Code, and Subchapters E
	and F, Chapter 1307, Occupations Code, as added by this Act, take
	effect September 1, 2014.