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Relating to the regulation of reroofing contractors; providing administrative and civil penalties; authorizing fees; requiring an occupational registration.
Estimated Two-year Net Impact to General Revenue Related Funds for HB 2101, Committee Report 1st House, Substituted: a positive impact of $623,218 through the biennium ending August 31, 2021.
More detail from the Legislative Budget Board:
Based on the analysis provided by TDLR, it is assumed the population of reroofing contractors
that would obtain registration in the first year would be 3,000 persons, with an additional 3,000
applying for the first time the following year,and approximately 500 new registrations each year
after the second year. The bill would allow the registration term to be good for two years.
Assuming the maximum allowable fees of $250 for initial registrations and $100 for renewals are
assessed, this would result in a gain to General Revenue of $750,000 in fiscal year 2020, $750,000
in fiscal year 2021, $425,000 in each fiscal year thereafter.
HB 2101 would create a mandatory registration requirement for reroofers. Reroofing is the repair or remodel of an existing roof, as opposed to the construction of a roof on a new build. Certain exemptions would apply.
The Texas Department of Licensing and Regulation (TDLR) would be required to administer and enforce the provisions of the bill. The Commission on Licensing and Regulation (commission) would be required to establish the requirements for the issuance and renewal of a reroofing registration. The commission would establish and collect fees to cover the cost of administering the registration program. An original registration fee may not exceed $250 and a renewal registration may not exceed $100.
TDLR would be required to publish on its website a database of all registered reroofing contractors who are in good standing. The list must be searchable by name and location and contain certain specified information. A county or municipal government would be prohibited from contracting for a reroofing project without verifying that the applicant is a registered reroofing contractor or exempt from registration.
A registration would be required to be issued within ten days of receipt of an application. A registration would be valid for two years.
A registered reroofing contractor would be prohibited from advertising or promising to pay or rebate all or part of an insurance deductible in connection with a reroofing project.
Before engaging in a reroofing project, a registered reroofing contractor would be required to provide a written contract to the property owner and the contract must be executed prior to beginning work on the project.
The commission would be allowed to impose sanctions or issue a cease and desist order under certain circumstances. Civil penalties would be allowed to be assessed up to $500 per violation.
Texas Action opposes HB 2121 which violates the principles of free markets and limited government. Mandatory registration of this nature is a form of occupational licensure and the first step toward eventual full licensure for this profession. We oppose new mandatory occupational registration and licensure requirements which are antithetical to free markets and impose more government regulations that increase barriers to entry and protect entrenched businesses from unwanted competition.