Being 'legal' in Texas Operating an LCO/Landscape Business

[jhastrello]

Just thought I would pass on some of the things that I've uncovered, while starting up my lawn care and landscaping business. This is what is needed in the State of Texas. May or may not apply to other states, but does provide somewhat of a starting post.

County Law - In the County that I live (Henderson), we are required to get a Business License, even though we are incorporated within Texas. Not true in all Texas Counties.

When you get your 'State Franchise Tax Number', it IS NOT your State Sales Tax Number. You have to get it separately.

Lawncare and Landscaping in the State of Texas is 'taxable'. Therefore, you must have your State Sales Tax number, and charge sales tax on any Lawn Care and/or Landscaping Services that you perform. Sales Tax is based upon the City/County that your company is registered in.

Pesticide/Fungicide/Weed Killer Treatment - you are required to have a license to apply 'over the counter Pesticide and/or Fungicide treatments in the State of Texas, if you are 'for hire'. Higher degree of license required for 'commerical treatments'.

Fertilizer Treatment - no license required state wide. However local laws prevail. If your fertilizer contains weed killer/pesticide treatment - you need the license.

Irrigation Installation and/or Repair - You must be a Licensed Irrigator through TCEQ (Texas Commission on Environmental Quality) to work on; install; sell; service ANY irrigation system other than your own - on your own property.

I'm certain there are other things that I will find, or I've missed, but these are some of the major ones.

[bohiaa]

it does differ, and there are little " loopholes " to the rules.....

[Toy2]

One one big loophole is working on sprinklers........you claim your a handyman and you get around most of that you posted.........plus work/modify sprinkler systems.........


If we were required to test for a State Lic. and show great insurance coverage, plus enforcement.....it would weed alot of people out.....

[ed2hess]

One one big loophole is working on sprinklers........you claim your a handyman and you get around most of that you posted.........plus work/modify sprinkler systems.........


If we were required to test for a State Lic. and show great insurance coverage, plus enforcement.....it would weed alot of people out.....

Not according to the state.....both my sons are irrigators and just got back from some upgrade classes and they have lowered the boom on installing or working irrigation systems. The local cities are starting to police things because too much water is being wasted by installs and repairs.

[bohiaa]

Not according to the state.....both my sons are irrigators and just got back from some upgrade classes and they have lowered the boom on installing or working irrigation systems. The local cities are starting to police things because too much water is being wasted by installs and repairs.

IT's NOT water being waisted. it's putting CRAP into the drinking water. Poision

If a customer says add a head here, add a zone there.... your just fine.

if you tell a customer he needs a head here and a zone there. your breaking the law

[EagleLandscape]

incorrect.

you cannot even repair a broken sprinkler head in the state of texas unless you are a licensed irrigator. (there are exceptions, home owners, government employees, but a handyman is not legally able to repair sprinklers under the new laws) TAC 30 rules, read em.

And... there is very little contamination from irrigation. Mostly its wasting water, and the like. don't get started on all irrigation systems as high hazards please... not here, not now.

[TPnTX]

Not really a loophole necessarilly but if you do not have a license and you damage a sprinkler on someones property. You can repair it under the direct supervison of a licensed irrigator and they do not have to be present. So if you have a friend or know someone who will w-h-o-r-e out their licsense then you can do it. To comply it's smart to call ahead of time and give all details to the irrigator.

Some consider this taking money from irrigator business but if you have to pay 65-135.00 to fix a 4.00 spray head on a 30.00 mow, then I think everyone can just get over it.

Now there has been some major changes with this regarding installs but as far as I can tell this still works for repairs.

[TPnTX]

[QUOTE=Toy2;2968409]One one big loophole is working on sprinklers........you claim your a handyman and you get around most of that you posted.........plus work/modify sprinkler systems.........
QUOTE]

With all due respect, toy2 you are way wrong and the consequenes of getting caught are steep.

I know a guy who is the president of an HOA. He goes out and works on residents sprinklers as a little side job. He made a couple of bucks and helped out the mostly elderly residents. A disgruntled former HOA president turned him in to TDA. He' in court now and I believe the fine was around 5 grand. I would say he qualified as a handyman.

[jhastrello]

The law currently states (though they may change it), that direct supervision means 'on the job site'. And yes, they are clamping down considerably.

The efforts of the TCEQ here in Texas and the licensing is really geared towards Water Conservation, as opposed to reducing contamination. Laws were toughened about 4-5 years ago during the long drought.

[TPnTX]

That would suggest that a Irrigator can't go to job site and get his crew started and then go somewhere else such as job#2 unless one of the persons on the crew is licensed.

[jhastrello]

That's correct. Irrigator in Charge has to be 'on-site'.

[TPnTX]

then what you saying is that the new laws and regs as on 01-2009 not only apply to installs but service as well.

[jhastrello]

Yes. The TNLA and other's are trying very hard to get this particular part of the law changed, so that the Irrigator in Charge does not have to be 'on-site' all the time, but . . . .

When they talk about the exceptions to the Licensed Irrigator rules/laws, the key phrase is this one:

Homeowner - allowed to build/work on his own system, at his home only (paraphrased - not exact).

One member of my 'class' that I recently took, has a construction company that does decks, concrete, patio's, etc. He added lawn sprinkler maintenance some years ago, as it provides good extra pay. He also put it in his advertising.

The TCEQ called him, and verified that he was the owner; put the ad together; and was doing the work. They basically gave him a 'cease and desist' order, and told him his 'fine' would be in the mail.

[txgrassguy]

then what you saying is that the new laws and regs as on 01-2009 not only apply to installs but service as well.

The current laws as of January 2009 apply to essentially any part of the system.
Additionally some cities are requiring permits now on repairs to the mainline as well as expansion to existing systems.
LCRA is also becoming much more involved when pumping from a standing body of water and are beginning to require permitting as well.
One thing to remember is to have the correct license numbers on your service vehicle in the correct place. TCEQ is beginning to fine unmarked service vehicles even if a current license holder is present.

[TPnTX]

This is nothing to speculate on and it can be quite cumbersome to interpret some of the things especially the new regs.

Just an observation. TECQ uses the term, "Direct Supervison" a lot.
Chapter 30 Page 4, 30.129 Exemptions.
- (3) is under the direct supervision of a licensed irrigator and assists in the installation, maintenance, alteration, repair, or service of an irrigation system; or


They also use the term "on site" often but as you can see it's not on the above line in chapter 30.

For even more confusion an offical TECQ document states the following in a Q/A section.
Q- I install irrigation systems at new home sites and often have two or three crews working side-by-side at several homes at the same time. When the on-site requirement begins January 1, 2010 must I have an irrigator or Irrigation Technician on-site at each site?
A - No, if the irrigator or Irrigation Technician is on-site and “in sight” of the work being performed, only one supervisor would be needed.

and then there is this

(43) Supervision--The on-the-job oversight and direction by a licensed irrigator who is fulfilling his or her professional responsibility to the client and/or employer in compliance with local or state requirements. Also a licensed installer working under the direction of a licensed irrigator or beginning January 1, 2009, an irrigation technician who is working under the direction of a licensed irrigator to install, maintain, alter, repair or service an irrigation system.

It's obvious who drew this stuff up.

A good website to get confused on is
www.h2omgmt.net/new_page_2.htm

[TPnTX]

so basically it boils down to this.

Beginning 2010 An irrigator who has more than 1 crew will be required to have 1 person on each crew be a Licensed Irrigator Technician. That person must be on-site or in-site of each job.

A Company who does not have a Licensed Irrigator can get a Irrigator Tech License and do repairs but he must be supervised,not on-site, by a Irrigator.

An Irrigator can only be Irrigator in Charge for 2 companies. His own and 1 exempt.

So bottom line is, eventually your going to need a Irrigator license to replace heads hit by your mowing crew.

[Toy2]

incorrect.

you cannot even repair a broken sprinkler head in the state of texas unless you are a licensed irrigator. (there are exceptions, home owners, government employees, but a handyman is not legally able to repair sprinklers under the new laws) TAC 30 rules, read em.

And... there is very little contamination from irrigation. Mostly its wasting water, and the like. don't get started on all irrigation systems as high hazards please... not here, not now.


No one around here is scared, it comes down to enforcement...........zero enforcement...........maybe in Dallas or Austin or Houston......but around here its fair game...............

[jhastrello]

Yes, that is correct. Enforcement (for the most part), is left up to the local muncipality and/or people that alert the TCEQ about violations or those that are operating outside the current laws.

[TPnTX]

Yeah all that is true but you have to consider;

You take a property away from another LCO. Right there is some who will turn you in.

A LCO that wants to take it away from you will turn you in.

All cities over 20k population over are now having to hire a bunch of inspectors. Many that aren't that big as well.

And just like the guy who got turned in by a disgruntled former board member.

[Scagguy]

The TCEQ here is cracking down quite a bit. I've heard some stories from an irrigation supply house that would make you think twice before repairing a system without a license.

[Toy2]

The TCEQ here is cracking down quite a bit. I've heard some stories from an irrigation supply house that would make you think twice before repairing a system without a license.

It really is about time, when I lived in NM, I was a licensed plumber and was in the process of getting a plumbing contractor license, then we moved......but long story short......

You had to know what you were doing, physically and mentally (books).........and a legit business........


Not sure if that will ever happen to LCO's................

[Bill Ahlers]

Then Clients wonder why it cost so much to just change a sprinkler head. Thank you to big brother. Granted the general population needs to be supervised at all times.

[jhastrello]

Yeah, they have found their 'teeth', and are taking big hunks out of a lot of backsides.

[ed2hess]

IT's NOT water being waisted. it's putting CRAP into the drinking water. Poision

If a customer says add a head here, add a zone there.... your just fine.

if you tell a customer he needs a head here and a zone there. your breaking the law

You might need to brush up on the new rules guy.....and it is ALL about wasting water. Every person with a cell phone reports water running in the street and the consequences are dire. We manage about 3 miles of HOA properties and it was a nitemare last year to keep water off the street.

And fyi.....you can't break into the water line to add a zone without being an irrigator and the backcheck needs to be checked after work is done by a certified guy. The customer can not remove the responsibilty from an irrigator.......found out a little about that last year. Hotel was running water at wrong time after we had set it correctly. The city blamed us for not telling them they could not water but on certain days.

[bohiaa]

You might need to brush up on the new rules guy.....and it is ALL about wasting water. Every person with a cell phone reports water running in the street and the consequences are dire. We manage about 3 miles of HOA properties and it was a nitemare last year to keep water off the street.

And fyi.....you can't break into the water line to add a zone without being an irrigator and the backcheck needs to be checked after work is done by a certified guy. The customer can not remove the responsibilty from an irrigator.......found out a little about that last year. Hotel was running water at wrong time after we had set it correctly. The city blamed us for not telling them they could not water but on certain days.

YES your right...

and by the way, thanks for the post. it seems we all have diffrent ideals of the rules, and as we all know they change offten.
this post made me go back and reread them, and as much as I hate to admit it. I did need some brushing up.

the long and short of it. sites like this helps us to help each other and keep on our toes...


Thnaks again

[EagleLandscape]

Careful guys.

I got a work order to go and shut off a stuck zone on a bank yesterday. When I showed up, irrigation inspectors showed up as well. I think they wrote up about $3000 in violations.

Enforcement might be few and far between now, but when cities see the money they can obtain by writing violations... it will make cops that run speed traps look like sweet little bunny rabbits.

[jhastrello]

Amen to that! Once the 'Gendarmes' start bringing in the fine money, the tightening of the enforcement will really begin.

Agreed, been a good post. Nice participation.