BILL ANALYSIS



C.S.H.B. 796
By: Carona
4-11-95
Committee Report (Substituted)


BACKGROUND

The Air Conditioning and Refrigeration Contractor License Law
(Article 8861) was originally passed in 1983 to provide consumer
protection and industry relief from widely varying municipality
requirements.  The law requires  persons engaging in environmental
air conditioning, commercial refrigeration, or process heating or
cooling to be examined and licensed by the State of Texas.   The
original law applied only to environmental air conditioning.  In
1987 ventilation was added to the definition of environmental air
conditioning, and commercial refrigeration and process cooling and
heating was added as an endorsement to the same license.


PURPOSE

C.S.H.B. 796 would clarify several areas in the present Air
Conditioning and Refrigeration Contractor License Law to allow for
better administration and enforcement of the law.  It would also
add new provisions related to air conditioning duct cleaning
services and enforcement of contracts of non-licensed contractors.


RULEMAKING AUTHORITY

It is the opinion of the committee that this bill would grant
additional rulemaking authority in SECTION 2 to the Commissioner of
the Department of Licensing and Regulation in designating locations
for examinations and in SECTION 5 to adopt rules relating to the
manner in which proof may be presented for enforcement of
contracts.  SECTION 9 also requires the adoption of rules by the
Commissioner to enforce provisions of the act.


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2(7) and (9), Air Conditioning and
Refrigeration Contractor License Law (Article 8861, V.T.C.S.) to
clarify that the definition of "air conditioning and refrigeration
maintenance work" does not include the repair of boilers or
pressure vessels also adds  duct cleaning to the definition of "air
conditioning and refrigeration contracting." .  

SECTION 2.  Amends Section 3(e), Air Conditioning and Refrigeration
Contractor License Law (Article 8861, V.T.C.S.) by deleting the
requirement to hold examinations only in Travis County and
authorizing the commissioner to designate locations.
 
SECTION 3.   Amends Section 3A, Air Conditioning and Refrigeration
Contractor License Law (Article 8861, V.T.C.S.) by exempting the
advisory board from the provision in Article 6252-33, Revised
Statutes, limiting an advisory board's existence to four years.

SECTION 4.  Amends Section 3B, Air Conditioning and Refrigeration
Contractor License Law (Article 8861, V.T.C.S.) by authorizing
department of licensing and regulation personnel or municipal
officials to issue citations to unlicensed persons performing work
requiring a license under the Law

SECTION 5.  Amends the Air Conditioning and Refrigeration
Contractor Licensing Law (Article 8861, V.T.C.S.) by adding Section
3C to provide that an unlicensed person who performs work requiring
a license may not collect a fee or enforce a contract for that work
and authorizes the Commissioner to adopt rules relating to this
section. 


SECTION 6.    Amends Sections 4(f) and (g), Air Conditioning and
Refrigeration Contractor Licensing Law (Article 8861, V.T.C.S.) by
requiring commissioner to issue a license when furnished evidence
of insurance coverage. 


SECTION 7.  Amends Section 8, Air Conditioning and Refrigeration
Contractor Licensing Law (Article 8861, V.T.C.S.) by changing an
offense for engaging in air conditioning and refrigeration
contracting without a license from a Class B misdemeanor to a Class
A misdemeanor.

SECTION 8.   Limits the application of Sec. 8, Air Conditioning and
Refrigeration Contractor Licensing Law (Article 8861, V.T.C.S.) to
offenses committed on or after the effective date of this act.
 
SECTION 9.  Effective date of September 1, 1995.  The Commissioner
is required to adopt rules as required by Section 3C no later than
December 31, 1995.


SECTION 10.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee Substitute for HB 796 moves the added language "The
term includes the cleaning of equipment and duct materials required
for the proper operation of such a system." from Section (7) to
Section (9) of the Air Conditioning and Refrigeration Contractor
Licensing Law; deletes the section changing the authority to
appoint members of the advisory board from the governor to the
commissioner contained in the original ; the original also provided
for Sale of Certain Equipment Restricted and that language to the
Act has been deleted from the substitute.  

SUMMARY OF COMMITTEE ACTION

HB 796 was heard in a Public Hearing on March 29, 1995.  Rep. Jones
offered a complete committee substitute.  The Chair recognized the
following persons to testify in favor of the bill: 
     Mr. Fred E. Kahn, TACCA;
HB 796 was left pending in committee.  There was no objection.  HB
796 was heard in a Public Hearing on April 11, 1995.  The Chair
called up HB 796 which was pending in committee.   The Chair laid
out a complete committee substitute and moved adoption of CSHB 796. 
There was no objection  Rep. Yarbrough moved that the full
committee adopt HB 796 as substituted, and that it be reported
favorably to the full House with the recommendation that it do pass
and be printed.  The motion prevailed by the following vote:  AYES:
6, NAYS: 0, ABSENT: 3.