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.