BILL ANALYSIS
H.B. 796
By: Carona (Cain)
Economic Development
05-24-95
Senate Committee Report (Unamended)
BACKGROUND
The Air Conditioning and Refrigeration Contractor License Law
(Article 8861, V.T.C.S.) was originally passed in 1983 for 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
As proposed, H.B. 796 clarifies the present Air Conditioning and
Refrigeration Contractor License Law to allow for better
administration and enforcement of contracts, including setting
forth regulations regarding persons contracting without a license,
the licensing and training of contractors, and air conditioning
duct cleaning services; provides a criminal penalty.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the commissioner of licensing and regulation under SECTION 5
(Section 3C, Article 8861, V.T.C.S.) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 2(7) and (9), Article 8861, V.T.C.S.
(Air Conditioning and Refrigeration Contractor License Law), to
redefine "air conditioning and maintenance work" and "air
conditioning and refrigeration contracting."
SECTION 2. Amends Section 3(e), Article 8861, V.T.C.S., to require
examinations administered under this Act to be offered on a
quarterly basis at locations designated by the commissioner of
licensing and regulation (commissioner), rather than being offered
only in Travis County.
SECTION 3. Amends Section 3A, Article 8861, V.T.C.S., by adding
Subsection (i), to provide that Section 8, Article 6252-33,
V.T.C.S., does not apply to the Air Conditioning and Refrigeration
Contractors Advisory Board (board).
SECTION 4. Amends Section 3B, Article 8861, V.T.C.S., as follows:
Sec. 3B. New heading: LICENSE REQUIRED; CITATION. (a)
Created from existing text.
(b) Authorizes a representative of the Texas Department of
Licensing and Regulation or a municipal official to issue a
citation to a person who performs air conditioning and
refrigeration contracting without a license issued under
this Act. Provides that a municipal court has concurrent
jurisdiction with a justice court of a precinct in which the
municipality is located in a case arising from a citation
issued under this subsection.
SECTION 5. Amends Article 8861, V.T.C.S., by adding Section 3C, as
follows:
Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) Prohibits a person
who performs air conditioning and refrigeration contracting
without holding a license from collecting a fee or enforcing
a contract for services performed. Requires the person
performing the services to present proof that the person holds
a license when the contract is signed and the work performed
to enforce an air conditioning or refrigeration contract.
(b) Requires the commissioner to adopt rules relating to the
manner in which proof may be presented.
SECTION 6. Amends Sections 4(f) and (g), Article 8861, V.T.C.S.,
as follows:
(f) Deletes existing Subdivision (1) requiring the license
application to be accompanied by evidence of insurance
coverage required under this Act. Redesignates existing
Subdivisions (2) and (3) as Subdivisions (1) and (2).
(g) Requires the commissioner to issue an air conditioning and
refrigeration license to an applicant who furnishes evidence
of insurance coverage required under this Act, among other
requirements. Deletes language providing that the applicant
pay the examination fee as a stipulation to getting a license.
SECTION 7. Amends Section 7, Article 8861, V.T.C.S., as follows:
Sec. 7. REPORTING REQUIREMENT. (a) Created from existing
text. Makes a nonsubstantive change.
(b) Created from existing text.
(c) Requires the amount of a fee imposed by a municipality
on a contractor to provide notice to be an amount necessary
to implement this section.
SECTION 8. Amends Section 8, Article 8861, V.T.C.S., to provide
that an offense under this section is a Class A, rather than Class
B, misdemeanor.
SECTION 9. Amends Section 9, Article 8861, V.T.C.S., as follows:
Sec. 9. MUNICIPAL REGULATION. (a) Makes a conforming change.
(b) Sets forth requirements for an applicant for a municipal
license.
(c) Redesignates existing Subsection (b).
SECTION 10. Amends Section 23(c), Article 6573a, V.T.C.S. (Real
Estate License Act), by adding Subdivision (4), to require a
business entity that inspects an environmental air conditioning
system, commercial refrigeration system, or process cooling or
heating system as part of a real estate inspection to employ a
person who holds the appropriate licenses and endorsements under
Article 8861, V.T.C.S. Authorizes an employee who does not hold a
license or endorsement under Article 8861, V.T.C.S., to perform the
inspection under the direction of the license holder. Defines
"inspection."
SECTION 11. Amends Section 32.12(a), Education Code, to redefine
"proprietary school" to include a course or training program
conducted by a nonprofit association of air conditioning and
refrigeration contractors approved by the board, to provide
instruction for technical business, or license examination programs
relating to air conditioning and refrigeration contracting.
SECTION 12. Amends Section 25, Article 6573b, V.T.C.S.
(Residential Service Company Act), to include in the list of
persons exempted from the provisions of this Act any person who
performs air conditioning and refrigeration contracting in
compliance with Article 8861, V.T.C.S. Makes conforming changes.
SECTION 13. Makes application of the changes in law made to
Section 8, Article 8861, V.T.C.S., by this Act prospective.
SECTION 14. (a) Applies the change in law made to Section 9,
Article 8861, V.T.C.S., by this Act to a municipal license that is
issued or renewed on or after the effective date of this Act.
Requires a municipality subject to that section to adopt
examination requirements in compliance with that section by January
1, 1996, except as provided by Subsection (b).
(b) Requires a person who holds a municipal license on the
effective date of this Act to satisfy the examination
requirements imposed under Section 9(b), Article 8861,
V.T.C.S., by June 1, 1996, to continue to engage in the
practice of air conditioning and refrigeration contracting
after September 1, 1995.
SECTION 15. (a) Effective date: September 1, 1995.
(b) Requires the commissioner to adopt rules as required by
Section 3C, Article 8861, V.T.C.S., as amended by this Act, by
December 31, 1995.
(c) Makes application of the changes made to Section 23(c),
Article 6573a, V.T.C.S, by this Act prospective.
(d) Makes application of the changes made to Section 32.12(a),
Education Code, by this Act prospective.
(e) Makes application of the changes made to Section 25,
Article 6573b, V.T.C.S, by this Act prospective.
SECTION 16. Emergency clause.