BILL ANALYSIS



C.S.H.B. 800
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.

Under current law, a license issued by a municipality of Texas is
valid under the terms of the license within that municipality,
while a license issued under the Air Conditioning and Refrigeration
Contractor License Law is valid throughout the state. 
Municipalities are authorized by ordinance to adopt and enforce
standards for air conditioning and refrigeration contractors that
are consistent with the standards established under the statewide
license law.


PURPOSE

C.S.H.B. 800 would require that the fee a municipality charges an
air conditioning and refrigeration contractor for recording the
state license number of the contractor be both a reasonable and
necessary fee.  It would require an applicant for a municipal
license to pass an examination that covers the same areas as the
examination required for the state air conditioning and
refrigeration contractor license and meet experience requirements
that are at least as strict as those required under the state Air
Conditioning and Refrigeration Contractor License Law.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Air Conditioning and Refrigeration
Contractor License Law (Article 8861, V.T.C.S.) Requires a fee
imposed by a municipality on an air conditioning and refrigeration
contractor, to provide notice that he has obtained a state license,
be a reasonable fee.

SECTION 2.  Amends Section 9, Air Conditioning and Refrigeration
Contractor License Law (Article 8861, V.T.C.S.)  Requires an
applicant for a municipal license to pass an examination that
covers the same areas as the examination required for the state air
conditioning and refrigeration contractor license and meet
experience requirements that are at least as strict as those
required under the state Air Conditioning and Refrigeration
Contractor License Law.

SECTION 3.  Limits the application of Section 9, as amended by this
Act, to a municipal license issued or renewed on or after September
1, 1995, and requires municipalities to adopt examination
requirements in compliance with this Act not later than January 1,
1996.  Provides that a person who holds a municipal license on
September 1, 1995, must satisfy the examination requirements
imposed under Section 9(b) of this Act by June 1, 1996, in order to
continue to engage in the practice of air conditioning and
refrigeration contracting.

SECTION 4.   Effective date:  September 1, 1995.

SECTION 5.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee Substitute for HB 800 changes the wording in SECTION
1,  to require that the fee imposed by a municipality on a
contractor to provide notice under this section,  must be a
reasonable and necessary fee and deletes the phrase "may not exceed
the cost incurred by the municipality in recording the state
license number of the contractor" that was contained in the
original.  Also the substitute changes the wording in SECTION 2  to
require that an applicant for a municipal license must pass an
examination that covers the same subjects as the examination
required by the commissioner and deletes the phrase "is as least as
comprehensive".

SUMMARY OF COMMITTEE ACTION

HB 800 was heard in a Public Hearing on March 29, 1995.  Rep.
Yarbrough offered a complete committee substitute.  There was no
objection.  The Chair recognized the following persons to testify
in favor of the bill:
     Mr. Fred E. Kahn, TACCA;
HB 800 was left pending in committee.  There was no objection.  HB
800 was heard in a Public Hearing on April 11, 1995.  The Chair
called up HB 800 which was pending in committee.  There was no
objection.  Rep. Yarbrough offered a complete committee substitute,
and moved that the full committee adopt CSHB 800.  There was no
objection.  Rep. Yarbrough moved that the full committee adopt HB
800 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.