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.