BILL ANALYSIS



C.S.H.B. 801
By: Carona
4-11-95
Committee Report (Substituted)


BACKGROUND

Section 23(c) of The Real Estate License Act (Article 6573a,
V.T.C.S.) relates to persons who may conduct real estate
inspections.  Under present law, there are no specific requirements
regarding the qualifications of a person who inspects air
conditioning systems as part of a real estate inspection.


PURPOSE

C.S.H.B. 801 would require a business entity that inspects air
conditioning equipment in a residential or commercial property as
part of a real estate inspection to employ a person who is licensed
as an air conditioning and refrigeration contractor and provides
that an employee who does not hold an air conditioning and
refrigeration contractor license may perform the inspection under
the direction of the license holder.


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 23(c), The Real Estate License Act
(Article 6573a, V.T.C.S.), by adding Subdivision (4).  Requires a
business entity that inspects an environmental air conditioning
system, commercial refrigeration system, or process cooling or
heating system (as defined in Section 2 of the Air Conditioning and
Refrigeration Contractor License Law (Article 8861, V.T.C.S.) as
part of a real estate inspection to employ a person who holds the
appropriate air conditioning and refrigeration contractor licenses
and endorsements under the Air Conditioning and Refrigeration
Contractor License Law.  An employee who does not hold a license or
endorsement under the Air Conditioning and Refrigeration Contractor
License Law may perform the inspection under the direction of the
license holder.  Also adds new definition of  "inspection" of 
systems.  

SECTION 2.  Effective date:  September 1, 1995.  Change in law
applicable to inspections conducted on or after effective date.  

SECTION 3.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The Committee Substitute for HB 801 includes a specific definition
of "inspection of environmental air conditioning, commercial
refrigeration, and process cooling and heating equipment" and
deletes reference contained in the original  to these terms having
the meanings assigned by Section 2, Air Conditioning and
Refrigeration Contractor License Law.



SUMMARY OF COMMITTEE ACTION

HB 801 was heard in a Public Hearing on March 29, 1995.  Rep.
Goolsby 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 801 was left pending in committee.  There was no objection.  HB
801 was heard in a Public Hearing on April 11, 1995.  The Chair
called up HB 801 which was pending in committee.  There was no
objection.  Rep. Goolsby offered a complete committee substitute to
HB 801 and moved adoption of CSHB 801.  There was no objection. 
Rep. Yarbrough moved that the full committee adopt HB 801 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.