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.