BILL ANALYSIS


                                                         S.B. 266
                                                   By: Armbrister
                                                    State Affairs
                                                          2-15-95
                                       Committee Report (Amended)
BACKGROUND

Employees of industrial operations have always been exempt from the
regulation of air conditioning and refrigeration contractors. 
Recent interpretations by the Air Conditioning Contractor Licensing
Board (board), however, have questioned whether maintenance
contractors employed by the industrial operation working on the
secured premises of and in conformity with the safety and
engineering standards of the industrial operation are also exempt. 
Since maintenance contractors are customarily carefully screened
before working on plant equipment, and are subject to the same
plant safety regulations as employees, some members of the industry
have suggested that they are and should be exempt from the
provisions of the law.  In addition, much of the work performed by
maintenance and other contractors involves specialized work not
covered by current testing or the study materials suggested by the
board.

PURPOSE

As proposed, S.B. 266 exempts certain individuals from the
regulation of air conditioning and refrigeration contractors.

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 6(a), Article 8861, V.T.C.S. (Air
Conditioning and Refrigeration Contractor License Law), to provide
that a person who performs process cooling or heating work for and
on the premises of an industrial operation to which the general
public is not routinely granted access is exempt from the
regulation of air conditioning and refrigeration contractors,
rather than exempt only when the person is employed by that
operation.  Defines "industrial operation."

SECTION 2. Effective date:  September 1, 1995.

SECTION 3. Emergency clause.