By Carona H.B. No. 796
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of air conditioning and refrigeration
1-3 contractors; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 2(7) and (9), Air Conditioning and
1-6 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-7 Civil Statutes), are amended to read as follows:
1-8 (7) "Air conditioning and refrigeration maintenance
1-9 work" means repair work and all other work required for the
1-10 continued normal performance of an environmental air conditioning
1-11 system, commercial refrigeration system or equipment, or process
1-12 cooling or heating system. The term does not include the
1-13 installation of a total replacement of the system or the
1-14 installation or repair of boilers or pressure vessels <that must be
1-15 installed by licensed persons pursuant to rules and regulations
1-16 adopted by the commissioner> under Chapter 755, Health and Safety
1-17 Code.
1-18 (9) "Air conditioning and refrigeration contracting"
1-19 means the design, installation, construction, maintenance,
1-20 service, repair, alteration, or modification of a product or of
1-21 equipment in environmental air conditioning, commercial
1-22 refrigeration, or process cooling or heating systems. The term
1-23 includes cleaning equipment and duct materials as required for the
1-24 proper operation of such a system.
2-1 SECTION 2. Section 3(e), Air Conditioning and Refrigeration
2-2 Contractor License Law (Article 8861, Vernon's Texas Civil
2-3 Statutes), is amended to read as follows:
2-4 (e) The commissioner shall prescribe the method and content
2-5 of examinations administered under this Act and shall set
2-6 compliance requirements for the examinations. The examinations
2-7 <shall be offered only in Travis County and> shall be offered on a
2-8 quarterly basis at locations designated by the commissioner.
2-9 SECTION 3. Section 3A, Air Conditioning and Refrigeration
2-10 Contractor License Law (Article 8861, Vernon's Texas Civil
2-11 Statutes), is amended by adding Subsection (i) to read as follows:
2-12 (i) Section 8, Article 6252-33, Revised Statutes, does not
2-13 apply to the advisory board.
2-14 SECTION 4. Section 3B, Air Conditioning and Refrigeration
2-15 Contractor License Law (Article 8861, Vernon's Texas Civil
2-16 Statutes), is amended to read as follows:
2-17 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
2-18 is exempted under Section 6 of this Act, a person may not perform
2-19 air conditioning and refrigeration contracting without a license
2-20 under this Act.
2-21 (b) A representative of the department or a municipal
2-22 official may issue a citation to a person who performs air
2-23 conditioning and refrigeration contracting without a license issued
2-24 under this Act. To the extent authorized by Chapter 29, Government
2-25 Code, the municipal court has concurrent jurisdiction with a
2-26 justice court of a precinct in which the municipality is located in
2-27 a case arising from a citation issued under this subsection.
3-1 SECTION 5. The Air Conditioning and Refrigeration Contractor
3-2 License Law (Article 8861, Vernon's Texas Civil Statutes) is
3-3 amended by adding Section 3C to read as follows:
3-4 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
3-5 performs air conditioning and refrigeration contracting without
3-6 holding the appropriate license under this Act may not collect a
3-7 fee or otherwise enforce a contract for the services performed. To
3-8 enforce a contract for the performance of air conditioning and
3-9 refrigeration contracting, the person who performs the services
3-10 must present proof that the person holds a license under this Act
3-11 at the time the contract is signed and the work performed.
3-12 (b) The commissioner shall adopt rules relating to the
3-13 manner in which proof may be presented under this section.
3-14 SECTION 6. Sections 4(f) and (g), Air Conditioning and
3-15 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
3-16 Civil Statutes), are amended to read as follows:
3-17 (f) The application must be made on a form prescribed by the
3-18 commissioner and must specify the class of license and each
3-19 endorsement the applicant seeks. The application must be verified
3-20 and must be accompanied by:
3-21 (1) <evidence of the insurance coverage required under
3-22 this Act;>
3-23 <(2)> a statement of the applicant's practical
3-24 experience; and
3-25 (2) <(3)> the examination fee.
3-26 (g) The commissioner shall issue an air conditioning and
3-27 refrigeration contractor license to an applicant who possesses the
4-1 required qualifications, passes the appropriate examinations,
4-2 furnishes evidence of the insurance coverage required under this
4-3 Act, and pays the <examination fee and the> original license fee
4-4 required by this Act. An applicant who fails an examination is
4-5 eligible for reexamination.
4-6 SECTION 7. Section 7, Air Conditioning and Refrigeration
4-7 Contractor License Law (Article 8861, Vernon's Texas Civil
4-8 Statutes), is amended to read as follows:
4-9 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
4-10 and refrigeration contractor <person> licensed under this Act shall
4-11 notify the municipal authority who has control of the enforcement
4-12 of regulations relative to air conditioning and refrigeration
4-13 contracting in the municipality in which the person is engaged in
4-14 air conditioning and refrigeration contracting that the person has
4-15 obtained a state license.
4-16 (b) The notification must be in the form required by the
4-17 municipality.
4-18 (c) The amount of a fee imposed by a municipality on a
4-19 contractor to provide notice under this section must be an amount
4-20 reasonable and necessary to implement this section.
4-21 SECTION 8. Section 8, Air Conditioning and Refrigeration
4-22 Contractor License Law (Article 8861, Vernon's Texas Civil
4-23 Statutes), is amended to read as follows:
4-24 Sec. 8. PENALTY. Except as provided in Section 9, a person
4-25 commits an offense if the person knowingly or intentionally engages
4-26 in air conditioning and refrigeration contracting without a license
4-27 issued under this Act. An offense under this section is a Class A
5-1 <B> misdemeanor.
5-2 SECTION 9. Section 9, Air Conditioning and Refrigeration
5-3 Contractor License Law (Article 8861, Vernon's Texas Civil
5-4 Statutes), is amended to read as follows:
5-5 Sec. 9. Municipal Regulation. (a) A license issued by a
5-6 municipality of this state that complies with the requirements of
5-7 this section is valid under the terms of the license within that
5-8 municipality. However, a license issued under this Act is valid
5-9 throughout the state, and the holder and people under supervision
5-10 are not required to hold a municipal license to practice air
5-11 conditioning and refrigeration contracting in any municipality
5-12 within this state.
5-13 (b) An applicant for a municipal license must:
5-14 (1) pass an examination that covers the same subjects
5-15 as the examination required by the commissioner for an air
5-16 conditioning and refrigeration contractor license of the class of
5-17 work that the municipal applicant proposes to perform; and
5-18 (2) meet experience requirements that are at least as
5-19 strict as those required under Section 4(e) of this Act for an air
5-20 conditioning and refrigeration contractor license.
5-21 (c) A municipality may by ordinance adopt and enforce
5-22 standards for air conditioning and refrigeration contractors that
5-23 are consistent with the standards established under this Act. The
5-24 municipality shall report violations of the ordinance to the
5-25 commissioner not later than the 10th day after the date on which
5-26 the municipality takes action to enforce the ordinance. Conviction
5-27 of an offense under the municipal ordinance is a ground for the
6-1 denial, suspension, or revocation of a license issued under this
6-2 Act.
6-3 SECTION 10. Section 23(c), The Real Estate License Act
6-4 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
6-5 adding Subdivision (4) to read as follows:
6-6 (4) In addition to the license requirements imposed
6-7 under Subdivisions (1)-(3) of this subsection, a business entity
6-8 that inspects an environmental air conditioning system, commercial
6-9 refrigeration system, or process cooling or heating system as part
6-10 of a real estate inspection conducted under this Act must employ a
6-11 person who holds the appropriate air conditioning and refrigeration
6-12 contractor licenses and endorsements under the Air Conditioning and
6-13 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
6-14 Civil Statutes). An employee who does not hold a license or
6-15 endorsement under the Air Conditioning and Refrigeration Contractor
6-16 License Law (Article 8861, Vernon's Texas Civil Statutes) may
6-17 perform the inspection under the direction of the license holder.
6-18 For purposes of this Act, "inspection" of environmental air
6-19 conditioning, commercial refrigeration, and process cooling and
6-20 heating equipment means an inspection that includes the use of
6-21 electronic instruments, gauges, thermometers, mechanical
6-22 instruments, or other meters that require direct in-line connection
6-23 to the refrigerant system.
6-24 SECTION 11. Section 32.12(a), Education Code, is amended to
6-25 read as follows:
6-26 (a) The following schools or educational institutions are
6-27 specifically exempt from the provisions of this chapter and are not
7-1 within the definition of "proprietary school":
7-2 (1) a school or educational institution supported by
7-3 taxation from either a local or State source;
7-4 (2) nonprofit schools owned, controlled, operated, and
7-5 conducted by bona fide religious, denominational, eleemosynary, or
7-6 similar public institutions exempt from property taxation under the
7-7 laws of this State, but such schools may choose to apply for a
7-8 certificate of approval hereunder, and upon approval and issuance,
7-9 shall be subject to the provisions of this chapter as determined by
7-10 the administrator;
7-11 (3) a school or training program which offers
7-12 instruction of purely avocational or recreational subjects as
7-13 determined by the administrator;
7-14 (4) a course or courses of instruction or study
7-15 sponsored by an employer for the training and preparation of its
7-16 own employees, and for which no tuition fee is charged to the
7-17 student;
7-18 (5) a course or courses of study or instruction
7-19 sponsored by a recognized trade, business, or professional
7-20 organization for the instruction of the members of the organization
7-21 with a closed membership;
7-22 (6) private colleges or universities which award a
7-23 recognized baccalaureate, or higher degree, and which maintain and
7-24 operate educational programs for which a majority of the credits
7-25 given are transferable to a college, junior college, or university
7-26 supported entirely or partly by taxation from either a local or
7-27 State source;
8-1 (7) a school or course which is otherwise regulated
8-2 and approved under and pursuant to any other law or rulemaking
8-3 process of the State or approved for continuing education credit by
8-4 an organization that accredits courses for the maintenance of a
8-5 license, except as provided by Subsection (c) of this section;
8-6 (8) aviation schools or instructors approved by and
8-7 under the supervision of the Federal Aviation Administration;
8-8 (9) a school which offers intensive review courses
8-9 designed to prepare students for certified public accountancy
8-10 tests, public accountancy tests, law school aptitude tests, bar
8-11 examinations, or medical college admissions tests;
8-12 (10) a private school offering primary or secondary
8-13 education, which may include kindergarten or prekindergarten
8-14 program, and which satisfies the compulsory attendance requirements
8-15 of Section 21.032 of this code pursuant to Section 21.033(a)(1) of
8-16 this code; <and>
8-17 (11) a course or courses of instruction by bona fide
8-18 electrical trade associations for the purpose of preparing students
8-19 for electrical tests required for licensing and for the purpose of
8-20 providing continuing education to students for the renewal of
8-21 electrical licenses; and
8-22 (12) a course or training program conducted by a
8-23 nonprofit association of air conditioning and refrigeration
8-24 contractors approved by the Air Conditioning and Refrigeration
8-25 Contractors Advisory Board, to provide instruction for technical,
8-26 business, or license examination preparation programs relating to
8-27 air conditioning and refrigeration contracting, as that term is
9-1 defined by the Air Conditioning and Refrigeration Contractor
9-2 License Law (Article 8861, Vernon's Texas Civil Statutes).
9-3 SECTION 12. Section 25, Residential Service Company Act
9-4 (Article 6573b, Revised Statutes), is amended to read as follows:
9-5 Sec. 25. Exemptions. The provisions of this Act shall not
9-6 apply to any of the following persons and transactions, and each
9-7 and all of the following persons and transactions are hereby
9-8 exempted from the provisions of this Act, to wit:
9-9 (a) performance guarantees given by either the builder
9-10 of a home or the manufacturer or seller of an appliance or other
9-11 system or component;
9-12 (b) any residential service contract executed on or
9-13 before the effective date of this Act;
9-14 (c) any service contract, guarantee, or warranty
9-15 intending to guarantee or warrant the repairs or service of a home
9-16 appliance, system, or component, provided such service contract,
9-17 guarantee, or warranty is issued by a person who has sold,
9-18 serviced, repaired, or provided replacement of such appliance,
9-19 system, or component at the time of, or prior to the issuance of
9-20 such contract, guarantee, or warranty; and provided further that
9-21 the person issuing the service contract, guarantee, or warranty
9-22 does not engage in the business of a service company;
9-23 (d) any person engaging in the business of structural
9-24 pest control in compliance with the Texas Structural Pest Control
9-25 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
9-26 1925);
9-27 (e) any person who performs air conditioning and
10-1 refrigeration contracting in compliance with the Air Conditioning
10-2 and Refrigeration Contractor License Law (Article 8861, Vernon's
10-3 Texas Civil Statutes); and
10-4 (f) any service or maintenance contract or agreement,
10-5 or warranty, which provides for, warrants, or guarantees, the
10-6 maintenance, repair, service, replacement, or operation or
10-7 performance, of any product or part thereof, including but not
10-8 limited to a structural component, the appliances, or the
10-9 electrical, plumbing, heating, cooling or air-conditioning systems
10-10 in or of a building or residence, provided such service or
10-11 maintenance contract or agreement, or warranty is sold, offered for
10-12 sale, or issued by the manufacturer or merchant who manufactured or
10-13 sold such product or part thereof.
10-14 SECTION 13. (a) The change in law made to Section 8, Air
10-15 Conditioning and Refrigeration Contractor License Law (Article
10-16 8861, Vernon's Texas Civil Statutes), by this Act applies only to
10-17 an offense committed on or after the effective date of this Act.
10-18 For purposes of this section, an offense is committed before the
10-19 effective date of this Act if any element of the offense occurs
10-20 before that date.
10-21 (b) An offense committed before the effective date of this
10-22 Act is governed by the law in effect when the offense was
10-23 committed, and the former law is continued in effect for that
10-24 purpose.
10-25 SECTION 14. (a) Except as provided by Subsection (b) of
10-26 this section, the change in law made to Section 9, Air Conditioning
10-27 and Refrigeration Contractor License Law (Article 8861, Vernon's
11-1 Texas Civil Statutes), by this Act applies to a municipal license
11-2 that is issued or renewed on or after the effective date of this
11-3 Act. A municipality subject to that section shall adopt
11-4 examination requirements in compliance with that section not later
11-5 than January 1, 1996.
11-6 (b) To continue to engage in the practice of air
11-7 conditioning and refrigeration contracting after September 1, 1995,
11-8 a person who holds a municipal license on the effective date of
11-9 this Act must satisfy the examination requirements imposed under
11-10 Section 9(b), Air Conditioning and Refrigeration Contractor License
11-11 Law (Article 8861, Vernon's Texas Civil Statutes), as amended by
11-12 this Act, not later than June 1, 1996.
11-13 SECTION 15. (a) This Act takes effect September 1, 1995.
11-14 (b) Not later than December 31, 1995, the commissioner of
11-15 licensing and regulation shall adopt rules as required by Section
11-16 3C, Air Conditioning and Refrigeration Contractor License Law
11-17 (Article 8861, Vernon's Texas Civil Statutes), as added by this
11-18 Act.
11-19 (c) Section 23(c), The Real Estate License Act (Article
11-20 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
11-21 applies only to a real estate inspection that is conducted on or
11-22 after the effective date of this Act. A real estate inspection
11-23 conducted before that date is governed by the law in effect on the
11-24 date that the inspection occurs, and the former law is continued in
11-25 effect for that purpose.
11-26 (d) Section 32.12(a), Education Code, as amended by this
11-27 Act, applies only to a course or training program conducted by a
12-1 nonprofit association of air conditioning and refrigeration
12-2 contractors that is offered on or after the effective date of this
12-3 Act. A course or training program offered before that date is
12-4 governed by the law in effect on the date that the course or
12-5 program is offered, and the former law is continued in effect for
12-6 that purpose.
12-7 (e) Section 25, Residential Service Company Act (Article
12-8 6573b, Revised Statutes), as amended by this Act, applies only to a
12-9 residential service contract that is entered into on or after the
12-10 effective date of this Act. A residential service contract that is
12-11 entered into before that date is governed by the law in effect on
12-12 the date that the contract is entered into, and the former law is
12-13 continued in effect for that purpose.
12-14 SECTION 16. The importance of this legislation and the
12-15 crowded condition of the calendars in both houses create an
12-16 emergency and an imperative public necessity that the
12-17 constitutional rule requiring bills to be read on three several
12-18 days in each house be suspended, and this rule is hereby suspended.