74R9984 MRB-D
          By Carona                                              H.B. No. 796
          Substitute the following for H.B. No. 796:
          By Yarbrough                                       C.S.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 8, 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. 8.  PENALTY.  Except as provided in Section 9, a person
   4-10  commits an offense if the person knowingly or intentionally engages
   4-11  in air conditioning and refrigeration contracting without a license
   4-12  issued under this Act.  An offense under this section is a Class A
   4-13  <B> misdemeanor.
   4-14        SECTION 8.  (a)  The change in law made to Section 8, Air
   4-15  Conditioning and Refrigeration Contractor License Law (Article
   4-16  8861, Vernon's Texas Civil Statutes), by this Act applies only to
   4-17  an offense committed on or after the effective date of this Act.
   4-18  For purposes of this section, an offense is committed before the
   4-19  effective date of this Act if any element of the offense occurs
   4-20  before that date.
   4-21        (b)  An offense committed before the effective date of this
   4-22  Act is governed by the law in effect when the offense was
   4-23  committed, and the former law is continued in effect for that
   4-24  purpose.
   4-25        SECTION 9.  (a)  This Act takes effect September 1, 1995.
   4-26        (b)  Not later than December 31, 1995, the commissioner of
   4-27  licensing and regulation shall adopt rules as required by Section
    5-1  3C, Air Conditioning and Refrigeration Contractor License Law
    5-2  (Article 8861, Vernon's Texas Civil Statutes), as added by this
    5-3  Act.
    5-4        SECTION 10.  The importance of this legislation and the
    5-5  crowded condition of the calendars in both houses create an
    5-6  emergency and an imperative public necessity that the
    5-7  constitutional rule requiring bills to be read on three several
    5-8  days in each house be suspended, and this rule is hereby suspended.