By Carona                                              H.B. No. 796
       74R3763 PB-D
                                 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.  Section 2(7), Air Conditioning and Refrigeration
    1-6  Contractor License Law (Article 8861, Vernon's Texas Civil
    1-7  Statutes), is 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 includes the cleaning of
   1-13  equipment and duct materials required for the proper operation of
   1-14  such a system.  The term does not include the installation of a
   1-15  total replacement of the system or the installation or repair of
   1-16  boilers  or pressure vessels <that must be installed by licensed
   1-17  persons pursuant to rules and regulations adopted by the
   1-18  commissioner> under Chapter 755, Health and Safety Code.
   1-19        SECTION 2.  Section 3(e), Air Conditioning and Refrigeration
   1-20  Contractor License Law (Article 8861, Vernon's Texas Civil
   1-21  Statutes), is amended to read as follows:
   1-22        (e)  The commissioner shall prescribe the method and content
   1-23  of examinations administered under this Act and shall set
   1-24  compliance requirements for the examinations.  The examinations
    2-1  <shall be offered only in Travis County and> shall be offered on a
    2-2  quarterly basis at locations designated by the commissioner.
    2-3        SECTION 3.  Section 3A, Air Conditioning and Refrigeration
    2-4  Contractor License Law (Article 8861, Vernon's Texas Civil
    2-5  Statutes), is amended by amending Subsections (b), (c), and (e) and
    2-6  adding Subsection (i) to read as follows:
    2-7        (b)  The advisory board is composed of six members, appointed
    2-8  by the commissioner, <governor with the advice and consent of the
    2-9  senate> who are experienced in the design, installation,
   2-10  construction, maintenance, service, repair, alteration, or
   2-11  modification of equipment used for environmental air conditioning,
   2-12  commercial refrigeration, or process cooling or heating.  A member
   2-13  of the advisory board serves a term of six years, with terms
   2-14  expiring on February 1 of odd-numbered years.
   2-15        (c)  The commissioner <governor> shall appoint the advisory
   2-16  board members as follows:
   2-17              (1)  one member must be an official of a municipality
   2-18  with a population of not more than 250,000;
   2-19              (2)  one member must be an official of a municipality
   2-20  with a population greater than 250,000; and
   2-21              (3)  four members must be full-time licensed air
   2-22  conditioning and refrigeration contractors, as follows:
   2-23                    (A)  one member must hold a Class A license and
   2-24  must practice in a municipality with a population greater than
   2-25  250,000;
   2-26                    (B)  one member must hold a Class B license and
   2-27  must practice in a municipality with a population greater than
    3-1  250,000;
    3-2                    (C)  one member must hold a Class A license and
    3-3  must practice in a municipality with a population greater than
    3-4  25,000 but not more than 250,000; and
    3-5                    (D)  one member must hold a Class B license and
    3-6  must practice in a municipality with a population of not more than
    3-7  25,000. <;>
    3-8        (e)  The commissioner <governor> shall designate one member
    3-9  of the board to serve as chairman.  The commissioner and the chief
   3-10  administrator of this Act serve as ex officio, nonvoting members of
   3-11  the advisory board.  On the resignation, death, suspension, or
   3-12  incapacity of any member, the commissioner <governor> shall fill
   3-13  the vacancy for the remainder of the unexpired term with an
   3-14  individual who represents the same interests with which the
   3-15  predecessor was identified.
   3-16        (i)  Section 8, Article 6252-33, Revised Statutes, does not
   3-17  apply to the advisory board.
   3-18        SECTION 4.  Section 3B, Air Conditioning and Refrigeration
   3-19  Contractor License Law (Article 8861, Vernon's Texas Civil
   3-20  Statutes), is amended to read as follows:
   3-21        Sec. 3B.  LICENSE REQUIRED; CITATION.  (a)  Unless the person
   3-22  is exempted under Section 6 of this Act, a person may not perform
   3-23  air conditioning and refrigeration contracting without a license
   3-24  under this Act.
   3-25        (b)  A representative of the department or a municipal
   3-26  official may issue a citation to a person who performs air
   3-27  conditioning and refrigeration contracting without a license issued
    4-1  under this Act.  To the extent authorized by Chapter 29, Government
    4-2  Code, the municipal court has concurrent jurisdiction with a
    4-3  justice court of a precinct in which the municipality is located in
    4-4  a case arising from a citation issued under this subsection.
    4-5        SECTION 5.  The Air Conditioning and Refrigeration Contractor
    4-6  License Law (Article 8861, Vernon's Texas Civil Statutes) is
    4-7  amended by adding Sections 3C and 3D to read as follows:
    4-8        Sec. 3C.  ENFORCEMENT OF CONTRACTS.  (a)  A person who
    4-9  performs air conditioning and refrigeration contracting without
   4-10  holding the appropriate license under this Act may not collect a
   4-11  fee or otherwise enforce a contract for the services performed.  To
   4-12  enforce a contract for the performance of air conditioning and
   4-13  refrigeration contracting, the person who performs the services
   4-14  must present proof that the person holds a license under this Act
   4-15  at the time the contract is signed and the work performed.
   4-16        (b)  The commissioner may adopt rules relating to the manner
   4-17  in which proof may be presented under this section.
   4-18        Sec. 3D.  SALE OF CERTAIN EQUIPMENT RESTRICTED.  (a)  In this
   4-19  section, "equipment" means a working component of a system that
   4-20  cools through any compressive or evaporative cycle or heats through
   4-21  transfer of heat from any source to a distribution network.  The
   4-22  term includes a replacement part for that system or component.  The
   4-23  term does not include:
   4-24              (1)  equipment exempt from regulation under Section 6
   4-25  of this Act;
   4-26              (2)  duct materials; or
   4-27              (3)  separate piping, tubing, or electrical wiring that
    5-1  may be used for purposes other than air conditioning and
    5-2  refrigeration.
    5-3        (b)  The department shall regulate the use and sale of
    5-4  equipment as provided by this section.
    5-5        (c)  To purchase equipment, a person exempt under Sections
    5-6  6(a)(2)-(7) of this Act must obtain a certificate of registration
    5-7  from the department and must present to the seller evidence of
    5-8  compliance with the registration requirement.  The commissioner by
    5-9  rule shall adopt requirements governing the registration and the
   5-10  issuance of certificates of registration.
   5-11        (d)  Except as provided by Subsection (f) of this section, a
   5-12  person may sell equipment in this state only to a person who:
   5-13              (1)  is licensed under this Act or a municipal
   5-14  ordinance that complies with Section 9 of this Act; or
   5-15              (2)  holds a certificate of registration issued by the
   5-16  department under this section.
   5-17        (e)  The seller must obtain evidence from the purchaser of
   5-18  compliance by the purchaser with the license or registration
   5-19  requirements imposed under this Act that apply to the purchaser.
   5-20  The commissioner by rule shall establish requirements for the
   5-21  evidence.
   5-22        (f)  A seller may sell equipment to a person exempt under
   5-23  Section 6(a)(1) of this Act and is not required to obtain from the
   5-24  purchaser evidence of the exemption.
   5-25        (g)  A person commits an offense if the person sells
   5-26  equipment in this state in violation of Subsection (d) or (e) of
   5-27  this section.  An offense under this subsection is a Class B
    6-1  misdemeanor.
    6-2        SECTION 6.  Sections 4(f) and (g), Air Conditioning and
    6-3  Refrigeration Contractor License Law (Article 8861, Vernon's Texas
    6-4  Civil Statutes), are amended to read as follows:
    6-5        (f)  The application must be made on a form prescribed by the
    6-6  commissioner and must specify the class of license and each
    6-7  endorsement the applicant seeks.   The application must be verified
    6-8  and must be accompanied by:
    6-9              (1)  <evidence of the insurance coverage required under
   6-10  this Act;>
   6-11              <(2)>  a statement of the applicant's practical
   6-12  experience; and
   6-13              (2) <(3)>  the examination fee.
   6-14        (g)  The commissioner shall issue an air conditioning and
   6-15  refrigeration contractor license to an applicant who possesses the
   6-16  required qualifications, passes the appropriate examinations,
   6-17  furnishes evidence of the insurance coverage required under this
   6-18  Act, and pays the <examination fee and the> original license fee
   6-19  required by this Act.  An applicant who fails an examination is
   6-20  eligible for reexamination.
   6-21        SECTION 7.  Section 8, Air Conditioning and Refrigeration
   6-22  Contractor License Law (Article 8861, Vernon's Texas Civil
   6-23  Statutes), is amended to read as follows:
   6-24        Sec. 8.  PENALTY.  Except as provided in Section 9, a person
   6-25  commits an offense if the person knowingly or intentionally engages
   6-26  in air conditioning and refrigeration contracting without a license
   6-27  issued under this Act.  An offense under this section is a Class A
    7-1  <B> misdemeanor.
    7-2        SECTION 8.  (a)  The change in law made to Section 8, Air
    7-3  Conditioning and Refrigeration Contractor License Law (Article
    7-4  8861, Vernon's Texas Civil Statutes), by this Act applies only to
    7-5  an offense committed on or after the effective date of this Act.
    7-6  For purposes of this section, an offense is committed before the
    7-7  effective date of this Act if any element of the offense occurs
    7-8  before that date.
    7-9        (b)  An offense committed before the effective date of this
   7-10  Act is governed by the law in effect when the offense was
   7-11  committed, and the former law is continued in effect for that
   7-12  purpose.
   7-13        SECTION 9.  (a)  Except as provided by Subsection (b) of this
   7-14  section, this Act takes effect September 1, 1995.
   7-15        (b)  Sections 3D(c), (d), (e), and (g), Air Conditioning and
   7-16  Refrigeration Contractor License Law (Article 8861, Vernon's Texas
   7-17  Civil Statutes), as added by this Act, take effect January 1, 1996.
   7-18        (c)  Not later than December 31, 1995, the commissioner of
   7-19  licensing and regulation shall adopt rules as required by Sections
   7-20  3C and 3D, Air Conditioning and Refrigeration Contractor License
   7-21  Law (Article 8861, Vernon's Texas Civil Statutes), as added by this
   7-22  Act.
   7-23        (d)  The commissioner of licensing and regulation shall make
   7-24  appointments to the Air Conditioning and Refrigeration Contractors
   7-25  Advisory Board under Section 3A, Air Conditioning and Refrigeration
   7-26  Contractor License Law (Article 8861, Vernon's Texas Civil
   7-27  Statutes), as amended by this Act, to replace board members whose
    8-1  terms expire or who otherwise leave service on the board after the
    8-2  effective date of this Act.  A member of the advisory board who is
    8-3  serving on the effective date of this Act may continue to serve
    8-4  until the expiration of that member's term, unless otherwise
    8-5  removed in accordance with law.
    8-6        SECTION 10.  The importance of this legislation and the
    8-7  crowded condition of the calendars in both houses create an
    8-8  emergency and an imperative public necessity that the
    8-9  constitutional rule requiring bills to be read on three several
   8-10  days in each house be suspended, and this rule is hereby suspended.