1-1 By: Carona (Senate Sponsor - Cain) H.B. No. 796
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 5, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 23, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of air conditioning and refrigeration
1-9 contractors; providing penalties.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 2(7) and (9), Air Conditioning and
1-12 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-13 Civil Statutes), are amended to read as follows:
1-14 (7) "Air conditioning and refrigeration maintenance
1-15 work" means repair work and all other work required for the
1-16 continued normal performance of an environmental air conditioning
1-17 system, commercial refrigeration system or equipment, or process
1-18 cooling or heating system. The term does not include the
1-19 installation of a total replacement of the system or the
1-20 installation or repair of boilers or pressure vessels <that must be
1-21 installed by licensed persons pursuant to rules and regulations
1-22 adopted by the commissioner> under Chapter 755, Health and Safety
1-23 Code.
1-24 (9) "Air conditioning and refrigeration contracting"
1-25 means the design, installation, construction, maintenance,
1-26 service, repair, alteration, or modification of a product or of
1-27 equipment in environmental air conditioning, commercial
1-28 refrigeration, or process cooling or heating systems. The term
1-29 includes cleaning equipment and duct materials as required for the
1-30 proper operation of such a system.
1-31 SECTION 2. Section 3(e), Air Conditioning and Refrigeration
1-32 Contractor License Law (Article 8861, Vernon's Texas Civil
1-33 Statutes), is amended to read as follows:
1-34 (e) The commissioner shall prescribe the method and content
1-35 of examinations administered under this Act and shall set
1-36 compliance requirements for the examinations. The examinations
1-37 <shall be offered only in Travis County and> shall be offered on a
1-38 quarterly basis at locations designated by the commissioner.
1-39 SECTION 3. Section 3A, Air Conditioning and Refrigeration
1-40 Contractor License Law (Article 8861, Vernon's Texas Civil
1-41 Statutes), is amended by adding Subsection (i) to read as follows:
1-42 (i) Section 8, Article 6252-33, Revised Statutes, does not
1-43 apply to the advisory board.
1-44 SECTION 4. Section 3B, Air Conditioning and Refrigeration
1-45 Contractor License Law (Article 8861, Vernon's Texas Civil
1-46 Statutes), is amended to read as follows:
1-47 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
1-48 is exempted under Section 6 of this Act, a person may not perform
1-49 air conditioning and refrigeration contracting without a license
1-50 under this Act.
1-51 (b) A representative of the department or a municipal
1-52 official may issue a citation to a person who performs air
1-53 conditioning and refrigeration contracting without a license issued
1-54 under this Act. To the extent authorized by Chapter 29, Government
1-55 Code, the municipal court has concurrent jurisdiction with a
1-56 justice court of a precinct in which the municipality is located in
1-57 a case arising from a citation issued under this subsection.
1-58 SECTION 5. The Air Conditioning and Refrigeration Contractor
1-59 License Law (Article 8861, Vernon's Texas Civil Statutes) is
1-60 amended by adding Section 3C to read as follows:
1-61 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
1-62 performs air conditioning and refrigeration contracting without
1-63 holding the appropriate license under this Act may not collect a
1-64 fee or otherwise enforce a contract for the services performed. To
1-65 enforce a contract for the performance of air conditioning and
1-66 refrigeration contracting, the person who performs the services
1-67 must present proof that the person holds a license under this Act
1-68 at the time the contract is signed and the work performed.
2-1 (b) The commissioner shall adopt rules relating to the
2-2 manner in which proof may be presented under this section.
2-3 SECTION 6. Sections 4(f) and (g), Air Conditioning and
2-4 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
2-5 Civil Statutes), are amended to read as follows:
2-6 (f) The application must be made on a form prescribed by the
2-7 commissioner and must specify the class of license and each
2-8 endorsement the applicant seeks. The application must be verified
2-9 and must be accompanied by:
2-10 (1) <evidence of the insurance coverage required under
2-11 this Act;>
2-12 <(2)> a statement of the applicant's practical
2-13 experience; and
2-14 (2) <(3)> the examination fee.
2-15 (g) The commissioner shall issue an air conditioning and
2-16 refrigeration contractor license to an applicant who possesses the
2-17 required qualifications, passes the appropriate examinations,
2-18 furnishes evidence of the insurance coverage required under this
2-19 Act, and pays the <examination fee and the> original license fee
2-20 required by this Act. An applicant who fails an examination is
2-21 eligible for reexamination.
2-22 SECTION 7. Section 7, Air Conditioning and Refrigeration
2-23 Contractor License Law (Article 8861, Vernon's Texas Civil
2-24 Statutes), is amended to read as follows:
2-25 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
2-26 and refrigeration contractor <person> licensed under this Act shall
2-27 notify the municipal authority who has control of the enforcement
2-28 of regulations relative to air conditioning and refrigeration
2-29 contracting in the municipality in which the person is engaged in
2-30 air conditioning and refrigeration contracting that the person has
2-31 obtained a state license.
2-32 (b) The notification must be in the form required by the
2-33 municipality.
2-34 (c) The amount of a fee imposed by a municipality on a
2-35 contractor to provide notice under this section must be an amount
2-36 reasonable and necessary to implement this section.
2-37 SECTION 8. Section 8, Air Conditioning and Refrigeration
2-38 Contractor License Law (Article 8861, Vernon's Texas Civil
2-39 Statutes), is amended to read as follows:
2-40 Sec. 8. PENALTY. Except as provided in Section 9, a person
2-41 commits an offense if the person knowingly or intentionally engages
2-42 in air conditioning and refrigeration contracting without a license
2-43 issued under this Act. An offense under this section is a Class A
2-44 <B> misdemeanor.
2-45 SECTION 9. Section 9, Air Conditioning and Refrigeration
2-46 Contractor License Law (Article 8861, Vernon's Texas Civil
2-47 Statutes), is amended to read as follows:
2-48 Sec. 9. Municipal Regulation. (a) A license issued by a
2-49 municipality of this state that complies with the requirements of
2-50 this section is valid under the terms of the license within that
2-51 municipality. However, a license issued under this Act is valid
2-52 throughout the state, and the holder and people under supervision
2-53 are not required to hold a municipal license to practice air
2-54 conditioning and refrigeration contracting in any municipality
2-55 within this state.
2-56 (b) An applicant for a municipal license must:
2-57 (1) pass an examination that covers the same subjects
2-58 as the examination required by the commissioner for an air
2-59 conditioning and refrigeration contractor license of the class of
2-60 work that the municipal applicant proposes to perform; and
2-61 (2) meet experience requirements that are at least as
2-62 strict as those required under Section 4(e) of this Act for an air
2-63 conditioning and refrigeration contractor license.
2-64 (c) A municipality may by ordinance adopt and enforce
2-65 standards for air conditioning and refrigeration contractors that
2-66 are consistent with the standards established under this Act. The
2-67 municipality shall report violations of the ordinance to the
2-68 commissioner not later than the 10th day after the date on which
2-69 the municipality takes action to enforce the ordinance. Conviction
2-70 of an offense under the municipal ordinance is a ground for the
3-1 denial, suspension, or revocation of a license issued under this
3-2 Act.
3-3 SECTION 10. Section 23(c), The Real Estate License Act
3-4 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
3-5 adding Subdivision (4) to read as follows:
3-6 (4) In addition to the license requirements imposed
3-7 under Subdivisions (1)-(3) of this subsection, a business entity
3-8 that inspects an environmental air conditioning system, commercial
3-9 refrigeration system, or process cooling or heating system as part
3-10 of a real estate inspection conducted under this Act must employ a
3-11 person who holds the appropriate air conditioning and refrigeration
3-12 contractor licenses and endorsements under the Air Conditioning and
3-13 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
3-14 Civil Statutes). An employee who does not hold a license or
3-15 endorsement under the Air Conditioning and Refrigeration Contractor
3-16 License Law (Article 8861, Vernon's Texas Civil Statutes) may
3-17 perform the inspection under the direction of the license holder.
3-18 For purposes of this Act, "inspection" of environmental air
3-19 conditioning, commercial refrigeration, and process cooling and
3-20 heating equipment means an inspection that includes the use of
3-21 electronic instruments, gauges, thermometers, mechanical
3-22 instruments, or other meters that require direct in-line connection
3-23 to the refrigerant system.
3-24 SECTION 11. Section 32.12(a), Education Code, is amended to
3-25 read as follows:
3-26 (a) The following schools or educational institutions are
3-27 specifically exempt from the provisions of this chapter and are not
3-28 within the definition of "proprietary school":
3-29 (1) a school or educational institution supported by
3-30 taxation from either a local or State source;
3-31 (2) nonprofit schools owned, controlled, operated, and
3-32 conducted by bona fide religious, denominational, eleemosynary, or
3-33 similar public institutions exempt from property taxation under the
3-34 laws of this State, but such schools may choose to apply for a
3-35 certificate of approval hereunder, and upon approval and issuance,
3-36 shall be subject to the provisions of this chapter as determined by
3-37 the administrator;
3-38 (3) a school or training program which offers
3-39 instruction of purely avocational or recreational subjects as
3-40 determined by the administrator;
3-41 (4) a course or courses of instruction or study
3-42 sponsored by an employer for the training and preparation of its
3-43 own employees, and for which no tuition fee is charged to the
3-44 student;
3-45 (5) a course or courses of study or instruction
3-46 sponsored by a recognized trade, business, or professional
3-47 organization for the instruction of the members of the organization
3-48 with a closed membership;
3-49 (6) private colleges or universities which award a
3-50 recognized baccalaureate, or higher degree, and which maintain and
3-51 operate educational programs for which a majority of the credits
3-52 given are transferable to a college, junior college, or university
3-53 supported entirely or partly by taxation from either a local or
3-54 State source;
3-55 (7) a school or course which is otherwise regulated
3-56 and approved under and pursuant to any other law or rulemaking
3-57 process of the State or approved for continuing education credit by
3-58 an organization that accredits courses for the maintenance of a
3-59 license, except as provided by Subsection (c) of this section;
3-60 (8) aviation schools or instructors approved by and
3-61 under the supervision of the Federal Aviation Administration;
3-62 (9) a school which offers intensive review courses
3-63 designed to prepare students for certified public accountancy
3-64 tests, public accountancy tests, law school aptitude tests, bar
3-65 examinations, or medical college admissions tests;
3-66 (10) a private school offering primary or secondary
3-67 education, which may include kindergarten or prekindergarten
3-68 program, and which satisfies the compulsory attendance requirements
3-69 of Section 21.032 of this code pursuant to Section 21.033(a)(1) of
3-70 this code; <and>
4-1 (11) a course or courses of instruction by bona fide
4-2 electrical trade associations for the purpose of preparing students
4-3 for electrical tests required for licensing and for the purpose of
4-4 providing continuing education to students for the renewal of
4-5 electrical licenses; and
4-6 (12) a course or training program conducted by a
4-7 nonprofit association of air conditioning and refrigeration
4-8 contractors approved by the Air Conditioning and Refrigeration
4-9 Contractors Advisory Board, to provide instruction for technical,
4-10 business, or license examination preparation programs relating to
4-11 air conditioning and refrigeration contracting, as that term is
4-12 defined by the Air Conditioning and Refrigeration Contractor
4-13 License Law (Article 8861, Vernon's Texas Civil Statutes).
4-14 SECTION 12. Section 25, Residential Service Company Act
4-15 (Article 6573b, Revised Statutes), is amended to read as follows:
4-16 Sec. 25. Exemptions. The provisions of this Act shall not
4-17 apply to any of the following persons and transactions, and each
4-18 and all of the following persons and transactions are hereby
4-19 exempted from the provisions of this Act, to wit:
4-20 (a) performance guarantees given by either the builder
4-21 of a home or the manufacturer or seller of an appliance or other
4-22 system or component;
4-23 (b) any residential service contract executed on or
4-24 before the effective date of this Act;
4-25 (c) any service contract, guarantee, or warranty
4-26 intending to guarantee or warrant the repairs or service of a home
4-27 appliance, system, or component, provided such service contract,
4-28 guarantee, or warranty is issued by a person who has sold,
4-29 serviced, repaired, or provided replacement of such appliance,
4-30 system, or component at the time of, or prior to the issuance of
4-31 such contract, guarantee, or warranty; and provided further that
4-32 the person issuing the service contract, guarantee, or warranty
4-33 does not engage in the business of a service company;
4-34 (d) any person engaging in the business of structural
4-35 pest control in compliance with the Texas Structural Pest Control
4-36 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
4-37 1925);
4-38 (e) any person who performs air conditioning and
4-39 refrigeration contracting in compliance with the Air Conditioning
4-40 and Refrigeration Contractor License Law (Article 8861, Vernon's
4-41 Texas Civil Statutes); and
4-42 (f) any service or maintenance contract or agreement,
4-43 or warranty, which provides for, warrants, or guarantees, the
4-44 maintenance, repair, service, replacement, or operation or
4-45 performance, of any product or part thereof, including but not
4-46 limited to a structural component, the appliances, or the
4-47 electrical, plumbing, heating, cooling or air-conditioning systems
4-48 in or of a building or residence, provided such service or
4-49 maintenance contract or agreement, or warranty is sold, offered for
4-50 sale, or issued by the manufacturer or merchant who manufactured or
4-51 sold such product or part thereof.
4-52 SECTION 13. (a) The change in law made to Section 8, Air
4-53 Conditioning and Refrigeration Contractor License Law (Article
4-54 8861, Vernon's Texas Civil Statutes), by this Act applies only to
4-55 an offense committed on or after the effective date of this Act.
4-56 For purposes of this section, an offense is committed before the
4-57 effective date of this Act if any element of the offense occurs
4-58 before that date.
4-59 (b) An offense committed before the effective date of this
4-60 Act is governed by the law in effect when the offense was
4-61 committed, and the former law is continued in effect for that
4-62 purpose.
4-63 SECTION 14. (a) Except as provided by Subsection (b) of
4-64 this section, the change in law made to Section 9, Air Conditioning
4-65 and Refrigeration Contractor License Law (Article 8861, Vernon's
4-66 Texas Civil Statutes), by this Act applies to a municipal license
4-67 that is issued or renewed on or after the effective date of this
4-68 Act. A municipality subject to that section shall adopt
4-69 examination requirements in compliance with that section not later
4-70 than January 1, 1996.
5-1 (b) To continue to engage in the practice of air
5-2 conditioning and refrigeration contracting after September 1, 1995,
5-3 a person who holds a municipal license on the effective date of
5-4 this Act must satisfy the examination requirements imposed under
5-5 Section 9(b), Air Conditioning and Refrigeration Contractor License
5-6 Law (Article 8861, Vernon's Texas Civil Statutes), as amended by
5-7 this Act, not later than June 1, 1996.
5-8 SECTION 15. (a) This Act takes effect September 1, 1995.
5-9 (b) Not later than December 31, 1995, the commissioner of
5-10 licensing and regulation shall adopt rules as required by Section
5-11 3C, Air Conditioning and Refrigeration Contractor License Law
5-12 (Article 8861, Vernon's Texas Civil Statutes), as added by this
5-13 Act.
5-14 (c) Section 23(c), The Real Estate License Act (Article
5-15 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
5-16 applies only to a real estate inspection that is conducted on or
5-17 after the effective date of this Act. A real estate inspection
5-18 conducted before that date is governed by the law in effect on the
5-19 date that the inspection occurs, and the former law is continued in
5-20 effect for that purpose.
5-21 (d) Section 32.12(a), Education Code, as amended by this
5-22 Act, applies only to a course or training program conducted by a
5-23 nonprofit association of air conditioning and refrigeration
5-24 contractors that is offered on or after the effective date of this
5-25 Act. A course or training program offered before that date is
5-26 governed by the law in effect on the date that the course or
5-27 program is offered, and the former law is continued in effect for
5-28 that purpose.
5-29 (e) Section 25, Residential Service Company Act (Article
5-30 6573b, Revised Statutes), as amended by this Act, applies only to a
5-31 residential service contract that is entered into on or after the
5-32 effective date of this Act. A residential service contract that is
5-33 entered into before that date is governed by the law in effect on
5-34 the date that the contract is entered into, and the former law is
5-35 continued in effect for that purpose.
5-36 SECTION 16. The importance of this legislation and the
5-37 crowded condition of the calendars in both houses create an
5-38 emergency and an imperative public necessity that the
5-39 constitutional rule requiring bills to be read on three several
5-40 days in each house be suspended, and this rule is hereby suspended.
5-41 * * * * *