SRC-MAX S.B. 229 75(R) BILL ANALYSIS
Senate Research CenterS.B. 229
By: Carona
International Relations, Trade, & Technology
1-27-97
As Filed
DIGEST
The Air Conditioning and Refrigeration Contractor License Law (Article
8861, V.T.C.S.) requires those persons engaging in environmental air
conditioning, commercial refrigeration, or process heating or cooling to
be examined and licensed by the State of Texas. S.B. 229 sets forth
regulations and penalties pertaining to air conditioning and refrigeration
contracting that are related to the need for establishing certain license
practices and enforcing contracts.
PURPOSE
As proposed, S.B. 229 sets forth regulations and penalties pertaining to
air conditioning and refrigeration contracting.
RULEMAKING AUTHORITY
Rulemaking authority is granted to the Texas Commissioner of Licensing and
Regulation in SECTION 5 (Sec. 3c, Article 8861, V.T.C.S.).
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 2(7) and (9), Article 8861, V.T.C.S., (Air
Conditioning and Refrigeration Contractor License Law) to redefine "air
conditioning and refrigeration maintenance work" and "air conditioning and
refrigeration contracting."
SECTION 2. Amends Section 3(e), Article 8861, V.T.C.S., to requires the
examinations to be offered on a quarterly basis at locations designated by
the Texas Commissioner of Licensing and Regulation (commissioner).
SECTION 3. Amends Section 3A, Article 8861, V.T.C.S., by adding Subsection
(i), to provide that Section 8, Article 6252-33, V.T.C.S., does not apply
to the Air Conditioning and Refrigeration Contractors Advisory Board
(advisory board).
SECTION 4. Amends Section 3B, Article 8861, V.T.C.S., as follows:
Sec. 3B. New heading: LICENSE REQUIRED; CITATION. Authorizes a
representative of the Department of Licensing and Regulation (department)
or a municipal official to issue a citation to a person who performs air
conditioning and refrigeration contracting without a license issued under
this Act. Provides that the municipal court has concurrent jurisdiction
with a justice court of a precinct in which the municipality is located in
a case arising from a citation issued under this subsection to the extent
authorized by Chapter 29, Government Code. Makes a conforming change.
SECTION 5. Amends Article 8861, V.T.C.S., by adding Section 3C, as follows:
Sec. 3C. ENFORCEMENT OF CONTRACTS. Prohibits a person who performs air
conditioning and refrigeration contracting without holding the appropriate
license from collecting a fee or otherwise enforcing a contract for the
services performed. Requires a person to present proof that the person
holds license at the time the contract is signed and the work performed
in order to enforce a contract. Requires the commissioner to adopt rules
relating to the manner in which proof may be presented under this
section.
SECTION 6. Amends Section 4(f) and (g), Article 8861, V.T.C.S., to delete
text requiring an application to be accompanied by evidence of the
insurance coverage required under this Act. Requires the commissioner to
issue an air conditioning and refrigeration contractor licence to a person
who furnishes evidence of the insurance coverage and performs certain
activities required under this Act. Makes conforming and nonsubstantive
changes.
SECTION 7. REPORTING REQUIREMENT. Amends Section 7, Article 8861,
V.T.C.S., to require each air conditioning and refrigeration contractor,
rather than person, to notify the corresponding municipal authority that
the person has obtained a state license. Authorizes the amount of a fee
imposed on a contractor to be set by the municipality only in the amount
reasonable and necessary to implement this section. Makes conforming
changes.
SECTION 8. Amends Section 8, Article 8861, V.T.C.S., to provide that a
person commits a Class A, rather than Class B, misdemeanor if the person
knowingly and intentionally engages in air conditioning and refrigeration
contracting without a license.
SECTION 9. Amends Section 9, Article 8861, V.T.C.S., to provide that a
license issued by a municipality of this state that complies with the
requirements of this section is valid under the terms of the license
within that municipality. Requires an applicant for a municipal license
to pass an examination and meet specific experience requirements. Makes a
conforming change.
SECTION 10. Amends Section 23(c), Article 6573a, V.T.C.S., (The Real
Estate License Act) by adding Subdivision (4), to require a business
entity that inspects certain systems as part of a real estate inspection
to employ a person who holds the appropriate air conditioning and
refrigeration contractor licenses and endorsements under Article 8861,
V.T.C.S. Authorizes an employee who does not hold a license or
endorsement to perform the inspection under the direction of the license
holder. Defines "inspection."
SECTION 11. Amends Section 25, Article 6573b, V.T.C.S., (Residential
Service Company Act) to provide that any person who performs air
conditioning refrigeration in compliance with the Air Conditioning and
Refrigeration Contractor License Law, Article 8861, V.T.C.S., is exempt
from the provisions of this Act. Makes a conforming change.
SECTION 12. Makes application of this Act prospective.
SECTION 13. Provides that the change in law made to SECTION 9, Article
8861, V.T.C.S., except as provided by Subsection (b), prospective.
Requires a municipality to adopt examination requirements in compliance
with this section not later than January 1, 1998. Requires a person who
holds a municipal license to satisfy the examination requirements imposed
under Section 9(b), Article 8861, V.T.C.S., not later than June 1, 1998.
SECTION 14. (a) Effective date: September 1, 1997.
(b) Requires the commissioner of licensing and regulation to adopt rules
as required by Section 3C, Article 8861, V.T.C.S., not later than December
31, 1997.
(c) and (d) Make application of this Act prospective.
SECTION 15. Emergency clause.