By: Carona, Truan S.B. No. 229
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of air conditioning and refrigeration
1-2 contractors; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivisions (7) and (9), Section 2, Air
1-5 Conditioning and Refrigeration Contractor License Law (Article
1-6 8861, Vernon's Texas Civil Statutes), are amended to read as
1-7 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, service,
1-20 repair, alteration, or modification of a product or of equipment in
1-21 environmental air conditioning, commercial refrigeration, or
1-22 process cooling or heating systems. The term includes cleaning
1-23 equipment and duct materials as required for the proper operation
2-1 of such a system.
2-2 SECTION 2. Subsection (e), Section 3, Air Conditioning and
2-3 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
2-4 Civil Statutes), is amended to read as follows:
2-5 (e) The commissioner shall prescribe the method and content
2-6 of examinations administered under this Act and shall set
2-7 compliance requirements for the examinations. The examinations
2-8 [shall be offered only in Travis County and] shall be offered on a
2-9 quarterly basis at locations designated by the commissioner.
2-10 SECTION 3. Section 3A, Air Conditioning and Refrigeration
2-11 Contractor License Law (Article 8861, Vernon's Texas Civil
2-12 Statutes), is amended by adding Subsection (i) to read as follows:
2-13 (i) Section 8, Article 6252-33, Revised Statutes, does not
2-14 apply to the advisory board.
2-15 SECTION 4. Section 3B, Air Conditioning and Refrigeration
2-16 Contractor License Law (Article 8861, Vernon's Texas Civil
2-17 Statutes), is amended to read as follows:
2-18 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
2-19 is exempted under Section 6 of this Act, a person may not perform
2-20 air conditioning and refrigeration contracting without a license
2-21 under this Act.
2-22 (b) A representative of the department or a municipal
2-23 official may issue a citation to a person who performs air
2-24 conditioning and refrigeration contracting without a license issued
2-25 under this Act. To the extent authorized by Chapter 29, Government
3-1 Code, the municipal court has concurrent jurisdiction with a
3-2 justice court of a precinct in which the municipality is located in
3-3 a case arising from a citation issued under this subsection.
3-4 SECTION 5. The Air Conditioning and Refrigeration Contractor
3-5 License Law (Article 8861, Vernon's Texas Civil Statutes) is
3-6 amended by adding Section 3C to read as follows:
3-7 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
3-8 performs air conditioning and refrigeration contracting without
3-9 holding the appropriate license under this Act may not collect a
3-10 fee or otherwise enforce a contract for the services performed. To
3-11 enforce a contract for the performance of air conditioning and
3-12 refrigeration contracting, the person who performs the services
3-13 must present proof that the person holds a license under this Act
3-14 at the time the contract is signed and the work performed.
3-15 (b) The commissioner shall adopt rules relating to the
3-16 manner in which proof may be presented under this section.
3-17 SECTION 6. Subsections (f) and (g), Section 4, Air
3-18 Conditioning and Refrigeration Contractor License Law (Article
3-19 8861, Vernon's Texas Civil Statutes), are amended to read as
3-20 follows:
3-21 (f) The application must be made on a form prescribed by the
3-22 commissioner and must specify the class of license and each
3-23 endorsement the applicant seeks. The application must be verified
3-24 and must be accompanied by:
3-25 (1) [evidence of the insurance coverage required under
4-1 this Act;]
4-2 [(2)] a statement of the applicant's practical
4-3 experience; and
4-4 (2) [(3)] the examination fee.
4-5 (g) The commissioner shall issue an air conditioning and
4-6 refrigeration contractor license to an applicant who possesses the
4-7 required qualifications, passes the appropriate examinations,
4-8 furnishes evidence of the insurance coverage required under this
4-9 Act, and pays the [examination fee and the] original license fee
4-10 required by this Act. An applicant who fails an examination is
4-11 eligible for reexamination.
4-12 SECTION 7. Subsection (a), Section 6, Air Conditioning and
4-13 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
4-14 Civil Statutes), is amended to read as follows:
4-15 (a) This Act does not apply to a person who:
4-16 (1) performs air conditioning and refrigeration
4-17 contracting in a building owned solely by him as his home;
4-18 (2) performs air conditioning or refrigeration
4-19 maintenance work if (i) the person is a maintenance man or
4-20 maintenance engineer who is a regular bona fide employee of the
4-21 property owner, the property lessee, or the management company
4-22 managing the property where the maintenance work is being
4-23 performed, (ii) the work is performed in connection with the
4-24 business in which the person is employed, and (iii) the person and
4-25 the person's employer referred to in (i) above do not engage in the
5-1 occupation of air conditioning and refrigeration contracting for
5-2 the general public;
5-3 (3) performs air conditioning and refrigeration
5-4 contracting and is regularly employed by a regulated electric or
5-5 gas utility;
5-6 (4) is licensed as a professional engineer under The
5-7 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
5-8 Statutes), performs work in connection with the business in which
5-9 the person is employed, and does not engage in the practice of air
5-10 conditioning and refrigeration contracting for the general public;
5-11 (5) performs process cooling or heating work for an
5-12 industrial operation such as a chemical plant, petrochemical plant,
5-13 refinery, natural gas plant, or natural gas treating plant when
5-14 employed by that operation;
5-15 (6) performs air conditioning and refrigeration
5-16 contracting on:
5-17 (A) a portable or self-contained ductless air
5-18 conditioning or refrigeration product that has a cooling capacity
5-19 of three tons or less;
5-20 (B) a portable or self-contained heating product
5-21 that does not require the forced movement of air outside the
5-22 heating unit; or
5-23 (C) environmental air conditioning equipment
5-24 that is intended for temporary use and is not fixed in place; [or]
5-25 (7) performs air conditioning services only on a motor
6-1 vehicle air conditioning unit or who employs a person who performs
6-2 air conditioning services only on a motor vehicle air conditioning
6-3 unit; or
6-4 (8) performs air conditioning and refrigeration
6-5 maintenance work on evaporative coolers.
6-6 SECTION 8. Section 7, Air Conditioning and Refrigeration
6-7 Contractor License Law (Article 8861, Vernon's Texas Civil
6-8 Statutes), is amended to read as follows:
6-9 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
6-10 and refrigeration contractor [person] licensed under this Act shall
6-11 notify the municipal authority who has control of the enforcement
6-12 of regulations relative to air conditioning and refrigeration
6-13 contracting in the municipality in which the person is engaged in
6-14 air conditioning and refrigeration contracting that the person has
6-15 obtained a state license.
6-16 (b) The notification must be in the form required by the
6-17 municipality.
6-18 (c) The amount of a fee imposed by a municipality on a
6-19 contractor to provide notice under this section may be set by the
6-20 municipality only in the amount reasonable and necessary to
6-21 implement this section.
6-22 SECTION 9. Section 8, Air Conditioning and Refrigeration
6-23 Contractor License Law (Article 8861, Vernon's Texas Civil
6-24 Statutes), is amended to read as follows:
6-25 Sec. 8. PENALTY. Except as provided in Section 9, a person
7-1 commits an offense if the person knowingly or intentionally engages
7-2 in air conditioning and refrigeration contracting without a license
7-3 issued under this Act. An offense under this section is a Class A
7-4 [B] misdemeanor.
7-5 SECTION 10. Section 9, Air Conditioning and Refrigeration
7-6 Contractor License Law (Article 8861, Vernon's Texas Civil
7-7 Statutes), is amended to read as follows:
7-8 Sec. 9. Municipal Regulation. (a) A license issued by a
7-9 municipality of this state that complies with the requirements of
7-10 this section is valid under the terms of the license within that
7-11 municipality. However, a license issued under this Act is valid
7-12 throughout the state, and the holder and people under supervision
7-13 are not required to hold a municipal license to practice air
7-14 conditioning and refrigeration contracting in any municipality
7-15 within this state.
7-16 (b) An applicant for a municipal license must:
7-17 (1) pass an examination that covers the same subjects
7-18 as the examination required by the commissioner for an air
7-19 conditioning and refrigeration contractor license of the class of
7-20 work that the municipal applicant proposes to perform; and
7-21 (2) meet experience requirements that are at least as
7-22 strict as those required under Section 4(e) of this Act for an air
7-23 conditioning and refrigeration contractor license.
7-24 (c) A municipality may by ordinance adopt and enforce
7-25 standards for air conditioning and refrigeration contractors that
8-1 are consistent with the standards established under this Act. The
8-2 municipality shall report violations of the ordinance to the
8-3 commissioner not later than the 10th day after the date on which
8-4 the municipality takes action to enforce the ordinance. Conviction
8-5 of an offense under the municipal ordinance is a ground for the
8-6 denial, suspension, or revocation of a license issued under this
8-7 Act.
8-8 SECTION 11. Subsection (c), Section 23, The Real Estate
8-9 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
8-10 amended by adding Subdivision (4) to read as follows:
8-11 (4) In addition to the license requirements imposed
8-12 under Subdivisions (1), (2), and (3) of this subsection, a business
8-13 entity that inspects an environmental air conditioning system,
8-14 commercial refrigeration system, or process cooling or heating
8-15 system as part of a real estate inspection conducted under this Act
8-16 must employ a person who holds the appropriate air conditioning and
8-17 refrigeration contractor licenses and endorsements under the Air
8-18 Conditioning and Refrigeration Contractor License Law (Article
8-19 8861, Vernon's Texas Civil Statutes). An employee who does not
8-20 hold a license or endorsement under the Air Conditioning and
8-21 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
8-22 Civil Statutes) may perform the inspection under the direction of
8-23 the license holder. For purposes of this Act, "inspection" of
8-24 environmental air conditioning, commercial refrigeration, and
8-25 process cooling and heating equipment means an inspection that
9-1 includes the use of electronic instruments, gauges, thermometers,
9-2 mechanical instruments, or other meters that require direct in-line
9-3 connection to the refrigeration system.
9-4 SECTION 12. Section 25, Residential Service Company Act
9-5 (Article 6573b, Revised Statutes), is amended to read as follows:
9-6 Sec. 25. Exemptions. The provisions of this Act shall not
9-7 apply to any of the following persons and transactions, and each
9-8 and all of the following persons and transactions are hereby
9-9 exempted from the provisions of this Act, to wit:
9-10 (a) performance guarantees given by either the builder
9-11 of a home or the manufacturer or seller of an appliance or other
9-12 system or component;
9-13 (b) any residential service contract executed on or
9-14 before the effective date of this Act;
9-15 (c) any service contract, guarantee, or warranty
9-16 intending to guarantee or warrant the repairs or service of a home
9-17 appliance, system, or component, provided such service contract,
9-18 guarantee, or warranty is issued by a person who has sold,
9-19 serviced, repaired, or provided replacement of such appliance,
9-20 system, or component at the time of, or prior to the issuance of
9-21 such contract, guarantee, or warranty; and provided further that
9-22 the person issuing the service contract, guarantee, or warranty
9-23 does not engage in the business of a service company;
9-24 (d) any person engaging in the business of structural
9-25 pest control in compliance with the Texas Structural Pest Control
10-1 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
10-2 1925);
10-3 (e) any person who performs air conditioning and
10-4 refrigeration contracting in compliance with the Air Conditioning
10-5 and Refrigeration Contractor License Law (Article 8861, Vernon's
10-6 Texas Civil Statutes); and
10-7 (f) any service or maintenance contract or agreement,
10-8 or warranty, which provides for, warrants, or guarantees, the
10-9 maintenance, repair, service, replacement, or operation or
10-10 performance, of any product or part thereof, including but not
10-11 limited to a structural component, the appliances, or the
10-12 electrical, plumbing, heating, cooling or air-conditioning systems
10-13 in or of a building or residence, provided such service or
10-14 maintenance contract or agreement, or warranty is sold, offered for
10-15 sale, or issued by the manufacturer or merchant who manufactured or
10-16 sold such product or part thereof.
10-17 SECTION 13. (a) The change in law made to Section 8, Air
10-18 Conditioning and Refrigeration Contractor License Law (Article
10-19 8861, Vernon's Texas Civil Statutes), by this Act applies only to
10-20 an offense committed on or after the effective date of this Act.
10-21 For purposes of this section, an offense is committed before the
10-22 effective date of this Act if any element of the offense occurs
10-23 before that date.
10-24 (b) An offense committed before the effective date of this
10-25 Act is governed by the law in effect when the offense was
11-1 committed, and the former law is continued in effect for that
11-2 purpose.
11-3 SECTION 14. (a) Except as provided by Subsection (b) of
11-4 this section, the change in law made to Section 9, Air Conditioning
11-5 and Refrigeration Contractor License Law (Article 8861, Vernon's
11-6 Texas Civil Statutes), by this Act applies to a municipal license
11-7 that is issued or renewed on or after the effective date of this
11-8 Act. A municipality subject to that section shall adopt
11-9 examination requirements in compliance with that section not later
11-10 than January 1, 1998.
11-11 (b) To continue to engage in the practice of air
11-12 conditioning and refrigeration contracting after September 1, 1997,
11-13 a person who holds a municipal license on the effective date of
11-14 this Act must satisfy the examination requirements imposed under
11-15 Subsection (b), Section 9, Air Conditioning and Refrigeration
11-16 Contractor License Law (Article 8861, Vernon's Texas Civil
11-17 Statutes), as amended by this Act, not later than June 1, 1998.
11-18 SECTION 15. (a) This Act takes effect September 1, 1997.
11-19 (b) Not later than December 31, 1997, the commissioner of
11-20 licensing and regulation shall adopt rules as required by Section
11-21 3C, Air Conditioning and Refrigeration Contractor License Law
11-22 (Article 8861, Vernon's Texas Civil Statutes), as added by this
11-23 Act.
11-24 (c) Subsection (c), Section 23, The Real Estate License Act
11-25 (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
12-1 Act, applies only to a real estate inspection that is conducted on
12-2 or after the effective date of this Act. A real estate inspection
12-3 conducted before that date is governed by the law in effect on the
12-4 date that the inspection occurs, and the former law is continued in
12-5 effect for that purpose.
12-6 (d) Section 25, Residential Service Company Act (Article
12-7 6573b, Revised Statutes), as amended by this Act, applies only to a
12-8 residential service contract that is entered into on or after the
12-9 effective date of this Act. A residential service contract that is
12-10 entered into before that date is governed by the law in effect on
12-11 the date that the contract is entered into, and the former law is
12-12 continued in effect for that purpose.
12-13 SECTION 16. The importance of this legislation and the
12-14 crowded condition of the calendars in both houses create an
12-15 emergency and an imperative public necessity that the
12-16 constitutional rule requiring bills to be read on three several
12-17 days in each house be suspended, and this rule is hereby suspended.