1-1 By: Carona, Truan S.B. No. 229
1-2 (In the Senate - Filed January 16, 1997; January 21, 1997,
1-3 read first time and referred to Committee on International
1-4 Relations, Trade, and Technology; February 6, 1997, reported
1-5 favorably by the following vote: Yeas 7, Nays 0; February 6, 1997,
1-6 sent to printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the regulation of air conditioning and refrigeration
1-10 contractors; providing penalties.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subdivisions (7) and (9), Section 2, Air
1-13 Conditioning and Refrigeration Contractor License Law (Article
1-14 8861, Vernon's Texas Civil Statutes), are amended to read as
1-15 follows:
1-16 (7) "Air conditioning and refrigeration maintenance
1-17 work" means repair work and all other work required for the
1-18 continued normal performance of an environmental air conditioning
1-19 system, commercial refrigeration system or equipment, or process
1-20 cooling or heating system. The term does not include the
1-21 installation of a total replacement of the system or the
1-22 installation or repair of boilers or pressure vessels [that must be
1-23 installed by licensed persons pursuant to rules and regulations
1-24 adopted by the commissioner] under Chapter 755, Health and Safety
1-25 Code.
1-26 (9) "Air conditioning and refrigeration contracting"
1-27 means the design, installation, construction, maintenance, service,
1-28 repair, alteration, or modification of a product or of equipment in
1-29 environmental air conditioning, commercial refrigeration, or
1-30 process cooling or heating systems. The term includes cleaning
1-31 equipment and duct materials as required for the proper operation
1-32 of such a system.
1-33 SECTION 2. Subsection (e), Section 3, Air Conditioning and
1-34 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-35 Civil Statutes), is amended to read as follows:
1-36 (e) The commissioner shall prescribe the method and content
1-37 of examinations administered under this Act and shall set
1-38 compliance requirements for the examinations. The examinations
1-39 [shall be offered only in Travis County and] shall be offered on a
1-40 quarterly basis at locations designated by the commissioner.
1-41 SECTION 3. Section 3A, Air Conditioning and Refrigeration
1-42 Contractor License Law (Article 8861, Vernon's Texas Civil
1-43 Statutes), is amended by adding Subsection (i) to read as follows:
1-44 (i) Section 8, Article 6252-33, Revised Statutes, does not
1-45 apply to the advisory board.
1-46 SECTION 4. Section 3B, Air Conditioning and Refrigeration
1-47 Contractor License Law (Article 8861, Vernon's Texas Civil
1-48 Statutes), is amended to read as follows:
1-49 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
1-50 is exempted under Section 6 of this Act, a person may not perform
1-51 air conditioning and refrigeration contracting without a license
1-52 under this Act.
1-53 (b) A representative of the department or a municipal
1-54 official may issue a citation to a person who performs air
1-55 conditioning and refrigeration contracting without a license issued
1-56 under this Act. To the extent authorized by Chapter 29, Government
1-57 Code, the municipal court has concurrent jurisdiction with a
1-58 justice court of a precinct in which the municipality is located in
1-59 a case arising from a citation issued under this subsection.
1-60 SECTION 5. The Air Conditioning and Refrigeration Contractor
1-61 License Law (Article 8861, Vernon's Texas Civil Statutes) is
1-62 amended by adding Section 3C to read as follows:
1-63 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
1-64 performs air conditioning and refrigeration contracting without
2-1 holding the appropriate license under this Act may not collect a
2-2 fee or otherwise enforce a contract for the services performed. To
2-3 enforce a contract for the performance of air conditioning and
2-4 refrigeration contracting, the person who performs the services
2-5 must present proof that the person holds a license under this Act
2-6 at the time the contract is signed and the work performed.
2-7 (b) The commissioner shall adopt rules relating to the
2-8 manner in which proof may be presented under this section.
2-9 SECTION 6. Subsections (f) and (g), Section 4, Air
2-10 Conditioning and Refrigeration Contractor License Law (Article
2-11 8861, Vernon's Texas Civil Statutes), are amended to read as
2-12 follows:
2-13 (f) The application must be made on a form prescribed by the
2-14 commissioner and must specify the class of license and each
2-15 endorsement the applicant seeks. The application must be verified
2-16 and must be accompanied by:
2-17 (1) [evidence of the insurance coverage required under
2-18 this Act;]
2-19 [(2)] a statement of the applicant's practical
2-20 experience; and
2-21 (2) [(3)] the examination fee.
2-22 (g) The commissioner shall issue an air conditioning and
2-23 refrigeration contractor license to an applicant who possesses the
2-24 required qualifications, passes the appropriate examinations,
2-25 furnishes evidence of the insurance coverage required under this
2-26 Act, and pays the [examination fee and the] original license fee
2-27 required by this Act. An applicant who fails an examination is
2-28 eligible for reexamination.
2-29 SECTION 7. Section 7, Air Conditioning and Refrigeration
2-30 Contractor License Law (Article 8861, Vernon's Texas Civil
2-31 Statutes), is amended to read as follows:
2-32 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
2-33 and refrigeration contractor [person] licensed under this Act shall
2-34 notify the municipal authority who has control of the enforcement
2-35 of regulations relative to air conditioning and refrigeration
2-36 contracting in the municipality in which the person is engaged in
2-37 air conditioning and refrigeration contracting that the person has
2-38 obtained a state license.
2-39 (b) The notification must be in the form required by the
2-40 municipality.
2-41 (c) The amount of a fee imposed by a municipality on a
2-42 contractor to provide notice under this section may be set by the
2-43 municipality only in the amount reasonable and necessary to
2-44 implement this section.
2-45 SECTION 8. Section 8, 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. 8. PENALTY. Except as provided in Section 9, a person
2-49 commits an offense if the person knowingly or intentionally engages
2-50 in air conditioning and refrigeration contracting without a license
2-51 issued under this Act. An offense under this section is a Class A
2-52 [B] misdemeanor.
2-53 SECTION 9. Section 9, Air Conditioning and Refrigeration
2-54 Contractor License Law (Article 8861, Vernon's Texas Civil
2-55 Statutes), is amended to read as follows:
2-56 Sec. 9. Municipal Regulation. (a) A license issued by a
2-57 municipality of this state that complies with the requirements of
2-58 this section is valid under the terms of the license within that
2-59 municipality. However, a license issued under this Act is valid
2-60 throughout the state, and the holder and people under supervision
2-61 are not required to hold a municipal license to practice air
2-62 conditioning and refrigeration contracting in any municipality
2-63 within this state.
2-64 (b) An applicant for a municipal license must:
2-65 (1) pass an examination that covers the same subjects
2-66 as the examination required by the commissioner for an air
2-67 conditioning and refrigeration contractor license of the class of
2-68 work that the municipal applicant proposes to perform; and
2-69 (2) meet experience requirements that are at least as
3-1 strict as those required under Section 4(e) of this Act for an air
3-2 conditioning and refrigeration contractor license.
3-3 (c) A municipality may by ordinance adopt and enforce
3-4 standards for air conditioning and refrigeration contractors that
3-5 are consistent with the standards established under this Act. The
3-6 municipality shall report violations of the ordinance to the
3-7 commissioner not later than the 10th day after the date on which
3-8 the municipality takes action to enforce the ordinance. Conviction
3-9 of an offense under the municipal ordinance is a ground for the
3-10 denial, suspension, or revocation of a license issued under this
3-11 Act.
3-12 SECTION 10. Subsection (c), Section 23, The Real Estate
3-13 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
3-14 amended by adding Subdivision (4) to read as follows:
3-15 (4) In addition to the license requirements imposed
3-16 under Subdivisions (1), (2), and (3) of this subsection, a business
3-17 entity that inspects an environmental air conditioning system,
3-18 commercial refrigeration system, or process cooling or heating
3-19 system as part of a real estate inspection conducted under this Act
3-20 must employ a person who holds the appropriate air conditioning and
3-21 refrigeration contractor licenses and endorsements under the Air
3-22 Conditioning and Refrigeration Contractor License Law (Article
3-23 8861, Vernon's Texas Civil Statutes). An employee who does not
3-24 hold a license or endorsement under the Air Conditioning and
3-25 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
3-26 Civil Statutes) may perform the inspection under the direction of
3-27 the license holder. For purposes of this Act, "inspection" of
3-28 environmental air conditioning, commercial refrigeration, and
3-29 process cooling and heating equipment means an inspection that
3-30 includes the use of electronic instruments, gauges, thermometers,
3-31 mechanical instruments, or other meters that require direct in-line
3-32 connection to the refrigerant system.
3-33 SECTION 11. Section 25, Residential Service Company Act
3-34 (Article 6573b, Revised Statutes), is amended to read as follows:
3-35 Sec. 25. Exemptions. The provisions of this Act shall not
3-36 apply to any of the following persons and transactions, and each
3-37 and all of the following persons and transactions are hereby
3-38 exempted from the provisions of this Act, to wit:
3-39 (a) performance guarantees given by either the builder
3-40 of a home or the manufacturer or seller of an appliance or other
3-41 system or component;
3-42 (b) any residential service contract executed on or
3-43 before the effective date of this Act;
3-44 (c) any service contract, guarantee, or warranty
3-45 intending to guarantee or warrant the repairs or service of a home
3-46 appliance, system, or component, provided such service contract,
3-47 guarantee, or warranty is issued by a person who has sold,
3-48 serviced, repaired, or provided replacement of such appliance,
3-49 system, or component at the time of, or prior to the issuance of
3-50 such contract, guarantee, or warranty; and provided further that
3-51 the person issuing the service contract, guarantee, or warranty
3-52 does not engage in the business of a service company;
3-53 (d) any person engaging in the business of structural
3-54 pest control in compliance with the Texas Structural Pest Control
3-55 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
3-56 1925);
3-57 (e) any person who performs air conditioning and
3-58 refrigeration contracting in compliance with the Air Conditioning
3-59 and Refrigeration Contractor License Law (Article 8861, Vernon's
3-60 Texas Civil Statutes); and
3-61 (f) any service or maintenance contract or agreement,
3-62 or warranty, which provides for, warrants, or guarantees, the
3-63 maintenance, repair, service, replacement, or operation or
3-64 performance, of any product or part thereof, including but not
3-65 limited to a structural component, the appliances, or the
3-66 electrical, plumbing, heating, cooling or air-conditioning systems
3-67 in or of a building or residence, provided such service or
3-68 maintenance contract or agreement, or warranty is sold, offered for
3-69 sale, or issued by the manufacturer or merchant who manufactured or
4-1 sold such product or part thereof.
4-2 SECTION 12. (a) The change in law made to Section 8, Air
4-3 Conditioning and Refrigeration Contractor License Law (Article
4-4 8861, Vernon's Texas Civil Statutes), by this Act applies only to
4-5 an offense committed on or after the effective date of this Act.
4-6 For purposes of this section, an offense is committed before the
4-7 effective date of this Act if any element of the offense occurs
4-8 before that date.
4-9 (b) An offense committed before the effective date of this
4-10 Act is governed by the law in effect when the offense was
4-11 committed, and the former law is continued in effect for that
4-12 purpose.
4-13 SECTION 13. (a) Except as provided by Subsection (b) of
4-14 this section, the change in law made to Section 9, Air Conditioning
4-15 and Refrigeration Contractor License Law (Article 8861, Vernon's
4-16 Texas Civil Statutes), by this Act applies to a municipal license
4-17 that is issued or renewed on or after the effective date of this
4-18 Act. A municipality subject to that section shall adopt
4-19 examination requirements in compliance with that section not later
4-20 than January 1, 1998.
4-21 (b) To continue to engage in the practice of air
4-22 conditioning and refrigeration contracting after September 1, 1997,
4-23 a person who holds a municipal license on the effective date of
4-24 this Act must satisfy the examination requirements imposed under
4-25 Subsection (b), Section 9, Air Conditioning and Refrigeration
4-26 Contractor License Law (Article 8861, Vernon's Texas Civil
4-27 Statutes), as amended by this Act, not later than June 1, 1998.
4-28 SECTION 14. (a) This Act takes effect September 1, 1997.
4-29 (b) Not later than December 31, 1997, the commissioner of
4-30 licensing and regulation shall adopt rules as required by Section
4-31 3C, Air Conditioning and Refrigeration Contractor License Law
4-32 (Article 8861, Vernon's Texas Civil Statutes), as added by this
4-33 Act.
4-34 (c) Subsection (c), Section 23, The Real Estate License Act
4-35 (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
4-36 Act, applies only to a real estate inspection that is conducted on
4-37 or after the effective date of this Act. A real estate inspection
4-38 conducted before that date is governed by the law in effect on the
4-39 date that the inspection occurs, and the former law is continued in
4-40 effect for that purpose.
4-41 (d) Section 25, Residential Service Company Act (Article
4-42 6573b, Revised Statutes), as amended by this Act, applies only to a
4-43 residential service contract that is entered into on or after the
4-44 effective date of this Act. A residential service contract that is
4-45 entered into before that date is governed by the law in effect on
4-46 the date that the contract is entered into, and the former law is
4-47 continued in effect for that purpose.
4-48 SECTION 15. The importance of this legislation and the
4-49 crowded condition of the calendars in both houses create an
4-50 emergency and an imperative public necessity that the
4-51 constitutional rule requiring bills to be read on three several
4-52 days in each house be suspended, and this rule is hereby suspended.
4-53 * * * * *