By: Carona S.R. No. 987
SENATE RESOLUTION
1-1 BE IT RESOLVED by the Senate of the State of Texas, 75th
1-2 Legislature, Regular Session, 1997, That Senate Rule 12.03 be
1-3 suspended in part as provided by Senate Rule 12.08 to enable the
1-4 conference committee appointed to resolve the differences on House
1-5 Bill No. 1391 to consider and take action on the following matters:
1-6 Senate Rule 12.03(4) is suspended to permit the committee
1-7 to add new SECTIONS 1 through 6, 8 through 13, 14(b) and (c), 15,
1-8 and 16(a) through (c) of the bill to read as follows:
1-9 SECTION 1. Section 2, Air Conditioning and Refrigeration
1-10 Contractor License Law (Article 8861, Vernon's Texas Civil
1-11 Statutes), is amended by amending Subdivisions (6) and (7) and
1-12 adding Subdivisions (14) and (15) to read as follows:
1-13 (6) "Person" means an individual, firm, partnership,
1-14 corporation, association, or other organization or combination of
1-15 entities or organizations.
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
2-1 adopted by the commissioner] under Chapter 755, Health and Safety
2-2 Code.
2-3 (14) "Air conditioning and refrigeration contracting
2-4 company" means a person or other entity that performs air
2-5 conditioning and refrigeration contracting.
2-6 (15) "Direct personal supervision" means directing and
2-7 verifying work performed by another person that requires a license
2-8 under this Act and includes hiring, training, and consulting with
2-9 an employee, personally observing and checking the work of an
2-10 employee, and having responsibility for handling customer
2-11 complaints.
2-12 SECTION 2. Section 3(e), Air Conditioning and Refrigeration
2-13 Contractor License Law (Article 8861, Vernon's Texas Civil
2-14 Statutes), is amended to read as follows:
2-15 (e) The commissioner shall prescribe the method and content
2-16 of examinations administered under this Act and shall set
2-17 compliance requirements for the examinations. The examinations
2-18 [shall be offered only in Travis County and] shall be offered on a
2-19 quarterly basis at locations designated by the commissioner.
2-20 SECTION 3. Section 3A, Air Conditioning and Refrigeration
2-21 Contractor License Law (Article 8861, Vernon's Texas Civil
2-22 Statutes), is amended by adding Subsection (i) to read as follows:
2-23 (i) Section 8, Article 6252-33, Revised Statutes, does not
2-24 apply to the advisory board.
2-25 SECTION 4. Section 3B, Air Conditioning and Refrigeration
3-1 Contractor License Law (Article 8861, Vernon's Texas Civil
3-2 Statutes), is amended to read as follows:
3-3 Sec. 3B. LICENSE REQUIRED. (a) Unless the person is
3-4 exempted under Section 6 of this Act, a person may not perform air
3-5 conditioning and refrigeration contracting without a license under
3-6 this Act. An individual is not required to hold a license under
3-7 this Act if the individual is a bona fide employee of an air
3-8 conditioning and refrigeration contracting company that has a
3-9 license holder whose license is assigned to the company and who has
3-10 responsibility for direct personal supervision of the individual.
3-11 (b) An air conditioning and refrigeration contracting
3-12 company that is not exempt under this Act must employ a person who
3-13 is a license holder under this Act and whose license is assigned to
3-14 the company.
3-15 SECTION 5. The Air Conditioning and Refrigeration Contractor
3-16 License Law (Article 8861, Vernon's Texas Civil Statutes) is
3-17 amended by adding Section 3C to read as follows:
3-18 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
3-19 performs air conditioning and refrigeration contracting without
3-20 holding the appropriate license under this Act may not collect a
3-21 fee or otherwise enforce a contract for the services performed. To
3-22 enforce a contract for the performance of air conditioning and
3-23 refrigeration contracting, the person who performs the services
3-24 must present proof that the person holds a license under this Act
3-25 at the time the contract is signed and the work performed.
4-1 (b) The commissioner shall adopt rules relating to the
4-2 manner in which proof may be presented under this section.
4-3 SECTION 6. Sections 4(f) and (g), Air Conditioning and
4-4 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
4-5 Civil Statutes), are amended to read as follows:
4-6 (f) The application must be made on a form prescribed by the
4-7 commissioner and must specify the class of license and each
4-8 endorsement the applicant seeks. The application must be verified
4-9 and must be accompanied by:
4-10 (1) [evidence of the insurance coverage required under
4-11 this Act;]
4-12 [(2)] a statement of the applicant's practical
4-13 experience; and
4-14 (2) [(3)] the examination fee.
4-15 (g) The commissioner shall issue an air conditioning and
4-16 refrigeration contractor license to an applicant who possesses the
4-17 required qualifications, passes the appropriate examinations,
4-18 furnishes evidence of the insurance coverage required under this
4-19 Act, and pays the [examination fee and the] original license fee
4-20 required by this Act. An applicant who fails an examination is
4-21 eligible for reexamination.
4-22 SECTION 8. Section 6(a), Air Conditioning and Refrigeration
4-23 Contractor License Law (Article 8861, Vernon's Texas Civil
4-24 Statutes), is amended to read as follows:
4-25 (a) This Act does not apply to a person who:
5-1 (1) performs air conditioning and refrigeration
5-2 contracting in a building owned solely by him as his home;
5-3 (2) performs air conditioning or refrigeration
5-4 maintenance work if (i) the person is a maintenance man or
5-5 maintenance engineer who is a regular bona fide employee of the
5-6 property owner, the property lessee, or the management company
5-7 managing the property where the maintenance work is being
5-8 performed, (ii) the work is performed in connection with the
5-9 business in which the person is employed, and (iii) the person and
5-10 the person's employer referred to in (i) above do not engage in the
5-11 occupation of air conditioning and refrigeration contracting for
5-12 the general public;
5-13 (3) performs air conditioning and refrigeration
5-14 contracting and is regularly employed by a regulated electric or
5-15 gas utility;
5-16 (4) is licensed as a professional engineer under The
5-17 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
5-18 Statutes), performs work in connection with the business in which
5-19 the person is employed, and does not engage in the practice of air
5-20 conditioning and refrigeration contracting for the general public;
5-21 (5) performs process cooling or heating work for an
5-22 industrial operation such as a chemical plant, petrochemical plant,
5-23 refinery, natural gas plant, or natural gas treating plant when
5-24 employed by that operation;
5-25 (6) performs air conditioning and refrigeration
6-1 contracting on:
6-2 (A) a portable or self-contained ductless air
6-3 conditioning or refrigeration product that has a cooling capacity
6-4 of three tons or less;
6-5 (B) a portable or self-contained heating product
6-6 that does not require the forced movement of air outside the
6-7 heating unit; or
6-8 (C) environmental air conditioning equipment
6-9 that is intended for temporary use and is not fixed in place; [or]
6-10 (7) performs air conditioning services only on a motor
6-11 vehicle air conditioning unit or who employs a person who performs
6-12 air conditioning services only on a motor vehicle air conditioning
6-13 unit; or
6-14 (8) performs air conditioning and refrigeration
6-15 maintenance work on residential evaporative coolers, including
6-16 coolers that are not larger than 6,500 cubic feet per minute.
6-17 SECTION 9. Section 7, Air Conditioning and Refrigeration
6-18 Contractor License Law (Article 8861, Vernon's Texas Civil
6-19 Statutes), is amended to read as follows:
6-20 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
6-21 and refrigeration contractor [person] licensed under this Act shall
6-22 notify the municipal authority who has control of the enforcement
6-23 of regulations relative to air conditioning and refrigeration
6-24 contracting in the municipality in which the person is engaged in
6-25 air conditioning and refrigeration contracting that the person has
7-1 obtained a state license.
7-2 (b) The notification must be in the form required by the
7-3 municipality.
7-4 (c) The amount of a fee imposed by a municipality on a
7-5 contractor to provide notice under this section may be set by the
7-6 municipality only in the amount reasonable and necessary to
7-7 implement this section.
7-8 SECTION 10. Section 8, Air Conditioning and Refrigeration
7-9 Contractor License Law (Article 8861, Vernon's Texas Civil
7-10 Statutes), is amended to read as follows:
7-11 Sec. 8. PENALTY. Except as provided in Section 9, a person
7-12 commits an offense if the person knowingly or intentionally engages
7-13 in air conditioning and refrigeration contracting without a license
7-14 issued under this Act. An offense under this section is a Class A
7-15 [B] misdemeanor.
7-16 SECTION 11. Section 9, Air Conditioning and Refrigeration
7-17 Contractor License Law (Article 8861, Vernon's Texas Civil
7-18 Statutes), is amended to read as follows:
7-19 Sec. 9. Municipal Regulation. (a) A license issued by a
7-20 municipality of this state that complies with the requirements of
7-21 this section is valid under the terms of the license within that
7-22 municipality. However, a license issued under this Act is valid
7-23 throughout the state, and the holder and people under supervision
7-24 are not required to hold a municipal license to practice air
7-25 conditioning and refrigeration contracting in any municipality
8-1 within this state.
8-2 (b) An applicant for a municipal license must:
8-3 (1) pass an examination that covers the same subjects
8-4 as the examination required by the commissioner for an air
8-5 conditioning and refrigeration contractor license of the class of
8-6 work that the municipal applicant proposes to perform; and
8-7 (2) meet experience requirements that are at least as
8-8 strict as those required under Section 4(e) of this Act for an air
8-9 conditioning and refrigeration contractor license.
8-10 (c) A municipality may by ordinance adopt and enforce
8-11 standards for air conditioning and refrigeration contractors that
8-12 are consistent with the standards established under this Act. The
8-13 municipality shall report violations of the ordinance to the
8-14 commissioner not later than the 10th day after the date on which
8-15 the municipality takes action to enforce the ordinance. Conviction
8-16 of an offense under the municipal ordinance is a ground for the
8-17 denial, suspension, or revocation of a license issued under this
8-18 Act.
8-19 SECTION 12. Section 23(c), The Real Estate License Act
8-20 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
8-21 adding Subdivision (4) to read as follows:
8-22 (4) In addition to the license requirements imposed
8-23 under Subdivisions (1), (2), and (3) of this subsection, a business
8-24 entity that inspects an environmental air conditioning system,
8-25 commercial refrigeration system, or process cooling or heating
9-1 system as part of a real estate inspection conducted under this Act
9-2 must employ a person who holds the appropriate air conditioning and
9-3 refrigeration contractor licenses and endorsements under the Air
9-4 Conditioning and Refrigeration Contractor License Law (Article
9-5 8861, Vernon's Texas Civil Statutes). An employee who does not
9-6 hold a license or endorsement under the Air Conditioning and
9-7 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
9-8 Civil Statutes) may perform the inspection under the direction of
9-9 the license holder. For purposes of this Act, an inspection of
9-10 environmental air conditioning, commercial refrigeration, and
9-11 process cooling and heating equipment means an inspection that
9-12 includes the use of electronic instruments, gauges, thermometers,
9-13 mechanical instruments, or other meters that require direct in-line
9-14 connection to the refrigeration system.
9-15 SECTION 13. Section 25, Residential Service Company Act
9-16 (Article 6573b, Revised Statutes), is amended to read as follows:
9-17 Sec. 25. Exemptions. The provisions of this Act shall not
9-18 apply to any of the following persons and transactions, and each
9-19 and all of the following persons and transactions are hereby
9-20 exempted from the provisions of this Act, to wit:
9-21 (a) performance guarantees given by either the builder
9-22 of a home or the manufacturer or seller of an appliance or other
9-23 system or component;
9-24 (b) any residential service contract executed on or
9-25 before the effective date of this Act;
10-1 (c) any service contract, guarantee, or warranty
10-2 intending to guarantee or warrant the repairs or service of a home
10-3 appliance, system, or component, provided such service contract,
10-4 guarantee, or warranty is issued by a person who has sold,
10-5 serviced, repaired, or provided replacement of such appliance,
10-6 system, or component at the time of, or prior to the issuance of
10-7 such contract, guarantee, or warranty; and provided further that
10-8 the person issuing the service contract, guarantee, or warranty
10-9 does not engage in the business of a service company;
10-10 (d) any person engaging in the business of structural
10-11 pest control in compliance with the Texas Structural Pest Control
10-12 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
10-13 1925);
10-14 (e) any person who performs air conditioning and
10-15 refrigeration contracting in compliance with the Air Conditioning
10-16 and Refrigeration Contractor License Law (Article 8861, Vernon's
10-17 Texas Civil Statutes); and
10-18 (f) any service or maintenance contract or agreement,
10-19 or warranty, which provides for, warrants, or guarantees, the
10-20 maintenance, repair, service, replacement, or operation or
10-21 performance, of any product or part thereof, including but not
10-22 limited to a structural component, the appliances, or the
10-23 electrical, plumbing, heating, cooling or air-conditioning systems
10-24 in or of a building or residence, provided such service or
10-25 maintenance contract or agreement, or warranty is sold, offered for
11-1 sale, or issued by the manufacturer or merchant who manufactured or
11-2 sold such product or part thereof.
11-3 SECTION 14. (b) Section 8, Air Conditioning and
11-4 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
11-5 Civil Statutes), as amended by this Act, applies only to an offense
11-6 committed on or after the effective date of this Act. For purposes
11-7 of this section, an offense is committed before the effective date
11-8 of this Act if any element of the offense occurs before that date.
11-9 (c) An offense committed before the effective date of this
11-10 Act is governed by the law in effect when the offense was
11-11 committed, and the former law is continued in effect for that
11-12 purpose.
11-13 SECTION 15. (a) Except as provided by Subsection (b) of
11-14 this section, Section 9, Air Conditioning and Refrigeration
11-15 Contractor License Law (Article 8861, Vernon's Texas Civil
11-16 Statutes), as amended by this Act, applies to a municipal license
11-17 that is issued or renewed on or after the effective date of this
11-18 Act. A municipality subject to that section shall adopt
11-19 examination requirements in compliance with that section not later
11-20 than January 1, 1998.
11-21 (b) To continue to engage in the practice of air
11-22 conditioning and refrigeration contracting after September 1, 1997,
11-23 a person who holds a municipal license on the effective date of
11-24 this Act must satisfy the examination requirements of Section 9(b),
11-25 Air Conditioning and Refrigeration Contractor License Law (Article
12-1 8861, Vernon's Texas Civil Statutes), as amended by this Act, not
12-2 later than June 1, 1998.
12-3 SECTION 16. (a) Not later than December 31, 1997, the
12-4 commissioner of licensing and regulation shall adopt rules as
12-5 required by Section 3C, Air Conditioning and Refrigeration
12-6 Contractor License Law (Article 8861, Vernon's Texas Civil
12-7 Statutes), as added by this Act.
12-8 (b) Section 23(c), The Real Estate License Act (Article
12-9 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
12-10 applies only to a real estate inspection that is conducted on or
12-11 after the effective date of this Act. A real estate inspection
12-12 conducted before that date is governed by the law in effect on the
12-13 date that the inspection occurs, and the former law is continued in
12-14 effect for that purpose.
12-15 (c) Section 25, Residential Service Company Act (Article
12-16 6573b, Revised Statutes), as amended by this Act, applies only to a
12-17 residential service contract that is entered into on or after the
12-18 effective date of this Act. A residential service contract that is
12-19 entered into before that date is governed by the law in effect on
12-20 the date that the contract is entered into, and the former law is
12-21 continued in effect for that purpose.
12-22 Explanation: This change is necessary to allow for the
12-23 effective regulation and licensure of air conditioning and
12-24 refrigeration contractors and the work performed by the
12-25 contractors, their employees, and others.
13-1 ______________________________________
13-2 President of the Senate
13-3 I hereby certify that the above
13-4 Resolution was adopted by the Senate
13-5 on May 31, 1997, by the following
13-6 vote: Yeas 30, Nays 0.
13-7 ______________________________________
13-8 Secretary of the Senate