By Carona S.R. No. 987
75R17554 CAG-D
R E S O L U T I O N
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 H.B.
1-5 1391 to consider and take action on the following matters:
1-6 1. Senate Rule 12.03(4) is suspended to permit the committee
1-7 to add new SECTIONS 1-6, 8-13, 14(b) and (c), 15, and 16(a)-(c) of
1-8 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
1-24 adopted by the commissioner] under Chapter 755, Health and Safety
2-1 Code.
2-2 (14) "Air conditioning and refrigeration contracting
2-3 company" means a person or other entity that performs air
2-4 conditioning and refrigeration contracting.
2-5 (15) "Direct personal supervision" means directing and
2-6 verifying work performed by another person that requires a license
2-7 under this Act and includes hiring, training, and consulting with
2-8 an employee, personally observing and checking the work of an
2-9 employee, and having responsibility for handling customer
2-10 complaints.
2-11 SECTION 2. Section 3(e), Air Conditioning and Refrigeration
2-12 Contractor License Law (Article 8861, Vernon's Texas Civil
2-13 Statutes), is amended to read as follows:
2-14 (e) The commissioner shall prescribe the method and content
2-15 of examinations administered under this Act and shall set
2-16 compliance requirements for the examinations. The examinations
2-17 [shall be offered only in Travis County and] shall be offered on a
2-18 quarterly basis at locations designated by the commissioner.
2-19 SECTION 3. Section 3A, Air Conditioning and Refrigeration
2-20 Contractor License Law (Article 8861, Vernon's Texas Civil
2-21 Statutes), is amended by adding Subsection (i) to read as follows:
2-22 (i) Section 8, Article 6252-33, Revised Statutes, does not
2-23 apply to the advisory board.
2-24 SECTION 4. Section 3B, Air Conditioning and Refrigeration
2-25 Contractor License Law (Article 8861, Vernon's Texas Civil
2-26 Statutes), is amended to read as follows:
2-27 Sec. 3B. LICENSE REQUIRED. (a) Unless the person is
3-1 exempted under Section 6 of this Act, a person may not perform air
3-2 conditioning and refrigeration contracting without a license under
3-3 this Act. An individual is not required to hold a license under
3-4 this Act if the individual is a bona fide employee of an air
3-5 conditioning and refrigeration contracting company that has a
3-6 license holder whose license is assigned to the company and who has
3-7 responsibility for direct personal supervision of the individual.
3-8 (b) An air conditioning and refrigeration contracting
3-9 company that is not exempt under this Act must employ a person who
3-10 is a license holder under this Act and whose license is assigned to
3-11 the company.
3-12 SECTION 5. The Air Conditioning and Refrigeration Contractor
3-13 License Law (Article 8861, Vernon's Texas Civil Statutes) is
3-14 amended by adding Section 3C to read as follows:
3-15 Sec. 3C. ENFORCEMENT OF CONTRACTS. (a) A person who
3-16 performs air conditioning and refrigeration contracting without
3-17 holding the appropriate license under this Act may not collect a
3-18 fee or otherwise enforce a contract for the services performed. To
3-19 enforce a contract for the performance of air conditioning and
3-20 refrigeration contracting, the person who performs the services
3-21 must present proof that the person holds a license under this Act
3-22 at the time the contract is signed and the work performed.
3-23 (b) The commissioner shall adopt rules relating to the
3-24 manner in which proof may be presented under this section.
3-25 SECTION 6. Sections 4(f) and (g), Air Conditioning and
3-26 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
3-27 Civil Statutes), are amended to read as follows:
4-1 (f) The application must be made on a form prescribed by the
4-2 commissioner and must specify the class of license and each
4-3 endorsement the applicant seeks. The application must be verified
4-4 and must be accompanied by:
4-5 (1) [evidence of the insurance coverage required under
4-6 this Act;]
4-7 [(2)] a statement of the applicant's practical
4-8 experience; and
4-9 (2) [(3)] the examination fee.
4-10 (g) The commissioner shall issue an air conditioning and
4-11 refrigeration contractor license to an applicant who possesses the
4-12 required qualifications, passes the appropriate examinations,
4-13 furnishes evidence of the insurance coverage required under this
4-14 Act, and pays the [examination fee and the] original license fee
4-15 required by this Act. An applicant who fails an examination is
4-16 eligible for reexamination.
4-17 SECTION 8. Section 6(a), Air Conditioning and Refrigeration
4-18 Contractor License Law (Article 8861, Vernon's Texas Civil
4-19 Statutes), is amended to read as follows:
4-20 (a) This Act does not apply to a person who:
4-21 (1) performs air conditioning and refrigeration
4-22 contracting in a building owned solely by him as his home;
4-23 (2) performs air conditioning or refrigeration
4-24 maintenance work if (i) the person is a maintenance man or
4-25 maintenance engineer who is a regular bona fide employee of the
4-26 property owner, the property lessee, or the management company
4-27 managing the property where the maintenance work is being
5-1 performed, (ii) the work is performed in connection with the
5-2 business in which the person is employed, and (iii) the person and
5-3 the person's employer referred to in (i) above do not engage in the
5-4 occupation of air conditioning and refrigeration contracting for
5-5 the general public;
5-6 (3) performs air conditioning and refrigeration
5-7 contracting and is regularly employed by a regulated electric or
5-8 gas utility;
5-9 (4) is licensed as a professional engineer under The
5-10 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
5-11 Statutes), performs work in connection with the business in which
5-12 the person is employed, and does not engage in the practice of air
5-13 conditioning and refrigeration contracting for the general public;
5-14 (5) performs process cooling or heating work for an
5-15 industrial operation such as a chemical plant, petrochemical plant,
5-16 refinery, natural gas plant, or natural gas treating plant when
5-17 employed by that operation;
5-18 (6) performs air conditioning and refrigeration
5-19 contracting on:
5-20 (A) a portable or self-contained ductless air
5-21 conditioning or refrigeration product that has a cooling capacity
5-22 of three tons or less;
5-23 (B) a portable or self-contained heating product
5-24 that does not require the forced movement of air outside the
5-25 heating unit; or
5-26 (C) environmental air conditioning equipment
5-27 that is intended for temporary use and is not fixed in place; [or]
6-1 (7) performs air conditioning services only on a motor
6-2 vehicle air conditioning unit or who employs a person who performs
6-3 air conditioning services only on a motor vehicle air conditioning
6-4 unit; or
6-5 (8) performs air conditioning and refrigeration
6-6 maintenance work on residential evaporative coolers, including
6-7 coolers that are not larger than 6,500 cubic feet per minute.
6-8 SECTION 9. Section 7, Air Conditioning and Refrigeration
6-9 Contractor License Law (Article 8861, Vernon's Texas Civil
6-10 Statutes), is amended to read as follows:
6-11 Sec. 7. REPORTING REQUIREMENT. (a) Each air conditioning
6-12 and refrigeration contractor [person] licensed under this Act shall
6-13 notify the municipal authority who has control of the enforcement
6-14 of regulations relative to air conditioning and refrigeration
6-15 contracting in the municipality in which the person is engaged in
6-16 air conditioning and refrigeration contracting that the person has
6-17 obtained a state license.
6-18 (b) The notification must be in the form required by the
6-19 municipality.
6-20 (c) The amount of a fee imposed by a municipality on a
6-21 contractor to provide notice under this section may be set by the
6-22 municipality only in the amount reasonable and necessary to
6-23 implement this section.
6-24 SECTION 10. Section 8, Air Conditioning and Refrigeration
6-25 Contractor License Law (Article 8861, Vernon's Texas Civil
6-26 Statutes), is amended to read as follows:
6-27 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 11. 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
7-26 are consistent with the standards established under this Act. The
7-27 municipality shall report violations of the ordinance to the
8-1 commissioner not later than the 10th day after the date on which
8-2 the municipality takes action to enforce the ordinance. Conviction
8-3 of an offense under the municipal ordinance is a ground for the
8-4 denial, suspension, or revocation of a license issued under this
8-5 Act.
8-6 SECTION 12. Section 23(c), The Real Estate License Act
8-7 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
8-8 adding Subdivision (4) to read as follows:
8-9 (4) In addition to the license requirements imposed
8-10 under Subdivisions (1), (2), and (3) of this subsection, a business
8-11 entity that inspects an environmental air conditioning system,
8-12 commercial refrigeration system, or process cooling or heating
8-13 system as part of a real estate inspection conducted under this Act
8-14 must employ a person who holds the appropriate air conditioning and
8-15 refrigeration contractor licenses and endorsements under the Air
8-16 Conditioning and Refrigeration Contractor License Law (Article
8-17 8861, Vernon's Texas Civil Statutes). An employee who does not
8-18 hold a license or endorsement under the Air Conditioning and
8-19 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
8-20 Civil Statutes) may perform the inspection under the direction of
8-21 the license holder. For purposes of this Act, an inspection of
8-22 environmental air conditioning, commercial refrigeration, and
8-23 process cooling and heating equipment means an inspection that
8-24 includes the use of electronic instruments, gauges, thermometers,
8-25 mechanical instruments, or other meters that require direct in-line
8-26 connection to the refrigeration system.
8-27 SECTION 13. Section 25, Residential Service Company Act
9-1 (Article 6573b, Revised Statutes), is amended to read as follows:
9-2 Sec. 25. Exemptions. The provisions of this Act shall not
9-3 apply to any of the following persons and transactions, and each
9-4 and all of the following persons and transactions are hereby
9-5 exempted from the provisions of this Act, to wit:
9-6 (a) performance guarantees given by either the builder
9-7 of a home or the manufacturer or seller of an appliance or other
9-8 system or component;
9-9 (b) any residential service contract executed on or
9-10 before the effective date of this Act;
9-11 (c) any service contract, guarantee, or warranty
9-12 intending to guarantee or warrant the repairs or service of a home
9-13 appliance, system, or component, provided such service contract,
9-14 guarantee, or warranty is issued by a person who has sold,
9-15 serviced, repaired, or provided replacement of such appliance,
9-16 system, or component at the time of, or prior to the issuance of
9-17 such contract, guarantee, or warranty; and provided further that
9-18 the person issuing the service contract, guarantee, or warranty
9-19 does not engage in the business of a service company;
9-20 (d) any person engaging in the business of structural
9-21 pest control in compliance with the Texas Structural Pest Control
9-22 Act, as amended (Article 135b-6, Vernon's Texas Civil Statutes,
9-23 1925);
9-24 (e) any person who performs air conditioning and
9-25 refrigeration contracting in compliance with the Air Conditioning
9-26 and Refrigeration Contractor License Law (Article 8861, Vernon's
9-27 Texas Civil Statutes); and
10-1 (f) any service or maintenance contract or agreement,
10-2 or warranty, which provides for, warrants, or guarantees, the
10-3 maintenance, repair, service, replacement, or operation or
10-4 performance, of any product or part thereof, including but not
10-5 limited to a structural component, the appliances, or the
10-6 electrical, plumbing, heating, cooling or air-conditioning systems
10-7 in or of a building or residence, provided such service or
10-8 maintenance contract or agreement, or warranty is sold, offered for
10-9 sale, or issued by the manufacturer or merchant who manufactured or
10-10 sold such product or part thereof.
10-11 SECTION 14. (b) Section 8, Air Conditioning and
10-12 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
10-13 Civil Statutes), as amended by this Act, applies only to an offense
10-14 committed on or after the effective date of this Act. For purposes
10-15 of this section, an offense is committed before the effective date
10-16 of this Act if any element of the offense occurs before that date.
10-17 (c) An offense committed before the effective date of this
10-18 Act is governed by the law in effect when the offense was
10-19 committed, and the former law is continued in effect for that
10-20 purpose.
10-21 SECTION 15. (a) Except as provided by Subsection (b) of
10-22 this section, Section 9, Air Conditioning and Refrigeration
10-23 Contractor License Law (Article 8861, Vernon's Texas Civil
10-24 Statutes), as amended by this Act, applies to a municipal license
10-25 that is issued or renewed on or after the effective date of this
10-26 Act. A municipality subject to that section shall adopt
10-27 examination requirements in compliance with that section not later
11-1 than January 1, 1998.
11-2 (b) To continue to engage in the practice of air
11-3 conditioning and refrigeration contracting after September 1, 1997,
11-4 a person who holds a municipal license on the effective date of
11-5 this Act must satisfy the examination requirements of Section 9(b),
11-6 Air Conditioning and Refrigeration Contractor License Law (Article
11-7 8861, Vernon's Texas Civil Statutes), as amended by this Act, not
11-8 later than June 1, 1998.
11-9 SECTION 16. (a) Not later than December 31, 1997, the
11-10 commissioner of licensing and regulation shall adopt rules as
11-11 required by Section 3C, Air Conditioning and Refrigeration
11-12 Contractor License Law (Article 8861, Vernon's Texas Civil
11-13 Statutes), as added by this Act.
11-14 (b) Section 23(c), The Real Estate License Act (Article
11-15 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
11-16 applies only to a real estate inspection that is conducted on or
11-17 after the effective date of this Act. A real estate inspection
11-18 conducted before that date is governed by the law in effect on the
11-19 date that the inspection occurs, and the former law is continued in
11-20 effect for that purpose.
11-21 (c) Section 25, Residential Service Company Act (Article
11-22 6573b, Revised Statutes), as amended by this Act, applies only to a
11-23 residential service contract that is entered into on or after the
11-24 effective date of this Act. A residential service contract that is
11-25 entered into before that date is governed by the law in effect on
11-26 the date that the contract is entered into, and the former law is
11-27 continued in effect for that purpose.
12-1 Explanation: This change is necessary to allow for the
12-2 effective regulation and licensure of air conditioning and
12-3 refrigeration contractors and the work performed by the
12-4 contractors, their employees, and others.