1-1 AN ACT
1-2 relating to the regulation of air conditioning and refrigeration
1-3 contractors; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 2(7) and (9), Air Conditioning and
1-6 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-7 Civil Statutes), are amended to read as 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 to perform or offer to perform the design, installation,
1-20 construction, maintenance, service, repair, alteration, or
1-21 modification of a product or of equipment in environmental air
1-22 conditioning, commercial refrigeration, or process cooling or
1-23 heating systems.
1-24 SECTION 2. Section 2, Air Conditioning and Refrigeration
2-1 Contractor License Law (Article 8861, Vernon's Texas Civil
2-2 Statutes), is amended by adding Subdivision (14) to read as
2-3 follows:
2-4 (14) "Air conditioning and refrigeration contracting
2-5 company" means any person, sole proprietorship, corporation,
2-6 partnership, association, or other business entity that performs or
2-7 offers to perform air conditioning and refrigeration contracting to
2-8 the general public.
2-9 SECTION 3. Sections 3(b) and (m), Air Conditioning and
2-10 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
2-11 Civil Statutes), are amended to read as follows:
2-12 (b) The executive director [commissioner] may issue an
2-13 emergency order as necessary to enforce this Act if the executive
2-14 director [commissioner] determines that an emergency exists
2-15 requiring immediate action to protect the public health and safety.
2-16 The order may be issued without notice and hearing or with any
2-17 notice and hearing that the executive director [commissioner]
2-18 considers practicable under the circumstances. If an emergency
2-19 order is issued under this subsection without a hearing, the
2-20 executive director [commissioner] shall set the time and place for
2-21 a hearing to affirm, modify, or set aside the emergency order. The
2-22 executive director may issue cease and desist orders.
2-23 (m) A representative of the department [commission] or a
2-24 municipal air conditioning or refrigeration inspector within the
2-25 jurisdiction of the municipality may issue a citation to a person
2-26 who violates Section 10(e) or (f) of this Act.
2-27 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; CITATION. (a) Unless the person
3-4 is exempted under Section 6 of this Act, a person may not perform
3-5 air conditioning and refrigeration contracting without a license
3-6 under this Act.
3-7 (b) An air conditioning and refrigeration contracting
3-8 company must employ full time in each permanent office a license
3-9 holder whose license is assigned to that company.
3-10 (c) A municipal or county official may issue a citation to
3-11 an air conditioning and refrigeration contracting company that
3-12 performs air conditioning and refrigeration contracting without a
3-13 license issued under this Act, if the person is not exempt from the
3-14 provisions of this Act.
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. An air conditioning and
3-19 refrigeration contracting company that performs air conditioning
3-20 and refrigeration contracting without employing a licensee with the
3-21 appropriate license under this Act may not collect a fee or
3-22 otherwise enforce a contract for the services performed. To
3-23 enforce a contract for the performance of air conditioning and
3-24 refrigeration contracting, the air conditioning and refrigeration
3-25 contracting company that performs the services must have been
3-26 licensed at the time the contract is signed and at the time the
3-27 work is performed.
4-1 SECTION 6. Sections 4(f) and (g), Air Conditioning and
4-2 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
4-3 Civil Statutes), are amended to read as follows:
4-4 (f) The application must be made on a form prescribed by the
4-5 commissioner and must specify the class of license and each
4-6 endorsement the applicant seeks. The application must be verified
4-7 and must be accompanied by:
4-8 (1) [evidence of the insurance coverage required under
4-9 this Act;]
4-10 [(2)] a statement of the applicant's practical
4-11 experience; and
4-12 (2) [(3)] the examination fee.
4-13 (g) The executive director [commissioner] shall issue an air
4-14 conditioning and refrigeration contractor license to an applicant
4-15 who possesses the required qualifications, passes the appropriate
4-16 examinations, furnishes evidence of the insurance coverage required
4-17 under this Act, and pays the [examination fee and the] original
4-18 license fee required by this Act. An applicant who fails an
4-19 examination is eligible for reexamination.
4-20 SECTION 7. Section 5(a), Air Conditioning and Refrigeration
4-21 Contractor License Law (Article 8861, Vernon's Texas Civil
4-22 Statutes), is amended to read as follows:
4-23 (a) A violation of this Act or a rule adopted under this Act
4-24 is a ground for the denial, suspension, or revocation of a license
4-25 issued under this Act. The failure to provide proper installation,
4-26 service, or [and] mechanical integrity under this Act constitutes a
4-27 violation of this Act. An intentional or knowing misrepresentation
5-1 of necessary services, services to be provided, or services that
5-2 have been provided, or a fraudulent promise made to influence,
5-3 persuade, or induce an individual to contract for services
5-4 constitutes a violation of this Act and a ground for the suspension
5-5 or revocation of a license issued under this Act.
5-6 SECTION 8. Section 6(a), Air Conditioning and Refrigeration
5-7 Contractor License Law (Article 8861, Vernon's Texas Civil
5-8 Statutes), is amended to read as follows:
5-9 (a) This Act does not apply to a person who:
5-10 (1) performs air conditioning and refrigeration
5-11 contracting in a building owned solely by him as his home;
5-12 (2) performs air conditioning or refrigeration
5-13 maintenance work if (i) the person is a maintenance man or
5-14 maintenance engineer who is a regular bona fide employee of the
5-15 property owner, the property lessee, or the management company
5-16 managing the property where the maintenance work is being
5-17 performed, (ii) the work is performed in connection with the
5-18 business in which the person is employed, and (iii) the person and
5-19 the person's employer referred to in (i) above do not engage in the
5-20 occupation of air conditioning and refrigeration contracting for
5-21 the general public;
5-22 (3) performs air conditioning and refrigeration
5-23 contracting and is regularly employed by a regulated electric or
5-24 gas utility;
5-25 (4) is licensed as a professional engineer under The
5-26 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
5-27 Statutes), performs work in connection with the business in which
6-1 the person is employed, and does not engage in the practice of air
6-2 conditioning and refrigeration contracting for the general public;
6-3 (5) performs process cooling or heating work for an
6-4 industrial operation such as a chemical plant, petrochemical plant,
6-5 refinery, natural gas plant, or natural gas treating plant when
6-6 employed by that operation;
6-7 (6) performs air conditioning and refrigeration
6-8 contracting on:
6-9 (A) a portable or self-contained ductless air
6-10 conditioning [or refrigeration] product that has a cooling capacity
6-11 of three tons or less;
6-12 (B) a portable or self-contained heating product
6-13 that does not require the forced movement of air outside the
6-14 heating unit; [or]
6-15 (C) environmental air conditioning equipment
6-16 that is intended for temporary use and is not fixed in place; or
6-17 (D) residential refrigerators, freezers, and ice
6-18 machines; or
6-19 (7) performs air conditioning services only on a motor
6-20 vehicle air conditioning unit or who employs a person who performs
6-21 air conditioning services only on a motor vehicle air conditioning
6-22 unit.
6-23 SECTION 9. Section 7, Air Conditioning and Refrigeration
6-24 Contractor License Law (Article 8861, Vernon's Texas Civil
6-25 Statutes), is amended to read as follows:
6-26 Sec. 7. REPORTING REQUIREMENT. (a) Each person licensed
6-27 under this Act shall notify the municipal authority who has control
7-1 of the enforcement of regulations relative to air conditioning and
7-2 refrigeration contracting in the municipality in which the person
7-3 is engaged in air conditioning and refrigeration contracting that
7-4 the person has obtained a state license.
7-5 (b) The notification must be in the form required by the
7-6 municipality.
7-7 (c) The amount of a fee imposed by a municipality on a
7-8 contractor to provide notice under this section may be set by the
7-9 municipality only in an amount reasonable and necessary to
7-10 implement this section.
7-11 SECTION 10. Section 8, Air Conditioning and Refrigeration
7-12 Contractor License Law (Article 8861, Vernon's Texas Civil
7-13 Statutes), is amended to read as follows:
7-14 Sec. 8. PENALTY. Except as provided in Section 9, a person
7-15 commits an offense if the person knowingly or intentionally engages
7-16 in air conditioning and refrigeration contracting without a license
7-17 issued under this Act. An offense under this section is a Class C
7-18 [B] misdemeanor.
7-19 SECTION 11. Section 9, Air Conditioning and Refrigeration
7-20 Contractor License Law (Article 8861, Vernon's Texas Civil
7-21 Statutes), is amended to read as follows:
7-22 Sec. 9. MUNICIPAL REGULATION. (a) A license issued by a
7-23 municipality of this state that complies with the requirements of
7-24 this section is valid under the terms of the license within that
7-25 municipality. However, a license issued [under this Act] by the
7-26 department is valid throughout the state, and the holder and people
7-27 under supervision are not required to hold a municipal license to
8-1 practice air conditioning and refrigeration contracting in any
8-2 municipality within this state.
8-3 (b) An applicant for a municipal license must:
8-4 (1) pass an examination that covers the same subjects
8-5 as the examination required by the commissioner for an air
8-6 conditioning and refrigeration contractor license of the class of
8-7 work that the municipal applicant proposes to perform; and
8-8 (2) meet experience requirements that are at least as
8-9 strict as those required under Section 4(e) of this Act for an air
8-10 conditioning and refrigeration contractor license.
8-11 (c) A municipality may by ordinance adopt and enforce
8-12 standards for air conditioning and refrigeration contractors that
8-13 are consistent with the standards established under this Act. The
8-14 municipality shall report violations of the ordinance to the
8-15 commissioner not later than the 10th day after the date on which
8-16 the municipality takes action to enforce the ordinance. Conviction
8-17 of an offense under the municipal ordinance is a ground for the
8-18 denial, suspension, or revocation of a license issued under this
8-19 Act.
8-20 SECTION 12. Section 10(h), Air Conditioning and
8-21 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
8-22 Civil Statutes), is amended to read as follows:
8-23 (h) A person commits an offense if the person purchases a
8-24 refrigerant or equipment containing a refrigerant in this state in
8-25 violation of Subsection (c), (e), or (f) of this section. An
8-26 offense under this subsection is a Class C [B] misdemeanor.
8-27 SECTION 13. Section 10, Air Conditioning and Refrigeration
9-1 Contractor License Law (Article 8861, Vernon's Texas Civil
9-2 Statutes), is amended by adding Subsection (j), to read as follows:
9-3 (j) This section does not apply to persons exempt under
9-4 Section 6(a)(3), (5), or (7) of this Act.
9-5 SECTION 14. (a) The change in law made to Section 8, Air
9-6 Conditioning and Refrigeration Contractor License Law (Article
9-7 8861, Vernon's Texas Civil Statutes), by this Act applies only to
9-8 an offense committed on or after the effective date of this Act.
9-9 For purposes of this section, an offense is committed before the
9-10 effective date of this Act if any element of the offense occurs
9-11 before that date.
9-12 (b) An offense committed before the effective date of this
9-13 Act is governed by the law in effect when the offense was
9-14 committed, and the former law is continued in effect for that
9-15 purpose.
9-16 SECTION 15. (a) Except as provided by Subsection (b) of
9-17 this section, the change in law made to Section 9, Air Conditioning
9-18 and Refrigeration Contractor License Law (Article 8861, Vernon's
9-19 Texas Civil Statutes), by this Act applies to a municipal license
9-20 that is issued or renewed on or after the effective date of this
9-21 Act. A municipality subject to that section shall adopt
9-22 examination requirements in compliance with that section not later
9-23 than January 1, 2000.
9-24 (b) To continue to engage in the practice of air
9-25 conditioning and refrigeration contracting after September 1, 1999,
9-26 a person who holds a municipal license on the effective date of
9-27 this Act must satisfy the examination requirements imposed under
10-1 Section 9(b), Air Conditioning and Refrigeration Contractor License
10-2 Law (Article 8861, Vernon's Texas Civil Statutes), as amended by
10-3 this Act, not later than June 1, 2000.
10-4 SECTION 16. (a) This Act takes effect September 1, 1999.
10-5 (b) Not later than December 31, 1999, the commissioner of
10-6 licensing and regulation shall adopt rules as required by Section
10-7 3C, Air Conditioning and Refrigeration Contractor License Law
10-8 (Article 8861, Vernon's Texas Civil Statutes), as added by this
10-9 Act.
10-10 SECTION 17. The importance of this legislation and the
10-11 crowded condition of the calendars in both houses create an
10-12 emergency and an imperative public necessity that the
10-13 constitutional rule requiring bills to be read on three several
10-14 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1822 was passed by the House on May
8, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1822 on May 21, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1822 was passed by the Senate, with
amendments, on May 19, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor