76R8586 T
By Yarbrough H.B. No. 1822
Substitute the following for H.B. No. 1822:
By Moreno of Harris C.S.H.B. No. 1822
A BILL TO BE ENTITLED
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. Subdivisions (7) and (9), Section 2, Air
1-6 Conditioning and Refrigeration Contractor License Law (Article
1-7 8861, Vernon's Texas Civil Statutes), are amended to read as
1-8 follows:
1-9 (7) "Air conditioning and refrigeration maintenance
1-10 work" means repair work and all other work required for the
1-11 continued normal performance of an environmental air conditioning
1-12 system, commercial refrigeration system or equipment, or process
1-13 cooling or heating system. The term does not include the
1-14 installation of a total replacement of the system or the
1-15 installation or repair of boilers or pressure vessels that must be
1-16 installed [by licensed persons] pursuant to rules and regulations
1-17 adopted by the commissioner under Chapter 755, Health and Safety
1-18 Code.
1-19 (9) "Air conditioning and refrigeration contracting"
1-20 means to perform or offer to perform the design, installation,
1-21 construction, maintenance, service, repair, alteration, or
1-22 modification of a product or of equipment in environmental air
1-23 conditioning, commercial refrigeration, or process cooling or
1-24 heating systems.
2-1 SECTION 2. Section 2, Air Conditioning and Refrigeration
2-2 Contractor License Law (Article 8861, Vernon's Texas Civil
2-3 Statutes) is amended by adding Subdivision (14), to read as
2-4 follows:
2-5 (14) "Air conditioning and refrigeration contracting
2-6 company" means any person, sole proprietorship, corporation,
2-7 partnership, association, or other business entity that performs or
2-8 offers to perform air conditioning and refrigeration contracting to
2-9 the general public.
2-10 SECTION 3. Subdivisions (b) and (m), Section 3, Air
2-11 Conditioning and Refrigeration Contractor License Law (Article
2-12 8861, Vernon's Texas Civil Statutes), are amended to read as
2-13 follows:
2-14 (b) The executive director may issue an emergency order as
2-15 necessary to enforce this Act if the executive director determines
2-16 that an emergency exists requiring immediate action to protect the
2-17 public health and safety. The order may be issued without notice
2-18 and hearing or with any notice and hearing that the executive
2-19 director considers practicable under the circumstances. If an
2-20 emergency order is issued under this subsection without a hearing,
2-21 the executive director shall set the time and place for a hearing
2-22 to affirm, modify, or set aside the emergency order. The executive
2-23 director may issue cease and desist orders.
2-24 (m) A representative of the Department [commission] or a
2-25 municipal air conditioning or refrigeration inspector within the
2-26 jurisdiction of the municipality may issue a citation to a person
2-27 who violates Section 10(e) or (f) of this Act.
3-1 SECTION 4. Section 3B, Air Conditioning and Refrigeration
3-2 Contractor License Law (Article 8861, Vernon's Texas Civil
3-3 Statutes), is amended to read as follows:
3-4 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
3-5 is exempted under Section 6 of this Act, a person may not perform
3-6 air conditioning and refrigeration contracting without a license
3-7 under this Act.
3-8 (b) An air conditioning and refrigeration contracting
3-9 company must employ full time in each permanent office a license
3-10 holder whose license is assigned to that company.
3-11 (c) A municipal or county official may issue a citation to
3-12 an air conditioning and refrigeration contracting company which
3-13 performs air conditioning and refrigeration contracting without a
3-14 license issued under this Act, if the person is not exempt from the
3-15 provisions of this Act.
3-16 SECTION 5. The Air Conditioning and Refrigeration Contractor
3-17 License Law (Article 8861, Vernon's Texas Civil Statutes) is
3-18 amended by adding Section 3C to read as follows:
3-19 Sec. 3C. ENFORCEMENT OF CONTRACTS. An air conditioning and
3-20 refrigeration contracting company that performs air conditioning
3-21 and refrigeration contracting without employing a licensee with the
3-22 appropriate license under this Act may not collect a fee or
3-23 otherwise enforce a contract for the services performed. To
3-24 enforce a contract for the performance of air conditioning and
3-25 refrigeration contracting, the air conditioning and refrigeration
3-26 contracting company that performs the services must have been
3-27 licensed at the time the contract is signed and at the time the
4-1 work is performed.
4-2 SECTION 6. Subsections (f) and (g), Section 4, Air
4-3 Conditioning and Refrigeration Contractor License Law (Article
4-4 8861, Vernon's Texas Civil Statutes), are amended to read as
4-5 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 executive director [commissioner] shall issue an air
4-16 conditioning and refrigeration contractor license to an applicant
4-17 who possesses the required qualifications, passes the appropriate
4-18 examinations, furnishes evidence of the insurance coverage required
4-19 under this Act, and pays the [examination fee and the] original
4-20 license fee required by this Act. An applicant who fails an
4-21 examination is eligible for reexamination.
4-22 SECTION 7. Section 5, 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) A violation of this Act or a rule adopted under this Act
4-26 is a ground for the denial, suspension, or revocation of a license
4-27 issued under this Act. The failure to provide proper installation,
5-1 service, or [and] mechanical integrity under this Act constitutes a
5-2 violation of this Act. An intentional or knowing misrepresentation
5-3 of necessary services, services to be provided, or services that
5-4 have been provided, or a fraudulent promise made to influence,
5-5 persuade, or induce an individual to contract for services
5-6 constitutes a violation of this Act and a ground for the suspension
5-7 or revocation of a license issued under this Act.
5-8 SECTION 8. Section 6, Subsection (a)(6), Air Conditioning
5-9 and Refrigeration Contractor License Law (Article 8861, Vernon's
5-10 Texas Civil Statutes), is amended to read as follows:
5-11 (6) performs air conditioning and refrigeration
5-12 contracting on:
5-13 (A) a portable or self-contained ductless air
5-14 conditioning [or refrigeration] product that has a cooling capacity
5-15 of three tons or less;
5-16 (B) a portable or self-contained heating product
5-17 that does not require the forced movement of air outside the
5-18 heating unit; or
5-19 (C) environmental air conditioning equipment
5-20 that is intended for temporary use and is not fixed in place; or
5-21 (D) residential refrigerators, freezers, and ice
5-22 machines;
5-23 SECTION 9. Section 7, Air Conditioning and Refrigeration
5-24 Contractor License Law (Article 8861, Vernon's Texas Civil
5-25 Statutes), is amended to read as follows:
5-26 Sec. 7. REPORTING REQUIREMENT. (a) Each person licensed
5-27 under this Act shall notify the municipal authority who has control
6-1 of the enforcement of regulations relative to air conditioning and
6-2 refrigeration contracting in the municipality in which the person
6-3 is engaged in air conditioning and refrigeration contracting that
6-4 the person has obtained a state license.
6-5 (b) The notification must be in the form required by the
6-6 municipality.
6-7 (c) The amount of a fee imposed by a municipality on a
6-8 contractor to provide notice under this section may be set by the
6-9 municipality only in an amount reasonable and necessary to
6-10 implement this section.
6-11 SECTION 10. Section 8, Air Conditioning and Refrigeration
6-12 Contractor License Law (Article 8861, Vernon's Texas Civil
6-13 Statutes), is amended to read as follows:
6-14 Sec. 8. PENALTY. Except as provided in Section 9, a person
6-15 commits an offense if the person knowingly or intentionally engages
6-16 in air conditioning and refrigeration contracting without a license
6-17 issued under this Act. An offense under this section is a Class C
6-18 [B] misdemeanor.
6-19 SECTION 11. Section 9, Air Conditioning and Refrigeration
6-20 Contractor License Law (Article 8861, Vernon's Texas Civil
6-21 Statutes), is amended to read as follows:
6-22 Sec. 9. MUNICIPAL REGULATION. (a) A license issued by a
6-23 municipality of this state that complies with the requirements of
6-24 this section is valid under the terms of the license within that
6-25 municipality. However, a license issued [under this Act] by the
6-26 Department is valid throughout the state, and the holder and people
6-27 under supervision are not required to hold a municipal license to
7-1 practice air conditioning and refrigeration contracting in any
7-2 municipality within this state.
7-3 (b) An applicant for a municipal license must:
7-4 (1) pass an examination that covers the same subjects
7-5 as the examination required by the commissioner for an air
7-6 conditioning and refrigeration contractor license of the class of
7-7 work that the municipal applicant proposes to perform; and
7-8 (2) meet experience requirements that are at least as
7-9 strict as those required under Section 4(e) of this Act for an air
7-10 conditioning and refrigeration contractor license.
7-11 (c) A municipality may by ordinance adopt and enforce
7-12 standards for air conditioning and refrigeration contractors that
7-13 are consistent with the standards established under this Act. The
7-14 municipality shall report violations of the ordinance to the
7-15 commissioner not later than the 10th day after the date on which
7-16 the municipality takes action to enforce the ordinance. Conviction
7-17 of an offense under the municipal ordinance is a ground for the
7-18 denial, suspension, or revocation of a license issued under this
7-19 Act.
7-20 SECTION 12. Subsection (c), Section 23, The Real Estate
7-21 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
7-22 amended by adding Subdivision (4) to read as follows:
7-23 (4) In addition to the license requirements imposed
7-24 under Subdivisions (1), (2), and (3) of this subsection, a business
7-25 entity that inspects an environmental air conditioning system,
7-26 commercial refrigeration system, or process cooling or heating
7-27 system as part of a real estate inspection conducted under this Act
8-1 must employ a person who holds the appropriate air conditioning
8-2 and refrigeration contractor licenses and endorsements under the
8-3 Air Conditioning and Refrigeration Contractor License Law (Article
8-4 8861, Vernon's Texas Civil Statutes), or an appropriate municipal
8-5 license. An employee who does not hold a license may perform the
8-6 inspection under the direction of a licensee licensed under this
8-7 Act. For purposes of this Act, "inspection" of environmental air
8-8 conditioning, commercial refrigeration, and process cooling and
8-9 heating equipment means an inspection that includes the use of
8-10 electronic instruments, gauges, thermometers, mechanical
8-11 instruments, or other meters that require direct in-line connection
8-12 to the refrigeration system.
8-13 SECTION 13. (a) The change in law made to Section 8, Air
8-14 Conditioning and Refrigeration Contractor License Law (Article
8-15 8861, Vernon's Texas Civil Statutes), by this Act applies only to
8-16 an offense committed on or after the effective date of this Act.
8-17 For purposes of this section, an offense is committed before the
8-18 effective date of this Act if any element of the offense occurs
8-19 before that date.
8-20 (b) An offense committed before the effective date of this
8-21 Act is governed by the law in effect when the offense was
8-22 committed, and the former law is continued in effect for that
8-23 purpose.
8-24 SECTION 14. (a) Except as provided by Subsection (b) of
8-25 this section, the change in law made to Section 9, Air Conditioning
8-26 and Refrigeration Contractor License Law (Article 8861, Vernon's
8-27 Texas Civil Statutes), by this Act applies to a municipal license
9-1 that is issued or renewed on or after the effective date of this
9-2 Act. A municipality subject to that section shall adopt
9-3 examination requirements in compliance with that section not later
9-4 than January 1, 2000.
9-5 (b) To continue to engage in the practice of air
9-6 conditioning and refrigeration contracting after September 1, 1999,
9-7 a person who holds a municipal license on the effective date of
9-8 this Act must satisfy the examination requirements imposed under
9-9 Subsection (b), Section 9, Air Conditioning and Refrigeration
9-10 Contractor License Law (Article 8861, Vernon's Texas Civil
9-11 Statutes), as amended by this Act, not later than June 1, 2000.
9-12 SECTION 15. Subsection 10(h), Air Conditioning and
9-13 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
9-14 Civil Statutes), is amended to read as follows:
9-15 (h) A person commits an offense if the person purchases a
9-16 refrigerant or equipment containing a refrigerant in this state in
9-17 violation of Subsection (c), (e), or (f) of this section. An
9-18 offense under this subsection is a Class C [B] misdemeanor.
9-19 SECTION 16. Section 10, Air Conditioning and Refrigeration
9-20 Contractor License Law (Article 8861, Vernon's Texas Civil
9-21 Statutes), is amended by adding Subsection (j), to read as follows:
9-22 (j) This Section does not apply to persons exempt under
9-23 Section 6(a)(3), (5), or (7) of this Act.
9-24 SECTION 17. (a) This Act takes effect September 1, 1999.
9-25 (b) Not later than December 31, 1999, the commissioner of
9-26 licensing and regulation shall adopt rules as required by Section
9-27 3C, Air Conditioning and Refrigeration Contractor License Law
10-1 (Article 8861, Vernon's Texas Civil Statutes), as added by this
10-2 Act.
10-3 (c) Subsection (c), Section 23, The Real Estate License Act
10-4 (Article 6573a, Vernon's Texas Civil Statutes), as amended by this
10-5 Act, applies only to a real estate inspection that is conducted on
10-6 or after the effective date of this Act. A real estate inspection
10-7 conducted before that date is governed by the law in effect on the
10-8 date that the inspection occurs, and the former law is continued in
10-9 effect for that purpose.
10-10 SECTION 18. 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.