By Yarbrough H.B. No. 1822
76R1304 GJH-F
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. Section 2(7), Air Conditioning and Refrigeration
1-6 Contractor License Law (Article 8861, Vernon's Texas Civil
1-7 Statutes), is 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 SECTION 2. Section 3(b), Air Conditioning and Refrigeration
1-19 Contractor License Law (Article 8861, Vernon's Texas Civil
1-20 Statutes), is amended to read as follows:
1-21 (b) The commissioner may issue an emergency order, including
1-22 a cease and desist order, as necessary to enforce this Act if the
1-23 commissioner determines that an emergency exists requiring
1-24 immediate action to protect the public health and safety. The
2-1 order may be issued without notice and hearing or with any notice
2-2 and hearing that the commissioner considers practicable under the
2-3 circumstances. If an emergency order is issued under this
2-4 subsection without a hearing, the commissioner shall set the time
2-5 and place for a hearing to affirm, modify, or set aside the
2-6 emergency order.
2-7 SECTION 3. Section 3B, Air Conditioning and Refrigeration
2-8 Contractor License Law (Article 8861, Vernon's Texas Civil
2-9 Statutes), is amended to read as follows:
2-10 Sec. 3B. REQUIREMENTS TO PERFORM AIR CONDITIONING AND
2-11 REFRIGERATION CONTRACTING [LICENSE REQUIRED]. (a) A [Unless the
2-12 person is exempted under Section 6 of this Act, a] person may not
2-13 perform air conditioning and refrigeration contracting unless:
2-14 (1) the person is exempt under Section 6 of this Act;
2-15 or
2-16 (2) the person practices within the scope of a
2-17 municipal license as permitted by Section 9 of this Act [without a
2-18 license under this Act].
2-19 (b) A person, corporation, partnership, or other legal
2-20 entity may not offer to perform or perform air conditioning and
2-21 refrigeration contracting unless the person, corporation,
2-22 partnership, or other legal entity:
2-23 (1) employs full-time at each permanent office of the
2-24 person, corporation, partnership, or other legal entity at least
2-25 one licensee whose license qualifies the person for all of the air
2-26 conditioning and refrigeration contracting performed or offered to
2-27 be performed by that office;
3-1 (2) files with the advisory board the name of at least
3-2 one person who meets the requirements of Subdivision (1) of this
3-3 subsection; and
3-4 (3) uses only appropriately licensed individuals and
3-5 the assistants of appropriately licensed individuals to perform air
3-6 conditioning and refrigeration contracting.
3-7 (c) If a person whose name is on file with the advisory
3-8 board as required by Subsection (b)(2) of this section no longer
3-9 meets the requirements of Subsection (b)(1) of this section, the
3-10 person, corporation, partnership, or other legal entity that
3-11 qualifies under Subsection (b) of this section to offer to perform
3-12 and to perform air conditioning and refrigeration contracting shall
3-13 comply with Subsection (b)(2) of this section not later than the
3-14 30th day after the first day the person whose name is on file with
3-15 the advisory board no longer meets the requirements of Subsection
3-16 (b)(1) of this section.
3-17 SECTION 4. Sections 4(f) and (g), Air Conditioning and
3-18 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
3-19 Civil Statutes), are amended to read as follows:
3-20 (f) The application must be made on a form prescribed by the
3-21 commissioner and must specify the class of license and each
3-22 endorsement the applicant seeks. The application must be verified
3-23 and must be accompanied by:
3-24 (1) [evidence of the insurance coverage required under
3-25 this Act;]
3-26 [(2)] a statement of the applicant's practical
3-27 experience; and
4-1 (2) [(3)] the examination fee.
4-2 (g) The commissioner shall issue an air conditioning and
4-3 refrigeration contractor license to an applicant who possesses the
4-4 required qualifications, passes the appropriate examinations,
4-5 furnishes evidence of the insurance coverage required under this
4-6 Act, and pays the [examination fee and the] original license fee
4-7 required by this Act. An applicant who fails an examination is
4-8 eligible for reexamination.
4-9 SECTION 5. Section 5(a), Air Conditioning and Refrigeration
4-10 Contractor License Law (Article 8861, Vernon's Texas Civil
4-11 Statutes), is amended to read as follows:
4-12 (a) A violation of this Act or a rule adopted under this Act
4-13 is a ground for the denial, suspension, or revocation of a license
4-14 issued under this Act. The failure to provide proper installation,
4-15 service, or [and] mechanical integrity under this Act constitutes a
4-16 violation of this Act. An intentional or knowing misrepresentation
4-17 of necessary services, services to be provided, or services that
4-18 have been provided, or a fraudulent promise made to influence,
4-19 persuade, or induce an individual to contract for services
4-20 constitutes a violation of this Act and a ground for the suspension
4-21 or revocation of a license issued under this Act.
4-22 SECTION 6. 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) Except as provided by Section 10 of this Act, this
4-26 [This] Act does not apply to a person who:
4-27 (1) performs air conditioning and refrigeration
5-1 contracting in a building owned solely by the person [him] as the
5-2 person's [his] home;
5-3 (2) performs air conditioning or refrigeration
5-4 maintenance work if (i) the person is a maintenance person [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
5-26 contracting on:
5-27 (A) a portable or self-contained ductless air
6-1 conditioning or refrigeration product that has a cooling capacity
6-2 of three tons or less;
6-3 (B) a portable or self-contained heating product
6-4 that does not require the forced movement of air outside the
6-5 heating unit; or
6-6 (C) environmental air conditioning equipment
6-7 that is intended for temporary use and is not fixed in place; or
6-8 (7) performs air conditioning services only on a motor
6-9 vehicle air conditioner [conditioning unit] or who employs a person
6-10 who performs air conditioning services only on a motor vehicle air
6-11 conditioner [conditioning unit].
6-12 SECTION 7. Section 7, Air Conditioning and Refrigeration
6-13 Contractor License Law (Article 8861, Vernon's Texas Civil
6-14 Statutes), is amended to read as follows:
6-15 Sec. 7. REPORTING REQUIREMENT. (a) Each person licensed
6-16 under this Act shall notify the municipal authority who has control
6-17 of the enforcement of regulations relative to air conditioning and
6-18 refrigeration contracting in the municipality in which the person
6-19 is engaged in air conditioning and refrigeration contracting that
6-20 the person has obtained a state license.
6-21 (b) The notification must be in the form required by the
6-22 municipality.
6-23 (c) A municipal authority may impose a fee to process a
6-24 notification under this section in an amount reasonable and
6-25 necessary to cover the municipality's cost of administering this
6-26 section.
6-27 SECTION 8. The Air Conditioning and Refrigeration Contractor
7-1 License Law (Article 8861, Vernon's Texas Civil Statutes) is
7-2 amended by adding Section 7A to read as follows:
7-3 Sec. 7A. ENFORCEABILITY OF CERTAIN CONTRACTS. (a) A
7-4 person, corporation, partnership, or other legal entity may not
7-5 enforce a contract or collect a fee for air conditioning and
7-6 refrigeration contracting unless the person, corporation,
7-7 partnership, or other legal entity meets the requirements of
7-8 Section 3B of this Act at the time the contract is entered into and
7-9 at the time the contract is performed.
7-10 (b) The commissioner shall adopt rules relating to the
7-11 manner in which proof may be presented under this section.
7-12 SECTION 9. Section 8, Air Conditioning and Refrigeration
7-13 Contractor License Law (Article 8861, Vernon's Texas Civil
7-14 Statutes), is amended to read as follows:
7-15 Sec. 8. PENALTY. Except as provided in Section 9, a person
7-16 commits an offense if the person knowingly or intentionally engages
7-17 in air conditioning and refrigeration contracting without a license
7-18 issued under this Act. An offense under this section is a Class C
7-19 [B] misdemeanor.
7-20 SECTION 10. The Air Conditioning and Refrigeration
7-21 Contractor License Law (Article 8861, Vernon's Texas Civil
7-22 Statutes) is amended by adding Section 8A to read as follows:
7-23 Sec. 8A. ENFORCEMENT. (a) A municipal or county law
7-24 enforcement officer may issue a citation for a violation of Section
7-25 3B of this Act.
7-26 (b) A representative of the department or a municipal air
7-27 conditioning or refrigeration inspector within the jurisdiction of
8-1 the municipality may issue a citation to a person who violates
8-2 Section 10(e) or (f) of this Act.
8-3 SECTION 11. Section 9, Air Conditioning and Refrigeration
8-4 Contractor License Law (Article 8861, Vernon's Texas Civil
8-5 Statutes), is amended to read as follows:
8-6 Sec. 9. MUNICIPAL REGULATION. (a) A license issued by a
8-7 municipality of this state that meets the requirements of this
8-8 section is valid under the terms of the license within that
8-9 municipality. However, a license issued by the commissioner [under
8-10 this Act] is valid throughout the state, and the license holder and
8-11 people under the supervision of the license holder are not required
8-12 to hold a municipal license to practice air conditioning and
8-13 refrigeration contracting in any municipality within this state.
8-14 (b) An applicant for a municipal license must:
8-15 (1) pass an examination that covers the same subjects
8-16 that are covered by an examination required by the commissioner for
8-17 the type of work to be permitted by the municipal license; and
8-18 (2) meet the experience requirement that is at least
8-19 equivalent to the experience requirement in Section 4(e) of this
8-20 Act.
8-21 (c) A municipality may by ordinance adopt and enforce
8-22 standards for air conditioning and refrigeration contractors that
8-23 are consistent with the standards established under this Act. The
8-24 municipality shall report violations of the ordinance to the
8-25 commissioner not later than the 10th day after the date on which
8-26 the municipality takes action to enforce the ordinance. Conviction
8-27 of an offense under the municipal ordinance is a ground for the
9-1 denial, suspension, or revocation of a license issued under this
9-2 Act.
9-3 SECTION 12. Sections 10(g) and (h), Air Conditioning and
9-4 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
9-5 Civil Statutes), are amended to read as follows:
9-6 (g) A purchaser may purchase refrigerants if that person's
9-7 use is exempt under Section 6(a)(1), (3), (5), (6), or (7) of this
9-8 Act if the person is authorized to do so under other state or
9-9 federal law and is not required to provide to a seller evidence of
9-10 the exemption.
9-11 (h) A person commits an offense if the person purchases a
9-12 refrigerant or equipment containing a refrigerant in this state in
9-13 violation of Subsection (c), (e), or (f) of this section. An
9-14 offense under this subsection is a Class C [B] misdemeanor.
9-15 SECTION 13. Section 23(c), The Real Estate License Act
9-16 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
9-17 adding Subdivision (4) to read as follows:
9-18 (4) In addition to the license requirements imposed
9-19 under Subdivisions (1)-(3) of this subsection, a business entity
9-20 that inspects an environmental air conditioning system, commercial
9-21 refrigeration system, or process cooling or heating system as part
9-22 of a real estate inspection conducted under this Act must employ a
9-23 person who holds the appropriate air conditioning and refrigeration
9-24 contractor licenses and endorsements under the Air Conditioning and
9-25 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
9-26 Civil Statutes) or an appropriate municipal license. An employee
9-27 who does not hold a license or endorsement under the Air
10-1 Conditioning and Refrigeration Contractor License Law (Article
10-2 8861, Vernon's Texas Civil Statutes) or a municipal license may
10-3 perform the inspection under the direction of the license holder.
10-4 For purposes of this Act, "inspection" of environmental air
10-5 conditioning, commercial refrigeration, and process cooling and
10-6 heating equipment means an inspection that includes the use of
10-7 electronic instruments, gauges, thermometers, mechanical
10-8 instruments, or other meters that require direct in-line connection
10-9 to the refrigerant system.
10-10 SECTION 14. Section 3(m), Air Conditioning and Refrigeration
10-11 Contractor License Law (Article 8861, Vernon's Texas Civil
10-12 Statutes), is repealed.
10-13 SECTION 15. Section 7(c), Air Conditioning and Refrigeration
10-14 Contractor License Law (Article 8861, Vernon's Texas Civil
10-15 Statutes), as added by this Act, applies only to a fee imposed for
10-16 a notification processed on or after the effective date of this
10-17 Act.
10-18 SECTION 16. Section 7A, Air Conditioning and Refrigeration
10-19 Contractor License Law (Article 8861, Vernon's Texas Civil
10-20 Statutes), as added by this Act, applies only to a contract entered
10-21 into on or after the effective date of this Act. A contract
10-22 entered into before the effective date of this Act is governed by
10-23 the law in effect on the day the contract was entered into, and the
10-24 former law is continued in effect for that purpose.
10-25 SECTION 17. (a) Except as provided by Subsection (b) of
10-26 this section, the punishment for an offense under Section 8 or
10-27 10(h), Air Conditioning and Refrigeration Contractor License Law
11-1 (Article 8861, Vernon's Texas Civil Statutes), regardless of
11-2 whether the offense is committed before, on, or after the effective
11-3 date of the amendments to those sections made by this Act, is the
11-4 punishment provided by Section 8 or 10(h), Air Conditioning and
11-5 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
11-6 Civil Statutes), as amended by this Act.
11-7 (b) This section does not apply to the punishment of a
11-8 defendant finally convicted before the effective date of the
11-9 amendments to Sections 8 and 10(h), Air Conditioning and
11-10 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
11-11 Civil Statutes), made by this Act. The punishment for a final
11-12 conviction that exists immediately before the effective date of the
11-13 amendments to those sections made by this Act is unaffected by this
11-14 Act.
11-15 SECTION 18. (a) Except as provided by Subsection (b) of
11-16 this section, Section 9, Air Conditioning and Refrigeration
11-17 Contractor License Law (Article 8861, Vernon's Texas Civil
11-18 Statutes), as amended by this Act, applies only to a municipal
11-19 license that is issued or renewed on or after the effective date of
11-20 this Act. A municipality subject to that section shall adopt
11-21 examination requirements in compliance with that section not later
11-22 than January 1, 2000.
11-23 (b) To continue to engage in the practice of air
11-24 conditioning and refrigeration contracting after September 1, 1999,
11-25 a person who holds a municipal license on the effective date of
11-26 this Act must satisfy the examination requirements imposed under
11-27 Section 9(b), Air Conditioning and Refrigeration Contractor License
12-1 Law (Article 8861, Vernon's Texas Civil Statutes), as amended by
12-2 this Act, not later than June 1, 2000.
12-3 SECTION 19. (a) Except as provided by Subsection (b) of
12-4 this section, this Act takes effect September 1, 1999.
12-5 (b) Sections 6(a), 8, and 10(g) and (h), Air Conditioning
12-6 and Refrigeration Contractor License Law (Article 8861, Vernon's
12-7 Texas Civil Statutes), as amended by this Act, take effect
12-8 immediately.
12-9 (c) Not later than December 31, 1999, the commissioner of
12-10 licensing and regulation shall adopt rules as required by Section
12-11 7A, Air Conditioning and Refrigeration Contractor License Law
12-12 (Article 8861, Vernon's Texas Civil Statutes), as added by this
12-13 Act.
12-14 (d) Section 23(c), The Real Estate License Act (Article
12-15 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
12-16 applies only to a real estate inspection that is conducted on or
12-17 after the effective date of this Act. A real estate inspection
12-18 conducted before that date is governed by the law in effect on the
12-19 date that the inspection occurs, and the former law is continued in
12-20 effect for that purpose.
12-21 SECTION 20. The importance of this legislation and the
12-22 crowded condition of the calendars in both houses create an
12-23 emergency and an imperative public necessity that the
12-24 constitutional rule requiring bills to be read on three several
12-25 days in each house be suspended, and this rule is hereby suspended,
12-26 and that this Act take effect and be in force according to its
12-27 terms, and it is so enacted.