1-1 By: Yarbrough (Senate Sponsor - Carona) H.B. No. 1822
1-2 (In the Senate - Received from the House May 10, 1999;
1-3 May 10, 1999, read first time and referred to Committee on Economic
1-4 Development; May 14, 1999, reported favorably by the following
1-5 vote: Yeas 7, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of air conditioning and refrigeration
1-9 contractors; providing penalties.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 2(7) and (9), Air Conditioning and
1-12 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-13 Civil Statutes), are amended to read as follows:
1-14 (7) "Air conditioning and refrigeration maintenance
1-15 work" means repair work and all other work required for the
1-16 continued normal performance of an environmental air conditioning
1-17 system, commercial refrigeration system or equipment, or process
1-18 cooling or heating system. The term does not include the
1-19 installation of a total replacement of the system or the
1-20 installation or repair of boilers or pressure vessels that must be
1-21 installed [by licensed persons] pursuant to rules and regulations
1-22 adopted by the commissioner under Chapter 755, Health and Safety
1-23 Code.
1-24 (9) "Air conditioning and refrigeration contracting"
1-25 means to perform or offer to perform the design, installation,
1-26 construction, maintenance, service, repair, alteration, or
1-27 modification of a product or of equipment in environmental air
1-28 conditioning, commercial refrigeration, or process cooling or
1-29 heating systems.
1-30 SECTION 2. Section 2, Air Conditioning and Refrigeration
1-31 Contractor License Law (Article 8861, Vernon's Texas Civil
1-32 Statutes), is amended by adding Subdivision (14) to read as
1-33 follows:
1-34 (14) "Air conditioning and refrigeration contracting
1-35 company" means any person, sole proprietorship, corporation,
1-36 partnership, association, or other business entity that performs or
1-37 offers to perform air conditioning and refrigeration contracting to
1-38 the general public.
1-39 SECTION 3. Sections 3(b) and (m), Air Conditioning and
1-40 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
1-41 Civil Statutes), are amended to read as follows:
1-42 (b) The executive director [commissioner] may issue an
1-43 emergency order as necessary to enforce this Act if the executive
1-44 director [commissioner] determines that an emergency exists
1-45 requiring immediate action to protect the public health and safety.
1-46 The order may be issued without notice and hearing or with any
1-47 notice and hearing that the executive director [commissioner]
1-48 considers practicable under the circumstances. If an emergency
1-49 order is issued under this subsection without a hearing, the
1-50 executive director [commissioner] shall set the time and place for
1-51 a hearing to affirm, modify, or set aside the emergency order. The
1-52 executive director may issue cease and desist orders.
1-53 (m) A representative of the department [commission] or a
1-54 municipal air conditioning or refrigeration inspector within the
1-55 jurisdiction of the municipality may issue a citation to a person
1-56 who violates Section 10(e) or (f) of this Act.
1-57 SECTION 4. Section 3B, Air Conditioning and Refrigeration
1-58 Contractor License Law (Article 8861, Vernon's Texas Civil
1-59 Statutes), is amended to read as follows:
1-60 Sec. 3B. LICENSE REQUIRED; CITATION. (a) Unless the person
1-61 is exempted under Section 6 of this Act, a person may not perform
1-62 air conditioning and refrigeration contracting without a license
1-63 under this Act.
1-64 (b) An air conditioning and refrigeration contracting
2-1 company must employ full time in each permanent office a license
2-2 holder whose license is assigned to that company.
2-3 (c) A municipal or county official may issue a citation to
2-4 an air conditioning and refrigeration contracting company that
2-5 performs air conditioning and refrigeration contracting without a
2-6 license issued under this Act, if the person is not exempt from the
2-7 provisions of this Act.
2-8 SECTION 5. The Air Conditioning and Refrigeration Contractor
2-9 License Law (Article 8861, Vernon's Texas Civil Statutes) is
2-10 amended by adding Section 3C to read as follows:
2-11 Sec. 3C. ENFORCEMENT OF CONTRACTS. An air conditioning and
2-12 refrigeration contracting company that performs air conditioning
2-13 and refrigeration contracting without employing a licensee with the
2-14 appropriate license under this Act may not collect a fee or
2-15 otherwise enforce a contract for the services performed. To
2-16 enforce a contract for the performance of air conditioning and
2-17 refrigeration contracting, the air conditioning and refrigeration
2-18 contracting company that performs the services must have been
2-19 licensed at the time the contract is signed and at the time the
2-20 work is performed.
2-21 SECTION 6. Sections 4(f) and (g), Air Conditioning and
2-22 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
2-23 Civil Statutes), are amended to read as follows:
2-24 (f) The application must be made on a form prescribed by the
2-25 commissioner and must specify the class of license and each
2-26 endorsement the applicant seeks. The application must be verified
2-27 and must be accompanied by:
2-28 (1) [evidence of the insurance coverage required under
2-29 this Act;]
2-30 [(2)] a statement of the applicant's practical
2-31 experience; and
2-32 (2) [(3)] the examination fee.
2-33 (g) The executive director [commissioner] shall issue an air
2-34 conditioning and refrigeration contractor license to an applicant
2-35 who possesses the required qualifications, passes the appropriate
2-36 examinations, furnishes evidence of the insurance coverage required
2-37 under this Act, and pays the [examination fee and the] original
2-38 license fee required by this Act. An applicant who fails an
2-39 examination is eligible for reexamination.
2-40 SECTION 7. Section 5(a), Air Conditioning and Refrigeration
2-41 Contractor License Law (Article 8861, Vernon's Texas Civil
2-42 Statutes), is amended to read as follows:
2-43 (a) A violation of this Act or a rule adopted under this Act
2-44 is a ground for the denial, suspension, or revocation of a license
2-45 issued under this Act. The failure to provide proper installation,
2-46 service, or [and] mechanical integrity under this Act constitutes a
2-47 violation of this Act. An intentional or knowing misrepresentation
2-48 of necessary services, services to be provided, or services that
2-49 have been provided, or a fraudulent promise made to influence,
2-50 persuade, or induce an individual to contract for services
2-51 constitutes a violation of this Act and a ground for the suspension
2-52 or revocation of a license issued under this Act.
2-53 SECTION 8. Section 6(a), Air Conditioning and Refrigeration
2-54 Contractor License Law (Article 8861, Vernon's Texas Civil
2-55 Statutes), is amended to read as follows:
2-56 (a) This Act does not apply to a person who:
2-57 (1) performs air conditioning and refrigeration
2-58 contracting in a building owned solely by him as his home;
2-59 (2) performs air conditioning or refrigeration
2-60 maintenance work if (i) the person is a maintenance man or
2-61 maintenance engineer who is a regular bona fide employee of the
2-62 property owner, the property lessee, or the management company
2-63 managing the property where the maintenance work is being
2-64 performed, (ii) the work is performed in connection with the
2-65 business in which the person is employed, and (iii) the person and
2-66 the person's employer referred to in (i) above do not engage in the
2-67 occupation of air conditioning and refrigeration contracting for
2-68 the general public;
2-69 (3) performs air conditioning and refrigeration
3-1 contracting and is regularly employed by a regulated electric or
3-2 gas utility;
3-3 (4) is licensed as a professional engineer under The
3-4 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
3-5 Statutes), performs work in connection with the business in which
3-6 the person is employed, and does not engage in the practice of air
3-7 conditioning and refrigeration contracting for the general public;
3-8 (5) performs process cooling or heating work for an
3-9 industrial operation such as a chemical plant, petrochemical plant,
3-10 refinery, natural gas plant, or natural gas treating plant when
3-11 employed by that operation;
3-12 (6) performs air conditioning and refrigeration
3-13 contracting on:
3-14 (A) a portable or self-contained ductless air
3-15 conditioning [or refrigeration] product that has a cooling capacity
3-16 of three tons or less;
3-17 (B) a portable or self-contained heating product
3-18 that does not require the forced movement of air outside the
3-19 heating unit; [or]
3-20 (C) environmental air conditioning equipment
3-21 that is intended for temporary use and is not fixed in place; or
3-22 (D) residential refrigerators, freezers, and ice
3-23 machines; or
3-24 (7) performs air conditioning services only on a motor
3-25 vehicle air conditioning unit or who employs a person who performs
3-26 air conditioning services only on a motor vehicle air conditioning
3-27 unit.
3-28 SECTION 9. Section 7, Air Conditioning and Refrigeration
3-29 Contractor License Law (Article 8861, Vernon's Texas Civil
3-30 Statutes), is amended to read as follows:
3-31 Sec. 7. REPORTING REQUIREMENT. (a) Each person licensed
3-32 under this Act shall notify the municipal authority who has control
3-33 of the enforcement of regulations relative to air conditioning and
3-34 refrigeration contracting in the municipality in which the person
3-35 is engaged in air conditioning and refrigeration contracting that
3-36 the person has obtained a state license.
3-37 (b) The notification must be in the form required by the
3-38 municipality.
3-39 (c) The amount of a fee imposed by a municipality on a
3-40 contractor to provide notice under this section may be set by the
3-41 municipality only in an amount reasonable and necessary to
3-42 implement this section.
3-43 SECTION 10. Section 8, Air Conditioning and Refrigeration
3-44 Contractor License Law (Article 8861, Vernon's Texas Civil
3-45 Statutes), is amended to read as follows:
3-46 Sec. 8. PENALTY. Except as provided in Section 9, a person
3-47 commits an offense if the person knowingly or intentionally engages
3-48 in air conditioning and refrigeration contracting without a license
3-49 issued under this Act. An offense under this section is a Class C
3-50 [B] misdemeanor.
3-51 SECTION 11. Section 9, Air Conditioning and Refrigeration
3-52 Contractor License Law (Article 8861, Vernon's Texas Civil
3-53 Statutes), is amended to read as follows:
3-54 Sec. 9. MUNICIPAL REGULATION. (a) A license issued by a
3-55 municipality of this state that complies with the requirements of
3-56 this section is valid under the terms of the license within that
3-57 municipality. However, a license issued [under this Act] by the
3-58 department is valid throughout the state, and the holder and people
3-59 under supervision are not required to hold a municipal license to
3-60 practice air conditioning and refrigeration contracting in any
3-61 municipality within this state.
3-62 (b) An applicant for a municipal license must:
3-63 (1) pass an examination that covers the same subjects
3-64 as the examination required by the commissioner for an air
3-65 conditioning and refrigeration contractor license of the class of
3-66 work that the municipal applicant proposes to perform; and
3-67 (2) meet experience requirements that are at least as
3-68 strict as those required under Section 4(e) of this Act for an air
3-69 conditioning and refrigeration contractor license.
4-1 (c) A municipality may by ordinance adopt and enforce
4-2 standards for air conditioning and refrigeration contractors that
4-3 are consistent with the standards established under this Act. The
4-4 municipality shall report violations of the ordinance to the
4-5 commissioner not later than the 10th day after the date on which
4-6 the municipality takes action to enforce the ordinance. Conviction
4-7 of an offense under the municipal ordinance is a ground for the
4-8 denial, suspension, or revocation of a license issued under this
4-9 Act.
4-10 SECTION 12. Section 10(h), Air Conditioning and
4-11 Refrigeration Contractor License Law (Article 8861, Vernon's Texas
4-12 Civil Statutes), is amended to read as follows:
4-13 (h) A person commits an offense if the person purchases a
4-14 refrigerant or equipment containing a refrigerant in this state in
4-15 violation of Subsection (c), (e), or (f) of this section. An
4-16 offense under this subsection is a Class C [B] misdemeanor.
4-17 SECTION 13. Section 10, Air Conditioning and Refrigeration
4-18 Contractor License Law (Article 8861, Vernon's Texas Civil
4-19 Statutes), is amended by adding Subsection (j), to read as follows:
4-20 (j) This section does not apply to persons exempt under
4-21 Section 6(a)(3), (5), or (7) of this Act.
4-22 SECTION 14. Section 23(c), The Real Estate License Act
4-23 (Article 6573a, Vernon's Texas Civil Statutes), is amended by
4-24 adding Subdivision (4) to read as follows:
4-25 (4) In addition to the license requirements imposed
4-26 under Subdivisions (1), (2), and (3) of this subsection, a business
4-27 entity that inspects an environmental air conditioning system,
4-28 commercial refrigeration system, or process cooling or heating
4-29 system as part of a real estate inspection conducted under this Act
4-30 must employ a person who holds the appropriate air conditioning
4-31 and refrigeration contractor licenses and endorsements under the
4-32 Air Conditioning and Refrigeration Contractor License Law (Article
4-33 8861, Vernon's Texas Civil Statutes), or an appropriate municipal
4-34 license. An employee who does not hold a license may perform the
4-35 inspection under the direction of a licensee licensed under this
4-36 Act. For purposes of this Act, "inspection" of environmental air
4-37 conditioning, commercial refrigeration, and process cooling and
4-38 heating equipment means an inspection that includes the use of
4-39 electronic instruments, gauges, thermometers, mechanical
4-40 instruments, or other meters that require direct in-line connection
4-41 to the refrigeration system.
4-42 SECTION 15. (a) The change in law made to Section 8, Air
4-43 Conditioning and Refrigeration Contractor License Law (Article
4-44 8861, Vernon's Texas Civil Statutes), by this Act applies only to
4-45 an offense committed on or after the effective date of this Act.
4-46 For purposes of this section, an offense is committed before the
4-47 effective date of this Act if any element of the offense occurs
4-48 before that date.
4-49 (b) An offense committed before the effective date of this
4-50 Act is governed by the law in effect when the offense was
4-51 committed, and the former law is continued in effect for that
4-52 purpose.
4-53 SECTION 16. (a) Except as provided by Subsection (b) of
4-54 this section, the change in law made to Section 9, Air Conditioning
4-55 and Refrigeration Contractor License Law (Article 8861, Vernon's
4-56 Texas Civil Statutes), by this Act applies to a municipal license
4-57 that is issued or renewed on or after the effective date of this
4-58 Act. A municipality subject to that section shall adopt
4-59 examination requirements in compliance with that section not later
4-60 than January 1, 2000.
4-61 (b) To continue to engage in the practice of air
4-62 conditioning and refrigeration contracting after September 1, 1999,
4-63 a person who holds a municipal license on the effective date of
4-64 this Act must satisfy the examination requirements imposed under
4-65 Section 9(b), Air Conditioning and Refrigeration Contractor License
4-66 Law (Article 8861, Vernon's Texas Civil Statutes), as amended by
4-67 this Act, not later than June 1, 2000.
4-68 SECTION 17. (a) This Act takes effect September 1, 1999.
4-69 (b) Not later than December 31, 1999, the commissioner of
5-1 licensing and regulation shall adopt rules as required by Section
5-2 3C, Air Conditioning and Refrigeration Contractor License Law
5-3 (Article 8861, Vernon's Texas Civil Statutes), as added by this
5-4 Act.
5-5 (c) Section 23(c), The Real Estate License Act (Article
5-6 6573a, Vernon's Texas Civil Statutes), as amended by this Act,
5-7 applies only to a real estate inspection that is conducted on or
5-8 after the effective date of this Act. A real estate inspection
5-9 conducted before that date is governed by the law in effect on the
5-10 date that the inspection occurs, and the former law is continued in
5-11 effect for that purpose.
5-12 SECTION 18. The importance of this legislation and the
5-13 crowded condition of the calendars in both houses create an
5-14 emergency and an imperative public necessity that the
5-15 constitutional rule requiring bills to be read on three several
5-16 days in each house be suspended, and this rule is hereby suspended.
5-17 * * * * *