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  By: Carona S.B. No. 1244
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the licensing and regulation of air conditioning and
  refrigeration contractors and contracting companies; providing
  penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1302, Occupations Code,
  is amended to read as follows:
  CHAPTER 1302.  AIR CONDITIONING AND REFRIGERATION PROFESSIONALS
  [CONTRACTORS]
         SECTION 2.  Section 1302.001, Occupations Code, is amended
  to read as follows:
         Sec. 1302.001.  SHORT TITLE. This chapter may be cited as
  the Air Conditioning and Refrigeration [Contractor] License Law.
         SECTION 3.  Section 1302.002, Occupations Code, is amended
  by amending Subdivisions (1), (4), and (5-a) and adding Subdivision
  (5-c) to read as follows:
               (1)  "Advisory board" means the air conditioning and
  refrigeration [contractors] advisory board.
               (4)  "Air conditioning and refrigeration master
  [contractor]" means a person who engages in air conditioning and
  refrigeration contracting.
               (5-a)  "Air conditioning and refrigeration technician"
  means a person who assists and works under the supervision of a
  licensed air conditioning and refrigeration master [contractor] in
  performing air conditioning and refrigeration maintenance work.
               (5-c) "Air conditioning and refrigeration trainee"
  means a person who is not licensed as an air conditioning and
  refrigeration technician and who assists and works under the
  supervision of a licensed air conditioning and refrigeration master
  in performing air conditioning and refrigeration maintenance work.
         SECTION 4.  Subsection (a), Section 1302.101, Occupations
  Code, is amended to read as follows:
         (a)  The commission shall adopt rules for the practice of air
  conditioning and refrigeration contracting and maintenance work
  that are at least as strict as the standards provided by:
               (1)  the Uniform Mechanical Code; and
               (2)  the International Mechanical Code.
         SECTION 5.  Subchapter C, Chapter 1302, Occupations Code, is
  amended by adding Section 1302.1011 to read as follows:
         Sec. 1302.1011.  RULES REGARDING AIR CONDITIONING AND
  REFRIGERATION CONTRACTING COMPANIES. The commission shall adopt
  rules:
               (1)  providing for the licensing of persons and
  entities under this chapter, including requirements for the
  issuance and renewal of a license;
               (2)  establishing fees necessary for the
  administration of this chapter, including fees for issuance and
  renewal of licenses; and
               (3)  implementing the requirements of this chapter as
  applicable to persons, entities, and activities regulated under
  this chapter.
         SECTION 6.  Section 1302.102, Occupations Code, is amended
  to read as follows:
         Sec. 1302.102.  INSURANCE REQUIREMENTS. [(a)]  The
  commission by rule [executive director] shall set insurance
  requirements for an air conditioning and refrigeration contracting
  company licensed [a license holder] under this chapter.
         [(b)     The executive director may waive the insurance
  requirements for a license holder who does not engage in air
  conditioning and refrigeration contracting for the public.]
         SECTION 7.  Section 1302.103, Occupations Code, is amended
  to read as follows:
         Sec. 1302.103.  [RULES REGARDING] USE AND DISPLAY OF
  LICENSE. The commission, with the advice of the advisory board,
  shall adopt rules relating to the use, display, and advertisement
  of a license issued under this chapter.
         SECTION 8.  Section 1302.105, Occupations Code, is amended
  to read as follows:
         Sec. 1302.105.  PERSONNEL[; EXAMINERS]. [(a)]  The
  department may employ personnel necessary to administer this
  chapter.
         [(b)     The department shall employ at least two full-time air
  conditioning and refrigeration contractors to serve as examiners.]
         SECTION 9.  Section 1302.201, Occupations Code, is amended
  to read as follows:
         Sec. 1302.201.  ADVISORY BOARD MEMBERSHIP. The air
  conditioning and refrigeration [contractors] advisory board
  consists of seven members appointed by the presiding officer of the
  commission, with the commission's approval, and two ex officio
  nonvoting members.  One member of the advisory board must be a
  public member.
         SECTION 10.  Section 1302.202, Occupations Code, is amended
  to read as follows:
         Sec. 1302.202.  APPOINTED MEMBERS. (a)  Except for the
  public member, each [Each] appointed advisory board member must be
  experienced in the design, installation, construction,
  maintenance, service, repair, or modification of equipment used for
  environmental air conditioning, commercial refrigeration, or
  process cooling or heating. Other than the public member, of [Of]
  the appointed members:
               (1)  one must be an official of a municipality with a
  population of more than 250,000;
               (2)  one must be an official of a municipality with a
  population of not more than 250,000; and
               (3)  four must be full-time licensed air conditioning
  and refrigeration masters [contractors], as follows:
                     (A)  one member who holds a Class A license and
  practices in a municipality with a population of more than 250,000;
                     (B)  one member who holds a Class B license and
  practices in a municipality with a population of more than 250,000;
                     (C)  one member who holds a Class A license and
  practices in a municipality with a population of more than 25,000
  but not more than 250,000; and
                     (D)  one member who holds a Class B license and
  practices in a municipality with a population of not more than
  25,000.
         (b)  At least one [appointed] advisory board member
  appointed under Subsection (a)(3) must be an air conditioning and
  refrigeration master [contractor] who employs organized labor [and
  at least two appointed members must be air conditioning and
  refrigeration contractors who are licensed engineers].
         SECTION 11.  The heading to Subchapter F, Chapter 1302,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER F. AIR CONDITIONING AND REFRIGERATION MASTER [LICENSE
  REQUIREMENTS]
         SECTION 12.  Section 1302.251, Occupations Code, is amended
  to read as follows:
         Sec. 1302.251.  LICENSE REQUIRED. (a)  A person may not
  engage in air conditioning and refrigeration contracting unless the
  person holds an air conditioning and refrigeration master [a]
  license under this subchapter or Subchapter G.
         (b)  A master license issued under this subchapter is valid
  throughout the state. A person who holds a license issued under
  this subchapter is not required to hold a municipal license under
  Subchapter G to engage in air conditioning and refrigeration
  contracting in any municipality in this state.
         SECTION 13.  Section 1302.252, Occupations Code, is amended
  to read as follows:
         Sec. 1302.252.  REQUIREMENT FOR AIR CONDITIONING AND
  REFRIGERATION MASTER LICENSE [CONTRACTING COMPANY]. (a)  An air
  conditioning and refrigeration master may engage in air
  conditioning and refrigeration contracting only for an air
  conditioning and refrigeration contracting company licensed under
  Subchapter G or M [contracting company must employ full-time in
  each permanent office a license holder who holds an appropriate
  license assigned to that company].
         (b)  An air conditioning and refrigeration master may assign
  the master's license to only one air conditioning and refrigeration
  contracting company and to only one permanent office of that
  company [A company that does not employ a license holder as required
  by Subsection (a) at the time a contract for air conditioning and
  refrigeration contracting services is signed and at the time the
  services are performed may not collect a fee or otherwise enforce
  the contract].
         SECTION 14.  Subsection (a), Section 1302.253, Occupations
  Code, is amended to read as follows:
         (a)  The executive director shall issue a Class A or Class B
  air conditioning and refrigeration master [contractor] license.
         SECTION 15.  Subsection (a), Section 1302.254, Occupations
  Code, is amended to read as follows:
         (a)  An air conditioning and refrigeration master
  [contractor] license must be endorsed with one or both of the
  following endorsements:
               (1)  an environmental air conditioning endorsement; or
               (2)  a commercial refrigeration and process cooling or
  heating endorsement.
         SECTION 16.  Section 1302.255, Occupations Code, is amended
  to read as follows:
         Sec. 1302.255.  ELIGIBILITY REQUIREMENTS. (a)  An
  applicant for a license under this subchapter [chapter] must:
               (1)  be at least 18 years old; and
               (2)  have held a technician license for at least 36
  months [of practical experience with the tools of the trade] in the
  preceding 48 months under the supervision of a licensed air
  conditioning and refrigeration master or contractor [five years].
         (a-1)  An applicant who has equivalent experience in another
  state or who held an equivalent license in another state may receive
  credit for the experience as determined by the executive director.
         (b)  Notwithstanding the requirements of [For purposes of
  determining an applicant's practical experience under] Subsection
  (a)(2), an applicant may satisfy a portion of the practical
  experience requirement as provided by Subsection (c).
         (c)  An applicant who obtains a degree or diploma or
  completes a certification program from an institution of higher
  education that holds a certificate of authority issued by the Texas
  Higher Education Coordinating Board, or an equivalent governing
  body in another state as approved by the executive director, may
  satisfy a portion of the practical experience requirement as
  follows:
               (1)  completing a four-year degree or diploma in air
  conditioning engineering or technology, refrigeration engineering
  or technology, or mechanical engineering is equivalent to 24 months
  [two years] of practical experience [if:
               [(1)     the degree or diploma is from an institution of
  higher education]; [and]
               (2)  completing a two-year associate's degree, a
  two-year diploma, or a two-year certification program primarily
  focused on air conditioning and refrigeration-related work is
  equivalent to 12 months of practical experience;
               (3)  completing a one-year certification program, or a
  program of at least two semesters, in air conditioning and
  refrigeration-related work is equivalent to six months of practical
  experience; and
               (4)  completing a program resulting in another
  applicable degree, diploma, or certification shall be equivalent to
  the amount of practical experience determined by the department
  under commission rule [the institution's program is approved by the
  Texas Board of Professional Engineers for the purpose of licensing
  engineers].
         (d)  Every 2,000 hours of on-the-job training in an air
  conditioning and refrigeration apprenticeship program registered
  with the United States Department of Labor Office of Apprenticeship
  is equivalent to 12 months of practical experience under Subsection
  (a)(2).
         (e)  Notwithstanding the requirements of Subsection (a)(2),
  each of the following qualifies as practical experience for
  purposes of satisfying the 36-month requirement:
               (1)  verified military service in which the person was
  trained in or performed air conditioning and refrigeration-related
  work as part of the person's military occupational specialty; and
               (2)  experience performing air conditioning and
  refrigeration-related work as described by Section 1302.055,
  1302.056, or 1302.057 or while employed by a governmental entity.
         SECTION 17.  Subsections (a) and (c), Section 1302.256,
  Occupations Code, are amended to read as follows:
         (a)  An applicant for an air conditioning and refrigeration
  master [a] license must submit a verified application on a form
  prescribed by the executive director.
         (c)  The application must be accompanied by:
               (1)  a statement containing evidence satisfactory to
  the executive director of the applicant's practical experience
  required by Section 1302.255(a)(2); and
               (2)  the required fees [examination fee].
         SECTION 18.  Subsection (b), Section 1302.257, Occupations
  Code, is amended to read as follows:
         (b)  The executive director shall prescribe the method and
  content of an examination administered under this subchapter
  [chapter] and shall set compliance requirements for the
  examination. To obtain an endorsement, an applicant must pass the
  examination for the endorsement.
         SECTION 19.  Section 1302.260, Occupations Code, is amended
  to read as follows:
         Sec. 1302.260.  ISSUANCE AND TERM OF LICENSE. (a)  The
  department [On payment of the license fee, the executive director]
  shall issue an air conditioning and refrigeration master 
  [contractor] license to an applicant who:
               (1)  submits a verified application;
               (2)  passes the applicable examination;
               (3)  meets the requirements of this chapter and rules
  adopted under this chapter [subchapter]; and
               (4)  pays the required fees
               [(2)     provides evidence of insurance coverage required
  by the executive director in accordance with this chapter; and
               [(3)  passes the applicable examination].
         (b)  A license issued under this chapter expires on the first
  anniversary of the date of issuance [at the end of the license
  period set by the commission].
         SECTION 20.  Section 1302.262, Occupations Code, is amended
  to read as follows:
         Sec. 1302.262.  NOTICE TO MUNICIPALITIES. (a)  A person or
  entity that [who] obtains a license under this subchapter or
  Subchapter M shall provide a notice to the municipal authority that
  enforces air conditioning and refrigeration contracting
  regulations in the municipality in which the person or entity
  engages in air conditioning and refrigeration contracting.
         (b)  The notice must inform the municipality that the person
  or entity has obtained a license under this subchapter and must be
  in the form required by the municipality.
         (c)  A municipality may charge a fee to a person or entity
  that [who] provides the notice required by this section. The
  municipality shall set the fee in an amount reasonable and
  necessary to administer this section.
         SECTION 21.  Section 1302.263, Occupations Code, is amended
  to read as follows:
         Sec. 1302.263.  LIMITATION ON LICENSE HOLDER [OR REGISTERED
  TECHNICIAN]. A person licensed under this subchapter [chapter] may
  not:
               (1)  perform or offer or attempt to perform an act,
  service, or function that is:
                     (A)  defined as the practice of engineering under
  Chapter 1001, unless the person holds a license under that chapter;
                     (B)  regulated under Chapter 113, Natural
  Resources Code, unless the person holds a license or is exempt by
  rule under that chapter; or
                     (C)  defined as plumbing under Chapter 1301,
  unless the person holds a license under that chapter; [or]
               (2)  use the services of a person who is not [a
  registered technician or] a licensed air conditioning and
  refrigeration master, a licensed air conditioning and
  refrigeration technician, or a licensed air conditioning and
  refrigeration trainee [contractor] to assist in the performance of
  air conditioning and refrigeration maintenance work; or
               (3)  work with a person or entity that is not a licensed
  air conditioning and refrigeration contracting company in the
  performance of air conditioning and refrigeration contracting.
         SECTION 22.  Section 1302.301, Occupations Code, is amended
  to read as follows:
         Sec. 1302.301.  MUNICIPAL LICENSE. An air conditioning and
  refrigeration master or similarly titled contractor license or air
  conditioning and refrigeration contracting company license issued
  by a municipality of this state and that complies with the
  requirements of this subchapter is valid under the terms of the
  license within the municipality.
         SECTION 23.  Section 1302.302, Occupations Code, is amended
  to read as follows:
         Sec. 1302.302.  MUNICIPAL MASTER LICENSE: ELIGIBILITY
  REQUIREMENTS. An applicant for a municipal master or similarly
  titled contractor license must:
               (1)  pass an examination that covers the same subjects
  as the examination required under Subchapter F for a license of the
  class that entitles the holder of the license to perform the work
  the applicant proposes to perform; and
               (2)  meet experience requirements that are at least as
  strict as the requirements under Section 1302.255(a)(2).
         SECTION 24.  Subsection (a), Section 1302.303, Occupations
  Code, is amended to read as follows:
         (a)  A municipality may by ordinance adopt and enforce
  standards for air conditioning and refrigeration masters or
  similarly titled contractors and for air conditioning and
  refrigeration contracting companies that are consistent with the
  standards established under this chapter.
         SECTION 25.  Subsection (a), Section 1302.452, Occupations
  Code, is amended to read as follows:
         (a)  A municipal or county official may issue a citation to
  an air conditioning and refrigeration contracting company that
  engages in air conditioning and refrigeration contracting without
  complying with Section 1302.602 [1302.252].
         SECTION 26.  Subsection (a), Section 1302.453, Occupations
  Code, is amended to read as follows:
         (a)  A person commits an offense if the person:
               (1)  knowingly engages in air conditioning and
  refrigeration contracting without holding a license issued under
  this chapter; [or]
               (2)  knowingly engages in air conditioning and
  refrigeration maintenance work without holding a license issued
  under this chapter; or
               (3)  purchases a refrigerant or equipment containing a
  refrigerant in this state in violation of Section 1302.353,
  1302.355, or 1302.356.
         SECTION 27.  Section 1302.501, Occupations Code, is amended
  to read as follows:
         Sec. 1302.501.  LICENSE [REGISTRATION] REQUIRED. (a)  A
  person may not act or offer to act as an air conditioning and
  refrigeration technician unless the person is licensed
  [registered] under this subchapter.
         (b)  An air conditioning and refrigeration technician
  license [A registration] is valid throughout the state.
         SECTION 28.  Section 1302.503, Occupations Code, is amended
  to read as follows:
         Sec. 1302.503.  SUPERVISION REQUIREMENTS FOR TECHNICIANS
  [REGISTRANTS]. An air conditioning and refrigeration technician
  must be supervised by an air conditioning and refrigeration master
  [contractor] licensed under this chapter.
         SECTION 29.  Subchapter K, Chapter 1302, Occupations Code,
  is amended by adding Section 1302.5035 to read as follows:
         Sec. 1302.5035.  ELIGIBILITY REQUIREMENTS. (a)  An
  applicant for a license under this subchapter must:
               (1)  be at least 18 years old; and
               (2)  have at least 12 months of practical experience in
  air conditioning and refrigeration maintenance in the preceding 24
  months under the supervision of a licensed air conditioning and
  refrigeration master or contractor.
         (b)  Notwithstanding the requirements of Subsection (a)(2),
  an applicant may satisfy a portion of the practical experience
  requirement as provided by Subsection (c).
         (c)  An applicant who obtains a degree or diploma or
  completes a certification program from an institution of higher
  education that holds a certificate of authority issued by the Texas
  Higher Education Coordinating Board, or an equivalent governing
  body in another state as approved by the executive director, may
  satisfy a portion of the practical experience requirement as
  follows:
               (1)  completing a four-year degree or diploma in air
  conditioning engineering or technology, refrigeration engineering
  or technology, or mechanical engineering is equivalent to 24 months
  of practical experience;
               (2)  completing a two-year associate's degree, a
  two-year diploma, or a two-year certification program primarily
  focused on air conditioning and refrigeration-related work is
  equivalent to 12 months of practical experience; and
               (3)  completing a one-year certification program, or a
  program of at least two semesters, in air conditioning and
  refrigeration-related work is equivalent to six months of practical
  experience.
         (d)  Every 2,000 hours of on-the-job training in an air
  conditioning and refrigeration apprenticeship program registered
  with the United States Department of Labor Office of Apprenticeship
  is equivalent to 12 months of practical experience under Subsection
  (a)(2).
         (e)  Notwithstanding the requirements of Subsection (a)(2),
  each of the following qualifies as practical experience for
  purposes of satisfying the 12-month requirement:
               (1)  verified military service in which the person was
  trained in or performed air conditioning and refrigeration-related
  work as part of the person's military occupational specialty; and
               (2)  experience performing air conditioning and
  refrigeration-related work as described by Section 1302.055,
  1302.056, or 1302.057 or while employed by a governmental entity.
         SECTION 30.  Section 1302.504, Occupations Code, is amended
  to read as follows:
         Sec. 1302.504.  APPLICATION; FEE. (a)  An applicant for an
  air conditioning and refrigeration technician license
  [registration] must submit a verified [an] application on a form
  prescribed by the executive director [commission].
         (b)  The completed application must be accompanied by:
               (1)  a statement containing evidence satisfactory to
  the department of the applicant's practical experience; and
               (2)  the required fees [application fee].
         SECTION 31.  Subchapter K, Chapter 1302, Occupations Code,
  is amended by adding Section 1302.5045 to read as follows:
         Sec. 1302.5045.  EXAMINATIONS. The executive director shall
  prescribe an examination for an air conditioning and refrigeration
  technician license, including the method, content, and compliance
  requirements.
         SECTION 32.  Section 1302.505, Occupations Code, is amended
  to read as follows:
         Sec. 1302.505.  ISSUANCE AND TERM OF REGISTRATION. (a)  The
  department shall issue an air conditioning and refrigeration
  technician license to an applicant who:
               (1)  submits a verified application;
               (2)  passes the applicable examination;
               (3)  meets the requirements of this chapter and rules
  adopted under this chapter; and
               (4)  pays the required fees [On receipt of a completed
  application, the department shall register an applicant who meets
  the requirements of this subchapter].
         (b)  A license issued under this subchapter [registration]
  is valid for one year from the date of issuance.
         SECTION 33.  Subchapter K, Chapter 1302, Occupations Code,
  is amended by adding Section 1302.509 to read as follows:
         Sec. 1302.509.  LIMITATIONS ON LICENSE HOLDER. A person
  licensed under this subchapter may not:
               (1)  perform, offer to perform, or attempt to perform
  an act that is:
                     (A)  defined as the practice of engineering under
  Chapter 1001, unless the person holds a license under that chapter;
                     (B)  regulated under Chapter 113, Natural
  Resources Code, unless the person holds a license under that
  chapter or is exempt by a rule adopted under that chapter; or
                     (C)  defined as plumbing under Chapter 1301,
  unless the person holds a license under that chapter;
               (2)  assist a person who is not a licensed air
  conditioning and refrigeration master in the performance of air
  conditioning and refrigeration maintenance work; or
               (3)  work with a person or entity that is not a licensed
  air conditioning and refrigeration contracting company in the
  performance of air conditioning and refrigeration maintenance
  work.
         SECTION 34.  Chapter 1302, Occupations Code, is amended by
  adding Subchapter L to read as follows:
  SUBCHAPTER L. AIR CONDITIONING AND REFRIGERATION TRAINEES
         Sec. 1302.551.  LICENSE REQUIRED. (a)  A person may not act
  or offer to act as an air conditioning and refrigeration trainee
  unless the person is licensed under this subchapter.
         (b)  An air conditioning and refrigeration trainee license
  is valid throughout the state.
         Sec. 1302.552.  SUPERVISION REQUIREMENTS FOR TRAINEES. An
  air conditioning and refrigeration trainee must be supervised by an
  air conditioning and refrigeration master licensed under this
  chapter.
         Sec. 1302.553.  ELIGIBILITY REQUIREMENTS. (a)  An
  applicant for a license under this subchapter must be at least 18
  years old.
         (b)  Practical experience or an examination is not required
  for a trainee license.
         Sec. 1302.554.  APPLICATION; FEES. (a)  An applicant for an
  air conditioning and refrigeration trainee license must submit an
  application on a form prescribed by the executive director.
         (b)  The completed application must be accompanied by the
  required fees.
         Sec. 1302.555.  ISSUANCE AND TERM OF REGISTRATION. (a)  The
  department shall issue an air conditioning and refrigeration
  trainee license to an applicant who:
               (1)  submits a verified application on a form
  prescribed by the executive director;
               (2)  meets the requirements of this chapter and rules
  adopted under this chapter; and
               (3)  pays the required fees.
         (b)  A license issued under this subchapter is valid for one
  year from the date of issuance.
         Sec. 1302.556.  TEMPORARY LICENSE. The executive director
  shall issue on request by an applicant a temporary license that
  expires on the 21st day after the date of issuance to an applicant
  who meets the qualifications for a temporary license under
  commission rule.
         Sec. 1302.557.  LIMITATIONS ON LICENSE HOLDER. A person
  licensed under this subchapter may not:
               (1)  perform, offer to perform, or attempt to perform
  an act that is:
                     (A)  defined as the practice of engineering under
  Chapter 1001, unless the person holds a license under that chapter;
                     (B)  regulated under Chapter 113, Natural
  Resources Code, unless the person holds a license under that
  chapter or is exempt by a rule adopted under that chapter; or
                     (C)  defined as plumbing under Chapter 1301,
  unless the person holds a license under that chapter;
               (2)  assist a person who is not a licensed air
  conditioning and refrigeration master in the performance of air
  conditioning and refrigeration maintenance work; or
               (3)  work with a person or entity that is not a licensed
  air conditioning and refrigeration contracting company in the
  performance of air conditioning and refrigeration maintenance
  work.
         SECTION 35.  Chapter 1302, Occupations Code, is amended by
  adding Subchapter M to read as follows:
  SUBCHAPTER M. AIR CONDITIONING AND REFRIGERATION CONTRACTING
  COMPANY LICENSE REQUIREMENTS
         Sec. 1302.601.  LICENSE REQUIRED. (a)  A person or entity
  may not operate an air conditioning and refrigeration contracting
  company unless the person or entity holds a contracting company
  license issued under this subchapter or Subchapter G.
         (b)  An air conditioning and refrigeration contracting
  company license issued under this subchapter is valid throughout
  the state.
         Sec. 1302.602.  REQUIREMENTS FOR AIR CONDITIONING AND
  REFRIGERATION CONTRACTING COMPANY. (a)  An air conditioning and
  refrigeration contracting company must employ full-time in each
  permanent office a licensed air conditioning and refrigeration
  master who holds an appropriate license assigned to that
  contracting company.
         (b)  An air conditioning and refrigeration contracting
  company may engage in air conditioning and refrigeration
  contracting within the scope of the license of the air conditioning
  and refrigeration master assigned to that contracting company.
         (c)  An air conditioning and refrigeration contracting
  company may subcontract a portion of a job that requires another
  professional or occupational license only to a person or entity
  that holds the required license.
         (d)  An air conditioning and refrigeration contracting
  company that does not hold a contracting company license or does not
  employ a licensed air conditioning and refrigeration master as
  required by Subsection (a) at the time a contract for air
  conditioning and refrigeration contracting services is signed and
  at the time the services are performed may not collect a fee from a
  customer or otherwise enforce the contract against a customer.
         (e)  An air conditioning and refrigeration contracting
  company must maintain insurance at all times as required by the
  commission by rule.
         Sec. 1302.603.  APPLICATION; FEE. (a)  An applicant for an
  air conditioning and refrigeration contracting company license
  must submit an application on a form prescribed by the executive
  director.
         (b)  The completed application must be accompanied by the
  appropriate fees.
         (c)  An applicant for an air conditioning and refrigeration
  contracting company license shall provide evidence of insurance
  coverage as required by the commission by rule.
         Sec. 1302.604.  ISSUANCE AND TERM OF AIR CONDITIONING AND
  REFRIGERATION CONTRACTING COMPANY LICENSE. (a)  The department
  shall issue an air conditioning and refrigeration contracting
  company license to an applicant that:
               (1)  submits a verified application;
               (2)  passes the applicable examination;
               (3)  meets the requirements of this chapter and rules
  adopted under this chapter; and
               (4)  pays the required fees.
         (b)  A license issued under this subchapter expires on the
  first anniversary of the date of issuance.
         Sec. 1302.605.  TEMPORARY LICENSE. The commission by rule
  may provide for the issuance of a temporary air conditioning and
  refrigeration contracting company license to an applicant that:
               (1)  submits to the executive director an application
  on a form prescribed by the executive director; and
               (2)  pays the required fees.
         Sec. 1302.606.  LIMITATIONS ON LICENSE HOLDER. A person or
  entity licensed under this subchapter may not:
               (1)  perform, offer to perform, or attempt to perform
  an act that is:
                     (A)  defined as the practice of engineering under
  Chapter 1001, unless the person holds a license under that chapter;
                     (B)  regulated under Chapter 113, Natural
  Resources Code, unless the person holds a license under that
  chapter or is exempt by a rule adopted under that chapter; or
                     (C)  defined as plumbing under Chapter 1301,
  unless the person holds a license under that chapter; or
               (2)  use the services of a person who is not a licensed
  air conditioning and refrigeration master, a licensed air
  conditioning and refrigeration technician, or a licensed air
  conditioning and refrigeration trainee to engage in air
  conditioning and refrigeration contracting or air conditioning and
  refrigeration maintenance work.
         SECTION 36.  The following sections of the Occupations Code
  are repealed:
               (1)  Subdivisions (5-b) and (17), Section 1302.002;
               (2)  Section 1302.062;
               (3)  Section 1302.106;
               (4)  Section 1302.209;
               (5)  Subsections (c) and (d), Section 1302.257;
               (6)  Section 1302.261;
               (7)  Section 1302.502;
               (8)  Section 1302.506;
               (9)  Section 1302.507; and
               (10)  Section 1302.508.
         SECTION 37.  (a)  Not later than February 1, 2012, the Texas
  Commission of Licensing and Regulation shall adopt rules to
  implement Chapter 1302, Occupations Code, as amended by this Act.
         (b)  The Texas Commission of Licensing and Regulation shall
  adopt rules to convert and renew an air conditioning and
  refrigeration contractor license issued before March 1, 2012, to an
  air conditioning and refrigeration master license without imposing
  the additional eligibility requirements under Chapter 1302,
  Occupations Code, as amended by this Act.
         (c)  The Texas Commission of Licensing and Regulation shall
  adopt rules to convert and renew an air conditioning and
  refrigeration registration or certification issued before March 1,
  2012, to an air conditioning and refrigeration technician license
  without imposing the additional eligibility requirements under
  Chapter 1302, Occupations Code, as amended by this Act.
         (d)  Chapter 1302, Occupations Code, as amended by this Act,
  applies only to an application for a license under that chapter
  submitted to the Texas Department of Licensing and Regulation on or
  after March 1, 2012. An application for a license, registration, or
  certification submitted under that chapter before that date is
  governed by the law in effect on the date the application was
  submitted, and the former law is continued in effect for that
  purpose.
         SECTION 38.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect March 1, 2012.
         (b)  Section 37 of this Act takes effect September 1, 2011.