82R28214 SLB-F
 
  By: Carona S.B. No. 1244
 
  (Hamilton)
 
  Substitute the following for S.B. No. 1244:  No.
 
 
 
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.  Section 1302.002, Occupations Code, is amended
  by amending Subdivision (5-b) and adding Subdivision (5-c) to read
  as follows:
               (5-b)  "Apprenticeship program" means an air
  conditioning and refrigeration training program that is:
                     (A)  recognized by the Texas Workforce Commission
  or the Texas Higher Education Coordinating Board;
                     (B)  registered with the United States Department
  of Labor; or
                     (C)  a competency-based standardized craft
  training program that meets the standards of the United States
  Department of Labor Office of Apprenticeship.
               (5-c)  "Certified technician" means a registered
  technician who has completed a certification examination.
         SECTION 2.  Subchapter C, Chapter 1302, Occupations Code, is
  amended by adding Section 1302.1011 to read as follows:
         Sec. 1302.1011.  RULES. The commission shall adopt rules:
               (1)  providing for the licensing and registration of
  persons under this chapter, including requirements for the issuance
  and renewal of a contractor license and a technician registration;
               (2)  establishing fees necessary for the
  administration of this chapter, including fees for issuance and
  renewal of a contractor license and a technician registration; and
               (3)  implementing the requirements of this chapter as
  applicable to persons, entities, and activities regulated under
  this chapter.
         SECTION 3.  Subsection (a), Section 1302.102, Occupations
  Code, is amended to read as follows:
         (a)  The commission by rule [executive director] shall set
  insurance requirements for a license holder under this chapter.
         SECTION 4.  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 5.  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 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 contractor who employs organized labor [and at least
  two appointed members must be air conditioning and refrigeration
  contractors who are licensed engineers].
         SECTION 6.  The heading to Subchapter F, Chapter 1302,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER F. AIR CONDITIONING AND REFRIGERATION CONTRACTORS
  [LICENSE REQUIREMENTS]
         SECTION 7.  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 contractor [a]
  license under this subchapter or Subchapter G.
         (b)  An air conditioning and refrigeration contractor [A]
  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.
         (c)  A person holding an air conditioning and refrigeration
  contractor license may assign that license to only one permanent
  office of one air conditioning and refrigeration contracting
  company.
         SECTION 8.  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 at least 48 [36] months of practical
  experience in air conditioning and refrigeration-related work
  under the supervision of a licensed air conditioning and
  refrigeration contractor [with the tools of the trade] in the
  preceding 72 months [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
  apprenticeship program 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 48-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 9.  Subsections (a) and (c), Section 1302.256,
  Occupations Code, are amended to read as follows:
         (a)  An applicant for an air conditioning and refrigeration
  contractor [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 [1302.255(a)(2)]; and
               (2)  the required fees [examination fee].
         SECTION 10.  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 11.  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 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];
               (4)  pays the required fees; and
               (5) [(2)]  provides evidence of insurance coverage
  required by rule [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 12.  Section 1302.263, Occupations Code, is amended
  to read as follows:
         Sec. 1302.263.  LIMITATION ON LICENSE HOLDER [OR REGISTERED
  TECHNICIAN]. A person licensed as a contractor 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 contractor to assist in the performance of air
  conditioning and refrigeration maintenance work.
         SECTION 13.  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 contractor
  license or technician registration 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 14.  Section 1302.501, Occupations Code, is amended
  by amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  An air conditioning and refrigeration technician [A]
  registration is valid throughout the state.
         (c)  A person is not required to obtain an air conditioning
  and refrigeration technician registration if the person only
  assists a licensed contractor in performing:
               (1)  the total replacement of a system; or
               (2)  the installation or repair of a boiler or pressure
  vessel that must be installed in accordance with rules adopted
  under Chapter 755, Health and Safety Code.
         SECTION 15.  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 technician registration under this subchapter must
  be at least 18 years old.
         (b)  An applicant for a technician registration is not
  required to have practical experience or to take an examination to
  obtain the registration.
         SECTION 16.  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 registration must
  submit a verified [an] application on a form prescribed by the
  executive director [commission].
         (b)  The completed application must be accompanied by the
  required fees [application fee].
         SECTION 17.  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 registration to an applicant who:
               (1)  submits a verified application;
               (2)  meets the requirements of this chapter and rules
  adopted under this chapter; and
               (3)  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 registration issued under this subchapter is valid for
  one year from the date of issuance.
         SECTION 18.  Subchapter K, Chapter 1302, Occupations Code,
  is amended by adding Section 1302.509 to read as follows:
         Sec. 1302.509.  LIMITATIONS ON REGISTRANT. A person
  registered 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)  assist a person who is not a licensed air
  conditioning and refrigeration contractor in the performance of air
  conditioning and refrigeration maintenance work.
         SECTION 19.  The following sections of the Occupations Code
  are repealed:
               (1)  Section 1302.062;
               (2)  Section 1302.106;
               (3)  Section 1302.209;
               (4)  Subsections (c) and (d), Section 1302.257;
               (5)  Section 1302.502; and
               (6)  Section 1302.507.
         SECTION 20.  (a)  Not later than March 1, 2012, the Texas
  Commission of Licensing and Regulation shall adopt rules to
  implement Chapter 1302, Occupations Code, as amended by this Act.
         (b)  Section 1302.255, Occupations Code, as amended by this
  Act, applies only to an application for a license or registration
  under that section submitted to the Texas Department of Licensing
  and Regulation on or after November 1, 2012. An application for a
  license, registration, or certification submitted under that
  section 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 21.  This Act takes effect September 1, 2011.