HBA-MPA H.B. 1822 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1822
By: Yarbrough
Licensing & Administrative Procedures
7/15/1999
Enrolled


BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the Air Conditioning and Refrigeration
Contractor License Law (Act) required any air conditioning and
refrigeration contractor doing business  in Texas to hold either a
municipal or a state license.  It provided several exemptions from
licensure, most notably for apartment maintenance staff.  There were 11,000
licensed contractors in Texas, and they reported that there may have been
that many unlicenced contractors operating outside the Act.  The Act was
administered by the Texas Department of Licensing and Regulation, and 60
percent of the department's investigations involved the Act. 

The department has received funding to maintain only minimal enforcement of
the Act.  It has been able to investigate consumer complaints, but has not
had adequate staff to pursue unlicenced contractors and bring them into
compliance.  H.B. 1822 clarifies provisions of the Act and strengthens
penalties for operating as a contractor without a license. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate rulemaking authority to state officer, department,
agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 2(7) and (9), Article 8861, V.T.C.S. (Air
Conditioning and Refrigeration Contractor License Law), to add repair of
boilers or pressure vessels and delete licensed persons in reference to
operations not included under the term "air conditioning and refrigeration
maintenance work."  Defines "air conditioning and refrigeration
contracting" as performing or offering to perform certain tasks on
specified equipment. 

SECTION 2. Amends Section 2,  Article 8861, V.T.C.S., by adding Subsection
(14), to define "air conditioning and refrigeration contracting company." 

SECTION 3. Amends Sections 3(b) and (m), Article 8861, V.T.C.S., to
authorize the executive director  to issue a cease and desist order if the
executive director determines that an emergency exists requiring immediate
action to protect the public health and safety.  Authorizes a
representative of the Texas Department of Licensing and Regulation
(department), rather than Texas Commission of Licensing and Regulation, to
issue a citation for violation of Section 10(e) or (f) (Sale and Use of
Refrigerants).  Makes a conforming change. 

SECTION 4.  Amends Section 3B, Article 8861, V.T.C.S., by creating
Subsection (a) from existing text and adding Subsections (b) and (c), as
follows: 

Sec. 3B.  New title: LICENSE REQUIRED; CITATION.  (b) Provides that an air
conditioning and refrigeration contracting company must employ full time at
each permanent office at least one person licensed to perform the
contracting, and whose license is assigned to the company. 

(c)  Authorizes a municipal or county official to issue a citation to an
air conditioning and refrigeration contracting company that performs air
conditioning and refrigeration contracting without the required license,
unless exempt under this article. 
 SECTION 5. Amends Article 8861, V.T.C.S., by adding Section3C, to prohibit
an air conditioning and refrigeration contracting company from enforcing a
contract or collecting a fee for air conditioning and refrigeration
contracting unless a properly licensed  person is employed at the time the
contract is performed.  

SECTION 6. Amends Sections 4(f) and (g), Article 8861, V.T.C.S., to delete
from Subsection (f) the provision that  an application for an air
conditioning and refrigeration contractor license must be accompanied by
evidence of required insurance coverage.  Adds this requirement to
Subsection (g), and deletes the requirement to pay an examination fee.
Substitutes the executive director for the commissioner of licensing and
regulation as the person required to issue a license.  Makes conforming and
nonsubstantive changes. 

SECTION 7.  Amends Section 5(a), Article 8861, V.T.C.S., to provide that
failure to provide proper installation, service, or, rather than and,
mechanical integrity constitutes a violation. 

SECTION 8.  Amends Section 6(a)(6), Article 8861, V.T.C.S., to specify an
exemption for work performed on residential refrigerators, freezers, and
ice machines. 

SECTION 9.   Amends Section 7, Article 8861, V.T.C.S., to create new
Subsections (a) and (b) from existing text and add Subsection (c)
authorizing a municipality to impose a reasonable fee necessary to cover
the cost of the implementation of this section. 

SECTION 10.  Amends Section 8, Article 8861, V.T.C.S., to provide that a
person commits a Class C, rather than Class B, misdemeanor by knowingly or
intentionally engaging in air conditioning and refrigeration contracting
without an appropriate license. 

SECTION 11. Amends Section 9, Article 8861, V.T.C.S., to provide that an
applicant for a municipal license must pass an examination covering the
same subjects as the examination required by the department for the same
type of work the applicant proposes to perform, and meet the experience
requirement under Section 4(e), Article 8861, V.T.C.S.  Makes conforming
and nonsubstantive changes. 

SECTION 12. Amends Sections 10(h), Article 8861, V.T.C.S., to provide that
an offense under this section is a Class C, rather than Class B,
misdemeanor 

SECTION 14.  Amends Section 10, Article 8861, V.T.C.S., by adding
Subsection (j), to provide that a person is authorized to purchase
refrigerants if the person is exempt under Section 6(a) because the person
performs air conditioning and refrigeration contracting for an electric or
gas utility, an industrial operation, on portable, self-contained, or
temporary equipment, or in motor vehicles. 

SECTION 14. Makes application of Section 8, Article 8861, V.T.C.S., as
changed by this Act prospective.  

SECTION 15.  (a)  Makes application of Section 9, Article 8861, V.T.C.S.,
as changed by this Act prospective, except as provided by Subsection (b).
Requires a municipality subject to that section to adopt examination
requirements no later than January 1, 2000. 

(b)  Provides that a person who holds a municipal license on the effective
date of this Act must satisfy the examination requirements imposed under
Section 9(b), Article 8861, V.T.C.S., as amended by this Act no later than
June 1, 2000, in order for that person to continue to engage in the
practice of air conditioning and refrigeration contracting after September
1, 1999. 

SECTION 16.  Effective date: September 1, 1999.  Requires that the
commissioner of licensing and regulation adopt rules as required by Section
3C, Article 8861, V.T.C.S., no later than December 31, 1999.  

SECTION 17.Emergency clause.