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.