Texas Register, Volume 19, Number 42, Pages 4363-4461, June 7, 1994 Page: 4,374
4363-4461 p. ; 28 cm.View a full description of this periodical.
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James D. Brush II, director, Policies and
Standards Division, has determined that for
the first five-year period the sections are in
effect there will be no fiscal implications for
state or local government as a result of en-
forcing or administering the sections.
Mr. Brush also has determined that for each
year of the first five years the amendments
are in effect the public benefit anticipated as a
result of enforcing the sections will be much
greater protection for the consumer because
work will be performed by qualified license-
holders. The cost for compliance for small
businesses will be that licensed contractors
who have been subcontracting service work
to unlicensed individuals will have to either
hire employees to do service work or use
subcontractors who are licensed themselves.
If the licensed contractor chooses to use a
licensed subcontractor the cost would be min-
imal If the licensed contractor chooses to
hire an employee who owns his own truck
and tools, the cost per employee would be
minimal. If he chooses to provide the truck
and tools for the employee, the cost per em-
ployee would be at least $20,000. The antici-
pated economic cost to persons who are
required to comply with with the sections as
proposed is the same as for small businesses
if the individual is operating as a contractor.
The amendments are proposed under Texas
Civil Statutes, Article 8861, which authorize
the department to license and regulate air
conditioning and refrigeration contractors
The amendments affect Texas Civil Statutes,
Article 8861.
7520. Licensing Requirements-Applica-
tions.
(a) Credit for air conditioning and
refrigeration courses emphasizing hands-on
training taken at schools accredited by the
Texas Education Agency, the Coordinating
Board of the Texas College and University
System, and the Accrediting Commission
of Career Schools/Colleges of Technology
[National Association of Trade and Techni-
cal Schools] will be allowed at the rate of
one month's credit for each two months of
successfully completed training Transcripts
are required.
(b)-(c) (No change.)
75.23. Licensing Requirements-Temporary
Licenses.
(a) A contracting firm operating un-
der a state license, whose only license
holder is suddenly no longer available due
to death, disability, or dissolution of a part-
nership or corporation [company], may
request a temporary license from the com-
missioner A temporary license is not avail-
able to a new unlicensed owner of a
company who was not an owner or officer
[a part] of the company before it was dis-
solved [or sold], or to companies that rely
on a sole licensed employee who leaves the
company. An employee of a sole propri-etorship is not eligible for a temporary
license if the licensed owner closes or sells
the business. The request must be made foi
an owner, partner, or employee who was
affiliated with the firm at the time the li-
cense holder became unavailable The per-
son who will hold the temporary license
must meet all elgibility requirements to
take an examination for a license.
(b) The request must be in writing
and must state the reason for the request,
including the circumstances and legal or-
ganization of the company involved A
completed application and the registration
and exam fees must accompany the request
If the insurance in effect at the time of the
sudden unavailability of the license holder
does not extend to the current firm, a new
certificate of insurance must accompany the
request
(c) A temporary license may be
granted for a period extending 30 days be-
yond the date of the next exam period, not
to exceed six months, and is not renew-
able. A second temporary license may not
be issued to a company unless that com-
pany had a regular license holder follow-
ing the initial temporary license, and the
regular license holder became suddenly
unavailable in circumstances that make
the company again eligible to receive a
temporary license. The temporary license
shall be of the same class and endorsement
as the license needing to be replaced
(d) (No change)
75 30 Eienmon
(a) Air conditioning and refrigera-
tion contracting performed by a regular em-
ployee of a regulated electric or gas utility
is exempt if it is performed in connection
with the utility business in which the person
is employed
(b) 'The Act does not applly to an
individual who performs air conditioning
and refrigeration maintenance work on
equipment owned by hint on property
owned by him if he does not engage in
the occupation of air conditioning and
refrigeration contracting for the gene al
public.
75 40 Inurance Requrement
(a)-(b) (No change)
(c) Insurance must be obtained
from an admitted company or an eligible
surplus lines carrier, as defined in Texas
Insurance Code, Article 1. 14-2.
(d) (No change )
(e) A license applicant of holder
shall furnish to the department a certificate
of insurance The license holde's name,
business name, and address must be shownas it appears on the license. The certificate
form to be submitted shall be the form
furnished by the department. Each certifi-
cate of insurance will reflect all assumed
names used by the license holder and regis-
tered with this agency. Neither binders nor
[Binders and] interim certificates of less
than 60 days will [not] be accepted. The
certificates of insurance shall be issued to
each municipality where air conditioning
and refrigeration contracting is performed.
(f)-(h) (No change )
75 70 Respons.btiitles of the Licensee
(a)-(b) (No change)
(c) Service work may not be sub-
contracted to an unlicensed person, firm
or corporation.
(d)[(c)] A licensed contractor who
works as a subcontractor for another air
conditioning and refrigeration company
must work under the license of the other air
conditioning and refrigeration business. The
work must be'scheduled and billed by the
other air conditioning and refrigeration
company, and the hcense holder working as
a subcontractor must be paid by the other
company The licensed contractor who is
acting as contractor, not subcontractor, is
responsible for all subcontracting work.
(e)[(d)] Each air conditiomng and
refrigeration company shall have a license
holder employed full time in each perma-
nent office operated in Texas All work
requiring a license under the Act shall be
under the direct personal supervision of the
license holder for that office The license
holder's license number shall appear in all
proposals and invoices for that office.
(f)l(e)] If an air conditioning and
refrigeration company uses locations other
tharr a permanent office, these locations
shall only be used to receive instructions
from the permanent office on scheduling of
work, to store parts and supplies, and to
park vehicles The air conditioning and re-
frigciation company shall provide ad-
dress(es) of these other locations to the
department no later than 30 days after the
locations are established.
(g)l f] A license holder may not per-
mit any person or company to use the Li-
cense holder's license for any purpose
unless the person is a bona fide employee or
subcontractor in accordance with subsec-
tions (b) and (c) of this section
(h)[(g)] Each license shall be dis-
played at the contractor's place of business
as listed with the department
(i)[(h)] Each licensed contractor
shall display the license number and com-
pany name in letters no' less than two
inches high on both sides t all trucks used
in conjunction with air conditioning and19 TexReg 4374 June 7, 1994
Texas Register
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Texas. Secretary of State. Texas Register, Volume 19, Number 42, Pages 4363-4461, June 7, 1994, periodical, June 7, 1994; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth176895/m1/12/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.