TITLE 16.ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 75. AIR CONDITIONING AND REFRIGERATION CONTRACTOR LICENSE LAW

The Texas Department of Licensing and Regulation adopts the repeal of §75.25 and amendments to §§75.1, 75.10, 75.20-75.24, 75.26, 75.30, 75.40, 75.65, 75.70, 75.80, 75.90, and 75.100 concerning air conditioning contractors, as published in the December 15, 2000, issue of the Texas Register (25 TexReg 12302). No comments were received on the proposed repeal of §75.25 or the proposed amendments to §§75.1, 75.21-75.24, 75.26, 75.30, 75.40, 75.65, 75.80, and 75.90. These sections are adopted without change and will not be reprinted. §§75.10, 75.20, 75.70, and 75.100 are adopted with changes.

Comments were received on §§75.10, 75.20, 75.70, and 75.100. The amendment to §75.10 deletes a part of the definition of "Advertising or Advertisement", which is covered in the rule on Advertising; adds language to describe how "Biomedical Remediation" is accomplished; adds a definition of "Design of a system"; and clarifies the definition of "Repair work". The amendment to §75.10 is to provide clarification to industry and promote understanding of the terms used in this Chapter.

Several commenters objected to deletion of "simultaneous" from the proposed definition of "Repair work". The commenters believed that the definition could be misconstrued to mean installation of condensing units, furnace, and evaporator coils are never included in repair work. The Department agrees with the commenters and is not removing "simultaneous" from the definition.

A commenter stated that the definition of "Repair Work" should not include refrigeration equipment. The Department disagrees with the commenter because the statute includes refrigeration in the definition of "Air Conditioning and Refrigeration Maintenance Work".

The amendment to §75.20(a) deletes the 45-day requirement on receipt of an application prior to an examination date and specifies all licensing requirements must be completed within one year of the date the application is filed. The justification for the changes in §75.20(a) is that 45 days is no longer necessary to process applications for exams, since exams are now computer-based. A time limit on completing the licensing process simplifies procedures and facilitates timely enforcement actions.

Changes in §75.20(b) deletes, "who wishes to use", and adds, "uses", to provide clarification to the subsection. A commenter stated that 75.20(b)(3) does not agree with the rules of the Proprietary Schools Division of the Texas Workforce Commission concerning equivalency between classroom hours and semester hours. The Department agrees with commenter and is amending this rule to state that fifteen lecture hours are equivalent to one semester hour and 30 lab hours are equivalent to one semester hour.

The amendments proposed for §75.70 clarify that the section applies to an air conditioning and refrigeration contracting company; remove the requirement that the license be displayed in the permanent office of the business to which it is assigned; move the provision that the license number must be on all proposals and invoices to a new subsection concerning invoices; restates the subsection making the licensee responsible for all work performed under his/her license to make it clearer; deletes the requirement that the license must be displayed at the office to which it is assigned; restates the subsection on advertising by listing exclusions to the requirement of showing the license number on all advertising instead of listing the types of advertising that require showing the license number; adds a requirement that the contractor furnish an invoice to all consumers; and clarifies the information to be provided to the Department in the event of change by the licensee.

The justification for the amendments in §75.70 is that both companies and licensees must comply with these rules; that the display of a license in the business office is not necessary, since few consumers visit the contractor's office; that the Department can better track responsibility with clear notice to the licensee that he/she is responsible for all work under his/her supervision; that stating the types of advertising that do not require listing the license number will make the rule easier to understand and enforce; that consumers have a right to receive an invoice documenting work performed; and that clarifying the requirements for revising information furnished to the Department will eliminate some of the time spent requesting additional or corrected information.

A commenter stated that subsection 75.70(h) does not correspond to other rule provisions that require the licensee to be a bona fide employee of the company to which he or she has assigned his or her license. The Department agrees with the commenter and is adding the words, "and by whom he or she is not employed" to the subsection.

The amendments to §75.100 clarify that Duct Cleaning that includes biomedical remediation requires a license under this Act, and add a subsection on Standards for the practice of air conditioning and refrigeration contracting. The justification is that the amendment will facilitate enforcement of duct cleaning companies that engage in biomedical remediation without the required license; and that standards that can be applied throughout the state will give better accountability of workmanship and protection to consumers.

A commenter stated that subsection 75.100(b)(2) concerning drain piping does not make it clear that the limitations in that subsection apply only to drain piping that terminates within a building. The Department agrees with the commenter and is changing the limitations to state that licensees must install drain piping that terminates outside the building, and if the piping terminates inside the building that it may be installed by a licensee if the connection is on the inlet side of a properly installed trap.

A commenter pointed out the omission of the word, "Mechanical" in the name of the 2000 International Code. The Department agrees with the commenter and has added the word.

Comments were received from the Capitol Trade School, James Heard, Ronal C. Malek, the Southern Building Code Conference International, the Texas Apartment Association, the Texas Building Owners and Managers Association, and the Texas Mini Storage Association.

16 TAC §§75.1, 75.10, 75.20 - 75.24, 75.26, 75.30, 75.40, 75.65, 75.70, 75.80, 75.90, 75.100

The amendments are adopted under Texas Revised Civil Statutes Annotated, Article 8861 which authorizes the Commissioner of the Texas Department of Licensing and Regulation to promulgate and enforce a code of rules and take all action necessary to assurance compliance with the intent and purpose of the Article.

The Article and Code affected by the adopted amendments is Texas Revised Civil Statutes Annotated, Article 8861 and Texas Occupations Code, Chapter 51.

§75.10.Definitions.

The following words and terms have the following meanings:

(1)

Advertising or Advertisement-Any commercial message which promotes the services of an air conditioning and refrigeration contractor.

(2)

Air conditioning and refrigeration subcontractor-A person or firm who contracts with a licensed air conditioning contractor for a portion of work requiring a license under the Act. The subcontractor contracts to perform a task according to his own methods, and is subject to the contractor's control only as to the end product or final result of his work.

(3)

Air conditioning or heating unit-A stand-alone system with its own controls that conditions the air for a specific space and does not require a connection to other equipment, piping, or ductwork in order to function.

(4)

Assumed name-As defined in the Business and Commerce Code, Title 4, Chapter 36, Subchapter A, Section 36.02.

(5)

Biomedical Remediation-The treatment of ducts, plenums, or other portions of air conditioning or heating systems by applying disinfectants, anti-fungal substances, or products designed to reduce or eliminate the presence of molds, mildews, fungi, bacteria, or other disease-causing organisms.

(6)

Boiler-As defined in the Health and Safety Code, Title 9, Subtitle A, Chapter 755.Boilers.

(7)

Business affiliation-The business organization with which a licensee elects to affiliate.

(8)

Cheating-Attempting to obtain, obtaining, providing, or using answers to examination questions by deceit, fraud, dishonesty, or deception.

(9)

Contracting-Agreeing to perform work, either verbally or in writing, or performing work, either personally or through an employee or subcontractor.

(10)

Cryogenics-refrigeration that deals with producing temperatures ranging from:

(A)

-250 degrees F to Absolute Zero (-459.69 degrees F);

(B)

-156.6 degrees C to -273.16 degrees C;

(C)

116.5 K to 0 K; or

(D)

209.69 degrees F to 0 degrees R.

(11)

Design of a system-making decisions on the necessary size of equipment, number of grilles, placement and size of supply and return air ducts, and any other requirements affecting the ability of the system to perform the function for which it was designed.

(12)

Direct personal supervision-Directing and verifying the design, installation, construction, maintenance, service, repair, alteration, or modification of an air conditioning, refrigeration, process cooling, or process heating product or equipment for compliance with mechanical integrity.

(13)

Employee-An individual who performs tasks assigned to him by his employer. The employee is subject to the deduction of social security and federal income taxes from his pay. An employee may be full time, part time, or seasonal. Simultaneous employment with a temporary employment agency, a staff leasing agency, or other employer does not affect his status as an employee.

(14)

Employer-One who employs the services of others, pays their wages, deducts the required social security and federal income taxes from the employee's pay, and directs and controls the employee's performance.

(15)

Full time employee-an employee who is present on the job 40 hours a week, or at least 80% of the time the company is offering air conditioning and refrigeration contracting services to the public, whichever is less.

(16)

Licensee-an individual holding a license of the class and endorsement appropriate to the work performed under the Act and these rules.

(17)

Permanent office-Any business location at which contractual agreements to perform work requiring a license under the Act are arranged and where supervising control for those contracts originate. Temporary construction sites or other locations at which employees of a licensee work under contract to provide service, maintenance and repair work are not permanent offices.

(18)

Primary process medium-a refrigerant or other primary process fluid that is classified in the current ANSI/ASHRAE Standard 34 as Safety Group A1, A2, B1, or B2. Safety Groups A3 and B3 refrigerants are specifically excluded.

(19)

Proper installation-installing air conditioning or refrigeration equipment in accordance with:

(A)

applicable municipal ordinances and codes adopted by a municipality where the installation occurs;

(B)

the most stringent current Uniform Mechanical Codes, Standard Mechanical Code, Standard Gas Code, International Mechanical Code, and International Fuel Gas Code in areas where no code has been adopted;

(C)

the manufacturer's instructions; and

(D)

all requirements for safety and the proper performance of the function for which the equipment or product was designed.

(20)

Repair work-diagnosing and repairing problems with air conditioning, commercial refrigeration, or process cooling or heating equipment, and remedying or attempting to remedy the problem. Repair work does not mean simultaneous replacement of the condensing unit, furnace, and evaporator coil.

§75.20.Licensing Requirements - Application and Experience Requirements.

(a)

An applicant shall submit a complete application and appropriate fees. An applicant must complete all requirements, including passing the exam, within one year of the date the application is filed.

(b)

An applicant who uses credit for air conditioning and refrigeration courses to fulfill up to two years of the required 36 months of experience with the tools of the trade must furnish a copy of:

(1)

a transcript or diploma showing a degree in air conditioning engineering, refrigeration engineering, or mechanical engineering;

(2)

a transcript, certificate or diploma in a course emphasizing hands-on training with the tools of the trade; or

(3)

transcript of courses taken without earning a certificate or diploma emphasizing hands-on training with the tools of the trade. Transcripts must be from schools authorized or approved by the Texas Workforce Commission, the U.S. Department of Education, the Coordinating Board of the Texas College & University System, or other organizations recognized by the Department. Credit will be allowed at the rate of one month credit for every two months of completed training. Thirty semester hours are equivalent to six months credit of experience. For schools issuing certificates based on classroom hours, fifteen lecture hours are equivalent to one semester hour and 30 lab hours are equivalent to one semester hour.

§75.70. Responsibilities of the Licensee and the Air Conditioning and Refrigeration Contracting Company.

(a)

The licensee shall:

(1)

if affiliated with a business, choose one business affiliation that will use the licensee's license;

(2)

be a bona fide employee or owner of the business affiliation, and must work full time at the business affiliation, or permanent office of the business affiliation;

(3)

use his license for one business affiliation and one permanent office at any given time;

(4)

furnish the Department with his or her permanent mailing address and the name, physical address, and telephone number of the business affiliation; and

(5)

furnish to the Department, copies of assumed name registrations.

(b)

A licensee may subcontract portions of work requiring a license under the Act to unlicensed persons, firms, or corporations as long as:

(1)

the licensee actively provides work or service which requires a license, either in person or with the licensee's bona fide employees;

(2)

the work or service provided in person or with the licensee's bona fide employees consists of more than accepting a contract or request for service, scheduling the work, and providing supervision of the work; and

(3)

the licensee is ultimately responsible to the customer for all work performed by the subcontractor.

(c)

The design of a system may not be subcontracted to an unlicensed person, firm or corporation.

(d)

A licensee who subcontracts with an air conditioning and refrigeration contracting company other than his own, must work under the license of the other air conditioning and refrigeration business. The work must be billed by the other air conditioning and refrigeration contracting company, and the licensee working as a subcontractor must be paid by the other company. The licensee who is the contractor is responsible for all subcontracted work.

(e)

Each air conditioning and refrigeration contracting company shall have a licensee employed full time in each permanent office operated in Texas. All work requiring a license under the Act shall be under the direct personal supervision of the licensee for that office.

(f)

The licensee is responsible under the Act for all work performed under his/her supervision, regardless of whether or not the owners, officers, or managers of the air conditioning and refrigeration contracting company allow the licensee the authority to supervise, train, or otherwise control compliance with the Act.

(g)

If an air conditioning and refrigeration contracting company uses locations other than a permanent office, those locations shall be used only to receive instructions from the permanent office on scheduling of work, to store parts and supplies, and/or to park vehicles. These locations may not be used to contract air conditioning sales or service. The air conditioning and refrigeration contracting company shall provide the address of these other locations to the Department no later than 30 days after the locations are established or changed.

(h)

A licensee may not permit a person or any company with which his or her license is not affiliated, and by whom he or she is not employed, to use his or her license for any purpose.

(i)

Each licensee and air conditioning and refrigeration contracting company shall display the license number and company name in letters not less than two inches high on both sides of all vehicles used in conjunction with air conditioning and refrigeration contracting. When an unlicensed subcontractor is at a job site not identified by a marked vehicle, the site shall be identified either by a temporary sign on the subcontractor's vehicle or on a sign visible and readable from the nearest public street containing the contractor's license number and company name.

(j)

All advertising by licensees and air conditioning and refrigeration contracting companies designed to solicit air conditioning or refrigeration business shall include the licensee's license number. The following advertising does not require the license number:

(1)

nationally placed television advertising, in which a statement indicating that license numbers are available upon request is used in lieu of the licensee's license number;

(2)

telephone book listings that contain only the name, address, and telephone number;

(3)

manufacturers' and distributor's telephone book trade ads endorsing an air conditioning and refrigeration contractor;

(4)

telephone solicitations, provided the solicitor states that the company is licensed by the state. The license number must be provided upon request of a consumer.

(5)

promotional items of nominal value such as ball caps, tee shirts, and other gifts;

(6)

letterheads and printed forms for office use; and

(7)

signs located on the contractor's permanent business location.

(k)

An invoice shall be provided to the consumer for all work performed. The company name, address, and phone number shall appear on all proposals and invoices. The licensee's license number shall appear on all proposals and invoices for that office. The following information: "Regulated by The Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599" shall be listed on:

(1)

proposals and invoices;

(2)

written contracts; and

(3)

a sign prominently displayed in the place of business if the consumer or service recipient may visit the place of business for service.

(l)

A licensee or an air conditioning and refrigeration contracting company that also acts as a general contractor may provide a one-time notice stating the information above to customers for whom they provide services requiring a license under the Act.

(m)

If information provided to the Department by the licensee changes, the licensee shall:

(1)

notify the Department, in writing, within 30 days of any change in name, permanent mailing address, business affiliation, business location, or business telephone number; and

(2)

if the information is printed on the license:

(A)

return the current original license to the Department;

(B)

pay the appropriate revision fee required in Section 75.80 of this title (relating to Fees); and

(C)

provide a revised insurance certificate if the business affiliation name or address has changed.

(n)

The permanent address shall be considered the licensee's permanent mailing address and address of record. All correspondence from the Department will be mailed to that address.

§75.100.Technical Requirements.

(a)

Electrical Connections.

(1)

On new construction of environmental air conditioning, commercial refrigeration, and process cooling or heating systems, licensees shall connect the appliance to the electrical line or disconnect that is provided for that purpose.

(2)

Licensees may replace and reconnect environmental air conditioning, commercial refrigeration, process cooling or heating systems, or component parts of the same or lesser amperage. On replacement environmental air conditioning, commercial refrigeration, process cooling or heating systems where the electrical disconnect has not been installed and is required by the current National Electrical Code, the licensee may install a disconnect directly adjacent to or on the replacement system and reconnect the system.

(3)

Control wiring of 50 volts or less may be installed and serviced by a licensee.

(4)

All electrical work shall be performed in accordance with standards at least as strict as that established by the current National Electrical Code.

(b)

Piping.

(1)

Fuel gas piping for new or replaced environmental air conditioning, commercial refrigeration, or process cooling or heating systems may be installed by a licensee. Fuel gas piping by a licensee is limited to the portion of piping between the appliance and the existing piping system, connected at an existing shut-off valve for such use. Existing piping systems, stops, or shut-off valves shall not be altered by a licensee.

(2)

Drain piping associated with environmental air conditioning, commercial refrigeration, or process cooling or heating systems shall be installed by a licensee if it terminates outside the building. If the piping terminates inside the building, a licensee may make the connection if the connection is on the inlet side of a properly installed trap. Such drain piping shall be installed in accordance with applicable plumbing and building codes.

(3)

Mechanical piping associated with environmental air conditioning, commercial refrigeration, or process cooling or heating systems shall be installed by a licensee.

(c)

Duct cleaning.

(1)

Duct cleaning and air quality testing, including biomedical testing may be performed by an unlicensed person or company if:

(A)

the task is limited to the air distribution system, from the discharge of the unit to the inlet of the unit;

(B)

no cuts are made to ducts or plenums;

(C)

no changes are made to electrical connections;

(D)

the only disassembly of any part of the system is opening or removal of access panels or doors, return air grills, or registers that are removable without cutting or removing any other part of the system; and

(E)

coils are cleaned in place and can be accessed without cutting or disassembly of any part of the system, and no biomedical remediation is performed.

(2)

Biomedical testing may be performed by an unlicensed person or company. Biomedical remediation requires a license.

(d)

Process Cooling and Heating.

(1)

Process cooling and heating work does not include cryogenic work.

(2)

Process cooling and heating is limited to work performed on piping and equipment in the primary closed loop portions of processing systems containing a primary process medium. Once a primary closed loop process system has been deactivated and rendered inert, a non-licensed person may perform repairs on piping, heat exchangers, and vessels.

(e)

Standards

(1)

The standard for the practice of air conditioning and refrigeration in a municipality is the code the municipality adopted by ordinance, provided that the ordinance does not make the code less strict than the 2000 edition of the code adopted.

(2)

The standard for the practice of air conditioning and refrigeration in an area where no code has been adopted is the least strict applicable provision of the 2000 International Mechanical Code or the 2000 Uniform Mechanical Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 15, 2001.

TRD-200100954

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: March 7, 2001

Proposal publication date: December 15, 2000

For further information, please call: (512) 463-7348


16 TAC §75.25

The repeal is adopted under Texas Revised Civil Statutes Annotated, Article 8861, which authorizes the Commissioner of the Texas Department of Licensing and Regulation to promulgate and enforce a code of rules and take all action necessary to assure compliance with the intent and purpose of the article

The Article and Code affected by the repeal is Texas Revised Civil Statutes Annotated, Article 8861 and Texas Occupations Code, Chapter 51.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 15, 2001.

TRD-200100953

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: March 7, 2001

Proposal publication date: December 15, 2000

For further information, please call: (512) 463-7348