Proposed Rules Title 16

TITLE 16. ECONOMIC REGULATION

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

16 TAC §§73.10, 73.26, 73.80, 73.110, 73.111

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 73, §§73.10, 73.26, and 73.80, and new rules at 16 TAC, Chapter 73, §73.110 and §73.111, regarding the Electricians program. These proposed changes are referred to as the "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 73, implement Texas Occupations Code, Chapter 1305, Electricians.

The proposed rules implement House Bill (HB) 1391, 88th Legislature, Regular Session (2023). HB 1391 provides a new pathway to a residential wireman license for students who complete a focused career and technology education (CTE) program (also known as a "career and technical education" program) offered by a Texas high school or institution of higher education. The bill requires the Department to establish standards by rule for the essential knowledge and skills used to build these programs.

Members of the Electrical Safety and Licensing Advisory Board, along with Department staff and representatives from Texas State Technical College, identified an existing series of rules approved by the State Board of Education (SBOE) setting out the essential knowledge and skills for a series of courses in electrical technology. After spending several meetings reviewing the educational requirements of these courses and obtaining valuable insight from Texas Education Agency (TEA) staff regarding the time and practical requirements of each, the group decided upon four SBOE-approved courses that provide the essential classroom and practical training needed for a student to become competent as a residential wireman. These courses are identified in §73.110 of the proposed rules.

The proposed rules recognize that while a student must complete certain coursework in a classroom setting, hands-on instruction is of paramount importance in the learning experience. Thus, at least 80% of classroom time in two courses - Electrical Technology I and II - must be spent on hands-on or lab work. Additionally, four credits of course credit in a "practicum" setting are required. Students will earn these credits by working outside of the classroom under the supervision of a licensed master electrician on behalf of a licensed electrical contractor. The proposed rules also require schools to provide a student with course credit for appropriate work performed outside of the program, such as through an after-school or summer job.

HB 1391 also requires the Department to verify that CTE programs offered by institutions of higher education or private high schools are similar to those offered by public high schools. Section 73.111 thus requires institutions of higher education or private high schools to request a determination from the Department that their programs meet the standards set by §73.110.

Lastly, the proposed rules implement HB 1391's requirement that the Department waive license renewal fees for instructors of CTE programs.

Advisory Board Recommendations

The proposed rules were presented to and discussed by the Electrical Safety and Licensing Advisory Board on March 28, 2024. The Advisory Board recommended adding language to §73.110(b) to state that CTE programs may not offer course credit by examination, to add a reference to the Extended Practicum in Construction Technology course to §73.110(b)(4), and to make any necessary corrections. With these changes, the Advisory Board voted and recommended that the proposed rules be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY

The proposed rules amend §73.10 to add necessary definitions of "career and technology education program" and "institution of higher education." The remaining definitions are renumbered.

The proposed rules amend §73.26 to add subsection (d), which requires an applicant for a residential wireman license who has completed a CTE program to verify completion in a form acceptable to the department.

The proposed rules amend §73.80 to add two subsections. New §73.80(f) sets the cost of a determination under new §73.111 at $90. New §73.80(g) provides that the Department will waive the renewal fee for a master electrician, journeyman electrician, or residential wireman who instructs a CTE program.

The proposed rules create new §73.110, which outlines the requirements governing CTE programs.

Subsection (a) is simply explanatory and states the Department's obligations regarding CTE programs under HB 1391. Subsection (b) is the centerpiece of new §73.110. This subsection states that CTE programs must be designed to ensure that students obtain the essential skills and knowledge outlined in several cross-referenced rules of the Texas Education Agency (TEA). Paragraphs (b)(1) through (b)(4) provide the cross-references to those rules and specify the number of academic credits required to be dedicated to each set of essential skills and knowledge.

Subsection (b) also requires schools that offer CTE courses to provide a substantial amount of practical instruction. This subsection mandates that hands-on instruction, including lab work, be provided to students for at least 80% of total time spent in the classroom covering the topics in the Electrical Technology I and II courses. This requirement is vital to ensure that students have ample training on safety, tools, methods, and equipment under proper supervision before performing work outside of the classroom. Subsection (b) further ensures that students receive adequate instruction by prohibiting a CTE program from granting students course credit by examination.

Paragraph (b)(4) requires a CTE program to include four credits of "practicum" experience, in addition to the classroom portions required by paragraphs (b)(1) through (b)(3). In a practicum setting, students will work - with or without pay, depending on the arrangement - outside of the classroom under the supervision of a licensed master electrician while performing work on behalf of a licensed electrical contractor. Recognizing that some part of a student's time in a practicum will be dedicated to consultation with school administrators, proposed §73.110(b)(4)(A) requires that at least 80% of practicum time be spent outside of the classroom and working under the supervision of a licensed master electrician on behalf of a licensed electrical contractor.

Because a student's academic schedule may not have room for four hours in a practicum setting, §73.110(b)(4)(B) includes HB 1391's requirement that a school provide course credit for appropriate work performed by the student outside of the program. This provision states that a school must implement procedures to ensure that students who work outside of the program - after school hours, on weekends, or as a summer job, for example - are able to receive course credit toward the practicum component for that work.

Subsections (c) and (d) of proposed §73.110 simply implement HB 1391's requirements that CTE courses be instructed by a department-licensed master electrician, journeyman electrician, or residential wireman, and that CTE courses offered by an institution of higher education be no more stringent than a course offered by a public high school. Subsection (e) states that the Department will recognize a CTE course offered by an institution of higher education or private high school if it substantially complies with §73.110. Lastly, subsection (f) repeats HB 1391's requirement that hours spent completing a CTE program may not be credited toward another type of electrical license.

Lastly, proposed new §73.111 sets out the procedures for an institution of higher education or private high school to request a determination from the Department that its CTE program meets the standards of §73.110. Subsection (a) requires these schools to request a determination and specifies the items to be included in the request. Once a school has received a determination of substantial compliance, subsection (b) simply requires schools to notify the Department of major changes to its program. Rounding out the proposed rules, subsections (c) and (d) specify that the Department may rescind its determination if a program is not in compliance with §73.110, and that such a determination is not a contested case under the Administrative Procedure Act, Texas Government Code, Chapter 2001.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rules.

Mr. Couvillon has determined that there could be a potential loss to state revenues for each year of the first five years the proposed rules are in effect as a result of enforcing or administering the proposed rules. Because the proposed rules require the Department to waive license renewal fees for instructors of CTE programs, this represents a potential loss of revenue. However, because it is unknown how many licensees will instruct CTE programs, this loss cannot currently be estimated.

Mr. Couvillon has also determined that there could be a potential gain to state revenues for each year of the first five years the proposed rules are in effect as a result of enforcing or administering the proposed rules. The proposed rules require an institution of higher education or private high school to request a determination from the Department regarding its program's compliance with proposed new §73.110. The fee for requesting the determination will be $90 (see the proposed amendment to §73.80, above). As it is unknown how many schools will implement CTE programs and therefore request these determinations, the potential gain to revenues cannot currently be estimated.

There could also be a potential gain to state revenues due to an increase in the number of applicants for a residential wireman license. Again, because it is unknown how many new applications the Department will receive, the potential gain to revenues cannot currently be estimated.

Mr. Couvillon has determined that for each year of the first five years the proposed rules are in effect, enforcing or administering the proposed rules will not result in costs to local governments. However, local governments could see increases in revenues due to increased numbers of students paying tuition to local colleges in order to participate in CTE programs. Because it is unknown how many students will seek out these programs, the potential increase in revenue cannot currently be estimated.

LOCAL EMPLOYMENT IMPACT STATEMENT

Because Mr. Couvillon has determined that the proposed rules will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFITS

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there may be economic costs to persons who are required to comply with the proposed rules.

The only cost directly imposed by the proposed rules is the one-time fee of $90 required to be paid by an institution of higher education or private school along with its request for a determination under proposed §73.111. The school will then have an ongoing requirement to notify the Department of any substantial change to the program, but this should not entail a cost.

Additionally, any institution of higher education or private school offering a CTE program that does not meet the standards in the proposed rules will be required to modify the program before it will be recognized by the Department. Because the potential cost would vary depending on the program, it cannot therefore be estimated.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rules have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. However, the proposed rules fall under the exceptions for rules that are necessary to protect the health, safety, and welfare of the residents of this state, and that are necessary to implement legislation (see Government Code §2001.0045(c)(6) and (9), respectively). Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rules require an increase in fees paid to the agency. The proposed rules will require an institution of higher education or private high school offering a CTE program to request a determination from the Department, and pay the requisite fee, to ensure the program meets the standards established by the proposed rules.

5. The proposed rules create a new regulation. The proposed rules create new §73.110 and §73.111, which set out the standards for CTE programs offered throughout Texas and require certain schools offering these programs to request a determination from the Department regarding compliance.

6. The proposed rules expand an existing regulation by allowing a person who completes a CTE program to become eligible to apply for a residential wireman license.

7. The proposed rules increase the number of individuals subject to the rules' applicability. The proposed rules require certain applicants for a residential wireman electrical license to verify completion of a CTE program.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules ; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1305, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1305. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is House Bill 1391, 88th Legislature, Regular Session (2023).

§73.10.Definitions.

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.

(1) - (2) (No change.)

(3) Career and technology education program--An educational program, defined in §1302.5037(a)(1) of the Act, focused on electrical training and either:

(A) offered by a public high school under Subchapter F, Chapter 29, Education Code; or

(B) offered by a private high school or institution of higher education and determined by the department to be similar to a program described by subparagraph (A) of this paragraph.

(4) [~~(3)~~] 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.

(5) [~~(4)~~] Employer--One who employs the services of employees, 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.

(6) [~~(5)~~] Filed--A document is deemed to have been filed with the department on the date that the document has been received by the department or, if the document has been mailed to the department, the date a postmark is applied to the document by the U.S. Postal Service.

(7) [~~(6)~~] General Supervision--Exercise of oversight by a master electrician on behalf of an electrical contractor, or electrical sign contractor, or by a master sign electrician on behalf of an electrical sign contractor of performance by all classes of electrical licensees of electrical work bearing responsibility for the work's compliance with applicable codes under Texas Occupations Code, Chapter 1305.

(8) [~~(7)~~] On-Site Supervision--Exercise of supervision of electrical work or electrical sign work by a licensed individual other than an electrical apprentice. Continuous supervision of an electrical apprentice is not required, though the on-site supervising licensee is responsible for review and inspection of the electrical apprentice's work to ensure compliance with any applicable codes or standards.

(9) [~~(8)~~] Electrical Contractor--A person, or entity, licensed as an electrical contractor, that is in the business of performing "Electrical Contracting" as defined by Texas Occupations Code, §1305.002(5).

(10) [~~(9)~~] Master Electrician--An individual, licensed as a master electrician, who on behalf of an electrical contractor, electrical sign contractor, or employing governmental entity, performs "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(11) [~~(10)~~] Journeyman Electrician--An individual, licensed as a journeyman electrician, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity, while performing "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(12) [~~(11)~~] Electrical Apprentice--An individual, licensed as an apprentice who works under the on-site supervision of a master electrician, journeyman electrician, or residential wireman, on behalf of an electrical contractor or employing governmental entity performing "Electrical Work" as defined by Texas Occupations Code, §1305.002(11).

(13) [~~(12)~~] Electrical Sign Contractor--A person, or entity, licensed as an electrical sign contractor, that is in the business of performing "Electrical Sign Contracting" as defined by Texas Occupations Code, §1305.002(9).

(14) Institution of higher education--An "institution of higher education" or a "private or independent institution of higher education," as those terms are defined by §61.003, Education Code.

(15) [~~(13)~~] Master Sign Electrician--An individual, licensed as a master sign electrician, who, on behalf of an electrical sign contractor, performs "Electrical Sign Work" as defined in paragraph (20) [~~(18)~~].

(16) [~~(14)~~] Journeyman Sign Electrician--An individual, licensed as a journeyman sign electrician, who works under the general supervision of a master electrician or a master sign electrician, on behalf of an electrical sign contractor, while performing "Electrical Sign Work" as defined in paragraph (20) [~~(18)~~].

(17) [~~(15)~~] Residential Wireman--An individual, licensed as a residential wireman, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity, while performing electrical work that is limited to electrical installations in single family and multifamily dwellings not exceeding four stories, as defined by Texas Occupations Code, §1305.002(13).

(18) [~~(16)~~] Maintenance Electrician--An individual, licensed as a maintenance electrician, who works under the general supervision of a master electrician, on behalf of an electrical contractor, or employing governmental entity while performing "Electrical Maintenance Work" as defined in paragraph (19) [~~(17)~~].

(19) [~~(17)~~] Electrical Maintenance Work--The replacement, or repair of existing electrical appurtenances, apparatus, equipment, machinery, or controls used in connection with the use of electrical energy in, on, outside, or attached to a building, residence, structure, property, or premises. All replacements or repairs must be of the same rating and type as the existing installation. No improvements may be made that are necessary to comply with applicable codes under Texas Occupations Code, Chapter 1305. Electrical maintenance work does not include the installation of any new electrical appurtenances, apparatus, equipment, machinery, or controls beyond the scope of any existing electrical installation.

(20) [~~(18)~~] Electrical Sign Work--Any labor or material used in manufacturing, installing, maintaining, extending, connecting or reconnecting an electrical wiring system and its appurtenances, apparatus or equipment used in connection with signs, outline lighting, awnings, signals, light emitting diodes, and the repair of existing outdoor electric discharge lighting, including parking lot pole lighting. This also includes the installation of an electrical service integral to an isolated sign and/or outline lighting installation.

(21) [~~(19)~~] Work Involved in the Manufacture of Electrical Equipment--Work involved in the manufacture of electrical equipment includes on and off-site manufacture, commissioning, testing, calibration, coordination, troubleshooting, evaluation, repair or retrofits with components of the same ampacity, maintenance and servicing of electrical equipment within their enclosures performed by authorized employees, or authorized representatives of electrical equipment manufacturers and limited to the type of products they manufacture.

(22) [~~(20)~~] Electrical Sign Apprentice--An individual, licensed as an electrical sign apprentice who works under the on-site supervision of a master electrician, a master sign electrician, or a journeyman sign electrician, on behalf of an electrical sign contractor performing "Electrical Sign Work" as defined by this chapter.

(23) [~~(21)~~] On-the-job Training--Training or experience gained under the supervision of an appropriate licensee, as prescribed by Texas Occupations Code Chapter 1305, while performing electrical work as defined by Texas Occupations Code, §1305.002(11).

(24) [~~(22)~~] Residential Appliance Installer--An individual, licensed as a residential appliance installer, who on behalf of a residential appliance installation contractor, performs electrical work that is limited to residential appliance installation including residential pool-related electrical installation and maintenance as defined by Texas Occupations Code, §1305.002(12-b).

(25) [~~(23)~~] Residential Appliance Installation Contractor--A person or entity licensed as a residential appliance installation contractor, that is in the business of residential appliance installation including pool-related electrical installation and maintenance as defined by Texas Occupations Code §1305.002(12-d).

(26) [~~(24)~~] Residential Appliance--Electrical equipment that performs a specific function, and is installed as a unit in a dwelling by direct connection to an existing electrical circuit, such as water heaters, kitchen appliances, or pool-related electrical device. The term does not include general use equipment such as service equipment, other electrical power production sources, or branch circuit overcurrent protection devices not installed in the listed appliance or listed pool-related electrical device.

(27) [~~(25)~~] Offer to perform--To make a written or oral proposal, to contract in writing or orally to perform electrical work or electrical sign work, to advertise in any form through any medium that a person or business entity is an electrical contractor, electrical sign contractor, or residential appliance installation contractor or that implies in any way that a person or business entity is available to contract for or perform electrical work, electrical sign work, or residential appliance installation work.

(28) [~~(26)~~] Electro Mechanical Integrity--The condition of an electrical product, electrical system, or electrical equipment installed in accordance with its intended purpose and according to standards at least as strict as the standards provided by the National Electrical Code, the manufacturer's specifications, any listing or labeling on the product, and all other applicable codes or ordinances.

(29) [~~(27)~~] Journeyman Lineman--An individual who engages in electrical work involving the maintenance and operation of equipment associated with the transmission and distribution of electricity from the electricity's original source to a substation for further distribution.

(30) [~~(28)~~] Journeyman Industrial Electrician--An individual who engages in electrical work exclusively at a business that operates a chemical plant, petrochemical plant, refinery, natural gas plant, natural gas treating plant, pipeline, or oil and gas exploration and production operation.

§73.26.Documentation of Required On-The-Job Training.

(a) - (c) (No change.)

(d) An applicant for a residential wireman license who has completed a career and technology program must verify completion by submitting verification in a form acceptable to the department.

§73.80.Fees.

(a) - (e) (No change.)

(f) The fee for a determination under §73.111 is $90.

(g) The department will waive the license renewal fee for a master electrician, journeyman electrician, or residential wireman who provides proof, in a manner prescribed by the department, of having served as an instructor of a course within a career and technology education program for at least one academic semester.

§73.110.Career and Technology Education Program Requirements.

(a) Texas Occupations Code Section §1305.157 provides a pathway to the residential wireman license for persons who complete a career and technology education program. Pursuant to §1305.1575, the department is required to:

(1) establish standards for the essential knowledge and skills of career and technology education programs offered in Texas public high schools; and

(2) determine on a case-by-case basis whether educational programs offered by private high schools and institutions of higher education are similar to career and technology education programs offered in Texas public high schools.

(b) A career and technology education program must be designed to ensure that students obtain the essential knowledge and skills set out in the following cross-referenced rules of the Texas Education Agency. The minimum number of academic semesters required for each course is also noted. Students enrolled in courses identified in paragraphs (2) and (3) below must be provided hands-on practical instruction, including interactive lab work, for at least 80 percent of total classroom time. A career and technology education program may not allow students to obtain credit by examination.

(1) Principles of Construction; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.43; one credit.

(2) Electrical Technology I; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.57; one credit.

(3) Electrical Technology II; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.58; two credits.

(4) Practicum in Construction Technology and Extended Practicum in Construction Technology; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §§130.64 and 130.69; four total credits.

(A) At least 80 percent of a student's time in a practicum must be spent outside of the classroom and working under the supervision of a department-licensed master electrician, on behalf of a department-licensed electrical contractor.

(B) A high school or institution of higher education offering a career and technology education program under this section must implement procedures allowing a student to earn course credit for work performed outside of the classroom under the supervision of a department-licensed master electrician and on behalf of a department-licensed electrical contractor.

(c) A career and technology education program will not be recognized by the department unless it is instructed by a department-licensed master electrician, journeyman electrician, or residential wireman.

(d) A career and technology education program offered by an institution of higher education may not be more stringent than a program offered by a public high school.

(e) The department will recognize an educational program offered by a private high school or institution of higher education as a "career and technology education program" if the department determines that the educational program substantially complies with the requirements of this section.

(f) Hours spent completing a program described by this section may not be credited toward any on-the-job training required to apply for another type of license under this chapter.

§73.111.Compliance with Career and Technology Education Program Requirements.

(a) A private high school or institution of higher education that implements an educational program under §73.110 must request a determination whether the program substantially complies with that section's requirements by:

(1) submitting the request in a manner prescribed by the department;

(2) providing copies of course materials requested by the department;

(3) providing the names and license numbers of all master electricians, journeyman electricians, or residential wiremen who will be supervising or instructing students; and

(4) paying the applicable fee.

(b) After receiving a positive determination under subsection (a), a private high school or institution of higher education must inform the department, in a manner prescribed by the department, of any substantial change to the program.

(c) Upon a finding that an educational program does not substantially comply with §73.110, the department may rescind its determination.

(d) A determination or decision under this section is not a contested case under Texas Government Code, Chapter 2001, and may not be appealed.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 19, 2024.

TRD-202401665

Doug Jennings

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: June 2, 2024

For further information, please call: (512) 475-4879

CHAPTER 75. AIR CONDITIONING AND REFRIGERATION

16 TAC §§75.10, 75.25, 75.30, 75.70, 75.80, 75.120, 75.124, 75.125

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 75, §§75.10, 75.25, 75.30, 75.70, 75.80, and 75.120, and new rules at 16 TAC, Chapter 75, §75.124 and §75.125, regarding the Air Conditioning and Refrigeration Contractors program. These proposed changes are referred to as the "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 75, implement Texas Occupations Code, Chapter 1302, Air Conditioning and Refrigeration Contractors.

The proposed rules implement House Bill (HB) 1859, 88th Legislature, Regular Session (2023). HB 1859 provides a new pathway to an air conditioning and refrigeration technician certification for students who complete a focused career and technology education (CTE) program (also known as a "career and technical education" program) offered by a Texas high school or institution of higher education. The bill requires the Department to establish standards by rule for the essential knowledge and skills used to build these programs.

Members of the Air Conditioning and Refrigeration Contractors Advisory Board, along with Department staff and representatives from Texas State Technical College, identified an existing series of rules approved by the State Board of Education (SBOE) setting out the essential knowledge and skills for a series of courses in air conditioning and refrigeration technology. After spending several meetings reviewing the educational requirements of these courses and obtaining valuable insight from Texas Education Agency (TEA) staff regarding the time and practical requirements of each, the group decided upon four SBOE-approved courses that provide the essential classroom and practical training needed for a student to become competent as a certified technician. These courses are identified in §75.124 of the proposed rules.

The proposed rules recognize that while a student must complete certain coursework in a classroom setting, hands-on instruction is of paramount importance in the learning experience. Thus, at least 80% of classroom time in two courses - Heating, Ventilation, and Air Conditioning Technology I and II - must be spent on hands-on or lab work. Additionally, three credits of course credit in a "practicum" setting are required. Students will earn these credits by working outside of the classroom under the supervision of a licensed air conditioning and refrigeration contractor. The proposed rules also require schools to provide a student with course credit for appropriate work performed outside of the program, such as through an after-school or summer job.

HB 1859 also requires the Department to verify that CTE programs offered by institutions of higher education or private high schools are similar to those offered by public high schools. Section 75.125 thus requires institutions of higher education or private high schools to request a determination from the Department that their programs meet the standards set by §75.124.

Lastly, several other changes required by HB 1859 are implemented in these proposed rules:

-Lowering the minimum age of a registered technician to 16 years of age (from 18);

-Requiring in-person supervision of a registered technician under the age of 18;

-For a person seeking to become a certified technician, removing the requirement that the certification training program has to have been completed within the preceding four years;

-Waiving license renewal fees for instructors of CTE programs; and

-Providing instructors of these programs with continuing education credits.

Advisory Board Recommendations

The proposed rules were presented to and discussed by the Air Conditioning and Refrigeration Contractors Advisory Board on March 27, 2024. The Advisory Board recommended adding language to §75.124(b) to state that CTE programs may not offer course credit by examination, to add a reference to the Extended Practicum in Construction Technology course to §75.124(b)(4), and to make any necessary corrections. With these changes, the Advisory Board voted and recommended that the proposed rules be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY

The proposed rules amend §75.10 to add and clarify definitions. The definition for "career and technology education program" is a necessary inclusion to implement HB 1859 and distinguish it from the "certification training program" created by HB 3029, 85th Regular Session (2017). The proposed rules amend the definition of "certification training program" to make this distinction clearer. The proposed rules also add definitions of "institution of higher education" and "in-person supervision" to §75.10. Both are necessary to implement HB 1859.

The proposed rules amend §75.25 to add subsection (g), which allows an air conditioning and refrigeration contractor to receive up to two hours of continuing education credit per academic semester for instructing a CTE program.

The proposed rules amend §75.30(a)(6) to reword the exemption applicable to students enrolled in CTE programs.

The proposed rules add §75.70(a)(12), which requires an air conditioning and refrigeration contractor to provide in-person supervision, either personally or via a certified technician, to a person under the age of 18 who is acting or offering to act as an air conditioning and refrigeration technician.

The proposed rules amend §75.80 to add two subsections. New §75.80(e) sets the cost of a determination under new §75.125 at $90. New §75.80(f) provides that the Department will waive the renewal fee for an air conditioning and refrigeration contractor or certified technician who instructs a CTE program. Existing §75.80(e) has been moved to new §75.80(g).

The proposed rules amend §75.120(a)(1) to clarify that a person who completes a CTE program is eligible to apply for an air conditioning and refrigeration technician certification. Additionally, the proposed rules amend §75.120(a)(1)(B) (formerly §75.120(a)(1)(A)) to remove unnecessary language and remove the requirement that a certification training program have been completed within the past 48 months.

The proposed rules create new §75.124, which outlines the requirements governing CTE programs. Subsection (a) is simply explanatory and states the Department's obligations regarding CTE programs under HB 1859. Subsection (b) is the centerpiece of new §75.124. This subsection states that CTE programs must be designed to ensure that students obtain the essential skills and knowledge outlined in several cross-referenced rules of the Texas Education Agency (TEA). Subsection (b)(1) - (4) provides the cross-references to those rules and specify the number of academic credits required to be dedicated to each set of essential skills and knowledge.

Subsection (b) also requires schools that offer CTE courses to provide a substantial amount of practical instruction. This subsection mandates that hands-on instruction, including lab work, be provided to students for at least 80% of total time spent in the classroom covering topics in the Heating, Ventilation, and Air Conditioning I and II courses. This requirement is vital to ensure that students have ample training on safety, tools, methods, and equipment under proper supervision before performing work outside of the classroom. Subsection (b) further ensures that students receive adequate instruction by prohibiting a CTE program from granting students course credit by examination.

Subsection (b)(4) requires a CTE program to include three credits of "practicum" experience, in addition to the classroom portions required by subsection (b)(1) - (3). In a practicum setting, students will work - with or without pay, depending on the arrangement - outside of the classroom under the supervision of a licensed air conditioning and refrigeration contractor. Recognizing that some part of a student's time in a practicum will be dedicated to consultation with school administrators, proposed §75.124(b)(4)(A) requires that at least 80% of practicum time be spent outside of the classroom and working under the supervision of a licensed air conditioning and refrigeration contractor.

Because a student's academic schedule may not have room for three hours in a practicum setting, §75.124(b)(4)(B) includes HB 1859's requirement that a school provide course credit for appropriate work performed by the student outside of the program. This provision states that a school must implement procedures to ensure that students who work outside of the program - after school hours, on weekends, or as a summer job, for example - are able to receive course credit toward the practicum component for that work.

Subsections (c) and (d) of proposed §75.124 simply implement HB 1859's requirements that CTE courses be instructed by department-licensed air conditioning and refrigeration contractors or certified technicians, and that CTE courses offered by an institution of higher education be no more stringent than a course offered by a public high school. Lastly, subsection (e) states that the Department will recognize a CTE course offered by an institution of higher education or private high school if it substantially complies with §75.124.

Finally, proposed new §75.125 sets out the procedures for an institution of higher education or private high school to request a determination from the Department that its CTE program meets the standards of §75.124. Subsection (a) requires these schools to request a determination and specifies the items to be included in the request. Once a school has received a determination of substantial compliance, subsection (b) simply requires schools to notify the Department of major changes to its program. Rounding out the proposed rules, subsections (c) and (d) specify that the Department may rescind its determination if a program is not in compliance with §75.124, and that such a determination is not a contested case under the Administrative Procedure Act, Texas Government Code, Chapter 2001.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Mr. Couvillon has also determined that there could be a potential gain to state revenues for each year of the first five years the proposed rules are in effect as a result of enforcing or administering the proposed rules. The proposed rules require an institution of higher education or private high school to request a determination from the Department regarding its program's compliance with proposed new §75.124. The fee for requesting the determination will be $90 (see the proposed amendment to §75.80, above). As it is unknown how many schools will implement CTE programs and therefore request these determinations, the potential gain to revenues cannot currently be estimated.

There could also be a potential gain to state revenues due to an increase in the number of applicants for an air conditioning and refrigeration technician registration or certification. Again, because it is unknown how many new applications the Department will receive, the potential gain to revenues cannot currently be estimated.

LOCAL EMPLOYMENT IMPACT STATEMENT

PUBLIC BENEFITS

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, the public will benefit from having access to an increased number of competent and experienced air conditioning and refrigeration professionals. The proposed rules will also ensure that students enrolled in CTE programs receive consistent and practical instruction, thus protecting public health and safety. In addition, the waiver of license renewal fees and reduction of continuing education hours will serve as an incentive to licensees to participate in and guide CTE programs. Lastly, requiring licensees to supervise registered technicians under the age of 18 in person will provide younger technicians with invaluable feedback and instruction before being sent out on the job on their own as adults.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

The only cost directly imposed by the proposed rules is the one-time fee of $90 required to be paid by an institution of higher education or private school along with its request for a determination under proposed §75.125. The school will then have an ongoing requirement to notify the Department of any substantial change to the program, but this should not entail a cost.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

GOVERNMENT GROWTH IMPACT STATEMENT

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

5. The proposed rules create a new regulation. The proposed rules create new §§75.124 and 75.125, which set out the standards for CTE programs offered throughout Texas and require certain schools offering these programs to request a determination from the Department regarding compliance.

6. The proposed rules expand an existing regulation by allowing a person who completes a CTE program to become eligible to apply for a technician certification.

7. The proposed rules increase the number of individuals subject to the rules' applicability. The proposed rules require licensees to provide in-person supervision at all times to a person who is younger than 18 years of age and is acting or offering to act as a registered technician.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

PUBLIC COMMENTS

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1302, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1302. No other statutes, articles, or codes are affected by the proposed rules.

The legislation that enacted the statutory authority under which the proposed rules are proposed to be adopted is House Bill 1859, 88th Legislature, Regular Session (2023).

§75.10.Definitions.

The following words and terms have the following meanings as used in this chapter:

(1) - (9) (No change.)

(10) Career and technology education program--An educational program, defined in §1302.5037(a)(1) of the Act, focused on air conditioning and refrigeration and:

(A) offered by a public high school under Subchapter F, Chapter 29, Education Code; or

(B) offered by a private high school or institution of higher education and determined by the department to be similar to a program described by subparagraph (A) of this paragraph.

(11) [~~(10)~~] Certification training program--A program of education and training, defined in §1302.002(5-c)(B) of the Act and further addressed in §75.122, accepted or approved by the department and consisting of at least 2,000 hours of a combination of classroom instruction and supervised practical experience.

(12) [~~(11)~~] Certification training program provider--A person providing or offering to provide a certification training program.

(13) [~~(12)~~] Certified technician--A person granted an air conditioning and refrigeration technician certification by the department pursuant to §75.120, and §1302.5036 and §1302.5055 of the Act.

(14) [~~(13)~~] Certified technician (legacy)--A person granted a certified technician designation by the department pursuant to §75.28, and §1302.508 of the Act, as continued by House Bill 3029 §18, 85th Leg., R.S. (2017).

(15) [~~(14)~~] Cheating--Attempting to obtain, obtaining, providing, or using answers to examination questions by deceit, fraud, dishonesty, or deception.

(16) [~~(15)~~] Cryogenics--Refrigeration that deals with producing temperatures ranging from:

(A) - (D) (No change.)

(17) [~~(16)~~] Department--The Texas Department of Licensing and Regulation.

(18) [~~(17)~~] 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.

(19) [~~(18)~~] Direct supervision--Directing and verifying the design, installation, construction, maintenance, service, repair, alteration, or modification of an environmental air conditioning, refrigeration, process cooling, or process heating product or equipment to assure mechanical integrity. Verification may include, but is not limited to:

(A) - (C) (No change.)

(20) [~~(19)~~] Employee--An individual who performs tasks assigned by an employer, and who is subject to the employer's control in all aspects of job performance, except that a licensed air conditioning and refrigeration contractor remains responsible for all air conditioning work he or she performs. An employee's wages are subject to deduction of federal income taxes and social security payments. 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 an employee's status for the purpose of this chapter.

(21) [~~(20)~~] Executive Director--The executive director of the department.

(22) [~~(21)~~] Full time employee--An employee who is present on the job either 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.

(23) In-person supervision--Supervision of air conditioning and refrigeration maintenance work provided while physically present at the same location as the person being supervised.

(24) Institution of higher education--An "institution of higher education" or a "private or independent institution of higher education," as those terms are defined by §61.003, Education Code.

(25) [~~(22)~~] Licensee--An individual holding a contractor's license of the class and endorsement appropriate to the work performed under the Act and this chapter.

(26) [~~(23)~~] Offering to perform--Making a written or oral proposal, contracting in writing or orally to perform air conditioning and refrigeration work, or advertising in any form through any medium that a person or business entity is an air conditioning and refrigeration contractor, or that implies in any way that a person or business entity is available to contract for or perform air conditioning and refrigeration work.

(27) [~~(24)~~] Permanent office--Any location, which must be identified by a street address, or other data identifying a rural location, from which a person or business entity conducts the business of an air conditioning and refrigeration contracting company. A location not open to the public, or not located within the state, may serve as a permanent office so long as the department and consumers have access to the licensee required by §1302.252 of the Act to be employed in each permanent office.

(28) [~~(25)~~] Portable--Able to be easily transported and readily used as an entire system, without need for dismantling or assembly in whole or in part, or addition of parts, components, or accessories.

(29) [~~(26)~~] 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.

(30) [~~(27)~~] Proper installation, and service--Installing, servicing, repairing, and maintaining air conditioning and refrigeration equipment in accordance with:

(A) - (D) (No change.)

(31) [~~(28)~~] Registrant--A person who is registered with the department as a technician under the Act and this chapter.

(32) [~~(29)~~] 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.

(33) [~~(30)~~] Self-contained--Constructed so that all required parts, components, and accessories of the air conditioning or heating system are included within the same enclosure.

(34) [~~(31)~~] System balancing--A process of adjusting, regulating, or proportioning air distribution equipment or any activity beyond system testing.

(35) [~~(32)~~] System testing--Assessing or measuring the performance of the air distribution equipment or air conditioning and refrigeration duct system through equipment that can be attached externally to the system. Testing does not include opening, adjusting, or balancing equipment or ducts or any activity beyond assessing the system through the use of external equipment. Testing does not include testing fire and smoke dampers.

(36) [~~(33)~~] Total replacement of a system--Simultaneous replacement of the condensing unit, the evaporator coil, the furnace, if applicable, and the air handling unit, or replacement of a package system.

§75.25.Continuing Education.

(a) - (f) (No change.)

(g) A licensee who provides proof, in a manner prescribed by the department, of having served as an instructor of a course within a career and technology education program may receive two hours of continuing education for each completed academic semester of instruction. A maximum of two hours of continuing education credit may be claimed by the licensee per academic semester.

§75.30.Exemptions.

(a) The Act and this chapter do not apply to those persons exempt under Occupations Code, Chapter 1302, with the following clarifications:

(1) - (5) (No change.)

(6) a student enrolled in a certification training program or career and technology education program who acts or offers to act as an air conditioning and refrigeration technician solely as part of the program and is enrolled at a public high school or an institution of higher education [~~is either younger than 18 years of age or is enrolled at a secondary school~~].

(b) (No change.)

§75.70.Responsibilities of the Contractor/Licensee.

(a) The licensee must:

(1) - (10) (No change.)

(11) only use licensed contractors, registered technicians, certified technicians, or students meeting the requirements of §75.30(a)(6) to perform maintenance work; [~~and~~]

(12) at all times provide in-person supervision, either directly or via a certified technician, to a person who is younger than 18 years of age and acting or offering to act on behalf of the licensee as an air conditioning and refrigeration technician; and

(13) [~~(12)~~] upon request from the applicant or the department, verify information within the licensee's knowledge regarding the practical experience of an applicant claiming to have worked under the supervision of the licensee[,] on a form designated by the department. The licensee must provide information requested by the department within fifteen (15) calendar days of the request. The verified information must include, but is not limited to:

(A) - (C) (No change.)

(b) - (j) (No change.)

§75.80.Fees.

(a) - (d) (No change.)

~~[(e) Late renewal fees for licenses and registrations issued under this chapter are provided under §60.83 of this title (relating to Late Renewal Fees).]~~

(e) The fee for a determination under §75.125 is $90.

(f) The department will waive the renewal fee for an air conditioning and refrigeration contractor or certified technician who provides proof, in a manner prescribed by the department, of having served as an instructor of a course within a career and technology education program for at least one academic semester.

(g) Late renewal fees for licenses and registrations issued under this chapter are provided under §60.83.

§75.120.Certified Technician--Application and Eligibility Requirements.

(a) To obtain an air conditioning and refrigeration technician certification, an applicant must:

(1) - (2) (No change.)

(3) at the time of application, have either:

(A) completed a career and technology education program;

(B) [~~(A)~~] completed a [~~department-accepted or approved~~] certification training program [~~within the previous 48 months~~]; or

(i) - (ii) (No change.)

(4) - (6) (No change.)

(b) - (d) (No change.)

§75.124.Career and Technology Education Program Requirements.

(a) Sections 1302.5036 and 1302.5037 of the Act provide a pathway to an air conditioning and refrigeration technician certification for persons who complete a career and technology education program. Pursuant to §1302.5037, the department is required to:

(1) establish standards for the essential knowledge and skills of career and technology education programs offered in Texas public high schools; and

(b) A career and technology education program must be designed to ensure that students obtain the essential knowledge and skills set out in the following cross-referenced rules of the Texas Education Agency. The minimum number of academic credits required for each course is also noted. Students enrolled in courses identified in paragraphs (2) and (3) below must be provided hands-on practical instruction, including interactive lab work, for at least 80 percent of total classroom time. A career and technology education program may not allow students to obtain credit by examination.

(1) Principles of Construction; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.43; one credit.

(2) Heating, Ventilation, and Air Conditioning and Refrigeration Technology I; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.59; one credit.

(3) Heating, Ventilation, and Air Conditioning and Refrigeration Technology II; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.60; two credits. Instruction regarding sheet metal and fiberglass ductwork, described in §130.60(c)(14) and (15), is optional.

(4) Practicum in Construction Technology and Extended Practicum in Construction Technology; Texas Administrative Code Title 19, Part 2, Chapter 130, Subchapter B, §130.64 and §130.69; three total credits.

(A) At least 80 percent of a student's time in a practicum must be spent outside of the classroom and working under the supervision of a department-licensed air conditioning and refrigeration contractor.

(B) A high school or institution of higher education offering a career and technology education program under this section must implement procedures allowing a student to earn course credit for work performed outside of the classroom under the supervision of department-licensed air conditioning and refrigeration contractor.

(1) a department-licensed air conditioning and refrigeration contractor; or

(2) a certified technician whose certification was issued on or after September 1, 2018.

(d) A career and technology education program offered by an institution of higher education may not be more stringent than a program offered by a public high school.

(e) The department will recognize an educational program offered by a private high school or institution of higher education as a "career and technology education program" for purposes of §75.120 if the department determines that the educational program substantially complies with the requirements of this section.

§75.125.Request for Determination of Compliance with §75.124.

(a) A private high school or institution of higher education that implements an educational program under §75.124 must request a determination whether the program substantially complies with that section's requirements by: