SB101INTRODUCED Page 0 SB101 QPDK454-1 By Senators Kelley, Elliott, Kitchens, Sessions, Carnley, Shelnutt, Orr, Figures, Beasley, Bell, Jones RFD: Fiscal Responsibility and Economic Development First Read: 14-Feb-24 1 2 3 4 5 6 QPDK454-1 02/06/2024 MAP (L)ma 2024-513 Page 1 First Read: 14-Feb-24 SYNOPSIS: Under existing law, the Board of Heating, Air Conditioning, and Refrigeration Contractors certifies individuals to install, service, or repair heating, air conditioning, and refrigeration systems. This bill would further provide for the Board of Heating, Air Conditioning, and Refrigeration Contractors. This bill would remove provisions related to apprentices. This bill would allow an increase in the maximum amount of a performance bond. This bill would allow contractors to perform certain electrical work incidental to the installation, service, or repair of residential heating and air conditioning systems. This bill would also make nonsubstantive, technical revisions to update existing code language to current style. A BILL TO BE ENTITLED AN ACT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SB101 INTRODUCED Page 2 Relating to the Board of Heating, Air Conditioning, and Refrigeration Contractors; to amend Sections 34-31-18, 34-31-24, 34-31-25, 34-31-28, 34-31-30, 34-31-32, and 34-31-34, Code of Alabama 1975, to further provide for the Board of Heating, Air Conditioning, and Refrigeration Contractors; to remove provisions governing apprentices; to allow an increase in the maximum amount of a performance bond; to allow contractors to perform electrical work incidental to the installation, service, or repair of residential heating and air conditioning systems; and to make nonsubstantive, technical revisions to update existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 34-31-18, 34-31-24, 34-31-25, 34-31-28, 34-31-30, 34-31-32, and 34-31-34, Code of Alabama 1975, are amended to read as follows: "§34-31-18 For the purposes of this chapter, the following terms shall have the following meanings herein ascribed to them unless the context clearly indicates otherwise : (1) ADMINISTRATIVE PROCEDURE LAWACT. Sections 41-22-1 through 41-22-27, Chapter 22 of Title 41 and any subsequent amendment or supplement thereto, and any rules or regulations promulgated thereto adopted thereunder . (2) APPRENTICE. A person other than a certified heating, air conditioning, or refrigeration contractor, who is engaged in learning and assisting in the installation, service, or repair of a heating, air conditioning, or 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 SB101 INTRODUCED Page 3 service, or repair of a heating, air conditioning, or refrigeration system and working under the direct supervision of a certified heating, air conditioning, or refrigeration contractor, and who has successfully fulfilled the voluntary registration requirements of the board and has been duly registered by the board as such for the current year. (3)(2) BOARD. The State Board of Heating, Air Conditioning, and Refrigeration Contractors , herein established. (4)(3) CERTIFICATION or LICENSE. The process of testing to determine the knowledge and skill of an individual with respect to heating, air conditioning, and refrigeration. This term is used herein interchangeably with the term "license. " (5)(4) CERTIFIED HEATING AND AIR CONDITIONING CONTRACTOR. Any and all legal entities person engaged in the business of heating and air conditioning contracting and installation or service and repair. (6)(5) CERTIFIED REFRIGERATION CONTRACTOR. Any and all legal entities person engaged in the business of refrigeration contracting and servicing, installation, and repair. (7)(6) DUCT AIR TIGHTNESS TESTING CONTRACTOR. Any individual who engages person engaged in the practice of testing and verifying duct air tightness in conjunction with the installation, service, or repair of a heating and air conditioning system. (8)(7) HEATING AND AIR CONDITIONING SYSTEMS OR SYSTEM. A heating and/or or cooling apparatus consisting of an air heating and/or or cooling fixture from pipes, plenums, or blowers, including any accessory and equipment installed in 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 SB101 INTRODUCED Page 4 blowers, including any accessory and equipment installed in connection herewith within the system. ; specifically excluding The term does not include window units, automotive, or farm implement type heating orand/or air conditioning equipment. (9)(8) INSTALLATION. The act of setting up or installing a heating and air conditioning system or refrigeration system for operation and use. (9) PERSON. Includes an individual, firm, partnership, or corporation. (10) REFRIGERATION. The use of mechanical or absorption equipment to control temperature, humidity, or both, in order to satisfy the intended use of a specific space, other than for human comfort. (11) REFRIGERATION TRADE OR BUSINESS. Includes any and all Any individual and legal entities entity engaged in the installation, maintenance, servicing, and repairing of refrigerating machinery, equipment, devices, and components. (12) REGULARLY EMPLOYED PERSON. A personAn individual who is meets all of the following conditions: a. Is an actual employee of the business, not an independent contractor. The person must work b. Works an average of 30 or more hours per week for the heating, air conditioning, or refrigeration business. c. Is A regularly employed person must not be paid as an independent contractor . d.and must receive Receives a Form W-2, Wage and Tax Statement, for all earnings. (13) RESPONSIBLE CHARGE. The direction of projects involving the installation or service and repair of heating, 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 SB101 INTRODUCED Page 5 involving the installation or service and repair of heating, air conditioning, and refrigeration systems requiring initiation, professional skills, technical knowledge, and independent judgment. (14) SERVICE AND REPAIR. The act of maintaining for operation a heating, air conditioning, or refrigeration system which that has previously been installed , including parts replacement within a piece of equipment." "§34-31-24 (a)(1) No individual, partnership, or corporation shall person may advertise, solicit, bid, obtain permitpermits, do business, or perform the function of a certified contractor unless the person or persons in responsible charge, as defined in Section 34-31-18, are is a certified contractorscontractor. (2) Every contractor licensed under this chapter shall display the contractor's certification number and the company name on any and all documentation, forms of advertising, and on all service and installation vehicles used in conjunction with heating, air conditioning, and refrigeration contracting. (3) A contractor licensed under this chapter may not permit the use of his or her license by any other personsperson. (4) No official charged with the duty of issuing who issues licenses to any individual, partnership, or corporation person to operate a business as a certified contractor shall may issue sucha license unless there is presented for inspection a certificate of qualification as provided for herein issued by the board to the individual or to some the person in responsible charge with the partnership or 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 SB101 INTRODUCED Page 6 person in responsible charge with the partnership or corporation. (b) The following requirements apply to the practice of testing or verifying duct air tightness: (1) Any individual who engages in the practice of testing and verifying duct air tightness is required to register with the board. Such The individuals shall not be are not required to become a certified heating and air conditioning contractor, but shall complete training as set forth by this subsection. The board shall maintain a list of individuals who are registered duct envelope testing contractors in the practice of testing and verifying duct air tightness and leakage. The board may establish fees to be paid by registrants. All fees must accompany the application for registration and are nonrefundable. All registrations must be renewed by December 31 of each year beginning in 2016 . The board may establish a late fee for those individuals failing to renew by December 31. (2) Any board certified heating and air conditioning contractor, or home builder licensed by the Alabama Home Builders Licensure Board, seeking to register as a duct tightness tester for the purposes of testing ducts on his or her own project or on a third party basis for the general public, must successfully complete the Residential Energy Services Network Home Energy Rating Systems (HERS) Rater training, the Building Performance Institute Building Analyst (BPI) training, or the Home Builders Association of Alabama Qualified Credentialed Air Tightness Verifier (QCATV) training. Any applicant that is not a board certified 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 SB101 INTRODUCED Page 7 training. Any applicant that is not a board certified contractor or a licensed home builder seeking to register as a duct tightness tester for the purposes of testing duct work on a third party basis for the general public, must successfully complete the Residential Energy Services Network Home Energy Rating System (HERS) Rater training or the Building Performance Institute Building Analyst (BPI) training. Each applicant must submit verification that he or she has successfully completed the training required by at least one of the above listed programs to the board prior to receiving the registration in order to be added to the list of registered individuals. Each registrant must submit proof of completion, approved by the Home Builders Association of Alabama, prior to annual re-registration by the board. (3) The board may discipline any registrant who fails to conduct air tightness testing to the standards set forth by the board. Discipline for registrants may include any and all penalties authorized by this chapter." "§34-31-25 (a)(1) For the purpose of defraying the expense in carrying out the provisions of this chapter, the board may fix fees to be paid for the issuance, reissuance, and replacement of certificates, and for any other service provided by the board, but in no event shall the charges fixed by the board exceed two hundred fifty dollars ($250). The inactive fees may be waived for building officials or inspectors, as defined by the International Code Council. All fees fixed by the board must accompany the application, and no part of the fees shall be refunded. The fees shall be received by the board and held 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 SB101 INTRODUCED Page 8 be refunded. The fees shall be received by the board and held solely for the purpose of paying the expense of carrying out the provisions of this chapter. (2) Renewal fees shall be established by the board as to insure ensure adequate funding to support the board. Fees shall not exceed two hundred fifty dollars ($250) per year. The amount of these fees shall be established by the board on an annual basis to provide adequate funding to support the board and to pay the expenses incurred for applications, examinations, and/or renewals of licenses. (b) Fees for apprentice registration and annual renewal fees shall not exceed fifty dollars ($50). (c)(b) All penalties collected by the board shall be used in the same manner and for the same purpose as fees. (d)(c) Fees for Duct Envelope Testing Contractors application and annual renewal shall not exceed one hundred dollars ($100)." "§34-31-28 (a) All prospective certified contractors in this state desiringseeking to qualify in accordance with the provisions of this chapter shall be required to stand for a written examination before the board. Any applicant failing to pass his or her first examination for a certificate shall be entitled tomay take any subsequent examination, either written or, upon request of the applicant, a practical examination which is equivalent to the written examination, to be held within six months from the date of his or her first or latest unsuccessful examination. (b) The board shall register every person who may apply 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 SB101 INTRODUCED Page 9 (b) The board shall register every person who may apply for an apprentice heating, air conditioning, or refrigeration registration certificate upon forms provided by the board and upon payment of all prescribed fees. (c)(b) The board shall examine the character, fitness, and qualifications of every personindividual who applies for a certified heating, air conditioning, or refrigeration contractor license upon forms prescribed by the board and upon payment of all prescribed fees. (d)(c) An applicant for examination for a heating, air conditioning, or refrigeration certified contractor license shall be eligible to stand for the examination if the applicant has held an apprentice registration, issued by this board, for two or more calendar years; or has completed 3,000 hours of coursework orwork experience, as defined by the board;, or is a graduate of an approved heating, air conditioning, or refrigeration curriculum. (e) All legal entities engaged in the refrigeration business for a period of two years prior to May 13, 2009, may apply to the board for a certified refrigeration contractor license without standing for a written examination. The applicant shall provide evidence of such experience to the board as promulgated in the rules of the board. An applicant who does not apply for such certification by December 31, 2011, must stand for the written examination. (f)(d) Counties, municipalities, or other local entities are hereby prohibited from requiring any further local testing or satisfaction of other requirements ofby certified contractors, subject to the payment of any 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 SB101 INTRODUCED Page 10 certified contractors, subject to the payment of any applicable local privilege, license, or business fees or charges. (g)(e)PersonsIndividuals licensed by the Alabama Liquefied Petroleum Gas Board are exempt from this chapter pertaining to heating, air conditioning, and refrigeration when: (1) Engaged in the installation, repair, or replacement of a liquefied petroleum gas appliance so long as the appliance is not connected to a refrigeration system, except provided that such persons the individuals may also engage in the replacement or repair of a liquefied petroleum gas central heating unit when it is combined with an air conditioning unit. (2) Engaged in the installation of a venting system required for a vented-type liquefied petroleum gas appliance. (h)(f) This chapter does not apply to any of the following: (1) An authorized employee of the United States, the State of Alabama this state, or any municipality, county, or other political subdivision, if the employee does not hold himself or herself out for hire or otherwise engage in contracting except in accordance with his or her employment. (2) Any mobile home or manufactured structure that is installed, inspected, or regulated by the Alabama Manufactured Housing Commission; however, the repair, servicing of a heating and air conditioning system, or the installation of a new heating and air conditioning system in a previously inspected manufactured structure is subject to this chapter. 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 SB101 INTRODUCED Page 11 inspected manufactured structure is subject to this chapter. (3) PersonsIndividuals performing work on motor vehicles, residential refrigerators, or ice machines. (4) Household appliances. (5) Farm equipment. (6) Poultry operations whether engaged in hatching, primary processing, or further processing of chicken, turkey, or other fowl. (g) A contractor, licensed pursuant to this chapter for the installation, service, or repair of residential heating and air conditioning systems, is permitted to install all electrical connections required to energize the equipment being installed, serviced, or repaired, including dedicated electrical wiring from the electrical panel to the unit, and shall not be subject to the requirements of Chapter 36 of Title 34, relating to electrical contractors, for the conduct of the work." "§34-31-30 The board may require a performance bond in the amount of fifteen thousand dollars ($15,000) not to exceed twenty-five thousand dollars ($25,000) per year for all active certified contractors. There shall be no discrimination between contractors similarly situated, and each classification of regulated contractors for bonding purposes must be reasonable in light ofconsidering the purpose of the bond." "§34-31-32 (a) Except as provided in Section 13A-9-111.1, any personindividual engaged in business as a certified contractor or performing the functions of a certified contractor in 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 SB101 INTRODUCED Page 12 or performing the functions of a certified contractor in violation of this chapter shall be guilty of a Class A misdemeanor, as defined by the state criminal code . (b) The board may impose late penalties on those certified contractors who fail to renew certificates by December 31 of each year. The board may also remove the certification from any certified personindividual who fails to renew his or her certificate by the first day of March and require the person individual to apply for a new certificate. Furthermore, the board may remove, revoke, or suspend the certification from any certified contractor who provides substandard or dangerous service, repair, or installation, or who otherwise violates this chapter, and may require such person to apply for a new certification. The board may also require the successful re-testing of any such previously certified personindividual who applies for a new certification. (c) The board may reprimand, in writing, any certified contractor who provides substandard or dangerous service, repair, or installation, or who otherwise violates this chapter. (d) The board may remove, revoke, or suspend the certification of any certified contractor who provides substandard or dangerous service, repair, or installation, or who otherwise violates this chapter, and may require any previously certified individual to apply for a new certification. (d)(e) The board may levy and collect administrative fines for serious violations of this chapter or the rules of 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 SB101 INTRODUCED Page 13 fines for serious violations of this chapter or the rules of the board of not more than two thousand dollars ($2,000) for each violation. (e)(f)(1)In addition to or in lieu of the criminal penalties and administrative sanctions provided in this chapter, the board may issue an order to any person , firm, or corporation engaged in any activity, conduct, or practice constituting that is a violation of this chapter, directing the person, firm, or corporation to cease and desist from the activity, conduct, practice, or performance of any work then being donein progress or about to be commenced. The order shall be issued in the name of the State of Alabama this state under the authority of the board. (2) If the person, firm, or corporation fails to immediately comply with the whom the board directs a cease and desist order, does not cease or desist the proscribed activity, conduct, practice, or performance of work immediately, the board shall cause to issue in petition any court of competent jurisdiction and proper venue, to issue a writ of injunction enjoining the person , firm, or corporation from engaging in any activity, conduct, practice, or performance of work prohibited by this chapter. Upon a sufficient showing by the board that the person , firm, or corporation has engaged or is engaged in any activity, conduct, practice, or performance of work prohibited by this chapter, the courtscourtshallmay issue a temporary restraining order restrainingto enjoin the person, firm, or corporation from engaging in such unlawful activity, conduct, practice, or the performance of work pending the hearing on a 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 SB101 INTRODUCED Page 14 practice, or the performance of work pending the hearing on a preliminary injunction , and in due course . After a hearing, the court may issue a permanent injunction shall issue after the hearing, commanding the cessation of the unlawful activity, conduct, practice, or performance of work complained of, all without the necessity of the board having to give bond. A temporary restraining order, preliminary injunction, or permanent injunction issued pursuant to this subsection shall not be subject to being released on bond. (3) In the suit for an injunction, the board may demand of the defendant issue a fine of up to two thousand dollars ($2,000) plus costs for each offense. Anyone violating this chapter who fails (4) Any failure to cease work, after a hearing and notification from the board, shall not be eligiblerender an individual ineligible to apply for a certified contractor's license for a period not to exceed one year from the date of official notification to cease work. The board may withhold approval, for up to six months, of any application from anyoneany individual who, prior to the application , has been found in violation of this chapter." "§34-31-34 Any appeals to the chapter shall be as defined by the Alabama Administrative Procedure Act , Chapter 22 of Title 41 . Any judicial review pursuant to the Alabama Administrative Procedure Act must be filed, commenced, and maintained in the Circuit Court of Montgomery County, Alabama. " Section 2. This act shall become effective on October 1, 2024. 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392