Air Conditioning and Refrigeration Contractors Penalties and Sanctions

Air Conditioning and Refrigeration Contractors (ACR)

Texas Occupations Code, Chapter 1302
16 Texas Administration Code, Chapter 75

Class A:

1st Violation: Reprimand to $1,000
2nd Violation: $500 to $2,000
3rd Violation: $1,000 to $4,000 per day not corrected and/or 6-month probated suspension to 1-year full suspension

Administrative Violations
  • Engaged in air conditioning contracting in city without notifying city of license 1302.262(a)
  • Failed to provide a revised insurance certificate to the Department within 30 days of change in business affiliation 75.40(d), 75.70(h)(2)
  • Failed to notify Department of change of address, company location, company telephone number, or business affiliation within 30 days of the change 75.70(a)(4), 75.70(h)(1), 75.73(d)
  • Failed to notify Department of assignment of license to company 75.71(a)(1)
  • Failed to notify Department that a licensee has left within 30 days 75.71(a)(1)
  • Failed to provide copy of assumed name certificate to the Department 75.71(a)(2)
Advertising Violations
  • Failed to include license number in advertisement which requires the license number 75.71(h)
  • Used the designation 'certified technician' when did not meet the requirements of certification 1302.508, 75.28(b), 75.73(a)(5)
Public Notice Violations
  • Failed to include Department information on proposal, invoice, contract, or sign displayed in place of business 75.71(i)
  • Failed to include license number on proposal or invoice 75.71(i)
  • Failed to include company name, address and phone number on proposal or invoice 75.71(i)
  • Failed to display or incorrectly displayed the company name and license number on vehicles which require it 75.71(g)
  • Failed to display company name and license number on sign at job site visible from street 75.71(g)
Class B:
  • 1st Violation: $1,000 to $4,000 and/or up to 6-month probated suspension
  • 2nd Violation: $3,000 to $5,000 plus 1-year probated suspension to 1-year full suspension
  • 3rd Violation: $3,000 to $5,000 per day not corrected plus 1-year full suspension to revocation
Administrative Violations
  • Failed to furnish to municipalities a list of authorized agents who may pull permits under the license 75.70(a)(6), 75.71(a)(5)
  • Failed to provide invoice to consumer 75.71(i)
Records Violations
  • Failed to maintain records showing employment status of assigned licensee 75.71(a)(3)
  • Failed to make records available to the Department for at least three years after completion of a job 75.71(a)(6)
  • Failed to furnish a copy of licensee employment records at the request of the Department 75.71(a)(4)
Insurance Violations
  • Failed to maintain insurance 75.40(a), 75.40(b), 75.70(i)
  • Obtained insurance from a company not authorized to sell liability insurance in Texas 75.40(c)
  • Failed to provide proof of insurance upon request of the Department 75.40(d), 75.70(i)
  • Failed to provide insurance information to a consumer upon request 75.40(g)
  • Performed or offered to perform air conditioning or refrigeration contracting to the general public while having insurance waiver 75.40(f)
Mechanical Integrity Violations
  • Failed to obtain permit 1302.401(a)(2), 1302.401(b)(1), 75.100(e)(1)
Unlicensed Activity
  • Performed or offered to perform air conditioning or refrigeration contracting not authorized by the license classification 1302.253, 1302.251(a)
  • Performed or offered to perform air conditioning or refrigeration contracting not authorized by the license endorsement 1302.254(d), 1302.251(a)
  • Performed or offered to perform while license expired or renewal denied 1302.251(a), 60.31(g)
  • Performed or offered to perform biomedical remediation without a license 1302.251(a), 75.100(c)(3)
  • Performed non-exempt duct work without a license 75.100(c)(1)
Improper Use of a License
  • Allowed someone else to use license - not an employee or subcontractor 75.70(f),(g), 75.73(b),(c)
  • Assigned a contracting license to more than one permanent office or more than one company 1302.251(c), 75.70(a)(1)(3)
  • Assigned license but not an employee or owner or not working full time at the company or permanent office 75.70(a)(2)
  • Company used a license not assigned to company 75.71(j)
  • Used a location other than the permanent office for contracting air conditioning sales or service 75.71(f)
Class C:
  • 1st Violation: $1000 to $5,000 plus 1-year probated suspension up to revocation
  • 2nd Violation: $3,000 to $5,000 per day not corrected plus 1-year probated suspension to revocation
  • 3rd Violation: $4,000 to $5,000 per day not corrected plus revocation
Administrative Violations
  • Failed to furnish to municipalities a list of authorized agents who may pull permits under the license 75.70(a)(6), 75.71(a)(5)
Mechanical Integrity Violations
  • Failed to provide proper installation, service, or mechanical integrity 1302.401(b)(1), 75.70(a)(7), 75.70(b)(3), 75.70(d), 75.70(e), 75.71(b)(1), 75.71(c)(3), 75.73(a)(1), 75.100(e)(1),
  • Failed to comply with municipal code or ordinance 1302.401(a)(2), 75.100(e)(1)
  • Failed to perform all electrical work in accordance with National Electrical Code and the International Residential Code, as applicable 75.100(a)(4)
  • Installed fuel gas piping other than as permitted 75.100(b)(1)
  • Altered an existing fuel gas piping system, stop, or shut-off valve 75.100(b)(1)
  • Installed drain piping other than as permitted 75.100(b)(2)
  • Failed to supervise an air conditioning and refrigeration technician 1302.503
  • Failed to provide direct supervision of all work requiring a license or registration 75.70(a)(5),75.71(e)
Misrepresentation
  • Intentionally or knowingly misrepresented services or services to be provided 1302.401(b)(2), 75.70(a)(8), 75.71(b)(2), 75.73(a)(2)
  • Made a fraudulent promise or false statement to induce a person to contract for services 1302.401(b)(3), 75.70(a)(9), 75.71(b)(3)
Unlicensed Activity
  • Performed or offered to perform air conditioning or refrigeration contracting without a license 1302.251(a), 1302.252(a)
  • Collected a fee for air conditioning or refrigeration work performed without a license 1302.252(b)
  • Used the services of a person who was not a registered technician or a licensed air conditioning and refrigeration contractor to assist in the performance of air conditioning and refrigeration maintenance work 1302.263(2), 75.70(a)(11), 75.71(k)
  • Acted or offered to act as an air conditioning and refrigeration technician without a registration 1302.501(a)
  • Technician assisted a person who was not licensed as a contractor 1302.509(2)
  • Knowingly performed work on behalf of an unlicensed company 75.70(a)(10), 75.73(a)(4)
  • Used an unlicensed subcontractor without actively providing work or services requiring a license 75.70(b)(1),(2), 75.71(c)(1),(2)
  • Subcontracted an entire job to an unlicensed person 75.70(b)(1)(2), 75.71(c)(1),(2)
  • Subcontracted design of an air conditioning and refrigeration system to an unlicensed person 75.70(c), 75.71(d)
  • Technician performed non-exempt air conditioning and refrigeration maintenance work without being under the supervision of a licensed air conditioning and refrigeration contractor 1302.503, 75.73(a)(3)
Class D:

1st Violation: $5,000 plus revocation

2nd Violation: $5,000 plus revocation

3rd Violation: $5,000 plus revocation

  • Failed to comply with previous order of Commission/Executive Director 1302.401(a)(1), 51.353(a), 75.90
  • Obtained or attempted to obtain a license or registration by fraud or false representation 60.23(a)(1)
  • Cheated on an examination 75.21(c)(d), 60.52(a)
  • Failed to pay the Department for a dishonored payment 60.82