Air Conditioning and Refrigeration Contractors Penalties and Sanctions
Texas Occupations Code, Chapter 1302
16 Texas Administration Code, Chapter 75
Class A
Penalty: $500 to $1,000
Administrative Violations
| Violation |
Statute/Rule |
| 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 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 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
| Violation |
Statute/Rule |
| Failed to include license number in advertisement which requires the license number |
75.71(h) |
Public Notice Violations
| Violation |
Statute/Rule |
| 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
Penalty: $1,000 to $3,500 and/or up to 1-year full suspension
Records Violations
| Violation |
Statute/Rule |
| 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) |
| Failed to provide invoice to consumer |
75.71(i) |
Mechanical Integrity Violation
| Violation |
Statute/Rule |
| Failed to obtain permit |
1302.401(a)(2), 1302.401(b)(1), 75.100(e)(1) |
Unlicensed Activity
| Violation |
Statute/Rule |
| 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)(2) |
| Used the designation “certified technician” when did not meet the requirements of certification |
1302.5055(b), 75.28(b), 75.73(a)(5) |
| Performed non-exempt duct work without a license |
75.100(c)(1) |
Improper Use of a License
| Violation |
Statute/Rule |
| Allowed someone else to use license – not an employee or subcontractor |
75.70(f), 75.70(g), 75.73(b),75.73(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
Penalty: $2,000 to $5,000 plus 1-year probated suspension up to revocation
Administrative Violations
| Violation |
Statute/Rule |
| Altered a license or registration in any way |
75.70(j), 75.73(e) |
Insurance Violations
| Violation |
Statute/Rule |
| 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
| Violation |
Statute/Rule |
| 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, certification, or registration |
75.70(a)(5),75.71(e) |
Misrepresentation
| Violation |
Statute/Rule |
| 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
| Violation |
Statute/Rule |
| 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, certified technician, student in a certification training program, 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 or certification |
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) |
| Registered or Certified 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
Penalty: $5,000 and/or revocation
| Violation |
Statute/Rule |
| 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, certification, 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 |
