Legislative

Plumbing Board Update (January 2012)

The Texas State Board of Plumbing Examiners will hold its first quarterly board meeting of 2012 on January 9, 2012. The final requirements for the new Responsible Plumber Training will be approved at this meeting. PHCC Texas will notify you of these new requirements and information on training classes scheduled.

Legislative Changes Effective January 1, 2012

A new law governing certificates of insurance restricts what insurance agents can place on an insurance form. Some owners and contractors have used their own forms in the past. These forms must now be approved by the Texas Department of Insurance before an insurance agent can use them. As of this date, no forms have been approved and TDI has not issued rules for filing of forms for approval. As of January 1, an agent can only complete a standard form, such as the Acord 25. If a company wishes to use their own certificate form, it should be filed here: P & C Intake Unit, Texas Department of Insurance, 333 Guadalupe, Austin, TX 78701.
Statutory lien waiver form: When a lien waiver is requested in exchange for payment of work performed, lien waiver forms which comply with statutory requirements MUST be used for the waiver to be valid. Links to forms for conditional and unconditional progress and final payment are posted on the Texas Construction Association website, www.texcon.org. These can be found on the TCA home page and the resources page.

Over the past six months, the new law governing indemnification agreements, additional insured endorsements and consolidated insurance programs has been the subject of much discussion in the construction legal and insurance worlds. It is suggested that companies consult with their legal counsel and insurance adviser to understand fully how House Bill 2093 applies to them. Information and a link to this bill are on the TCA website, www.texcon.org.

PHCC Texas Lobby Team Report (2011)

The Texas House and Senate adjourned Sine Die Monday, May 30^th. However, the end of session celebrations were short lived as Governor Perry immediately called the Legislature into a special session beginning Tuesday, May 31^st to address the unfinished business of the regular session. Members of the Legislature filed 5,976 bills during the regular session and passed 1,377 to Governor Perry for consideration. Ultimately, Governor Perry used his veto power to eliminate twenty-four proposals. Another seven bills were passed by the Legislature and sent to the Governor during the special session.

The lobby team actively worked on multiple issues on behalf of Associated Plumbing-Heating-Cooling-Contractors of Texas (PHCC) at the direction of PHCC leadership and staff during the legislative sessions and monitored many other issues of interest to its membership, as well. Issues included proposals related to the abolition and consolidation of the Texas State Board Plumbing Examiners (TSBPE), the plumbing code, fire sprinkler law, employment law, taxation, construction law, Texas Department Licensing and Regulation (TDLR) and HVAC. Our efforts included conferring with bill authors, committee members and staff to convey PHCC’s position on particular proposals, registering PHCC support or opposition to individual bills at committee hearings, assisting PHCC staff and members with testimony and routinely communicating with regulatory agencies and others in the industry.

A priority for PHCC entering the legislative session in January was the continuation of the TSBPE. The abolition and consolidation of the agency and its functions was considered by legislators as a response to the budget shortfall. Two bills were filed in the House that would have abolished TSBPE and merged its regulation under the TDLR umbrella. Ultimately, these two bills, HB 2665 and HB 3166, did not move forward in the legislative process. The lobby team immediately visited with the bill authors and staff following the filing of each bill to communicate PHCC’s opposition and explain why these proposals were harmful to the regulation of plumbing in Texas.

Companion legislation related to fire sprinkler licensure and regulation was filed that would have potentially impacted the Multipurpose Residential Fire Protection Specialist endorsement authorized by the Legislature in 2009. The lobby team sought to amend this proposal throughout the session with language that would have clarified and strengthened the endorsement language in the plumbing code. In the end, the fire sprinkler proposal failed to advance.

Additionally, the lobby team assisted the Texas Construction Association (TCA) by advocating for commonly supported legislation initiated by TCA including retainage, lien and indemnification law. The PHCC lobby team also supported plumbing industry “clean up” bill for 2011, HB 2376. The bill made various technical corrections to the governing statute, changes to board investigations following complaints and clarifications to the fire sprinkler endorsement. Finally, the lobby team lent support to the legislation filed that impacts the licensing and registration of air conditioning and refrigeration contractors. This bill provided updates to Chapter 1302 of the Occupations Code to reflect changes in the industry in recent years.

Barring unforeseen reasons, the Legislature will not be called back to Austin before the next regular session convenes January 8, 2013. Three legislators have already announced their retirements: Representative Fred Brown (R-College Station), Representative Warren Chisum (R-Pampa) and Representative Jim Jackson (R-Carrollton). Additional changes are expected through further retirement announcements and election outcomes. Meanwhile, members will continue to work through meetings with constituents and stakeholders in their districts, the development and issuance of interim charges to standing committees and participation in legislative conferences in Texas and around the nation. We appreciate the opportunity to advocate on behalf of PHCC in 2011 and look forward to continuing our work together.

HB2643

New Legislative Requirements For HVAC Licensing

Effective November 1, 2012

Eligibility to take exam

18 years old
4 years experience within past 6 years verified by a licensed contractor
4 year degree in air conditioning engineering/technology equals 2 years experience
2 year associates equals 1 year
1 year certification equals 6 months
2000 hours of an approved Apprenticeship program equals 1 year
Equivalent out of state experience/license
Verified military HVACR experience
Practical experience in HVACR employed by a electric/gas utility
Practical experience in HVACR employed by a governmental entity
Licensed Engineer

Technician Registration

18 years old
Prohibits HVACR maintenance/repair without a license or Technician Registration
New construction and total system replacement, registration not required
Boiler install/repair, registration not required

PHCC Texas Legislative Report (July 2011)

Thanks to a combination of industry opposition, lobby strength and plumbing associations partnering together, the Texas State Board of Plumbing Examiners (TSBPE) will remain a strong, independent agency. This is a wonderful example of the legislature listening to the voices of constituents. Their voices were loud and clear and they were heard! The industry sent a strong message to their legislators that they did not want to see the Texas State Board of Plumbing Examiners merged with the Texas Department of Licensing and Regulation (TDLR). TDLR is a large licensing umbrella agency overseeing 29+ diverse industries.

Thousands of calls, emails and letters were sent to legislators during the session. Contractors were prepared to testify on the day the bill, HB 3166, would be heard. Two days before the scheduled hearing, the good news was announced - the Texas State Board of Plumbing Examiners was removed from the merger bill. It was a happy day for the plumbing industry in Texas.

Across the country, licensed agencies are being merged into large umbrella agencies in the effort to save money during the current financial budget crunches in most states. In Texas, the merger would not save money for the state. TSBPE has historically operated as both an effective and fiscally efficient agency that is appreciated by the consumer and respected by the industry. Their enforcement and examination programs are among the best in the country. The 24 full time employees oversee 24,000 licensed plumbers and over 24,000 registered apprentices. Among these, 14 staff members are licensed plumbers with years of experience. Bob Maxwell, Executive Director of TSBPE, does an excellent job of directing enforcement and administering the law. He supervises the staff, works with the Board, trains CPE instructors, and remains accessible to the public and the plumbing industry to answer technical questions interpreting plumbing codes adopted by the state regarding the proper installation of plumbing. We appreciate the great job he does for our industry!

PHCC Texas thanks everyone who participated in this strong grassroots lobbying effort. Industry communications with legislators paved the way for the lobby teams and the plumbing associations to do their job. We are especially proud of our PHCC Texas Lobby Team - Dan Shelley, Jennifer Rodriguez and Marc Rodriguez. They did a great job! It was a win-win for our industry. TOGETHER WE WIN! THANK YOU!

Other industry legislative bills that passed this session:

· HB 2376 - plumbing license clean-up bill (Before a Master Plumber becomes a Responsible Master Plumber, he will be required to complete a board-approved training program on laws and rules related to the operation of a plumbing business; allows a water supply protection specialist to do customer service inspections through TCEQ and allows them to install, service and repair plumbing associated with use and distribution of rainwater to supply a plumbing fixture, appliance or irrigation system ; allows the plumbing board to deny investigation of a complaint if the person who is the subject of the complaint is engaged in litigation related to the subject of the complaint; allows a licensed plumber to design a multipurpose residential fire protection sprinkler if he holds the fire sprinkler endorsement.)

· HB 2643-HVAC bill-recognizes DOL apprentice programs, allows air conditioning experience in military service to count toward experience; allows other degrees to count toward experience.

· HB 2093-indemnification clauses in construction contracts. Not covered are single family homes, townhouses, duplexes, and oil field work or public work contracts for municipalities. The bill also includes general liability coverage for completed operations (the coverage must be at least 3 years).

Construction Industry Bills Signed by the Governor:

· HB 1390-corrects problems with retainage notice and retainage lien affidavits in the Texas in the Texas lien laws, specifically establishing more reasonable time periods in which those lien affidavits must be filed and an overall improvement to the process for establishing a retainage lien.

· HB 1456-creates one set of statutory lien waiver forms, both conditional and unconditional, to be used during the payment process on construction projects in Texas.

· HB 2093-will require a consolidated insurance program to meet certain minimum coverage requirements and will also ban broad form indemnification clauses and certain types of additional insured endorsements in construction contracts.

· SB 628-will consolidate project delivery processes for most governmental entities into a single chapter of the Government Code and will ban reverse auction procurement on public work projects.

· SB 1048-will facilitate the creation of public private partnerships for facilities and infrastructure construction. Included in the bill is an amendment that will require performance and payment bonds on these public private partnership projects.

Plumbing Board Update (July, 2011)

The Texas State Board of Plumbing Examiners has proposed new amendments to Section 361.6, which specifies certain fees charged by the Board, including fees for initial applications for licenses, endorsements and registrations, as well as examinations, renewals and late renewal fees. The Plumbing proposed on July 11, 2011, that the license fees be increased seven percent across the board. Fee increases for all categories are:

Responsible Master Plumber: $16 (license fee will be $246 annually)

Master Plumber: $16 (license fee will be $246 annually)

Journeyman Plumber: $3 (license fee will be $43 annually)

Tradesman Plumber: $3 (license fee will be $39 annually)

Apprentice Registration Fee: $1 (registration fee will be $19 annually)

These fee increases were necessary in order to generate revenue needed for the 2012-2013 biennium. The public benefit anticipated as a result of adopting these rule amendments will be the Board’s ability to better protect the health, safety and welfare of the citizens by utilizing additional funding for administration and enforcement of the Plumbing License Law and Board Rules. Administration and enforcement includes the investigation of consumer complaints, job-site compliance checks and pursuing action against persons who choose to endanger the health, safety and welfare of the citizens by violating the Plumbing License Law and Board Rules.

Comments on the proposed Board Rule Amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register - email to info@tsbpe.state.tx.us or mail to Robert Maxwell, Executive Director, Texas State Board of Plumbing Examiners, 529 E. 4lst St. or P.O. Box 4200, Austin, Tx 78765-4200.

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