SECTION 75.71. Responsibilities of the Contracting Company

(a) An air conditioning and refrigeration contracting company must:

(1) notify the department of all licensees who have assigned their licenses to the company and must notify the department within thirty (30) calendar days when any licensee whose license is assigned to the company has left its employ;

(2) furnish to the department copies of applicable assumed name registrations from the Office of the Secretary of State and/or County Clerks' office;

(3) maintain records on its license holder showing payroll taxes deducted and reported to the Texas Workforce Commission, and either, hours worked each day or documentation showing that the licensee is on salary and works full time for the contracting company;

(4) furnish a copy of the company's records, specified in paragraph (3) of this subsection, at the request of the department;

(5) furnish to municipalities a list of authorized agents that may pull permits under the license of its license holder, and, if subcontracting jobs to other licensed air conditioning and refrigeration contracting companies, furnish a list of agents of those licensed companies that may pull permits under the license of its license holder; and

(6) make available to the department in Austin, Texas, or other location designated by the department, the records relating to the business of the air conditioning and refrigeration contracting company conducted through a permanent office for a period of at least three years after completion of a job.

(b) A person or an air conditioning and refrigeration contracting company that performs air conditioning and refrigeration contracting must:

(1) provide proper installation and service, and assure the mechanical integrity of all work and installations;

(2) not misrepresent the need for services, services to be provided, or services that have been provided; and

(3) not make a fraudulent promise or false statement to influence, persuade, or induce an individual or a company to contract for services.

(c) A contracting company may subcontract portions of work requiring a license to unlicensed persons, firms, or corporations as long as:

(1) the contracting company's employees, working under the supervision of the contracting company's assigned licensee actively provides work or service;

(2) the work or service provided by the employees consists of more than accepting a contract or request for service, scheduling the work, and providing supervision of the work; and

(3) the assigned licensee is ultimately responsible to the customer for all work performed by the subcontractor.

(d) The design of a system may not be subcontracted to an unlicensed person, firm or corporation.

(e) Each air conditioning and refrigeration contracting company must have a licensee employed full time for each permanent office. All work requiring a license must be under the direct supervision of the licensee for that office.

(f) If an air conditioning and refrigeration contracting company uses locations other than a permanent office, those locations must be used only for air conditioning and refrigeration workers to receive instructions from the permanent office on scheduling of work, to store parts and supplies, and/or to park vehicles. These locations may not be used to contract air conditioning sales or service.

(g) Each air conditioning and refrigeration contracting company must display the license number of its affiliated licensee and company name in letters not less than two inches high on both sides of all vehicles used in conjunction with air conditioning and refrigeration contracting. When an unlicensed subcontractor is at a job site not identified by a marked vehicle, the site must be identified either by a temporary sign on the subcontractor's vehicle or on a sign visible and readable from the nearest public street containing the contractor's affiliated license number and company name.

(h) All advertising by air conditioning and refrigeration contracting companies designed to solicit air conditioning or refrigeration business must include the affiliated licensee's license number. The following advertising does not require the license number:

(1) nationally placed television advertising, in which a statement indicating that license numbers are available upon request is used in lieu of the licensee's license number;

(2) telephone book listings that contain only the name, address, and telephone number;

(3) manufacturers' and distributor's telephone book trade ads endorsing an air conditioning and refrigeration contractor;

(4) telephone solicitations, provided the solicitor states that the company complies with licensing requirements of the state. The affiliated licensee's number must be provided upon request;

(5) promotional items of nominal value such as ball caps, tee shirts, and other gifts;

(6) letterheads and printed forms for office use; and

(7) signs located on the contractor's permanent business location.

(i) An invoice must be provided to the consumer for all air conditioning and refrigeration work performed. The company name, address, and phone number must appear on all proposals and invoices. The affiliated licensee's number must appear on all proposals and invoices for air conditioning and refrigeration work. The following information: "Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599, www.tdlr.texas.gov" must be listed on:

(1) proposals and invoices;

(2) written contracts; and

(3) a sign prominently displayed in the place of business if the consumer or service recipient may visit the place of business for service.

(j) An air conditioning and refrigeration contracting company may not use a license that is not assigned to that company.

(k) An air conditioning and refrigeration contracting company may only use licensed contractors, registered technicians, certified technicians, or students meeting the requirements of §75.30(a)(6) to perform maintenance work.

Source Note: The provisions of this §75.71 adopted to be effective August 1, 2006, 31 TexReg 5944; amended to be effective April 1, 2011, 36 TexReg 1975; amended to be effective September 1, 2015, 40 TexReg 5148; amended to be effective May 1, 2018, 43 TexReg 2401