TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 24. SUBSTANTIVE RULES APPLICABLE TO WATER AND SEWER SERVICE PROVIDERS

SUBCHAPTER J. WHOLESALE WATER OR SEWER SERVICE

The Public Utility Commission of Texas (commission) proposes amendments to §24.307 relating to Commission's Review of Petition or Appeal Concerning Wholesale Rate, §24.309 relating to Evidentiary Hearing on Public Interest, and §24.311 relating to Determination of Public Interest. This proposed rule will implement Texas Water Code §12.013 as revised by Senate Bill (SB) 997 during the Texas 87th Regular Legislative Session, which establishes that a party adversely affected by a public interest determination may appeal the decision to a court of proper jurisdiction. The amended rules will allow the commission to make a determination as to whether the protested rate is charged under a contract and allow the commission to consider cost of service evidence when evaluating whether a wholesale seller's rate is in the public interest.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rule as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:

(1) the proposed rule will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rule will not create a new regulation;

(6) the proposed rule will not expand, limit, or repeal an existing regulation;

(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rule will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

Iliana De La Fuente, Attorney, Rules and Projects, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Ms. De La Fuente has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the amended rules will be a clarification of the commission's process and authority for review of wholesale water rates. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).

Local Employment Impact Statement

For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by July 9, 2026. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website or by submitting a paper copy to Central Records, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326. Comments must be filed by July 9, 2026. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission also requests information related to the costs, benefits, or effects of the proposed rule, including any applicable data, research, or analysis, from any person required to comply with the proposed rule or any other interested person. The commission will consider these comments in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 53981.

In addition to comments on the proposed rule text, the commission requests comments on the following question concerning the proposed rules:

To what extent, if any, should an evidentiary hearing held in accordance with proposed §24.307(d) be eligible for merger with either an evidentiary hearing on public interest held in accordance with §§24.307(b) and 24.309(a) or a consolidated evidentiary hearing on public interest and cost of service held in accordance with §24.309(d)? If parties should be allowed to merge these evidentiary hearings into a consolidated evidentiary hearing, how should the commission modify the rule to provide that optionality? Please provide recommended language or redlines of the proposed rule, including any eligibility prerequisites, procedural requirements, or other criteria or considerations.

Responses to the above question are within the scope of this rulemaking proceeding, and the commission will consider these responses in deciding whether to modify the proposed rules on adoption.

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

Statutory Authority

These amendments are proposed under Texas Water Code §12.013, which provides grants the commission rate-fixing power over water furnished by a political subdivision to another political subdivision on a wholesale basis; Texas Water Code §13.0431(f) which requires the commission to determine that the amount charged under the contract harms the public interest prior to holding a hearing on just and reasonable amounts to be charged under the contract. Texas Water Code §13.041(a), which provides the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by the Texas Water Code that is necessary and convenient to the exercise of that power and jurisdiction; and Texas Water Code §13.041(b), which provides the commission with the authority to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction.

Cross Reference to Statute: Texas Water Code §12.013; §13.041(a); and §13.041(b).

§24.307. Commission's Review of Petition or Appeal Concerning Wholesale Rate.

(a) When a petition or appeal is filed, the commission must [shall] determine within 30 days of the filing of the petition or appeal whether the petition contains all of the information required by this subchapter. For purposes of this section only, the initial review of probable grounds must [shall] be limited to a determination whether the petitioner has met the requirements §24.305 of this title (relating to Petition or Appeal). If the commission determines that the petition or appeal does not meet the requirements of §24.305 of this title, the commission must [shall] inform the petitioner of the deficiencies within the petition or appeal and allow the petitioner the opportunity to correct these deficiencies. If the commission determines that the petition or appeal does meet the requirements of §24.305 of this title, the commission must [shall] forward the petition or appeal to the State Office of Administrative Hearings for an evidentiary hearing.

(c) [(b)] For a petition or appeal to review a rate that is charged under [pursuant to] a written contract, the commission will forward the petition or appeal to the State Office of Administrative Hearings to conduct an evidentiary hearing on public interest.

(d) [(c)] For a petition or appeal to review a rate that is not charged under [pursuant to] a written contract, the commission will forward the petition or appeal to the State Office of Administrative Hearings to conduct an evidentiary hearing on the rate.

(e) [(d)] If the seller and buyer do not agree that the protested rate is charged under [pursuant to] a written contract, the commission will forward the petition or appeal to the State Office of Administrative Hearings to conduct an evidentiary hearing to determine whether the rate is charged under the contract. The administrative law judge will prepare a proposal for decision with proposed findings of fact and conclusions of law concerning whether the protested rate is charged under a contract and must submit this recommendation to the commission. [administrative law judge shall abate the proceedings until the contract dispute over whether the protested rate is part of the contract has been resolved by a court of proper jurisdiction.]

§24.309. Evidentiary Hearing on Public Interest.

(a) If the commission forwards a petition to the State Office of Administrative Hearings pursuant to §24.307(a) and (c) [(b)] of this title (relating to Commission's Review of Petition or Appeal), the State Office of Administrative Hearings must [shall] conduct an evidentiary hearing on public interest to determine whether the protested rate adversely affects the public interest.

(b) Prior to the evidentiary hearing on public interest, discovery must [shall] be limited to matters relevant to the evidentiary hearing on public interest.

(c) The administrative law judge must [shall] prepare a proposal for decision [and order] with proposed findings of fact and conclusions of law concerning whether the protested rate adversely affects the public interest, and must [shall] submit this recommendation to the commission.

(d) The seller and buyer may agree to consolidate the evidentiary hearing on public interest and the evidentiary hearing on cost of service. If the seller and buyer [so] agree to consolidation, then the administrative law judge must [shall] hold a consolidated evidentiary hearing.

§24.311. Determination of Public Interest.

(a) The commission must [shall] determine that the protested rate adversely affects the public interest if after the evidentiary hearing on public interest the commission concludes at least one of the following public interest criteria have been violated:

(1) the protested rate impairs the seller's ability to continue to provide service, based on the seller's financial integrity and operational capability;

(2) the protested rate impairs the purchaser's ability to continue to provide service to its retail customers, based on the purchaser's financial integrity and operational capability;

(3) the protested rate evidences the seller's abuse of monopoly power in its provision of water or sewer service to the purchaser. In making this inquiry, the commission must [shall] weigh all relevant factors. The factors may include:

(A) the disparate bargaining power of the parties, including the purchaser's alternative means, alternative costs, environmental impact, regulatory issues, and problems of obtaining alternative water or sewer service;

(B) the seller's failure to reasonably demonstrate the changed conditions that are the basis for a change in rates;

(C) the seller changed the computation of the revenue requirement or rate from one methodology to another;

(D) where the seller demands the protested rate under [pursuant to] a contract, whether other valuable consideration is received by a party incident to the contract;

(E) incentives necessary to encourage regional projects or water conservation measures;

(F) the seller's obligation to meet federal and state wastewater discharge and drinking water standards;

(G) the rates charged in Texas by other sellers of water or sewer service for resale; or

(H) the seller's rates for water or sewer service charged to its retail customers, compared to the retail rates the purchaser charges its retail customers as a result of the wholesale rate the seller demands from the purchaser; or

(4) the protested rate is unreasonably preferential, prejudicial, or discriminatory, compared to the wholesale rates the seller charges other wholesale customers.

(b) The commission may consider all relevant factors in determining whether [shall not determine whether] the protested rate adversely affects the public interest, including [based on] an analysis of the seller's cost of service.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 7, 2026.

TRD-202601938

Katelyn Lewis

Projects Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: June 21, 2026

For further information, please call: (512) 936-7044

PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 75. AIR CONDITIONING AND REFRIGERATION

The Texas Department of Licensing and Regulation (Department) proposes amendments to existing rules at 16 Texas Administrative Code (TAC), Chapter 75, §§75.10, 75.80, 75.110, 75.121, and 75.124; and proposes the repeal of existing rules at §75.28, regarding the Air Conditioning and Refrigeration Contractors program. These proposed changes are referred to as the "proposed rules."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rules under 16 TAC, Chapter 75, implement Texas Occupations Code, Chapter 1302, Air Conditioning and Refrigeration.

The proposed rules update the applicable codes adopted by reference for air conditioning and refrigeration contracting from the 2021 editions to the 2024 editions of the International Residential Code, International Mechanical Code, International Fuel Gas Code, and Uniform Mechanical Code, effective September 1, 2026. These updates are necessary to align the Department's rules with current nationally recognized standards and provide a transition date for implementation.

The proposed rules remove obsolete provisions related to the "certified technician (legacy)" designation to conform the rules to current statutory requirements under Texas Occupations Code, Chapter 1302. The proposed rules also clarify examination eligibility requirements for certified technicians and update references to Texas Education Agency rules that have been reorganized.

Four-Year Rule Review Changes

The proposed rules include changes as a result of the required four-year rule review conducted under Texas Government Code §2001.039. The Department conducted the required rule review of the rules under 16 TAC Chapter 75, and the Commission readopted the rule chapter in its entirety and in its current form. (Proposed Rule Review, 47 TexReg 5344, September 2, 2022. Adopted Rule Review, 48 TexReg 1644, March 24, 2023.)

In response to the Notice of Intent to Review that was published, the Department received public comments from six interested parties regarding Chapter 75, but none of those comments relate to the rules in this proposal. A comment by the Associated Air Balance Council (AABC) asserts that the definitions of "system testing" and "system balancing" in §75.10 are vague and may cause confusion regarding licensure requirements. AABC contends that companies performing only testing and balancing should be exempt from licensure. The Department did not include any changes to the proposed rules as a result of that comment because the rules clearly distinguish between "system testing," which may be performed without a contractor license, and "system balancing," which requires a contractor license. System balancing involves adjusting or regulating air distribution equipment, which constitutes service or modification of an air conditioning system and therefore falls within the statutory definition of air conditioning and refrigeration contracting. The current rules are consistent with the statute and provide a reasonable and enforceable boundary between exempt diagnostic activities and licensed mechanical work. Accordingly, a rule amendment is not warranted.

The proposed rules include changes identified by Department staff during the rule review process. These changes include removing obsolete provisions related to the "certified technician (legacy)" designation, clarifying examination eligibility requirements for certified technicians, and updating references to Texas Education Agency rules that have been reorganized.

Advisory Board Recommendations

The proposed rules were presented to and discussed by the Air Conditioning and Refrigeration Contractors Advisory Board at its meeting on April 30, 2026. The Advisory Board did not make any changes to the proposed rules. The Advisory Board voted and recommended that the proposed rules be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY

The proposed rules amend §75.10, Definitions, by removing the definition for "certified technician (legacy)". This term was created to facilitate the changes in law made by House Bill (HB) 3029, 85th Legislature, Regular Session (2017), and it is no longer necessary because all technician certificates are now issued under Texas Occupations Code §1302.5055. The remaining definitions are renumbered accordingly.

The proposed rules repeal §75.28, Registered Technician--Certified Technician (Legacy) Designation. This section applies to applicants for a certified technician designation under Texas Occupations Code §1302.508, which was repealed by HB 3029, effective September 1, 2017. The section is no longer necessary because all technician certificates are now issued under Texas Occupations Code §1302.5055.

The proposed rules amend §75.80, Fees. Subsection (b)(3) is amended to reflect that the Department issues only licenses to contractors, not certificates, permits, or registrations. Existing subsection (c)(5) is repealed because it relates only to the obsolete "certified technician (legacy) designation." Existing subsection (c)(6) is relabeled to become new subsection (c)(5) and is amended to reflect that the Department issues only certificates or registrations to technicians, not licenses or permits.

The proposed rules amend §75.110, Applicable Codes. Subsection (a) is amended to state that, effective September 1, 2026, the codes adopted to provide the rules of practice for air conditioning and refrigeration contracting are updated from the 2021 editions to the 2024 editions of the International Residential Code, the International Mechanical Code, the International Fuel Gas Code, and the Uniform Mechanical Code. These updates align the Department's regulations with these currently recognized national standards. Subsection (b) is amended to provide the transition date for the code updates in subsection (a).

The proposed rules amend §75.121, Certified Technician--Examinations, to clarify that a person must satisfy only the requirements of Texas Occupations Code §1302.5036(1) and (2) prior to taking the certified technician examination.

The proposed rules amend §75.124, Career and Technology Education Program Requirements, to update references to rules of the Texas Education Agency that were reorganized into a different rule chapter, effective August 1, 2025 (50 TexReg 4421).

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Senior Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rules.

Mr. Couvillon has also determined that for each year of the first five years the proposed rules are in effect, there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed rules.

LOCAL EMPLOYMENT IMPACT STATEMENT

Because Mr. Couvillon has determined that the proposed rules will not affect a local economy, the agency is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFITS

Mr. Couvillon also has determined that for each year of the first five-year period the proposed rules are in effect, the public benefit will be increased safety for Texans and those visiting the state. The adoption of the applicable 2024 codes maintains consistent standards for all air conditioning and refrigeration work in Texas, while allowing for improvements in efficiency and energy savings. It enables stakeholders to keep pace with technical advances within the industry, while maintaining or increasing public safety, thereby establishing a minimum standard for air conditioning and refrigeration work and services, which affects all consumers, home and building owners, and building officials in Texas. The other improvements and clarifications to the proposed rules will allow license applicants, license holders and the public to better understand the rules and the requirements and responsibilities contained in the rules.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rules.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. Because the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rules do not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Texas Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Texas Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:

1. The proposed rules do not create or eliminate a government program.

2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rules do not require an increase or decrease in fees paid to the agency.

5. The proposed rules do not create a new regulation.

6. The proposed rules expand, limit, or repeal an existing regulation. The proposed rules repeal an existing regulation by removing the "certified technician (legacy)" designation.

7. The proposed rules do not increase or decrease the number of individuals subject to the rules' applicability.

8. The proposed rules do not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Texas Government Code §2007.043.

PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES

The Department is requesting public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed rules. Please do not submit copyrighted, confidential, or proprietary information.

Comments on the proposed rules and responses to the request for information may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/ACR_Rule_Making; by facsimile to (512) 475-3032; or by mail to Shamica Mason, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

STATUTORY AUTHORITY

The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 1302, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rules are those set forth in Texas Occupations Code, Chapters 51 and 1302. No other statutes, articles, or codes are affected by the proposed rules.

§75.10. Definitions.

The following words and terms have the following meanings as used in this chapter:

(1) Act--Texas Occupations Code, Chapter 1302, Air Conditioning and Refrigeration Contractors.

(2) Advertising or Advertisement--Any commercial message which promotes the services of an air conditioning and refrigeration contractor.

(3) Air conditioning and refrigeration subcontractor--A person or firm who contracts with a licensed air conditioning contractor for a portion of work requiring a license under the Act. The subcontractor contracts to perform a task according to his own methods, and is subject to the contractor's control only as to the end product or final result of his work.

(4) Air conditioning or heating unit--A stand-alone system with its own controls that conditions the air for a specific space and does not require a connection to other equipment, piping, or ductwork in order to function.

(5) Assumed name--As defined in the Business and Commerce Code, Title 5, Chapter 71.

(6) Biomedical Remediation--The treatment of ducts, plenums, or other portions of air conditioning or heating systems by applying disinfectants, anti-fungal substances, or products designed to reduce or eliminate the presence of molds, mildews, fungi, bacteria, or other disease-causing organisms.

(7) Biomedical Testing--The inspection and sampling of ducts, plenums, or other portions of air conditioning or heating systems to test for the presence of molds, mildews, fungi, bacteria, or other disease-causing organisms. The term does not include performing any type of treatment or remediation.

(8) Boiler--As defined in Chapter 755 of the Health and Safety Code.

(9) Business affiliation--The business organization to which a licensee elects to assign his license.

(10) Career and technology education program--An educational program, defined in §1302.5037(a)(1) of the Act, focused on air conditioning and refrigeration and:

(A) offered by a public high school under Subchapter F, Chapter 29, Education Code; or

(B) offered by a private high school or institution of higher education and determined by the department to be similar to a program described by subparagraph (A).

(11) Certification training program--A program of education and training, defined in §1302.002(5-c)(B) of the Act and further addressed in §75.122, accepted or approved by the department and consisting of at least 2,000 hours of a combination of classroom instruction and supervised practical experience.

(12) Certification training program provider--A person providing or offering to provide a certification training program.

(13) Certified technician--A person granted an air conditioning and refrigeration technician certification by the department pursuant to §75.120, and §1302.5036 and §1302.5055 of the Act.

(14) [(15)] Cheating--Attempting to obtain, obtaining, providing, or using answers to examination questions by deceit, fraud, dishonesty, or deception.

(15) [(16)] Cryogenics--Refrigeration that deals with producing temperatures ranging from:

(A) -250 degrees F to Absolute Zero (-459.69 degrees F);

(B) -156.6 degrees C to -273.16 degrees C;

(C) 116.5 degrees K to 0 degrees K; or

(D) 209.69 degrees R to 0 degrees R.

(16) [(17)] Department--The Texas Department of Licensing and Regulation.

(17) [(18)] Design of a system--Making decisions on the necessary size of equipment, number of grilles, placement and size of supply and return air ducts, and any other requirements affecting the ability of the system to perform the function for which it was designed.

(18) [(19)] Direct supervision--Directing and verifying the design, installation, construction, maintenance, service, repair, alteration, or modification of an environmental air conditioning, refrigeration, process cooling, or process heating product or equipment to assure mechanical integrity. Verification may include, but is not limited to:

(A) personal inspection of a job;

(B) reviewing a checklist or report completed by a person who performed some or all of the work on a job; or

(C) reviewing an inspection report of the job made by a municipal mechanical inspector.

(19) [(20)] Employee--An individual who performs tasks assigned by an employer, and who is subject to the employer's control in all aspects of job performance, except that a licensed air conditioning and refrigeration contractor remains responsible for all air conditioning work he or she performs. An employee's wages are subject to deduction of federal income taxes and social security payments. An employee may be full time, part time, or seasonal. Simultaneous employment with a temporary employment agency, a staff leasing agency, or other employer does not affect an employee's status for the purpose of this chapter.

(20) [(21)] Executive Director--The executive director of the department.

(21) [(22)] Full time employee--An employee who is present on the job either 40 hours a week, or at least 80% of the time the company is offering air conditioning and refrigeration contracting services to the public, whichever is less.

(22) [(23)] In-person supervision--Supervision of air conditioning and refrigeration maintenance work provided while physically present at the same location as the person being supervised.

(23) [(24)] Institution of higher education--An "institution of higher education" or a "private or independent institution of higher education," as those terms are defined by §61.003, Education Code.

(24) [(25)] Licensee--An individual holding a contractor's license of the class and endorsement appropriate to the work performed under the Act and this chapter.

(25) [(26)] Offering to perform--Making a written or oral proposal, contracting in writing or orally to perform air conditioning and refrigeration work, or advertising in any form through any medium that a person or business entity is an air conditioning and refrigeration contractor, or that implies in any way that a person or business entity is available to contract for or perform air conditioning and refrigeration work.

(26) [(27)] Permanent office--Any location, which must be identified by a street address, or other data identifying a rural location, from which a person or business entity conducts the business of an air conditioning and refrigeration contracting company. A location not open to the public, or not located within the state, may serve as a permanent office so long as the department and consumers have access to the licensee required by §1302.252 of the Act to be employed in each permanent office.

(27) [(28)] Portable--Able to be easily transported and readily used as an entire system, without need for dismantling or assembly in whole or in part, or addition of parts, components, or accessories.

(28) [(29)] Primary process medium--A refrigerant or other primary process fluid that is classified in the current ANSI/ASHRAE Standard 34 as Safety Group A1, A2, B1, or B2. Safety Groups A3 and B3 refrigerants are specifically excluded.

(29) [(30)] Proper installation, and service--Installing, servicing, repairing, and maintaining air conditioning and refrigeration equipment in accordance with:

(A) applicable municipal ordinances and codes adopted by a municipality where the installation occurs;

(B) the applicable edition of the Uniform Mechanical Code as adopted under §75.110; or the applicable edition of the International Mechanical Code as adopted under §75.110 and International Fuel Gas Code, in areas where no code has been adopted; or the International Residential Code, as applicable;

(C) the manufacturer's specifications and instructions; and

(D) all requirements for safety and the proper performance of the function for which the equipment or product was designed.

(30) [(31)] Registrant--A person who is registered with the department as a technician under the Act and this chapter.

(31) [(32)] Repair work--Diagnosing and repairing problems with air conditioning, commercial refrigeration, or process cooling or heating equipment, and remedying or attempting to remedy the problem. Repair work does not mean simultaneous replacement of the condensing unit, furnace, and evaporator coil.

(32) [(33)] Self-contained--Constructed so that all required parts, components, and accessories of the air conditioning or heating system are included within the same enclosure.

(33) [(34)] System balancing--A process of adjusting, regulating, or proportioning air distribution equipment or any activity beyond system testing.

(34) [(35)] System testing--Assessing or measuring the performance of the air distribution equipment or air conditioning and refrigeration duct system through equipment that can be attached externally to the system. Testing does not include opening, adjusting, or balancing equipment or ducts or any activity beyond assessing the system through the use of external equipment. Testing does not include testing fire and smoke dampers.

(35) [(36)] Total replacement of a system--Simultaneous replacement of the condensing unit, the evaporator coil, the furnace, if applicable, and the air handling unit, or replacement of a package system.

§75.80. Fees.

(a) All application fees are non-refundable.

(b) Air Conditioning and Refrigeration Contractors.

(1) Contractor license application fee is $115.

(2) Contractor license renewal application fee is $65.

(3) Revised/Duplicate License [License/Certificate/Permit/Registration]--$25.

(4) The application fee for adding an endorsement to an existing contractor license is $25.

(c) Air Conditioning and Refrigeration Technicians.

(1) Registered technician application fee is $20.

(2) Registered technician renewal application fee is $20.

(3) Certified technician application fee is $50.

(4) Certified technician renewal application fee is $35.

(5) [(6)] Revised/Duplicate Certificate/Registration [License/Certificate/Permit/Registration]--$15.

(d) The application fee for approval or renewal of a certification training program is $90.

(e) The fee for a determination under §75.125 is $90.

(f) The department will waive the renewal fee for an air conditioning and refrigeration contractor or certified technician who provides proof, in a manner prescribed by the department, of having served as an instructor of a course within a career and technology education program for at least one academic semester.

(g) Late renewal fees for licenses and registrations issued under this chapter are provided under §60.83.

§75.110. Applicable Codes.

(a) Effective September 1, 2026 [2024], the commission adopts the following applicable codes as referenced in the Act and this chapter:

(1) 2024 [2021] International Residential Code;

(2) 2024 [2021] International Mechanical Code;

(3) 2024 [2021] International Fuel Gas Code; and

(4) 2024 [2021] Uniform Mechanical Code.

(b) The 2021 [2018] codes shall remain in effect through August 31, 2026 [2024]. All air conditioning and refrigeration work permitted or started before September 1, 2026 [2024], may be completed in accordance with the 2021 [2018] code editions.

§75.121. Certified Technician--Examinations.

(a) A person must satisfy the requirements of Texas Occupations Code §1302.5036(1) and (2) [§1302.5036], based on the date the application is filed with the department, prior to taking an examination.

(b) A passing grade is 70%.

(c) A person taking an examination must comply with the department's examination requirements under [under,] Chapter 60, Subchapter E of this title.

(d) Cheating on an examination is grounds for denial, suspension, or revocation of a license and/or an administrative penalty.

§75.124. Career and Technology Education Program Requirements.

(a) Sections 1302.5036 and 1302.5037 of the Act provide a pathway to an air conditioning and refrigeration technician certification for persons who complete a career and technology education program. Pursuant to §1302.5037, the department is required to:

(1) establish standards for the essential knowledge and skills of career and technology education programs offered in Texas public high schools; and

(2) determine on a case-by-case basis whether educational programs offered by private high schools and institutions of higher education are similar to career and technology education programs offered in Texas public high schools.

(b) A career and technology education program must be designed to ensure that students obtain the essential knowledge and skills set out in the following cross-referenced rules of the Texas Education Agency. The minimum number of academic credits required for each course is also noted. Students enrolled in courses identified in paragraphs (2) and (3) below must be provided hands-on practical instruction, including interactive lab work, for at least 80 percent of total classroom time. A career and technology education program may not allow students to obtain credit by examination.

(1) Principles of Construction; Texas Administrative Code Title 19, Part 2, Chapter 127 [130], Subchapter D [B], §127.95 [§130.43]; one credit.

(2) Heating, Ventilation, and Air Conditioning and Refrigeration Technology I; Texas Administrative Code Title 19, Part 2, Chapter 127 [130], Subchapter D [B], §127.111 [§130.59]; one credit.

(3) Heating, Ventilation, and Air Conditioning and Refrigeration Technology II; Texas Administrative Code Title 19, Part 2, Chapter 127 [130], Subchapter D [B], §127.112 [§130.60]; two credits. Instruction regarding sheet metal and fiberglass ductwork, described in §127.112(d)(13) [§130.60(c)(14)] and (14) [(15)], is optional.

(4) Practicum in Construction Technology and Extended Practicum in Construction Technology; Texas Administrative Code Title 19, Part 2, Chapter 127 [130], Subchapter D [B], §127.147 [§130.64] and §127.148 [§130.69]; three total credits.

(A) At least 80 percent of a student's time in a practicum must be spent outside of the classroom and working under the supervision of a department-licensed air conditioning and refrigeration contractor.

(B) A high school or institution of higher education offering a career and technology education program under this section must implement procedures allowing a student to earn course credit for work performed outside of the classroom under the supervision of a department-licensed air conditioning and refrigeration contractor.

(c) A career and technology education program will not be recognized by the department unless it is instructed by:

(1) a department-licensed air conditioning and refrigeration contractor; or

(2) a certified technician whose certification was issued on or after September 1, 2018.

(d) A career and technology education program offered by an institution of higher education may not be more stringent than a program offered by a public high school.

(e) The department will recognize an educational program offered by a private high school or institution of higher education as a "career and technology education program" for purposes of §75.120 if the department determines that the educational program substantially complies with the requirements of this section.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 11, 2026.

TRD-202601993

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: June 21, 2026

For further information, please call: (512) 463-7750

STATUTORY AUTHORITY

The proposed repeal is proposed under Texas Occupations Code, Chapters 51 and 1302, which authorize the Texas Commission of Licensing and Regulation, the Department’s governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed repeal are those set forth in Texas Occupations Code, Chapters 51 and 1302. No other statutes, articles, or codes are affected by the proposed repeal.

§75.28. Registered Technician--Certified Technician (Legacy) Designation.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 11, 2026.

TRD-202601994

Deanne Rienstra

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: June 21, 2026

For further information, please call: (512) 463-7750