TLC: Insurance Code Proposed Chapters

80C145(2) PB

SECTION ____. CONFORMING AMENDMENT. Subtitle B, Title 12, Occupations Code, is amended by adding Chapter 1960 to read as follows:

CHAPTER 1960. FIRE DETECTION AND ALARM DEVICE INSTALLATION

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 1960.001. PURPOSE. The purpose of this chapter is to safeguard lives and property by:

(1) regulating the planning, certifying, leasing, selling, servicing, installing, monitoring, and maintaining of fire detection and fire alarm devices and systems; and

(2) except as provided by rules adopted under Section 1960.051 or 1960.052, prohibiting fire detection and fire alarm devices, equipment, and systems not labeled or listed by a nationally recognized testing laboratory. (V.T.I.C. Art. 5.43-2, Sec. 1.)

Source Law

Art. 5.43-2

Sec. 1. The purpose of this article is to regulate the planning, certifying, leasing, selling, servicing, installing, monitoring, and maintaining of fire detection and fire alarm devices and systems and, except as provided by rules adopted under Section 6 of this article, to prohibit fire detection and fire alarm devices, equipment, and systems not labeled or listed by a nationally recognized testing laboratory, in the interest of safeguarding lives and property.

Revisor's Note

Section 1, V.T.I.C. Article 5.43-2, refers to "rules adopted under Section 6" of that article. The relevant parts of Section 6, V.T.I.C. Article 5.43-2, are revised in Sections 1960.051 and 1960.052. The revised law is drafted accordingly.

Revised Law

Sec. 1960.002. DEFINITIONS. Except as otherwise provided by this chapter, in this chapter:

(1) "Commissioner" means the commissioner of insurance.

(2) "Department" means the Texas Department of Insurance.

(3) "Fire alarm device" means any device capable, through audible or visible means, of warning that fire or combustion has occurred or is occurring.

(4) "Fire alarm planning superintendent" means a licensed individual designated by a registered firm to:

(A) plan a fire alarm or detection system that conforms to applicable adopted National Fire Protection Association standards or other adopted standards; and

(B) certify that each fire alarm or detection system as planned meets the standards as provided by law.

(5) "Fire alarm technician" means a licensed individual designated by a registered firm to:

(A) inspect and certify that each fire alarm or detection system as installed meets the standards provided by law; or

(B) perform or directly supervise the servicing or maintaining of a previously installed fire alarm device or system and certify that service or maintenance.

(6) "Fire detection device" means any arrangement of materials, the sole function of which is to indicate the existence of fire, smoke, or combustion in its incipient stages.

(7) "Individual" means a natural person, including an owner, manager, officer, employee, occupant, or other individual.

(8) "Installation" means:

(A) the initial placement of equipment; or

(B) the extension, modification, or alteration of equipment already in place.

(9) "Insurance agent" means:

(A) an individual, firm, or corporation licensed under:

(i) Subchapter E, Chapter 981, Insurance Code; or

(ii) Subchapters A-E or G, Chapter 4051, Insurance Code; or

(B) an individual authorized to represent an insurance fund or pool created by a municipality, county, or other political subdivision of this state under Chapter 791, Government Code.

(10) "Maintenance" means the maintenance of a fire alarm device or a fire detection device in a condition of repair that provides performance as originally designed or intended.

(11) "Monitoring" means the receipt of fire alarm and supervisory signals and the retransmission or communication of those signals to a fire service communications center in this state or serving property in this state.

(12) "Organization" means a corporation, a government or a governmental subdivision or agency, a business trust, an estate, a trust, a partnership, a firm or association, two or more individuals with a joint or common interest, or any other legal or commercial entity.

(13) "Registered firm" means an individual or organization that holds a registration certificate.

(14) "Residential fire alarm superintendent" means a licensed individual designated by a registered firm to:

(A) plan a residential single-family or two-family fire alarm or detection system that conforms to applicable adopted National Fire Protection Association standards or other adopted standards; and

(B) certify that each fire alarm or detection system as planned meets the standards as provided by law.

(15) "Sale" means the sale or offer for sale, lease, or rent of any merchandise, equipment, or service at wholesale or retail, to the public or any individual, for an agreed sum of money or other consideration.

(16) "Service" or "servicing" means inspection, maintenance, repair, or testing of a fire alarm device or a fire detection device. (V.T.I.C. Art. 5.43-2, Secs. 2(1), (2), (5), (6), (7), (8), (9), (10), (11), (12) (part), (13) (part), (14), (15), (16) (part); New.)

Source Law

Sec. 2. As used in this article:

(1) "Person" means a natural person, including an owner, manager, officer, employee, occupant, or individual.

(2) "Organization" means a corporation, government, or governmental subdivision or agency, business trust, estate, trust, partnership, firm or association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(5) "Sale" means sale or offering for sale, lease, or rent any merchandise, equipment, or service at wholesale or retail, to the public or any person, for an agreed sum of money or other consideration.

(6) "Installation" means the initial placement of equipment and/or the extension, modification, or alteration of equipment already in place.

(7) "Maintenance" means to maintain in a condition of repair that will allow performance as originally designed or intended.

(8) "Monitoring" means the receipt of fire alarm and supervisory signals and retransmission or communication of those signals to a fire service communications center that is located in this state or serves property in this state.

(9) "Service, servicing" means inspecting, maintaining, repairing, or testing.

(10) "Fire detection device" means any arrangement of materials, the sole function of which is to provide indication of fire, smoke, or combustion in its incipient stages.

(11) "Fire alarm device" means any device capable, through audible and/or visible means, of sounding a warning that fire or combustion has taken or is taking place.

(12) "Fire alarm technician" means a licensed individual who shall be designated by a registered firm to:

(A) inspect and certify that each fire alarm or detection system as installed meets the standards as provided for by law; or

(B) perform or directly supervise the servicing or maintaining of a previously installed fire alarm device or system and to certify such service or maintenance… .

(13) "Fire alarm planning superintendent" means a licensed individual who shall be designated by a registered firm to plan any fire alarm or detection system conforming to applicable adopted National Fire Protection Association standards or other adopted standards and to certify that each fire alarm or detection system as planned meets the standards as provided by law… .

(14) "Insurance agent" means:

(A) a person, firm, or corporation licensed under Article 21.14 or 1.14-2 of this code;

(B) a salaried, state, or special agent; or

(C) a person authorized to represent an insurance fund or pool created by a city, county, or other political subdivision of the state under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes).

(15) "Registered firm" means a person or organization holding a certificate of registration.

(16) "Residential fire alarm superintendent" means a licensed individual who shall be designated by a registered firm to plan a residential single-family or two-family fire alarm or detection system conforming to applicable adopted National Fire Protection Association standards or other adopted standards and to certify that each fire alarm or detection system as planned meets the standards as provided by law… .

Revisor's Note

(1) Section 2(4), V.T.I.C. Article 5.43-2, refers to the "State Board of Insurance." Chapter 685, Acts of the 73rd Legislature, Regular Session, 1993, abolished the State Board of Insurance and transferred its functions to the commissioner of insurance and the Texas Department of Insurance. For purposes of the law being revised in this chapter, Section 31.001, Insurance Code, defines "commissioner" and "department" as "commissioner of insurance" and "Texas Department of Insurance," respectively. The revised law includes these definitions in this chapter for accuracy and for the convenience of the reader. Throughout this chapter, the revised law substitutes, as appropriate, references to the commissioner or the department for references to the State Board of Insurance. The revised law also omits Section 2(4), V.T.I.C. Article 5.43-2. The omitted law reads:

(4) "Board" means the State Board of Insurance.

(2) Section 2(1), V.T.I.C. Article 5.43-2, defines a "person" as "a natural person, including an owner, manager, officer, employee, occupant, or individual." The revised law substitutes "individual" for "person" because a "natural person" is "an individual" and because the Code Construction Act contains a different definition of "person." See Section 311.005(2), Government Code, which applies to the Occupations Code. Conforming changes are made throughout this chapter.

(3) Section 2(7), V.T.I.C. Article 5.43-2, defines "maintenance" as "to maintain in a condition of repair that will allow performance as originally designed or intended." The revised law adds a reference to "a fire alarm device or a fire detection device" for the convenience of the reader because, in context, those devices are the only devices being maintained.

(4) Section 2(9), V.T.I.C. Article 5.43-2, defines "service" and "servicing" as "inspecting, maintaining, repairing or testing." The revised law adds a reference to "a fire alarm device or a fire detection device" for the convenience of the reader because, in context, those devices are the only devices being serviced.

(5) Section 2(14)(A), V.T.I.C. Article 5.43-2, refers to an insurance agent "licensed under Article 21.14 or 1.14-2 of this code." V.T.I.C Article 21.14 was revised as Subchapters A-E and G, Chapter 4051, Insurance Code, and those portions of V.T.I.C. Article 1.14-2 relating to licensing were revised as Subchapter E, Chapter 981, Insurance Code. The revised law is drafted accordingly.

(6) Section 2(14)(B), V.T.I.C. Article 5.43-2, refers to "a salaried, state, or special agent." The revised law omits the reference to "salaried, state, or special agent" because those are obsolete terms for types of property insurance agents that are included in the category of agents licensed under Subchapters A-E and G, Chapter 4051, Insurance Code.

(7) Section 2(14)(C), V.T.I.C. Article 5.43-2, refers to "an insurance fund or pool created by a city, county, or other political subdivision … under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes)." The revised law substitutes "municipality" for "city" because that is the term used in the Local Government Code. In addition, Article 4413(32c), Vernon's Texas Civil Statutes, was revised in 1991 as Chapter 791, Government Code. The revised law is drafted accordingly.

Revised Law

Sec. 1960.003. EFFECT ON LOCAL REGULATION. (a) This chapter and the rules adopted under this chapter have uniform force and effect throughout this state. A municipality or county may not enact an ordinance or rule inconsistent with this chapter or rules adopted under this chapter. An inconsistent ordinance or rule is void and has no effect.

(b) Notwithstanding Subsection (a), a municipality or county may:

(1) mandate that a fire alarm or detection system be installed in certain facilities, if the installation conforms to applicable state law;

(2) require a better type of alarm or detection system or otherwise safer condition than the minimum required by state law; and

(3) require regular inspections by local officials of smoke detectors in dwelling units, as that term is defined by Section 92.251, Property Code, and require the smoke detectors to be operational at the time of inspection.

(c) A municipality, county, or other political subdivision of this state may not require, as a condition of engaging in business or performing any activity authorized under this chapter, that a registered firm, a license holder, or an employee of a license holder:

(1) obtain a registration, franchise, or license from the political subdivision;

(2) pay any fee or franchise tax to the political subdivision; or

(3) post a bond.

(d) Notwithstanding any other provision of this section or Section 1960.155, a municipality or county may require a registered firm to obtain a permit and pay a permit fee for the installation of a fire alarm or fire detection device or system and require the installation of such a system in conformance with the building code or other construction requirements of the municipality or county and state law.

(e) Notwithstanding Subsection (d), a municipality or county may not impose qualification or financial responsibility requirements other than proof of a registration certificate. (V.T.I.C. Art. 5.43-2, Secs. 3(a), (c).)

Source Law

Sec. 3. (a) The provisions of this article and the rules and regulations promulgated under this article shall have uniform force and effect throughout the state and no municipality or county shall enact any ordinances, rules, or regulations inconsistent with the provisions of this article or rules and regulations promulgated pursuant to this article and any such ordinances, rules, or regulations are void and shall have no effect; provided, however, that a municipality or county shall have the right to:

(1) mandate that a fire alarm or detection system be installed in certain facilities, so long as said installation conforms to applicable state law;

(2) require a better type of alarm or detection system or otherwise safer conditions than the minimum required by state law; and

(3) require regular inspections by local officials of smoke detectors in dwelling units, as defined by Section 92.251, Property Code, and require the smoke detectors to be operational at the time of inspection.

(c) Registered companies, licensees, and employees of licensees shall not be required to obtain any registration, franchise, or license from or pay any fee or franchise tax to or post any bond by any municipality, county, or other political subdivision of this state to engage in business or perform any activities authorized under this Act. Notwithstanding any other provisions of this section, a municipality or county may require a registered firm to obtain a permit and pay a fee therefor for the installation of a fire alarm or fire detection device or system and require that the installation of such system be in conformance with the building code or other construction requirements of the municipality or county and state law but may not impose qualification or financial responsibility requirements other than proof of a valid certificate of registration.

Revisor's Note

(1) Section 3(a), V.T.I.C. Article 5.43-2, refers to "rules and regulations" promulgated under Article 5.43-2 and to certain ordinances, rules, or regulations adopted by a municipality or county. Throughout this chapter, the revised law omits references to "regulations" in this context because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation. That definition applies to the law revised in this chapter.

(2) Section 3(c), V.T.I.C. Article 5.43-2, refers to "registered companies." The revised law substitutes "registered firm" for "registered company" because, in context, the terms have the same meaning and "registered firm" is the defined term under Section 2, V.T.I.C. Article 5.43-2, revised in this chapter as Section 1960.002.

(3) Section 3(c), V.T.I.C. Article 5.43-2, refers to proof of "a valid certificate of registration." The revised law omits "valid" as unnecessary because the word does not add to the clear meaning of the law. For example, a document purporting to be a certificate of registration is not a certificate of registration if it is not valid.

Revised Law

Sec. 1960.004. PROVISION OF CERTAIN SERVICES BY POLITICAL SUBDIVISION. (a) In this section, "monitoring" means the receipt of fire alarm or supervisory signals or retransmission or communication of those signals to a fire service communications center that is located in this state or serves property in this state.

(b) Except as provided by Subsection (c), a political subdivision may not offer residential alarm system sales, service, installation, or monitoring unless the political subdivision has been providing monitoring services to residences within the boundaries of the political subdivision as of September 1, 1999. Any fee charged by the political subdivision under this subsection may not exceed the cost of the monitoring.

(1) offer service, installation, or monitoring for property owned by the political subdivision or another political subdivision;

(2) allow for the response to an alarm or detection device by:

(A) a law enforcement agency or fire department; or

(B) a law enforcement officer or firefighter acting in an official capacity; or

(3) offer monitoring to a financial institution, as defined by Section 59.301, Finance Code, that requests, in writing, that the political subdivision provide monitoring service to the financial institution.

(d) Subsection (b) does not apply to a political subdivision:

(1) in a county with a population of less than 80,000; or

(2) in which monitoring is not otherwise provided or available.

(e) This section is not intended to require a political subdivision to hold a license under this chapter. (V.T.I.C. Art. 5.43-2, Secs. 7(b), (c), (d), (e).)

Source Law

(b) Except as provided by Subsection (c), a political subdivision may not offer residential alarm system sales, service, installation, or monitoring unless it has been providing monitoring services to residences within the boundaries of the political subdivision as of September 1, 1999. Any fee charged by the political subdivision may not exceed the cost of the monitoring.

(1) offer service, installing, or monitoring for property owned by the political subdivision or another political subdivision;

(2) allow for the response of an alarm or detection device by a law enforcement agency or fire department or by a law enforcement officer or firefighter acting in an official capacity; or

(d) The limitations in Subsection (b) do not apply to a political subdivision in a county with a population of less than 80,000 or in a political subdivision where monitoring is not otherwise provided or available.

(e) For purposes of Subsections (b), (c), and (d), the definition of "monitoring" means the receipt of fire alarm or supervisory signals or retransmission or communication of those signals to a fire service communications center that is located in this state or serves property in this state. This is not intended to require a political subdivision to be licensed under Article 5.43-2, Insurance Code.

[Sections 1960.005-1960.050 reserved for expansion]

SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONER, DEPARTMENT,

AND STATE FIRE MARSHAL

Revised Law

Sec. 1960.051. ADMINISTRATION OF CHAPTER; RULES. (a) The department shall administer this chapter.

(b) The commissioner may adopt rules as necessary to administer this chapter, including rules the commissioner considers necessary to administer this chapter through the state fire marshal. (V.T.I.C. Art. 5.43-2, Secs. 4 (part), 6(a) (part).)

Source Law

Sec. 4. The board shall administer this article and it may issue rules and regulations which it considers necessary to its administration through the state fire marshal… .

Sec. 6. (a) The commissioner may adopt rules as necessary to administer this article… .

Revised Law

Sec. 1960.052. ADOPTION OF RULES; STANDARDS. (a) In adopting necessary rules, the commissioner may use:

(1) recognized standards, such as, but not limited to:

(A) standards of the National Fire Protection Association;

(B) standards recognized by federal law or regulation; or

(2) the National Electrical Code; or

(3) information provided by individual manufacturers.

(b) Under rules adopted under Section 1960.051, the department may create specialized licenses or registration certificates for an organization or individual engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining fire alarm or fire detection devices or systems. The rules must establish appropriate training and qualification standards for each kind of license and certificate.

(c) The commissioner shall also adopt standards applicable to fire alarm devices, equipment, or systems regulated under this chapter. In adopting standards under this subsection, the commissioner may allow the operation of a fire alarm monitoring station that relies on fire alarm devices or equipment approved or listed by a nationally recognized testing laboratory without regard to whether the monitoring station is approved or listed by a nationally recognized testing laboratory if the operator of the station demonstrates that the station operating standards are substantially equivalent to those required to be approved or listed. (V.T.I.C. Art. 5.43-2, Secs. 4 (part), 6(a) (part), (b).)

Source Law

Sec. 4. … The board, in promulgating necessary rules and regulations, may utilize recognized standards such as, but not limited to, those of the National Fire Protection Association, the National Electrical Code, those recognized by federal law or regulation, those published by any nationally recognized standards-making organization, or any information furnished by individual manufacturers.

Sec. 6. (a) … The rules may establish specialized licenses and certificates of registration for organizations or persons engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining fire alarm or fire detection devices or systems. The rules shall establish appropriate training and qualification standards for each kind of license and certificate of registration.

(b) The commissioner shall also adopt standards applicable to any fire alarm device, equipment, or system regulated under this article. In adopting standards under this subsection, the commissioner may permit the operation of a fire alarm monitoring station that relies on fire alarm devices or equipment that is approved or listed by a nationally recognized testing laboratory, without regard to whether the monitoring station is approved or listed by a nationally recognized testing laboratory as long as the operator of the station demonstrates that its operating standards are substantially equivalent to those required in order to be approved or listed.

Revised Law

Sec. 1960.053. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The commissioner may not adopt rules restricting advertising or competitive bidding by the holder of a license or registration certificate issued under this chapter except to prohibit false, misleading, or deceptive practices.

(b) In the commissioner's rules to prohibit false, misleading, or deceptive practices, the commissioner may not include a rule that:

(1) restricts the use of any medium for advertising;

(2) restricts the use of a license or registration certificate holder's personal appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the license or registration certificate holder; or

(4) restricts the license or registration certificate holder's advertisement under a trade name. (V.T.I.C. Art. 5.43-2, Sec. 6A.)

Source Law

Sec. 6A. (a) The commissioner may not adopt rules restricting competitive bidding or advertising by the holder of a license or registration issued under this article except to prohibit false, misleading, or deceptive practices.

(b) In the commissioner's rules to prohibit false, misleading, or deceptive practices, the commissioner may not include a rule that:

(1) restricts the use of any medium for advertising;

(2) restricts the use of a license or registration holder's personal appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the license or registration holder; or

(4) restricts the license or registration holder's advertisement under a trade name.

Revised Law

Sec. 1960.054. FEES. (a) The commissioner shall set the fee for:

(1) an initial registration certificate in an amount not to exceed $500;

(2) the renewal of a registration certificate for each year in an amount not to exceed $500;

(3) the renewal of a registration certificate for an individual or organization engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices in an amount not to exceed $250 for each year;

(4) an initial branch office registration certificate in an amount not to exceed $150;

(5) the renewal of a branch office registration certificate for each year in an amount not to exceed $150;

(6) an initial or renewal training school approval in an amount not to exceed $500;

(7) an initial or renewal of a training school instructor approval in an amount not to exceed $50;

(8) an initial license in an amount not to exceed $120; and

(9) the renewal of a license for each year in an amount not to exceed $100.

(b) Unless the examination or reexamination for a license is administered by a testing service, the commissioner shall set a nonrefundable fee for:

(1) the initial examination in an amount not to exceed $30; and

(2) each reexamination in an amount not to exceed $20.

(1) a duplicate registration certificate or license issued under this chapter; and

(2) any request requiring changes to a registration certificate or license. (V.T.I.C. Art. 5.43-2, Secs. 5(a) (part), (b) (part), (c) (part), (d), (i), 5D(b) (part), (c) (part).)

Source Law

Sec. 5. (a) … The initial fee for the certificate of registration must be in an amount not to exceed $500 and the renewal fee for each year thereafter must be in an amount not to exceed $500. The renewal fee for a person or organization engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices shall be in an amount not to exceed $250… .

(b) … The initial fee for this branch office registration certificate must be in an amount not to exceed $150 and the renewal fee for each year thereafter must be in an amount not to exceed $150. …

(c) … The initial fee for the license must be in an amount not to exceed $120 and the renewal fee for each year thereafter must be in an amount not to exceed $100. Unless the examination is administered by a testing service, a nonrefundable fee for the initial examination must not exceed $30. Unless the reexamination is administered by a testing service, a nonrefundable fee not to exceed $20 shall be charged for each reexamination.

(d) A fee in an amount not to exceed $20 shall be charged for a duplicate certificate of registration or license issued by the board and for any requested change to a certificate of registration or license.

(i) The board shall, within the limits fixed by this section, prescribe the fees to be charged under this section.

[Sec. 5D]

(b) … the initial and renewal fee for a training school approval shall not exceed $500. …

Revised Law

Sec. 1960.055. DEPOSIT IN OPERATING ACCOUNT. The fees collected under this chapter shall be deposited in the state treasury to the credit of the Texas Department of Insurance operating account. (V.T.I.C. Art. 5.43-2, Sec. 8.)

Source Law

Sec. 8. The fees herein provided for, when collected, shall be deposited in the State Treasury to the credit of the State Board of Insurance operating fund.

Revisor's Note

Section 8, V.T.I.C. Article 5.43-2, requires certain money to be deposited "in the State Treasury to the credit of the State Board of Insurance operating fund." Under Chapter 4, Acts of the 72nd Legislature, 1st Called Session, 1991, the Texas Department of Insurance operating fund (the later name of the State Board of Insurance operating fund) was converted to an account in the general revenue fund. The revised law is drafted accordingly.

[Sections 1960.056-1960.100 reserved for expansion]

SUBCHAPTER C. FIRE DETECTION AND ALARM DEVICES ADVISORY COUNCIL

Revised Law

Sec. 1960.101. ADVISORY COUNCIL; APPOINTMENT. The commissioner shall appoint an advisory council consisting of seven individuals as follows:

(1) three individuals who are employed by a registered firm in the fire protection industry and who have at least three years' experience in the sale, installation, maintenance, or manufacture of fire alarm or fire detection devices;

(2) two individuals who are:

(A) experienced in the engineering of fire prevention services; or

(B) members of a fire protection association;

(3) one individual who is an experienced fire prevention officer employed by a municipality or county; and

(4) one individual who:

(A) is employed by a registered firm; and

(B) has at least three years' experience in the operation of a central fire alarm monitoring station. (V.T.I.C. Art. 5.43-2, Sec. 6(d).)

Source Law

(d) The advisory council is appointed by the commissioner and is composed of seven individuals as follows:

(1) three individuals employed by any registered firm in the fire protection industry who have a minimum of three years experience in the sale, installation, maintenance, or manufacturing of fire alarm or fire detection devices;

(2) two individuals who must either be experienced in the engineering of fire prevention services or be a member of a fire protection association;

(3) one person experienced and employed by a municipality or county as a fire prevention officer; and

(4) one person who is employed by any registered firm and who has at least three years experience in the operation of a central fire alarm monitoring station.

Revised Law

Sec. 1960.102. ADVISORY COUNCIL DUTIES. The advisory council shall periodically:

(1) review rules implementing this chapter; and

(2) recommend rule changes to the commissioner. (V.T.I.C. Art. 5.43-2, Sec. 6(c).)

Source Law

(c) An advisory council appointed in accordance with Subsection (d) of this section shall periodically review rules implementing this article and recommend changes in the rules to the commissioner.

[Sections 1960.103-1960.150 reserved for expansion]

SUBCHAPTER D. REGISTRATION, LICENSE, AND APPROVAL REQUIREMENTS

Revised Law

Sec. 1960.151. FIRM REGISTRATION CERTIFICATE REQUIRED; LIMITED CERTIFICATE. (a) An individual or organization may not engage in the business of planning, certifying, leasing, selling, installing, servicing, monitoring, or maintaining fire alarm or fire detection devices or systems unless the individual or organization holds a registration certificate issued by the department.

(b) The department may issue a limited registration certificate to an individual or organization whose business is restricted to monitoring.

(c) Applications for registration certificates and qualifications for those certificates are subject to rules adopted by the commissioner. (V.T.I.C. Art. 5.43-2, Secs. 5(a) (part), 7(a) (part), 10(a) (part).)

Source Law

Sec. 5. (a) Each person or organization engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining fire alarm or fire detection devices or systems shall have a certificate of registration issued by the commissioner. … A limited certificate of registration may be issued to persons or organizations whose business is restricted to monitoring.

Sec. 7. (a) No person or organization may do any of the following:

(1) plan, certify, lease, sell, service, install, monitor, or maintain fire alarm or fire detection devices or systems without a valid … certificate of registration;

…

Sec. 10. (a) Applications and qualifications for certificates and … issued hereunder shall be made pursuant to rules and regulations adopted by the board.

Revisor's Note

Section 7(a)(1), V.T.I.C. Article 5.43-2, refers to a "valid" certificate of registration. The revised law omits "valid" for the reasons stated in Revisor's Note (3) to Section 1960.003.

Revised Law

Sec. 1960.152. BRANCH OFFICE REGISTRATION CERTIFICATE REQUIRED. (a) Except as provided by Subsection (c), each separate office location of a registered firm, other than the location identified on the firm's registration certificate, must have a branch office registration certificate issued by the department.

(b) Before issuing a branch office registration certificate, the department must determine that the branch office location is part of a registered firm.

(c) A registered firm that is engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices is not required to apply for or obtain a branch office registration certificate for a separate office or location of the firm. (V.T.I.C. Art. 5.43-2, Sec. 5(b) (part).)

Source Law

(b) Each separate office location of a registered firm, other than the location identified on the certificate of registration, shall have a branch office registration certificate issued by the commissioner… . The commissioner shall identify each branch office location as a part of a registered organization before a branch office registration certificate may be issued. A registered person or firm that is engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices shall not be required to apply for or obtain a branch office registration certificate for a separate office or location of the registered firm.

Revisor's Note

Section 5(b), V.T.I.C. Article 5.43-2, refers to "a registered person or firm that is engaged in the business of planning … ." The revised law substitutes "registered firm" for "registered person or firm" because, in context, "person" is included within the meaning of "registered firm." Section 2(15), V.T.I.C. Article 5.43-2, revised as Section 1960.002(13), defines registered firm as "a person or organization" that holds a registration certificate. Similar changes have been made throughout this chapter.

Revised Law

Sec. 1960.153. REQUIRED INSURANCE COVERAGE FOR REGISTRATION CERTIFICATE. (a) The department may not issue a registration certificate under this chapter unless the applicant files with the department evidence of a general liability insurance policy that includes products and completed operations coverage. The policy must be conditioned to pay on behalf of the insured those amounts that the insured becomes legally obligated to pay as damages because of bodily injury and property damage caused by an occurrence involving the insured or the insured's officer, agent, or employee in the conduct of any business that requires a registration certificate or license under this chapter.

(b) Unless the commissioner increases or decreases the limits under rules adopted under Section 1960.051(b), the limits of insurance coverage required by Subsection (a) must be at least:

(1) $100,000 combined single limits for bodily injury and property damage for each occurrence; and

(2) $300,000 aggregate for all occurrences for each policy year.

(c) The evidence of insurance required by this section must be in the form of a certificate of insurance executed by an insurer authorized to engage in the business of insurance in this state and countersigned by an insurance agent licensed in this state. A certificate of insurance for surplus lines coverage procured in compliance with Chapter 981, Insurance Code, through a surplus lines agent that is licensed under Subchapter E, Chapter 981, Insurance Code, and resident in this state may be filed with the department as evidence of the coverage required by this section.

(d) An insurance certificate executed and filed with the department under this section remains in force until the insurer has terminated future liability by the notice required by the department.

(e) Failure to maintain the liability insurance required by this section constitutes grounds for the denial, suspension, or revocation, after notice and opportunity for hearing, of a registration certificate issued under this chapter.

(f) For an individual or organization licensed to install or service burglar alarms under Chapter 1702, compliance with the insurance requirements of that chapter constitutes compliance with the insurance requirements of this section if the insurance held by the individual or organization complies with the requirements of this section in amounts and types of coverage.

(g) This section does not affect the rights of the insured to negotiate or contract for limitations of liability with a third party, including a customer of the insured. (V.T.I.C. Art. 5.43-2, Secs. 5B(a), (b), (c), (d), (e), (g).)

Source Law

Sec. 5B. (a) The board shall not issue a certificate of registration under this article unless the applicant files with the board evidence of a general liability insurance policy that includes products and completed operations coverage. The policy shall be conditioned to pay on behalf of the insured those sums that the insured becomes legally obligated to pay as damages because of bodily injury and property damage caused by an occurrence involving the insured or the insured's servant, officer, agent, or employee in the conduct of any business registered or licensed under this article.

(b) The limits of insurance coverage required by Subsection (a) of this section shall not be less than $100,000 combined single limits for bodily injury and property damage for each occurrence and not less than $300,000 aggregate for all occurrences per policy year, unless the board increases or decreases those limits under Section 6 of this article.

(c) The evidence of general liability insurance required by this section must be in the form of a certificate of insurance executed by an insurer authorized to do business in this state and countersigned by an insurance agent licensed in this state. A certificate of insurance for surplus lines coverage procured in compliance with Article 1.14-2 of this code through a licensed Texas surplus lines agent resident in this state may be filed with the board as evidence of coverage required by this section. Insurance certificates executed and filed with the board under this section remain in force until the insurer has terminated future liability by the notice required by the board.

(d) Failure to maintain the liability insurance required under this section constitutes grounds for the denial, suspension, or revocation of a certificate of registration issued under this article after notice and opportunity for hearing.

(e) For a person who is licensed to install or service burglar alarms under the Private Investigators and Private Security Agencies Act, as amended (Article 4413(29bb), Vernon's Texas Civil Statutes), compliance with the insurance requirements of that Act constitutes compliance with the insurance requirements of this section if the insurance held by the person complies with the requirements of this section in amounts and types of coverage.

(g) This section does not affect the rights of the insured to negotiate or contract for limitations of liability with a third party, including a customer of the insured.

Revisor's Note

(1) Section 5B(a), V.T.I.C. Article 5.43-2, refers to "the insured's servant, officer, agent, or employee." The revised law omits the reference to "servant" because that term is included within the meaning of "employee" or "agent."

(2) Section 5B(b), V.T.I.C. Article 5.43-2, refers to increasing or decreasing limits "under Section 6 of this article." Section 6, V.T.I.C. Article 5.43-2, is revised in various places in this chapter, and the general rulemaking authority language in Section 6(a) is revised in Section 1960.051(b). The revised law, therefore, substitutes "under rules adopted under Section 1960.051(b)" for the more general reference to Section 6 because, in context, it is clear that the Section 6 reference is to the commissioner's authority to change the limits by rule.

(3) Section 5B(c), V.T.I.C. Article 5.43-2, refers to a "certificate of insurance for surplus lines coverage procured in compliance with Article 1.14-2 of this code through a licensed Texas surplus lines agent resident in this state." V.T.I.C. Article 1.14-2 was revised in part as Chapter 981, Insurance Code. The provisions of that article relating to the licensing of surplus lines insurance agents were revised as Subchapter E of that chapter. The revised law is drafted accordingly.

(4) Section 5B(e), V.T.I.C. Article 5.43-2, refers to "a person who is licensed to install or service burglar alarms under the Private Investigators and Private Security Agencies Act, as amended (Article 4413(29bb), Vernon's Texas Civil Statutes)." The revised law omits the reference to "as amended" because it is unnecessary. Under Section 311.027, Government Code (Code Construction Act), unless expressly provided otherwise, a reference to a statute applies to all reenactments, revisions, or amendments of the statute. That section applies to the revised law. Also, Article 4413(29bb) was codified in 1999 as Chapter 1702, Occupations Code. The revised law is drafted accordingly.

(5) Section 5B(f), V.T.I.C. Article 5.43-2, provides that compliance with "the bond and insurance requirements" of the Private Investigators and Private Security Agencies Act constitutes compliance with "the bond and insurance requirements of this section." The revised law omits Section 5B(f) as unnecessary. Section 5B(e), V.T.I.C. Article 5.43-2, revised in this section, provides that compliance with the insurance requirements of the Private Investigators and Private Security Agencies Act constitutes compliance with the insurance requirements of Section 5B, V.T.I.C. Article 5.43-2. Section 5B does not include bond requirements for the issuance of a registration certificate. The omitted law reads:

(f) For a person who is licensed to install or service burglar alarms under the Private Investigators and Private Security Agencies Act, as amended (Article 4413(29bb), Vernon's Texas Civil Statutes), compliance with the bond and insurance requirements of that Act constitutes compliance with the bond and insurance requirements of this section.

Revised Law

Sec. 1960.154. FIRE ALARM TECHNICIAN, RESIDENTIAL FIRE ALARM SUPERINTENDENT, AND FIRE ALARM PLANNING SUPERINTENDENT. (a) Each registered firm, including a firm engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices, must employ at least one employee who is a fire alarm technician, residential fire alarm superintendent, or fire alarm planning superintendent.

(b) A fire alarm technician, residential fire alarm superintendent, or fire alarm planning superintendent must hold a license issued by the department, conditioned on the successful completion of a written license examination.

(c) To engage in the activity for which the license is granted, an individual licensed under this chapter must be an employee or agent of an individual or entity that holds a registration certificate.

(d) A fire alarm technician may perform or supervise monitoring. A fire alarm planning superintendent may act as a fire alarm technician or a residential fire alarm superintendent. A residential fire alarm superintendent may act as a fire alarm technician.

(e) Applications for licenses and qualifications for those licenses are subject to rules adopted by the commissioner. (V.T.I.C. Art. 5.43-2, Secs. 2(12) (part), (13) (part), (16) (part), 5(a) (part), (c) (part), (f), 5D(a) (part), 10(a) (part).)

Source Law

[Sec. 2]

(12)(B) … A fire alarm technician may perform or supervise monitoring.

(13) … A fire alarm planning superintendent can function as a fire alarm technician or a residential fire alarm superintendent.

(16) … A residential fire alarm superintendent can function as a fire alarm technician.

Sec. 5. (a) … A registered person or firm shall retain at least one fire alarm technician, residential fire alarm superintendent or fire alarm planning superintendent as an employee. A registered person or firm that is engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining exclusively single station devices shall have at least one fire alarm technician, residential fire alarm superintendent, or fire alarm planning superintendent. …

(c) Each fire alarm technician, residential fire alarm superintendent or fire alarm planning superintendent must obtain a license issued by the board. …

(f) A person licensed pursuant to this article shall be an employee or agent of an organization that holds a valid certificate of registration in order to engage in the activity for which the license was granted.

Sec. 5D. (a) Each applicant for a license must pass a written examination. …

Sec. 10. (a) Applications and qualifications for … licenses issued hereunder shall be made pursuant to rules and regulations adopted by the board.

Revisor's Note

Section 5(f), V.T.I.C. Article 5.43-2, refers to a "valid certificate." The revised law omits "valid" for the reasons stated in Revisor's Note (3) to Section 1960.003.

Revised Law

Sec. 1960.155. ACTIVITIES NOT REGULATED BY CHAPTER. The licensing provisions of this chapter do not apply to:

(1) an individual or organization in the business of building construction that installs electrical wiring and devices that may include, in part, the installation of a fire alarm or detection system if:

(A) the individual or organization is a party to a contract that provides that:

(i) the installation will be performed under the direct supervision of and certified by a licensed employee or agent of a firm registered to install and certify such an alarm or detection device; and

(ii) the registered firm assumes full responsibility for the installation of the alarm or detection device; and

(B) the individual or organization does not plan, certify, lease, sell, service, or maintain fire alarms or detection devices or systems;

(2) an individual or organization that:

(A) owns and installs a fire detection or fire alarm device on the individual's or organization's own property; or

(B) if the individual or organization does not charge for the device or its installation, installs the device for the protection of the individual's or organization's personal property located on another's property and does not install the device as a normal business practice on the property of another;

(3) an individual who holds a license or other authority issued by a municipality to practice as an electrician and who installs fire or smoke detection and alarm devices only in a single family or multifamily residence if:

(A) the devices installed are:

(i) single station detectors; or

(ii) multiple station detectors capable of being connected in a manner that actuation of one detector causes all integral or separate alarms to operate if the detectors are not connected to a control panel or to an outside alarm, do not transmit a signal off the premises, and do not use more than 120 volts; and

(B) all installations comply with the adopted edition of Household Fire Warning Equipment, National Fire Protection Association Standard No. 74;

(4) an individual or organization that:

(A) sells fire detection or fire alarm devices exclusively over-the-counter or by mail order; and

(B) does not plan, certify, install, service, or maintain the devices;

(5) a law enforcement agency or fire department or a law enforcement officer or firefighter acting in an official capacity that responds to a fire alarm or detection device;

(6) an engineer licensed under Chapter 1001 acting solely in the engineer's professional capacity;

(7) an individual or organization that provides and installs at no charge to the property owners or residents a battery-powered smoke detector in a single-family or two-family residence if:

(A) the smoke detector bears a label of listing or approval by a testing laboratory approved by the department;

(B) the installation complies with the adopted edition of National Fire Protection Association Standard No. 74;

(D) the detector is a single station installation and not a part of or connected to any other detection device or system;

(8) a regular employee of a registered firm who is under the direct supervision of a license holder;

(9) a building owner, the owner's managing agent, or their employees who install battery-operated single station smoke detectors or monitor fire alarm or fire detection devices or systems in the owner's building, and in which the monitoring:

(A) is performed at the owner's property at no charge to the occupants of the building;

(B) complies with applicable standards of the National Fire Protection Association as may be adopted by rule under this chapter; and

(10) an individual employed by a registered firm that sells and installs a smoke or heat detector in a single-family or two-family residence if:

(A) the detector bears a label of listing or approval by a testing laboratory approved by the department;

(B) the installation complies with the adopted edition of National Fire Protection Association Standard No. 74;

(D) the detector is a single station installation and not a part of or connected to any other detection device or system; or

(11) an individual or organization licensed to install or service burglar alarms under Chapter 1702 that provides and installs in a single-family or two-family residence a combination keypad that includes a panic button to initiate a fire alarm signal if the fire alarm signal:

(A) is monitored by a fire alarm firm registered under this article; and

(B) is not initiated by a fire or smoke detection device. (V.T.I.C. Art. 5.43-2, Sec. 3(b).)

Source Law

(b) The licensing provisions of this article shall not apply to:

(1) a person or organization in the business of building construction that installs electrical wiring and devices that may include in part the installation of a fire alarm or detection system if:

(A) the person or organization is a party to a contract that provides that the installation will be performed under the direct supervision of and certified by a licensed employee or agent of a firm registered to install and certify such an alarm or detection device and that the registered firm assumes full responsibility for the installation of the alarm or detection device; and

(B) the person or organization does not plan, certify, lease, sell, service, or maintain fire alarms or detection devices or systems;

(2) a person or organization that owns and installs fire detection or fire alarm devices on the person's or organization's own property or, if the person or organization does not charge for the device or its installation, installs it for the protection of the person's or organization's personal property located on another's property and does not install the devices as a normal business practice on the property of another;

(3) a person who holds a license or other form of permission issued by an incorporated city or town to practice as an electrician and who installs fire or smoke detection and alarm devices in no building other than a single family or multifamily residence if:

(A) the devices installed are:

(i) single station detectors; or

(ii) multiple station detectors capable of being connected in such a manner that actuation of one detector causes all integral or separate alarms to operate, if the detectors are not connected to a control panel or to an outside alarm, do not transmit a signal off the premises, and do not use more than 120 volts; and

(B) all installations comply with provisions of the adopted edition of Household Fire Warning Equipment, National Fire Protection Association Standard No. 74;

(4) a person or organization that sells fire detection or fire alarm devices if the sales are exclusively over-the-counter or by mail order and if the person or organization does not plan, certify, install, service, or maintain this equipment;

(5) response to a fire alarm or detection device by a law enforcement agency or fire department or by a law enforcement officer or fireman acting in an official capacity;

(6) a Texas registered professional engineer acting solely in his professional capacity;

(7) a person or an organization that provides and installs at no charge to the property owners or residents a battery-powered smoke detector in a single-family or two-family residence if:

(A) the smoke detector bears a label of listing or approval by a testing laboratory approved by the State Board of Insurance;

(B) the installation complies with provisions of the adopted edition of National Fire Protection Association Standard No. 74;

(D) the detector is a single station installation and not a part of or connected to any other detection device or system;

(8) a regular employee of a registered firm who is under the direct supervision of a licensee;

(9) a building owner, the owner's managing agent, or their employees who install battery-operated single-station smoke detectors or who monitor fire alarm or fire detection devices or systems in the owner's building, and in which the monitoring is performed at the owner's property and monitored at no charge to the occupants of the building, and complies with applicable standards of the National Fire Protection Association as may be adopted by rule promulgated under this Act, and utilizes equipment approved by a testing laboratory approved by the State Board of Insurance for fire alarm monitoring;

(10) a person employed by a registered firm that sells and installs a smoke or heat detector in a single-family or two-family residence if:

(A) the detector bears a label of listing or approval by a testing laboratory approved by the State Board of Insurance;

(B) the installation complies with provisions of the adopted edition of National Fire Protection Association Standard No. 74;

(D) the detector is a single station installation and not a part of or connected to any other detection device or system; or

(11) a person or organization licensed to install or service burglar alarms under the Private Investigators and Private Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes) that provides and installs in a single-family or two-family residence a combination keypad that includes a panic button to initiate a fire alarm signal if the fire alarm signal:

(A) is monitored by a fire alarm firm registered under this article; and

(B) is not initiated by any fire or smoke detection device.

Revisor's Note

(1) Section 3(b)(3), V.T.I.C. Article 5.43-2, refers to an "incorporated city or town." The revised law omits the reference to "incorporated" because under the Local Government Code all cities must be incorporated. The revised law substitutes "municipality" for "city or town" because the meaning of "municipality" includes both cities and towns, and "municipality" is the term used in the Local Government Code.

(2) Section 3(b)(6), V.T.I.C. Article 5.43-2, refers to a "registered professional engineer." The revised law omits the reference to "registered professional engineer" because that is an obsolete term for a professional engineer in this state. The revised law substitutes a reference to "an engineer licensed under Chapter 1001" because under Subchapter G, Chapter 1001, Occupations Code, a professional engineer in this state is required to hold a license under that chapter. The revised law is drafted accordingly.

(3) Section 3(b)(11), V.T.I.C. Article 5.43-2, refers to a person licensed to install or service alarms under "the Private Investigators and Private Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes)." The revised law substitutes a reference to "Chapter 1702" for the reason stated in Revisor's Note (4) to Section 1960.153.

Revised Law

Sec. 1960.156. LICENSE EXAMINATION. (a) The state fire marshal shall establish the scope and type of an examination required by this chapter. The examination must cover this chapter and commissioner rules and include specific testing of all license categories.

(b) The state fire marshal may administer the examination or may enter into an agreement with a testing service.

(c) If a testing service is used, the state fire marshal may contract with the testing service regarding requirements for the examination, including:

(1) examination development;

(2) scheduling;

(3) site arrangements;

(4) grading;

(5) reporting;

(6) analysis; or

(7) other administrative duties.

(d) The state fire marshal may require the testing service to:

(1) correspond directly with an applicant regarding the administration of the examination;

(2) collect a reasonable fee from an applicant for administering the examination; or

(3) administer the examination at a specific location or time.

(e) Approval for a testing service is valid for one year.

(f) The state fire marshal shall adopt rules as necessary to implement examination requirements under this chapter. (V.T.I.C. Art. 5.43-2, Secs. 5D(a) (part), (b) (part), (f), (g), (h).)

Source Law

(a) [Each applicant for a license must pass a written examination.] Examinations shall be conducted by the State Fire Marshal or a testing service selected by the State Fire Marshal. Examinations shall cover this article and board rules and shall include specific testing of all categories of licensure. …

(b) … Approval for a … testing service shall be valid for one year, and … .

(f) The state fire marshal shall establish the scope and type of an examination required by this article. The state fire marshal may administer the examination or may enter into an agreement with a testing service.

(g) The state fire marshal may contract with the testing service regarding requirements for the examination, including examination development, scheduling, site arrangements, grading, reporting, analysis, or other administrative duties. The state fire marshal may require the testing service to:

(1) correspond directly with an applicant regarding the administration of the examination;

(2) collect a reasonable fee from an applicant for administering the examination; or

(3) administer the examination at a specific location or time.

(h) The state fire marshal shall adopt rules as necessary to implement examination requirements under this article.

Revised Law

Sec. 1960.157. EXAMINATION RESULTS. (a) Not later than the 30th day after the date on which an examination is administered under this chapter, the state fire marshal shall send notice to each examinee of the results of the examination.

(b) If an examination is conducted, graded, or reviewed by a testing service, the state fire marshal shall send notice to each examinee of the results of the examination within two weeks after the date on which the state fire marshal receives the results from the testing service.

(c) If the notice of the examination results will be delayed for more than 90 days after the examination date, the state fire marshal shall send notice to the examinee of the reason for the delay before the 90th day.

(d) The state fire marshal may require a testing service to notify an examinee of the results of the examinee's examination under this section.

(e) If requested in writing by an individual who fails the examination administered under this chapter, the state fire marshal shall send to the individual an analysis of the individual's performance on the examination. (V.T.I.C. Art. 5.43-2, Secs. 5D(a) (part), (a-1).)

Source Law

(a) … Not later than the 30th day after the day on which an examination is administered under this article, the State Fire Marshal shall send notice to each examinee of the results of the examination. If an examination is conducted, graded, or reviewed by a testing service, the State Fire Marshal shall send notice to the examinees of the results of the examination within two weeks after the date on which the State Fire Marshal receives the results from the testing service. If the notice of the examination results will be delayed for longer than 90 days after the examination date, the State Fire Marshal shall send notice to the examinee of the reason for the delay before the 90th day. If requested in writing by a person who fails the examination administered under this article, the State Fire Marshal shall send to the person an analysis of the person's performance on the examination.

(a-1) The state fire marshal may require a testing service to notify a person of the results of the person's examination under Subsection (a).

Revised Law

Sec. 1960.158. TRAINING SCHOOLS AND INSTRUCTORS; APPROVAL. (a) An applicant for approval as a training school must submit an application to the state fire marshal, accompanied by the applicant's complete course or testing curriculum. A registered firm, or an affiliate of a registered firm, is not eligible for approval as a training school.

(b) The state fire marshal shall review the materials submitted for course approval and shall approve or deny approval in a letter provided not later than the 60th day after the date of receipt of the application. A denial of approval must disclose specific reasons for the denial. An applicant whose approval is denied may reapply at any time.

(c) Training school instructors must be approved by the state fire marshal. To be eligible for approval, an instructor must hold a fire alarm planning superintendent license and have at least three years of experience in fire alarm installation, service, or monitoring.

(d) Approval for a training school or instructor is valid for one year.

(e) The curriculum for a fire alarm technician course or a residential fire alarm superintendent course must consist of 16 hours of classroom instruction for each license category.

(f) After approval, each training school must annually conduct, within 125 miles of each county with a population greater than 500,000, at least two classes that are open to the public. (V.T.I.C. Art. 5.43-2, Secs. 5D(b) (part), (c) (part), (d), (e); New.)

Source Law

(b) A training school shall make an application for approval to the State Fire Marshal. Applications shall include complete course or testing curriculum. The State Fire Marshal shall review the materials for course approval and shall provide a letter of course approval or a letter of denial within 60 days. Denials of approval shall be in writing and shall disclose specific reasons for the denial. Denied applicants may reapply at any time. Approval for a training school or … shall be valid for one year, and … . A registered firm, or an affiliate of a registered firm, shall not be approved as a training school.

(c) Instructors for training schools shall be approved by the State Fire Marshal. Instructors must have a minimum of three years of experience in fire alarm installation, service, or monitoring and shall have a valid fire alarm planning superintendent license. An instructor's approval shall be effective for one year, and … .

(d) The training curriculum for a fire alarm technician and a residential fire alarm superintendent course shall consist of 16 hours of classroom instruction on all categories of licensure.

(e) Training schools must conduct two or more classes, open to the public, each calendar year from the issuance of registration, within 125 miles of each county in the state that has a population in excess of 500,000 people according to the last decennial census.

Revisor's Note

(1) Section 5D(b), V.T.I.C. Article 5.43-2, provides that the state fire marshal shall provide a "letter of course approval" or "letter of denial" to an applicant, and that "denials of approval" must be in writing. The revised law omits the language related to the "writing" requirement because a letter must be written.

(2) Section 5D(c), V.T.I.C. Article 5.43-2, refers to a "valid" fire alarm planning superintendent license. The revised law omits "valid" for the reasons stated in Revisor's Note (3) to Section 1960.003.

(3) Section 5D(e), V.T.I.C. Article 5.43-2, describes a population number that is to be determined according to "the last decennial census." The revised law omits the reference to the last decennial census because the reference is unnecessary. Section 311.005(3), Government Code (Code Construction Act), and Section 312.011(20), Government Code, define "population" as population according to the most recent federal decennial census. That definition applies to the revised law and the revised law is drafted accordingly.

Revised Law

Sec. 1960.159. CONTINUING EDUCATION PROGRAMS. (a) The commissioner may adopt procedures for certifying and may certify continuing education programs.

(b) Participation in the continuing education programs is voluntary. (V.T.I.C. Art. 5.43-2, Sec. 5E.)

Source Law

Sec. 5E. The State Board of Insurance may adopt procedures for certifying and may certify continuing education programs. Participation in the programs is voluntary.

Revised Law

Sec. 1960.160. RECIPROCAL LICENSE. The department may waive any license requirement for an applicant who holds a license issued by another state that has license requirements substantially equivalent to the license requirements of this state. (V.T.I.C. Art. 5.43-2, Sec. 5F.)

Source Law

Sec. 5F. The board may waive any license requirement for an applicant with a valid license from another state having license requirements substantially equivalent to those of this state.

Revisor's Note

Section 5F, V.T.I.C. Article 5.43-2, refers to "a valid license." The revised law omits "valid" for the reasons stated in Revisor's Note (3) to Section 1960.003.

Revised Law

Sec. 1960.161. NOT TRANSFERABLE. A registration certificate or license issued under this chapter is not transferable. (V.T.I.C. Art. 5.43-2, Sec. 5(h).)

Source Law

(h) A certificate of registration or license issued under this article is not transferable.

[Sections 1960.162-1960.200 reserved for expansion]

SUBCHAPTER E. RENEWAL OF REGISTRATION CERTIFICATE OR LICENSE

Revised Law

Sec. 1960.201. RENEWAL REQUIRED; FEE. (a) A renewal of a registration certificate or license issued under this chapter expires on the second anniversary of the date of issuance. The license or registration renewal fee for each year of the two-year period is payable on renewal.

(b) The commissioner by rule may adopt a system under which registration certificates and licenses expire on various dates during the year. For the year in which an expiration date of a registration certificate or license is less than one year from its issuance or anniversary date, the fee shall be prorated on a monthly basis so that each holder of a registration certificate or license pays only that portion of the renewal fee that is allocable to the number of months during which the registration certificate or license is valid. The total renewal fee is payable on renewal on the new expiration date. (V.T.I.C. Art. 5.43-2, Secs. 5A, 5C(b).)

Source Law

Sec. 5A. Each renewal of a certificate of registration or license issued under this article is valid for a period of two years. The fee for both years is payable on renewal.

[Sec. 5C]

(b) The State Board of Insurance by rule may adopt a system under which licenses and registrations expire on various dates during the year. For the year in which the license or registration expiration date is less than one year from its issuance or anniversary date, the fee shall be prorated on a monthly basis so that each licensee or registrant shall pay only that portion of the fee that is allocable to the number of months during which the license or registration is valid. On each subsequent renewal, the total renewal fee is payable.

Revised Law

Sec. 1960.202. NOTICE OF EXPIRATION. At least 30 days before the expiration date of a registration certificate or license, the state fire marshal shall send written notice of the impending expiration to the holder of the registration certificate or license at the holder's last known address. (V.T.I.C. Art. 5.43-2, Sec. 5C(a) (part).)

Source Law

(a) … At least 30 days before the expiration of a license or registration, the State Fire Marshal shall send written notice of the impending license or registration expiration to the licensee or registrant at his or its last known address. …

Revised Law

Sec. 1960.203. RENEWAL PROCEDURES. (a) The holder of an unexpired registration certificate or license may renew the certificate or license by paying the required renewal fee to the department before the expiration date of the certificate or license.

(b) An individual or organization whose registration certificate or license has been expired for 90 days or less may renew the certificate or license by paying to the department:

(1) the required renewal fee; and

(2) a fee that does not exceed one-fourth of the original fee for the certificate or license.

(c) An individual or organization whose registration certificate or license has been expired for more than 90 days but less than two years may renew the certificate or license by paying to the department:

(1) all unpaid renewal fees; and

(2) a fee that does not exceed the original fee for the certificate or license.

(d) An individual or organization whose registration certificate or license has been expired for two years or longer may not renew the certificate or license. The individual or organization may obtain a new registration certificate or license by complying with the requirements and procedures for obtaining an original registration certificate or license.

(e) This section may not be construed to prevent the department from denying or refusing to renew a license under applicable law or commissioner rules.

(f) A license or registration certificate issued under this chapter expires at midnight on the date printed on the license or certificate. A renewal application and fee for the license or registration certificate must be postmarked on or before the expiration date to be accepted as timely.

(g) If a renewal application is not complete but there has been no lapse in the required insurance, the applicant is entitled to 30 days from the date that the applicant is notified by the department of the deficiencies in the renewal application to comply with any additional requirement. If an applicant fails to respond and correct all deficiencies in the renewal application within the 30-day period, the department may charge a late fee. (V.T.I.C. Art. 5.43-2, Secs. 5C(a) (part), (c).)

Source Law

Sec. 5C. (a) An unexpired license or registration may be renewed by paying the required renewal fee to the board before the expiration of the license or registration. If a license or registration has been expired for not longer than 90 days, the license or registration may be renewed by paying to the board the required renewal fee and a fee that is not to exceed one-fourth of the original fee for the license or registration. If a license or registration has been expired for longer than 90 days but less than two years, the license or registration may be renewed by paying to the board all unpaid renewal fees and a fee that is not to exceed the original fee for the license or registration. If a license or registration has been expired for two years or longer, the license or registration may not be renewed. A new license or registration may be obtained by complying with the requirements and procedures for obtaining an original license or registration. … This section may not be construed to prevent the board from denying or refusing to renew a license under applicable law or rules of the State Board of Insurance… .

(c) A license or registration issued under this Act shall expire at 12 midnight on the date printed on the license or registration. A renewal application and fee for license or registration must be postmarked on or before the date of expiration to be accepted as timely. If a renewal application is not complete but there has been no lapse in the required insurance, the applicant shall have 30 days from the time that the applicant is notified by the board of the deficiencies in the renewal application to submit any additional requirement. If an applicant fails to respond and correct all deficiencies in a renewal application within the 30-day period, a late fee may be charged.

Revised Law

Sec. 1960.204. RENEWAL OF CERTAIN LICENSES. A license holder with an unexpired license who is not employed by a registered firm at the time of the license renewal may renew that license, but the license holder may not engage in any activity for which the license was granted until the license holder is employed by a registered firm. (V.T.I.C. Art. 5.43-2, Sec. 5C(a) (part).)

Source Law

(a) … A licensee with an unexpired license who is not employed by a registered firm at the time of the licensee's renewal may renew that license; however, the licensee may not engage in any activity for which the license was granted until the licensee is employed and qualified under a registered firm.

Revisor's Note

Section 5C(a), V.T.I.C. Article 5.43-2, refers to a license holder who is "employed and qualified under a registered firm." Under Section 5(f), V.T.I.C. Article 5.43-2, revised as Section 1960.154(c), a license holder must be employed by a registered firm to be authorized to engage in the activities for which the license is required. In context, a license holder is not "qualified" unless the license holder is employed by a registered firm. Therefore, the revised law omits "qualified" as unnecessary.

[Sections 1960.205-1960.250 reserved for expansion]

SUBCHAPTER F. SELLING OR LEASING OF FIRE ALARM

OR FIRE DETECTION DEVICES

Revised Law

Sec. 1960.251. REQUIRED LABEL; EXCEPTIONS. (a) Except as provided by Subsections (b) and (c), a detection or alarm device, alarm system, or item of monitoring equipment, a purpose of which is to detect or give alarm of fire, may not be sold, offered for sale, leased, installed, or used to monitor property in this state unless the device, system, or equipment carries a label of approval or listing of a testing laboratory approved by the department.

(b) Except as provided by Subsection (c), a detection or alarm device, alarm system, or item of monitoring equipment in a one-family or two-family residence, a purpose of which is to detect or give alarm of fire, may not be sold, offered for sale, leased, installed, or used to monitor property in this state after April 14, 1989, unless the device, system, or equipment carries a label of approval or listing of a testing laboratory approved by the department.

(1) complied with the law applicable on the date of the equipment's original placement; and

(2) has not been extended, modified, or altered.

(d) Fire alarm devices that are not required by this chapter or rules adopted under this chapter and that do not impair the operation of fire alarm or fire detection devices required by this chapter or the rules adopted under this chapter are exempt from the label and listing requirements described by Subsections (a) and (b) if the devices are approved by the local authority with jurisdiction. (V.T.I.C. Art. 5.43-2, Secs. 9(a), (b), (c).)

Source Law

Sec. 9. (a) Except as provided in Subsection (b) of this section, no detection or alarm device, alarm system, or monitoring equipment, a purpose of which is to detect and/or give alarm of fire, may be sold, offered for sale, leased, installed, or used to monitor property in this state unless it carries a label of approval or listing of a testing laboratory approved by the State Board of Insurance; provided, however, that the continued use or monitoring of equipment in place which complied with applicable law at the time of its original placement, without extension, modification, or alteration is not prohibited.

(b) No detection or alarm device, alarm system, or monitoring equipment in one-family or two-family residences, a purpose of which is to detect and/or give alarm of fire, may be sold, offered for sale, leased, installed, or used to monitor property in this state after April 14, 1989, unless it carries a label of approval or listing of a testing laboratory approved by the State Board of Insurance; provided, however, that the continued use or monitoring of equipment in place which otherwise complied with applicable law at the time of its original placement, without extension, modification, or alteration is not prohibited.

(c) Fire alarm devices that are not required by this statute or rules adopted under this statute and that do not impair the operation of fire alarm or fire detection devices required by this statute or the rules adopted under this statute are exempt from the requirement of a label of approval or listing of a testing laboratory approved by the Board if such devices are approved by the local authority having jurisdiction.

Revised Law

Sec. 1960.252. REQUIRED PURCHASE AND INSTALLATION INFORMATION. A fire detection or fire alarm device may not be sold or installed in this state unless the device is accompanied by printed information that:

(1) is supplied to the owner by the supplier or installing contractor; and

(2) concerns:

(A) instructions describing the installation, operation, testing, and proper maintenance of the device;

(B) information to aid in establishing an emergency evacuation plan for the protected premises; and

(C) the telephone number and location, including notification procedures, of the nearest fire department. (V.T.I.C. Art. 5.43-2, Sec. 9(d).)

Source Law

(d) No fire detection or fire alarm device may be sold or installed in this state unless accompanied by printed information supplied to the owner by the supplier or installing contractor concerning:

(1) instructions describing the installation, operation, testing, and proper maintenance of the device;

(2) information which will aid in establishing an emergency evacuation plan for the protected premises; and

(3) the telephone number and location, including notification procedures, of the nearest fire department.

Revised Law

Sec. 1960.253. TRAINING AND SUPERVISION OF CERTAIN EXEMPT EMPLOYEES. Each registered firm that employs an individual who is exempt from the licensing requirements of this chapter under Section 1960.155(10) shall appropriately train and supervise the individual to ensure that:

(1) each installation complies with the adopted provisions of National Fire Protection Standard No. 74 or other adopted standards;

(2) each smoke or heat detector installed or sold carries a label or listing of approval by a testing laboratory approved by the department; and

(3) the individual is knowledgeable in fire protection and the proper use and placement of detectors. (V.T.I.C. Art. 5.43-2, Sec. 9(e).)

Source Law

(e) Each registered firm that employs persons that are exempt from the licensing provisions of this article pursuant to Section 3(b)(10) of this article is required to appropriately train and supervise such exempt persons so as to ensure that each installation complies with the adopted provisions of National Fire Protection Standard No. 74 or other adopted standards, that each smoke or heat detector installed or sold carries a label or listing of approval by a testing laboratory approved by the State Board of Insurance, and that such exempt persons are knowledgeable in fire protection and the proper use and placement of detectors.

[Sections 1960.254-1960.300 reserved for expansion]

SUBCHAPTER G. PROHIBITED PRACTICES AND DISCIPLINARY PROCEDURES

Revised Law

Sec. 1960.301. PROHIBITED PRACTICES. An individual or organization may not:

(1) plan, certify, lease, sell, service, install, monitor, or maintain a fire alarm or fire detection device or system without a license or registration certificate;

(2) obtain or attempt to obtain a registration certificate or license by fraudulent representation; or

(3) plan, certify, lease, sell, service, install, monitor, or maintain a fire alarm or fire detection device or system in violation of this chapter or the rules adopted under this chapter. (V.T.I.C. Art. 5.43-2, Sec. 7(a).)

Source Law

(a) No person or organization may do any of the following:

(1) plan, certify, lease, sell, service, install, monitor, or maintain fire alarm or fire detection devices or systems without a valid license or certificate of registration;

(2) obtain or attempt to obtain a license or certificate of registration by fraudulent representation; or

(3) plan, certify, lease, sell, service, install, monitor, or maintain fire alarm or fire detection devices or systems contrary to the provisions of this article or the rules formulated by the board under the authority of this article.

Revisor's Note

Section 7(a)(1), V.T.I.C. Article 5.43-2, provides that a person may not engage in certain activities regulated by that law without "a valid license or certificate of registration." The revised law omits "valid" for the reasons stated in Revisor's Note (3) to Section 1960.003.

Revised Law

Sec. 1960.302. DISCIPLINARY ACTIONS. (a) The state fire marshal may suspend, revoke, or refuse to issue or renew a registration certificate or license if, after notice and hearing, the state fire marshal finds that the applicant, registrant, or license holder has engaged in acts that:

(1) violate this chapter;

(2) violate rules or standards adopted under this chapter; or

(3) constitute misrepresentation made in connection with the sale of products or services rendered.

(b) An original or renewal registration certificate, license, or testing laboratory approval may be denied, suspended, or revoked, if after notice and public hearing the commissioner, through the state fire marshal, determines from the evidence presented at the hearing that this chapter or a rule adopted under this chapter has been violated. (V.T.I.C. Art. 5.43-2, Secs. 10(b), (c).)

Source Law

(b) The State Fire Marshal may refuse to issue or renew or may suspend or revoke a certificate of registration or license if, after notice and hearing, he finds that the applicant, registrant, or licensee has engaged in acts:

(1) that violate this article;

(2) that violate rules or standards adopted pursuant to this article; or

(3) constituting misrepresentation made in connection with the sale of products or services rendered.

(c) A certificate of registration, license, or testing laboratory approval may be denied, or same duly issued may be suspended or revoked, or the renewal thereof refused, if after notice and public hearing, the board, through the State Fire Marshal, finds from the evidence presented at said hearing that one or more provisions of this article or of any rule or regulation promulgated under this article has been violated.

Revised Law

Sec. 1960.303. DISCIPLINARY HEARING. (a) If the state fire marshal proposes to suspend, revoke, or refuse to renew a license or registration certificate issued under this chapter, the holder of the license or certificate is entitled to a hearing conducted by the State Office of Administrative Hearings.

(b) Proceedings for a disciplinary action are governed by Chapter 2001, Government Code.

(c) Rules of practice adopted by the commissioner applicable to the proceedings for a disciplinary action may not conflict with rules adopted by the State Office of Administrative Hearings. (V.T.I.C. Art. 5.43-2, Sec. 10A.)

Source Law

Sec. 10A. If the State Fire Marshal proposes to suspend, revoke, or refuse to renew a license or certificate of registration of a person, the person is entitled to a hearing conducted by the State Office of Administrative Hearings. Proceedings for a disciplinary action are governed by the administrative procedure law, Chapter 2001, Government Code. Rules of practice adopted by the commissioner applicable to the proceedings for a disciplinary action may not conflict with rules adopted by the State Office of Administrative Hearings.

Revised Law

Sec. 1960.304. REAPPLICATION REQUIREMENTS. (a) A holder of a registration certificate, license, or testing laboratory approval that has been revoked under this chapter may not file another application for a registration certificate, license, or approval before the first anniversary of the effective date of the revocation.

(b) An individual or organization reapplying under this section must request a public hearing to show cause why the issuance of a new registration certificate, license, or approval should not be denied. (V.T.I.C. Art. 5.43-2, Sec. 10(d).)

Source Law

(d) A person or organization that has had a certificate of registration, license, or testing laboratory approval revoked may not reapply for the certificate, license, or approval within one year from the date of revocation. A person or organization reapplying under this subsection must request a public hearing to show cause why a certificate of registration, license, or testing laboratory approval should not be denied.

[Sections 1960.305-1960.350 reserved for expansion]

SUBCHAPTER H. CRIMINAL PENALTY

Revised Law

Sec. 1960.351. CRIMINAL PENALTY. (a) An individual or organization commits an offense if the individual or organization violates Section 1960.151, 1960.152, or 1960.154.

(b) An offense under this section is a Class B misdemeanor.

(c) Venue for an offense under this section is in Travis County or the county in which the offense is committed. (V.T.I.C. Art. 5.43-2, Sec. 11.)

Source Law

Sec. 11. In addition to any other penalties, any person or organization that performs a function that requires a certificate of registration or license as described herein without first obtaining such certificate of registration or license commits a Class B misdemeanor, venue for which is in Travis County or in the county in which the offense is committed.

Revisor's Note

Section 11, V.T.I.C. Article 5.43-2, provides that "[i]n addition to any other penalties," certain actions constitute violations. The revised law omits the quoted language as unnecessary. An accepted general principle of statutory construction requires a statute to be given cumulative effect with other statutes unless the statute in question provides otherwise or the statutes conflict with one another. The general principle applies to the revised law.


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