By Jackson                                            H.B. No. 2052
       74R6243 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the use and installation of certain
    1-3  fire  detection devices and fire alarms.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 419, Government Code, is amended by
    1-6  adding Subchapter F to read as follows:
    1-7        SUBCHAPTER F.  FIRE DETECTION DEVICES AND ALARM SYSTEMS
    1-8        Sec. 419.101.  PURPOSE.  In the interest of safeguarding
    1-9  lives and property, this subchapter is adopted to:
   1-10              (1)  regulate the planning, certifying, leasing,
   1-11  selling, servicing, inspecting, installing, and monitoring of fire
   1-12  detection devices,  fire alarm systems, and single station alarm
   1-13  devices; and
   1-14              (2)  prohibit the use of devices  that are not labeled
   1-15  or listed by a testing laboratory approved by the commission.
   1-16        Sec. 419.102.  DEFINITIONS.  (a)  In this subchapter:
   1-17              (1)  "Adopted standards" means the standards adopted by
   1-18  the commission by rule to administer this subchapter.
   1-19              (2)  "Advisory council" means the fire detection device
   1-20  and fire alarm advisory council.
   1-21              (3)  "Fire detection device" means a device designed to
   1-22  detect the presence of fire or smoke and initiate action through
   1-23  notification appliances or equipment as part of a fire alarm
   1-24  system.
    2-1              (4)  "Inspection" means the inspection and testing of
    2-2  fire detection devices, fire alarm systems, or single station alarm
    2-3  devices to verify proper operation of the device or system.
    2-4              (5)  "Installation" means the initial placement of
    2-5  equipment or the extension, modification, or alteration of
    2-6  equipment already in place.
    2-7              (6)  "Monitoring" means the receipt of fire alarm and
    2-8  supervisory signals and retransmission or communication of those
    2-9  signals to a fire service communications center.
   2-10              (7)  "Planning" means the preparation and approval of
   2-11  fire alarm plans that depict all applicable requirements for the
   2-12  installation of fire detection devices, fire alarm systems, or
   2-13  single station alarm devices.
   2-14              (8)  "Sale" means the sale or offering for sale, lease,
   2-15  or rent to any person of merchandise, equipment, or a service at
   2-16  wholesale or retail, for an agreed sum of money or other
   2-17  consideration.
   2-18              (9)  "Service" means to repair or maintain in a
   2-19  condition that will allow performance as originally designed or
   2-20  intended.
   2-21              (10)  "Single station alarm device" means an assembly
   2-22  incorporating a detector for the presence of fire or smoke, control
   2-23  equipment, and an alarm sounding device in one unit operated from a
   2-24  power supply either in the unit or obtained at the point of
   2-25  installation, which may be interconnected with two or more of those
   2-26  devices in a manner that makes the actuation of one device cause
   2-27  all alarms to operate.
    3-1        (b)  For the purposes of this subchapter:
    3-2              (1)  an installation is "certified" if the
    3-3  installation:
    3-4                    (A)  is performed in accordance with fire alarm
    3-5  plans approved by an authorized license holder or a registered
    3-6  professional engineer and the local governmental entity with
    3-7  jurisdiction, if applicable; and
    3-8                    (B)  meets the standards adopted by rule under
    3-9  this subchapter;
   3-10              (2)  a service is "certified" if the installed device
   3-11  or system performs as originally designed or intended;
   3-12              (3)  an inspection is "certified" if the proper
   3-13  operation of a device or system is verified; and
   3-14              (4)  a fire alarm plan is "certified" if the plan meets
   3-15  the requirements of the applicable adopted standards as modified by
   3-16  the governmental entity with jurisdiction.
   3-17        Sec. 419.103.  LICENSE OR CERTIFICATE OF REGISTRATION
   3-18  REQUIRED; PROHIBITED ACTS.  (a)  A person may not:
   3-19              (1)  plan, certify, lease, sell, install, service,
   3-20  inspect, or monitor fire detection devices, fire alarm systems, or
   3-21  single station alarm devices unless the person holds a license or
   3-22  certificate of registration issued under this subchapter;
   3-23              (2)  obtain, or attempt to obtain, a license or
   3-24  certificate of registration by a fraudulent representation; or
   3-25              (3)  plan, certify, lease, sell, install, service,
   3-26  inspect, or monitor fire detection devices, fire alarm systems, or
   3-27  single station alarm devices in a manner that is contrary to the
    4-1  provisions of this subchapter or the rules adopted by the
    4-2  commission under the authority of this subchapter.
    4-3        (b)  A person may not install a fire detection device, fire
    4-4  alarm system, or single station alarm device, including a conduit,
    4-5  raceway, backbox, junction box, or similar electrical enclosure
    4-6  that may be required by the adopted standards, in any location
    4-7  other than a single-family or two-family residence, until the
    4-8  person has:
    4-9              (1)  established a certified fire alarm plan; and
   4-10              (2)  received the approval of the local governmental
   4-11  entity with jurisdiction, if that approval is required.
   4-12        Sec. 419.104.  EXEMPTIONS.  The registration and licensing
   4-13  requirements of this subchapter do not apply to:
   4-14              (1)  a person in the business of building construction
   4-15  who installs electrical wiring and devices that may include in part
   4-16  the installation of fire detection devices or a fire alarm system
   4-17  if the person:
   4-18                    (A)  does not plan, certify, lease, sell,
   4-19  install, service, or inspect fire detection devices or fire alarm
   4-20  systems;
   4-21                    (B)  does not install a conduit, raceway,
   4-22  backbox, junction box, or similar electrical enclosure that may be
   4-23  required by the adopted standards for the installation of a fire
   4-24  detection device or fire alarm system in any location other than a
   4-25  single-family or two-family residence; and
   4-26                    (C)  does not install a fire detection device or
   4-27  fire alarm system except under the direct supervision of a licensed
    5-1  employee of a registered firm;
    5-2              (2)  a registered professional engineer acting solely
    5-3  in the engineer's professional capacity;
    5-4              (3)  a law enforcement officer or firefighter acting in
    5-5  an official capacity in response to an alarm from a fire detection
    5-6  device, fire alarm system, or single station alarm device;
    5-7              (4)  a regular employee of a registered firm who is
    5-8  engaged in installing fire detection devices or fire alarm systems
    5-9  under the direct supervision of a license holder;
   5-10              (5)  a person who sells or installs single station
   5-11  alarm devices if:
   5-12                    (A)  the device is approved or listed by a
   5-13  testing laboratory approved by the commission;
   5-14                    (B)  the installation complies with the adopted
   5-15  standards;
   5-16                    (C)  the installer is knowledgeable in the proper
   5-17  use of those devices; and
   5-18                    (D)  the device is installed in a single-family
   5-19  or two-family residence; or
   5-20              (6)  a person who sells fire detection devices or fire
   5-21  alarm systems if:
   5-22                    (A)  the sales are exclusively over-the-counter
   5-23  or by mail order; and
   5-24                    (B)  the person does not plan, certify, install,
   5-25  service, or maintain the device or system.
   5-26        Sec. 419.105.  ADMINISTRATION; ADVISORY COUNCIL.  (a)  The
   5-27  commission shall administer this subchapter through the state fire
    6-1  marshal.
    6-2        (b)  The commission may adopt rules as necessary to
    6-3  administer this subchapter.  In adopting rules, the commission may
    6-4  use or consider:
    6-5              (1)  recognized standards, including standards:
    6-6                    (A)  adopted by the National Fire Protection
    6-7  Association;
    6-8                    (B)  enacted by federal law or regulation; or
    6-9                    (C)  published by any nationally recognized
   6-10  standards-making organization; or
   6-11              (2)  information furnished to the commission by
   6-12  individual manufacturers.
   6-13        (c)  The fire detection device and fire alarm advisory
   6-14  council is appointed by the commission to advise the commission on
   6-15  the adoption of rules necessary to administer this subchapter.  The
   6-16  advisory council is composed of seven members as follows:
   6-17              (1)  three members must be employed by a registered
   6-18  firm in the fire detection industry with experience in planning,
   6-19  certifying, leasing, selling, installing, servicing, or inspecting
   6-20  fire detection devices, fire alarm systems, or single station alarm
   6-21  devices;
   6-22              (2)  one member must be experienced in the engineering
   6-23  of fire prevention services or a member of a fire protection
   6-24  association;
   6-25              (3)  two members must be employed by a municipality or
   6-26  county as fire prevention officers and must have demonstrable
   6-27  experience; and
    7-1              (4)  one member must be employed by a registered firm
    7-2  and must be experienced in the operation of a fire alarm monitoring
    7-3  station.
    7-4        (d)  Each member of the advisory council must have at least
    7-5  three years of experience in the person's designated
    7-6  classification.
    7-7        (e)  The advisory council is not subject to Article 6252-33,
    7-8  Revised Statutes.
    7-9        Sec. 419.106.  POWERS AND DUTIES OF COMMISSION AND STATE FIRE
   7-10  MARSHAL.  (a)  The commission shall delegate authority to exercise
   7-11  all or part of its functions, powers, and duties under this
   7-12  subchapter, including the issuance of certificates of registration
   7-13  and licenses, to the state fire marshal.
   7-14        (b)  The commission, with the assistance of the advisory
   7-15  council, shall adopt rules as  determined by the commission to be
   7-16  necessary for the protection and preservation of life and property
   7-17  in controlling:
   7-18              (1)  the registration of persons engaging in the
   7-19  business of planning, certifying, leasing, selling, installing,
   7-20  servicing, inspecting, or monitoring fire detection devices, fire
   7-21  alarm systems, and single system alarm devices; and
   7-22              (2)  the requirements for the planning, certifying,
   7-23  leasing, selling, installing, servicing, inspecting, or monitoring
   7-24  of fire detection devices, fire alarm systems, and single station
   7-25  alarm devices by:
   7-26                    (A)  conducting examinations and evaluating the
   7-27  qualifications of an applicant for a certificate of registration to
    8-1  engage in the business of planning, certifying, leasing, selling,
    8-2  installing, servicing, inspecting, or monitoring fire detection
    8-3  devices, fire alarm systems, or single station alarm devices;
    8-4                    (B)  conducting examinations and evaluating the
    8-5  qualifications of an applicant for a license established under the
    8-6  rules adopted under this subchapter;
    8-7                    (C)  evaluating and approving testing
    8-8  laboratories for the purpose of this subchapter; and
    8-9                    (D)  evaluating and approving required training
   8-10  programs for all persons who engage in the business of planning,
   8-11  certifying, leasing, selling, installing, servicing, inspecting, or
   8-12  monitoring fire detection devices, fire alarm systems, or single
   8-13  station alarm devices.
   8-14        (c)  The commission shall submit changes in a rule proposed
   8-15  by the advisory council to the advisory council.  If the commission
   8-16  does not adopt a rule proposed by the advisory council, the
   8-17  commission shall indicate to the council the reasons that the rule
   8-18  was not adopted, and return the proposed rule to the council for
   8-19  further development.
   8-20        (d)  With the assistance of the advisory council, the
   8-21  commission shall issue formal interpretations of the rules adopted
   8-22  under this chapter on receipt of a written request from any person
   8-23  to promote clarification and understanding of those rules.  The
   8-24  commission shall adopt rules relating to required procedures for a
   8-25  rules interpretation under this subchapter.
   8-26        Sec. 419.107.  TESTING LABORATORIES; APPROVAL OF EQUIPMENT.
   8-27  (a)  Except as provided by Subsection (b), a fire detection device,
    9-1  fire alarm system, single station alarm device, or monitoring
    9-2  equipment a purpose of which is to detect or give alarm of fire may
    9-3  not be sold, offered for sale, leased, installed, or used to
    9-4  monitor systems, devices, and property in this state unless it
    9-5  carries a label of approval of, or is listed by, a testing
    9-6  laboratory approved by the commission.  This subsection does not
    9-7  prohibit the continued use or monitoring of equipment in place that
    9-8  complied with applicable law at the time of its original placement,
    9-9  if the equipment has not been extended, modified, or altered.
   9-10        (b)  Auxiliary components that are not required by the
   9-11  adopted standards and that do not impair the operation of fire
   9-12  detection devices or fire alarm systems required by the adopted
   9-13  standards are exempt from the requirement imposed under Subsection
   9-14  (a) if those components are approved by the local governmental
   9-15  entity with jurisdiction.
   9-16        (c)  A fire detection device, fire alarm system, or single
   9-17  station alarm device may not be sold or installed in this state
   9-18  unless it is accompanied by printed information supplied to the
   9-19  owner by the supplier or installing contractor that provides:
   9-20              (1)  instructions describing the installation,
   9-21  operation, testing, and proper maintenance of the device or system;
   9-22              (2)  information to aid in establishing an emergency
   9-23  evacuation plan for the protected premises; and
   9-24              (3)  the telephone number and location, including
   9-25  notification procedures, of the nearest fire department.
   9-26        Sec. 419.108.  REGISTRATION.  (a)  Each person that engages
   9-27  in the business of planning, certifying, leasing, selling,
   10-1  installing, servicing, inspecting, or monitoring fire detection
   10-2  devices, fire alarm systems, or single station alarm devices as a
   10-3  corporation, partnership, association, or other organization must
   10-4  hold a certificate of registration as a registered firm issued by
   10-5  the state fire marshal.
   10-6        (b)  Each separate office location of a registered firm,
   10-7  other than the main location identified on the certificate of
   10-8  registration, must have a branch office registration certificate
   10-9  issued by the state fire marshal.  Each branch office location must
  10-10  be identified as a part of a registered firm before a branch office
  10-11  registration certificate may be issued.
  10-12        (c)  The commission may not issue a certificate of
  10-13  registration under this section until the applicant files with the
  10-14  state fire marshal evidence of insurance coverage as prescribed by
  10-15  the rules adopted under this subchapter.  The insurance coverage
  10-16  must include at least:
  10-17              (1)  $100,000 combined single limits for bodily injury
  10-18  and property damage for each occurrence; and
  10-19              (2)  $300,000 in the aggregate for all occurrences per
  10-20  policy year.
  10-21        (d)  The commission, after notice and an opportunity for a
  10-22  hearing, may increase or decrease the limits of insurance coverage
  10-23  required for registered firms.
  10-24        (e)  A certificate of registration issued under this section
  10-25  is not transferable.
  10-26        (f)  The commission shall prescribe the annual fees to be
  10-27  charged for a certificate of registration under this section, not
   11-1  to exceed $500 for the main office of a registered firm and $150
   11-2  for a branch office.  The commission shall set the fees with the
   11-3  advice of the advisory council.
   11-4        (g)  The commission shall charge a fee in an amount not to
   11-5  exceed $20 for a duplicate certificate of registration or any
   11-6  requested change made to a certificate of registration.
   11-7        Sec. 419.109.  LICENSES.  (a)  Each person that engages in
   11-8  the business of planning, certifying, installing, servicing, or
   11-9  inspecting fire detection devices, fire alarm systems, or single
  11-10  station alarm devices as an individual must hold a license issued
  11-11  by the state fire marshal.
  11-12        (b)  The commission, with the assistance of the advisory
  11-13  council, shall establish license classifications and examination
  11-14  requirements as necessary to administer this subchapter.  The state
  11-15  fire marshal shall administer an examination required under this
  11-16  section to ensure competency in the classification in which a
  11-17  license applicant seeks to engage in business.
  11-18        (c)  The commission shall set the fees for licenses
  11-19  established under this section.  An annual license fee may not
  11-20  exceed $100.
  11-21        (d)  The commission shall set nonrefundable fees for
  11-22  examinations conducted under this section.  The fee for an initial
  11-23  examination may not exceed $30.  The fee for a reexamination may
  11-24  not exceed $20.
  11-25        (e)  The commission shall set the fee for a duplicate license
  11-26  or change in a license.  The fee under this subsection may not
  11-27  exceed $20.
   12-1        (f)  A license issued under this section is not transferable.
   12-2        (g)  Each registered firm that employs persons who are exempt
   12-3  from the licensing requirements of this subchapter under Section
   12-4  419.104 shall appropriately train and supervise those persons to
   12-5  ensure that:
   12-6              (1)  each installation complies with the adopted
   12-7  standards;
   12-8              (2)  each device installed carries a label or listing
   12-9  of approval by a testing laboratory approved by the commission; and
  12-10              (3)  the persons are knowledgeable in fire protection
  12-11  and the proper use and placement of the devices.
  12-12        Sec. 419.110.  APPLICATION FOR LICENSE OR CERTIFICATE;
  12-13  HEARINGS.  (a)  The commission by rule shall determine the
  12-14  requirements for an application for a certificate of registration
  12-15  or license issued under this subchapter and the qualifications
  12-16  required for applicants.
  12-17        (b)  The state fire marshal may refuse to issue or renew or
  12-18  may suspend or revoke a certificate of registration or license if,
  12-19  after notice and hearing, the state fire marshal finds that the
  12-20  applicant, registrant, or license holder has engaged in acts that:
  12-21              (1)  violate this subchapter;
  12-22              (2)  violate rules or standards adopted under this
  12-23  subchapter; or
  12-24              (3)  constitute misrepresentation made in connection
  12-25  with an inspection performed, or the sale of products or services
  12-26  rendered, under this subchapter.
  12-27        (c)  A certificate of registration, license, or testing
   13-1  laboratory approval may be denied, suspended, or revoked, or
   13-2  renewal refused, if, after notice and public hearing, the
   13-3  commission, through the state fire marshal, finds from the evidence
   13-4  presented at the hearing that this subchapter or a rule adopted
   13-5  under this subchapter has been violated.
   13-6        (d)  A person who has had a certificate of registration,
   13-7  license, or testing laboratory approval revoked may not reapply for
   13-8  the certificate, license, or approval until the first anniversary
   13-9  of the date of the revocation.  A person who reapplies under this
  13-10  subsection must request a public hearing to show cause why a
  13-11  certificate of registration, license, or testing laboratory
  13-12  approval should not be denied.
  13-13        (e)  A person who reapplies under Subsection (d) must
  13-14  disclose in the reapplication the name of any person with a
  13-15  financial interest in the certificate of registration, license, or
  13-16  approval that was revoked who was charged with a violation of this
  13-17  subchapter or a rule adopted under this subchapter.
  13-18        Sec. 419.111.  UNIFORM FORCE AND EFFECT.  (a)  This
  13-19  subchapter and the rules adopted under this subchapter shall have
  13-20  uniform force and effect throughout this state.
  13-21        (b)  A municipality or county may not enact an ordinance,
  13-22  rule, or other regulation that is inconsistent with the provisions
  13-23  of this subchapter or rules adopted under this subchapter.
  13-24  However, a municipality or county may:
  13-25              (1)  mandate that a fire detection device or fire alarm
  13-26  system be installed in certain facilities if the installation
  13-27  conforms to applicable adopted standards; and
   14-1              (2)  require a better type of fire detection device or
   14-2  fire alarm system or otherwise safer conditions than the minimum
   14-3  required by the adopted standards.
   14-4        (c)  A municipality, county, or other political subdivision
   14-5  of this state may not require a registered firm, a license holder,
   14-6  or an employee of a license holder to:
   14-7              (1)  obtain a registration, franchise, or license from
   14-8  the political subdivision;
   14-9              (2)  pay a fee or franchise tax to the political
  14-10  subdivision; or
  14-11              (3)  post a bond payable to the political subdivision
  14-12  to engage in business or perform any activities authorized under
  14-13  this subchapter in that political subdivision.
  14-14        (d)  Notwithstanding Subsection (c), a municipality or county
  14-15  may require a registered firm to obtain a permit and pay a permit
  14-16  fee for the installation of a fire detection device, fire alarm
  14-17  system, or single station alarm device and require that the
  14-18  installation of the device or system conform to the building and
  14-19  fire code or other construction requirements of the municipality or
  14-20  county and of state law, but may not impose a qualification or
  14-21  financial responsibility requirement other than proof of a valid
  14-22  certificate of registration.
  14-23        Sec. 419.112.  DISPOSITION OF FEES.  Fees and penalties
  14-24  collected under this subchapter shall be deposited in the state
  14-25  treasury to the credit of the special account in the general
  14-26  revenue fund established under Section 419.026(d).
  14-27        Sec. 419.113.  CITATION; CRIMINAL PENALTY.  (a)  The state
   15-1  fire marshal or the state fire marshal's designee shall issue a
   15-2  citation to a person regulated under this subchapter who violates
   15-3  the rules adopted under this subchapter and shall collect any fine
   15-4  imposed for a violation under this chapter.  An appeal of a
   15-5  citation imposed under this subsection must be brought not later
   15-6  than the 30th day after the date on which the citation was issued.
   15-7        (b)  A person commits an offense if the person performs a
   15-8  function that requires a certificate of registration or license
   15-9  under this subchapter without holding the certificate of
  15-10  registration or license.  An offense under this subsection is a
  15-11  Class B misdemeanor.
  15-12        SECTION 2.  Section 417.0041(a), Government Code, is amended
  15-13  to read as follows:
  15-14        (a)  This section applies to rules adopted under Articles
  15-15  5.43-1, 5.43-3, and  <through> 5.43-4, Insurance Code,  and to the
  15-16  advisory councils established under these articles.
  15-17        SECTION 3.  Article 5.43-2, Insurance Code, is repealed
  15-18  effective January 1, 1996.
  15-19        SECTION 4.  The advisory council established under Article
  15-20  5.43-2, Insurance Code, as that article existed before its repeal
  15-21  by this Act, is abolished on December 31, 1995.  A person serving
  15-22  on that advisory council is eligible for appointment to the fire
  15-23  detection device and fire alarm advisory council established under
  15-24  Section 419.105, Government Code, as added by this Act.
  15-25        SECTION 5.  (a)  The change in law made by Section
  15-26  419.113(b), Government Code, as added by this Act, applies only to
  15-27  an offense committed on or after the effective date of this Act.
   16-1  For purposes of this section, an offense is committed before the
   16-2  effective date of this Act if any element of the offense occurs
   16-3  before that date.
   16-4        (b)  An offense committed under Article 5.43-2, Insurance
   16-5  Code, before the effective date of this Act is governed by the law
   16-6  in effect when the offense was committed, and the former law is
   16-7  continued in effect for that purpose.
   16-8        SECTION 6.  A person is not required to hold a license or
   16-9  certificate of registration under Subchapter F, Chapter 419,
  16-10  Government Code, as added by this Act, until January 1, 1996.
  16-11        SECTION 7.  (a)  Except as provided by Subsection (b) of this
  16-12  section, this Act takes effect September 1, 1995.
  16-13        (b)  Sections 419.103 and 419.113, Government Code, as added
  16-14  by this Act, take effect January 1, 1996.
  16-15        SECTION 8.  The importance of this legislation and the
  16-16  crowded condition of the calendars in both houses create an
  16-17  emergency and an imperative public necessity that the
  16-18  constitutional rule requiring bills to be read on three several
  16-19  days in each house be suspended, and this rule is hereby suspended.