AN ACT

 1-1     relating to the continuation and functions of the Texas Commission

 1-2     on Fire Protection and the transfer of certain commission functions

 1-3     to the state fire marshal and the Texas Department of Insurance.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5                  ARTICLE 1.  OPERATIONS OF THE COMMISSION

 1-6           SECTION 1.01.  Section 419.003, Government Code, is amended

 1-7     to read as follows:

 1-8           Sec. 419.003.  SUNSET PROVISION.  The Texas Commission on

 1-9     Fire Protection is subject to Chapter 325 (Texas Sunset Act).

1-10     Unless continued in existence as provided by that chapter, the

1-11     commission is abolished and this chapter expires September 1, 2009

1-12     [1997].

1-13           SECTION 1.02.  Section 419.004, Government Code, is amended

1-14     by amending Subsection (a) and adding Subsection (e) to read as

1-15     follows:

1-16           (a)  The commission is composed of the following 12 members:

1-17                 (1)  two members to be selected from a list of five

1-18     names submitted by the Texas Fire Chiefs Association who are

1-19     [three] chief officers with a minimum rank that is equivalent to

1-20     the position immediately below that of the fire [of battalion]

1-21     chief and who are employed in fire departments as defined by

1-22     Section 419.021 that are under the jurisdiction of the commission,

1-23     at least one [two] of whom must be the head [heads] of a [their]

 2-1     fire department [departments,] and one of whom must be employed by

 2-2     a political subdivision with a population of less than 50,000[, one

 2-3     must be employed by a political subdivision with a population of

 2-4     50,000 to 200,000, and one must be employed by a political

 2-5     subdivision with a population of more than 200,000];

 2-6                 (2)  two members to be selected from a list of five

 2-7     names submitted by the Texas State Association of Fire Fighters who

 2-8     are [three] fire protection personnel as defined by Section 419.021

 2-9     with the rank of battalion chief [captain] or below and who are

2-10     employed in fire departments or other appropriate local authorities

2-11     under the jurisdiction of the commission, [at least one of whom

2-12     must be actively involved in educating the public on fire

2-13     prevention as a significant part of the person's duties, and] one

2-14     of whom must be employed by a political subdivision with a

2-15     population of less than 50,000[, one must be employed by a

2-16     political subdivision with a population of 50,000 to 200,000, and

2-17     one must be employed by a political subdivision with a population

2-18     of more than 200,000];

2-19                 (3)  two members to be selected from a list of five

2-20     names submitted by the State Firemen's and Fire Marshals'

2-21     Association of Texas [three persons] who are volunteer fire chiefs

2-22     or volunteer fire fighters;

2-23                 (4)  one certified fire protection engineer;

2-24                 (5)  one certified arson investigator or certified fire

2-25     protection inspector; [and]

 3-1                 (6)  one fire protection instructor from an institution

 3-2     of higher education as defined by  Section 61.003, Education Code;

 3-3     and

 3-4                 (7)  three public members.

 3-5           (e)  A person is not eligible for appointment as a public

 3-6     member of the commission if the person or the person's spouse:

 3-7                 (1)  is registered, certified, or licensed by the

 3-8     commission;

 3-9                 (2)  is employed by or participates in the management

3-10     of a business entity or other organization regulated by the

3-11     commission or receiving funds from the commission;

3-12                 (3)  owns or controls, directly or indirectly, more

3-13     than a 10 percent interest in a business entity or other

3-14     organization regulated by the commission or receiving funds from

3-15     the commission;

3-16                 (4)  uses or receives a substantial amount of tangible

3-17     goods, services, or funds from the  commission, other than

3-18     compensation or reimbursement authorized by law for commission

3-19     membership, attendance, or expenses; or

3-20                 (5)  is a member of a paid or volunteer fire

3-21     department.

3-22           SECTION 1.03.  Subsection (c), Section 419.005, Government

3-23     Code, is amended to read as follows:

3-24           (c)  If the executive director has knowledge that a potential

3-25     ground for removal exists, the executive director shall notify the

 4-1     presiding officer of the commission of the ground.  The presiding

 4-2     officer shall then notify the governor and the attorney general

 4-3     that a potential ground for removal exists.  If the potential

 4-4     ground for removal involves the presiding officer, the executive

 4-5     director shall notify the next highest ranking officer of the

 4-6     commission, who shall notify the governor and the attorney general

 4-7     that a potential ground for removal exists.

 4-8           SECTION 1.04.  Subchapter A, Chapter 419, Government Code, is

 4-9     amended by adding Section 419.0071 to read as follows:

4-10           Sec. 419.0071.  COMMISSION MEMBER TRAINING.  (a)  To be

4-11     eligible to take office as a member of the commission, a person

4-12     appointed to the commission must complete at least one course of a

4-13     training program that complies with this section.

4-14           (b)  The training program must provide information to the

4-15     person regarding:

4-16                 (1)  the enabling legislation that created the

4-17     commission;

4-18                 (2)  the programs operated by the commission;

4-19                 (3)  the role and functions of the commission;

4-20                 (4)  the rules of the commission with an emphasis on

4-21     the rules that relate to disciplinary and investigatory authority;

4-22                 (5)  the current budget for the commission;

4-23                 (6)  the results of the most recent formal audit of the

4-24     commission;

4-25                 (7)  the requirements of the:

 5-1                       (A)  open meetings law, Chapter 551;

 5-2                       (B)  open records law, Chapter 552; and

 5-3                       (C)  administrative procedure law, Chapter 2001;

 5-4                 (8)  the requirements of the conflict of interests laws

 5-5     and other laws relating to public officials; and

 5-6                 (9)  any applicable ethics policies adopted by the

 5-7     agency or the Texas Ethics Commission.

 5-8           (c)  A person appointed to the commission is entitled to

 5-9     reimbursement for travel expenses incurred in attending the

5-10     training program, as provided by the General Appropriations Act and

5-11     as if the person were a member of the commission.

5-12           SECTION 1.05.  Section 419.008, Government Code, is amended

5-13     to read as follows:

5-14           Sec. 419.008.  GENERAL POWERS AND DUTIES.  (a)  The

5-15     commission may adopt rules for its internal management and control

5-16     and for the administration of its powers and duties.

5-17           (b)  The commission shall perform the duties assigned to the

5-18     commission under this chapter or other law.

5-19           (c)  The commission shall perform duties assigned by law to

5-20     the Commission on Fire Protection Personnel Standards and Education

5-21     or to the Fire Department Emergency Board.

5-22           (d)  [The commission shall provide for the appointment and

5-23     supervision of the state fire marshal in accordance with Chapter

5-24     417.]

5-25           [(e)]  The commission may accept gifts, grants, and

 6-1     contributions from private individuals or foundations and from the

 6-2     federal government.

 6-3           (e) [(f)]  The commission shall report to the governor

 6-4     annually and to the legislature at each regular session on the

 6-5     commission's activities.  The commission may make recommendations

 6-6     in those reports on matters under its jurisdiction.  The commission

 6-7     may make other reports in its discretion.

 6-8           (f) [(g)  The commission may make or encourage studies of

 6-9     fire protection, including fire administration.]

6-10           [(h)  The commission may conduct research to improve fire

6-11     protection and fire administration and may stimulate research by

6-12     public and private agencies for that purpose.]

6-13           [(i)  The commission may, on the request of a public or

6-14     nonprofit entity with duties related to fire protection, advise or

6-15     assist the entity in relation to those duties.]

6-16           [(j)]  The commission may appoint advisory committees to

6-17     assist it in the performance of its duties.  A member of an

6-18     advisory committee appointed by the commission or otherwise

6-19     appointed under this chapter may not receive compensation for

6-20     service on the advisory committee.  A member appointed under this

6-21     chapter is entitled to receive reimbursement, subject to any

6-22     applicable limitation on reimbursement provided by the General

6-23     Appropriations Act, for actual and necessary expenses incurred in

6-24     performing services as a member of the advisory committee.

6-25           [(k)  The commission may use pertinent and timely facts

 7-1     relating to fires to develop educational programs and disseminate

 7-2     materials necessary to educate the public effectively regarding

 7-3     methods of fire prevention and safety.]

 7-4           SECTION 1.06.  Subchapter A, Chapter 419, Government Code, is

 7-5     amended by adding Section 419.0082 to read as follows:

 7-6           Sec. 419.0082.  RULEMAKING.  (a)  In adopting or amending a

 7-7     rule under Section 419.008(a) or any other law, the commission

 7-8     shall seek the input of the fire fighter advisory committee and,

 7-9     when appropriate, the funds allocation advisory committee.  The

7-10     commission shall permit the appropriate advisory committee to

7-11     review and comment on any proposed rule, including a proposed

7-12     amendment to a rule, before the rule is adopted.

7-13           (b)  The commission may not adopt a rule, including an

7-14     amendment to a rule, before the commission meeting held after the

7-15     commission meeting at which the rule is first proposed.

7-16           (c)  This section does not apply to an emergency rule adopted

7-17     under Section 2001.034.

7-18           SECTION 1.07.  Subsections (d), (e), (f), and (g), Section

7-19     419.009, Government Code, are amended to read as follows:

7-20           (d)  The executive director or the executive director's

7-21     designee shall develop an intraagency career ladder program that

7-22     addresses opportunities for mobility and advancement for employees

7-23     within the commission.  The program shall require intraagency

7-24     postings of all [nonentry level] positions concurrently with any

7-25     public posting.

 8-1           (e)  The executive director or the executive director's

 8-2     designee shall develop a system of annual performance evaluations

 8-3     that are based on documented employee performance.  All merit pay

 8-4     for commission employees must be based on the system established

 8-5     under this subsection.

 8-6           (f)  The executive director or the executive director's

 8-7     designee shall prepare and maintain a written policy statement to

 8-8     assure implementation of a program of equal employment opportunity

 8-9     under which all personnel transactions are made without regard to

8-10     race, color, disability [handicap], sex, religion, age, or national

8-11     origin.  The policy statement must include:

8-12                 (1)  personnel policies, including policies relating to

8-13     recruitment, evaluation, selection, appointment, training, and

8-14     promotion of personnel that are in compliance with the requirements

8-15     of Chapter 21, Labor Code;

8-16                 (2)  a comprehensive analysis of the commission work

8-17     force that meets federal and state laws, rules, regulations, and

8-18     instructions directly adopted under those laws, rules, or

8-19     regulations [guidelines];

8-20                 (3)  procedures by which a determination can be made

8-21     about the extent of underuse [of significant underutilization] in

8-22     the commission work force of all persons for whom federal or state

8-23     laws, rules, regulations, and instructions directly adopted under

8-24     those laws, rules, or regulations [guidelines] encourage a more

8-25     equitable balance; and

 9-1                 (4)  reasonable methods to appropriately address those

 9-2     areas of underuse [significant underutilization].

 9-3           (g)  A policy statement prepared under Subsection (f) must

 9-4     cover an annual period, be updated [at least] annually and reviewed

 9-5     by the Commission on Human Rights for compliance with Subsection

 9-6     (f)(1), and be filed with the governor's office.

 9-7           SECTION 1.08.  Subchapter A, Chapter 419, Government Code, is

 9-8     amended by adding Section 419.0091 to read as follows:

 9-9           Sec. 419.0091.  GENERAL COUNSEL.  The commission may employ

9-10     not more than one attorney.  The attorney shall serve as general

9-11     counsel of the commission.

9-12           SECTION 1.09.  Sections 419.010 and 419.011, Government Code,

9-13     are amended to read as follows:

9-14           Sec. 419.010.  FISCAL REPORT.  The commission shall prepare

9-15     [file] annually [with the governor and the presiding officer of

9-16     each house of the legislature] a complete and detailed written

9-17     report accounting for all funds received and disbursed by the

9-18     commission during the preceding fiscal year.  The annual report

9-19     must meet the reporting requirements applicable to financial

9-20     reporting provided in [be in the form and reported in the time

9-21     provided by] the General Appropriations Act.

9-22           Sec. 419.011.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.

9-23     (a)  The commission shall prepare information of public interest

9-24     describing the functions of the commission and the commission's

9-25     procedures by which complaints are filed with and resolved by the

 10-1    commission.  The commission shall make the information available to

 10-2    the public and appropriate state agencies.

 10-3          (b)  The commission shall keep a [an information] file about

 10-4    each written complaint filed with the commission that the

 10-5    commission has authority to resolve.  The commission shall provide

 10-6    to the person filing the complaint and the persons or entities

 10-7    complained about the commission's policies and procedures

 10-8    pertaining to complaint investigation and resolution.  The [If a

 10-9    written complaint is filed with the commission that the commission

10-10    has authority to resolve, the] commission, at least quarterly and

10-11    until final disposition of the complaint, shall notify the person

10-12    filing the complaint and the persons or entities complained about

10-13    [parties to the complaint] of the status of the complaint unless

10-14    the notice would jeopardize an undercover investigation.

10-15          (c)  The commission shall keep information about each

10-16    complaint filed with the commission.  The information shall

10-17    include:

10-18                (1)  the date the complaint is received;

10-19                (2)  the name of the complainant;

10-20                (3)  the subject matter of the complaint;

10-21                (4)  a record of all persons contacted in relation to

10-22    the complaint;

10-23                (5)  a summary of the results of the review or

10-24    investigation of the complaint; and

10-25                (6)  for complaints for which the agency took no

 11-1    action, an explanation of the reason the complaint was closed

 11-2    without action.

 11-3          (d)  The commission shall comply with federal and state laws

 11-4    related to program and facility accessibility.  The executive

 11-5    director [commission] shall also  prepare and maintain a written

 11-6    plan that describes how a person who does not speak English [or who

 11-7    has a physical, mental, or developmental disability] can be

 11-8    provided reasonable access to the commission's programs.

 11-9          SECTION 1.10.  Section 419.053, Government Code, is amended

11-10    to read as follows:

11-11          Sec. 419.053.  GENERAL POWERS AND DUTIES OF COMMISSION UNDER

11-12    THIS SUBCHAPTER.  (a)  The commission shall:

11-13                (1)  administer the fire department emergency program

11-14    as provided by this subchapter and commission rules;

11-15                (2)  contract with professional experts as necessary to

11-16    assist the commission in carrying out its powers and duties under

11-17    this subchapter;

11-18                (3)  adopt rules for the administration of this

11-19    subchapter;

11-20                (4)  adopt and use a seal;

11-21                (5)  administer oaths and take testimony on matters

11-22    within the commission's jurisdiction under this subchapter;

11-23                (6)  keep an accurate record of its meetings, receipts,

11-24    and disbursements;

11-25                (7)  submit to the presiding officers of each house of

 12-1    the legislature an annual report of the commission's activities

 12-2    under this subchapter; and

 12-3                (8)  consider and approve or disapprove applications

 12-4    for scholarships, grants, loans, and other financial assistance as

 12-5    provided by this subchapter.

 12-6          (b)  The rules adopted under Subsection (a)(3) must include

 12-7    rules establishing criteria to be used in the evaluation of

 12-8    applications for grants and loans with the assistance of staff.

 12-9          SECTION 1.11.  Subsections (a), (c), and (d), Section

12-10    419.054, Government Code, are amended to read as follows:

12-11          (a)  The funds allocation advisory committee is composed of

12-12    six members.  Three members are appointed by the State Firemen's

12-13    and Fire Marshals' Association of Texas.  Three members are

12-14    appointed by the Texas State Association of Fire Fighters.  A

12-15    committee member is subject to removal by the commission [serves at

12-16    the will of the authority that appointed the member].  A vacancy on

12-17    the committee caused by removal of a member by the commission shall

12-18    be filled by the authority that appointed the member who was

12-19    removed.

12-20          (c)  The committee shall assist the commission in matters

12-21    relating to the administration of this subchapter.  The committee

12-22    periodically shall review commission rules relating to the program

12-23    and recommend changes in the rules to the commission.

12-24    [Notwithstanding Chapter 2001.031, the commission shall submit all

12-25    proposed changes and additions to the rules that relate to the

 13-1    program to the committee for development.  If the commission does

 13-2    not approve a rule developed by the committee, the commission shall

 13-3    indicate to the committee the reasons that the commission did not

 13-4    approve the rule and return the rule to the committee for further

 13-5    development.]

 13-6          (d)  The committee shall review and evaluate all applications

 13-7    for financial assistance under this subchapter according to the

 13-8    rules and procedures adopted by the commission.  The committee

 13-9    shall recommend to the commission which applications should be

13-10    approved and which applications should be disapproved.  A complete

13-11    listing of applicants shall be provided to the commission with full

13-12    disclosure of the reasons for approval or disapproval.  If the

13-13    commission does not concur with the committee's recommendation, the

13-14    commission shall indicate to the committee the reasons that the

13-15    commission did not concur with the recommendation and return the

13-16    applications regarding which the commission did not concur to the

13-17    committee for further review and evaluation.

13-18          SECTION 1.12.  Section 419.063, Government Code, is amended

13-19    to read as follows:

13-20          Sec. 419.063.  LIMITATION ON SCHOLARSHIPS, GRANTS, LOANS, AND

13-21    OTHER FINANCIAL ASSISTANCE; USE OF APPROPRIATED FUNDS.  (a)  The

13-22    commission may not make awards or loans under this subchapter to

13-23    any one applicant in a total amount that is greater than an amount

13-24    equal to five percent of the total amount of money appropriated to

13-25    the program for the fiscal year during which the award or loan is

 14-1    made.

 14-2          (b)  The commission may not approve an application if the

 14-3    current appropriations for the program are insufficient to pay the

 14-4    total amount requested under the application.

 14-5          (c)  The commission may not use money appropriated for

 14-6    scholarships, grants, loans, and other financial assistance to be

 14-7    awarded under this subchapter for the administrative expenses of

 14-8    the commission or of the funds allocation advisory committee.

 14-9          SECTION 1.13.  Section 419.087, Government Code, is amended

14-10    by adding Subsection (f) to read as follows:

14-11          (f)  A local government which provided fire protection for

14-12    its citizens utilizing a fire department and fire protection

14-13    personnel as of May 31, 1997, may not thereafter provide fire

14-14    protection by utilizing an organization which is not a local

14-15    government, a department of local government, or a state or federal

14-16    agency and which provides fire protection for the local government

14-17    for profit under a contract or other agreement with the local

14-18    government without approval of a majority of the voters at an

14-19    election called for that purpose.

14-20          SECTION 1.14.  Sections 419.902 and 419.903, Government Code,

14-21    are amended to read as follows:

14-22          Sec. 419.902.  COORDINATION WITH FIREMEN'S TRAINING SCHOOL.

14-23    The commission and the director of the Texas Engineering Extension

14-24    Service of The Texas A&M University System shall enter into a

14-25    memorandum of understanding to coordinate the responsibilities of

 15-1    the commission with the training provided by the firemen's training

 15-2    school operated under Section 86.16, Education Code.  [The

 15-3    commission and the director shall review and update the memorandum

 15-4    of understanding not later than the last month of each state fiscal

 15-5    year.]

 15-6          Sec. 419.903.  COORDINATION WITH TEXAS FOREST SERVICE.  The

 15-7    commission and the director of the Texas Forest Service shall enter

 15-8    into a memorandum of understanding to coordinate the provision of

 15-9    training assistance and other assistance to fire-fighting entities.

15-10    [The commission and the director shall review and update the

15-11    memorandum of understanding not later than the last month of each

15-12    state fiscal year.]

15-13          SECTION 1.15.  Subchapter Z, Chapter 419, Government Code, is

15-14    amended by adding Section 419.907 to read as follows:

15-15          Sec. 419.907.  LOCATION OF OFFICES OF COMMISSION, STATE FIRE

15-16    MARSHAL, AND TEXAS FOREST SERVICE.  (a)  To the extent feasible,

15-17    the commission, the state fire marshal, and the Texas Forest

15-18    Service shall colocate office space outside of Travis County used

15-19    for related functions preformed by the three entities.

15-20          (b)  The commission, the commissioner of insurance, and the

15-21    Texas Forest Service may enter into a memorandum of understanding

15-22    to implement this section.

15-23          SECTION 1.16.  (a)  The terms of the members of the Texas

15-24    Commission on Fire Protection serving on the effective date of this

15-25    Act expire, and that policy-making body as it existed immediately

 16-1    before the effective date of this Act is abolished, on the

 16-2    effective date of this Act.

 16-3          (b)  As soon as practicable after the effective date of this

 16-4    Act, the governor shall make appointments to the Texas Commission

 16-5    on Fire Protection to accomplish the membership plan for the

 16-6    commission established by Section 419.004, Government Code, as

 16-7    amended by this Act.  This section does not prohibit a person who

 16-8    is a member of the commission on the effective date of this Act and

 16-9    who possesses the qualifications required under Section 419.004,

16-10    Government Code, as amended by this Act, from being reappointed to

16-11    the commission under this subsection.

16-12          (c)  In making appointments under this section, the governor

16-13    shall ensure that the staggering of the terms of the members of the

16-14    Texas Commission on Fire Protection is appropriately apportioned as

16-15    required by Section 30a, Article XVI, Texas Constitution.

16-16                  ARTICLE 2.  CERTIFICATION AND LICENSING

16-17                        FUNCTIONS OF THE COMMISSION

16-18          SECTION 2.01.  Section 419.021, Government Code, is amended

16-19    to read as follows:

16-20          Sec. 419.021.  DEFINITIONS.  [(a)]  In this subchapter:

16-21                (1)  "Aircraft fire fighting and rescue fire protection

16-22    personnel" means permanent, [fully paid,] full-time local

16-23    governmental employees who, as a permanent duty assignment, fight

16-24    aircraft fires at airports, stand by for potential crash landings,

16-25    and perform aircraft crash rescue.

 17-1                (2)  "Fire department" means a department of a local

 17-2    government that is staffed by [with one or more] permanent, [fully

 17-3    paid,] full-time employees of the local government and that is

 17-4    organized to prevent or suppress fires.

 17-5                (3)  "Fire protection personnel" means:

 17-6                      (A)  permanent, [fully paid,] full-time law

 17-7    enforcement officers designated as fire and arson investigators by

 17-8    an appropriate local authority; [or]

 17-9                      (B)  aircraft crash and rescue fire protection

17-10    personnel; or

17-11                      (C)  permanent, [fully paid,] full-time fire

17-12    department employees who are not secretaries, stenographers,

17-13    clerks, budget analysts, or similar support staff persons or other

17-14    administrative employees and who are assigned duties in one or more

17-15    of the following categories:

17-16                            (i)  fire suppression;

17-17                            (ii)  fire inspection;

17-18                            (iii)  fire and arson investigation;

17-19                            (iv)  marine fire fighting;

17-20                            (v)  aircraft crash fire fighting and

17-21    rescue;

17-22                            (vi)  fire training;

17-23                            (vii)  fire education;

17-24                            (viii)  fire administration; and

17-25                            (ix)  any other position necessarily or

 18-1    customarily related to fire prevention and suppression.

 18-2                (4)  "Local government" means a municipality, a county,

 18-3    a special-purpose district or authority, or any other political

 18-4    subdivision of the state.

 18-5                (5)  "Marine fire protection personnel" means

 18-6    permanent, [fully paid,] full-time local governmental employees who

 18-7    work aboard a fireboat and fight fires that occur on or adjacent to

 18-8    a waterway, waterfront, channel, or turning basin.

 18-9                (6)  "Protective clothing" means garments, including

18-10    turnout coats, bunker coats, bunker pants, boots, gloves, trousers,

18-11    helmets, and protective hoods, worn by fire protection personnel in

18-12    the course of performing fire-fighting operations.

18-13          [(b)  In this subchapter, an officer or employee of a fire

18-14    department or other department of a local government is considered

18-15    fully paid if the officer's or employee's annual compensation for

18-16    performing one or more duties listed under Subsection (a)(3)(B),

18-17    including the value of benefits and reimbursement for expenses, is

18-18    at least equal to the amount of compensation a person would receive

18-19    working 2,080 hours at the federal minimum wage.]

18-20          [(c)  In this subchapter, an officer or employee of a fire

18-21    department or other department of a local government is considered

18-22    a full-time employee if the officer or employee works an average of

18-23    40 or more hours per week or averages approximately 40 or more

18-24    hours per week during a work cycle, as appropriate, performing one

18-25    or more duties listed under Subsection (a)(3)(B).]

 19-1          SECTION 2.02.  Subchapter B, Chapter 419, Government Code, is

 19-2    amended by adding Section 419.0225 to read as follows:

 19-3          Sec. 419.0225.  CERTAIN RULES PROHIBITED.  (a)  The

 19-4    commission may not adopt rules restricting competitive bidding or

 19-5    advertising by a certificate holder except to prohibit false,

 19-6    misleading, or deceptive practices.

 19-7          (b)  In its rules to prohibit false, misleading, or deceptive

 19-8    practices, the commission may not include a rule that:

 19-9                (1)  restricts the use of any medium for advertising;

19-10                (2)  restricts the use of a certificate holder's

19-11    personal appearance or voice in an advertisement;

19-12                (3)  relates to the size or duration of an

19-13    advertisement by the certificate holder; or

19-14                (4)  restricts the certificate holder's advertisement

19-15    under a trade name.

19-16          SECTION 2.03.  Section 419.023, Government Code, is amended

19-17    to read as follows:

19-18          Sec. 419.023.  FIRE FIGHTER [PROTECTION PERSONNEL] ADVISORY

19-19    COMMITTEE.  (a)  The commission shall establish a fire fighter

19-20    [protection personnel] advisory committee to assist the commission

19-21    in matters relating to fire protection personnel, volunteer fire

19-22    fighters, [and] fire departments, and volunteer fire departments.

19-23    The committee shall be composed of nine members appointed by the

19-24    commission.

19-25          (b)  Six members of the committee must be fire protection

 20-1    personnel or retired fire protection personnel who collectively

 20-2    represent various areas in the field of fire protection.  Three

 20-3    members of the committee must be certified instructors of fire

 20-4    protection personnel.  At least one member of the committee must be

 20-5    a volunteer fire fighter or volunteer fire chief.

 20-6          (c)  A committee member serves at the will of the commission.

 20-7          (d) [(b)]  The committee shall elect a member of the

 20-8    committee as the presiding officer of the committee.  The committee

 20-9    shall meet at least twice each calendar year at the call of the

20-10    presiding officer or at the call of the commission.

20-11          (e) [(c)]  The committee periodically shall review commission

20-12    rules relating to fire protection personnel, [and] fire

20-13    departments, and other fire fighters and fire fighting

20-14    organizations that are subject to regulation under this subchapter

20-15    and recommend changes in the rules to the commission.

20-16    [Notwithstanding Chapter 2001.031, the commission shall submit all

20-17    proposed changes and additions to the rules that relate to fire

20-18    protection personnel and fire departments to the committee for

20-19    development.  If the commission does not approve a rule developed

20-20    by the committee, the commission shall indicate to the committee

20-21    the reasons that the commission did not approve the rule and return

20-22    the rule to the committee for further development.]

20-23          SECTION 2.04.  Subsection (e), Section 419.034, Government

20-24    Code, is amended to read as follows:

20-25          (e)  Notwithstanding any other law, the commission by rule

 21-1    may establish a procedure to waive the late fees or examination

 21-2    required by this section if:

 21-3                (1)  the person's certificate expired because of the

 21-4    employing entity's good faith clerical error, including the failure

 21-5    of the employing entity to submit fees in a timely manner; or

 21-6                (2)  the person's certificate expired as a result of

 21-7    termination of the person's employment and the person has been

 21-8    restored to employment as a result of a disciplinary procedure or a

 21-9    court action [Subsection (d), a person may apply for and the

21-10    commission may issue a new certificate without the person's

21-11    retaking the proficiency examination or repeating the requirements

21-12    for obtaining an original certificate if the person previously held

21-13    the certification being sought and:]

21-14                [(1)  has continuously held fire protection personnel

21-15    certification in another discipline;]

21-16                [(2)  has been employed in a fire protection personnel

21-17    position in another jurisdiction without a break in service of one

21-18    year or longer; or]

21-19                [(3)  has been employed full-time, without a break in

21-20    service of one year or longer, by a nongovernmental entity as a

21-21    fire protection employee in circumstances under which the person

21-22    would have been eligible for fire protection personnel

21-23    certification if the person had been employed by a local

21-24    government].

21-25          SECTION 2.05.  Subchapter B, Chapter 419, Government Code, is

 22-1    amended by adding Section 419.0341 to read as follows:

 22-2          Sec. 419.0341.  INDIVIDUAL CERTIFICATE HOLDER; CERTIFICATE

 22-3    RENEWAL.  (a)  Notwithstanding any other provision of this

 22-4    subchapter, a person may be certified as fire protection personnel

 22-5    and continue to hold and renew the certificate without regard to

 22-6    whether the person is employed or continues to be employed by a

 22-7    local authority or fire department.

 22-8          (b)  A person who is certified as fire protection personnel

 22-9    who is not employed by a local authority or fire department may

22-10    renew an unexpired certificate before the expiration of the

22-11    certificate by:

22-12                (1)  submitting evidence satisfactory to the commission

22-13    of completion of any required professional education; and

22-14                (2)  paying to the commission the required renewal fee.

22-15          (c)  If the person's certificate has been expired for 30 days

22-16    or less, the person may renew the certificate by:

22-17                (1)  submitting evidence satisfactory to the commission

22-18    of completion of any required professional education; and

22-19                (2)  paying to the commission the required renewal fee

22-20    and a fee that is one-half of the certification fee for the

22-21    certificate.

22-22          (d)  If the person's certificate has been expired for longer

22-23    than 30 days but less than one year, the person may renew the

22-24    certificate by:

22-25                (1)  submitting evidence satisfactory to the commission

 23-1    of completion of any required professional education; and

 23-2                (2)  paying to the commission all unpaid renewal fees

 23-3    and a fee that is equal to the certification fee for the

 23-4    certificate.

 23-5          (e)  If the person's certificate has been expired for one

 23-6    year or longer, the person may not renew the certificate.  The

 23-7    person may obtain a new certificate by submitting to the

 23-8    proficiency examination or repeating the requirements and

 23-9    procedures for obtaining an original certificate.  The commission

23-10    shall charge a fee to cover the cost of administering the

23-11    proficiency examination.

23-12          (f)  At least 30 days before the expiration of the

23-13    certificate of a person who is not employed by a local authority or

23-14    fire department, the commission shall send written notice of the

23-15    impending certificate expiration to the last known address of the

23-16    person according to the records of the commission.

23-17          (g)  The commission shall establish by rule the procedures

23-18    and requirements for evidence of compliance with this section.

23-19          (h)  Notwithstanding any other law, the commission by rule

23-20    may establish a procedure to waive the late fees or examination

23-21    required by this section for a person whose certificate expired

23-22    because of the person's good faith clerical error, including the

23-23    person's failure to submit fees in a timely manner.

23-24          SECTION 2.06.  Subchapter B, Chapter 419, Government Code, is

23-25    amended by adding Section 419.0365 to read as follows:

 24-1          Sec. 419.0365.  DISCIPLINARY HEARING.  If the commission

 24-2    proposes to suspend, revoke, or refuse to renew a person's

 24-3    certificate, the person is entitled to a hearing conducted by the

 24-4    State Office of Administrative Hearings.  Proceedings for a

 24-5    disciplinary action are governed by the administrative procedure

 24-6    law, Chapter 2001.  Rules of practice adopted by the commission

 24-7    under Section 2001.004 applicable to the proceedings for a

 24-8    disciplinary action may not conflict with rules adopted by the

 24-9    State Office of Administrative Hearings.

24-10          SECTION 2.07.  Subchapter D, Chapter 419, Government Code, is

24-11    amended to read as follows:

24-12        SUBCHAPTER D.  VOLUNTEER FIRE FIGHTERS AND FIRE DEPARTMENTS

24-13          Sec. 419.071.  VOLUNTARY CERTIFICATION PROGRAM FOR VOLUNTEER

24-14    FIRE FIGHTERS AND FIRE DEPARTMENTS.  (a)  The commission shall

24-15    develop a voluntary certification program for volunteer fire

24-16    fighters and volunteer fire departments.  The program must include

24-17    the same components and requirements as the certification program

24-18    established under Subchapter B.  The certification program for

24-19    volunteer fire fighters and volunteer fire departments may take

24-20    into account the different circumstances of volunteer fire

24-21    fighters in establishing deadlines for completion of various

24-22    components or requirements of the program.

24-23          (b)  A certificate for a given type and level of

24-24    certification that is issued under the certification program

24-25    established under this section is equivalent to a certificate for

 25-1    the same type and level issued under Subchapter B.  The certificate

 25-2    is subject to the same issuance and renewal requirements as a

 25-3    certificate issued under Subchapter B, and a certificate holder may

 25-4    be disciplined and regulated in the same manner as provided by

 25-5    Subchapter B.  [Components of the program developed by the

 25-6    commission shall include voluntary certification of volunteer fire

 25-7    fighters, voluntary certification of facilities that train

 25-8    volunteer fire fighters, and voluntary inspection and certification

 25-9    of protective clothing and self-contained breathing apparatus of

25-10    volunteer fire departments.  A volunteer fire fighter or other

25-11    entity that chooses to become certified under a component of the

25-12    commission's certification program under this subchapter is subject

25-13    to commission rules that relate to that component.]

25-14          [(b)  The commission shall contract with a statewide

25-15    organization whose members include both volunteer and paid fire

25-16    fighters to administer and implement the program.  The commission

25-17    in the contract shall reserve the right to evaluate the

25-18    administration and implementation of the program under the contract

25-19    and the right to observe and to require information from the other

25-20    party to the contract so that the commission may perform a

25-21    meaningful evaluation.]

25-22          (c)  A volunteer fire fighter, volunteer fire department, or

25-23    facility that provides training to volunteer fire fighters is not

25-24    required to participate in any component of the commission's

25-25    program under this chapter.  A volunteer fire fighter, volunteer

 26-1    fire department, or facility that provides training to volunteer

 26-2    fire fighters may on request participate in one or more components

 26-3    of the program under this subchapter as appropriate.  The volunteer

 26-4    fire department with which a volunteer fire fighter is affiliated

 26-5    may, but is not required to, pay the certificate fee for a

 26-6    volunteer fire fighter certified under this subchapter.

 26-7          (d)  At least 30 days before the expiration of a volunteer

 26-8    fire fighter's certificate, the commission shall send written

 26-9    notice of the impending certificate expiration to the last known

26-10    address of the fire fighter according to the records of the

26-11    commission.  [The program shall make available to volunteer fire

26-12    fighters the same level of training that is made available to paid

26-13    fire protection personnel and recruits through the commission's

26-14    basic certification program under Subchapter B, but in a way that

26-15    takes into account the circumstances of volunteer fire fighters.]

26-16          [(e)  The commission by rule may:]

26-17                [(1)  establish qualifications relating to minimum age,

26-18    education, and physical and mental condition required for

26-19    certification under this subchapter;]

26-20                [(2)  establish standards relating to training programs

26-21    and to continuing education under this subchapter;]

26-22                [(3)  establish the training components required for

26-23    certification under this subchapter;]

26-24                [(4)  establish testing procedures for certification

26-25    candidates and procedures to test the satisfactory completion of

 27-1    training components; and]

 27-2                [(5)  recognize other training for credit towards

 27-3    certification under this chapter.]

 27-4          [(f)  Qualifications established for persons under this

 27-5    section may only be qualifications for certification and may not be

 27-6    qualifications for entering a certification program.]

 27-7          Sec. 419.072[.  VOLUNTEER FIRE FIGHTER ADVISORY COMMITTEE.

 27-8    (a)  The commission shall establish a volunteer fire fighter

 27-9    advisory committee to assist the commission in matters relating to

27-10    volunteer fire fighters and volunteer fire departments.  The

27-11    committee shall be composed of nine members appointed by the

27-12    commission.  Six members must be volunteer fire fighters who

27-13    collectively represent various areas in the field of fire

27-14    protection.  Three members must be instructors of volunteer fire

27-15    fighters.  Six of the nine members must be appointed from a list

27-16    submitted each year before September 1 to the commission by the

27-17    State Firemen's and Fire Marshals' Association of Texas.  A

27-18    committee member:]

27-19                [(1)  serves at the will of the commission;]

27-20                [(2)  serves for a one-year term that expires February

27-21    1; and]

27-22                [(3)  may be reappointed to the committee after the

27-23    expiration of a term.]

27-24          [(b)  The committee shall elect a member of the committee as

27-25    presiding officer of the committee.  The committee shall meet at

 28-1    least twice each calendar year at the call of the presiding officer

 28-2    or at the call of the commission.]

 28-3          [(c)  The committee shall develop and recommend to the

 28-4    commission for approval the rules of the program under this

 28-5    subchapter.  The committee periodically shall review commission

 28-6    rules relating to the commission's program under this subchapter

 28-7    and recommend changes in the rules to the commission.

 28-8    Notwithstanding Chapter 2001.031, the commission shall submit all

 28-9    proposed rules and all proposed changes and additions to the rules

28-10    that relate to the program under this subchapter to the committee

28-11    for development.  If the commission does not approve a rule

28-12    developed by the committee, the commission shall indicate to the

28-13    committee the reasons that the commission did not approve the rule

28-14    and return the rule to the committee for further development.]

28-15          [Sec. 419.073.  CERTIFICATION FEE.  The commission shall set

28-16    and collect a fee of not more than $10 for each certificate issued

28-17    under this subchapter designed to recover the commission's costs

28-18    under this subchapter.  The commission may choose to pay the fee

28-19    out of money appropriated for the implementation of Subchapter C.]

28-20          [Sec. 419.074.  RECOGNITION OF CERTAIN PRIOR CERTIFICATIONS.

28-21    (a)  The commission shall, on application, certify a person under

28-22    the commission's program under this subchapter if the person

28-23    received an advanced certificate from the State Firemen's and Fire

28-24    Marshals' Association of Texas before September 1, 1993.]

28-25          [(b)  A volunteer fire fighter who receives an advanced

 29-1    certificate from the State Firemen's and Fire Marshals' Association

 29-2    of Texas after September 1, 1993, shall on application be certified

 29-3    under this subchapter:]

 29-4                [(1)  if the commission determines that the standards

 29-5    under which the volunteer fire fighter received the advanced

 29-6    certificate are at least as stringent as the applicable standards

 29-7    in effect for that certificate on January 1, 1993; and]

 29-8                [(2)  after the successful completion of an examination

 29-9    administered by the commission for the purpose of certification

29-10    under this subchapter.]

29-11          [Sec. 419.075].  OBTAINING PAID EMPLOYMENT AS FIRE FIGHTER

29-12    [BECOMING CERTIFIED UNDER SUBCHAPTER B].  (a)  Notwithstanding

29-13    anything to the contrary in Subchapter B, a fire department may

29-14    appoint as fire protection personnel a [A] volunteer fire fighter

29-15    or former volunteer fire fighter who is certified by the commission

29-16    under this subchapter.  On receiving the appointment from the

29-17    employing fire department, the person is considered to be certified

29-18    fire protection personnel [is eligible to be certified to be fire

29-19    protection personnel under Subchapter B if the person successfully

29-20    completes the fire protection personnel examination administered

29-21    under Subchapter B on the first or second attempt.  A volunteer

29-22    fire fighter who is certified by the commission under this

29-23    subchapter and who does not successfully complete the fire

29-24    protection personnel examination administered under Subchapter B on

29-25    the first or second attempt is eligible to be certified to be fire

 30-1    protection personnel under Subchapter B only after completing a

 30-2    commission-approved certification program under Subchapter B and

 30-3    subsequent successful completion of the fire protection personnel

 30-4    examination administered under Subchapter B].

 30-5          (b)  In this section, "fire department" has the meaning

 30-6    assigned by Section 419.021.

 30-7          Sec. 419.073.  INDIVIDUAL CERTIFICATE HOLDER; CERTIFICATE

 30-8    RENEWAL.  (a)  A volunteer fire fighter certified under this

 30-9    subchapter may continue to hold and renew the certificate without

30-10    regard to whether the person continues to be affiliated with a

30-11    volunteer fire department.

30-12          (b)  A former volunteer fire fighter who is no longer

30-13    affiliated with a volunteer fire department may renew an unexpired

30-14    certificate before the expiration of the certificate by:

30-15                (1)  submitting evidence satisfactory to the commission

30-16    of completion of any required professional education; and

30-17                (2)  paying to the commission the required renewal fee.

30-18          (c)  If a person's certificate has been expired for 30 days

30-19    or less, the person may renew the certificate by:

30-20                (1)  submitting evidence satisfactory to the commission

30-21    of completion of any required professional education; and

30-22                (2)  paying to the commission the required renewal fee

30-23    and a fee that is one-half of the certification fee for the

30-24    certificate.

30-25          (d)  If a person's certificate has been expired for longer

 31-1    than 30 days but less than one year, the person may renew the

 31-2    certificate by:

 31-3                (1)  submitting evidence satisfactory to the commission

 31-4    of completion of any required professional education; and

 31-5                (2)  paying to the commission all unpaid renewal fees

 31-6    and a fee that is equal to the certification fee.

 31-7          (e)  If a person's certificate has been expired for one year

 31-8    or longer, the person may not renew the certificate.

 31-9          (f)  The commission shall establish by rule the requirements

31-10    evidence must meet to be considered satisfactory for the purpose of

31-11    complying with this section.

31-12          (g)  Notwithstanding any other law, the commission may by

31-13    rule establish a procedure to recertify a person if:

31-14                (1)  the person's certification has lapsed because of

31-15    the person's good faith clerical error, including the person's

31-16    failure to submit fees in a timely manner; or

31-17                (2)  the person's certification has lapsed as a result

31-18    of termination of the person's employment and the person has been

31-19    restored to employment as a result of a disciplinary procedure.

31-20          SECTION 2.08.  Subchapter F, Chapter 411, Government Code, is

31-21    amended by adding Section 411.1236 to read as follows:

31-22          Sec. 411.1236.  ACCESS TO CRIMINAL HISTORY RECORD

31-23    INFORMATION:  TEXAS COMMISSION ON FIRE PROTECTION.  (a)  This

31-24    section applies only to a circumstance in which:

31-25                (1)  the Texas Commission on Fire Protection:

 32-1                      (A)  issues or renews to an individual a license,

 32-2    permit, certificate, or other similar authorization; and

 32-3                      (B)  is authorized or required by law to obtain

 32-4    criminal history record information relating to the individual; and

 32-5                (2)  another person, including a state agency or local

 32-6    government:

 32-7                      (A)  is authorized or required to obtain the same

 32-8    information; and

 32-9                      (B)  did obtain that information not earlier than

32-10    the 90th day before the date on which the individual makes an

32-11    application to the Texas Commission on Fire Protection for issuance

32-12    or renewal of the license, permit, certificate, or other similar

32-13    authorization.

32-14          (b)  In a circumstance described by Subsection (a), the Texas

32-15    Commission on Fire Protection shall obtain criminal history record

32-16    information from the person who has obtained the required

32-17    information as described by Subsection (a)(2).  On request from the

32-18    Texas Commission on Fire Protection under this section, the person

32-19    shall provide the information to the Texas Commission on Fire

32-20    Protection.

32-21          (c)  Notwithstanding any other law or rule, the Texas

32-22    Commission on Fire Protection may disclose to the following persons

32-23    the fact that issuance or renewal of a license, permit,

32-24    certificate, or similar authorization was denied because of

32-25    criminal history record information:

 33-1                (1)  the individual who applied for the license,

 33-2    permit, certificate, or similar authorization; and

 33-3                (2)  if the individual is requesting certification

 33-4    under Subchapter B or D, Chapter 419, the local authority, fire

 33-5    department, or volunteer fire department for which the fire

 33-6    protection personnel or volunteer fire fighter would provide

 33-7    services.

 33-8          (d)  The Texas Commission on Fire Protection may not disclose

 33-9    the content of the criminal history record information under

33-10    Subsection (c)(2).

33-11          SECTION 2.09.  The heading of Subchapter B, Chapter 419,

33-12    Government Code, is amended to read as follows:

33-13         SUBCHAPTER B.  REGULATING AND ASSISTING FIRE FIGHTERS AND

33-14          [FULLY PAID LOCAL FIRE PROTECTION PERSONNEL AND LOCAL]

33-15                             FIRE DEPARTMENTS

33-16          SECTION 2.10.  The fire protection personnel advisory

33-17    committee is abolished.  As soon as possible on or after the

33-18    effective date of this Act, the Texas Commission on Fire Protection

33-19    shall establish and make appointments to the fire fighter advisory

33-20    committee under Section 419.023, Government Code, as amended by

33-21    this Act.

33-22          SECTION 2.11.  The volunteer fire fighter advisory committee

33-23    established under Section 419.072, Government Code, is abolished.

33-24          SECTION 2.12.  The change in law made by Section 419.0365,

33-25    Government Code, as added by this Act, applies only to a

 34-1    disciplinary proceeding commenced on or after the effective date of

 34-2    this Act.  A disciplinary proceeding commenced before the effective

 34-3    date of this Act is governed by the law in effect immediately

 34-4    before the effective date of this Act, and that law is continued in

 34-5    effect for this purpose.

 34-6                    ARTICLE 3.  THE STATE FIRE MARSHAL

 34-7          SECTION 3.01.  Sections 417.001, 417.002, 417.003, 417.004,

 34-8    417.005, and 417.0051, Government Code, are amended to read as

 34-9    follows:

34-10          Sec. 417.001.  DEFINITIONS [DEFINITION].  In this chapter:

34-11                (1)  "Commissioner" means the commissioner of

34-12    insurance.

34-13                (2)  "Department" means the Texas Department of

34-14    Insurance[, "commission" means the Texas Commission on Fire

34-15    Protection].

34-16          Sec. 417.002.  APPOINTMENT AND TENURE.  The state fire

34-17    marshal is appointed by the commissioner [executive director of the

34-18    commission subject to approval by the commission].  The state fire

34-19    marshal serves at the pleasure of the commissioner [commission] and

34-20    may be discharged at any time.  The [commission shall require the]

34-21    state fire marshal shall [to] report to the commissioner

34-22    [commission through the executive director].

34-23          Sec. 417.003.  STATUS AS STATE-COMMISSIONED OFFICER.  The

34-24    state fire marshal is a state-commissioned officer and functions in

34-25    that capacity subject to rules of the commissioner [commission].

 35-1          Sec. 417.004.  GENERAL POWERS AND DUTIES.  (a)  The state

 35-2    fire marshal, under the supervision of the commissioner

 35-3    [commission], shall administer and enforce applicable provisions of

 35-4    the Insurance Code and other law relating to the state fire

 35-5    marshal.  The commissioner [commission] shall perform the

 35-6    supervisory and rule-making functions previously performed by the

 35-7    Texas Commission on Fire Protection [State Board of Insurance]

 35-8    under this subsection.  The commissioner and the commission [and

 35-9    the board] shall transfer information between the two agencies as

35-10    necessary to allow the agencies to perform their statutory duties.

35-11    The commissioner and the commission [and the board] may make and

35-12    adopt by rule memoranda of understanding as necessary to coordinate

35-13    their respective duties.

35-14          (b)  The state fire marshal is the chief investigator in

35-15    charge of the investigation of arson and suspected arson in the

35-16    state.

35-17          (c)  The state fire marshal may make or encourage studies of

35-18    fire protection, including fire administration.

35-19          (d)  The state fire marshal may conduct research to improve

35-20    fire protection and fire administration and may stimulate research

35-21    by public and private agencies for that purpose.

35-22          (e)  The state fire marshal may, on the request of a public

35-23    or nonprofit entity with duties related to fire protection, advise

35-24    or assist the entity in relation to those duties.

35-25          Sec. 417.005.  ADOPTION OF RULES.  The commissioner

 36-1    [commission], after consulting with the state fire marshal, may

 36-2    adopt necessary rules to guide the state fire marshal and fire and

 36-3    arson investigators commissioned by the state fire marshal in the

 36-4    investigation of arson, fire, and suspected arson and in the

 36-5    performance of other duties for the commissioner [commission].

 36-6          Sec. 417.0051.  FIRE PREVENTION AND SAFETY EDUCATION.  The

 36-7    commissioner [commission], through the state fire marshal, may use

 36-8    pertinent and timely facts relating to fires to develop educational

 36-9    programs and disseminate materials necessary to educate the public

36-10    effectively regarding methods of fire prevention and safety.

36-11          SECTION 3.02.  Chapter 417, Government Code, is amended by

36-12    adding Section 417.0052 to read as follows:

36-13          Sec. 417.0052.  TEXAS FIRE INCIDENT REPORTING SYSTEM.  The

36-14    state fire marshal, under the direction of the commissioner, is

36-15    responsible for maintaining and administering the Texas Fire

36-16    Incident Reporting System.

36-17          SECTION 3.03.  Section 417.006, Government Code, is amended

36-18    to read as follows:

36-19          Sec. 417.006.  FIRE AND ARSON INVESTIGATORS.  The state fire

36-20    marshal may commission peace officers to act as fire and arson

36-21    investigators under his supervision and to perform other law

36-22    enforcement duties assigned to the commissioner and the state fire

36-23    marshal [commission] by law.  The state fire marshal may revoke a

36-24    peace officer's commission under this section for just cause.

36-25          SECTION 3.04.  Subsections (a) and (c), Section 417.007,

 37-1    Government Code, are amended to read as follows:

 37-2          (a)  The state fire marshal shall immediately investigate a

 37-3    fire occurring in this state in which property is destroyed if the

 37-4    commissioner [commission] directs the investigation or, in the

 37-5    discretion of the commissioner [commission], if the investigation

 37-6    is requested by:

 37-7                (1)  the mayor, fire chief, fire marshal, or police

 37-8    chief of a municipality in which a fire occurs;

 37-9                (2)  a county or district judge, sheriff, county fire

37-10    marshal, chief or fire marshal of a fire department in an

37-11    unincorporated area, or county attorney of a county in which a fire

37-12    occurs;

37-13                (3)  a fire insurance company interested in a loss or

37-14    the company's general, state, or special agent;

37-15                (4)  an insurance policyholder, property owner, or

37-16    lessee sustaining a fire loss;

37-17                (5)  a justice of the peace or a constable of a

37-18    precinct in which a fire occurs; or

37-19                (6)  officials of a state or federal law enforcement

37-20    agency or local or special governmental district involved or

37-21    interested in a fire loss that occurred in this state.

37-22          (c)  The state fire marshal shall conduct the investigation

37-23    at the place of the fire and before an insured loss may be paid.

37-24    The state fire marshal shall ascertain, if possible, whether the

37-25    fire was caused intentionally, carelessly, or accidentally.  The

 38-1    state fire marshal shall make a written report of the investigation

 38-2    to the commissioner [commission].

 38-3          SECTION 3.05.  Subsection (e), Section 417.008, Government

 38-4    Code, is amended to read as follows:

 38-5          (e)  The commissioner [commission] may adopt by rule any

 38-6    appropriate standard developed by a nationally recognized

 38-7    standards-making association under which the state fire marshal may

 38-8    enforce this section, except that standards adopted by rule under

 38-9    this subsection do not apply in a geographic area under the

38-10    jurisdiction of a local government that has adopted fire protection

38-11    ordinances that apply in the geographic area.

38-12          SECTION 3.06.  Section 417.0081, Government Code, is amended

38-13    to read as follows:

38-14          Sec. 417.0081.  INSPECTION OF CERTAIN STATE-OWNED BUILDINGS.

38-15    The state fire marshal, at the commissioner's [commission's]

38-16    direction, shall periodically inspect public buildings under the

38-17    charge and control of the General Services Commission [and shall

38-18    take any action authorized by the commission to protect the

38-19    buildings and their occupants from an existing or threatened fire

38-20    hazard].

38-21          SECTION 3.07.  Section 419.0081, Government Code, is

38-22    transferred to Chapter 417, Government Code, renumbered as Section

38-23    417.0082, and amended to read as follows:

38-24          Sec. 417.0082 [419.0081].  PROTECTION OF CERTAIN STATE-OWNED

38-25    BUILDINGS AGAINST FIRE HAZARDS.  (a)  The state fire marshal, under

 39-1    the direction of the commissioner, [commission] shall take any

 39-2    action necessary to protect a public building under the charge and

 39-3    control of the General Services Commission, and the building's

 39-4    occupants, against an existing or threatened fire hazard.

 39-5          (b)  The commissioner [commission] and the General Services

 39-6    Commission shall make and each adopt by rule a memorandum of

 39-7    understanding that coordinates the agency's duties under this

 39-8    section.

 39-9          SECTION 3.08.  Section 419.901, Government Code, is

39-10    transferred to Chapter 417, Government Code, renumbered as Section

39-11    417.0083, and amended to read as follows:

39-12          Sec. 417.0083 [419.901].  FIRE SUPPRESSION RATINGS [KEY RATE]

39-13    SCHEDULE.  (a)  [The commission shall review the key rate schedule

39-14    of the State Board of Insurance at least once every four years.

39-15    The commission shall recommend changes that the commission believes

39-16    should be made in the schedule to the board.]

39-17          [(b)  The commission shall inspect municipalities, using the

39-18    key rate schedule, recommend the key rate to the State Board of

39-19    Insurance for its approval, and report information obtained as a

39-20    result of the inspection to the board.  If the board does not

39-21    approve a rate recommended by the commission, the board shall

39-22    inform the commission of the reason and the commission shall

39-23    recommend another rate.]

39-24          [(c)]  The state fire marshal shall perform duties as

39-25    directed by the commissioner [commission and the State Board of

 40-1    Insurance shall adopt a memorandum of understanding that

 40-2    coordinates their respective duties] relating to the department's

 40-3    fire suppression ratings [key rate] schedule.

 40-4          (b)  The state fire marshal may provide technical assistance

 40-5    to paid fire departments, volunteer fire departments, and local

 40-6    governments responding to the use of the fire suppression ratings

 40-7    schedule.

 40-8          SECTION 3.09.  Subsection (b), Section 417.009, Government

 40-9    Code, is amended to read as follows:

40-10          (b)  The designated person has the same authority with

40-11    respect to the investigation as is provided by this chapter for the

40-12    state fire marshal.  The designated person is entitled to

40-13    compensation as provided by the commissioner [action of the

40-14    commission].

40-15          SECTION 3.10.  Section 417.010, Government Code, is amended

40-16    to read as follows:

40-17          Sec. 417.010.  ALTERNATE REMEDIES.  The state fire marshal,

40-18    in the enforcement of a law that is enforced by or through the

40-19    state fire marshal, may in lieu of cancelling, revoking, or

40-20    suspending a license or certificate of registration impose on the

40-21    holder of the license or certificate of registration an order

40-22    directing the holder to do one or more of the following:

40-23                (1)  cease and desist from a specified activity;

40-24                (2)  remit to the commissioner [commission] within a

40-25    specified time a monetary forfeiture not to exceed $10,000 for each

 41-1    violation of an applicable law or rule; and

 41-2                (3)  make restitution to a person harmed by the

 41-3    holder's violation of an applicable law or rule.

 41-4          SECTION 3.11.  Section 417.0041, Government Code, is

 41-5    repealed.

 41-6        ARTICLE 4.  FUNCTIONS OF THE TEXAS DEPARTMENT OF INSURANCE

 41-7          SECTION 4.01.  Subsection (b), Section 7, Article 5.43-1,

 41-8    Insurance Code, is amended to read as follows:

 41-9          (b)  The commissioner, through the State Fire Marshal, may

41-10    suspend, revoke, or refuse to issue or renew a license, apprentice

41-11    permit, hydrostatic testing certificate, certificate of

41-12    registration, or approval of a testing laboratory in accordance

41-13    with Section 13  of this article [State Board of Insurance may

41-14    through the State Fire Marshal conduct hearings or proceedings

41-15    concerning the suspension, revocation, or refusal of the issuance

41-16    or renewal of licenses, apprentice permits, hydrostatic testing

41-17    certificates, certificates of registration, or approvals of testing

41-18    laboratories issued under this article or the application to

41-19    suspend, revoke, refuse to renew, or refuse to issue the same].

41-20          SECTION 4.02.  Article 5.43-1, Insurance Code, is amended by

41-21    adding Section 8A to read as follows:

41-22          Sec. 8A.  CERTAIN RULES PROHIBITED.  (a)  The commissioner

41-23    may not adopt rules restricting competitive bidding or advertising

41-24    by the holder of a license, permit, certificate, or approval issued

41-25    under this article except to prohibit false, misleading, or

 42-1    deceptive practices.

 42-2          (b)  In the commissioner's rules to prohibit false,

 42-3    misleading, or deceptive practices, the commissioner may not

 42-4    include a rule that:

 42-5                (1)  restricts the use of any medium for advertising;

 42-6                (2)  restricts the use of a license, permit,

 42-7    certificate, or approval holder's personal appearance or voice in

 42-8    an advertisement;

 42-9                (3)  relates to the size or duration of an

42-10    advertisement by the license, permit, certificate, or approval

42-11    holder; or

42-12                (4)  restricts the license, permit, certificate, or

42-13    approval holder's advertisement under a trade name.

42-14          SECTION 4.03.  Section 9, Article 5.43-1, Insurance Code, is

42-15    amended to read as follows:

42-16          Sec. 9.  FIRE EXTINGUISHER ADVISORY COUNCIL [DELEGATION OF

42-17    POWER BY STATE BOARD OF INSURANCE].  (a)  The commissioner [State

42-18    Board of Insurance] may delegate the exercise of all or part of the

42-19    commissioner's [its] functions, powers, and duties under this

42-20    article, except for the issuance of licenses, certificates, and

42-21    permits, to a Fire Extinguisher Advisory Council whose members

42-22    shall be appointed by the commissioner [State Board of Insurance].

42-23    The council shall assist in the review and formulation of rules

42-24    adopted under this article and shall periodically review rules

42-25    implementing this article and recommend changes in the rules to the

 43-1    commissioner [in accordance with Section 417.0041, Government

 43-2    Code].

 43-3          (b)  The members of the council shall be experienced and

 43-4    knowledgeable in one or more of the following areas:  fire

 43-5    services, fire extinguisher manufacturing, fire insurance

 43-6    inspection or underwriting, fire extinguisher servicing, or be a

 43-7    member of a fire protection association or industrial safety

 43-8    association.

 43-9          SECTION 4.04.  Article 5.43-1, Insurance Code, is amended by

43-10    adding Section 13 to read as follows:

43-11          Sec. 13.  DISCIPLINARY HEARING.  If the State Fire Marshal

43-12    proposes to suspend, revoke, or refuse to renew a license, permit,

43-13    certificate, or approval issued under this article, the holder of

43-14    the license, permit, certificate, or approval is entitled to a

43-15    hearing conducted by the State Office of Administrative Hearings.

43-16    Proceedings for a disciplinary action are governed by the

43-17    administrative procedure law, Chapter 2001, Government Code.  Rules

43-18    of practice adopted by the commissioner applicable to the

43-19    proceedings for a disciplinary action may not conflict with rules

43-20    adopted by the State Office of Administrative Hearings.

43-21          SECTION 4.05.  Section 1, Article 5.43-2, Insurance Code, is

43-22    amended to read as follows:

43-23          Sec. 1.  PURPOSE.  The purpose of this article is to regulate

43-24    the planning, certifying, leasing, selling, servicing, installing,

43-25    monitoring, and maintaining of fire detection and fire alarm

 44-1    devices and systems and, except as provided by rules adopted under

 44-2    Section 6 of this article, to prohibit fire detection and fire

 44-3    alarm devices, [and] equipment, and systems not labeled or listed

 44-4    by a nationally recognized testing laboratory [approved by the

 44-5    State Board of Insurance], in the interest of safeguarding lives

 44-6    and property.

 44-7          SECTION 4.06.  Subsections (a), (b), and (f), Section 5,

 44-8    Article 5.43-2, Insurance Code, are amended to read as follows:

 44-9          (a)  Each person or organization engaged in the business of

44-10    planning, certifying, leasing, selling, servicing, installing,

44-11    monitoring, or maintaining fire alarm or fire detection devices or

44-12    systems shall have a certificate of registration issued by the

44-13    commissioner [board].  The initial fee for the certificate of

44-14    registration must be in an amount not to exceed $500 and the

44-15    renewal fee for each year thereafter must be in an amount not to

44-16    exceed $500.  The renewal fee for a person or organization engaged

44-17    in the business of planning, certifying, leasing, selling,

44-18    servicing, installing, monitoring, or maintaining exclusively

44-19    single station devices shall be in an amount not to exceed $250.  A

44-20    registered person or firm shall retain at least one fire alarm

44-21    technician, residential fire alarm superintendent or fire alarm

44-22    planning superintendent as an employee.  A registered person or

44-23    firm that is engaged in the business of planning, certifying,

44-24    leasing, selling, servicing, installing, monitoring, or maintaining

44-25    exclusively single station devices shall have at least one fire

 45-1    alarm technician, residential fire alarm superintendent, or fire

 45-2    alarm planning superintendent.  A limited certificate of

 45-3    registration may be issued to persons or organizations whose

 45-4    business is restricted to monitoring.

 45-5          (b)  Each separate office location of a registered firm,

 45-6    other than the location identified on the certificate of

 45-7    registration, shall have a branch office registration certificate

 45-8    issued by the commissioner [board].  The initial fee for this

 45-9    branch office registration certificate must be in an amount not to

45-10    exceed $150 and the renewal fee for each year thereafter must be in

45-11    an amount not to exceed $150.  The commissioner [board] shall

45-12    identify each branch office location as a part of a registered

45-13    organization before a branch office registration certificate may be

45-14    issued.  A registered person or firm that is engaged in the

45-15    business of planning, certifying, leasing, selling, servicing,

45-16    installing, monitoring, or maintaining exclusively single station

45-17    devices shall not be required to apply for or obtain a branch

45-18    office registration certificate for a separate office or location

45-19    of the registered firm.

45-20          (f)  A person licensed pursuant to this article shall be an

45-21    employee or agent of an organization that holds a valid certificate

45-22    of registration in order to engage in the activity for which the

45-23    license was granted.

45-24          SECTION 4.07.  Subsection (a), Section 5C, Article 5.43-2,

45-25    Insurance Code, is amended to read as follows:

 46-1          (a)  An unexpired license or registration may be renewed by

 46-2    paying the required renewal fee to the board before the expiration

 46-3    of the license or registration.  If a license or registration has

 46-4    been expired for not longer than 90 days, the license or

 46-5    registration may be renewed by paying to the board the required

 46-6    renewal fee and a fee that is not to exceed one-fourth of the

 46-7    original fee for the license or registration.  If a license or

 46-8    registration has been expired for longer than 90 days but less than

 46-9    two years, the license or registration may be renewed by paying to

46-10    the board all unpaid renewal fees and a fee that is not to exceed

46-11    the original fee for the license or registration.  If a license or

46-12    registration has been expired for two years or longer, the license

46-13    or registration may not be renewed.  A new license or registration

46-14    may be obtained by complying with the requirements and procedures

46-15    for obtaining an original license or registration.  At least 30

46-16    days before the expiration of a license or registration, the State

46-17    Fire Marshal shall send written notice of the impending license or

46-18    registration expiration to the licensee or registrant at his or its

46-19    last known address.  This section may not be construed to prevent

46-20    the board from denying or refusing to renew a license under

46-21    applicable law or rules of the State Board of Insurance.  A

46-22    licensee with an unexpired license who is not employed by a

46-23    registered firm at the time of the licensee's renewal may renew

46-24    that license; however, the licensee may not engage in any activity

46-25    for which the license was granted until the licensee is employed

 47-1    and qualified under a registered firm.

 47-2          SECTION 4.08.  Section 5D, Article 5.43-2, Insurance Code, is

 47-3    amended to read as follows:

 47-4          Sec. 5D.  Examination.  (a)  Each applicant for a license

 47-5    must pass a written examination.  Examinations shall be conducted

 47-6    by the State Fire Marshal.  Examinations shall cover this article

 47-7    and board rules and shall include specific testing of all

 47-8    categories of licensure.  Not later than the 30th day after the day

 47-9    on which an examination is administered under this article, the

47-10    State Fire Marshal shall send notice to each examinee of the

47-11    results of the examination.  If an examination is conducted,

47-12    graded, or reviewed by a testing service, the State Fire Marshal

47-13    shall send notice to the examinees of the results of the

47-14    examination within two weeks after the date on which the State Fire

47-15    Marshal receives the results from the testing service.  If the

47-16    notice of the examination results will be delayed for longer than

47-17    90 days after the examination date, the State Fire Marshal shall

47-18    send notice to the examinee of the reason for the delay before the

47-19    90th day.  If requested in writing by a person who fails the

47-20    examination administered under this article, the State Fire Marshal

47-21    shall send to the person an analysis of the person's performance on

47-22    the examination.

47-23          (b)  A training school shall make an application for approval

47-24    to the State Fire Marshal.  Applications shall include complete

47-25    course or testing curriculum.  The State Fire Marshal shall review

 48-1    the materials for course approval and shall provide a letter of

 48-2    course approval or a letter of denial within 60 days.  Denials of

 48-3    approval shall be in writing and shall disclose specific reasons

 48-4    for the denial.  Denied applicants may reapply at any time.

 48-5    Approval for a training school or testing service shall be valid

 48-6    for one year, and the initial and renewal fee for a training school

 48-7    approval shall not exceed $500.  A registered firm, or an affiliate

 48-8    of a registered firm, shall not be approved as a training school.

 48-9          (c)  Instructors for training schools shall be approved by

48-10    the State Fire Marshal.  Instructors must have a minimum of three

48-11    years of experience in fire alarm installation, service, or

48-12    monitoring and shall have a valid fire alarm planning

48-13    superintendent license.  An instructor's approval shall be

48-14    effective for one year, and the initial or renewal fee for approval

48-15    of an instructor shall not exceed $50.

48-16          (d)  The training curriculum for a fire alarm technician and

48-17    a residential fire alarm superintendent course shall consist of 16

48-18    hours of classroom instruction on all categories of licensure.

48-19          (e)  Training schools must conduct two or more classes, open

48-20    to the public, each calendar year from the issuance of

48-21    registration, within 125 miles of each county in the state that has

48-22    a population in excess of 500,000 people according to the last

48-23    decennial census.

48-24          SECTION 4.09.  Section 6, Article 5.43-2, Insurance Code, is

48-25    amended to read as follows:

 49-1          Sec. 6.  POWERS AND DUTIES OF THE COMMISSIONER [STATE BOARD

 49-2    OF INSURANCE].  (a)  The commissioner may adopt rules as necessary

 49-3    to administer this article.  The rules may establish specialized

 49-4    licenses and certificates of registration for organizations or

 49-5    persons engaged in the business of planning, certifying, leasing,

 49-6    selling, servicing, installing, monitoring, or maintaining fire

 49-7    alarm or fire detection devices or systems.  The rules shall

 49-8    establish appropriate training and qualification standards for each

 49-9    kind of license and certificate of registration [board shall

49-10    delegate authority to exercise all or part of its functions,

49-11    powers, and duties under this article, including the issuance of

49-12    certificates and licenses, to the state fire marshal, and the state

49-13    fire marshal along with assistance of an advisory council to be

49-14    appointed by the board shall implement such rules as may be

49-15    determined by the board in accordance with Section 417.0041,

49-16    Government Code to be essentially necessary for the protection and

49-17    preservation of life and property in controlling:]

49-18                [(1)  the registration of persons and organizations

49-19    engaging in the business of planning, certifying, leasing, selling,

49-20    servicing, installing, monitoring, or maintaining fire alarm or

49-21    fire detection devices or systems; and]

49-22                [(2)  the requirements for the planning, certifying,

49-23    leasing, selling, servicing, installing, monitoring, or maintaining

49-24    of fire alarm or fire detection devices or systems by:]

49-25                      [(A)  conducting examinations and evaluating the

 50-1    qualifications of applicants for a certificate of registration to

 50-2    engage in the business of planning, certifying, leasing, selling,

 50-3    servicing, installing, monitoring, or maintaining fire alarm or

 50-4    fire detection devices or systems;]

 50-5                      [(B)  conducting examinations and evaluating the

 50-6    qualifications of applicants for fire alarm technician, residential

 50-7    fire alarm superintendent, or fire alarm planning superintendent

 50-8    licenses;]

 50-9                      [(C)  evaluating and determining which

50-10    organizations shall be approved as testing laboratories for the

50-11    purpose of this article; and]

50-12                      [(D)  evaluating and approving required training

50-13    programs for all persons who engage in the business of planning,

50-14    certifying, leasing, selling, servicing, installing, monitoring, or

50-15    maintaining fire alarm or fire detection devices or systems].

50-16          (b)  The commissioner shall also adopt standards applicable

50-17    to any fire alarm device, equipment, or system regulated under this

50-18    article.  In adopting standards under this subsection, the

50-19    commissioner may permit the operation of a fire alarm monitoring

50-20    station that relies on fire alarm devices or equipment that is

50-21    approved or listed by a nationally recognized testing laboratory,

50-22    without regard to whether the monitoring station is approved or

50-23    listed by a nationally recognized testing laboratory as long as the

50-24    operator of the station demonstrates that its operating standards

50-25    are substantially equivalent to those required in order to be

 51-1    approved or listed [board may, after notice and opportunity for

 51-2    hearing, increase or decrease the limits of insurance coverage].

 51-3          (c)  An advisory council appointed in accordance with

 51-4    Subsection (d) of this section shall periodically review rules

 51-5    implementing this article and recommend changes in the rules to the

 51-6    commissioner.

 51-7          (d)  The advisory council is appointed by the commissioner

 51-8    and is composed of seven individuals as follows:

 51-9                (1)  three individuals employed by any registered firm

51-10    in the fire protection industry who have a minimum of three years

51-11    experience in the sale, installation, maintenance, or manufacturing

51-12    of fire alarm or fire detection devices;

51-13                (2)  two individuals who must either be experienced in

51-14    the engineering of fire prevention services or be a member of a

51-15    fire protection association;

51-16                (3)  one person experienced and employed by a

51-17    municipality or county as a fire prevention officer; and

51-18                (4)  one person who is employed by any registered firm

51-19    and who has at least three years experience in the operation of a

51-20    central fire alarm monitoring station.

51-21          SECTION 4.10.  Article 5.43-2, Insurance Code, is amended by

51-22    adding Sections 6A and 10A to read as follows:

51-23          Sec. 6A.  CERTAIN RULES PROHIBITED.  (a)  The commissioner

51-24    may not adopt rules restricting competitive bidding or advertising

51-25    by the holder of a license or registration issued under this

 52-1    article except to prohibit false, misleading, or deceptive

 52-2    practices.

 52-3          (b)  In the commissioner's rules to prohibit false,

 52-4    misleading, or deceptive practices, the commissioner may not

 52-5    include a rule that:

 52-6                (1)  restricts the use of any medium for advertising;

 52-7                (2)  restricts the use of a license or registration

 52-8    holder's personal appearance or voice in an advertisement;

 52-9                (3)  relates to the size or duration of an

52-10    advertisement by the license or registration holder; or

52-11                (4)  restricts the license or registration holder's

52-12    advertisement under a trade name.

52-13          Sec. 10A.  DISCIPLINARY HEARING.  If the State Fire Marshal

52-14    proposes to suspend, revoke, or refuse to renew a license or

52-15    certificate of registration of a person, the person is entitled to

52-16    a hearing conducted by the State Office of Administrative Hearings.

52-17    Proceedings for a disciplinary action are governed by the

52-18    administrative procedure law, Chapter 2001, Government Code.  Rules

52-19    of practice adopted by the commissioner applicable to the

52-20    proceedings for a disciplinary action may not conflict with rules

52-21    adopted by the State Office of Administrative Hearings.

52-22          SECTION 4.11.  Section 6, Article 5.43-3, Insurance Code, is

52-23    amended to read as follows:

52-24          Sec. 6.  ADVISORY COUNCIL.  (a)  The Fire Protection Advisory

52-25    Council is created.  The commissioner [board] shall appoint the

 53-1    members of the advisory council, who shall serve at the pleasure of

 53-2    the commissioner [board].

 53-3          (b)  The advisory council, in addition to other duties

 53-4    delegated by the commissioner [board], shall [in accordance with

 53-5    Section 417.0041, Government Code]:

 53-6                (1)  advise the State Fire Marshal concerning practices

 53-7    in the fire protection sprinkler system industry and the rules

 53-8    necessary to implement and administer this article; and

 53-9                (2)  make recommendations to the State Fire Marshal

53-10    regarding forms and procedures for certificates of registration and

53-11    licenses.

53-12          (c)  The advisory council shall have seven members as

53-13    follows:

53-14                (1)  three individuals who have been actively engaged

53-15    in the management of a fire protection sprinkler system business

53-16    for not less than five years preceding their appointment;

53-17                (2)  one representative of the engineering section of

53-18    the board's property division;

53-19                (3)  one volunteer fire fighter [member of the State

53-20    Firemen's and Fire Marshal's Association of Texas]; and

53-21                (4)  one member from each of two fire departments of

53-22    incorporated cities of this state.

53-23          (d)  The advisory council shall periodically review rules

53-24    implementing this article and recommend changes in the rules to the

53-25    commissioner.

 54-1          (e)  The State Firemen's and Fire Marshals' Association of

 54-2    Texas may, on request by the commissioner, recommend a volunteer

 54-3    fire fighter for appointment to the advisory council.

 54-4          SECTION 4.12.  Article 5.43-3, Insurance Code, is amended by

 54-5    adding Sections 7A and 9A to read as follows:

 54-6          Sec. 7A.  CERTAIN RULES PROHIBITED.  (a)  The commissioner

 54-7    may not adopt rules restricting competitive bidding or advertising

 54-8    by the holder of a certificate of registration, license, or permit

 54-9    issued under this article except to prohibit false, misleading, or

54-10    deceptive practices.

54-11          (b)  In the commissioner's rules to prohibit false,

54-12    misleading, or deceptive practices, the commissioner may not

54-13    include a rule that:

54-14                (1)  restricts the use of any medium for advertising;

54-15                (2)  restricts the use of a certificate, license, or

54-16    permit holder's personal appearance or voice in an advertisement;

54-17                (3)  relates to the size or duration of an

54-18    advertisement by the certificate, license, or permit holder; or

54-19                (4)  restricts the certificate, license, or permit

54-20    holder's advertisement under a trade name.

54-21          Sec. 9A.  DISCIPLINARY HEARING.  If the State Fire Marshal

54-22    proposes to suspend, revoke, or refuse to renew a certificate of

54-23    registration, license, or permit of a person, the person is

54-24    entitled to a hearing conducted by the State Office of

54-25    Administrative Hearings.  Proceedings for a disciplinary action are

 55-1    governed by the administrative procedure law, Chapter 2001,

 55-2    Government Code.  Rules of practice adopted by the commissioner

 55-3    applicable to the proceedings for a disciplinary action may not

 55-4    conflict with rules adopted by the State Office of Administrative

 55-5    Hearings.

 55-6          SECTION 4.13.  Article 5.43-4, Insurance Code, is amended to

 55-7    read as follows:

 55-8          Art. 5.43-4.  FIREWORKS

 55-9          Sec. 1.  Definitions.  In this article:

55-10                (1)  "Board" means the State Board of Insurance.

55-11                (2)  "Fireworks 1.3G [Class B fireworks" or "special

55-12    fireworks]" means a large fireworks device designed primarily to

55-13    produce visible or audible effects by combustion, deflagration, or

55-14    detonation and that is classified as a 1.3G [Class B] explosive by

55-15    the United States Department of Transportation in 49 C.F.R. Part

55-16    173 (1996).

55-17                (3)  "Fireworks 1.4G [Class C fireworks" or "common

55-18    fireworks]" means a small fireworks device designed primarily to

55-19    produce visible or audible effects by combustion, deflagration, or

55-20    detonation that complies with the construction, labeling, and

55-21    chemical composition requirements of the United States Consumer

55-22    Product Safety Commission in 16 C.F.R. Part 1507 (1996) [(1984)],

55-23    or the most recently adopted version of that rule, [and the

55-24    labeling requirements] of the United States Consumer Product Safety

55-25    Commission, and that is classified [as a Class C explosive] by the

 56-1    United States Department of Transportation in 49 C.F.R. Part 173

 56-2    (1996).

 56-3                (4)  "Department" means the United States Department of

 56-4    Transportation.

 56-5                (5)  "Distributor" means a person or entity that

 56-6    imports fireworks into this state or sells fireworks to jobbers,

 56-7    retailers, or other distributors for resale to others, or to public

 56-8    display permittees or multiple public display permittees or other

 56-9    firework permittees.

56-10                (6)  "Fireworks" means any composition or device

56-11    designed for entertainment to produce a visible or audible effect

56-12    by combustion, explosion, deflagration, or detonation, and that is

56-13    defined in 49 C.F.R. Section 173.56(j) (1996) [as "special

56-14    fireworks" by 49 C.F.R. Section 173.88(d) (1983), or as "common

56-15    fireworks" by 49 C.F.R. Section 173.100(r) (1983)].

56-16                (7)  "Fire prevention officer" means the chief of a

56-17    fire department, a fire marshal, the county fire marshal, the

56-18    sheriff, a constable, any other local enforcement officer primarily

56-19    responsible for fire prevention, or, if there is no local fire

56-20    authority, the state fire marshal.

56-21                (8)  "Illegal fireworks" means a fireworks device

56-22    manufactured, distributed, or sold in violation of this article.

56-23                (9)  "Indoor or Proximate Display" means a pyrotechnic

56-24    display involving the ignition of Fireworks 1.3G or 1.4G for public

56-25    amusement where audiences are closer to pyrotechnic devices than

 57-1    permitted by NFPA 1123 Code of Fireworks Display.  This term does

 57-2    not include the use of Fireworks 1.4G by a retail consumer for

 57-3    private or personal amusement ["Importer" means a person who

 57-4    imports fireworks from a foreign country or from another state for

 57-5    sale to distributors or jobbers in this state].

 57-6                (10)  "Jobber" means a person who purchases fireworks

 57-7    for resale to retailers only.

 57-8                (11)  "Manufacturer" means a person, firm, corporation,

 57-9    or association that engages in the making of fireworks.

57-10                (12)  "Person" means an individual or entity, including

57-11    an owner, manager, officer, employee, or occupant.

57-12                (13)  "Public display" means the igniting of Fireworks

57-13    1.3G [Class B fireworks] for public or private amusement.

57-14                (14)  "Pyrotechnic operator" means an individual who,

57-15    by experience, training, and passing any required examination, has

57-16    demonstrated the necessary skill and ability for safely assembling,

57-17    discharging, and supervising proximate [public] displays of

57-18    Fireworks 1.3G or Fireworks 1.4G [Class B fireworks].

57-19                (15)  "Retailer" means a person who purchases fireworks

57-20    for resale to the general public only.

57-21                (16)  "Sale" means the sale or offering for sale any

57-22    merchandise, equipment, or service, at wholesale or retail, to the

57-23    public or to any person, for an agreed sum of money or other

57-24    consideration.

57-25                (17)  "State fire marshal" means the chief law

 58-1    enforcement officer of the state charged with the responsibility of

 58-2    fire prevention.

 58-3                (18)  "Insurance agent" means:

 58-4                      (A)  a person, firm, or corporation licensed

 58-5    under Article 21.14 or 1.14-2 of this code;

 58-6                      (B)  a salaried, state, or special agent; and

 58-7                      (C)  a person authorized to represent an

 58-8    insurance fund or pool created by a city, county, or other

 58-9    political subdivision of the state under The Interlocal Cooperation

58-10    Act (Article 4413(32c), Vernon's Texas Civil Statutes).

58-11                (19)  "Pyrotechnic special effects operator" means an

58-12    individual who, by experience, training, and passing any required

58-13    examination, has demonstrated the necessary skill and ability for

58-14    safely assembling, discharging, and supervising proximate displays

58-15    of Fireworks 1.3G or Fireworks 1.4G.

58-16          Sec. 2.  Permissible Fireworks.  (a)  Except as provided by

58-17    Subsection (b) of this section, Fireworks 1.4G [Class C fireworks]

58-18    are permissible fireworks.

58-19          (b)  The following are not permissible fireworks:

58-20                (1)  sky rockets, also known as "bottle rockets":

58-21                      (A)  with a total propellant charge of less than

58-22    four grams;

58-23                      (B)  with a casing size of less than five-eighths

58-24    of an inch for the outside diameter and less than 3 1/2  inches in

58-25    length; and

 59-1                      (C)  with an overall length, including stick, of

 59-2    less than 15 inches; and

 59-3                (2)  other fireworks determined not acceptable by the

 59-4    United States Consumer Product Safety Commission.

 59-5          (c)  The term "bottle rocket" may not be used in association

 59-6    with the advertisement or sale of fireworks.

 59-7          Sec. 3.  LOCAL REGULATION.  This article and rules adopted

 59-8    under this article have uniform force and effect throughout the

 59-9    state.  Any lawfully enacted municipal or county ordinance, order,

59-10    or rule in effect on the effective date of this article is not

59-11    invalidated by this article.  This article does not limit or

59-12    restrict the authority of counties, where specifically authorized

59-13    by statute to do so, or of cities, towns, or villages as defined by

59-14    Title 28, Revised Statutes, to enact ordinances or orders

59-15    prohibiting or further regulating fireworks.

59-16          Sec. 4.  EXCEPTIONS TO APPLICABILITY OF ARTICLE.  This

59-17    article does not apply to:

59-18                (1)  toy pistols, toy canes, toy guns, or other devices

59-19    that use paper or plastic caps in sheets, strips, rolls, or

59-20    individual caps containing not more than an average of 25

59-21    hundredths of a grain of explosive composition per cap

59-22    [manufactured in accordance with 49 C.F.R. Section 173.100(p)

59-23    (1983),] and that are packed and shipped according to 49 C.F.R.

59-24    Part 173 (1996) [department regulations];

59-25                (2)  model rockets and model rocket motors designed,

 60-1    sold, and used for the purpose of propelling recoverable aero

 60-2    models;

 60-3                (3)  propelling or expelling charges consisting of a

 60-4    mixture of sulfur, charcoal, and potassium nitrate;

 60-5                (4)  novelties and trick noisemakers;

 60-6                (5)  the sale, at wholesale, of any type of fireworks

 60-7    by a resident manufacturer, distributor, importer, or jobber if the

 60-8    fireworks are intended for shipment directly out of state in

 60-9    accordance with department regulations;

60-10                (6)  the sale, and use in emergency situations, of

60-11    pyrotechnic signaling devices or distress signals for marine,

60-12    aviation, or highway use;

60-13                (7)  the use of fusee and railway torpedoes by

60-14    railroads;

60-15                (8)  the sale of blank cartridges for use in radio,

60-16    television, film, or theater productions, for signal or ceremonial

60-17    purposes in athletic events, or for industrial purposes; or

60-18                (9)  the use of any pyrotechnic device by military

60-19    organizations.

60-20          Sec. 5.  ADMINISTRATION.  The commissioner [board] shall

60-21    administer this article through the state fire marshal and may

60-22    issue rules for the commissioner's [its] administration in

60-23    accordance with  Section 5B of this article [417.0041, Government

60-24    Code].  The commissioner [board], in promulgating rules, may use

60-25    standards recognized by federal law or regulation, and those

 61-1    published by a nationally recognized standards-making organization.

 61-2    Rules may not be adopted under this article that are more

 61-3    restrictive than the rules in effect on September [January] 1, 1998

 61-4    [1991], without specific statutory authority.

 61-5          [Sec. 5A.  TRANSFER OF POWERS AND DUTIES.  The powers and

 61-6    duties assigned to the State Board of Insurance under this article

 61-7    are transferred to the Texas Commission on Fire Protection.  The

 61-8    commission and the board by rule may make and adopt memoranda of

 61-9    understanding under which the board will exercise certain powers

61-10    and duties under this article if it is more appropriate for the

61-11    board to do so.]

61-12          Sec. 5B.  ADVISORY COUNCIL.  (a)  The commissioner

61-13    [commission] shall establish an advisory council to assist the

61-14    commission in the administration of this article.  The council is

61-15    composed of five members who must be representatives from the

61-16    fireworks industry.  The[, three of whom must be appointed from a

61-17    list submitted to the commission by the] Texas Pyrotechnic

61-18    Association may, on request by the commissioner, recommend

61-19    individuals for appointment to the council.  A council member

61-20    serves at the will of the commissioner [commission].

61-21          (b)  The council shall periodically review rules relating to

61-22    the program and recommend changes in the rules to the commissioner.

61-23    Notwithstanding Section 2001.031, Government Code, the commissioner

61-24    shall submit all proposed changes and additions to the rules that

61-25    relate to administration of this article to the council for

 62-1    development.  If the commissioner does not approve a rule developed

 62-2    by the council, the commissioner shall indicate to the council the

 62-3    reasons that the commissioner did not approve the rule and return

 62-4    the rule to the council for further development [assist the

 62-5    commission in the review and adoption of rules under this article

 62-6    as provided by Section 417.0041, Government Code].

 62-7          Sec. 6.  LICENSES.  (a)  A person engaged in the business of

 62-8    manufacturing, distributing, jobbing, or importing fireworks to be

 62-9    sold or used in this state, or of supervising or conducting public

62-10    fireworks displays, must obtain the appropriate license for that

62-11    activity as provided by this section.

62-12          (b)  A person who manufactures, stores, possesses, and sells

62-13    the fireworks constructed by that person must have a manufacturer's

62-14    license.  The commissioner [board] shall set and collect an annual

62-15    license fee not to exceed $1,000 for a manufacturer's license.  The

62-16    licensed manufacturer may sell Fireworks 1.4G [Class C fireworks]

62-17    only to distributors and jobbers, and may sell Fireworks 1.3G

62-18    [Class B fireworks] only to distributors, [or] licensed pyrotechnic

62-19    operators, or fireworks public display permittees for use in public

62-20    fireworks displays in this state.  A licensed manufacturer may

62-21    manufacture, store, possess, and sell items other than permissible

62-22    fireworks, but only for sale and delivery to authorized persons in

62-23    states in which those other types of fireworks are permissible.

62-24          (c)  A person who imports into this state or who stores,

62-25    possesses, and sells Fireworks 1.3G to pyrotechnic operators, other

 63-1    distributors, single public display permittees, multiple public

 63-2    display permittees, or agricultural, industrial, and wildlife

 63-3    control fireworks permittees, or who imports or stores, possesses,

 63-4    and sells Fireworks 1.4G [Class C fireworks] to jobbers, retailers,

 63-5    and other distributors in this state must have a distributor's

 63-6    license.  The commissioner [board] shall set and collect an annual

 63-7    license fee not to exceed $1,500 for a distributor's license.

 63-8    [Licensed distributors may also possess, store, and sell Class B

 63-9    fireworks in this state.]

63-10          (d)  A person who stores, possesses, and sells Fireworks 1.4G

63-11    only [Class C fireworks] to retailers in this state must have a

63-12    jobber's license.  The commissioner [board] shall set and collect

63-13    an annual license fee not to exceed $1,000 for a jobber's license.

63-14          (e)  [A person who imports and sells to any distributor or

63-15    jobber in this state Class C fireworks or who imports and sells to

63-16    any distributor or pyrotechnic operator in this state Class B

63-17    fireworks for use only in public fireworks displays must have an

63-18    importer's license.  The board shall set and collect an annual

63-19    license fee not to exceed $200 for an importer's license.]

63-20          [(f)]  A person who assembles, conducts, and supervises

63-21    public fireworks displays using Fireworks 1.3G [Class B fireworks]

63-22    must have a pyrotechnic operator's license.  The commissioner

63-23    [board] shall set and collect an annual license fee not to exceed

63-24    $100 for a pyrotechnic operator's license.  To qualify for a

63-25    pyrotechnic operator's license, a person must take and pass an

 64-1    examination, if any should be required, conducted by the

 64-2    commissioner [board] through the state fire marshal's office.  A

 64-3    nonrefundable fee for the initial examination must be in an amount

 64-4    not to exceed $30.  A nonrefundable fee in an amount not to exceed

 64-5    $20 shall be charged for each reexamination.

 64-6          (f) [(g)]  A person who assembles, conducts, and supervises

 64-7    proximate displays using Fireworks 1.3G or Fireworks 1.4G as

 64-8    defined in NFPA 1126 Standard of the Use of Pyrotechnics Before a

 64-9    Proximate Audience must have a pyrotechnic special effects

64-10    operator's license.  The commissioner shall set and collect an

64-11    annual license fee not to exceed $100 for a pyrotechnic special

64-12    effects operator's license.  To qualify for a pyrotechnic special

64-13    effects operator's license, a person must take and pass an

64-14    examination, if any should be required, conducted by the

64-15    commissioner through the state fire marshal's office.  A

64-16    nonrefundable fee for the initial examination must be in an amount

64-17    not to exceed $30.  A nonrefundable fee in an amount not to exceed

64-18    $20 shall be charged for each reexamination [multiple public

64-19    fireworks displays at a single location must have a public display

64-20    license.   The board shall set and collect an annual license fee

64-21    not to exceed $400 for a public display license.  The holder of a

64-22    public display license is not required to obtain a public display

64-23    permit.  This article does not limit the authority of the state

64-24    fire marshal to inspect the location of the display or to require

64-25    appropriate fire protection measures].

 65-1          (g) [(h)]  A fee in an amount not to exceed $20 must be

 65-2    charged for a duplicate license issued by the commissioner [board]

 65-3    and for any requested change to a license.

 65-4          Sec. 7.  RENEWAL.  (a)  A licensee may renew an unexpired

 65-5    license by paying the required renewal fee to the state fire

 65-6    marshal any time before the license expires.  A license that has

 65-7    been expired for not more than 90 days may be renewed by paying to

 65-8    the state fire marshal the required annual fee plus an additional

 65-9    amount of one-half of the original license fee.  A license that has

65-10    been expired for more than 90 days but less than two years may be

65-11    renewed by paying to the state fire marshal all unpaid annual fees

65-12    which are in arrears plus an additional amount equal to the

65-13    original license fee.  A license that has been expired for two

65-14    years or more may not be renewed.  A new license may be obtained by

65-15    complying with the requirements and procedures for obtaining an

65-16    original license.  Not later than the 30th day before the

65-17    expiration date of a license, the state fire marshal shall send

65-18    written notice of the impending license expiration to the licensee

65-19    at the licensee's last known address.  This section does not

65-20    prevent the state fire marshal from denying or refusing to renew a

65-21    license for any reason provided by law or the rules of the

65-22    commissioner [board].

65-23          (b)  The commissioner [board] by rule may provide for

65-24    different expiration dates for the various types of licenses.  If

65-25    the expiration date of a license is less than one year from the

 66-1    date of its issuance or anniversary date, the license fee shall be

 66-2    prorated on the basis of the number of months during which the

 66-3    license is valid.  The total annual fee is payable each time the

 66-4    license is renewed.

 66-5          Sec. 8. RETAIL PERMITS.  (a)  A person who sells fireworks

 66-6    directly to the general public must obtain annually a nonrenewable

 66-7    retail fireworks permit for each retail location.  The commissioner

 66-8    [board] shall set and collect a permit fee not to exceed $20 for a

 66-9    retail fireworks permit.  Permits may be purchased from a licensed

66-10    manufacturer, distributor, or jobber, or through the state fire

66-11    marshal's office.  The holder of a retail fireworks permit may only

66-12    sell fireworks to the general public, and only during periods:

66-13                (1)  beginning June 24 and ending at midnight on July

66-14    4; and

66-15                (2)  beginning December 20 and ending at midnight on

66-16    January 1 of the following year.

66-17          (b)  A retail fireworks permit expires on January 31 each

66-18    year.  A retail fireworks permit is not renewable.

66-19          (c)  Licensed manufacturers, distributors, or jobbers may

66-20    obtain retail fireworks permits at any time during the year.  The

66-21    commissioner [board] shall provide permits for this purpose in

66-22    books containing 20 permits each.  The permit must be clearly

66-23    printed with the year, date, and permit number.  The manufacturer,

66-24    distributor, or jobber shall keep a record of all permits issued

66-25    and shall submit the record to the commissioner [board] through the

 67-1    state fire marshal in the manner prescribed by the commissioner

 67-2    [board].  Outdated permits may only be exchanged for current

 67-3    permits in the year following their expiration.

 67-4          Sec. 9.  PUBLIC DISPLAY PERMITS.  (a)  The commissioner

 67-5    [board] shall set and collect a permit fee not to exceed $50 for a

 67-6    Fireworks 1.3G singular [Class B fireworks] public display permit

 67-7    to be obtained from the commissioner [board] through the state fire

 67-8    marshal.  A singular public fireworks display permit is not

 67-9    renewable and is valid for only one public fireworks display to be

67-10    held during the hours and on the date or alternate date, if

67-11    provided, stated on the permit.

67-12          (b)  A person or an organization who conducts multiple

67-13    fireworks displays at a single location may be issued a multiple

67-14    display permit.  The commissioner shall set and collect an annual

67-15    permit fee not to exceed $400 for a multiple public display permit.

67-16    The holder of a multiple public display permit is not required to

67-17    obtain a singular public display permit.  A multiple public display

67-18    permit is not renewable and is valid for one year from the date of

67-19    issuance.  This article does not limit the authority of the state

67-20    fire marshal to inspect the location of the display or to require

67-21    appropriate fire protection measures.

67-22          (c)  The commissioner shall adopt by reference the provisions

67-23    of NFPA 1123, Code for Fireworks Display, 1995 Edition, as rules

67-24    governing public displays.

67-25          (d)  The commissioner shall adopt by reference the provisions

 68-1    of NFPA 1126, Standards for the Use of Pyrotechnics Before a

 68-2    Proximate Audience, 1996 Edition, as rules governing indoor

 68-3    displays.

 68-4          Sec. 10.  AGRICULTURAL, INDUSTRIAL, AND WILDLIFE CONTROL

 68-5    PERMITS.  The commissioner [board] shall set and collect a permit

 68-6    fee not to exceed $50 for a permit to use Fireworks 1.3G [Class B

 68-7    special fireworks] for agricultural, industrial, or wildlife

 68-8    control purposes.  The applicant must specify the exact purpose for

 68-9    which the fireworks are to be used before a permit may be issued.

68-10    The permit expires one year from the date of issuance and is not

68-11    renewable.

68-12          Sec. 11.  NOT TRANSFERABLE.  A license or permit issued under

68-13    this article is not transferable.

68-14          Sec. 12.  EXAMINATIONS.  The state fire marshal shall, not

68-15    later than the 30th day after the date on which an examination is

68-16    administered under this article, send notice to each examinee of

68-17    the results of the examination.  If the examination is conducted,

68-18    graded, or reviewed by a testing service, the state fire marshal

68-19    shall send notice to the examinee of the result of the examination

68-20    not later than the 14th day after the date on which the state fire

68-21    marshal receives the result from the testing service.  If the

68-22    notice of the examination result will be delayed for more than 90

68-23    days after the examination date, the state fire marshal shall send,

68-24    before the 90th day, a notice informing the examinee of the reason

68-25    for the delay.  The state fire marshal shall, on written request by

 69-1    a person who fails the licensing examination, send the person an

 69-2    analysis of the person's performance on the examination.

 69-3          Sec. 13.  LICENSE BY RECIPROCITY.  The commissioner [board]

 69-4    may waive an examination requirement for an applicant with a valid

 69-5    license from another state if, in the commissioner's [board's]

 69-6    opinion, the license requirements of the other state are

 69-7    substantially equivalent to those of this state.

 69-8          Sec. 14.  PUBLIC DISPLAYS.  (a)  An adult individual or a

 69-9    firm, partnership, corporation, or association planning to make a

69-10    public fireworks display shall submit, under rules adopted by the

69-11    commissioner [board], a written application to the state fire

69-12    marshal for a [license or] permit.

69-13          (b)  It is the duty of the appropriate fire prevention

69-14    officer, as designated or approved by the state fire marshal, to

69-15    make a site investigation to determine whether a proposed fireworks

69-16    display is of a nature or in a location that may be hazardous to

69-17    property or dangerous to any person.  The officer may, in the

69-18    exercise of reasonable discretion, approve or disapprove the

69-19    display site, and may impose reasonable conditions on the display.

69-20    Following the inspection of the proposed display site, the fire

69-21    prevention officer shall notify the state fire marshal of the

69-22    results of the inspection, and the state fire marshal shall

69-23    determine if a permit is to be issued.  In this subsection,

69-24    "appropriate fire prevention officer" means a person with fire

69-25    prevention authority in a particular jurisdiction.

 70-1          Sec. 15.  INSURANCE.  (a)  An applicant for a public display

 70-2    [license or] permit must submit to the state fire marshal evidence

 70-3    of a general liability insurance policy in an amount of not less

 70-4    than $500,000 [$300,000] unless the commissioner [board] increases

 70-5    or decreases the amount under Section 16 of this article.  The

 70-6    policy shall be conditioned to pay those sums the insured becomes

 70-7    obligated to pay as damages because of bodily injury and property

 70-8    damage caused by an occurrence involving the insured or the

 70-9    insured's servant, officer, agent, or employee in the conduct of a

70-10    public fireworks display.

70-11          (b)  Evidence of the liability insurance policy required by

70-12    this section must be in the form of a certificate of insurance

70-13    issued by an insurer authorized to do business in this state and

70-14    countersigned by an insurance agent licensed in this state.  A

70-15    certificate of insurance for surplus lines coverage procured in

70-16    compliance with Article 1.14-2 of this code through a licensed

70-17    Texas surplus lines agent resident in this state may be filed with

70-18    the commissioner [board] as evidence of coverage required by this

70-19    section.  An insurer may not cancel a certificate of insurance

70-20    issued under this section unless the insurer gives the state fire

70-21    marshal notice of intent to cancel as required by the commissioner

70-22    [board].  A multiple public display permit [license] or singular

70-23    public display permit may not be issued without evidence of general

70-24    liability insurance as required by this section.  The requirement

70-25    of this section may be satisfied by a city, county, or other

 71-1    political subdivision presenting proof of its participation in a

 71-2    self-insurance fund or other fund created under The Interlocal

 71-3    Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes)

 71-4    covering the liability requirements under this article.

 71-5          Sec. 16.  POWERS AND DUTIES OF THE COMMISSIONER [BOARD].

 71-6    (a)  The commissioner [board] shall adopt and through the state

 71-7    fire marshal shall administer rules the commissioner [board]

 71-8    considers necessary for the protection, safety, and preservation of

 71-9    life and property, including rules regulating:

71-10                (1)  the issuance of licenses and permits to persons

71-11    engaged in manufacturing, selling, storing, possessing, or

71-12    transporting fireworks in this state;

71-13                (2)  the conduct of public fireworks displays; and

71-14                (3)  the safe storage of Fireworks 1.4G [Class C

71-15    fireworks] and Fireworks 1.3G [Class B fireworks].

71-16          (b)  The commissioner [board] also shall:

71-17                (1)  determine reasonable criteria and qualifications

71-18    for licenses and permits;

71-19                (2)  set license and permit fees within the limits

71-20    provided by this article;

71-21                (3)  determine the qualifications and examination

71-22    requirements for pyrotechnics operators; and

71-23                (4)  establish a procedure for reporting and processing

71-24    complaints.

71-25          (c)  The commissioner [board] may, after notice and

 72-1    opportunity for hearing, increase or decrease the limits of

 72-2    insurance coverage.

 72-3          Sec. 16A.  CERTAIN RULES PROHIBITED.  (a)  The commissioner

 72-4    may not adopt rules restricting competitive bidding or advertising

 72-5    by the holder of a license or permit issued under this article

 72-6    except to prohibit false, misleading, or deceptive practices.

 72-7          (b)  In the commissioner's rules to prohibit false,

 72-8    misleading, or deceptive practices, the commissioner may not

 72-9    include a rule that:

72-10                (1)  restricts the use of any medium of advertising;

72-11                (2)  restricts the use of a license or permit holder's

72-12    personal appearance or voice in an advertisement;

72-13                (3)  relates to the size or duration of an

72-14    advertisement by the license or permit holder; or

72-15                (4)  restricts the license or permit holder's

72-16    advertisement under a trade name.

72-17          Sec. 17.  PROHIBITED ACTS.  (a)  Fireworks within this state

72-18    may not be sold at retail, offered for sale at retail, or possessed

72-19    for retail sale within this state, may not be transported, used, or

72-20    exploded in this state, unless the fireworks conform [are properly

72-21    identified as conforming] to the standards of the United States

72-22    Consumer Product Safety Commission and the [as] United States

72-23    Department of Transportation [common fireworks.  The identification

72-24    must be printed on all shipping cases, fireworks devices, and

72-25    retail containers.  The imprint must be sufficiently conspicuous to

 73-1    be readily recognized by law enforcement authorities and the

 73-2    general public].  A manufacturer may be required to submit samples

 73-3    of all fireworks to the state fire marshal for approval.

 73-4          (b)  A person or organization may not manufacture,

 73-5    distribute, sell at wholesale or retail, or use fireworks in a

 73-6    public fireworks display or for agricultural, industrial, or

 73-7    wildlife control purposes without obtaining the appropriate license

 73-8    or permit.  Fireworks manufactured, distributed, sold, or used in

 73-9    violation of this subsection are illegal fireworks.

73-10          (c)  A person may only offer for sale to the general public

73-11    Fireworks 1.4G [Class C fireworks] at authorized retail locations.

73-12    All mail order sales of Fireworks 1.4G [Class C fireworks] are

73-13    prohibited.

73-14          (d)  Fireworks may not be sold or offered for sale to

73-15    children under 12 years of age or to an intoxicated or incompetent

73-16    person.  A person selling fireworks at retail shall make a

73-17    reasonable effort to ascertain that potential purchasers are of the

73-18    minimum age required by this subsection.

73-19          (e)  A person under 21 years of age may not be issued a

73-20    pyrotechnic operator's license or a public fireworks display

73-21    [license or] permit.  The minimum age for all other licenses and

73-22    permits is 18 years.

73-23          (f)  A person may not:

73-24                (1)  explode or ignite fireworks within 600 feet of any

73-25    church, a hospital other than a veterinary hospital, an asylum, a

 74-1    licensed child care center, or a public or private primary or

 74-2    secondary school or institution of higher education unless they

 74-3    receive authorization in writing from that organization;

 74-4                (2)  sell at retail, explode, or ignite fireworks

 74-5    within 100 feet of a place where flammable liquids or flammable

 74-6    compressed gasses are stored and dispensed;

 74-7                (3)  explode or ignite fireworks within 100 feet of a

 74-8    place where fireworks are stored or sold;

 74-9                (4)  ignite or discharge fireworks within or from a

74-10    motor vehicle;

74-11                (5)  place ignited fireworks in, or throw ignited

74-12    fireworks at, a motor vehicle;

74-13                (6)  conduct a public fireworks display that includes

74-14    Fireworks 1.3G [Class B fireworks] unless the person is a licensed

74-15    pyrotechnic operator;

74-16                (7)  conduct a proximate [an indoor] display of

74-17    fireworks that includes  Fireworks 1.3G or Fireworks 1.4G as

74-18    defined in NFPA 1126 Standards for the Use of Pyrotechnics Before a

74-19    Proximate Audience unless the person is a licensed pyrotechnic

74-20    special effects operator and has [Class C fireworks without] the

74-21    approval of the local fire prevention officer;

74-22                (8)  obtain or attempt to obtain a license or permit by

74-23    fraudulent representation; or

74-24                (9)  sell, store, manufacture, distribute, or display

74-25    fireworks except as provided by this article or rules adopted by

 75-1    the commissioner [board] under this article.

 75-2          (g)  A manufacturer, distributor, jobber, or importer, may

 75-3    not sell fireworks to a person who does not hold a valid license or

 75-4    permit.

 75-5          (h)  A person may not alter or deface a license or permit.

 75-6    An altered or defaced license or permit is void.

 75-7          Sec. 18.  ISSUANCE, SUSPENSION, REVOCATION, AND RENEWAL OF

 75-8    [APPLICATIONS FOR AND HEARINGS ON] LICENSES AND PERMITS.  (a)  The

 75-9    commissioner [board] shall adopt rules for applications and set

75-10    qualifications for licenses and permits.

75-11          (b)  The commissioner [board] may, through the state fire

75-12    marshal, suspend, revoke, or refuse to issue or renew [conduct

75-13    hearings or proceedings concerning the suspension, revocation, or

75-14    refusal to issue or renew] a license or permit.

75-15          (c)  A license or permit may be denied, suspended, or

75-16    revoked, or renewal may be refused, if the commissioner [board],

75-17    through the state fire marshal and after notice and a public

75-18    hearing conducted under Section 18A of this article, finds that any

75-19    provision of this article, or any rule promulgated under this

75-20    article, has been violated.

75-21          (d)  A person or organization that has a license or permit

75-22    revoked may not reapply for the license or permit earlier than one

75-23    year from the date of revocation.  A person reapplying under this

75-24    subsection must request a public hearing on the reissuance of the

75-25    license or permit, and has the burden of proving that a license or

 76-1    permit should be granted.

 76-2          Sec. 18A.  DISCIPLINARY HEARING.  If the state fire marshal

 76-3    proposes to suspend, revoke, or refuse to renew a license or permit

 76-4    of a person, the person is entitled to a hearing conducted by the

 76-5    State Office of Administrative Hearings.  Proceedings for a

 76-6    disciplinary action are governed by the administrative procedure

 76-7    law, Chapter 2001, Government Code.  Rules of practice adopted by

 76-8    the commissioner applicable to the proceedings for a disciplinary

 76-9    action may not conflict with the rules adopted by the State Office

76-10    of Administrative Hearings.

76-11          Sec. 19.  PENALTIES.  (a)  A person commits an offense if the

76-12    person knowingly or intentionally violates Section 17 of this

76-13    article.

76-14          (b)  An offense under this section is a Class B misdemeanor.

76-15          (c)  Each day that a violation occurs or continues

76-16    constitutes a separate offense.

76-17          (d)  Venue under this section is in the county in which the

76-18    offense is committed or in Travis County.

76-19          (e)  If the commissioner [board] determines that a violation

76-20    of this article creates a threat to the public safety, the

76-21    commissioner [board] may bring suit in the district court of the

76-22    county in which the person who committed the offense resides or has

76-23    an office to enjoin the person from engaging in the prohibited

76-24    activity.  The commissioner [board] is not required to give bond as

76-25    a condition to the issuance of injunctive relief.

 77-1          (f)  The state fire marshal, a fire chief, a fire marshal,

 77-2    their deputies, or a police or peace officer may seize illegal

 77-3    fireworks as defined by this article.  Fireworks seized in the

 77-4    enforcement of this article shall be kept in the custody of the

 77-5    seizing agent or the sheriff of the county in which the fireworks

 77-6    were seized.  The owner of the seized fireworks may file an action

 77-7    contesting the seizure in a district court in the county in which

 77-8    the fireworks were seized.  The court may, not later than the 30th

 77-9    day after the hearing on the seizure, authorize the return of part

77-10    or all of the confiscated fireworks.  The court shall order any

77-11    fireworks not returned to be destroyed.  If an action contesting

77-12    the seizure is not filed by the 30th day after the seizure, the

77-13    seizing agent or the sheriff shall destroy the fireworks.

77-14          Sec. 20.  DEPOSIT OF FEES IN TREASURY.  The fees collected

77-15    under this article shall be deposited in the state treasury to the

77-16    credit of the insurance board operating fund and may not be

77-17    appropriated for a purpose other than activities of the State Board

77-18    of Insurance.

77-19          SECTION 4.14.  The following laws are repealed:

77-20                (1)  Section 2A, Article 5.43-1, Insurance Code;

77-21                (2)  Subdivision (3), Section 2, Article 5.43-2,

77-22    Insurance Code;

77-23                (3)  Section 4A, Article 5.43-2, Insurance Code;

77-24                (4)  Subdivision (4), Section 1, Article 5.43-3,

77-25    Insurance Code; and

 78-1                (5)  Section 3A, Article 5.43-3, Insurance Code.

 78-2          SECTION 4.15.  The change in law made by Section 13, Article

 78-3    5.43-1, Insurance Code, Section 10A, Article 5.43-2, Insurance

 78-4    Code, Section 9A, Article 5.43-3, Insurance Code, and Section 18A,

 78-5    Article 5.43-4, Insurance Code, as added by this Act, applies only

 78-6    to a disciplinary proceeding commenced on or after the effective

 78-7    date of this Act.  A disciplinary proceeding commenced before the

 78-8    effective date of this Act is governed by the law in effect

 78-9    immediately before the effective date of this Act, and that law is

78-10    continued in effect for this purpose.

78-11               ARTICLE 5.  DIVISION OF EMERGENCY MANAGEMENT

78-12          SECTION 5.01.  Subchapter E, Chapter 418, Government Code, is

78-13    amended by adding Section 418.110 to read as follows:

78-14          Sec. 418.110.  STATEWIDE MUTUAL AID PROGRAM FOR FIRE

78-15    EMERGENCIES.  The division, in consultation with the Texas

78-16    Commission on Fire Protection, shall develop a statewide mutual aid

78-17    program for fire emergencies.

78-18               ARTICLE 6.  TRANSFER OF FUNCTIONS AND DUTIES

78-19          SECTION 6.01.  (a)  The powers, duties, rights, obligations,

78-20    contracts, records, personnel, property, funds, and unspent

78-21    appropriations of the Texas Commission on Fire Protection with

78-22    respect to the commission's administration of Articles 5.43-1,

78-23    5.43-2, 5.43-3, and 5.43-4, Insurance Code, and the operations of

78-24    the state fire marshal or the Texas Fire Incident Reporting System

78-25    are transferred to the Texas Department of Insurance.

 79-1          (b)  A rule of the Texas Commission on Fire Protection that

 79-2    relates to the commission's administration of Articles 5.43-1,

 79-3    5.43-2,  5.43-3, and 5.43-4, Insurance Code, or the operations of

 79-4    the state fire marshal or the Texas Fire Incident Reporting System

 79-5    continues in effect as a rule of the Commissioner of Insurance

 79-6    until superseded by a rule of the commissioner.

 79-7          (c)  The state fire marshal serving on the effective date of

 79-8    this Act continues to serve unless replaced by the Commissioner of

 79-9    Insurance in accordance with Section 417.002, Government Code, as

79-10    amended by this Act.

79-11          (d)  Notwithstanding any other provision of this section, the

79-12    state fire marshal and the Texas Commission on Fire Protection may

79-13    continue to colocate office space within Travis County on and after

79-14    the effective date of this Act.

79-15          (e)  Not later than January 1, 1998, the Texas Commission on

79-16    Fire Protection and the Commissioner of Insurance shall adopt a

79-17    memorandum of understanding to accomplish an orderly transfer in

79-18    accordance with this section.

79-19          SECTION 6.02.  (a)  Except as provided by Section 419.0091,

79-20    Government Code, as added by this Act, each person employed as an

79-21    attorney for the Texas Commission on Fire Protection, and any

79-22    unspent appropriations relating to the employment of these persons,

79-23    are transferred to the Texas Department of Insurance to provide

79-24    legal assistance relating to programs administered by the state

79-25    fire marshal.

 80-1          (b)  Not later than January 1, 1998, the Texas Commission on

 80-2    Fire Protection and the Commissioner of Insurance shall adopt a

 80-3    memorandum of understanding to accomplish an orderly transfer in

 80-4    accordance with this section.

 80-5                 ARTICLE 7.  EFFECTIVE DATE AND EMERGENCY

 80-6          SECTION 7.01.  This Act takes effect September 1, 1997.

 80-7          SECTION 7.02.  The importance of this legislation and the

 80-8    crowded condition of the calendars in both houses create an

 80-9    emergency and an imperative public necessity that the

80-10    constitutional rule requiring bills to be read on three several

80-11    days in each house be suspended, and this rule is hereby suspended.

                                                                S.B. No. 371

         ________________________________   ________________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 371 passed the Senate on

         May 6, 1997, by a viva-voce vote; May 27, 1997, Senate refused to

         concur in House amendments and requested appointment of Conference

         Committee; May 29, 1997, House granted request of the Senate;

         June 1, 1997, Senate adopted Conference Committee Report by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 371 passed the House, with

         amendments, on May 22, 1997, by a non-record vote; May 29, 1997,

         House granted request of the Senate for appointment of Conference

         Committee; June 1, 1997, House adopted Conference Committee Report

         by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         ________________________________

                      Date

         ________________________________

                    Governor