75R15292 DLF-F                          

         By Armbrister                                          S.B. No. 371

         Substitute the following for S.B. No. 371:

         By Hill                                            C.S.S.B. No. 371

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation and functions of the Texas Commission

 1-3     on Fire Protection.

 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]

1-24     fire department [departments,] and one of whom must be employed by

 2-1     a political subdivision with a population of less than 50,000[, one

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

 2-3     50,000 to 200,000, and one must be employed by a political

 2-4     subdivision with a population of more than 200,000];

 2-5                 (2)  two members to be selected from a list of five

 2-6     names submitted by the Texas State Association of Fire Fighters who

 2-7     are [three] fire protection personnel as defined by Section 419.021

 2-8     with the rank of battalion chief [captain] or below and who are

 2-9     employed in fire departments or other appropriate local authorities

2-10     under the jurisdiction of the commission, [at least one of whom

2-11     must be actively involved in educating the public on fire

2-12     prevention as a significant part of the person's duties, and] one

2-13     of whom must be employed by a political subdivision with a

2-14     population of less than 50,000[, one must be employed by a

2-15     political subdivision with a population of 50,000 to 200,000, and

2-16     one must be employed by a political subdivision with a population

2-17     of more than 200,000];

2-18                 (3)  two members to be selected from a list of five

2-19     names submitted by the State Firemen's and Fire Marshals'

2-20     Association of Texas [three persons] who are volunteer fire chiefs

2-21     or volunteer fire fighters;

2-22                 (4)  one certified fire protection engineer;

2-23                 (5)  one certified arson investigator or certified fire

2-24     protection inspector; [and]

2-25                 (6)  one fire protection instructor from an institution

2-26     of higher education as defined by  Section 61.003, Education Code;

2-27     and

 3-1                 (7)  three public members.

 3-2           (e)  A person is not eligible for appointment as a public

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

 3-4                 (1)  is registered, certified, or licensed by the

 3-5     commission;

 3-6                 (2)  is employed by or participates in the management

 3-7     of a business entity or other organization regulated by the

 3-8     commission or receiving funds from the commission;

 3-9                 (3)  owns or controls, directly or indirectly, more

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

3-11     organization regulated by the commission or receiving funds from

3-12     the commission;

3-13                 (4)  uses or receives a substantial amount of tangible

3-14     goods, services, or funds from the  commission, other than

3-15     compensation or reimbursement authorized by law for commission

3-16     membership, attendance, or expenses; or

3-17                 (5)  is a member of a paid or volunteer fire

3-18     department.

3-19           SECTION 1.03.  Subsection (c), Section 419.005, Government

3-20     Code, is amended to read as follows:

3-21           (c)  If the executive director has knowledge that a potential

3-22     ground for removal exists, the executive director shall notify the

3-23     presiding officer of the commission of the ground.  The presiding

3-24     officer shall then notify the governor and the attorney general

3-25     that a potential ground for removal exists.  If the potential

3-26     ground for removal involves the presiding officer, the executive

3-27     director shall notify the next highest ranking officer of the

 4-1     commission, who shall notify the governor and the attorney general

 4-2     that a potential ground for removal exists.

 4-3           SECTION 1.04.  Subchapter A, Chapter 419, Government Code, is

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

 4-5           Sec. 419.0071.  COMMISSION MEMBER TRAINING.  (a)  To be

 4-6     eligible to take office as a member of the commission, a person

 4-7     appointed to the commission must complete at least one course of a

 4-8     training program that complies with this section.

 4-9           (b)  The training program must provide information to the

4-10     person regarding:

4-11                 (1)  the enabling legislation that created the

4-12     commission;

4-13                 (2)  the programs operated by the commission;

4-14                 (3)  the role and functions of the commission;

4-15                 (4)  the rules of the commission with an emphasis on

4-16     the rules that relate to disciplinary and investigatory authority;

4-17                 (5)  the current budget for the commission;

4-18                 (6)  the results of the most recent formal audit of the

4-19     commission;

4-20                 (7)  the requirements of the:

4-21                       (A)  open meetings law, Chapter 551;

4-22                       (B)  open records law, Chapter 552; and

4-23                       (C)  administrative procedure law, Chapter 2001;

4-24                 (8)  the requirements of the conflict of interests laws

4-25     and other laws relating to public officials; and

4-26                 (9)  any applicable ethics policies adopted by the

4-27     agency or the Texas Ethics Commission.

 5-1           (c)  A person appointed to the commission is entitled to

 5-2     reimbursement for travel expenses incurred in attending the

 5-3     training program, as provided by the General Appropriations Act and

 5-4     as if the person were a member of the commission.

 5-5           SECTION 1.05.  Subchapter A, Chapter 419, Government Code, is

 5-6     amended by adding Section 419.0082 to read as follows:

 5-7           Sec. 419.0082.  RULEMAKING.  (a)  In adopting or amending a

 5-8     rule under Section 419.008(a) or any other law, the commission

 5-9     shall seek the input of the appropriate advisory bodies to the

5-10     commission.  The commission shall permit the appropriate advisory

5-11     body to review and comment on any proposed rule, including a

5-12     proposed amendment to a rule, before the rule is adopted.

5-13           (b)  The commission may not adopt a rule, including an

5-14     amendment to a rule, before the commission meeting held after the

5-15     commission meeting at which the rule is first proposed.

5-16           (c)  This section does not apply to an emergency rule adopted

5-17     under Section 2001.034.

5-18           SECTION 1.06.  Subsections (d), (e), (f), and (g), Section

5-19     419.009, Government Code, are amended to read as follows:

5-20           (d)  The executive director or the executive director's

5-21     designee shall develop an intraagency career ladder program that

5-22     addresses opportunities for mobility and advancement for employees

5-23     within the commission.  The program shall require intraagency

5-24     postings of all [nonentry level] positions concurrently with any

5-25     public posting.

5-26           (e)  The executive director or the executive director's

5-27     designee shall develop a system of annual performance evaluations

 6-1     that are based on documented employee performance.  All merit pay

 6-2     for commission employees must be based on the system established

 6-3     under this subsection.

 6-4           (f)  The executive director or the executive director's

 6-5     designee shall prepare and maintain a written policy statement to

 6-6     assure implementation of a program of equal employment opportunity

 6-7     under which all personnel transactions are made without regard to

 6-8     race, color, disability [handicap], sex, religion, age, or national

 6-9     origin.  The policy statement must include:

6-10                 (1)  personnel policies, including policies relating to

6-11     recruitment, evaluation, selection, appointment, training, and

6-12     promotion of personnel that are in compliance with the requirements

6-13     of Chapter 21, Labor Code;

6-14                 (2)  a comprehensive analysis of the commission work

6-15     force that meets federal and state laws, rules, regulations, and

6-16     instructions directly adopted under those laws, rules, or

6-17     regulations [guidelines];

6-18                 (3)  procedures by which a determination can be made

6-19     about the extent of underuse [of significant underutilization] in

6-20     the commission work force of all persons for whom federal or state

6-21     laws, rules, regulations, and instructions directly adopted under

6-22     those laws, rules, or regulations [guidelines] encourage a more

6-23     equitable balance; and

6-24                 (4)  reasonable methods to appropriately address those

6-25     areas of underuse [significant underutilization].

6-26           (g)  A policy statement prepared under Subsection (f) must

6-27     cover an annual period, be updated [at least] annually and reviewed

 7-1     by the Commission on Human Rights for compliance with Subsection

 7-2     (f)(1), and be filed with the governor's office.

 7-3           SECTION 1.07.  Subchapter A, Chapter 419, Government Code, is

 7-4     amended by adding Section 419.0091 to read as follows:

 7-5           Sec. 419.0091.  GENERAL COUNSEL.  The commission may employ

 7-6     an attorney to serve as general counsel of the commission and not

 7-7     more than two other attorneys to serve under the direction of the

 7-8     general counsel.

 7-9           SECTION 1.08.  Sections 419.010 and 419.011, Government Code,

7-10     are amended to read as follows:

7-11           Sec. 419.010.  FISCAL REPORT.  The commission shall prepare

7-12     [file] annually [with the governor and the presiding officer of

7-13     each house of the legislature] a complete and detailed written

7-14     report accounting for all funds received and disbursed by the

7-15     commission during the preceding fiscal year.  The annual report

7-16     must meet the reporting requirements applicable to financial

7-17     reporting provided in [be in the form and reported in the time

7-18     provided by] the General Appropriations Act.

7-19           Sec. 419.011.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.

7-20     (a)  The commission shall prepare information of public interest

7-21     describing the functions of the commission and the commission's

7-22     procedures by which complaints are filed with and resolved by the

7-23     commission.  The commission shall make the information available to

7-24     the public and appropriate state agencies.

7-25           (b)  The commission shall keep a [an information] file about

7-26     each written complaint filed with the commission that the

7-27     commission has authority to resolve.  The commission shall provide

 8-1     to the person filing the complaint and the persons or entities

 8-2     complained about the commission's policies and procedures

 8-3     pertaining to complaint investigation and resolution.  The [If a

 8-4     written complaint is filed with the commission that the commission

 8-5     has authority to resolve, the] commission, at least quarterly and

 8-6     until final disposition of the complaint, shall notify the person

 8-7     filing the complaint and the persons or entities complained about

 8-8     [parties to the complaint] of the status of the complaint unless

 8-9     the notice would jeopardize an undercover investigation.

8-10           (c)  The commission shall keep information about each

8-11     complaint filed with the commission.  The information shall

8-12     include:

8-13                 (1)  the date the complaint is received;

8-14                 (2)  the name of the complainant;

8-15                 (3)  the subject matter of the complaint;

8-16                 (4)  a record of all persons contacted in relation to

8-17     the complaint;

8-18                 (5)  a summary of the results of the review or

8-19     investigation of the complaint; and

8-20                 (6)  for complaints for which the agency took no

8-21     action, an explanation of the reason the complaint was closed

8-22     without action.

8-23           (d)  The commission shall comply with federal and state laws

8-24     related to program and facility accessibility.  The executive

8-25     director [commission] shall also  prepare and maintain a written

8-26     plan that describes how a person who does not speak English [or who

8-27     has a physical, mental, or developmental disability] can be

 9-1     provided reasonable access to the commission's programs.

 9-2           SECTION 1.09.  Section 419.053, Government Code, is amended

 9-3     to read as follows:

 9-4           Sec. 419.053.  GENERAL POWERS AND DUTIES OF COMMISSION UNDER

 9-5     THIS SUBCHAPTER.  (a)  The commission shall:

 9-6                 (1)  administer the fire department emergency program

 9-7     as provided by this subchapter and commission rules;

 9-8                 (2)  contract with professional experts as necessary to

 9-9     assist the commission in carrying out its powers and duties under

9-10     this subchapter;

9-11                 (3)  adopt rules for the administration of this

9-12     subchapter;

9-13                 (4)  adopt and use a seal;

9-14                 (5)  administer oaths and take testimony on matters

9-15     within the commission's jurisdiction under this subchapter;

9-16                 (6)  keep an accurate record of its meetings, receipts,

9-17     and disbursements;

9-18                 (7)  submit to the presiding officers of each house of

9-19     the legislature an annual report of the commission's activities

9-20     under this subchapter; and

9-21                 (8)  consider and approve or disapprove applications

9-22     for scholarships, grants, loans, and other financial assistance as

9-23     provided by this subchapter.

9-24           (b)  The rules adopted under Subsection (a)(3) must include

9-25     rules establishing criteria to be used in the evaluation of

9-26     applications for grants and loans with the assistance of staff.

9-27           SECTION 1.10.  Subsections (a), (c), and (d), Section

 10-1    419.054, Government Code, are amended to read as follows:

 10-2          (a)  The funds allocation advisory committee is composed of

 10-3    six members.  Three members are appointed by the State Firemen's

 10-4    and Fire Marshals' Association of Texas.  Three members are

 10-5    appointed by the Texas State Association of Fire Fighters.  A

 10-6    committee member serves for a term of one year, but is subject to

 10-7    removal by the commission [at the will of the authority that

 10-8    appointed the member].  A vacancy on the committee caused by

 10-9    removal of a member by the commission shall be filled by the

10-10    authority that appointed the member who was removed.

10-11          (c)  The committee shall assist the commission in matters

10-12    relating to the administration of this subchapter.  The committee

10-13    periodically shall review commission rules relating to the program

10-14    and recommend changes in the rules to the commission.

10-15    [Notwithstanding Chapter 2001.031, the commission shall submit all

10-16    proposed changes and additions to the rules that relate to the

10-17    program to the committee for development.  If the commission does

10-18    not approve a rule developed by the committee, the commission shall

10-19    indicate to the committee the reasons that the commission did not

10-20    approve the rule and return the rule to the committee for further

10-21    development.]

10-22          (d)  The committee shall review and evaluate all applications

10-23    for financial assistance under this subchapter according to the

10-24    rules and procedures adopted by the commission.  The committee

10-25    shall recommend to the commission which applications should be

10-26    approved and which applications should be disapproved.  A complete

10-27    listing of applicants shall be provided to the commission with full

 11-1    disclosure of the reasons for approval or disapproval.  If the

 11-2    commission does not concur with the committee's recommendation, the

 11-3    commission shall indicate to the committee the reasons that the

 11-4    commission did not concur with the recommendation and return the

 11-5    applications regarding which the commission did not concur to the

 11-6    committee for further review and evaluation.

 11-7          SECTION 1.11.  Section 419.063, Government Code, is amended

 11-8    to read as follows:

 11-9          Sec. 419.063. LIMITATION ON SCHOLARSHIPS, GRANTS, LOANS, AND

11-10    OTHER FINANCIAL ASSISTANCE; USE OF APPROPRIATED FUNDS.  (a)  The

11-11    commission may not make awards or loans under this subchapter to

11-12    any one applicant in a total amount that is greater than an amount

11-13    equal to five percent of the total amount of money appropriated to

11-14    the program for the fiscal year during which the award or loan is

11-15    made.

11-16          (b)  The commission may not approve an application if the

11-17    current appropriations for the program are insufficient to pay the

11-18    total amount requested under the application.

11-19          (c)  The commission may not use money appropriated for

11-20    scholarships, grants, loans, and other financial assistance to be

11-21    awarded under this subchapter for the administrative expenses of

11-22    the commission or of the funds allocation advisory committee.

11-23          SECTION 1.12.  Section 419.087, Government Code, is amended

11-24    by adding Subsection (f) to read as follows:

11-25          (f)  A local government which provided fire protection for

11-26    its citizens utilizing a fire department and fire protection

11-27    personnel as of May 31, 1997, may not thereafter provide fire

 12-1    protection by utilizing an organization which is not a local

 12-2    government, a department of local government, or a state or federal

 12-3    agency and which provides fire protection for the local government

 12-4    for profit under a contract or other agreement with the local

 12-5    government without approval of a majority of the voters at an

 12-6    election called for that purpose.

 12-7          SECTION 1.13.  Section 419.901, Government Code, is amended

 12-8    to read as follows:

 12-9          Sec. 419.901.  FIRE SUPPRESSION RATINGS [KEY RATE] SCHEDULE.

12-10    (a)  [The commission shall review the key  rate schedule of the

12-11    State Board of Insurance at least once every four years.  The

12-12    commission shall recommend changes that the commission believes

12-13    should be made in the schedule to the board.]

12-14          [(b)  The commission shall inspect municipalities, using the

12-15    key rate schedule, recommend the key rate to the State Board of

12-16    Insurance for its approval, and report information obtained as a

12-17    result of the inspection to the board.  If the board does not

12-18    approve a rate recommended by the commission, the board shall

12-19    inform the commission of the reason and the commission shall

12-20    recommend another rate.]

12-21          [(c)]  The commission and the Texas Department [State Board]

12-22    of Insurance shall adopt a memorandum of understanding  that

12-23    coordinates their respective duties relating to the department's

12-24    fire suppression ratings [key rate] schedule.

12-25          (b)  The commission may provide technical assistance to paid

12-26    fire departments, volunteer fire departments, and local governments

12-27    responding to the use of the fire suppression rating schedule.

 13-1          SECTION 1.14.  Sections 419.902 and 419.903, Government Code,

 13-2    are amended to read as follows:

 13-3          Sec. 419.902.  COORDINATION WITH FIREMEN'S TRAINING SCHOOL.

 13-4    The commission and the director of the Texas Engineering Extension

 13-5    Service of The Texas A&M University System shall enter into a

 13-6    memorandum of understanding to coordinate the responsibilities of

 13-7    the commission with the training provided by the firemen's training

 13-8    school operated under Section 86.16, Education Code.  [The

 13-9    commission and the director shall review and update the memorandum

13-10    of understanding not later than the last month of each state fiscal

13-11    year.]

13-12          Sec. 419.903.  COORDINATION WITH TEXAS FOREST SERVICE.  The

13-13    commission and the director of the Texas Forest Service shall enter

13-14    into a memorandum of understanding to coordinate the provision of

13-15    training assistance and other assistance to fire-fighting entities.

13-16    [The commission and the director shall review and update the

13-17    memorandum of understanding not later than the last month of each

13-18    state fiscal year.]

13-19          SECTION 1.15.  Section 417.0041, Government Code, is

13-20    repealed.

13-21          SECTION 1.16.  (a)  The changes in law made by this Act in

13-22    the qualifications of, and the prohibitions applying to, members of

13-23    the Texas Commission on Fire Protection do not affect the

13-24    entitlement of a member serving on the commission immediately

13-25    before September 1, 1997, to continue to carry out the functions of

13-26    the commission for the remainder of the member's term.  The changes

13-27    in law apply only to a member appointed on or after September 1,

 14-1    1997.  This Act does not prohibit a person who is a member of the

 14-2    commission on September 1, 1997, from being reappointed to the

 14-3    commission if the person has the qualifications required for a

 14-4    member under Chapter 419, Government Code, as amended by this Act.

 14-5          (b)  The governor shall  make appointments to the commission

 14-6    on or after the effective date of this Act as terms of members of

 14-7    the commission expire and as vacancies in unexpired terms occur on

 14-8    the commission to accomplish, as soon as possible, the membership

 14-9    plan for the commission established by Section 419.004, Government

14-10    Code, as amended by this Act.

14-11                  ARTICLE 2.  CERTIFICATION AND LICENSING

14-12                        FUNCTIONS OF THE COMMISSION

14-13          SECTION 2.01.  Section 419.021, Government Code, is amended

14-14    to read as follows:

14-15          Sec. 419.021.  DEFINITIONS.  [(a)]  In this subchapter:

14-16                (1)  "Aircraft fire fighting and rescue fire protection

14-17    personnel" means permanent, [fully paid,] full-time local

14-18    governmental employees who, as a permanent duty assignment, fight

14-19    aircraft fires at airports, stand by for potential crash landings,

14-20    and perform aircraft crash rescue.

14-21                (2)  "Fire department" means a department of a local

14-22    government that is staffed by [with one or more] permanent, [fully

14-23    paid,] full-time employees of the local government and that is

14-24    organized to prevent or suppress fires.

14-25                (3)  "Fire protection personnel" means:

14-26                      (A)  permanent, [fully paid,] full-time law

14-27    enforcement officers designated as fire and arson investigators by

 15-1    an appropriate local authority;  [or]

 15-2                      (B)  aircraft crash and rescue fire protection

 15-3    personnel; or

 15-4                      (C)  permanent, [fully paid,] full-time fire

 15-5    department employees who are not secretaries, stenographers,

 15-6    clerks, budget analysts, or similar support staff persons or other

 15-7    administrative employees and who are assigned duties in one or more

 15-8    of the following categories:

 15-9                            (i)  fire suppression;

15-10                            (ii)  fire inspection;

15-11                            (iii)  fire and arson investigation;

15-12                            (iv)  marine fire fighting;

15-13                            (v)  aircraft crash fire fighting and

15-14    rescue;

15-15                            (vi)  fire training;

15-16                            (vii)  fire education;

15-17                            (viii)  fire administration; and

15-18                            (ix)  any other position necessarily or

15-19    customarily related to fire prevention and suppression.

15-20                (4)  "Local government" means a municipality, a county,

15-21    a special-purpose district or authority, or any other political

15-22    subdivision of the state.

15-23                (5)  "Marine fire protection personnel" means

15-24    permanent, [fully paid,] full-time local governmental employees who

15-25    work aboard a fireboat and fight fires that occur on or adjacent to

15-26    a waterway, waterfront, channel, or turning basin.

15-27                (6)  "Protective clothing" means garments, including

 16-1    turnout coats, bunker coats, bunker pants, boots, gloves, trousers,

 16-2    helmets, and protective hoods, worn by fire protection personnel in

 16-3    the course of performing fire-fighting operations.

 16-4          [(b)  In this subchapter, an officer or employee of a fire

 16-5    department or other department of a local government is considered

 16-6    fully paid if the officer's or employee's annual compensation for

 16-7    performing one or more duties listed under Subsection (a)(3)(B),

 16-8    including the value of benefits and reimbursement for expenses, is

 16-9    at least equal to the amount of compensation a person would receive

16-10    working 2,080 hours at the federal minimum wage.]

16-11          [(c)  In this subchapter, an officer or employee of a fire

16-12    department or other department of a local government is considered

16-13    a full-time employee if the officer or employee works an average of

16-14    40 or more hours per week or averages approximately 40 or more

16-15    hours per week during a work cycle, as appropriate, performing one

16-16    or more duties listed under Subsection (a)(3)(B).]

16-17          SECTION 2.02.  Subchapter B, Chapter 419, Government Code, is

16-18    amended by adding Section 419.0225 to read as follows:

16-19          Sec. 419.0225.  CERTAIN RULES PROHIBITED.  (a)  The

16-20    commission may not adopt rules restricting competitive bidding or

16-21    advertising by a certificate holder except to prohibit false,

16-22    misleading, or deceptive practices.

16-23          (b)  In its rules to prohibit false, misleading, or deceptive

16-24    practices, the commission may not include a rule that:

16-25                (1)  restricts the use of any medium for advertising;

16-26                (2)  restricts the use of a certificate holder's

16-27    personal appearance or voice in an advertisement;

 17-1                (3)  relates to the size or duration of an

 17-2    advertisement by the certificate holder; or

 17-3                (4)  restricts the certificate holder's advertisement

 17-4    under a trade name.

 17-5          SECTION 2.03.  Section 419.023, Government Code, is amended

 17-6    to read as follows:

 17-7          Sec. 419.023.  FIRE FIGHTER [PROTECTION PERSONNEL] ADVISORY

 17-8    COMMITTEE.  (a)  The commission shall establish a fire fighter

 17-9    [protection personnel] advisory committee to assist the commission

17-10    in matters relating to fire protection personnel, volunteer fire

17-11    fighters, [and] fire departments, and volunteer fire departments.

17-12    The committee shall be composed of nine members appointed by the

17-13    commission.

17-14          (b)  Six members of the committee must be fire protection

17-15    personnel or retired fire protection personnel who collectively

17-16    represent various areas in the field of fire protection.  Three

17-17    members of the committee must be certified instructors of fire

17-18    protection personnel.  At least one member of the committee must be

17-19    a volunteer fire fighter or volunteer fire chief.

17-20          (c)  A committee member serves at the will of the commission.

17-21          (d) [(b)]  The committee shall elect a member of the

17-22    committee as the presiding officer of the committee.  The committee

17-23    shall meet at least twice each calendar year at the call of the

17-24    presiding officer or at the call of the commission.

17-25          (e) [(c)]  The committee periodically shall review commission

17-26    rules relating to fire protection personnel, [and] fire

17-27    departments, and other fire fighters and fire fighting

 18-1    organizations that are subject to regulation under this subchapter

 18-2    and recommend changes in the rules to the commission.

 18-3    [Notwithstanding Chapter 2001.031, the commission shall submit all

 18-4    proposed changes and additions to the rules that relate to fire

 18-5    protection personnel and fire departments to the committee for

 18-6    development.  If the commission does not approve a rule developed

 18-7    by the committee, the commission shall indicate to the committee

 18-8    the reasons that the commission did not approve the rule and return

 18-9    the rule to the committee for further development.]

18-10          SECTION 2.04.  Subchapter B, Chapter 419, Government Code, is

18-11    amended by adding Section 419.0341 to read as follows:

18-12          Sec. 419.0341.  INDIVIDUAL CERTIFICATE HOLDER; CERTIFICATE

18-13    RENEWAL.  (a)  Notwithstanding any other provision of this

18-14    subchapter, fire protection personnel certified under this

18-15    subchapter may continue to hold and renew the certificate without

18-16    regard to whether the person continues to be employed by a local

18-17    authority or fire department.

18-18          (b)  Former fire protection personnel who are no longer

18-19    employed by a local authority or fire department may renew an

18-20    unexpired certificate before the expiration of the certificate by:

18-21                (1)  submitting evidence satisfactory to the commission

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

18-23                (2)  paying to the commission the required renewal fee.

18-24          (c)  If a person's certificate has been expired for 30 days

18-25    or less, the person may renew the certificate by:

18-26                (1)  submitting evidence satisfactory to the commission

18-27    of completion of any required professional education; and

 19-1                (2)  paying to the commission the required renewal fee

 19-2    and a fee that is one-half of the certification fee for the

 19-3    certificate.

 19-4          (d)  If a person's certificate has been expired for longer

 19-5    than 30 days but less than one year, the person may renew the

 19-6    certificate by:

 19-7                (1)  submitting evidence satisfactory to the commission

 19-8    of completion of any required professional education; and

 19-9                (2)  paying to the commission all unpaid renewal fees

19-10    and a fee that is equal to the certification fee.

19-11          (e)  If a person's certificate has been expired for one year

19-12    or longer, the person may not renew the certificate.

19-13          (f)  After receiving notice that a person is no longer

19-14    employed by a local authority or fire department, the commission,

19-15    at least 30 days before the expiration of a person's certificate,

19-16    shall send written notice of the impending certificate expiration

19-17    to the last known address of the person according to the records of

19-18    the commission.

19-19          (g)  The commission shall establish by rule the requirements

19-20    evidence must meet to be considered satisfactory for the purpose of

19-21    complying with this section.

19-22          (h)  Notwithstanding any other law, the commission may by

19-23    rule establish a procedure to recertify a person if:

19-24                (1)  the person's certification has lapsed because of

19-25    the person's good faith clerical error, including the person's

19-26    failure to submit fees in a timely manner; or

19-27                (2)  the person's certification has lapsed as a result

 20-1    of termination of the person's employment and the person has been

 20-2    restored to employment as a result of a disciplinary procedure.

 20-3          SECTION 2.05.  Subchapter B, Chapter 419, Government Code, is

 20-4    amended by adding Section 419.0365 to read as follows:

 20-5          Sec. 419.0365.  DISCIPLINARY HEARING.  If the commission

 20-6    proposes to suspend, revoke, or refuse to renew a person's

 20-7    certificate, the person is entitled to a hearing conducted by the

 20-8    State Office of Administrative Hearings.  Proceedings for a

 20-9    disciplinary action are governed by the administrative procedure

20-10    law, Chapter 2001.  Rules of practice adopted by the commission

20-11    under Section 2001.004 applicable to the proceedings for a

20-12    disciplinary action may not conflict with rules adopted by the

20-13    State Office of Administrative Hearings.

20-14          SECTION 2.06.  Subchapter B, Chapter 419, Government Code, is

20-15    amended by adding Section 419.043 to read as follows:

20-16          Sec. 419.043.  REQUIRED TRAINING IN CERTAIN MUNICIPALITIES.

20-17    A municipality with a population of at least 1,500,000 shall not

20-18    permit or require fire protection personnel to perform fire

20-19    suppression or emergency medical services within the municipality

20-20    unless the fire protection personnel have received state

20-21    certification training by the municipality's fire department in a

20-22    training facility owned and operated by the municipality.

20-23          SECTION 2.07.  Subchapter D, Chapter 419, Government Code, is

20-24    amended to read as follows:

20-25        SUBCHAPTER D.  VOLUNTEER FIRE FIGHTERS AND FIRE DEPARTMENTS

20-26          Sec. 419.071.  VOLUNTARY CERTIFICATION PROGRAM FOR VOLUNTEER

20-27    FIRE FIGHTERS AND FIRE DEPARTMENTS.  (a)  The commission shall

 21-1    develop a voluntary certification program for volunteer fire

 21-2    fighters and volunteer fire departments.  The program must include

 21-3    the same components and requirements as the certification program

 21-4    established under Subchapter B.  The certification program for

 21-5    volunteer fire fighters and volunteer fire departments may take

 21-6    into account the different circumstances of volunteer fire

 21-7    fighters in establishing deadlines for completion of various

 21-8    components or requirements of the program.

 21-9          (b)  A certificate for a given type and level of

21-10    certification that is issued under the certification program

21-11    established under this section is equivalent to a certificate for

21-12    the same type and level issued under Subchapter B.  The certificate

21-13    is subject to the same issuance and renewal requirements as a

21-14    certificate issued under Subchapter B, and a certificate holder may

21-15    be disciplined and regulated in the same manner as provided by

21-16    Subchapter B.  [Components of the program developed by the

21-17    commission shall include voluntary certification of volunteer fire

21-18    fighters, voluntary certification of facilities that train

21-19    volunteer fire fighters, and voluntary inspection and certification

21-20    of protective clothing and self-contained breathing apparatus of

21-21    volunteer fire departments.  A volunteer fire fighter or other

21-22    entity that chooses to become certified under a component of the

21-23    commission's certification program under this subchapter is subject

21-24    to commission rules that relate to that component.]

21-25          [(b)  The commission shall contract with a statewide

21-26    organization whose members include both volunteer and paid fire

21-27    fighters to administer and implement the program.  The commission

 22-1    in the contract shall reserve the right to evaluate the

 22-2    administration and implementation of the program under the contract

 22-3    and the right to observe and to require information from the other

 22-4    party to the contract so that the commission may perform a

 22-5    meaningful evaluation.]

 22-6          (c)  A volunteer fire fighter, volunteer fire department, or

 22-7    facility that provides training to volunteer fire fighters is not

 22-8    required to participate in any component of the commission's

 22-9    program under this chapter.  A volunteer fire fighter, volunteer

22-10    fire department, or facility that provides training to volunteer

22-11    fire fighters may on request participate in one or more components

22-12    of the program under this subchapter as appropriate.  The volunteer

22-13    fire department with which a volunteer fire fighter is affiliated

22-14    may, but is not required to, pay the certificate fee for a

22-15    volunteer fire fighter certified under this subchapter.

22-16          (d)  At least 30 days before the expiration of a volunteer

22-17    fire fighter's certificate, the commission shall send written

22-18    notice of the impending certificate expiration to the last known

22-19    address of the fire fighter according to the records of the

22-20    commission.  [The program shall make available to volunteer fire

22-21    fighters the same level of training that is made available to paid

22-22    fire protection personnel and recruits through the commission's

22-23    basic certification program under Subchapter B, but in a way that

22-24    takes into account the circumstances of volunteer fire fighters.]

22-25          [(e)  The commission by rule may:]

22-26                [(1)  establish qualifications relating to minimum age,

22-27    education, and physical and mental condition required for

 23-1    certification under this subchapter;]

 23-2                [(2)  establish standards relating to training programs

 23-3    and to continuing education under this subchapter;]

 23-4                [(3)  establish the training components required for

 23-5    certification under this subchapter;]

 23-6                [(4)  establish testing procedures for certification

 23-7    candidates and procedures to test the satisfactory completion of

 23-8    training components; and]

 23-9                [(5)  recognize other training for credit towards

23-10    certification under this chapter.]

23-11          [(f)  Qualifications established for persons under this

23-12    section may only be qualifications for certification and may not be

23-13    qualifications for entering a certification program.]

23-14          Sec. 419.072[.  VOLUNTEER FIRE FIGHTER ADVISORY COMMITTEE.

23-15    (a)  The commission shall establish a volunteer fire fighter

23-16    advisory committee to assist the commission in matters relating to

23-17    volunteer fire fighters and volunteer fire departments.  The

23-18    committee shall be composed of nine members appointed by the

23-19    commission.  Six members must be volunteer fire fighters who

23-20    collectively represent various areas in the field of fire

23-21    protection.  Three members must be instructors of volunteer fire

23-22    fighters.  Six of the nine members must be appointed from a list

23-23    submitted each year before September 1 to the commission by the

23-24    State Firemen's and Fire Marshals' Association of Texas.  A

23-25    committee member:]

23-26                [(1)  serves at the will of the commission;]

23-27                [(2)  serves for a one-year term that expires February

 24-1    1; and]

 24-2                [(3)  may be reappointed to the committee after the

 24-3    expiration of a term.]

 24-4          [(b)  The committee shall elect a member of the committee as

 24-5    presiding officer of the committee.  The committee shall meet at

 24-6    least twice each calendar year at the call of the presiding officer

 24-7    or at the call of the commission.]

 24-8          [(c)  The committee shall develop and recommend to the

 24-9    commission for approval the rules of the program under this

24-10    subchapter.  The committee periodically shall review commission

24-11    rules relating to the commission's program under this subchapter

24-12    and recommend changes in the rules to the commission.

24-13    Notwithstanding Chapter 2001.031, the commission shall submit all

24-14    proposed rules and all proposed changes and additions to the rules

24-15    that relate to the program under this subchapter to the committee

24-16    for development.  If the commission does not approve a rule

24-17    developed by the committee, the commission shall indicate to the

24-18    committee the reasons that the commission did not approve the rule

24-19    and return the rule to the committee for further development.]

24-20          [Sec. 419.073.  CERTIFICATION FEE.  The commission shall set

24-21    and collect a fee of not more than $10 for each certificate issued

24-22    under this subchapter designed to recover the commission's costs

24-23    under this subchapter.  The commission may choose to pay the fee

24-24    out of money appropriated for the implementation of Subchapter C.]

24-25          [Sec. 419.074.  RECOGNITION OF CERTAIN PRIOR CERTIFICATIONS.

24-26    (a)  The commission shall, on application, certify a person under

24-27    the commission's program under this subchapter if the person

 25-1    received an advanced certificate from the State Firemen's and Fire

 25-2    Marshals' Association of Texas before September 1, 1993.]

 25-3          [(b)  A volunteer fire fighter who receives an advanced

 25-4    certificate from the State Firemen's and Fire Marshals' Association

 25-5    of Texas after September 1, 1993, shall on application be certified

 25-6    under this subchapter:]

 25-7                [(1)  if the commission determines that the standards

 25-8    under which the volunteer fire fighter received the advanced

 25-9    certificate are at least as stringent as the applicable standards

25-10    in effect for that certificate on January 1, 1993; and]

25-11                [(2)  after the successful completion of an examination

25-12    administered by the commission for the purpose of certification

25-13    under this subchapter.]

25-14          [Sec. 419.075].  OBTAINING PAID EMPLOYMENT AS FIRE FIGHTER

25-15    [BECOMING CERTIFIED UNDER SUBCHAPTER B].  (a)  Notwithstanding

25-16    anything to the contrary in Subchapter B, a fire department may

25-17    appoint as fire protection personnel a [A] volunteer fire fighter

25-18    or former volunteer fire fighter who is certified by the commission

25-19    under this subchapter.  On receiving the appointment from the

25-20    employing fire department, the person is considered to be certified

25-21    fire protection personnel [is eligible to be certified to be fire

25-22    protection personnel under Subchapter B  if the person successfully

25-23    completes the fire protection personnel examination administered

25-24    under Subchapter B on the first or second attempt.  A volunteer

25-25    fire fighter who is certified by the commission under this

25-26    subchapter and who does not successfully complete the fire

25-27    protection personnel examination administered under Subchapter B on

 26-1    the first or second attempt is eligible to be certified to be fire

 26-2    protection personnel under Subchapter B only after completing a

 26-3    commission-approved certification program under Subchapter B and

 26-4    subsequent successful completion of the fire protection personnel

 26-5    examination administered under Subchapter B].

 26-6          (b)  In this section, "fire department" has the meaning

 26-7    assigned by Section 419.021.

 26-8          Sec. 419.073.  INDIVIDUAL CERTIFICATE HOLDER; CERTIFICATE

 26-9    RENEWAL.  (a)  A volunteer fire fighter certified under this

26-10    subchapter may continue to hold and renew the certificate without

26-11    regard to whether the person continues to be affiliated with a

26-12    volunteer fire department.

26-13          (b)  A former volunteer fire fighter who is no longer

26-14    affiliated with a volunteer fire department may renew an unexpired

26-15    certificate before the expiration of the certificate by:

26-16                (1)  submitting evidence satisfactory to the commission

26-17    of completion of any required professional education; and

26-18                (2)  paying to the commission the required renewal fee.

26-19          (c)  If a person's certificate has been expired for 30 days

26-20    or less, the person may renew the certificate by:

26-21                (1)  submitting evidence satisfactory to the commission

26-22    of completion of any required professional education; and

26-23                (2)  paying to the commission the required renewal fee

26-24    and a fee that is one-half of the certification fee for the

26-25    certificate.

26-26          (d)  If a person's certificate has been expired for longer

26-27    than 30 days but less than one year, the person may renew the

 27-1    certificate by:

 27-2                (1)  submitting evidence satisfactory to the commission

 27-3    of completion of any required professional education; and

 27-4                (2)  paying to the commission all unpaid renewal fees

 27-5    and a fee that is equal to the certification fee.

 27-6          (e)  If a person's certificate has been expired for one year

 27-7    or longer, the person may not renew the certificate.

 27-8          (f)  The commission shall establish by rule the requirements

 27-9    evidence must meet to be considered satisfactory for the purpose of

27-10    complying with this section.

27-11          (g)  Notwithstanding any other law, the commission may by

27-12    rule establish a procedure to recertify a person if:

27-13                (1)  the person's certification has lapsed because of

27-14    the person's good faith clerical error, including the person's

27-15    failure to submit fees in a timely manner; or

27-16                (2)  the person's certification has lapsed as a result

27-17    of termination of the person's employment and the person has been

27-18    restored to employment as a result of a disciplinary procedure.

27-19          SECTION 2.08.  Subchapter F, Chapter 411, Government Code, is

27-20    amended by adding Section 411.1236 to read as follows:

27-21          Sec. 411.1236.  ACCESS TO CRIMINAL HISTORY RECORD

27-22    INFORMATION:  TEXAS COMMISSION ON FIRE PROTECTION.  (a)  This

27-23    section applies only to a circumstance in which:

27-24                (1)  the Texas Commission on Fire Protection or the

27-25    state fire marshal:

27-26                      (A)  issues or renews to an individual a license,

27-27    permit, certificate, or other similar authorization; and

 28-1                      (B)  is authorized or required by law to obtain

 28-2    criminal history record information relating to the individual; and

 28-3                (2)  another person, including a state agency or local

 28-4    government:

 28-5                      (A)  is authorized or required to obtain the same

 28-6    information; and

 28-7                      (B)  did obtain that information not earlier than

 28-8    the 90th day before the date on which the individual makes an

 28-9    application to the Texas Commission on Fire Protection or the state

28-10    fire marshal for issuance or renewal of the license, permit,

28-11    certificate, or other similar authorization.

28-12          (b)  In a circumstance described by Subsection (a), the Texas

28-13    Commission on Fire Protection or the state fire marshal shall

28-14    obtain criminal history record information from the person who has

28-15    obtained the required information as described by Subsection

28-16    (a)(2).  On request from the Texas Commission on Fire Protection or

28-17    the state fire marshal under this section, the person shall provide

28-18    the information to the Texas Commission on Fire Protection or the

28-19    state fire marshal.

28-20          (c)  Notwithstanding any other law or rule, the Texas

28-21    Commission on Fire Protection or the state fire marshal may

28-22    disclose to the following persons the fact that issuance or renewal

28-23    of a license, permit, certificate, or similar authorization was

28-24    denied because of criminal history record information:

28-25                (1)  the individual who applied for the license,

28-26    permit, certificate, or similar authorization; and

28-27                (2)  if the individual is requesting certification

 29-1    under Subchapter B or D, Chapter 419, the local authority, fire

 29-2    department, or volunteer fire department for which the fire

 29-3    protection personnel or volunteer fire fighter would provide

 29-4    services.

 29-5          (d)  The Texas Commission on Fire Protection or the state

 29-6    fire marshal may not disclose the content of the criminal history

 29-7    record information under Subsection (c)(2).

 29-8          SECTION 2.09.  The heading of Subchapter B, Chapter 419,

 29-9    Government Code, is amended to read as follows:

29-10         SUBCHAPTER B.  REGULATING AND ASSISTING FIRE FIGHTERS AND

29-11          [FULLY PAID LOCAL FIRE PROTECTION PERSONNEL AND LOCAL]

29-12                             FIRE DEPARTMENTS

29-13          SECTION 2.10.  The fire protection personnel advisory

29-14    committee is abolished.  As soon as possible on or after the

29-15    effective date of this Act, the Texas Commission on Fire Protection

29-16    shall establish and make appointments to the fire fighter advisory

29-17    committee under Section 419.023, Government Code, as amended by

29-18    this Act.

29-19          SECTION 2.11.  The volunteer fire fighter advisory committee

29-20    established under Section 419.072, Government Code, is abolished.

29-21          SECTION 2.12.  The change in law made by Section 419.0365,

29-22    Government Code, as added by this Act, applies only to a

29-23    disciplinary proceeding commenced on or after the effective date of

29-24    this Act.  A disciplinary proceeding commenced before the effective

29-25    date of this Act is governed by the law in effect immediately

29-26    before the effective date of this Act, and that law is continued in

29-27    effect for this purpose.

 30-1                 ARTICLE 3.  CERTAIN REGULATORY FUNCTIONS

 30-2          SECTION 3.01.  Section 3, Article 5.43-1, Insurance Code, is

 30-3    amended by adding Subsection (h) to read as follows:

 30-4          (h)  "Commission" means the Texas Commission on Fire

 30-5    Protection.

 30-6          SECTION 3.02.  Subsection (b), Section 7, Article 5.43-1,

 30-7    Insurance Code, is amended to read as follows:

 30-8          (b)  The commission, through the State Fire Marshal, may

 30-9    suspend, revoke, or refuse to issue or renew a license, apprentice

30-10    permit, hydrostatic testing certificate, certificate of

30-11    registration, or approval of a testing laboratory in accordance

30-12    with Section 13  of this article [State Board of Insurance may

30-13    through the State Fire Marshal conduct hearings or proceedings

30-14    concerning the suspension, revocation, or refusal of the issuance

30-15    or renewal of licenses, apprentice permits, hydrostatic testing

30-16    certificates, certificates of registration, or approvals of testing

30-17    laboratories issued under this article or the application to

30-18    suspend, revoke, refuse to renew, or refuse to issue the same].

30-19          SECTION 3.03.  Article 5.43-1, Insurance Code, is amended by

30-20    adding Section 8A to read as follows:

30-21          Sec. 8A.  CERTAIN RULES PROHIBITED.  (a)  The commission may

30-22    not adopt rules restricting competitive bidding or advertising by

30-23    the holder of a license, permit, certificate, or approval issued

30-24    under this article except to prohibit false, misleading, or

30-25    deceptive practices.

30-26          (b)  In the commission's rules to prohibit false, misleading,

30-27    or deceptive practices, the commission may not include a rule that:

 31-1                (1)  restricts the use of any medium for advertising;

 31-2                (2)  restricts the use of a license, permit,

 31-3    certificate, or approval holder's personal appearance or voice in

 31-4    an advertisement;

 31-5                (3)  relates to the size or duration of an

 31-6    advertisement by the license, permit, certificate, or approval

 31-7    holder; or

 31-8                (4)  restricts the license, permit, certificate, or

 31-9    approval holder's advertisement under a trade name.

31-10          SECTION 3.04.  Section 9, Article 5.43-1, Insurance Code, is

31-11    amended to read as follows:

31-12          Sec. 9.  FIRE EXTINGUISHER ADVISORY COUNCIL [DELEGATION OF

31-13    POWER BY STATE BOARD OF INSURANCE].  (a)  The commission [State

31-14    Board of Insurance] may delegate the exercise of all or part of the

31-15    commission's [its] functions, powers, and duties under this

31-16    article, except for the issuance of licenses, certificates, and

31-17    permits, to a Fire Extinguisher Advisory Council whose members

31-18    shall be appointed by the commission [State Board of Insurance].

31-19    The council shall assist in the review and formulation of rules

31-20    adopted under this article and shall periodically review rules

31-21    implementing this article and recommend changes in the rules to the

31-22    commission [in accordance with Section 417.0041, Government Code].

31-23          (b)  The members of the council shall be experienced and

31-24    knowledgeable in one or more of the following areas:  fire

31-25    services, fire extinguisher manufacturing, fire insurance

31-26    inspection or underwriting, fire extinguisher servicing, or be a

31-27    member of a fire protection association or industrial safety

 32-1    association.

 32-2          SECTION 3.05.  Article 5.43-1, Insurance Code, is amended by

 32-3    adding Section 13 to read as follows:

 32-4          Sec. 13.  DISCIPLINARY HEARING.  If the State Fire Marshal

 32-5    proposes to suspend, revoke, or refuse to renew a license, permit,

 32-6    certificate, or approval issued under this article, the holder of

 32-7    the license, permit, certificate, or approval is entitled to a

 32-8    hearing conducted by the State Office of Administrative Hearings.

 32-9    Proceedings for a disciplinary action are governed by the

32-10    administrative procedure law, Chapter 2001, Government Code.  Rules

32-11    of practice adopted by the commission applicable to the proceedings

32-12    for a disciplinary action may not conflict with rules adopted by

32-13    the State Office of Administrative Hearings.

32-14          SECTION 3.06.  Section 1, Article 5.43-2, Insurance Code, is

32-15    amended to read as follows:

32-16          Sec. 1.  PURPOSE.  The purpose of this article is to regulate

32-17    the planning, certifying, leasing, selling, servicing, installing,

32-18    monitoring, and maintaining of fire detection and fire alarm

32-19    devices and systems and, except as provided by rules adopted under

32-20    Section 6 of this article, to prohibit fire detection and fire

32-21    alarm devices, [and] equipment, and systems not labeled or listed

32-22    by a nationally recognized testing laboratory [approved by the

32-23    State Board of Insurance], in the interest of safeguarding lives

32-24    and property.

32-25          SECTION 3.07.  Section 2, Article 5.43-2, Insurance Code, is

32-26    amended by adding Subdivision (17) to read as follows:

32-27                (17)  "Commission" means the Texas Commission on Fire

 33-1    Protection.

 33-2          SECTION 3.08.  Subsections (a), (b), and (f), Section 5,

 33-3    Article 5.43-2, Insurance Code, are amended to read as follows:

 33-4          (a)  Each person or organization engaged in the business of

 33-5    planning, certifying, leasing, selling, servicing, installing,

 33-6    monitoring, or maintaining fire alarm or fire detection devices or

 33-7    systems shall have a certificate of registration issued by the

 33-8    commission [board].  The initial fee for the certificate of

 33-9    registration must be in an amount not to exceed $500 and the

33-10    renewal fee for each year thereafter must be in an amount not to

33-11    exceed $500.  The renewal fee for a person or organization engaged

33-12    in the business of planning, certifying, leasing, selling,

33-13    servicing, installing, monitoring, or maintaining exclusively

33-14    single station devices shall be an amount not to exceed $250.  A

33-15    registered person or firm shall retain at least one fire alarm

33-16    technician, residential fire alarm superintendent or fire alarm

33-17    planning superintendent as an employee.  A registered person or

33-18    firm that is engaged in the business of planning, certifying,

33-19    leasing, selling, servicing, installing, monitoring, or maintaining

33-20    exclusively single station devices shall have at least one fire

33-21    alarm technician, residential fire alarm superintendent, or fire

33-22    alarm planning superintendent.  A limited certificate of

33-23    registration may be issued to persons or organizations whose

33-24    business is restricted to monitoring.

33-25          (b)  Each separate office location of a registered firm,

33-26    other than the location identified on the certificate of

33-27    registration, shall have a branch office registration certificate

 34-1    issued by the commission [board].  The initial fee for this branch

 34-2    office registration certificate must be in an amount not to exceed

 34-3    $150 and the renewal fee for each year thereafter must be in an

 34-4    amount not to exceed $150.  The commission [board] shall identify

 34-5    each branch office location as a part of a registered organization

 34-6    before a branch office registration certificate may be issued.  A

 34-7    registered person or firm that is engaged in the business of

 34-8    planning, certifying, leasing, selling, servicing, installing,

 34-9    monitoring, or maintaining exclusively single station devices may

34-10    not be required to apply for or obtain a branch office registration

34-11    certificate for a separate office or location of the registered

34-12    firm.

34-13          (f)  A person licensed pursuant to this article shall be an

34-14    employee or agent of an organization that holds a valid certificate

34-15    of registration in order to engage in the activity for which the

34-16    license was granted.

34-17          SECTION 3.09.  Section 5C(a), Article 5.43-2, Insurance Code,

34-18    is amended to read as follows:

34-19          (a)  An unexpired license or registration may be renewed by

34-20    paying the required renewal fee to the board before the expiration

34-21    of the license or registration.  If a license or registration has

34-22    been expired for not longer than 90 days, the license or

34-23    registration may be renewed by paying to the board the required

34-24    renewal fee and a fee that is not to exceed one-fourth of the

34-25    original fee for the license or registration.  If a license or

34-26    registration has been expired for longer than 90 days but less than

34-27    two years, the license or registration may be renewed by paying to

 35-1    the board all unpaid renewal fees and a fee that is not to exceed

 35-2    the original fee for the license or registration.  If a license or

 35-3    registration has been expired for two years or longer, the license

 35-4    or registration may not be renewed.  A new license or registration

 35-5    may be obtained by complying with the requirements and procedures

 35-6    for obtaining an original license or registration.  At least 30

 35-7    days before the expiration of a license or registration, the State

 35-8    Fire Marshal shall send written notice of the impending license or

 35-9    registration expiration to the licensee or registrant at his or its

35-10    last known address.  This section may not be construed to prevent

35-11    the board from denying or refusing to renew a license under

35-12    applicable law or rules of the State Board of Insurance.  A

35-13    licensee with an unexpired license who is not employed by a

35-14    registered firm at the time of the licensee's renewal may renew

35-15    that license; however, the licensee may not engage in any activity

35-16    for which the license was granted until the licensee is employed

35-17    and qualified under a registered firm.

35-18          SECTION 3.10.  Section 5D, Article 5.43-2, Insurance Code, is

35-19    amended to read as follows:

35-20          Sec. 5D.  Examination.  (a)  Each applicant for a license

35-21    must pass a written examination.  Examinations shall be conducted

35-22    by the State Fire Marshal.  Examinations shall cover this article

35-23    and board rules and shall include specific testing of all

35-24    categories of licensure.  Not later than the 30th day after the day

35-25    on which an examination is administered under this article, the

35-26    State Fire Marshal shall send notice to each examinee of the

35-27    results of the examination.  If an examination is conducted,

 36-1    graded, or reviewed by a testing service, the State Fire Marshal

 36-2    shall send notice to the examinees of the results of the

 36-3    examination within two weeks after the date on which the State Fire

 36-4    Marshal receives the results from the testing service.  If the

 36-5    notice of the examination results will be delayed for longer than

 36-6    90 days after the examination date, the State Fire Marshal shall

 36-7    send notice to the examinee of the reason for the delay before the

 36-8    90th day.  If requested in writing by a person who fails the

 36-9    examination administered under this article, the State Fire Marshal

36-10    shall send to the person an analysis of the person's performance on

36-11    the examination.

36-12          (b)  A training school shall make an application for approval

36-13    to the State Fire Marshal.  Applications shall include complete

36-14    course or testing curriculum.  The State Fire Marshal shall review

36-15    the materials for course approval and shall provide a letter of

36-16    course approval or a letter of denial within 60 days.  Denials of

36-17    approval shall be in writing and shall disclose specific reasons

36-18    for the denial.  Denied applicants may reapply at any time.

36-19    Approval for a training school or testing service shall be valid

36-20    for one year, and the initial and renewal fee for a training school

36-21    approval shall not exceed $500.  A registered firm, or an affiliate

36-22    of a registered firm, shall not be approved as a training school.

36-23          (c)  Instructors for training schools shall be approved by

36-24    the State Fire Marshal.  Instructors must have a minimum of three

36-25    years of experience in fire alarm installation, service, or

36-26    monitoring and shall have a valid fire alarm planning

36-27    superintendent license.  An instructor's approval shall be

 37-1    effective for one year, and the initial or renewal fee for approval

 37-2    of an instructor shall not exceed $50.

 37-3          (d)  The training curriculum for a fire alarm technician and

 37-4    a residential fire alarm superintendent course shall consist of 16

 37-5    hours of classroom instruction on all categories of licensure.

 37-6          (e)  Training schools must conduct two or more classes, open

 37-7    to the public, each calendar year from the issuance of

 37-8    registration, within 125 miles of each county in the state that has

 37-9    a population in excess of 500,000 people according to the last

37-10    decennial census.

37-11          SECTION 3.11.  Section 6, Article 5.43-2, Insurance Code, is

37-12    amended to read as follows:

37-13          Sec. 6.  POWERS AND DUTIES OF THE COMMISSION [STATE BOARD OF

37-14    INSURANCE].  (a)  The commission may adopt rules as necessary to

37-15    administer this article.  The rules may establish specialized

37-16    licenses and certificates of registration for organizations or

37-17    persons engaged in the business of planning, certifying, leasing,

37-18    selling, servicing, installing, monitoring, or maintaining fire

37-19    alarm or fire detection devices or systems.  The rules shall

37-20    establish appropriate training and qualification standards for each

37-21    kind of license and certificate of registration [board shall

37-22    delegate authority to exercise all or part of its functions,

37-23    powers, and duties under this article, including the issuance of

37-24    certificates and licenses, to the state fire marshal, and the state

37-25    fire marshal along with assistance of an advisory council to be

37-26    appointed by the board shall implement such rules as may be

37-27    determined by the board in accordance with Section 417.0041,

 38-1    Government Code to be essentially necessary for the protection and

 38-2    preservation of life and property in controlling:]

 38-3                [(1)  the registration of persons and organizations

 38-4    engaging in the business of planning, certifying, leasing, selling,

 38-5    servicing, installing, monitoring, or maintaining fire alarm or

 38-6    fire detection devices or systems; and]

 38-7                [(2)  the requirements for the planning, certifying,

 38-8    leasing, selling, servicing, installing, monitoring, or maintaining

 38-9    of fire alarm or fire detection devices or systems by:]

38-10                      [(A)  conducting examinations and evaluating the

38-11    qualifications of applicants for a certificate of registration to

38-12    engage in the business of planning, certifying, leasing, selling,

38-13    servicing, installing, monitoring, or maintaining fire alarm or

38-14    fire detection devices or systems;]

38-15                      [(B)  conducting examinations and evaluating the

38-16    qualifications of applicants for fire alarm technician, residential

38-17    fire alarm superintendent, or fire alarm planning superintendent

38-18    licenses;]

38-19                      [(C)  evaluating and determining which

38-20    organizations shall be approved as testing laboratories for the

38-21    purpose of this article; and]

38-22                      [(D)  evaluating and approving required training

38-23    programs for all persons who engage in the business of planning,

38-24    certifying, leasing, selling, servicing, installing, monitoring, or

38-25    maintaining fire alarm or fire detection devices or systems].

38-26          (b)  The commission shall also adopt standards applicable to

38-27    any fire alarm device, equipment, or system regulated under this

 39-1    article [board may, after notice and opportunity for hearing,

 39-2    increase or decrease the limits of insurance coverage].

 39-3          (c)  An advisory council appointed in accordance with

 39-4    Subsection (d) of this section shall periodically review rules

 39-5    implementing this article and recommend changes in the rules to the

 39-6    commission.

 39-7          (d)  The advisory council is appointed by the commission and

 39-8    is composed of seven individuals as follows:

 39-9                (1)  three individuals employed by any registered firm

39-10    in the fire protection industry who have a minimum of three years

39-11    experience in the sale, installation, maintenance, or manufacturing

39-12    of fire alarm or fire detection devices;

39-13                (2)  two individuals who must either be experienced in

39-14    the engineering of fire prevention services or be a member of a

39-15    fire protection association;

39-16                (3)  one person experienced and employed by a

39-17    municipality or county as a fire prevention officer; and

39-18                (4)  one person who is employed by any registered firm

39-19    and who has at least three years experience in the operation of a

39-20    central fire alarm monitoring station.

39-21          SECTION 3.12.  Article 5.43-2, Insurance Code, is amended by

39-22    adding Sections 6A and 10A to read as follows:

39-23          Sec. 6A.  CERTAIN RULES PROHIBITED.  (a)  The commission may

39-24    not adopt rules restricting competitive bidding or advertising by

39-25    the holder of a license or registration issued under this article

39-26    except to prohibit false, misleading, or deceptive practices.

39-27          (b)  In the commission's rules to prohibit false, misleading,

 40-1    or deceptive practices, the commission may not include a rule that:

 40-2                (1)  restricts the use of any medium for advertising;

 40-3                (2)  restricts the use of a license or registration

 40-4    holder's personal appearance or voice in an advertisement;

 40-5                (3)  relates to the size or duration of an

 40-6    advertisement by the license or registration holder; or

 40-7                (4)  restricts the license or registration holder's

 40-8    advertisement under a trade name.

 40-9          Sec. 10A.  DISCIPLINARY HEARING.  If the State Fire Marshal

40-10    proposes to suspend, revoke, or refuse to renew a license or

40-11    certificate of registration of a person, the person is entitled to

40-12    a hearing conducted by the State Office of Administrative Hearings.

40-13    Proceedings for a disciplinary action are governed by the

40-14    administrative procedure law, Chapter 2001, Government Code.  Rules

40-15    of practice adopted by the commission applicable to the proceedings

40-16    for a disciplinary action may not conflict with rules adopted by

40-17    the State Office of Administrative Hearings.

40-18          SECTION 3.13.  Section 1, Article 5.43-3, Insurance Code, is

40-19    amended by adding Subdivision (15) to read as follows:

40-20                (15)  "Commission" means the Texas Commission on Fire

40-21    Protection.

40-22          SECTION 3.14.  Section 6, Article 5.43-3, Insurance Code, is

40-23    amended to read as follows:

40-24          Sec. 6.  ADVISORY COUNCIL.  (a)  The Fire Protection Advisory

40-25    Council is created.  The commission [board] shall appoint the

40-26    members of the advisory council, who shall serve at the pleasure of

40-27    the commission [board].

 41-1          (b)  The advisory council, in addition to other duties

 41-2    delegated by the commission [board], shall [in accordance with

 41-3    Section 417.0041, Government Code]:

 41-4                (1)  advise the State Fire Marshal concerning practices

 41-5    in the fire protection sprinkler system industry and the rules

 41-6    necessary to implement and administer this article; and

 41-7                (2)  make recommendations to the State Fire Marshal

 41-8    regarding forms and procedures for certificates of registration and

 41-9    licenses.

41-10          (c)  The advisory council shall have seven members as

41-11    follows:

41-12                (1)  three individuals who have been actively engaged

41-13    in the management of a fire protection sprinkler system business

41-14    for not less than five years preceding their appointment;

41-15                (2)  one representative of the engineering section of

41-16    the board's property division;

41-17                (3)  one volunteer fire fighter [member of the State

41-18    Firemen's and Fire Marshal's Association of Texas]; and

41-19                (4)  one member from each of two fire departments of

41-20    incorporated cities of this state.

41-21          (d)  The advisory council shall periodically review rules

41-22    implementing this article and recommend changes in the rules to the

41-23    commission.

41-24          (e)  The State Firemen's and Fire Marshals' Association of

41-25    Texas may, on request by the commission, recommend a volunteer fire

41-26    fighter for appointment to the advisory council.

41-27          SECTION 3.15.  Article 5.43-3, Insurance Code, is amended by

 42-1    adding Sections 7A and 9A to read as follows:

 42-2          Sec. 7A.  CERTAIN RULES PROHIBITED.  (a)  The commission may

 42-3    not adopt rules restricting competitive bidding or advertising by

 42-4    the holder of a certificate of registration, license, or permit

 42-5    issued under this article except to prohibit false, misleading, or

 42-6    deceptive practices.

 42-7          (b)  In the commission's rules to prohibit false, misleading,

 42-8    or deceptive practices, the commission may not include a rule that:

 42-9                (1)  restricts the use of any medium for advertising;

42-10                (2)  restricts the use of a certificate, license, or

42-11    permit holder's personal appearance or voice in an advertisement;

42-12                (3)  relates to the size or duration of an

42-13    advertisement by the certificate, license, or permit holder; or

42-14                (4)  restricts the certificate, license, or permit

42-15    holder's advertisement under a trade name.

42-16          Sec. 9A.  DISCIPLINARY HEARING.  If the State Fire Marshal

42-17    proposes to suspend, revoke, or refuse to renew a certificate of

42-18    registration, license, or permit of a person, the person is

42-19    entitled to a hearing conducted by the State Office of

42-20    Administrative Hearings.  Proceedings for a disciplinary action are

42-21    governed by the administrative procedure law, Chapter 2001,

42-22    Government Code.  Rules of practice adopted by the commission

42-23    applicable to the proceedings for a disciplinary action may not

42-24    conflict with rules adopted by the State Office of Administrative

42-25    Hearings.

42-26          SECTION 3.16.  Article 5.43-4, Insurance Code, is amended to

42-27    read as follows:

 43-1                        ARTICLE 5.43-4.  FIREWORKS

 43-2          Sec. 1.  Definitions.  In this article:

 43-3                (1)  "Board" means the State Board of Insurance.

 43-4                (2)  "Fireworks 1.3G [Class B fireworks" or "special

 43-5    fireworks]" means a large fireworks device designed primarily to

 43-6    produce visible or audible effects by combustion, deflagration, or

 43-7    detonation and that is classified as a 1.3G [Class B] explosive by

 43-8    the United States Department of Transportation in 49 C.F.R. Part

 43-9    173 (1996).

43-10                (3)  "Fireworks 1.4G [Class C fireworks" or "common

43-11    fireworks]" means a small fireworks device designed primarily to

43-12    produce visible or audible effects by combustion, deflagration, or

43-13    detonation that complies with the construction, labeling, and

43-14    chemical composition requirements of the United States Consumer

43-15    Product Safety Commission in 16 C.F.R. Part 1507 (1996) [(1984)],

43-16    or the most recently adopted version of that rule, [and the

43-17    labeling requirements] of the United States Consumer Product Safety

43-18    Commission, and that is classified [as a Class C explosive] by the

43-19    United States Department of Transportation in 49 C.F.R. Part 173

43-20    (1996).

43-21                (4)  "Department" means the United States Department of

43-22    Transportation.

43-23                (5)  "Distributor" means a person or entity that

43-24    imports fireworks into this state or sells fireworks to jobbers,

43-25    retailers, or other distributors for resale to others, or to public

43-26    display permittees or multiple public display permittees or other

43-27    firework permittees.

 44-1                (6)  "Fireworks" means any composition or device

 44-2    designed for entertainment to produce a visible or audible effect

 44-3    by combustion, explosion, deflagration, or detonation, and that is

 44-4    defined in 49 C.F.R. Section 173.56(j) (1996) [as "special

 44-5    fireworks" by 49 C.F.R. Section 173.88(d) (1983), or as "common

 44-6    fireworks" by 49 C.F.R. Section 173.100(r) (1983)].

 44-7                (7)  "Fire prevention officer" means the chief of a

 44-8    fire department, a fire marshal, the county fire marshal, the

 44-9    sheriff, a constable, any other local enforcement officer primarily

44-10    responsible for fire prevention, or, if there is no local fire

44-11    authority, the state fire marshal.

44-12                (8)  "Illegal fireworks" means a fireworks device

44-13    manufactured, distributed, or sold in violation of this article.

44-14                (9)  "Indoor or Proximate Display" means a pyrotechnic

44-15    display involving the ignition of Fireworks 1.3G or 1.4G for public

44-16    amusement where audiences are closer to pyrotechnic devices than

44-17    permitted by NFPA 1123 Code of Fireworks Display.  This term does

44-18    not include the use of Fireworks 1.4G by a retail consumer for

44-19    private or personal amusement ["Importer" means a person who

44-20    imports fireworks from a foreign country or from another state for

44-21    sale to distributors or jobbers in this state].

44-22                (10)  "Jobber" means a person who purchases fireworks

44-23    for resale to retailers only.

44-24                (11)  "Manufacturer" means a person, firm, corporation,

44-25    or association that engages in the making of fireworks.

44-26                (12)  "Person" means an individual or entity, including

44-27    an owner, manager, officer, employee, or occupant.

 45-1                (13)  "Public display" means the igniting of Fireworks

 45-2    1.3G [Class B fireworks] for public or private amusement.

 45-3                (14)  "Pyrotechnic operator" means an individual who,

 45-4    by experience, training, and passing any required examination, has

 45-5    demonstrated the necessary skill and ability for safely assembling,

 45-6    discharging, and supervising proximate [public] displays of

 45-7    Fireworks 1.3G or Fireworks 1.4G [Class B fireworks].

 45-8                (15)  "Retailer" means a person who purchases fireworks

 45-9    for resale to the general public only.

45-10                (16)  "Sale" means the sale or offering for sale any

45-11    merchandise, equipment, or service, at wholesale or retail, to the

45-12    public or to any person, for an agreed sum of money or other

45-13    consideration.

45-14                (17)  "State fire marshal" means the chief law

45-15    enforcement officer of the state charged with the responsibility of

45-16    fire prevention.

45-17                (18)  "Insurance agent" means:

45-18                      (A)  a person, firm, or corporation licensed

45-19    under Article 21.14 or 1.14-2 of this code;

45-20                      (B)  a salaried, state, or special agent; and

45-21                      (C)  a person authorized to represent an

45-22    insurance fund or pool created by a city, county, or other

45-23    political subdivision of the state under The Interlocal Cooperation

45-24    Act (Article 4413(32c), Vernon's Texas Civil Statutes).

45-25                (19)  "Pyrotechnic special effects operator" means an

45-26    individual who, by experience, training, and passing any required

45-27    examination, has demonstrated the necessary skill and ability for

 46-1    safely assembling, discharging, and supervising proximate displays

 46-2    of Fireworks 1.3G or Fireworks 1.4G.

 46-3                (20)  "Commission" means the Texas Commission on Fire

 46-4    Protection.

 46-5          Sec. 2.  Permissible Fireworks.  (a)  Except as provided by

 46-6    Subsection (b) of this section, Fireworks 1.4G [Class C fireworks]

 46-7    are permissible fireworks.

 46-8          (b)  The following are not permissible fireworks:

 46-9                (1)  sky rockets, also known as "bottle rockets":

46-10                      (A)  with a total propellant charge of less than

46-11    four grams;

46-12                      (B)  with a casing size of less than five-eighths

46-13    of an inch for the outside diameter and less than 3 1/2  inches in

46-14    length; and

46-15                      (C)  with an overall length, including stick, of

46-16    less than 15 inches; and

46-17                (2)  other fireworks determined not acceptable by the

46-18    United States Consumer Product Safety Commission.

46-19          (c)  The term "bottle rocket" may not be used in association

46-20    with the advertisement or sale of fireworks.

46-21          Sec. 3.  LOCAL REGULATION.  This article and rules adopted

46-22    under this article have uniform force and effect throughout the

46-23    state.  Any lawfully enacted municipal or county ordinance, order,

46-24    or rule in effect on the effective date of this article is not

46-25    invalidated by this article.  This article does not limit or

46-26    restrict the authority of counties, where specifically authorized

46-27    by statute to do so, or of cities, towns, or villages as defined by

 47-1    Title 28, Revised Statutes, to enact ordinances or orders

 47-2    prohibiting or further regulating fireworks.

 47-3          Sec. 4.  EXCEPTIONS TO APPLICABILITY OF ARTICLE.  This

 47-4    article does not apply to:

 47-5                (1)  toy pistols, toy canes, toy guns, or other devices

 47-6    that use paper or plastic caps in sheets, strips, rolls, or

 47-7    individual caps containing not more than an average of 25

 47-8    hundredths of a grain of explosive composition per cap

 47-9    [manufactured in accordance with 49 C.F.R. Section 173.100(p)

47-10    (1983),] and that are packed and shipped according to 49 C.F.R.

47-11    Part 173 (1996) [department regulations];

47-12                (2)  model rockets and model rocket motors designed,

47-13    sold, and used for the purpose of propelling recoverable aero

47-14    models;

47-15                (3)  propelling or expelling charges consisting of a

47-16    mixture of sulfur, charcoal, and potassium nitrate;

47-17                (4)  novelties and trick noisemakers;

47-18                (5)  the sale, at wholesale, of any type of fireworks

47-19    by a resident manufacturer, distributor, importer, or jobber if the

47-20    fireworks are intended for shipment directly out of state in

47-21    accordance with department regulations;

47-22                (6)  the sale, and use in emergency situations, of

47-23    pyrotechnic signaling devices or distress signals for marine,

47-24    aviation, or highway use;

47-25                (7)  the use of fusee and railway torpedoes by

47-26    railroads;

47-27                (8)  the sale of blank cartridges for use in radio,

 48-1    television, film, or theater productions, for signal or ceremonial

 48-2    purposes in athletic events, or for industrial purposes; or

 48-3                (9)  the use of any pyrotechnic device by military

 48-4    organizations.

 48-5          Sec. 5.  ADMINISTRATION.  The commission [board] shall

 48-6    administer this article through the state fire marshal and may

 48-7    issue rules for the  commission's [its] administration in

 48-8    accordance with  Section 5B of this article [417.0041, Government

 48-9    Code].  The commission  [board], in promulgating rules, may use

48-10    standards recognized by federal law or regulation, and those

48-11    published by a nationally recognized standards-making organization.

48-12    Rules may not be adopted under this article that are more

48-13    restrictive than the rules in effect on September [January] 1, 1998

48-14    [1991], without specific statutory  authority.

48-15          Sec. 5A.  TRANSFER OF POWERS AND DUTIES.  The powers and

48-16    duties assigned to the State Board of Insurance under this article

48-17    are transferred to the Texas Commission on Fire Protection.  The

48-18    commission and the board by rule may make and adopt memoranda of

48-19    understanding under which the board will exercise certain powers

48-20    and duties under this article if it is more appropriate for the

48-21    board to do so.

48-22          Sec. 5B.  ADVISORY COUNCIL.  (a)  The commission shall

48-23    establish an advisory council to assist the commission in the

48-24    administration of this  article.  The council is composed of five

48-25    members who must be representatives from the fireworks industry,

48-26    three of whom must be appointed from a list submitted to the

48-27    commission by the Texas Pyrotechnic Association.  A council member

 49-1    serves at the will of the commission.  The council shall assist the

 49-2    commission in the review and adoption of rules under this article

 49-3    as provided by Subsection (b) of this section [Section 417.0041,

 49-4    Government Code].

 49-5          (b)  The advisory council shall periodically review rules

 49-6    relating to the program and recommend changes in the rules to the

 49-7    commission.  Notwithstanding Section 2001.031, Government Code, the

 49-8    commission shall submit all proposed changes and additions to the

 49-9    rules that relate to the administration of this article to the

49-10    council for development.  If the commission does not approve a rule

49-11    developed by the council, the commission shall indicate to the

49-12    council the reasons that the commission did not approve the rule

49-13    and return the rule to the council for further development.

49-14          Sec. 6.  LICENSES.  (a)  A person engaged in the business of

49-15    manufacturing, distributing, jobbing, or importing fireworks to be

49-16    sold or used in this state, or of supervising or conducting public

49-17    fireworks displays, must obtain the appropriate license for that

49-18    activity as provided by this section.

49-19          (b)  A person who manufactures, stores, possesses, and sells

49-20    the fireworks constructed by that person must have a manufacturer's

49-21    license.  The commission [board] shall set and collect an annual

49-22    license fee not to exceed $1,000 for a manufacturer's license.  The

49-23    licensed manufacturer may sell Fireworks 1.4G [Class C fireworks]

49-24    only to distributors and jobbers, and may sell Fireworks 1.3G

49-25    [Class B fireworks] only to  distributors, [or] licensed

49-26    pyrotechnic operators, or fireworks public display permittees for

49-27    use in public fireworks displays in this  state.  A licensed

 50-1    manufacturer may manufacture, store, possess, and sell items other

 50-2    than permissible fireworks, but only for sale and delivery to

 50-3    authorized persons in states in which those other types of

 50-4    fireworks are permissible.

 50-5          (c)  A person who imports into this state or who stores,

 50-6    possesses, and sells Fireworks 1.3G to pyrotechnic operators, other

 50-7    distributors, single public display permittees, multiple public

 50-8    display permittees, or agricultural, industrial, and wildlife

 50-9    control fireworks permittees, or who imports or stores, possesses,

50-10    and sells Fireworks 1.4G [Class C fireworks] to jobbers, retailers,

50-11    and other distributors in this state must have a  distributor's

50-12    license.  The commission [board] shall set and collect an annual

50-13    license fee not to exceed $1,500 for a distributor's license.

50-14    [Licensed distributors may also possess, store, and sell Class B

50-15    fireworks in this state.]

50-16          (d)  A person who stores, possesses, and sells Fireworks 1.4G

50-17    only [Class C fireworks] to retailers in this state must have a

50-18    jobber's license.  The commission [board] shall set and collect an

50-19    annual license fee not to exceed $1,000 for a jobber's license.

50-20          (e)  [A person who imports and sells to any distributor or

50-21    jobber in this state Class C fireworks or who imports and sells to

50-22    any distributor or pyrotechnic operator in this state Class B

50-23    fireworks for use only in public fireworks displays must have an

50-24    importer's license.  The board shall set and collect an annual

50-25    license fee not to exceed $200 for an importer's license.]

50-26          [(f)]  A person who assembles, conducts, and supervises

50-27    public fireworks displays using Fireworks 1.3G [Class B fireworks]

 51-1    must have a pyrotechnic operator's license.  The commission [board]

 51-2    shall set and collect an annual license fee not to  exceed $100 for

 51-3    a pyrotechnic operator's license.  To qualify for a pyrotechnic

 51-4    operator's license, a person must take and pass an examination, if

 51-5    any should be required, conducted by the commission [board] through

 51-6    the state fire marshal's office.  A nonrefundable fee for the

 51-7    initial examination must be in an amount not to exceed $30.  A

 51-8    nonrefundable fee in an amount not to exceed $20 shall be charged

 51-9    for each reexamination.

51-10          (f) [(g)]  A person who assembles, conducts, and supervises

51-11    proximate displays using Fireworks 1.3G or Fireworks 1.4G as

51-12    defined in NFPA 1126 Standard of the Use of Pyrotechnics Before a

51-13    Proximate Audience must have a pyrotechnic special effects

51-14    operator's license. The commission shall set and collect an annual

51-15    license fee not to exceed $100 for a pyrotechnic special effects

51-16    operator's license. To qualify for a pyrotechnic special effects

51-17    operator's license, a person must take and pass an examination, if

51-18    any should be required, conducted by the commission through the

51-19    state fire marshal's office. A nonrefundable fee for the initial

51-20    examination must be in an amount not to exceed $30. A nonrefundable

51-21    fee in an amount not to exceed $20 shall be charged for each

51-22    reexamination [multiple public fireworks displays at a single

51-23    location must have a public display license.    The board shall set

51-24    and collect an annual license fee not to exceed $400 for a public

51-25    display license.  The holder of a public display license is not

51-26    required to obtain a public display permit.  This article does not

51-27    limit the authority of the state fire marshal to inspect the

 52-1    location of the display or to require appropriate fire protection

 52-2    measures].

 52-3          (g) [(h)]  A fee in an amount not to exceed $20 must be

 52-4    charged for a duplicate license issued by the commission [board]

 52-5    and for any requested change to a license.

 52-6          Sec. 7.  RENEWAL.  (a)  A licensee may renew an unexpired

 52-7    license by paying the required renewal fee to the state fire

 52-8    marshal any time before the license expires.  A license that has

 52-9    been expired for not more than 90 days may be renewed by paying to

52-10    the state fire marshal the required annual fee plus an additional

52-11    amount of one-half of the original license fee.  A license that has

52-12    been expired for more than 90 days but less than two years may be

52-13    renewed by paying to the state fire marshal all unpaid annual fees

52-14    which are in arrears plus an additional amount equal to the

52-15    original license fee.  A license that has been expired for two

52-16    years or more may not be renewed.  A new license may be obtained by

52-17    complying with the requirements and procedures for obtaining an

52-18    original license.  Not later than the 30th day before the

52-19    expiration date of a license, the state fire marshal shall send

52-20    written notice of the impending license expiration to the licensee

52-21    at the licensee's last known address.  This section does not

52-22    prevent the state fire marshal from denying or refusing to renew a

52-23    license for any reason provided by law or the rules of the board.

52-24          (b)  The commission [board] by rule may provide for different

52-25    expiration dates for the various types of licenses.  If the

52-26    expiration date of a license is less  than one year from the date

52-27    of its issuance or anniversary date, the license fee shall be

 53-1    prorated on the basis of the number of months during which the

 53-2    license is valid.  The total annual fee is payable each time the

 53-3    license is renewed.

 53-4          Sec. 8. RETAIL PERMITS.  (a)  A person who sells fireworks

 53-5    directly to the general public must obtain annually a nonrenewable

 53-6    retail fireworks permit for each retail location.  The commission

 53-7    [board] shall set and collect a permit fee not to exceed $20 for a

 53-8    retail fireworks permit.  Permits may be purchased from a licensed

 53-9    manufacturer, distributor, or jobber, or through the state fire

53-10    marshal's office.  The holder of a retail fireworks permit may only

53-11    sell fireworks to the general public, and only during periods:

53-12                (1)  beginning June 24 and ending at midnight on July

53-13    4;  and

53-14                (2)  beginning December 20 and ending at midnight on

53-15    January 1 of the following year.

53-16          (b)  A retail fireworks permit expires on January 31 each

53-17    year.  A retail fireworks permit is not renewable.

53-18          (c)  Licensed manufacturers, distributors, or jobbers may

53-19    obtain retail fireworks permits at any time during the year.  The

53-20    commission [board] shall provide permits for this purpose in books

53-21    containing 20 permits each.  The permit must be clearly printed

53-22    with the year, date, and permit number.  The manufacturer,

53-23    distributor, or jobber shall keep a record of all permits issued

53-24    and shall submit the record to the board through the state fire

53-25    marshal in the manner prescribed by the commission [board].

53-26    Outdated permits may only be exchanged for current permits in the

53-27    year following their expiration.

 54-1          Sec. 9.  PUBLIC DISPLAY PERMITS.  (a)  The commission [board]

 54-2    shall set and collect a permit fee not to exceed $50 for a

 54-3    Fireworks 1.3G singular [Class B  fireworks] public display permit

 54-4    to be obtained from the commission [board] through the state fire

 54-5    marshal.  A singular public fireworks  display permit is not

 54-6    renewable and is valid for only one public fireworks display to be

 54-7    held during the hours and on the date or alternate date, if

 54-8    provided, stated on the permit.

 54-9          (b)  A person or an organization who conducts multiple

54-10    fireworks displays at a single location may be issued a multiple

54-11    display permit.   The commission shall set and collect an annual

54-12    permit fee not to exceed $400 for a multiple public display permit.

54-13    The holder of a multiple public display permit is not required to

54-14    obtain a singular public display permit. A multiple public display

54-15    permit is not renewable and is valid for one year from the date of

54-16    issuance. This article does not limit the authority of the state

54-17    fire marshal to inspect the location of the display or to require

54-18    appropriate fire protection measures.

54-19          (c)  The commission shall adopt by reference the provisions

54-20    of NFPA 1123, Code for Fireworks Display, 1995 Edition, as rules

54-21    governing public displays.

54-22          (d)  The commission shall adopt by reference the provisions

54-23    of NFPA 1126, Standards for the Use of Pyrotechnics Before a

54-24    Proximate Audience, 1996 Edition, as rules governing indoor

54-25    displays.

54-26          Sec. 10.  AGRICULTURAL, INDUSTRIAL, AND WILDLIFE CONTROL

54-27    PERMITS.  The commission [board] shall set and collect a permit fee

 55-1    not to exceed $50 for a permit to use Fireworks 1.3G [Class B

 55-2    special fireworks] for agricultural,  industrial, or wildlife

 55-3    control purposes.  The applicant must specify the exact purpose for

 55-4    which the fireworks are to be used before a permit may be issued.

 55-5    The permit expires one year from the date of issuance and is not

 55-6    renewable.

 55-7          Sec. 11.  NOT TRANSFERABLE.  A license or permit issued under

 55-8    this article is not transferable.

 55-9          Sec. 12.  EXAMINATIONS.  The state fire marshal shall, not

55-10    later than the 30th day after the date on which an examination is

55-11    administered under this article, send notice to each examinee of

55-12    the results of the examination.  If the examination is conducted,

55-13    graded, or reviewed by a testing service, the state fire marshal

55-14    shall send notice to the examinee of the result of the examination

55-15    not later than the 14th day after the date on which the state fire

55-16    marshal receives the result from the testing service.  If the

55-17    notice of the examination result will be delayed for more than 90

55-18    days after the examination date, the state fire marshal shall send,

55-19    before the 90th day, a notice informing the examinee of the reason

55-20    for the delay.  The state fire marshal shall, on written request by

55-21    a person who fails the licensing examination, send the person an

55-22    analysis of the person's performance on the examination.

55-23          Sec. 13.  LICENSE BY RECIPROCITY.  The commission [board] may

55-24    waive an examination requirement for an applicant with a valid

55-25    license from another state if, in the commission's [board's]

55-26    opinion, the license requirements of the other state are

55-27    substantially equivalent to those of this state.

 56-1          Sec. 14.  PUBLIC DISPLAYS.  (a)  An adult individual or a

 56-2    firm, partnership, corporation, or association planning to make a

 56-3    public fireworks display shall submit, under rules adopted by the

 56-4    commission [board], a written application to the state fire marshal

 56-5    for a [license or] permit.

 56-6          (b)  It is the duty of the appropriate fire prevention

 56-7    officer, as designated or approved by the state fire marshal, to

 56-8    make a site investigation to determine whether a proposed fireworks

 56-9    display is of a nature or in a location that may be hazardous to

56-10    property or dangerous to any person.  The officer may, in the

56-11    exercise of reasonable discretion, approve or disapprove the

56-12    display site, and may impose reasonable conditions on the display.

56-13    Following the inspection of the proposed display site, the fire

56-14    prevention officer shall notify the state fire marshal of the

56-15    results of the inspection, and the state fire marshal shall

56-16    determine if a permit is to be issued.  In this subsection,

56-17    "appropriate fire prevention officer"  means a person with fire

56-18    prevention authority in a particular jurisdiction.

56-19          Sec. 15.  INSURANCE.  (a)  An applicant for a public display

56-20    [license or] permit must submit to the state fire marshal evidence

56-21    of a general liability insurance policy in an amount of not less

56-22    than $500,000 [$300,000] unless the commission [board] increases or

56-23    decreases the amount under Section 16 of this article.  The policy

56-24    shall be  conditioned to pay those sums the insured becomes

56-25    obligated to pay as damages because of bodily injury and property

56-26    damage caused by an occurrence involving the insured or the

56-27    insured's servant, officer, agent, or employee in the conduct of a

 57-1    public fireworks display.

 57-2          (b)  Evidence of the liability insurance policy required by

 57-3    this section must be in the form of a certificate of insurance

 57-4    issued by an insurer authorized to do business in this state and

 57-5    countersigned by an insurance agent licensed in this state.  A

 57-6    certificate of insurance for surplus lines coverage procured in

 57-7    compliance with Article 1.14-2 of this code through a licensed

 57-8    Texas surplus lines agent resident in this state may be filed with

 57-9    the commission [board] as evidence of coverage required by this

57-10    section.  An insurer may not cancel a certificate of insurance

57-11    issued under this section unless the insurer gives the state fire

57-12    marshal notice of intent to cancel as required by the commission

57-13    [board]. A multiple public display permit [license] or singular

57-14    public display permit may not be issued without evidence of general

57-15    liability insurance as required by this section. The requirement of

57-16    this section may be satisfied by a city, county, or other political

57-17    subdivision presenting proof of its participation in a

57-18    self-insurance fund or other fund created under The Interlocal

57-19    Cooperation Act (Article 4413(32c), Vernon's Texas Civil

57-20    Statutes)  covering the liability requirements under this article.

57-21          Sec. 16.  POWERS AND DUTIES OF THE COMMISSION [BOARD].

57-22    (a)  The commission [board] shall adopt and through the state fire

57-23    marshal shall administer rules the commission [board] considers

57-24    necessary for the protection, safety, and preservation of life and

57-25    property, including rules regulating:

57-26                (1)  the issuance of licenses and permits to persons

57-27    engaged in manufacturing, selling, storing, possessing, or

 58-1    transporting fireworks in this state;

 58-2                (2)  the conduct of public fireworks displays;  and

 58-3                (3)  the safe storage of Fireworks 1.4G [Class C

 58-4    fireworks] and Fireworks 1.3G [Class B fireworks].

 58-5          (b)  The commission [board] also shall:

 58-6                (1)  determine reasonable criteria and qualifications

 58-7    for licenses and permits;

 58-8                (2)  set license and permit fees within the limits

 58-9    provided by this article;

58-10                (3)  determine the qualifications and examination

58-11    requirements for pyrotechnics operators; and

58-12                (4)  establish a procedure for reporting and processing

58-13    complaints.

58-14          (c)  The commission [board] may, after notice and opportunity

58-15    for hearing, increase or decrease the limits of insurance coverage.

58-16          Sec. 16A.  CERTAIN RULES PROHIBITED.  (a)  The commission may

58-17    not adopt rules restricting competitive bidding or advertising by

58-18    the holder of a  license or permit issued under this article except

58-19    to prohibit false, misleading, or deceptive practices.

58-20          (b)  In the commission's rules to prohibit false, misleading,

58-21    or deceptive practices, the commission may not include a rule that:

58-22                (1)  restricts the use of any medium of advertising;

58-23                (2)  restricts the use of a license or permit holder's

58-24    personal appearance or voice in an advertisement;

58-25                (3)  relates to the size or duration of an

58-26    advertisement by the license or permit holder; or

58-27                (4)  restricts the license or permit holder's

 59-1    advertisement under a trade name.

 59-2          Sec. 17.  PROHIBITED ACTS.  (a)  Fireworks within this state

 59-3    may not be sold at retail, offered for sale at retail, or possessed

 59-4    for retail sale within this state, may not be transported, used, or

 59-5    exploded in this state, unless the fireworks conform [are properly

 59-6    identified as conforming] to the standards of the United States

 59-7    Consumer Product Safety Commission and the [as] United States

 59-8    Department of Transportation [common fireworks.  The identification

 59-9    must be printed on all shipping cases, fireworks devices, and

59-10    retail containers. The imprint must be sufficiently conspicuous to

59-11    be readily recognized by law enforcement authorities and the

59-12    general public].  A manufacturer may be required to submit samples

59-13    of all fireworks to the state fire marshal for approval.

59-14          (b)  A person or organization may not manufacture,

59-15    distribute, sell at wholesale or retail, or use fireworks in a

59-16    public fireworks display or for agricultural, industrial, or

59-17    wildlife control purposes without obtaining the appropriate license

59-18    or permit.  Fireworks manufactured, distributed, sold, or used in

59-19    violation of this subsection are illegal fireworks.

59-20          (c)  A person may only offer for sale to the general public

59-21    Fireworks 1.4G [Class C fireworks] at authorized retail locations.

59-22    All mail order sales of Fireworks 1.4G [Class C fireworks] are

59-23    prohibited.

59-24          (d)  Fireworks may not be sold or offered for sale to

59-25    children under 12 years of age or to an intoxicated or incompetent

59-26    person.  A person selling fireworks at retail shall make a

59-27    reasonable effort to ascertain that potential purchasers are  of

 60-1    the minimum age required by this subsection.

 60-2          (e)  A person under 21 years of age may not be issued a

 60-3    pyrotechnic operator's license or a public fireworks display

 60-4    [license or] permit.  The minimum age for all other licenses and

 60-5    permits is 18 years.

 60-6          (f)  A person may not:

 60-7                (1)  explode or ignite fireworks within 600 feet of any

 60-8    church, a hospital other than a veterinary hospital, an asylum, a

 60-9    licensed child care center, or a public or private primary or

60-10    secondary school or institution of higher education unless they

60-11    receive authorization in writing from that organization;

60-12                (2)  sell at retail, explode, or ignite fireworks

60-13    within 100 feet of a place where flammable liquids or flammable

60-14    compressed gasses are stored and dispensed;

60-15                (3)  explode or ignite fireworks within 100 feet of a

60-16    place where fireworks are stored or sold;

60-17                (4)  ignite or discharge fireworks within or from a

60-18    motor vehicle;

60-19                (5)  place ignited fireworks in, or throw ignited

60-20    fireworks at, a motor vehicle;

60-21                (6)  conduct a public fireworks display that includes

60-22    Fireworks 1.3G [Class B fireworks] unless the person is a licensed

60-23    pyrotechnic operator;

60-24                (7)  conduct a proximate [an indoor] display of

60-25    fireworks that includes  Fireworks 1.3G or Fireworks 1.4G as

60-26    defined in NFPA 1126 Standards for the Use of Pyrotechnics Before a

60-27    Proximate Audience unless the person is a licensed pyrotechnic

 61-1    special effects operator and has [Class C fireworks without] the

 61-2    approval of the local fire prevention officer;

 61-3                (8)  obtain or attempt to obtain a license or permit by

 61-4    fraudulent representation; or

 61-5                (9)  sell, store, manufacture, distribute, or display

 61-6    fireworks except as provided by this article or rules adopted by

 61-7    the commission [board] under this article.

 61-8          (g)  A manufacturer, distributor, jobber, or importer, may

 61-9    not sell fireworks to a person who does not hold a valid license or

61-10    permit.

61-11          (h)  A person may not alter or deface a license or permit.

61-12    An altered or defaced license or permit is void.

61-13          Sec. 18.  ISSUANCE, SUSPENSION, REVOCATION, AND RENEWAL OF

61-14    [APPLICATIONS FOR AND HEARINGS ON] LICENSES AND PERMITS. (a)  The

61-15    commission [board] shall adopt rules for applications and set

61-16    qualifications for licenses and permits.

61-17          (b)  The commission [board] may, through the state fire

61-18    marshal, suspend, revoke, or refuse to issue or renew [conduct

61-19    hearings or proceedings concerning the suspension, revocation, or

61-20    refusal to issue or renew] a license or permit.

61-21          (c)  A license or permit may be denied, suspended, or

61-22    revoked, or renewal may be refused, if the commission [board],

61-23    through the state fire marshal and after notice and a public

61-24    hearing conducted under Section 18A of this article, finds that any

61-25    provision of this article, or any rule promulgated under this

61-26    article, has been violated.

61-27          (d)  A person or organization that has a license or permit

 62-1    revoked may not reapply for the license or permit earlier than one

 62-2    year from the date of revocation.  A person reapplying under this

 62-3    subsection must request a public hearing on the reissuance of the

 62-4    license or permit, and has the burden of proving that a license or

 62-5    permit should be granted.

 62-6          Sec. 18A.  DISCIPLINARY HEARING.  If the state fire marshal

 62-7    proposes to suspend, revoke, or refuse to renew a license or permit

 62-8    of a person, the  person is entitled to a hearing conducted by the

 62-9    State Office of Administrative Hearings.  Proceedings for a

62-10    disciplinary action are governed by the administrative procedure

62-11    law,  Chapter 2001, Government Code. Rules of practice adopted by

62-12    the commission applicable to the proceedings for a disciplinary

62-13    action may not conflict with the rules adopted by the State Office

62-14    of Administrative Hearings.

62-15          Sec. 19.  PENALTIES.  (a)  A person commits an offense if the

62-16    person knowingly or intentionally violates Section 17 of this

62-17    article.

62-18          (b)  An offense under this section is a Class B misdemeanor.

62-19          (c)  Each day that a violation occurs or continues

62-20    constitutes a separate offense.

62-21          (d)  Venue under this section is in the county in which the

62-22    offense is committed or in Travis County.

62-23          (e)  If the commission [board] determines that a violation of

62-24    this article creates a threat to the public safety, the commission

62-25    [board] may bring suit in the district court of the county in which

62-26    the person who committed the offense resides or has an office to

62-27    enjoin the person from engaging in the prohibited activity.  The

 63-1    commission [board] is not required to give bond as a condition to

 63-2    the issuance of injunctive relief.

 63-3          (f)  The state fire marshal, a fire chief, a fire marshal,

 63-4    their deputies, or a police or peace officer may seize illegal

 63-5    fireworks as defined by this article.  Fireworks seized in the

 63-6    enforcement of this article shall be kept in the custody of the

 63-7    seizing agent or the sheriff of the county in which the fireworks

 63-8    were seized.  The owner of the seized fireworks may file an action

 63-9    contesting the seizure in a district court in the county in which

63-10    the fireworks were seized.  The court may, not later than the 30th

63-11    day after the hearing on the seizure, authorize the return of part

63-12    or all of the confiscated fireworks.  The court shall order any

63-13    fireworks not returned to be destroyed.  If an action contesting

63-14    the seizure is not filed by the 30th day after the seizure, the

63-15    seizing agent or the sheriff shall destroy the fireworks.

63-16          Sec. 20.  DEPOSIT OF FEES IN TREASURY.  The fees collected

63-17    under this article shall be deposited in the state treasury to the

63-18    credit of the insurance board operating fund and may not be

63-19    appropriated for a purpose other than activities of the State Board

63-20    of Insurance.

63-21          SECTION 3.17.  The following laws are repealed:

63-22                (1)  Section 2(3), Article 5.43-2, Insurance Code; and

63-23                (2)  Section 1(4), Article 5.43-3, Insurance Code.

63-24          SECTION 3.18.  The change in law made by Section 13, Article

63-25    5.43-1, Insurance Code, Section 10A, Article 5.43-2, Insurance

63-26    Code, Section 9A, Article 5.43-3, Insurance Code, and Section 18A,

63-27    Article 5.43-4, Insurance Code, as added by this Act, applies only

 64-1    to a disciplinary proceeding commenced on or after the effective

 64-2    date of this Act. A disciplinary proceeding commenced before the

 64-3    effective date of this Act is governed by the law in effect

 64-4    immediately before the effective date of this Act, and that law is

 64-5    continued in effect for this purpose.

 64-6               ARTICLE 4.  DIVISION OF EMERGENCY MANAGEMENT

 64-7          SECTION 4.01.   Subchapter E, Chapter 418, Government Code,

 64-8    is amended by adding Section 418.110 to read as follows:

 64-9          Sec. 418.110.  STATEWIDE MUTUAL AID PROGRAM FOR FIRE

64-10    EMERGENCIES.  The division, in consultation with the Texas

64-11    Commission on Fire Protection, shall develop a statewide mutual aid

64-12    program for fire emergencies.

64-13                 ARTICLE 5.  EFFECTIVE DATE AND EMERGENCY

64-14          SECTION 5.01.   This Act takes effect September 1, 1997.

64-15          SECTION 5.02.   The importance of this legislation and the

64-16    crowded condition of the calendars in both houses create an

64-17    emergency and an imperative public necessity that the

64-18    constitutional rule requiring bills to be read on three several

64-19    days in each house be suspended, and this rule is hereby suspended.