Amend CSSB 1952 by adding the following appropriately
numbered article to the bill and renumbering remaining articles of
the bill as appropriate:
ARTICLE ____. REGULATION OF CERTAIN FIRE PROTECTION
SPRINKLER SYSTEM JOURNEYMEN AND APPRENTICES
SECTION ____.01. Section 1, Article 5.43-3, Insurance Code,
is amended by amending Subdivision (12) and adding Subdivisions
(15) and (16) to read as follows:
(12) "License" means the document issued to a
responsible managing employee or a fire protection sprinkler system
contractor employee authorizing same to engage in the fire
protection sprinkler system business in this state.
(15) "Fire protection sprinkler system apprentice"
means a person who:
(A) installs, alters, maintains, services, or
inspects a fire protection sprinkler system or any part of the
system as an employee of a fire protection sprinkler system
contractor; and
(B) has less than five years of experience as an
employee of a contractor.
(16) "Fire protection sprinkler system journeyman"
means a person who:
(A) installs, alters, maintains, services, or
inspects a fire protection sprinkler system or any part of the
system as an employee of a fire protection sprinkler system
contractor; and
(B) has at least five years of experience as an
employee of a contractor.
SECTION ____.02. Section 2(b), Article 5.43-3, Insurance
Code, is amended to read as follows:
(b) This article does not apply to:
(1) an employee of the United States, this state, or
any political subdivision of this state who acts as a fire
protection sprinkler system contractor for the employing
governmental entity;
(2) the plan, sale, installation, maintenance, or
servicing of a fire protection sprinkler system in any property
owned by the United States or this state;
(3) a person or organization acting under court order
as authorization;
(4) a person or organization that sells or supplies
products or materials to a registered fire protection sprinkler
system contractor;
(5) an installation, maintenance, or service project
for which the total contract price for labor, materials, and all
other services is less than $100, if:
(A) the project is not a part of a complete or
more costly project, whether the complete project is to be
undertaken by one or more fire protection sprinkler system
contractors; or
(B) the project is not divided into contracts of
less than $100 for the purpose of evading this article;
(6) a registered professional engineer acting solely
in such professional capacity;
(7) a regular employee of a registered fire protection
sprinkler system contractor; [or]
(8) an owner or lessee of property that installs a fire
protection sprinkler system on the owned or leased property for its
own use or for the use by family members and does not offer such
property for sale or lease within one year after installation of a
fire protection sprinkler system; or
(9) an employee of a fire protection sprinkler system
contractor who installs, alters, maintains, services, or inspects
fire protection sprinkler systems only in one-family or two-family
dwellings as provided by the 2002 edition of the National Fire
Protection Association (NFPA) Standard 13D.
SECTION ____.03. Section 3(a), Article 5.43-3, Insurance
Code, is amended to read as follows:
(a) The board shall administer this article and may issue
rules necessary to its administration through the State Fire
Marshal. Under rules adopted under this subsection, the board
shall operate [may create] a specialized licensing or registration
program for fire protection sprinkler system contractors and for
journeymen and apprentices of those contractors.
SECTION ____.04. Section 4, Article 5.43-3, Insurance Code,
is amended by adding Subsections (c-1), (c-2), and (d-1) and
amending Subsection (d) to read as follows:
(c-1) Each employee of a fire protection sprinkler system
contractor who installs, alters, maintains, services, or inspects a
fire protection sprinkler system and who has at least five years of
documented experience as a fire protection sprinkler system
employee or apprentice shall obtain a journeyman license. The
board shall issue the license conditioned on the successful
completion of the examination requirement and other requirements
prescribed by the rules adopted under this article. Each applicant
for a journeyman license must submit with the application a
nonrefundable examination fee in an amount not to exceed $50.
(c-2) Each employee of a fire protection sprinkler system
contractor who installs, alters, maintains, services, or inspects
fire protection sprinkler systems and who has less than five years
of experience as an employee of a fire protection sprinkler system
contractor must register with the board as an apprentice. To be
eligible for registration, the applicant must:
(1) meet the requirements prescribed by the rules
adopted under this article; and
(2) submit a nonrefundable registration fee in an
amount not to exceed $15.
(d) An initial contractor [A] certificate of registration
and an initial managing employee [a] license are valid for a period
of one year from the date of issuance [issue] and are renewable
[annually] on payment of the renewal [annual] fee[; provided,
however, that the initial certificates of registration or licenses
issued on or after September 1, 1983, may be issued for periods of
less than one year and the annual fee shall be prorated
proportionally].
(d-1) A journeyman license and an apprentice certificate of
registration are valid for one year from the date of issuance and
are renewable annually on the anniversary of the date of issuance on
payment of the applicable renewal fee. The renewal fee for a
journeyman license is $20. The renewal fee for an apprentice
certificate of registration is $15.
SECTION ____.05. Sections 5(a) and (c), Article 5.43-3,
Insurance Code, are amended to read as follows:
(a) The board shall not issue a contractor certificate of
registration under this article unless the applicant files with the
board evidence of a general liability insurance policy that
includes products and completed operations coverage. The limits of
insurance coverage required by this section shall be in an amount
not less than $100,000 combined single limits for bodily injury and
property damage for each occurrence and not less than $300,000
aggregate for all occurrences per policy year, unless the board
increases or decreases the amounts under Section 7 of this article.
The policy shall be conditioned to pay on behalf of the insured
those amounts that the insured is legally obligated to pay as
damages because of bodily injury and property damage caused by an
occurrence involving the insured or the insured's servant, officer,
agent, or employee in the conduct of any business registered under
this article.
(c) Failure to maintain liability insurance required under
this section constitutes grounds for the denial, suspension, or
revocation of a contractor certificate of registration issued under
this article after notice and opportunity for hearing.
SECTION ____.06. Section 5A(a), Article 5.43-3, Insurance
Code, is amended to read as follows:
(a) Each renewal of a license or certificate of registration
issued under this article is valid for a period of two years. The
managing employee license fee or contractor registration fee for
each year of the two-year period is payable on renewal.
SECTION ____.07. Section 5B, Article 5.43-3, Insurance
Code, is amended to read as follows:
Sec. 5B. EXAMINATION. (a) Not later than the 30th day
after the day on which an examination is administered under this
article, the board shall send notice to each examinee of the results
of the examination.
(b) If an examination is graded or reviewed by a national
testing service, the board shall send notice to each examinee of the
results of the examination within two weeks after the date on which
the board receives the results from the testing service. If the
notice of the examination results will be delayed for longer than 90
days after the examination date, the board shall send notice to each
examinee of the reason for the delay before the 90th day.
(c) If requested in writing by a person who fails the
examination administered under this article, the board shall send
to the person an analysis of the person's performance on the
examination.
(d) A person who fails the examination for a fire protection
sprinkler system journeyman license may not retake the examination
before the 90th day after the date of the initial examination.
SECTION ____.08. Section 5C, Article 5.43-3, Insurance
Code, is amended to read as follows:
Sec. 5C. CONTINUING EDUCATION. (a) Except as provided by
Subsection (b) of this section, the [The] board may adopt
procedures for certifying and may certify continuing education
programs. Participation in the programs is voluntary.
(b) The board shall adopt procedures for certifying and
shall certify continuing education programs for fire protection
sprinkler system journeymen. A journeyman must successfully
complete six hours of continuing education courses on the laws and
codes governing fire protection sprinkler systems to be eligible to
renew a license under this article.
SECTION ____.09. Section 8, Article 5.43-3, Insurance Code,
is amended to read as follows:
Sec. 8. PROHIBITED ACTS. A person or organization may not:
(1) plan, sell, install, maintain, or service a fire
protection sprinkler system without a valid certificate of
registration;
(2) act as a fire protection sprinkler system
contractor under a certificate of registration without having at
least one full-time employee who holds a valid responsible managing
employee license; provided, however, that a person or organization
with a current certificate of registration may act as a fire
protection sprinkler system contractor for 30 days after the death
or dissociation of its licensed responsible managing employee or
for such longer period as may be approved by the board pursuant to
the rules adopted hereunder;
(3) act as a responsible managing employee,
journeyman, or apprentice for a fire protection sprinkler system
contractor without a valid license or certificate of registration,
as applicable;
(4) obtain or attempt to obtain a certificate of
registration or license by fraudulent representation; or
(5) plan, sell, install, maintain, or service a fire
protection sprinkler system in violation of this article or the
rules adopted under this article.
SECTION ____.10. (a) Not later than January 1, 2004, the
Texas Department of Insurance and the state fire marshal shall
adopt rules and establish the procedures and examination
requirements necessary to implement the licensing of fire
protection sprinkler system journeymen and the registration of fire
protection sprinkler system apprentices under Article 5.43-3,
Insurance Code, as amended by this article.
(b) A fire protection sprinkler system journeyman is not
required to hold a license under Article 5.43-3, Insurance Code, as
amended by this article, before July 1, 2004.
(c) A fire protection sprinkler system apprentice is not
required to register under Article 5.43-3, Insurance Code, as
amended by this article, before July 1, 2004.
(d) A fire protection sprinkler system employee who has at
least five years of experience on the effective date of this article
and who applies for a fire protection sprinkler system journeyman
license within six months of the effective date of this article is
not required to pass a license examination under Article 5.43-3,
Insurance Code, as amended by this article, to receive a journeyman
license.
SECTION ____.11. This article takes effect immediately if
this Act receives a vote of two-thirds of all the members elected to
each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
this article to have immediate effect, this article takes effect
September 1, 2003.