79R13765 PB-D


By:  Driver                                                       H.B. No. 3073



A BILL TO BE ENTITLED

AN ACT

relating to certain disclosure requirements regarding inspections 
of fire extinguishers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 5.43-1, Insurance Code, is amended by 
adding Section 4B to read as follows:
	Sec. 4B.  REQUIRED STATEMENT.  (a)  A firm registered under 
Section 4 of this article that performs an annual fire extinguisher 
inspection at the premises of a business entity that is required 
under a municipal ordinance to obtain the inspection shall provide 
the business entity at which the inspection is performed a written 
statement that discloses:
		(1)  that the business entity has the right to select 
the registered firm that will conduct the inspection;
		(2)  that the registered firm is not affiliated with 
any governmental agency; and
		(3)  the registered firm's fees for performing the 
inspection.       
	(b)  A registered firm may comply with Subsection (a)(3) of 
this section by providing the business entity with:
		(1)  a copy of the firm's price list for different 
services, including inspections, provided by the firm; or
		(2)  any other price document issued by the firm that 
complies with standard business practices in the fire protection 
industry.
	(c)  Except as provided by Subsection (d) of this section, an 
authorized person at the business entity at which the inspection is 
performed must sign the statement before the inspection may be 
performed.  The registered firm shall provide a copy of the signed 
statement to the authorized person at the business entity.
	(d)  If the services of the registered firm are provided 
under a pre-authorized arrangement with the business entity, 
including a  contract or other signed agreement, the registered 
firm:
		(1)  shall provide a copy of the statement required 
under Subsection (a) of this section to the business entity at the 
time the contract or agreement is entered into; and
		(2)  is not required to obtain the signature of an 
authorized person at the business entity at the time the inspection 
services are performed.
	(e)  A registered firm shall maintain a copy of the signed 
statement under Subsection (c) of this section or the contract or 
other agreement under Subsection (d) of this section in the firm's 
records until the first anniversary of the date of the inspection.
	SECTION 2.  This Act takes effect September 1, 2005.