CHAPTER 6003. FIRE PROTECTION SPRINKLER SYSTEM SERVICE AND INSTALLATION - Texas Statutes

INSURANCE CODE

TITLE 20. REGULATION OF OTHER OCCUPATIONS

CHAPTER 6003. FIRE PROTECTION SPRINKLER SYSTEM SERVICE AND

INSTALLATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6003.001. DEFINITIONS. In this chapter:

(1) "Fire protection sprinkler system" means an assembly of

underground or overhead piping or conduits that conveys water

with or without other agents to dispersal openings or devices to:

(A) extinguish, control, or contain fire; and

(B) provide protection from exposure to fire or the products of

combustion.

(2) "Fire protection sprinkler system contractor" means an

individual or organization that offers to undertake, represents

itself as being able to undertake, or undertakes the plan, sale,

installation, maintenance, or servicing of:

(A) a fire protection sprinkler system; or

(B) any part of a fire protection sprinkler system.

(3) "Individual" means a natural person, including an owner,

manager, officer, employee, or occupant.

(4) "Installation" means:

(A) the initial placement of equipment; or

(B) the extension, modification, or alteration of equipment

after initial placement.

(5) "Insurance agent" means:

(A) an individual, firm, or corporation licensed under:

(i) Subchapter E, Chapter 981; or

(ii) Subchapter A, B, C, D, E, or G, Chapter 4051; or

(B) an individual authorized to represent an insurance fund or

pool created by a municipality, county, or other political

subdivision of this state under Chapter 791, Government Code.

(6) "License" means the document issued to a responsible

managing employee authorizing the employee to engage in the fire

protection sprinkler system business in this state.

(7) "Maintenance" means the maintenance of a fire protection

sprinkler system or any part of a fire protection sprinkler

system in the condition of repair that provides performance as

originally planned.

(8) "Organization" means a corporation, a partnership or other

business association, a governmental entity, or any other legal

or commercial entity.

(9) "Registration certificate" means the document issued to a

fire protection sprinkler system contractor authorizing the

contractor to engage in business in this state.

(10) "Responsible managing employee" means an individual

designated by a company that plans, sells, installs, maintains,

or services fire protection sprinkler systems to ensure that each

fire protection sprinkler system, as installed, maintained, or

serviced, meets the standards for the system as provided by law.

(11) "Service" means maintenance, repair, or testing.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.002. APPLICABILITY OF CHAPTER. (a) This chapter 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) an individual or organization acting under court order as

authorization;

(4) an individual 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 chapter;

(6) an engineer licensed under Chapter 1001, Occupations Code,

acting solely in the engineer's professional capacity;

(7) a regular employee of a registered fire protection sprinkler

system contractor; or

(8) an owner or lessee of property that:

(A) installs a fire protection sprinkler system on the owned or

leased property for the owner's or lessee's own use or for family

members' use; and

(B) does not offer the property for sale or lease before the

first anniversary of the date of installation of the fire

protection sprinkler system.

(b) This chapter does not authorize an individual or

organization to practice professional engineering other than in

compliance with Chapter 1001, Occupations Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.003. EFFECT ON LOCAL REGULATION. (a) This chapter

and the rules adopted under this chapter have uniform force and

effect throughout this state. A municipality or county may not

enact an order, ordinance, or rule requiring a fire protection

sprinkler system contractor to obtain a registration certificate

from the municipality or county. A municipality or county may

not impose on a fire protection sprinkler system contractor

qualification or financial responsibility requirements other than

proof of a registration certificate.

(b) Notwithstanding any other provision of this chapter, a

municipality or county may require a fire protection sprinkler

system contractor to obtain a permit and pay a permit fee for the

installation of a fire protection sprinkler system and require

the installation of a fire protection sprinkler system to conform

to the building code or other construction requirements of the

municipality or county.

(c) A municipal or county order, ordinance, or rule in effect on

September 1, 1983, is not invalidated because of any provision of

this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONER,

DEPARTMENT, AND STATE FIRE MARSHAL

Sec. 6003.051. ADMINISTRATION OF CHAPTER. (a) The department

shall administer this chapter.

(b) The commissioner may issue rules necessary to administer

this chapter through the state fire marshal.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.052. ADOPTION OF RULES. (a) In adopting necessary

rules, the commissioner may use recognized standards, including

standards:

(1) adopted by federal law or regulation;

(2) published by a nationally recognized standards-making

organization; or

(3) developed by individual manufacturers.

(b) Under rules adopted under Section 6003.051(b), the

department may create a specialized licensing or registration

program for fire protection sprinkler system contractors.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.053. RULES RESTRICTING ADVERTISING OR COMPETITIVE

BIDDING. (a) The commissioner may not adopt rules restricting

advertising or competitive bidding by the holder of a license or

registration certificate issued under this chapter except to

prohibit false, misleading, or deceptive practices.

(b) In the commissioner's rules to prohibit false, misleading,

or deceptive practices, the commissioner may not include a rule

that:

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

(2) restricts the use of a license or registration certificate

holder's personal appearance or voice in an advertisement;

(3) relates to the size or duration of an advertisement by the

license or registration certificate holder; or

(4) restricts the license or registration certificate holder's

advertisement under a trade name.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.054. GENERAL POWERS AND DUTIES OF COMMISSIONER, STATE

FIRE MARSHAL, AND DEPARTMENT. (a) The commissioner may delegate

authority to exercise all or part of the commissioner's

functions, powers, and duties under this chapter, including the

issuance of licenses and registration certificates, to the state

fire marshal. The state fire marshal shall implement the rules

adopted by the commissioner for the protection and preservation

of life and property in controlling:

(1) the registration of an individual or an organization engaged

in the business of planning, selling, installing, maintaining, or

servicing fire protection sprinkler systems; and

(2) the requirements for the plan, sale, installation,

maintenance, or servicing of fire protection sprinkler systems

by:

(A) determining the criteria and qualifications for registration

certificate and license holders;

(B) evaluating the qualifications of an applicant for a

registration certificate to engage in the business of planning,

selling, installing, maintaining, or servicing fire protection

sprinkler systems;

(C) conducting examinations and evaluating the qualifications of

a license applicant; and

(D) issuing registration certificates and licenses to qualified

applicants.

(b) The commissioner shall establish a procedure for reporting

and processing complaints relating to the business of planning,

selling, installing, maintaining, or servicing fire protection

sprinkler systems in this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.055. FEES. (a) The commissioner shall set the fee

for:

(1) a registration certificate application in an amount not to

exceed $100;

(2) an initial or renewal registration certificate in an amount

not to exceed $1,200 annually; and

(3) an initial or renewal responsible managing employee license

fee in an amount not to exceed $200 annually.

(b) Unless the examination for a responsible managing employee

license is administered by a testing service, the commissioner

shall set a nonrefundable fee for each examination in an amount

not to exceed $100.

(c) The commissioner shall set a fee in an amount not to exceed

$70 for:

(1) a duplicate registration certificate or license issued under

this chapter; or

(2) any request requiring changes to a registration certificate

or license.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.056. DEPOSIT IN OPERATING ACCOUNT. All fees collected

under this chapter shall be deposited in the state treasury to

the credit of the Texas Department of Insurance operating

account for use in administering this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER C. FIRE PROTECTION ADVISORY COUNCIL

Sec. 6003.101. ADVISORY COUNCIL; APPOINTMENT. (a) The

commissioner shall appoint the members of the fire protection

advisory council, who serve at the pleasure of the commissioner.

(b) The advisory council is composed of seven members as

follows:

(1) three members who have been actively engaged in the

management of a fire protection sprinkler system business for not

less than five years preceding appointment;

(2) one member who represents the engineering section of the

department's property and casualty program;

(3) one member who is a volunteer firefighter; and

(4) two members who each represent a different municipal fire

department in this state.

(c) The State Firemen's and Fire Marshals' Association of Texas,

on the commissioner's request, may recommend a volunteer

firefighter for appointment to the advisory council.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.102. ADVISORY COUNCIL DUTIES. (a) In addition to

other duties delegated by the commissioner, the fire protection

advisory council shall:

(1) advise the state fire marshal regarding practices in the

fire protection sprinkler system industry and the rules necessary

to implement and administer this chapter; and

(2) make recommendations to the state fire marshal regarding

forms and procedures for registration certificates and licenses.

(b) The advisory council shall periodically:

(1) review rules implementing this chapter; and

(2) recommend rule changes to the commissioner.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER D. REGISTRATION AND LICENSE REQUIREMENTS

Sec. 6003.151. FIRE PROTECTION SPRINKLER SYSTEM CONTRACTOR;

REGISTRATION CERTIFICATE REQUIRED. (a) Unless the individual or

organization holds a registration certificate issued by the

department, an individual or organization may not plan, sell,

install, maintain, or service a fire protection sprinkler system.

(b) An applicant for a registration certificate must apply to

the department on a form prescribed by the commissioner.

(c) An organization that is a partnership or joint venture is

not required to register under the name of the organization if

each partner or joint venturer holds a registration certificate.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.152. REQUIRED INSURANCE COVERAGE FOR REGISTRATION

CERTIFICATE. (a) The department may not issue a registration

certificate under this chapter unless the applicant files with

the department evidence of a general liability insurance policy

that includes products and completed operations coverage. The

policy must be conditioned to pay on behalf of the insured those

amounts that the insured becomes legally obligated to pay as

damages because of bodily injury and property damage caused by an

occurrence involving the insured or the insured's officer, agent,

or employee in the conduct of any activity that requires a

registration certificate or license under this chapter.

(b) Unless the commissioner, after notice and an opportunity for

a hearing, increases or decreases the limits, the limits of

insurance coverage required by Subsection (a) must be at least:

(1) $100,000 combined single limits for bodily injury and

property damage for each occurrence; and

(2) $300,000 aggregate for all occurrences for each policy year.

(c) The evidence of insurance required by this section must be

in the form of a certificate of insurance executed by an insurer

authorized to engage in the business of insurance in this state

and countersigned by an insurance agent licensed in this state.

A certificate of insurance for surplus lines coverage procured in

compliance with Chapter 981 through a surplus lines agent that is

licensed under Subchapter E, Chapter 981, and resident in this

state may be filed with the department as evidence of the

coverage required by this section.

(d) An insurance certificate executed and filed with the

department under this section remains in force until the insurer

has terminated future liability by the notice required by the

department.

(e) Failure to maintain the liability insurance required by this

section constitutes grounds for the denial, suspension, or

revocation, after notice and opportunity for hearing, of a

registration certificate issued under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.153. RESPONSIBLE MANAGING EMPLOYEE: LICENSE REQUIRED.

(a) Each fire protection sprinkler system contractor must employ

at least one licensed responsible managing employee on a

full-time basis.

(b) A person may not act as a responsible managing employee

unless the person holds a license issued by the department,

conditioned on the successful completion of the license

examination and compliance with the requirements of the rules

adopted under this chapter.

(c) Notwithstanding Subsection (a), an individual or

organization with a current registration certificate 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 a longer period approved by the commissioner

under the rules adopted under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.154. POSTING OF LICENSE OR CERTIFICATE REQUIRED. Each

registration certificate and license issued under this chapter

must be posted in a conspicuous place in the fire protection

sprinkler system contractor's place of business.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.155. DISPLAY OF REGISTRATION CERTIFICATE NUMBER ON

CERTAIN DOCUMENTS REQUIRED. Each bid, proposal, offer, and

installation drawing for a fire protection sprinkler system must

prominently display the registration certificate number of the

fire protection sprinkler system contractor.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.156. LICENSE EXAMINATION. (a) The state fire marshal

shall establish the scope and type of an examination required by

this chapter.

(b) The state fire marshal may administer the examination or may

enter into an agreement with a testing service.

(c) If a testing service is used, the state fire marshal may

contract with the testing service regarding requirements for the

examination, including:

(1) examination development;

(2) scheduling;

(3) site arrangements;

(4) grading;

(5) reporting;

(6) analysis; or

(7) other administrative duties.

(d) The state fire marshal may require the testing service to:

(1) correspond directly with an applicant regarding the

administration of the examination;

(2) collect a reasonable fee from an applicant for administering

the examination; or

(3) administer the examination at a specific location or time.

(e) The state fire marshal shall adopt rules as necessary to

implement examination requirements under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.157. EXAMINATION RESULTS. (a) Not later than the

30th day after the date on which an examination is administered

under this chapter, the state fire marshal shall send notice to

each examinee of the results of the examination.

(b) If an examination is graded or reviewed by a testing

service, the state fire marshal shall send notice to each

examinee of the results of the examination not later than the

14th day after the date on which the state fire marshal receives

the results from the testing service.

(c) If the notice of the examination results will be delayed for

more than 90 days after the examination date, the state fire

marshal, before the 90th day, shall send notice to the examinee

of the reason for the delay.

(d) The state fire marshal may require a testing service to

notify an examinee of the results of the examinee's examination.

(e) If requested in writing by an individual who fails the

examination administered under this chapter, the state fire

marshal shall send to the individual an analysis of the

individual's performance on the examination.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.158. CONTINUING EDUCATION REQUIREMENTS. (a) The

commissioner may adopt procedures for certifying and may certify

continuing education programs.

(b) Participation in the continuing education programs is

voluntary.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.159. RECIPROCAL LICENSE.The department may waive any

license requirement for an applicant who holds a license issued

by another state that has license requirements substantially

equivalent to the license requirements of this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.160. NOT TRANSFERABLE. A registration certificate or

license issued under this chapter is not transferable.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER E. RENEWAL OF REGISTRATION CERTIFICATE OR LICENSE

Sec. 6003.201. RENEWAL REQUIRED; FEE. (a) Except as otherwise

provided by this subsection, an initial registration certificate

or license is valid for a period of one year from the date of

issue and is renewable on payment of the renewal fee. An initial

registration certificate or license issued on or after September

1, 1983, may be issued for a period of less than one year and the

renewal fee shall be prorated proportionally.

(b) A renewal of a registration certificate or license issued

under this chapter is valid for a period of two years. The

license or registration fee for each year of the two-year period

is payable on renewal.

(c) The commissioner by rule may adopt a system under which

registration certificates and licenses expire on various dates

during the year. For the year in which an expiration date of a

registration certificate or license is less than one year from

its issuance or anniversary date, the fee shall be prorated on a

monthly basis so that each holder of a registration certificate

or license pays only that portion of the renewal fee that is

allocable to the number of months during which the registration

certificate or license is valid. On renewal on the new

expiration date, the total renewal fee is payable.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.202. NOTICE OF EXPIRATION. At least 30 days before

the expiration date of a registration certificate or license, the

department shall send written notice of the impending expiration

to the holder of the registration certificate or license at the

holder's last known address.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.203. RENEWAL PROCEDURES. (a) The holder of an

unexpired registration certificate or license may renew the

certificate or license by paying the required renewal fee to the

department before the expiration date of the certificate or

license.

(b) An individual or organization whose registration certificate

or license has been expired for 90 days or less may renew the

certificate or license by paying to the department:

(1) the required renewal fee; and

(2) a fee equal to one-half of the initial fee for the

certificate or license.

(c) An individual or organization whose registration certificate

or license has been expired for more than 90 days but less than

two years may renew the certificate or license by paying to the

department:

(1) all unpaid renewal fees; and

(2) a fee that is equal to the initial fee for the certificate

or license.

(d) An individual or organization whose registration certificate

or license has been expired for two years or longer may not renew

the certificate or license. The individual or organization may

obtain a new registration certificate or license by complying

with the requirements and procedures for obtaining an initial

registration certificate or license.

(e) This section may not be construed to prevent the department

from denying or refusing to renew a license under applicable law

or commissioner rules.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER F. PROHIBITED PRACTICES

AND DISCIPLINARY PROCEDURES

Sec. 6003.251. PROHIBITED PRACTICES. An individual or

organization may not:

(1) obtain or attempt to obtain a registration certificate or

license by fraudulent representation; or

(2) plan, sell, install, maintain, or service a fire protection

sprinkler system in violation of this chapter or the rules

adopted under this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.252. DISCIPLINARY ACTIONS. The state fire marshal may

suspend, revoke, or refuse to issue or renew a registration

certificate or license if, after notice and hearing, the state

fire marshal finds that the applicant, registrant, or license

holder has engaged in acts that:

(1) violate this chapter;

(2) violate rules or standards adopted under this chapter; or

(3) constitute misrepresentation made in connection with:

(A) the sale of products; or

(B) services rendered.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.253. DISCIPLINARY HEARING. (a) If the state fire

marshal proposes to suspend, revoke, or refuse to renew a license

or registration certificate issued under this chapter, the holder

of the license or certificate is entitled to a hearing conducted

by the State Office of Administrative Hearings.

(b) Rules of practice adopted by the commissioner applicable to

the proceedings for a disciplinary action may not conflict with

rules adopted by the State Office of Administrative Hearings.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.254. APPLICABILITY OF ADMINISTRATIVE PROCEDURE ACT.

Proceedings for the denial, suspension, or revocation of a

registration certificate or license, appeals from those

proceedings, and any other proceedings for a disciplinary action

are governed by Chapter 2001, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

Sec. 6003.255. REAPPLICATION REQUIREMENTS. (a) An applicant or

holder of a registration certificate or license whose certificate

or license has been denied, refused, or revoked under this

chapter, other than for failure to pass a required written

examination, may not file another application for a registration

certificate or license before:

(1) the first anniversary of the effective date of the denial,

refusal, or revocation; or

(2) if judicial review of the denial, refusal, or revocation is

sought, before the first anniversary of the date of the final

court order or decree affirming the action.

(b) The commissioner may deny an application described by

Subsection (a) unless the applicant shows good cause why the

denial, refusal, or revocation of the registration certificate or

license should not be considered a bar to the issuance of a new

registration certificate or license.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.

SUBCHAPTER G. CRIMINAL PENALTY

Sec. 6003.301. CRIMINAL PENALTY. (a) A person commits an

offense if the person knowingly violates Section 6003.151(a),

6003.153, or 6003.251.

(b) An offense under this section is a Class B misdemeanor.

(c) Venue for an offense under this section is in Travis County

or the county in which the offense is committed.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 1J.001, eff. April 1, 2009.