PART 1. TEXAS DEPARTMENT OF INSURANCE
CHAPTER 1. GENERAL ADMINISTRATION
SUBCHAPTER D. EFFECT OF CRIMINAL CONDUCT
The commissioner of insurance adopts amendments to 28 TAC §§1.504, 1.508, and 1.509, concerning the establishment of a new process for license applicants and others to complete the fingerprinting process. The sections are adopted with nonsubstantive changes to the proposed text published in the January 6, 2023, issue of the Texas Register (48 TexReg 19). The text will be republished.
REASONED JUSTIFICATION. The amendments are necessary to update the fingerprinting process procedure. The new procedure restricts access to the Texas Department of Public Safety (DPS) fingerprint code on the website of the Texas Department of Insurance (TDI or the department). Previously, the DPS fingerprint code could be accessed by anyone who visited TDI's website. The DPS fingerprint code is now available only to those who request a fingerprint service code through TDI's new online portal. TDI updated the fingerprinting process procedure at the request of DPS. Descriptions of the amended sections follow.
Section 1.504. Fingerprint Requirement. Amended §1.504 adds language that states for a natural person, agency, or company to be eligible to apply for a license, registration, certification, or association with a regulated agency or company, the applicant must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/agent/fingerprinting-process.html.
The amended section also includes nonsubstantive text changes that update statutory citations to remove redundant information and insert titles of referenced provisions; remove redundant information in an internal reference; replace "pursuant to" with "under," "prior to" with "before," and "subchapter" with "title"; and correct punctuation.
The text of subsection (c) as proposed is not adopted. Proposed subsection (c) replaced "commissioner" with "Commissioner," but the updated style guide mandates the usage of "commissioner." Given this update, adopted subsection (c) will revert to the rule's original usage of "commissioner."
Section 1.508. Use and Confidentiality of Fingerprints. Amended §1.508 includes nonsubstantive text changes that update statutory citations to insert titles of referenced provisions and replace "pursuant to" with "under" and "shall" with "will."
Section 1.509. Fingerprint Format and Complete Application. Amended §1.509 adds language that requires individuals having their fingerprints captured by a criminal law enforcement agency to coordinate with the vendor authorized by DPS to obtain a fingerprint card, including paying any upfront processing fees. Amended §1.509 also requires those same individuals to mail the completed card to the vendor authorized by DPS.
Amended §1.509 removes language that allows the department's examination vendor to capture fingerprints. Amended §1.509 also removes language that requires (1) certain individuals to pay the department's examination vendor; and (2) individuals having their fingerprints captured by a criminal law enforcement agency to submit to the department payment for all applicable fingerprint processing fees in the amount and in the manner stated on the department's application or biographical submission form, or as otherwise posted by the department if the individual is not using a department form. Amended §1.509 also removes language that specifies that fingerprint cards may be obtained by sending a written request to the department's Licensing Division and that criminal history processing time and rejection rates for applications and submissions using paper fingerprint cards may be greater than with electronic fingerprints.
There are also nonsubstantive text changes that replace "shall" with "will" or "must," as appropriate, and delete the words "of time." The word "subchapter" is also replaced with "title."
The text of subsections (a) to (c) as proposed is not adopted. Proposed subsections (a) to (c) used the following phrase: "vendor acceptable to the Texas Department of Public Safety." Adopted subsections (a) to (c) replaces "acceptable to" with "authorized by" in order to add specificity. Given this update, adopted subsections (a) to (c) will use the following phrase: "vendor authorized by the Texas Department of Public Safety."
SUMMARY OF COMMENTS. TDI did not receive any comments on the proposed amendments.
STATUTORY AUTHORITY. The commissioner adopts the amendments to §§1.504, 1.508, and 1.509 under Insurance Code §§801.056, 801.155, 981.009, 1305.007, 4001.005, 4056.005, 4101.005, 4102.004, 4151.006, 4152.004, 4153.003, 4201.003, 4202.004(d), and 36.001.
Insurance Code §801.056 provides that the department may deny an application for an authorization if the applicant or a corporate officer of the applicant fails to provide a complete set of fingerprints on request by the department.
Insurance Code §801.155 provides that the department may adopt rules under Chapter 801, Subchapter D prescribing the contents of a petition for issuance or reinstatement of a certificate of authority.
Insurance Code §981.009 provides that the commissioner may adopt rules to implement Chapter 981 or satisfy requirements under federal law or regulations.
Insurance Code §1305.007 provides that the commissioner may adopt rules as necessary to implement Chapter 1305.
Insurance Code §4001.005 provides that the commissioner may adopt rules necessary to implement Insurance Code Title 13 and to meet the minimum requirements of federal law, including regulations.
Insurance Code §4056.005 provides that the commissioner may adopt rules as necessary to implement Chapter 4056, Subchapter A and Subchapter B and to meet the minimum requirements of federal law, including regulations.
Insurance Code §4101.005 provides that the commissioner may adopt rules necessary to implement Chapter 4101 and to meet the minimum requirements of federal law, including regulations.
Insurance Code §4102.004 specifies that the commissioner may adopt reasonable and necessary rules to implement Chapter 4102.
Insurance Code §4151.006 specifies that the commissioner may adopt, in the manner prescribed by Chapter 36, Subchapter A, rules that are fair, reasonable, and appropriate to augment and implement Chapter 4151.
Insurance Code §4152.004 specifies that the commissioner may adopt reasonable rules as necessary to implement Chapter 4152.
Insurance Code §4153.003 specifies that the commissioner may adopt rules necessary to carry out Chapter 4153 and to regulate risk managers.
Insurance Code §4201.003 specifies that the commissioner may adopt rules to implement Chapter 4201.
Insurance Code §4202.004(d) provides that the commissioner will require that each officer of an applicant and each owner or shareholder of the applicant or, if a purchaser is publicly held, each owner or shareholder described by §4202.004(a)(1), submit a complete and legible set of fingerprints to the department for the purpose of obtaining criminal history record information from the Texas Department of Public Safety and the Federal Bureau of Investigation. The department will conduct a criminal history check of each applicant using information (1) provided under Insurance Code §4202.004; and (2) made available to the department by the Texas Department of Public Safety, the Federal Bureau of Investigation, and any other criminal justice agency under Government Code Chapter 411.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
§1.504.Fingerprint Requirement.
(a) In the manner described in §1.509 of this title (relating to Fingerprint Format and Complete Application), each individual listed in §1.503 of this title (relating to Application of Fingerprint Requirement) must, at or near the same time that they submit their biographical information or application for licensure, registration, authorization, certification, or permit, also submit:
(1) a complete set of the individual's fingerprints;
(2) full payment for all processing fees charged by the Texas Department of Public Safety and the Federal Bureau of Investigation; and
(3) all additional identifying information required by the Texas Department of Public Safety and the Federal Bureau of Investigation for processing fingerprints.
(b) An individual listed in §1.503 of this subchapter is exempt from the requirement set forth in subsection (a) of this section if the individual satisfies the requirements of this subsection.
(1) Except as provided in subsection (d) of this section, the individual is submitting an application or biographical information, and:
(A) previously provided the department a complete, legible fingerprint card or electronic set of fingerprints as part of an earlier submission which was granted or approved; and
(B) maintains that prior license, or licensed entity association, in good standing on the date of the subsequent application.
(2) The individual is licensed, or associated with an entity licensee, under Insurance Code Chapter 981, Subchapter E, concerning Surplus Lines Agents, or Title 13, concerning Regulation of Professionals, and is:
(A) renewing an unexpired license or license that has been expired for not more than 90 days; or
(B) applying for a license that has been expired for more than 90 days but not more than one year.
(3) The individual is applying for an original emergency license under Insurance Code Chapter 4051, concerning Property and Casualty Agents; Chapter 4053, concerning Managing General Agents; or Chapter 4101, concerning Insurance Adjusters. Emergency licensees who later qualify for a permanent license by examination must submit a complete set of fingerprints and payment of all fingerprint processing fees before issuance of the permanent license.
(4) The individual, or the entity with which the individual is associated, is renewing an unexpired license, certification, registration, or authorization.
(5) The individual is licensed under Insurance Code Chapter 2651, Subchapter A, concerning Title Insurance Agent's License, or Chapter 2652, concerning Escrow Officers, and is renewing an unexpired license or license that has been expired for not more than 90 days.
(6) The individual is submitting an application under Insurance Code Chapter 2651, Subchapter A, or Chapter 2652 and has previously provided the department a complete, legible fingerprint card or electronic set of fingerprints as part of an earlier Insurance Code Chapter 2651, Subchapter A, or Chapter 2652 submission that was granted or approved; and either:
(A) maintains that prior license in good standing on the date of the current application; or
(B) held a prior Insurance Code Chapter 2651 , Subchapter A, or Chapter 2652 license that has not been canceled for more than 60 days and maintained that license in good standing at the time of cancellation.
(c) The commissioner may waive the requirement in subsection (a) of this section if the commissioner determines that the individual is unable to provide fingerprints due to permanent physical injury or illness. The individual seeking a waiver under this subsection must submit evidence of such a condition to the satisfaction of the commissioner.
(d) The exemption set forth in subsection (b)(1) of this section is subject to the department's ability to maintain an individual's previously submitted set of fingerprints, and the department may require a complete set of fingerprints and payment of all fingerprint processing fees from an individual notwithstanding the exemption.
(e) This subchapter does not limit the department's statutory authority to require the submission of fingerprints or obtain criminal history information.
(f) For a natural person, agency, or company to be eligible for a license, registration, certification, or association with a regulated agency or company, the natural person, agency, or company must start the application or association process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/agent/fingerprinting-process.html. The requesting agency, company, or natural person must submit information necessary to complete the fingerprint service code request, including:
(1) the agency's name, agency representative's name, agency's email address, and license type the agency is applying for, if applying for association with an agency;
(2) the company's name, company representative's name, and company's email address, if applying for association with a company; and
(3) the natural person's name, state of residence, email address, and license type the natural person is applying for, if applying for a license as a natural person.
§1.508.Use and Confidentiality of Fingerprints.
(a) The department will submit all fingerprints received under this subchapter to the Texas Department of Public Safety and the Federal Bureau of Investigation to obtain criminal history information on the individual for the purpose of determining the individual's fitness for licensure, authorization, certification, permit, or registration, or control of an entity holding or seeking a license, authorization, certificate, permit, or registration.
(b) The department will use and maintain all criminal history information obtained under this subchapter in accordance with state and federal laws, including:
(1) Texas Government Code §411.106, concerning Access to Criminal History Record Information: Texas Department of Insurance;
(2) Texas Government Code §411.084, concerning Use of Criminal History Record Information;
(3) United States Public Law 92-544; and
(4) Code of Federal Regulations 28 CFR 50.12.
§1.509.Fingerprint Format and Complete Application.
(a) Each individual described in §1.503 of this title (relating to Application of Fingerprint Requirement) and who is required to submit fingerprints under §1.504 of this title (relating to Fingerprint Requirement) must have a complete set of their fingerprints captured by:
(1) an electronic fingerprint vendor authorized by the Texas Department of Public Safety; or
(2) a criminal law enforcement agency, including a sheriff's office or police department.
(b) Individuals having their fingerprints captured by a vendor authorized by the Texas Department of Public Safety must pay, in a manner acceptable to the vendor, all fingerprint capture and processing fees directly to the vendor at the time the fingerprints are captured or at such time as is acceptable to the vendor.
(c) Individuals having their fingerprints captured by a criminal law enforcement agency must:
(1) coordinate with the vendor authorized by the Texas Department of Public Safety to obtain a fingerprint card, including paying any upfront processing fees;
(2) pay that agency any associated charges that may apply to the capture of their fingerprints in a manner acceptable to that agency; and
(3) mail the completed card to the vendor authorized by the Texas Department of Public Safety.
(d) All fingerprint impressions must be legible and suitable for use by the Texas Department of Public Safety and Federal Bureau of Investigation.
(e) Individuals required to submit fingerprints must submit them within the time frame indicated on the specific application or biographical submission form. Individuals may request an extension by contacting the division of the department that will process the application or biographical submission.
(f) The application or submission of a person required to submit fingerprints will not be complete until the department receives the criminal history information.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301173
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587
SUBCHAPTER Q. DISCOUNT HEALTH CARE PROGRAM REGISTRATION AND RENEWAL REQUIREMENTS
The commissioner of insurance adopts amendments to 28 TAC §19.1602, concerning discount health care program registration and renewal. The amendments are necessary to update department contact information that appears in the section, and to address that fax is no longer a valid method to submit forms. The commissioner adopts §19.602 with nonsubstantive changes to the proposed text published in the January 6, 2023, issue of the Texas Register (48 TexReg 23). The text will be republished.
REASONED JUSTIFICATION. The department has moved from its previous location in the William P. Hobby Building at 333 Guadalupe Street in Austin, Texas 78701, to the Barbara Jordan State Office Building at 1601 Congress Avenue in Austin, Texas 78701. Because of this, references in §19.1602 to the former location need to be removed or updated. The amendments also update the department's website, phone numbers, and agency division names, and make additional nonsubstantive text changes, and remove the fax number because fax is no longer a valid method of submitting discount health care program operator registration application forms. A description of the adopted amended section follows.
Section 19.1602. Registration Requirement. Amendments to §19.1602 remove outdated mailing addresses and update the department's website, phone number, and agency division names. In addition, an amendment to subsection (a)(2)(H) corrects a citation to the Insurance Code.
There are also nonsubstantive text changes that replace "shall" with "will" or "must," as appropriate; replace "subchapter" and "chapter" with "title," "which" with "that," and "pursuant to" with "under"; and update statutory citations to insert titles of referenced provisions. Multiple unnecessary "the" instances were also removed, "10 percent" was replaced with "10%," "court appointed" was replaced with "court-appointed," and the word "internet" was removed. All such changes were made to follow current department language preferences.
The text of subsection (c)(1)(B) as proposed is not adopted, and the remaining subparagraphs are redesignated as appropriate to reflect this change. Proposed subsection (c)(1)(B) listed a fax number for submitting discount health care program operator registration application forms, but fax is no longer a valid method for these submissions.
SUMMARY OF COMMENTS. TDI did not receive any comments on the proposed amendments.
STATUTORY AUTHORITY. The commissioner adopts amended §19.1602 under Insurance Code §7001.003 and §36.001.
Insurance Code §7001.003 specifies that the commissioner may adopt rules in the manner prescribed by Insurance Code Chapter 36, Subchapter A, as necessary to implement Chapter 7001.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of the department under the Insurance Code and other laws of this state.
§19.1602.Registration Requirement.
(a) Registration Requirement. An applicant for registration to offer a discount health care program in this state is required to submit all of the following to the department:
(1) the initial registration fee of $1,000 as provided in Insurance Code §7001.006, concerning Fees, and §19.802 of this title (relating to Amount of Fees) that is nonrefundable and nontransferable;
(2) a complete application for registration that contains all the information required by Insurance Code §7001.005, concerning Application for Registration and Renewal of Registration, and this section, including:
(A) the applicant's full legal name and federal employer identification number or social security number; daytime telephone number with extension; toll free telephone number; website address; physical address, including city, state, and ZIP code; mailing address, including the city, state, and ZIP code; a contact person's name, including the title, telephone number, and email address; the applicant's agent for service of process, including the physical address, city, state, and ZIP code;
(B) identification of whether the applicant is a corporation, association, limited partnership, limited liability company, limited liability partnership, sole proprietorship, or other legal entity;
(C) any and all assumed names to be used by the applicant in operating a discount health care program. If a filing is required under the Assumed Business or Professional Name Act under the Texas Business and Commerce Code, or any similar statute, the discount health care program operator applicant for registration must provide the department with a copy of the assumed name certificate reflecting the registration of each assumed name used by the discount health care program operator applicant;
(D) a statement generally describing the applicant, its facilities, personnel, and the health care services or products for which a discount will be made available under its discount health care programs;
(E) a copy of the form of all contracts made or to be made between the applicant and any providers or provider networks regarding the provision of health care services or products to members;
(F) a copy of the applicant's charter, certificate of authority, or registration obtained from the Texas Secretary of State's office;
(G) if the applicant is an entity subject to the bank or farm credit administration, a copy of the documentation issued by a federal or Texas state agency authorizing the entity to do business in Texas;
(H) an original surety bond payable to the department for the use and benefit of members in the principal amount of $50,000, as required by Insurance Code §562.103(f)(1), concerning Program Operator Duties, and §19.1603 of this title (relating to Financial Responsibility Requirement), except that an insurer that holds a certificate of authority under Texas Insurance Code Title 6, concerning Organization of Insurers and Related Entities, is not required to maintain the surety bond;
(I) lists of marketers, both entities and individuals, separated as follows:
(i) a list of the marketers, both entities and individuals, authorized to sell or distribute the program operator's programs under the program operator's name; and
(ii) a list of the marketers, both entities and individuals, authorized to private label the program operator's programs;
(J) a certification in writing to the department that its programs comply with the requirements of Insurance Code Chapter 7001, concerning Registration of Discount Health Care Program Operators, and Chapter 562, concerning Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Regarding Discount Health Care Programs;
(K) a list of names, addresses, official positions, and biographical information of:
(i) the individuals responsible for conducting the applicant's affairs;
(ii) each member of the board of directors, board of trustees, executive committee, or other governing board or committee;
(iii) the officers;
(iv) any contracted management company personnel; and
(v) any person owning or having the right to acquire 10% or more of the voting securities of the applicant;
(L) a complete biographical certificate concerning each individual whose biographical information is required under Insurance Code §7001.005(a)(2) and this section, including:
(i) the identification of the individual's relationship to the applicant;
(ii) the name of the applicant;
(iii) the full name; title; social security number; date of birth; mailing address, including the city, state, and ZIP code; telephone number; fax number; and email address of the individual;
(iv) excluding traffic violations and a first DWI offense, a response to the following questions:
(I) whether the individual has any pending misdemeanor or felony charges by indictment, information, or any other instrument filed in Texas or in any other state or by the federal government;
(II) whether the individual has ever been convicted of any misdemeanor or felony offense in Texas, in any other state, or by the federal government;
(III) whether the individual has ever had deferred adjudication on any misdemeanor or felony charge or offense in Texas, in any other state, or by the federal government; and
(IV) whether the person has ever served any period of probation for any misdemeanor or felony offense in Texas, in any other state, or by the federal government;
(v) if the response is positive to any question under clause (iv)(I) - (IV) of this subparagraph, the applicant for registration as a discount health care program operator is required to provide to the department original certified copies of the charging document, indictment, information, or any other charging document, any judgment of conviction, deferred adjudication order, or probation order, and any order terminating probation, community supervision certificate, or parole certificate for each offense. If the court does not maintain the record, the submission of a letter on the court's letterhead will be required. If the arrest did not result in a prosecution, the submission of a records search from the appropriate jurisdiction indicating a final disposition will be required. A statement describing the circumstances leading to the offense and the individual's age at the time of the offense will be required. Letters of recommendation from any person aware of a particular criminal history may be provided;
(vi) a response to the question whether the individual whose biographical information is required under Insurance Code §7001.005(a)(2) and this section, or any entity in which the individual served as a director, officer, shareholder, manager, member, or partner, has ever been the subject of an administrative or legal action filed by the department, or any other insurance department, financial regulatory agency, or of an action filed on behalf of the State of Texas or any other state or by the federal government based on alleged violations of state or federal insurance, securities, or financial regulatory laws that the individual has not previously reported to the department. If the response is positive, the applicant for registration as a discount health care program operator is required to provide to the department a description of the circumstances regarding the administrative or legal action and a copy of any document sent to the individual to commence the administrative or legal action that described the nature of the action;
(vii) a response to the question whether the individual, whose biographical information is required under Insurance Code §7001.005(a)(2) and this section, is indebted to any discount health care program operator, policyholder, insurance or reinsurance company, insurance agency, general agent, managing general agency, premium finance company or court-appointed liquidator for membership refunds, premiums collected, or commissions retained, or have any claims or judgments filed against the individual for membership refunds, retaining premiums, or commissions. If the response is positive, the applicant for registration as a discount health care program operator is required to provide to the department a description of the circumstances regarding the indebtedness, including the name and contact information of the person or entity to whom the individual is indebted;
(viii) a response to the question whether the individual whose biographical information is required under Insurance Code §7001.005(a)(2) and this section has ever had a discount health care program contract cancelled for cause, such as for misrepresentation or misappropriation. If the response is positive, the applicant for registration as a discount health care program operator is required to provide to the department a description of the circumstances regarding the cancellation including the name and contact information of the individual or entity that cancelled the contract;
(ix) a copy of a fingerprint receipt from the state authorized fingerprint collection vendor for each individual that uses the electronic fingerprint process;
(x) an acknowledgment from each individual whose biographical information is required under Insurance Code §7001.005(a)(2) and this section that the fingerprints provided will be used to check criminal history records of the Texas Department of Public Safety and the Federal Bureau of Investigation; and
(xi) compliance with the requirements of Chapter 1, Subchapter D, of this title (relating to Effect of Criminal Conduct) relating to fingerprint requirements for a criminal background check under Insurance Code §7001.008, concerning Criminal Background Check.
(b) Registration Application Forms. The discount health care program operator registration application forms are available at www.tdi.texas.gov/forms/form11dhcpo.html and at the Agent and Adjuster Licensing Office of the Texas Department of Insurance's mailing address.
(c) Submission of Registration Application Forms. The following paragraphs apply to the submission of discount health care program operator registration application forms.
(1) Except for the list of marketers required under Insurance Code §7001.005(a)(4) and this section, a discount health care program operator must submit the registration application forms by:
(A) mail, to the Texas Department of Insurance, Agent and Adjuster Licensing Office's mailing address;
(B) email to TDI-DiscountHealth@tdi.texas.gov;
(C) in other formats that are acceptable to the department including an electronic format; or
(D) more current mailing addresses, email addresses, and telephone numbers for the Agent and Adjuster Licensing Office of the Texas Department of Insurance as made available on the department's website.
(2) A discount health care program operator must submit the list of the marketers in the format found on the department's website via email to TDI-DiscountHealth@tdi.texas.gov.
(3) Assistance with applying for registration as a discount health care program operator is available at the department's Agent and Adjuster Licensing Office Customer Service phone line at 512-676-6500, email address at license@tdi.texas.gov, and the department's website.
(d) The registration is valid for one year from the date issued by the department and is required to be renewed annually.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301174
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587
The commissioner of insurance adopts amendments to 28 TAC §§34.514, 34.613, 34.713, and 34.811, concerning rules for fire extinguishers, fire alarms, fire sprinklers and the storage and sale of fireworks. These amendments are necessary to implement the department's updated fingerprinting process. The amendments add language that states that for a natural person to be eligible to register for specific licenses and permits, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website. Section 34.514 is adopted without changes and §§34.613, 34.713, and 34.811 are adopted with nonsubstantive changes to the proposed text published in the January 6, 2023, issue of the Texas Register (48 TexReg 26). The text of §§34.613, 34.713, and 34.811 will be republished.
REASONED JUSTIFICATION. The amendments are necessary to update the fingerprinting process procedure. The new procedure restricts access to the Texas Department of Public Safety (DPS) fingerprint service code on the website of the Texas Department of Insurance (TDI). Previously, the DPS fingerprint service code could be accessed by anyone who visited TDI's website. The DPS fingerprint service code is now available only to those who request a fingerprint service code through TDI's new online portal. TDI updated the fingerprinting process procedure at the request of DPS. Descriptions of the amended sections follow, organized by subchapter.
SUBCHAPTER E. FIRE EXTINGUISHER RULES.
Section 34.514. Applications. Amended §34.514 adds language that states that for a natural person to be eligible for a Type A, K, or PL license, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. Amended §34.514 also adds similar language for an apprentice permit: the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website. In addition, an amendment to subsection (b)(2) corrects a citation to §34.511, and amended §34.514 updates statutory citations to insert titles of referenced provisions.
SUBCHAPTER F. FIRE ALARM RULES.
Section 34.613. Applications. Amended §34.613 adds language that states that for a natural person to be eligible for any fire alarm license, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. Amended §34.613 also deletes an unnecessary use of the word "the" and changes "25 percent" to "25%" for consistency with current agency style, and it updates a statutory citation to insert the title of the referenced provision. Amended §34.613 also replaces "the Fire Alarm Rules" with "this subchapter" for consistency with the current agency style for referencing rules.
The text of subsection (a)(7) as proposed is not adopted. Proposed subsection (a)(7) states "Commissioner," but the updated style guide mandates the usage of "commissioner." Given this update, adopted subsection (a)(7) will replace "Commissioner" with "commissioner."
SUBCHAPTER G. FIRE SPRINKLER RULES.
Section 34.713. Applications. Amended §34.713 adds language that states that for a natural person to be eligible for a responsible managing employee license, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. Amended §34.713 also changes "70 percent" to "70%" for consistency with current agency style, and it updates statutory citations to follow current agency style.
The text of subsection (a)(7)(A) as proposed is not adopted. Proposed subsection (a)(7)(A) states "state fire marshal's office," but the style guide mandates the usage of "State Fire Marshal's Office." Given the style guide's instruction, adopted subsection (a)(7)(A) will replace "state fire marshal's office" with "State Fire Marshal's Office."
Additionally, the text of subsection (a)(7)(B) as proposed is not adopted. Proposed subsection (a)(7)(B) states "State Fire Marshall's Office," which misspells "Marshal." Given the misspelling, adopted subsection (a)(7)(B) will replace "State Fire Marshall's Office" with "State Fire Marshal's Office."
SUBCHAPTER H. STORAGE AND SALE OF FIREWORKS.
Section 34.811. Requirements, Pyrotechnic Operator License, Pyrotechnic Special Effects Operator License, and Flame Effects Operator License. Amended §34.811 adds language stating that for a natural person to be eligible for a pyrotechnic operator license, pyrotechnic special effects operator license, or flame effects operator license, the natural person must start the application process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. Amended §34.811 also changes "70 percent" to "70%" and "twelve-month" to "12-month" for consistency with current agency style.
Additionally, the text of subsection (g)(1) as proposed is not adopted. Proposed subsection (g) states that "a pyrotechnic operator license will not be issued to any person who fails to meet the requirements of subsection (a) of this section and the following: (1) assisted in conducting at least five permitted or licensed public displays in Texas under the direct supervision of and verified in writing by a pyrotechnic operator licensed in Texas; (2) be at least 21 years of age." Adopted subsection (g)(1) will add an "and" after "licensed in Texas" to provide additional clarification that the conditions listed in subsections (g)(1) and (g)(2) are both required. Therefore, adopted subsection (g)(1) will state "assisted in conducting at least five permitted or licensed public displays in Texas under the direct supervision of and verified in writing by a pyrotechnic operator licensed in Texas; and."
SUMMARY OF COMMENTS. TDI did not receive any comments on the proposed amendments.
SUBCHAPTER E. FIRE EXTINGUISHER RULES
STATUTORY AUTHORITY. The commissioner adopts the amendments to §34.514 under Insurance Code §§6001.051(b), 6001.052(b) and (c), and 36.001.
Insurance Code §6001.051(b) specifies that the commissioner may issue rules the commissioner considers necessary to administer Chapter 6001 through the state fire marshal.
Insurance Code §6001.052(b) specifies that the commissioner will adopt and administer rules determined essentially necessary for the protection and preservation of life and property regarding (1) registration of firms engaged in the business of installing or servicing portable fire extinguishers or planning, certifying, installing, or servicing fixed fire extinguisher systems or hydrostatic testing of fire extinguisher cylinders; (2) the examination and licensing of individuals to install or service portable fire extinguishers and plan, certify, install, or service fixed fire extinguisher systems; and (3) requirements for installing or servicing portable fire extinguishers and planning, certifying, installing, or servicing fixed fire extinguisher systems. Insurance Code §6001.052(c) specifies that the commissioner by rule will prescribe requirements for applications and qualifications for licenses, permits, and certificates issued under Chapter 6001.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of the department under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301175
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587
STATUTORY AUTHORITY. The commissioner adopts the amendments to §34.613 under Insurance Code §§6002.051(b), 6002.052(b), and 36.001.
Insurance Code §6002.051(b) specifies that the commissioner may issue rules the commissioner considers necessary to administer Chapter 6002 through the state fire marshal.
Insurance Code §6002.052(b) specifies that, under rules adopted under Texas Insurance Code §6002.051, the department may create specialized licenses or registration certificates for an organization or individual engaged in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining fire alarm or fire detection devices or systems. The rules must establish appropriate training and qualification standards for each kind of license and certificate.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of the department under the Insurance Code and other laws of this state.
§34.613.Applications.
(a) Approvals and certificates of registration.
(1) Applications for approvals, certificates, and branch office certificates must be submitted on the forms adopted by reference in §34.630 of this title (relating to Application and Renewal Forms) and be accompanied by all fees, documents, and information required by Insurance Code Chapter 6002, concerning Fire Detection and Alarm Device Installation, and this subchapter. An application will not be deemed complete until all required forms, fees, and documents have been received in the State Fire Marshal's Office.
(2) Applications must be signed by the sole proprietor, or by each partner of a partnership, or by an officer of a corporation. For applicants using an assumed name, the application must also be accompanied by evidence of compliance with the Assumed Business or Professional Name Act, Texas Business and Commerce Code Chapter 71. The application must also include written authorization by the applicant permitting the state fire marshal or the state fire marshal's representative to enter, examine, and inspect any premises, building, room, or establishment used by the applicant while engaged in the business to determine compliance with the provisions of Insurance Code Chapter 6002 and this subchapter.
(3) For corporations, the application must also include the name of each shareholder owning more than 25% of the shares issued by the corporation; the corporate taxpayer identification number; the charter number; a copy of the corporate charter of a Texas corporation or, in the case of a foreign corporation, a copy of the Texas certificate of authority to do business; and a copy of the corporation's current franchise tax certificate from the State Comptroller's Office showing it is in active status.
(4) A registered firm must employ at least one full-time licensed individual at each location of a main or branch office.
(5) Insurance is required as follows:
(A) The state fire marshal will not issue a certificate of registration under this subchapter unless the applicant files with the State Fire Marshal's Office evidence of an acceptable general liability insurance policy.
(B) Each registered firm must maintain in force and on file in the State Fire Marshal's Office a certificate of insurance identifying the insured and the exact nature of the business insured. In identifying the named insured, the certificate of insurance must include either an assumed name or the name of the corporation; partners, if any; or sole proprietor, if applicable.
(6) A firm billing a customer for monitoring is engaged in the business of monitoring and must comply with the insurance requirements of this subchapter for a monitoring firm.
(7) Applicants for a certificate of registration who engage in monitoring must provide the specific business locations where monitoring will take place and the name and license number of the fire alarm licensees at each business location. A fire alarm licensee may not serve in this capacity for a registered firm other than the firm applying for a certificate of registration. In addition, the applicants must provide evidence of listing or certification as a central station by a testing laboratory approved by the commissioner and a statement that the monitoring service complies with NFPA 72, as adopted in §34.607 of this title (relating to Adopted Standards).
(8) Applicants for a certificate of registration--single station must provide a statement, signed by the sole proprietor, a partner of a partnership, or by an officer of the corporation, indicating that the firm exclusively engages in the business of planning, certifying, leasing, selling, servicing, installing, monitoring, or maintaining single station devices.
(b) Fire alarm licenses.
(1) To be complete, applications for a license from an employee or agent of a registered firm must be submitted on forms provided by the state fire marshal and be accompanied by all fees, documents, a criminal history report from the Texas Department of Public Safety, and information required by Insurance Code Chapter 6002 and this subchapter. Applications must be signed by the applicant and by a person authorized to sign on behalf of the registered firm. All applicants for any type of license must successfully complete a qualifying test as required in Insurance Code Chapter 6002 and this subchapter as designated by the State Fire Marshal's Office. The qualifying test, given as part of the training for residential fire alarm technician license, must include questions regarding Insurance Code Chapter 6002 and this subchapter. For a natural person to be eligible for any fire alarm license, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. The requesting natural person must submit information necessary to complete the fingerprint service code request, including the natural person's name, natural person's state of residence, natural person's email address, and license type the natural person is applying for.
(2) Applicants for fire alarm technician licenses must:
(A) furnish notification from the National Institute for Certification in Engineering Technologies (NICET) or the Electronic Security Association (ESA), confirming the applicant's successful completion of the test requirements in work elements pertaining to fire alarm systems, as determined by the state fire marshal; or
(B) successfully complete a technical qualifying test as designated by the State Fire Marshal's Office.
(3) Applicants for a fire alarm monitoring technician license must successfully complete a technical qualifying test as designated by the State Fire Marshal's Office, or provide evidence of current registration in Texas as a registered engineer.
(4) Applicants for a residential fire alarm superintendent (single station) license must successfully complete a technical qualifying test as designated by the State Fire Marshal's Office.
(5) Applicants for a residential fire alarm superintendent license must:
(A) furnish notification from NICET or ESA confirming the applicant's successful completion of the test requirements in work elements pertaining to fire alarm systems, as determined by the state fire marshal; or
(B) successfully complete a technical qualifying test as designated by the State Fire Marshal's Office.
(6) Applications for a fire alarm planning superintendent license must be accompanied by one of the following documents as evidence of technical qualifications for a license:
(A) proof of registration in Texas as a professional engineer; or
(B) a copy of NICET's or ESA's notification letter confirming the applicant's successful completion of the test requirements for NICET or ESA certification at Level III for fire alarm systems.
(7) An applicant for a residential fire alarm technician license must provide evidence of the applicant's successful completion of the required residential fire alarm technician training course from a training school approved by the State Fire Marshal's Office.
(c) Instructor and training school approvals.
(1) Instructor approvals. An applicant for approval as an instructor must:
(A) hold a current fire alarm planning superintendent license, residential fire alarm superintendent license, or fire alarm technician license issued by the State Fire Marshal's Office;
(B) submit a completed Instructor Approval Application, Form No. SF247, signed by the applicant, that is accompanied by all fees; and
(C) furnish written documentation of a minimum of three years of experience in fire alarm installation, service, or monitoring of fire alarm systems unless the applicant has held a fire alarm planning superintendent license, residential fire alarm superintendent license, or fire alarm technician license for three or more years.
(2) Training school approvals.
(A) An applicant for approval of a training school must submit a completed Training School Approval Application, Form No. SF 246, to the State Fire Marshal's Office. To be complete, the application must be:
(i) signed by the applicant, the sole proprietor, by each partner of a partnership, or by an officer of a corporation or organization as applicable;
(ii) accompanied by a detailed outline of the proposed subjects to be taught at the training school and the number and location of all training courses to be held within one year following approval of the application; and
(iii) accompanied by all required fees.
(B) After review of the application for approval for a training school, the state fire marshal will approve or deny the application within 60 days following receipt of the materials. A letter of denial will state the specific reasons for the denial. An applicant that is denied approval may reapply at any time by submitting a completed application that includes the changes necessary to address the specific reasons for denial.
(d) Renewal applications.
(1) In order to be complete, renewal applications for certificates, licenses, instructor approvals, and training school approvals must be submitted on the forms adopted by reference in §34.630 of this title and be accompanied by all fees, documents, a criminal history report from the Texas Department of Public Safety, and information required by Insurance Code Chapter 6002 and this subchapter. A complete renewal application deposited with the United States Postal Service is deemed to be timely filed, regardless of actual date of delivery, when its envelope bears a postmark date that is before the expiration of the certificate or license being renewed.
(2) A licensee with an unexpired license who is not employed by a registered firm at the time of the licensee's renewal may renew that license, but the licensee may not engage in any activity for which the license was granted until the licensee is employed and qualified by a registered firm.
(e) Complete applications. The application form for a license, registration, instructor approval, and training school approval must be accompanied by the required fee and must, within 180 days of receipt by the State Fire Marshal's Office of the initial application, be complete and accompanied by all other information required by Insurance Code Chapter 6002 and this subchapter, or a new application must be submitted including all applicable fees.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301178
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587
STATUTORY AUTHORITY. The commissioner adopts the amendments to §34.713 under Insurance Code §§6003.051(b), 6003.052(b), and 36.001.
Insurance Code §6003.051(b) specifies that the commissioner may issue rules the commissioner considers necessary to administer Chapter 6003 through the state fire marshal.
Insurance Code §6003.052(b) specifies that, under rules adopted under Texas Insurance Code §6003.051(b), the department may create a specialized licensing or registration program for fire protection sprinkler system contractors.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of the department under the Insurance Code and other laws of this state.
§34.713.Applications.
(a) Certificates of registration.
(1) Applications for certificates must be submitted on forms provided by the state fire marshal and must be accompanied by all other information required by Insurance Code Chapter 6003, concerning Fire Protection Sprinkler System Service and Installation, and this subchapter. An application will not be deemed complete until all required forms and documents have been received in the State Fire Marshal's Office.
(2) Applications must be signed by the sole proprietor, by each partner of a partnership, or by an officer of a corporation. For corporations, the application must be accompanied by the corporate charter of a Texas corporation or, in the case of a foreign corporation, a copy of the Texas certificate of authority to do business. For applicants using an assumed name, the application must also be accompanied by evidence of compliance with Business and Commerce Code Chapter 71, concerning Assumed Business or Professional Name. The application must also include written authorization by the applicant that permits the state fire marshal or the state fire marshal's representative to enter, examine, and inspect any premises, building, room, or establishment used by the applicant while engaged in the business so the state fire marshal can determine whether the applicant is in compliance with the provisions of Insurance Code Chapter 6003 and this subchapter.
(3) For corporations, the application must also include the corporate taxpayer identification number, the charter number, and a copy of the corporation's current franchise tax certificate from the State Comptroller's Office that shows the corporation is in active status.
(4) An applicant must not designate as its full-time responsible managing employee (RME) a person who is the designated full-time RME of another registered firm.
(5) A registered firm must not conduct any business as a fire protection sprinkler contractor until a full-time RME, as applicable to the business conducted, is employed. An individual with an RME-General Inspector's license does not constitute compliance with the requirements of this subsection.
(6) A certificate of registration may not be renewed unless the firm has at least one licensed RME as a full-time employee before the expiration of the certificate of registration to be renewed. If an applicant for renewal does not have an RME as a full-time employee as a result of death or disassociation of an RME within 30 days preceding the expiration of the certificate of registration, the renewal applicant must inform the license section of the State Fire Marshal's Office of the employment of a full-time RME before the certificate of registration will be renewed.
(7) Insurance required.
(A) The state fire marshal must not issue a certificate of registration under this subchapter unless the applicant files with the State Fire Marshal's Office a proof of liability insurance. The insurance must include products and completed operations coverage.
(B) Each registered firm must maintain in force and on file in the State Fire Marshal's Office the certificate of insurance identifying the insured and the exact nature of the business insured. In identifying the named insured, the certificate of insurance must include either an assumed name or the name of the corporation; partners, if any; or sole proprietor, as applicable. Failure to do so will be cause for administrative action.
(C) Evidence of public liability insurance, as required by Insurance Code §6003.152, concerning Required Insurance Coverage for Registration Certificate, must be in the form of a certificate of insurance executed by an insurer authorized to do business in this state, or a certificate of insurance for surplus lines coverage, secured in compliance with Insurance Code Chapter 981, concerning Surplus Lines Insurance, as contemplated by Insurance Code §6003.152(c).
(b) Responsible managing employee licenses.
(1) Original and renewal applications for a license from an employee of a firm engaged in the business must be submitted on forms provided by the state fire marshal, along with a criminal history report from the Texas Department of Public Safety and accompanied by all other information required by Insurance Code Chapter 6003 and this subchapter. For a natural person to be eligible for a responsible managing employee license, the natural person must start the application or registration process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. The requesting natural person must submit information necessary to complete the fingerprint service code request, including the natural person's name, natural person's state of residence, natural person's email address, and license type the natural person is applying for.
(2) The following documents must accompany the application as evidence of technical qualifications for a license:
(A) RME-General:
(i) proof of current registration in Texas as a professional engineer; or
(ii) a copy of the NICET notification letter confirming the applicant's successful completion of the test requirements for certification at Level III for water-based fire protection systems layout.
(B) RME-Dwelling:
(i) proof of current registration in Texas as a professional engineer; or
(ii) a copy of the NICET notification letter confirming the applicant's successful completion of the test requirements for certification at Level II for fire protection automatic sprinkler system layout and evidence of current employment by a registered fire sprinkler contractor.
(C) RME-Underground Fire Main:
(i) proof of current registration in Texas as a professional engineer; or
(ii) a copy of the notification letter confirming at least a 70% grade on the test covering underground fire mains for fire protection sprinkler systems, administered by the State Fire Marshal's Office or an outsource testing service.
(D) RME-General Inspector:
(i) a copy of the NICET notification letter confirming the applicant's successful completion of the examination requirements for certification at Level II for Inspection and Testing of Water-Based Systems; and
(ii) evidence of current employment by a registered fire protection sprinkler system contractor.
(c) Complete applications. The application form for a license or registration must be accompanied by the required fee and must, within 180 days of receipt by the department of the initial application, be complete and accompanied by all other information required by Insurance Code Chapter 6003 and this subchapter, or a new application must be submitted including all applicable fees.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301179
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587
STATUTORY AUTHORITY. The commissioner adopts the amendments to §34.811 under Occupations Code §2154.051 and §2154.052 and Insurance Code §36.001.
Occupations Code §2154.051 authorizes the commissioner to determine reasonable criteria and qualifications for licenses.
Occupations Code §2154.052 provides that the commissioner may issue rules to administer Chapter 2154; that the commissioner will adopt and the state fire marshal will administer rules the commissioner considers necessary for the protection, safety, and preservation of life and property; and that the commissioner will adopt rules for applications for licenses.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
§34.811.Requirements, Pyrotechnic Operator License, Pyrotechnic Special Effects Operator License, and Flame Effects Operator License.
(a) Applicants for a pyrotechnic operator license, pyrotechnic special effects operator license, or flame effects operator license must take a written test and obtain at least a passing grade of 70%. Written tests may be supplemented by practical tests or demonstrations deemed necessary to determine the applicant's knowledge and ability. The content, frequency, and location of the tests must be designated by the state fire marshal.
(b) Examinees who fail may file a retest application, accompanied by the required fee.
(c) An applicant may only schedule each type of test three times within a 12-month period.
(d) An applicant for a license must complete and submit all application requirements within one year of the successful completion of any test required for a license; otherwise, the test is voided and the individual will have to pass the test again.
(e) The state fire marshal may waive a test requirement for an applicant with a valid license from another state having license requirements substantially equivalent to those of this state.
(f) A licensee whose license has been expired for two years or longer and makes application for a new license must pass another test.
(g) A pyrotechnic operator license will not be issued to any person who fails to meet the requirements of subsection (a) of this section and the following:
(1) assisted in conducting at least five permitted or licensed public displays in Texas under the direct supervision of and verified in writing by a pyrotechnic operator licensed in Texas; and
(2) be at least 21 years of age.
(h) The application must be accompanied by a criminal history report from the Texas Department of Public Safety. For a natural person to be eligible for a pyrotechnic operator license, pyrotechnic special effects operator license, or flame effects operator license, the natural person must start the application process by submitting a formal request for a fingerprint service code by completing the fingerprinting process information required on the department's website at www.tdi.texas.gov/fire/fingerprinting-process.html. The requesting natural person must submit information necessary to complete the fingerprint service code request, including the natural person's name, natural person's state of residence, natural person's email address, and license type the natural person is applying for.
(i) A licensee must be able to show proof of licensure while engaged in the activities of the business.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 27, 2023.
TRD-202301181
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: April 16, 2023
Proposal publication date: January 6, 2023
For further information, please call: (512) 676-6587