The Texas Department of Insurance proposes an amendment to §34.303, concerning standards for State Fire Marshal inspections of buildings and premises in certain geographic areas of Texas. The proposed amendment is necessary to update the currently adopted Life Safety Code, which is used by the State Fire Marshal as standards for inspection of buildings and premises pursuant to Government Code §417.008. Section 417.008 authorizes the State Fire Marshal to enter, upon the complaint of any person, any building or premises in the state at any reasonable time to examine the structure for certain dangerous conditions. The Government Code §417.008 authorizes the Commissioner to adopt by rule any appropriate standard developed by a nationally recognized standards-making association under which the State Fire Marshal may enforce §417.008. The standards adopted by rule do not apply in a geographic area under the jurisdiction of a local government that has adopted fire protection ordinances that apply in the geographic area. Additionally, the Government Code §417.005 authorizes the Commissioner, after consulting with the State Fire Marshal, to adopt necessary rules to guide the State Fire Marshal and fire and arson investigators commissioned by the State Fire Marshal in the investigation of arson, fire, and suspected arson and in the performance of other duties for the Commissioner. Section 34.303, which adopts by reference certain standards and recommendations of the National Fire Protection Association (NFPA), is amended to update the currently adopted 2006 Life Safety Code to the 2009 version. The adoption of the most recent Life Safety Code is necessary because as the technology for fire protection and prevention develops, the minimum standards of inspection also change. The NFPA is a nationally recognized standards-making association that classifies the most recent Life Safety Code as the minimum standards for fire protection and prevention, and as such, these standards also constitute the minimum standards for inspection for potential fire dangers. This results in better protection of the public from fire by the application of the most recent standards and recommendations for inspection. Additionally, other units of government in Texas are adopting these standards, and uniformity of standards enables both the fire protection industry and the public to know what standards are applicable in all jurisdictions. The NFPA adopted changes to the 2006 standards to: (i) add provisions relating to air traffic control towers, electrically controlled egress doors, certain horizontal sliding doors, elevator lobby access door locking, door inspection and maintenance, emergency evacuations and escape devices and systems, the placement and usage of alcohol-based hand sanitizer in educational and day care settings, and door locking in settings where occupants need specialized protection; (ii) standardize the usage of certain technical terms, including stories in height, finished ground level, grade plane, basement, and level of exit discharge; (iii) revise the situations in which public address systems are acceptable for occupant alarm notification; and (iv) amend provisions relating to fire curtains, patient sleeping room windows in health care settings, and sprinkler requirements in high-rise health care settings. As provided in §417.008(e) of the Government Code, these proposed changes in standards do not apply in a geographic area under the jurisdiction of a local government that has adopted fire protection ordinances that apply in the geographic area.

FISCAL NOTE. Paul Maldonado, State Fire Marshal, has determined that for each year of the first five years that the proposed amendment will be in effect, there will be no fiscal implications to state or local government as a result of the enforcement or administration of the proposal. There will be no measurable effect on local employment or the local economy as a result of the proposal.

PUBLIC BENEFIT/COST NOTE. Mr. Maldonado also has determined that for each year of the first five years the proposed section is in effect, the anticipated public benefit as a result of the proposal is the employment of the most recent standards of inspection of buildings and premises in the state in order to examine whether conditions exist that are dangerous or are liable to cause or promote fire or create danger for fire fighters, occupants, or buildings or structures. This means that inspections conducted by the State Fire Marshal in accordance with these most recent nationally recognized standards for detection of potential fire dangers will result in individual citizens, fire fighters, and buildings and structures being better protected. In order to properly protect life and property, it is necessary that the latest current nationally recognized standards for inspection of buildings and premises be utilized. This is consistent with the Government Code §417.008(e) which authorizes the adoption of "any appropriate standard developed by a nationally recognized standards-making association. . . ." but also provides that the adopted standards do not apply in a geographic area under the jurisdiction of a local government that has adopted fire protection ordinances that apply in the geographic area. There will be nominal costs to persons and entities required to purchase the updated standards. The estimated cost to purchase the proposed updated Life Safety Code is approximately $82.50 and will be the same cost for all persons and entities. Any other costs that result from compliance with the updated standards is the result of the legislative enactment of the Government Code §417.008 which imposes responsibility upon the State Fire Marshal to enter and inspect buildings and premises in the state in order to examine whether conditions exist that are dangerous or are liable to cause or promote fire or create danger for fire fighters, occupants, or buildings or structures.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL AND MICRO BUSINESSES. The Government Code §2006.002(c) requires that if a proposed rule may have an economic impact on small businesses, state agencies must prepare as part of the rulemaking process an economic impact statement that assesses the potential impact of the proposed rule on small businesses and a regulatory flexibility analysis that considers alternative methods of achieving the purpose of the rule. The Government Code §2006.001(a)(2) defines "small business" as a legal entity, including a corporation, partnership, or sole proprietorship, that is formed for the purpose of making a profit, is independently owned and operated, and has fewer than 100 employees or less than $6 million in annual gross receipts. The Government Code §2006.001(a)(1) defines "micro business" similarly to "small business" but specifies that such a business may not have more than 20 employees. The Government Code §2006.002(f) requires a state agency to adopt provisions concerning micro businesses that are uniform with those provisions outlined in the Government Code §2006.002(b) - (d) for small businesses.

This proposal specifies minimum fire and related hazard safety requirements for structures and buildings in Texas. All small or micro businesses in Texas will be required to comply with the proposed requirement. The cost analysis in the Public Benefit/Cost Note part of this proposal is also applicable to these small and micro businesses. The estimated cost for the purchase of the 2009 Life Safety Code from the NFPA is $82.50. Any other costs that result to small and micro businesses from compliance with the updated standards is the result of the legislative enactment of the Government Code §417.008 which imposes responsibility upon the State Fire Marshal to enter and inspect buildings and premises in the state in order to examine whether conditions exist that are dangerous or are liable to cause or promote fire or create danger for fire fighters, occupants, or buildings or structures.

As required by the Government Code §2006.002(c), the Department has determined that the estimated costs of purchasing the 2009 Life Safety Code are nominal and will likely not have an adverse economic impact on small or micro businesses that are required to comply with this proposal. However, in the event that the proposal does have an adverse economic effect on small or micro-businesses that are required to comply with the proposal, the proposal does not require the statutorily mandated regulatory flexibility analysis specified by the Government Code §2006.002(c)(2). Section 2006.002(c)(2) requires that a state agency, before adopting a rule that may have an adverse economic effect on small businesses, prepare a regulatory flexibility analysis that includes the agency's consideration of alternative methods of achieving the purpose of the proposed rule. Section 2006.002(c-1) of the Government Code requires that the regulatory flexibility analysis "consider, if consistent with the health, safety, and environmental and economic welfare of the state, using regulatory methods that will accomplish the objectives of applicable rules while minimizing adverse impacts on small businesses." Therefore, an agency is not required to consider alternatives that, while possibly minimizing adverse impacts on small and micro businesses, would not be protective of the health, safety, and environmental and economic welfare of the state.

The purpose of the statute authorizing this proposal, the Government Code §417.008, is to ensure compliance with the most recent fire and related hazards standards of safety for the purpose of protecting life and property in this state. The proposed amendment establishes the most recent Life Safety Code as a minimum standard of compliance for buildings and structures.

The purpose of this proposal is to protect the health and safety of the fire fighters, individual citizens, and buildings and structures of Texas through the adoption of safety standards. In order to protect life and property in this state, it is necessary that all businesses, regardless of size, comply with the minimum safety requirements. The requirements in this proposal are consistent with the Government Code §417.008 which specifies that on the complaint of any person, the State Fire Marshal is entitled to enter any building or premises in Texas at any reasonable time for the purpose of inspection for dangerous conditions.

Therefore, the Department has determined in accordance with §2006.002(c-1) of the Government Code that because the purpose of this proposal and the authorizing statute, Government Code §417.008, is to protect the safety of life and property in this state, there are no regulatory alternatives to the requirements in this proposal that will sufficiently protect the safety of people, buildings and structures in this state.

TAKINGS IMPACT ASSESSMENT. The Department has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking or require a takings impact assessment under the Government Code §2007.043.

REQUEST FOR PUBLIC COMMENT. To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on September 21, 2009, to Gene C. Jarmon, General Counsel & Chief Clerk, Mail Code 1132A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comments must be submitted simultaneously to Paul Maldonado, State Fire Marshal, Mail Code 108-FM, Texas Department of Insurance, P.O. Box 149221, Austin, Texas 78714-9221. Any request for a public hearing should be submitted separately to the Office of the Chief Clerk before the close of the public comment period. If a hearing is held, written and oral comments presented at the hearing will be considered.

STATUTORY AUTHORITY. The amendment is proposed pursuant to the Government Code §417.008 and §417.005 and the Insurance Code §36.001. The Government Code §417.008 authorizes the Commissioner to adopt by rule any appropriate standard developed by a nationally recognized standards-making association under which the State Fire Marshal may enforce §417.008, relating to the State Fire Marshal's right of entry and examination and correction of dangerous conditions; the standards adopted by rule do not apply in a geographic area under the jurisdiction of a local government that has adopted fire protection ordinances that apply in the geographic area. The Government Code §417.005 authorizes the Commissioner, after consulting with the State Fire Marshal, to adopt necessary rules to guide the State Fire Marshal and fire and arson investigators commissioned by the State Fire Marshal in the investigation of arson, fire, and suspected arson and in the performance of other duties for the Commissioner. The Insurance Code §36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

CROSS REFERENCE TO STATUTE. The following statutes are affected by this proposal: Government Code §417.008