28 TAC §§34.1001-34.1004
The Texas Department of Insurance proposes new §§34.1001
through 34.1004 under new Subchapter J concerning state fire marshal approval,
through the commissioner of insurance, of residential stovetop fire suppression
devices for purposes of eligibility for certain premium reductions. This proposal
is necessary to implement legislation enacted by the 76th Legislature in Senate
Bill 139. Senate Bill 139 amended Subchapter C, Chapter 5, by adding Article
5.33C to the Insurance Code, which allows insurers to offer an insurance premium
discount for a correctly installed residential stovetop fire suppression device,
as defined by the statute, that has been approved by the state fire marshal
through the commissioner. Amendments to the Texas Personal Lines Manual are
currently pending before the commissioner regarding provisions for optional
credits for Homeowners and Dwelling policies for stovetop fire suppression
devices in conformity with the legislation. The proposed subchapter applies
only to residential stovetop fire suppression devices in use on or after January
1, 2000. The new legislation provides that a policyholder of a single-family
or multifamily dwelling, apartment owner, or condominium owner is eligible
for a premium reduction for homeowners insurance coverage or fire or commercial
fire insurance coverage if the policyholder has correctly installed on the
covered property a stovetop fire suppression device that has been approved
by the state fire marshal through the commissioner. Because the legislation
contemplates that it is the policyholder who installs the device and that
the discount is granted for "a correctly installed and functioning stovetop
fire suppression device," the authority of the state fire marshal is limited
solely to approval of the device to qualify for an optional premium discount
on certain homeowners, fire, and commercial fire insurance premiums. The current
statute and rules relating to fire extinguishers (Insurance Code Article 5.43-1;
28 TAC Chapter 34, Subchapters D and E) regulate, among other things, the
leasing, selling, installing, and servicing of fire extinguishers, and prohibit
the sale or use of all fire extinguishers, systems, and equipment that are
not labeled or listed by an approved testing laboratory pursuant to nationally
recognized or laboratory developed standards. As with that statute and rules,
the state fire marshal believes that it is the most appropriate and efficient
method, in approving stovetop fire suppression devices for purposes of the
premium discount, to do so with reference to product certification by nationally
recognized testing facilities and methods. In developing this proposal, the
state fire marshal's office reviewed existing recognized product performance
standards developed by Underwriters Laboratories (UL), the American National
Standards Institute (ANSI), the American Society for Testing and Materials
(ASTM), Factory Mutual Research Corporation (FMRC) and the National Fire Protection
Association (NFPA) in determining appropriate national testing and performance
standards on which to base state fire marshal approval as indicated in the
legislation. Currently, there is no single recognized national standard for
residential stovetop fire suppression devices. The state fire marshal, therefore,
proposes to utilize a combination of standards and test criteria developed
by recognized product performance standards organizations that the state fire
marshal believes would best demonstrate the integrity of the product, provide
a minimum performance capability, and afford the user a minimum level of safety
in safeguarding lives and property. Proposed §34.1001 states the purpose
and application of proposed Subchapter J, and provides for the severability
of the provisions of the subchapter. Proposed §34.1002 sets forth the
definitions of the new subchapter which incorporates some of the definitions
from the new legislation and which sets forth the requirements for an approved
testing laboratory and a product performance standard. Proposed §34.1003
outlines the specific product performance standards from UL, adopted by reference
by the commissioner, and where to access this information. Proposed §34.1004
provides the criteria necessary to obtain approval by the state fire marshal
for residential stovetop fire suppression devices. It further requires that
each device contain a certification mark of the approved testing laboratory
and that each device sold must include a manual, as submitted to the approved
testing laboratory, with the specifically identified instruction topics of
installation, operation, recharge, inspection, and maintenance.
Consideration of the proposal will occur in a public hearing under Docket
Number 2438 scheduled for 10:00 a.m. on February 8, 2000, in Room 100 of the
William P. Hobby, Jr. State Office Building, 333 Guadalupe Street in Austin,
Texas.
G. Mike Davis, state fire marshal, has determined that for each year of
the first five years the proposed sections are in effect, there will be no
fiscal impact to state government. There will be no fiscal implications for
local government as a result of enforcing or administering the new standards,
and no effect on the local economy or local employment.
Mr. Davis also has determined that for each year of the first five years
that the new sections are in effect, the anticipated public benefit from enforcing
and administering these sections is an efficient and consistent approval process
for the regulation of residential stovetop fire suppression devices for purposes
of the premium discount allowed under Insurance Code Article 5.33C. Additionally,
the public will benefit from the adoption and enforcement of minimum product
performance and testing standards. The effect of the proposed sections on
large, small, and micro-businesses results mostly, if not entirely, from the
legislative enactment of Senate Bill 139, 76th Legislature, which permits
a reduction in premium for homeowners insurance coverage or fire or commercial
fire insurance coverage to policyholders who correctly install, on the covered
property, functioning residential stovetop fire suppression devices that have
been approved by the state fire marshal. The cost of compliance with this
proposed rule is the cost to manufacturers to have their product tested by
an approved testing laboratory to the specified performance standards. The
total estimated cost for this testing is dependent on the complexity of a
specific suppression device and will be an equivalent cost, depending on the
equivalency of the devices, for all persons and companies, including large,
small, and micro-businesses, who engage in the business of manufacturing residential
stovetop fire suppression devices. Based on the state fire marshal's experience
with testing laboratories, it is difficult to estimate with any specificity
the cost involved because of the complex differences with types of systems,
but it is estimated that a manufacturer developing this product may expend
a minimum of $100,000 to meet the performance standards. However, any manufacturer
who has already complied with these standards will have no measurable additional
costs. It is also anticipated that any increase in costs as a result of the
proposal will be passed on to consumers and will ultimately be recouped by
the manufacturer. The proposed new sections may not be waived for manufacturers
of residential stovetop fire suppression devices who qualify as a small or
micro-business because the statute mandates approval of these devices in order
for them to be eligible for the premium discount. In addition, lesser standards
would neither be legal nor feasible as the statute contemplates that the devices
be adequate to protect against hazards.
Comments on the proposal to be considered by the department must be submitted
by 5 p.m. on February 7, 2000, to Lynda H. Nesenholtz, General Counsel and
Chief Clerk, Texas Department of Insurance, P.O. Box 149104, Mail Code 113-2A,
Austin, Texas 78714-9104. An additional copy of the comments must be submitted
to G. Mike Davis, State Fire Marshal, Texas Department of Insurance, P.O.
Box 149221, Mail Code 108-FM, Austin, Texas 78714-9221.
The new sections are proposed pursuant to the Insurance Code
Article 5.33C and the Insurance Code §36.001 (former Article 1.03A).
The 76th Legislature enacted Senate Bill 139, which amended Subchapter C,
Chapter 5, Insurance Code by adding Article 5.33C. Article 5.33C provides
that a policyholder of a single-family or multifamily dwelling, apartment
owner, or condominium owner is eligible for a premium reduction for homeowners
insurance coverage or fire or commercial fire insurance coverage if the policyholder
has correctly installed on the covered property a stovetop fire suppression
device that has been approved by the state fire marshal through the commissioner
and permits the commissioner to adopt rules necessary for the implementation
of the article. Insurance Code, §36.001 (former Article 1.03A) authorizes
the Commissioner of Insurance to adopt rules for the conduct and execution
of the duties and functions of the Texas Department of Insurance only as authorized
by a statute.
The following statutes are affected by the proposed sections: §§34.1001
- 34.1004 Insurance Code, Article 5.33C
§34.1001.Purpose and Application.
(a)
The purpose of this subchapter is to administer the law
set forth in the Insurance Code, Article 5.33C, regarding the approval by
the state fire marshal, through the commissioner of insurance, of residential
stovetop fire suppression devices installed so as to qualify for an optional
premium discount on certain homeowners, fire, and commercial fire insurance
premiums.
(b)
The sections of this subchapter shall be known as and may
be cited as the residential stovetop fire suppression device rules.
(c)
This subchapter applies only to residential stovetop fire
suppression devices in use on or after January 1, 2000.
(d)
If any provision of this subchapter or the application
thereof to any person or circumstance is held invalid for any reason, the
invalidity shall not affect the other provisions or any other application
of this subchapter which can be given effect without the invalid provisions
or application. To this end, all provisions of this subchapter are declared
to be severable.
§34.1002.Definitions.
The following words and terms, when used in this subchapter, shall
have the following meanings.
(1)
Approved testing laboratory - An organization, which lists
equipment and appurtenances for use in compliance with a product performance
standard, if it is currently accredited as a Nationally Recognized Testing
Laboratory (NRTL) by the U.S. Department of Labor, Occupational Safety and
Health Administration (OSHA) in accordance with the requirements of 29 CFR
1910.7 for that specific product, category of products or product performance
standard.
(2)
Certification mark - The mark owned, controlled, and
registered by an approved testing laboratory and used to identify approval
or listing of a product.
(3)
Commissioner - The Commissioner of Insurance.
(4)
Product performance standard - A standard for the
composition and testing of a stovetop fire suppression device, to verify its
scope of application, installation criteria, and minimum performance in accordance
with its intended purpose.
(5)
Stovetop fire suppression device - A device or assembly
of devices that is mounted to the vent hood over a residential stovetop cooking
surface and that protects against one or more hazards through suppressing
or extinguishing fires.
§34.1003.Product Performance Standards.
The commissioner adopts by reference, as product performance standards,
the following copyrighted documents, recommendations and appendices concerning
residential stovetop fire suppression devices. The standards are published
by and are available from Underwriters Laboratories, Incorporated (UL), 333
Pfingston Road, Northbrook, Illinois 60062-2096.
(1)
UL 1254 "Standard for Pre-engineered Dry Chemical Extinguishing
System Units."
(2)
UL 299 "Dry Chemical Fire Extinguishers."
(3)
UL Subject 300A "Outline of Investigation for Extinguishing
System Units for Residential Range Top Cooking Surfaces."
§34.1004.Approval.
A stovetop fire suppression device will be considered approved by the
State Fire Marshal, for the purpose of this subchapter, if:
(1)
It has been tested by an approved testing laboratory and,
at the time it was tested, meets the applicable approval criteria of the most
recent edition of the following:
(A)
UL 1254 "Standard for Pre-engineered Dry Chemical Extinguishing
System Units" or UL 299 "Dry Chemical Fire Extinguishers", and
(B)
UL Subject 300A "Outline of Investigation for Extinguishing
System Units for Residential Range Top Cooking Surfaces."
(2)
It carries the certification mark of the approved
testing laboratory; and
(3)
Installation, operation, recharge, inspection, and
maintenance instruction manual(s), as submitted to the approved testing laboratory,
are provided with each device sold.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
December 27, 1999.
TRD-9909042
Lynda Nesenholtz
General Counsel and Chief Clerk
Texas Department of Insurance
Earliest possible date of adoption: February 6, 2000
For further information, please call: (512) 463-6327