HBA-DMD, NIK H.B. 3189 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3189 By: Driver Public Safety 7/30/1999 Enrolled BACKGROUND AND PURPOSE Licensed security firms often install standard residential burglar alarm systems, equipped with three button keypads that include police, fire, and medical "panic buttons." Under Article 5.43-2 (Fire Detection and Alarm Devices), Insurance Code, if a licensed security firm activates the fire alarm button on the keypad, the firm must also obtain a fire alarm license. To avoid this requirement, security firms sometimes disable the fire button. Homeowners who are unaware that the button has been disabled might erroneously believe they have summoned firefighters by pushing the button. H.B. 3189 exempts installers licensed under the Private Investigators and Private Security Agencies Act from the fire alarm licensing requirements when installing a fire alarm panic button in a one or two family dwelling, if the fire alarm signal is monitored by a registered fire alarm firm and the alarm is not initiated by a fire or smoke detection device. This bill also makes prohibitions relating to a political subdivision dealing with fire alarm or fire detection devices or systems. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 3(b), Article 5.43-2, Insurance Code, to include among the enumerated persons to whom the licensing provisions of this article is prohibited from applying, a person or organization licensed to install or service burglar alarms under the Private Investigators and Private Security Agencies Act (Article 4413(29bb), V.T.C.S.) that provides and installs in a single-family or two-family residence a combination keypad that includes a panic button to initiate a fire alarm signal if the fire alarm signal is monitored by a fire alarm firm registered under this article (Fire Detection and Alarm Devices), and is not initiated by any fire or smoke detection device. SECTION 2. Amends Section 7, Article 5.43-2, Insurance Code, as follows: (b) Prohibits a political subdivision from offering residential alarm system sales, service, installation, or monitoring unless it has been providing monitoring services to residences within the boundaries of the political subdivision as of September 1, 1999. Prohibits any fee charged by the political subdivision from exceeding the cost of the monitoring. (c) Sets forth the authority of a political subdivision pertaining to alarm systems. (d) Provides that the limitations of Subsections (b) do not apply to a political subdivision in counties with certain populations or in a political subdivision where monitoring is not otherwise provided or available. (e) Defines "monitoring" for the purposes of Subsections (b), (c), and (d). SECTION 3. Amends Subsections (d), (e), and (f), Section 13, Private Investigators and Private Security Agencies Act (Article 4413(29bb), V.T.C.S.), as added by H.B. No. 2617, Acts of the 76th Legislature, Regular Session, 1999, as follows: (d) Prohibits a political subdivision from offering residential alarm system sales, service, installation, or monitoring unless it has been providing monitoring services to residences within the boundaries of the political subdivision as of September 1, 1999, except as provided by Subsection (e). Prohibits any fee charged by the political subdivision from exceeding the cost of the monitoring. (e) Sets forth the authority of a political subdivision pertaining to alarm systems. (f) Provides that the limitations of Subsection (d) do not apply to a political subdivision in counties with certain populations or in a political subdivision where monitoring is not otherwise provided or available. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.