ASSEMBLY, No. 426
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblymen KELLY and DiGAETANO
An Act concerning fire protection warranty programs and amending P.L.1983, c.383.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1983, c.383 (C.52:27D-198) is amended to read as follows:
7. a. The commissioner shall promulgate, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), and after consulting with the fire safety commission, regulations to insure the maintenance and operation of buildings and equipment in such a manner as will provide a reasonable degree of safety from fire and explosion.
Regulations promulgated pursuant to this section shall include a uniform fire safety code primarily based on the standards established by the Life Safety Code (National Fire Protection Association 101) and any other fire codes of the National Fire Protection Association and the Building Officials and Code Administrators International (BOCA) Basic Fire Prevention Code, both of which may be adopted by reference. The regulations may include modifications and amendments the commissioner finds necessary.
b. The code promulgated pursuant to this section shall include the requirements for fire detection and suppression systems, elevator systems, emergency egresses and protective equipment reasonably necessary to the fire safety of the occupants or intended occupants of new or existing buildings subject to this act, including but not limited to electrical fire hazards, maintenance of fire protection systems and equipment, fire evacuation plans and fire drills, and all components of building egress. In addition, the regulations issued and promulgated pursuant to this section which are applicable to new or existing buildings shall include, but not be limited to fire suppression systems, built-in fire fighting equipment, fire resistance ratings, smoke control systems, fire detection systems, and fire alarm systems including fire service connections.
c. When promulgating regulations, the commissioner shall take into account the varying degrees of fire safety provided by the different types of construction of existing buildings and the varying degrees of hazard associated with the different types and intensity of uses in existing buildings. When preparing regulations which require the installation of fire safety equipment and devices, the commissioner shall consult with the fire safety commission and shall take into account, to the greatest extent prudent, the economic consequences of the regulations and shall define different use groups and levels of hazard within more general use groups, making corresponding distinctions in fire safety requirements for these different uses and levels of hazard. The commissioner shall also take into account the desirability of maintaining the integrity of historical structures to the extent that it is possible to do so without endangering human life and safety. The regulations established pursuant to this subsection shall apply to secured vacant buildings only to the extent necessary to eliminate hazards affecting adjoining properties.
d. Except as otherwise provided in this act, including rules and regulations promulgated hereunder, all installations of equipment and other alterations to existing buildings shall be made in accordance with the technical standards and administrative procedures established by the commissioner pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.) and shall be subject to plan review and inspection by the local construction and subcode officials having jurisdiction over the building, who shall enforce the regulations established pursuant to this act applicable to the installation or other alteration along with the regulations established pursuant to the "State Uniform Construction Code Act."
e. The commissioner shall, by regulation, establish standards, procedures and fees for the certification of persons engaged in the business of installing fire suppression systems, for the warranting of those systems, and for the establishment, funding and operation of a warranty security program. A fire suppression system installed in a building subject to this act shall be warranted in accordance with those standards and procedures, shall be required to be covered by the warranty security program, and shall be installed by a person certified in accordance with those standards and procedures.
(1) The commissioner is authorized and directed to approve alternate fire suppression system warranty security programs which provide for payment of claims against sellers of these systems for defects covered under the warranty provided under this subsection and financial security adequate to cover the total amount of claims that may be reasonably anticipated against participating sellers at least equivalent to that provided by the warranty program established by regulation. Any person desiring approval of a fire suppression system warranty security program shall make application to the commissioner in such form and manner as he shall prescribe. The commissioner may establish and charge reasonable fees to cover the costs incurred in reviewing and approving such applications. The commissioner shall review each application and conduct any investigation he deems necessary with respect to an application. The commissioner may, and if an applicant so requests, he shall hold a hearing on an application in accordance with the provisions of the Administrative Procedures Act, P.L.1968, c.410 (C.52:14B-1 et seq.) applicable to contested cases. If the commissioner finds that an alternate fire suppression system warranty security program provides coverage and financial security at least equivalent to the warranty security program established by regulation, he shall approve the program. The commissioner may revoke or suspend the approval for such a program after a hearing in accordance with the same procedures applicable to hearings on applications if he finds that the program no longer provides coverage and financial security equivalent to the fire suppression warranty security fund established pursuant to this section. The commissioner may require such information as deemed necessary to effectuate the purposes of this act from the individual seeking alternate program approval. The commissioner shall make available copies of information on any approved alternate program, upon payment of fees sufficient to defray the cost of preparing and distributing those copies, to any person requesting them.
(2) No payment shall be made from the fire suppression system warranty security program established by regulation pursuant to this section for any defect in a fire suppression system warranted under an alternate fire suppression system warranty security program approved by the commissioner. The seller of any fire suppression system warranted under an approved alternate fire suppression system warranty security program shall give written notice to the owner of the premises, and to any subsequent owner during the period in which the warranty is in effect, that the approved alternate fire suppression system warranty security program has exclusive responsibility for warranting that system and that no claim may be brought against the fire suppression system warranty security program for defects under warranty.
(cf: P.L.1983, c.383, s.7.)
2. This act shall take effect immediately.
STATEMENT
This bill would permit sellers of fire suppression systems to provide their own alternate fire suppression system warranty security program in lieu of the warranty program established by the commissioner pursuant to section 7 of P.L.1983, c.383 (C.52:27D-198). These alternate programs would be similar to those allowed under the "New Home Warranty and Builder's Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.). These programs are required to provide the same coverage and financial security of the warranty program established by the State, and allow the sellers of fire suppression systems to lower their costs of doing business if they are able to self-insure at a lower cost. The bill requires that Commissioner of Community Affairs approve all alternate warranty plans, keep records on the applicants, and make available those records to the public for inspection. In addition, a seller of fire suppression systems warranted under an alternate plan must disclose that fact to a purchaser and a subsequent purchaser while the system is under warranty. The purchaser of a system warranted under an alternate program will not be permitted to make a claim for defects against the plan established by the commissioner, but will be limited to making all claims against the approved alternate plan.
Permits sellers of fire protection systems to participate in alternate warranty program.