OAR 837-020-0077: Fire Safety Inspections and Records Audits

(1) The State Fire Marshal will conduct an annual safety inspection of all nonretail facilities licensed by the State Fire Marshal dispensing Class 1 flammable liquids to determine if the facility is operating in compliance with the provisions of ORS 480.310 to 480.385 or of any applicable rule adopted by the State Fire Marshal. (2) The State Fire Marshal, under ORS 480.375 (4), may conduct safety inspections more frequently for, but not limited to, the following reasons: (a) It is believed the facility may be out of compliance with the requirements; (b) To verify a violation that was ordered on a Notice and Order of Correction has been abated; (c) If the State Fire Marshal receives a complaint about the safety or condition of the facility; (d) If it is necessary to protect public safety. (3) The State Fire Marshal is not required to provide advance notification of the annual safety inspection or any other safety inspection. (4) Advance notice may be provided in certain circumstances as determined by the State Fire Marshal. (5) The inspection will verify the facility is in compliance with all applicable statues, rules, and requirements. (6) It is the owner or operator’s responsibility to verify the nonretail facility is in compliance with all requirements at all times. (7) If at the time of the inspection it is found the nonretail facility is not in compliance with any of the requirements, the State Fire Marshal will issue a Notice and Order of Correction to the owner or operator of the facility. (8) The Notice and Order of Correction will, at a minimum, contain the following information: (a) The company name of the facility; (b) The address of the facility; (c) The specific requirement the owner or operator is not in compliance with; (d) The date the violations must be abated by. (9) The violations ordered to be abated must be abated by the date established on the Notice and Order of Correction. (10) If the violation is not abated by the required date, the State Fire Marshal will impose a civil penalty in accordance with 837-020-0130. (11) The owner or operator may request additional time to make the corrections. Such a request must be made in writing. A request submitted by email will be considered as a written request. (a) The request must be made prior to the current date abatement is required. (b) At the discretion of the State Fire Marshal an extension may be given for just cause which will establish a new date abatement must be accomplished by. Additional extensions may be granted if, in the opinion of the State Fire Marshal the circumstances warrant it. (12) If at the time of the inspection it is found the nonretail facility is not in compliance with any of the requirements, the State Fire Marshal will impose civil penalties in accordance with 837-020-0130. (13) The State Fire Marshal will conduct triennial audits of at least five percent of all nonretail accounts to determine if owners and operators of nonretail facilities are in compliance with the provisions of ORS 480.310 to 480.385 and any applicable rule adopted by the State Fire Marshal. The State Fire Marshal may audit more than five percent and up to one hundred percent of all nonretail accounts for, but not limited to, the following reasons: (a) During a triennial audit or any other audit it is found that 40 percent or more of the customer files inspected do not have all the required documentation; (b) To verify a violation noted on a Notice and Order of Correction has been abated; (c) To verify all new customers have been provided the required safety training materials by the owner or operator; (d) If the State Fire Marshal receives a complaint or has compelling information the owner or operator is not complying with the requirements. (14) Though the State Fire Marshal may provide as much as four weeks or more advance notice of the triennial audit or any subsequent audit, the owner or operator will be given no less than two weeks advance notice of such audits. (15) If, in the opinion of the State Fire Marshal there is compelling information that an owner or operator of a nonretail facility is intentionally not complying with any provision of ORS 480.310 through 480.385 or OAR 837-020-0025 through 837-020-0115, the State Fire Marshal may conduct an audit of the nonretail customer files at any time and with less than two weeks’ notice. The State Fire Marshal must be able to show that such an audit is justified, and will coordinate with the owner or operator to mitigate the impact to them and so they may be reasonably prepared. (16) At the time of the audit, and upon request, the owner or operator must have the following information available to the State Fire Marshal: (a) A list of all active accounts that are entered into a written agreement to dispense Class 1 flammable liquids. (b) A list of the accounts that were closed or are no longer entered into a written agreement to dispense Class 1 flammable liquids since the last audit. This list must include the date the account was closed or no longer entered into a written agreement to dispense Class 1 flammable liquids. (c) A list of new accounts since the last audit that have entered into a written agreement to dispense Class 1 flammable liquids. This list must also include the date the written agreement was entered into. (d) A copy of the safety training material currently being provided to the nonretail customers. (e) Documentation that shows each nonretail or conditional nonretail customer who has entered into a written agreement to dispense Class 1 flammable liquids meets the requirements to dispense Class 1 flammable liquids. (f) Required documentation must be provided when requested. If it is not, it will be considered that requirement was not met and the owner or operator is out of compliance with the requirements. (17) The audit will consist of inspecting a minimum of five percent of the nonretail customer files as a sampling to indicate the degree in which the owner or operator is in compliance with all applicable statues, rules and requirements. (18) At the discretion of the State Fire Marshal, more than five percent and up to one hundred percent of the customer accounts may be inspected. (19) During the audit the State Fire Marshal will determine the number of accounts that are or were entered into a written agreement with the owner or operator to dispense Class 1 flammable liquids at any time during the current license cycle up to the date of the audit. This will include any customer accounts that are acquired from another owner or operator regardless if those customers have entered into a new written agreement with the acquiring owner or operator. (a) The owner or operator and the State Fire Marshal will agree to this number and it will be documented on a form established by the State Fire Marshal. This will be the number of accounts the operator will be required to pay for after the audit. (b) The owner or operator will also pay for any new accounts who entered into a written agreement after the triennial audit at the time they renew at least one of their facility licenses. (20) During the audit the State Fire Marshal will reconcile the number of accounts that were entered into a written agreement during the previous license cycle to verify all accounts were reported and paid for. (21) Owners or operators who are located outside of Oregon but have at least one nonretail facility located in Oregon licensed by the State Fire Marshal are also subject to the requirements established in ORS 480.310 to 480.385 and OAR 837-020-0025 to 837-020-0130. (22) During the triennial audit or any other audit, the State Fire Marshal may require reports or data from the owner or operator that show transactions or activity that occurred at specific nonretail facilities for the purpose of verifying all accounts that have entered into a written agreement to dispense Class 1 flammable liquids are identified. These reports may also be used to verify the retail and nonretail sales at dual operations that are separated by time, or other purposes related to the audit. (23) It is the owner or operator’s responsibility to verify all of their nonretail customers meet all of the requirements at all times. (24) If at the time of the audit it is found the owner or operator is not in compliance with any of the requirements, the State Fire Marshal will issue a Notice and Order of Correction to the owner or operator. (25) The Notice and Order of Correction will contain, at a minimum, the following information: (a) The company name of the facility; (b) The specific requirement the owner or operator or customer is not in compliance with; (c) The latest date the violation must be abated by. (d) The violations must be abated by the date established on the Notice and Order of Correction. (e) If the violation is not abated by the required date, the State Fire Marshal will impose a civil penalty in accordance with 837-020-0130. (f) The owner or operator may request additional time from the State Fire Marshal to make the corrections. (g) A request for additional time must be made in writing. A request submitted by email will be considered as a written request. (h) The request must be made prior to the current date abatement is required. (i) At the discretion of the State Fire Marshal an extension may be given for just cause which will establish a new date abatement must be accomplished by. Additional extensions may be granted if, in the opinion of the State Fire Marshal the circumstances warrant it. (26) If at the time of the inspection it is found the nonretail facility is not in compliance with any of the requirements, the State Fire Marshal will impose civil penalties in accordance with 837-020-0130. (27) When an owner’s or operator’s business ceases operations the State Fire Marshal will conduct a closing audit to identify the number of accounts that were entered into a written agreement during the current license cycle. The owner or operator is subject to and required to pay the account fee for each of those accounts. (28) Examples of a business ceasing to exist include but are not limited to: (a) Selling (b) Closing (c) Merging