I agree with Jan that the rules for live will not be the same as tournaments. I also agree that each cardroom, can make up their own rules.
Dave Lamb said to me in an email, "Discussing "live play" rules on the forum is good but the TDA is not trying to standardize them. Many cardrooms have liberal or unique procedures in an attempt to maintain an edge on the competition.
Our goal should still be focused on getting the 44 rules accepted into use and properly administered."
That said, I think it appropriate to post the reply I received from Bob Ciaffone earlier today:
"You may post this response.
In RROP, the missed small blind is live. Casino and online practice has not settled on one sole generally accepted method.
I prefer the small blind to be live because no sane and smart player would wish to miss both the small blind and the button and post a live small blind if he could have simply played the small blind and the button for the same money. Something happened—like a hurry call to the bathroom or going broke.
While there has been a player in the past (“Bottoms”) that deliberately ducked his small blind, I believe he did it mainly to annoy the other players, not because he gained anything. The rule about the small blind being live was changed because of him. He is now dead, and the rule on the SB being dead should have been buried with him." (Italics supplied)
RRoP's position is that the missed Small Blind should be live. However, there appears to be a substantial group who believe the missed Small Blind should be dead. Arguments can be made for both positions. Personally, I am in the RRoP camp. I see no reason to penalize the player who missed the Small Blind inadvertently. That said, I would not allow any player to get into a pattern of successive or numerous missed Small Blinds.
So to answer MrScott, do whatever you believe is the best solution in your cardroom. My only caution would be that you carefully develop a rule covering the situation, document it in your "House Rules" and apply it consistently.
Hope this helps!!