South Carolina General Assembly
114th Session, 2001-2002

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Bill 41


                    Current Status

Bill Number:                      41
Ratification Number:              439
Act Number:                       358
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20010110
Primary Sponsor:                  Leventis
All Sponsors:                     Leventis, Reese
Drafted Document Number:          l:\council\bills\nbd\11061ac01.doc
Companion Bill Number:            3106
Date Bill Passed both Bodies:     20020606
Date of Last Amendment:           20020606
Governor's Action:                S
Date of Governor's Action:        20020802
Subject:                          Burglar alarm system industry; license 
                                  fees and renewal, branch office and employee 
                                  requirements


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
------  20020819  Act No. A358
------  20020802  Signed by Governor
------  20020606  Ratified R439
House   20020606  Free Conference Committee Report       99 HFCC
                  adopted, enrolled for
                  ratification
House   20020606  Free Conference Powers granted,        99 HFCC Cato
                  appointed Reps. to Committee of                Law
                  Free Conference                                Wilder
Senate  20020606  Free Conference Committee Report       89 SFCC
                  adopted
Senate  20020606  Free Conference Powers granted,        89 SFCC Leventis
                  appointed Senators to Committee                Waldrep
                  of Free Conference                             Alexander
House   20010605  Conference powers granted,             98 HCC  Cato
                  appointed Reps. to Committee of                Law
                  Conference                                     Wilder
Senate  20010605  Conference powers granted,             88 SCC  Alexander
                  appointed Senators to Committee                Leventis
                  of Conference                                  Waldrep
Senate  20010605  Insists upon amendment
House   20010530  Non-concurrence in Senate amendment
Senate  20010529  House amendments amended,
                  returned to House with amendment
House   20010523  Read third time, returned to
                  Senate with amendment
House   20010522  Amended, read second time
------  20010517  Scrivener's error corrected
House   20010516  Committee report: Favorable with       26 HLCI
                  amendment
House   20010410  Introduced, read first time,           26 HLCI
                  referred to Committee
Senate  20010405  Read third time, sent to House
Senate  20010404  Read second time
Senate  20010404  Committee amendment adopted
------  20010330  Scrivener's error corrected
Senate  20010329  Committee report: Favorable with       12 SLCI
                  amendment
------  20010112  Companion Bill No. 3106
Senate  20010110  Introduced, read first time,           12 SLCI
                  referred to Committee


              Versions of This Bill
Revised on March 29, 2001 - Word format
Revised on March 30, 2001 - Word format
Revised on April 4, 2001 - Word format
Revised on May 16, 2001 - Word format
Revised on May 17, 2001 - Word format
Revised on May 22, 2001 - Word format
Revised on May 29, 2001 - Word format
Revised on June 6, 2002 - Word format

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A358, R439, S41)

AN ACT TO AMEND SECTION 40-79-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ADMINISTRATIVE RESPONSIBILITIES OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION CONCERNING REGULATING THE ALARM SYSTEM BUSINESS INDUSTRY, SO AS TO PROVIDE THAT CERTAIN LICENSURE FEES INCLUDE A PRIMARY QUALIFYING PARTY CERTIFICATE; TO AMEND SECTIONS 40-79-110 AND 40-79-130, BOTH AS AMENDED, BOTH RELATING TO GROUNDS FOR DISCIPLINARY ACTION AGAINST AN ALARM SYSTEM BUSINESS LICENSEE, SO AS, RESPECTIVELY, TO CLARIFY THE SCOPE OF AUTHORITY OF A LICENSEE AFTER CANCELLATION OF HIS LICENSE AND TO INCLUDE IN SUCH GROUNDS THE CANCELLATION OF A LICENSE OR REGISTRATION; TO AMEND SECTION 40-79-220 RELATING TO BURGLAR ALARM SYSTEM BRANCH OFFICES AND REGISTERED EMPLOYEE REQUIREMENTS, SO AS TO PROVIDE THAT A BRANCH OFFICE MAY NOT CONDUCT BUSINESS UNTIL A LICENSE NUMBER HAS BEEN ISSUED, TO REQUIRE AN EMPLOYEE TO BE REGISTERED BY THE DEPARTMENT, WHICH INCLUDES A CRIMINAL BACKGROUND CHECK, TO HAVE ACCESS TO CLIENT RECORDS, TO PROVIDE PROCEDURES FOR ACCESS TO RECORDS PENDING THE BACKGROUND CHECK RESULTS, TO REQUIRE NOTIFICATION OF THE DEPARTMENT UPON TERMINATION OF EMPLOYMENT TO PROVIDE THAT CERTAIN TEMPORARY EMPLOYEES ARE NOT REQUIRED TO BE REGISTERED BUT MAY NOT HAVE ACCESS TO CLIENT RECORDS; AND TO AMEND SECTION 40-79-240 RELATING TO LICENSE RENEWAL, SO AS TO MAKE TECHNICAL CORRECTIONS; TO AMEND SECTION 40-79-20, AS AMENDED, RELATING TO DEFINITIONS OF TERMS USED IN THE SOUTH CAROLINA ALARM SYSTEM BUSINESS ACT, SO AS TO REVISE THE DEFINITION OF "REGISTERED" AND BY ADDING DEFINITIONS OF ADDITIONAL TERMS; TO AMEND SECTION 40-79-230, RELATING TO APPLICATIONS FOR LICENSURE TO ENGAGE IN AN ALARM SYSTEM BUSINESS, SO AS TO REQUIRE COMPLETION OF CERTAIN TRAINING PROGRAMS DEPENDING ON THE PROFESSION OF THE PERSON SEEKING LICENSURE.

Be it enacted by the General Assembly of the State of South Carolina:

Initial and renewal license fees

SECTION 1. Section 40-79-50(2) and (3) of the 1976 Code, as last amended by Act 367 of 2000, is further amended to read:

"(2) Initial license fees are:

(a) two hundred dollars for an alarm system business license, which includes one primary qualifying party certificate;

(b) fifty dollars for each branch office, which includes one primary qualifying party certificate;

(c) ten dollars for additional qualifying party license certificate.

(3) Renewal license fees are:

(a) two hundred dollars for an alarm system business renewal including one primary qualifying party certificate;

(b) fifty dollars for each branch office, which includes one primary qualifying party certificate;

(c) ten dollars for additional qualifying party license certificate."

Scope of authority after license suspension, cancellation, or revocation

SECTION 2. Section 40-79-110(H) and (I) of the 1976 Code, as last amended by Act 367 of 2000, is further amended to read:

"(H) The licensee may complete work in progress if the licensee's license is suspended, canceled, or revoked; however, no new work may be bid or started after suspension or revocation of a license upon proper notification by the department.

(I) Unless otherwise directed by the board, the suspension, cancellation, revocation, or restriction of a license or certificate shall become effective following the delivery to the licensee or qualifying party of a written decision of the board. Service of a petition for a review of the decision does not stay the board's decision pending completion of the appellate process in accordance with the Administrative Procedures Act."

Grounds for disciplinary action

SECTION 3. Section 40-79-130(1)(b) of the 1976 Code, as last amended by Act 367 of 2000, is further amended to read:

"(b) had a license or registration denied, suspended, canceled, revoked, or otherwise disciplined;"

Branch office requirements

SECTION 4. Section 40-79-220 of the 1976 Code, as added by Act 367 of 2000, is amended to read:

"Section 40-79-220. (A) The following branch office requirements apply:

(1) The department shall issue a certificate to each branch burglar alarm office. This certificate authorizes the branch office to conduct business under the name of the licensed entity. The department may create the certificate as necessary. The licensed entity must apply for the certificate prior to opening the branch office and must not conduct business from this office until the application has been approved by the department and a license number has been issued for the branch office. The certificate must be posted within the branch office upon receipt from the department.

(2) Each branch office doing business in this State must have a primary qualifying party assigned to that location exclusively. This primary qualifying party may not be a primary qualifying party for any other business location. Any disciplinary action taken by the board affects all of the offices equally, unless otherwise stipulated by the board.

(3) All branch offices shall pay a separate license fee.

(4) Every branch office and the primary qualifying party must be registered with the department prior to opening the branch office. All registered employees who have access to the licensee's client records must be registered with the department within thirty working days of employment within the branch office.

(5) Each branch office must have a separate comprehensive general liability insurance policy or be listed on the home office policy in accordance with this chapter.

(B) The following qualifying party requirements apply:

(1) An alarm business, including a sole proprietorship, may not do business unless it has in its employment a primary qualifying party who meets the requirements of this chapter.

(2) Upon passing all required examinations and meeting all other requirements, the qualifying party must be issued a qualifying party certificate. Any number of employees may become qualified and may be listed as qualifying parties.

(3) If a qualifying party ceases to perform his duties or leaves employment of the licensee, the licensee and qualifying party must notify the department in writing within fifteen days. The licensee must obtain a substitute primary qualifying party within ninety days after the primary qualifying party ceases to perform his duties. If the licensee notifies the department within the prescribed time, the license shall remain in good standing until the prescribed time limit has expired. If the primary qualifier is not replaced within the time limit above, the license or certificate, or both, may be canceled by the department. If the licensee or qualifying party, or either, fails to notify the department within the required time, disciplinary action may be taken in accordance with this chapter.

(4) A qualifying party may transfer his qualifications to another alarm business when he becomes a new employee for that business. The new employer must send written notification of the qualifying party's new employment to the department within fifteen days of employment.

(5) No qualifying party for an alarm business may serve as a qualifying party for more than one licensee at a time and must be a full-time employee of the licensee.

(6) Any qualifying party that is not listed as a qualifying party for an alarm business for four consecutive years must pass any examinations required by the board in order to become certified.

(C) The following registered employee requirements apply:

(1) All employees of a licensed alarm business that meet the definition of registered, as provided in Section 40-79-20, must be registered on a form provided by the department. The licensee must conduct a criminal background check of any applicant for employment and report the results to the department in conjunction with the registration process. The department must be notified by the licensee of each employee required to be licensed within thirty days of employment along with the results of the criminal background check of the new employee. An employee must not have access to the burglar alarm client's records until the license applicant or licensed entity verifies that the employee has not been convicted of a crime listed in Section 40-79-130 and documents in the employee's personnel file that the individual meets the registration requirements set forth in this chapter. If the employee has been convicted of a crime listed in Section 40-79-130, in order to be registered the individual must appear before the board and present evidence satisfactory to the board, in its discretion, as to the individual's fitness and qualifications for registration.

(2) The department must be notified in writing by the licensee and registered employee of termination of employment for any registered employee within thirty days after termination. If the registered employee fails to notify the department within thirty days, the department shall immediately cancel the registration of the employee. Failure of the licensee and registered employee to notify the department of the termination of the employee within thirty days may result in disciplinary action for violation of this chapter.

(3) A licensee may employ, without registering under this section, administrative, monitoring, or customer service personnel working temporarily within this State for a period not to exceed thirty consecutive days. These employees must not have access to the alarm business system's client's records until the licensed entity verifies that the employee has not been convicted of a crime listed in Section 40-79-130 and documents in the employee's personnel file that the temporary administrative, monitoring, or customer service employee meets the registration requirements set forth in this chapter. These employees do not have to be registered with the department. Any administrative or customer service personnel working over thirty consecutive days must be registered in accordance with this chapter.

(4) A licensee may temporarily employ in this State, without registering under this section, an alarm technician who is registered in another state for a period not to exceed ninety days in any given calendar year if the licensed entity verifies that the employee has not been convicted of a crime listed in Section 40-79-130 and documents in the employee's personnel file that the temporary alarm technician meets the registration requirements set forth in this chapter. This employee does not have to be registered with the department. A temporary alarm technician working over ninety days in a calendar year must be registered in accordance with this chapter.

(5) Monitoring personnel for a licensed entity located within this State that are solely engaged in burglar alarm monitoring do not have to be registered with the department, if the licensed entity verifies that the employee has not been convicted of a crime listed in Section 40-79-130 and documents in the employee's personnel file that the employee meets the registration requirements set forth in this chapter."

License renewal requirements

SECTION 5. Section 40-79-240(C) and (E) of the 1976 Code, as added by Act 367 of 2000, is amended to read:

"(C) All employees that are required to have a criminal background check must submit a new background check upon conviction of a crime.

A registered employee failing to qualify according to the requirements of this chapter may submit a request to the board within ten days of receipt of denial of renewal for consideration of a waiver for failure to meet the requirements of this chapter.

This individual must be allowed to continue to work under strict supervision of the alarm business until the board makes a decision on a timely waiver request.

(E) An alarm licensee must submit documentation of a current comprehensive general liability insurance policy with each license renewal in an amount provided for in Section 40-79-250."

Technical correction

SECTION 6. Section 40-79-20(14) of the 1976 Code, as amended by Act 367 of 2000, is further amended to read:

"(14) 'Registered' means an owner, partner, principle officer, qualifying party, or registered employee of an alarm business whose name and address has been listed or registered with the department as an individual who has access to a client's property or burglar alarm records that can reveal, but not be limited to, the type of burglar alarm system, burglar alarm security numbers or code, or any other information pertaining to the system that could compromise the client's burglar alarm system. This includes individuals who sell, install, or service a burglar alarm system at a client's residence and a full-time employee. Also included is a part-time employee that has access to customers' records or files."

Definitions added

SECTION 7. Section 40-79-20 of the 1976 Code is amended by adding at the end:

"(16) 'Administrative personnel' means an individual that performs daily office functions for the management of an alarm business.

(17) 'Monitoring personnel' means an individual that performs daily office functions observing the operation and activation of alarm systems from a monitoring station.

(18) 'Customer service personnel' means an individual working for a licensed alarm entity that provides support for customer problems, complaints, questions, and concerns involving an alarm system.

(19) 'Alarm technician' means an individual that specializes in any activity or work related to the set-up or installation, repair, alteration, or connection of an alarm system to a client's property."

Licensure requirements

SECTION 8. Section 40-79-230 of the 1976 Code, as added by Act 367 of 2000, is amended to read:

"Section 40-79-230. (A) An entity desiring to carry on or engage in an alarm system business shall submit an application to the Department of Labor, Licensing and Regulation. The owner, partners, or president, as appropriate, must sign the application. The primary qualifying party must also sign the application.

(B) To qualify for a license, the applicant must:

(1) submit a completed application as prescribed by the board;

(2) satisfy the examination requirements prescribed by the board;

(3) depending on the profession, have a certificate of completion from the National Training School for Burglar Alarms by taking the Level 1 training course or have a certificate of completion from the National Institute for Certification in Engineering Technologies for Fire Alarms by taking the Level II training course;

(4) submit proof that the applicant's primary qualifying party is a full-time employee in a management position;

(5) submit a criminal background check of the entity's principal officers, all qualifying parties, and registered employees. The background check must indicate that these individuals are at least eighteen years of age and have not been convicted of any criminal act or committed any acts which are grounds for the denial of a license under this chapter;

(6) submit all documentation required by the department pursuant to the requirements of this chapter;

(7) pay all fees;

(8) the applicant must submit a list of all qualifying parties, registered employees, and branch offices in order to be licensed by the department;

(9) upon the cancellation of an alarm license, the licensee must complete an initial application, pay the appropriate fees, and be issued a new license number; and

(10) the department may provide for an alarm system business license that permits the holder to participate in the burglar alarm system or fire alarm system business, or both."

Time effective

SECTION 9. This act takes effect upon approval by the Governor.

Ratified the 6th day of June, 2002.

Approved the 2nd day of August, 2002.

__________


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