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HOUSE AMENDMENTS AMENDED
May 29, 2001
S. 41
S. Printed 5/29/01--S.
Read the first time April 10, 2001.
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 BURGLAR ALARM SYSTEM 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 DISCIPLINARY ACTION AGAINST A BURGLAR ALARM SYSTEM LICENSEE, SO AS TO CLARIFY THE SCOPE OF AUTHORITY OF A LICENSEE AFTER CANCELLATION OF HIS LICENSE; 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 TO HAVE ACCESS TO CLIENT RECORDS, AND TO REQUIRE REGISTRATION CANCELLATION UPON TERMINATION OF EMPLOYMENT; AND TO AMEND SECTION 40-79-240 RELATING TO LICENSE RENEWAL, SO AS TO MAKE TECHNICAL CORRECTIONS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
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 including, 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."
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."
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;"
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 applicant has received the certificate 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 located within the doing business in this State must have a primary qualifying agent party assigned to that location exclusively. The This primary qualifying agent party may not be a primary qualifying agent party for any other business location in this State or be employed by or perform any burglar alarm related services for any other burglar alarm system business unless the licensed alarm business is performing work as a subcontractor. 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 all qualifying parties the primary qualifying party must be listed or registered, or both, with the department prior to opening the branch office. All registered employees who have access to the licensee's client records must be listed or registered, or both, with the department within ten 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 with on a form provided by the department. The licensee must conduct a criminal background check of any applicant for employment and submit the report the results to the department in conjunction with the registration process. The department must be notified by the licensee of each employee requiring registration by the licensee required to be licensed within fifteen 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 fifteen thirty days after termination. If the licensee or registered employee, or either, fails to notify the department within the fifteen thirty days, disciplinary action may be taken in accordance with this chapter 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 an individual who is properly registered, certified, or licensed as an alarm system business employee from another state for a period not to exceed fifteen days in any given month. The licensee, prior to employing the person, must submit to the department the name, address, date of birth, and social security number of the person and the name of the state of current registration or licensing. Department approval of the employment of the person in this State must be obtained prior to the person being employed , 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 an individual registered in another state as an alarm business employee, without registering under this section, an alarm technician who is registered in another state for a period not to exceed thirty ninety days in any given calendar year provided if the licensee submits to the department within five days from the date of employment, a report that provides the department with the name, address, social security number, job description, and dates of employment of the employee. Such an individual is not required to be registered in this State unless employed for more than thirty days in a given calendar year 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."
SECTION 5. Section 40-79-240(C) and (E) of the 1976 Code, as added by Act 367 of 2000, are 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 individual 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) A burglar 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."
SECTION 6. Section 40-79-20(14) of the 1976 Code, as amended by Act 367 is amended to read:
"(14) 'Registered' means an owner, partner, principle officer, qualifying party, or registered employee of a burglar 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."
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."
SECTION 8. This act takes effect upon approval by the Governor.
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