S*433 Session 106 (1985-1986)
S*0433(Rat #0598, Act #0512 of 1986) General Bill, By N.A. Theodore
A Bill to enact the "South Carolina Regulation of Burglar Alarm System
Businesses Act of 1986", to make certain violations and the commission of
certain acts a misdemeanor, and to provide penalties.
03/28/85 Senate Introduced and read first time SJ-1219
03/28/85 Senate Referred to Committee on Judiciary SJ-1219
03/12/86 Senate Committee report: Favorable with amendment
Judiciary SJ-1002
03/25/86 Senate Amended SJ-1178
03/25/86 Senate Read second time SJ-1193
03/25/86 Senate Ordered to third reading with notice of
amendments SJ-1193
04/03/86 Senate Amended SJ-1435
04/03/86 Senate Read third time and sent to House SJ-1435
04/08/86 House Introduced and read first time HJ-2230
04/08/86 House Referred to Committee on Labor, Commerce and
Industry HJ-2230
05/07/86 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-2852
05/13/86 House Objection by Rep. Foster, Blanding & Kirsh HJ-3016
05/28/86 House Objection withdrawn by Rep. Blanding, Foster &
Kirsh HJ-3443
05/28/86 House Amended HJ-3447
05/28/86 House Read second time HJ-3448
05/29/86 House Read third time HJ-3499
05/29/86 House Returned HJ-3499
06/03/86 Senate Concurred in House amendment and enrolled SJ-3479
06/05/86 Ratified R 598
06/12/86 Signed By Governor
06/12/86 Effective date 07/01/87
06/12/86 Act No. 512
06/20/86 Copies available
(A512, R598, S433)
AN ACT TO ENACT THE "SOUTH CAROLINA REGULATION OF BURGLAR ALARM SYSTEM
BUSINESSES ACT OF 1986", TO MAKE CERTAIN VIOLATIONS AND THE COMMISSION OF
CERTAIN ACTS A MISDEMEANOR, AND TO PROVIDE PENALTIES.
Be it enacted by the General Assembly of the State of South Carolina:
Citation of act
SECTION 1. This act is known and may be cited as the "South Carolina
Regulation of Burglar Alarm System Businesses Act of 1986".
Prohibition of engaging in alarm system
business without license
SECTION 2. No private person, firm, association, partnership, or corporation may
engage in, perform any services as, or in any way represent or hold itself out
as engaging in an alarm system business or activity in this State without having
first complied with the provisions of this act, including obtaining a valid
license to engage in, perform any services as, or in any way represent or hold
itself out as engaging in an alarm system business or activity. The license must
be obtained from the South Carolina State Licensing Board for Contractors.
Compliance with licensing requirements of this act does not relieve any person,
firm, association, partnership, or corporation from compliance with any other
licensing law.
Definition
SECTION 3. As used in this act, "burglar alarm system business" means
any person, firm, association, partnership, or corporation which installs,
services, or responds to electrical, electronic, or mechanical alarm signal
devices, burglar alarms, television cameras, or still cameras used to detect
burglary, breaking or entering, or intrusion, shoplifting, pilferage, or theft
for a fee or other valuable consideration. The term does not include a business
or individual which or who merely sells or manufactures alarm systems unless the
business services, installs, or responds to alarm systems at the protected
premises. The term does not include a person, firm, association, partnership,
or corporation which merely owns and installs an alarm system on property owned
or leased by itself. The term "burglar alarm system business" does not
include any "telephone utility" regulated under the provisions of
Section 58-9-10 et. seq. of the Code of Laws of South Carolina, 1976, or FCC
regulated carriers. The regulation of alarm system businesses does not include
installation, servicing, or responding to fire alarm systems or any alarm device
which is installed in a motor vehicle, aircraft, or boat. No county or
municipality is prevented from requiring within its jurisdiction the registration
of the alarm system businesses' names or the filing of copies of board licensure
or from adopting an ordinance to require users of alarm systems to obtain permits
when usage involves automatic signal transmission to a law enforcement agency.
Attorney General may investigate
SECTION 4. The Attorney General and the South Carolina Department of Consumer
Affairs have the power to investigate or cause to be investigated any complaints,
allegations, or suspicions of wrongdoing or violations of this act or
regulations, involving any person, firm, association, partnership, or corporation
licensed or to be licensed.
Verified application required
SECTION 5. (A) Any person, firm, association, partnership, or corporation
desiring to carry on or engage in an alarm system business shall make a verified
application to the South Carolina State Licensing Board for Contractors in
writing.
(B) The application shall include:
(1) full name and business address of the applicant.
(2) the name under which the applicant intends to do business.
(3) a statement as to the general nature of the business in which the
applicant intends to engage.
(4) if an applicant is a person other than an individual, the full name and
address of each of its partners, principal officers, directors, and its business
manager, if any.
(5) the names and addresses of not less than three unrelated and
disinterested persons as references of whom inquiry can be made as to the
character, standing, and reputation of the person or persons making the
application.
(6) other pertinent information, evidence, statements, or documents required
by the board.
(C) A business entity including a sole proprietorship may not do business
unless it has in its employ a designated qualifying agent who meets the
requirements for a license and who is in fact licensed. A qualifying agent means
an individual in a management position who is licensed and whose name and address
have been registered with the board. In the event that the qualifying agent upon
whom the business entity relies in order to do business ceases to perform his
duties as qualifying agent, the business entity shall notify the board within ten
working days. The business entity shall obtain a substitute qualifying agent
within thirty days after the original qualifying agent ceases to serve as
qualifying agent unless the board, in its discretion, extends this period for
good cause for a period not to exceed ninety days. The license authorizing the
business entity to engage in an alarm system business shall list the name of at
least one designated qualifying agent.
(D) Upon receipt of an application, the board shall cause a background
investigation to be made during which the applicant is required to show that he
meets all of the following requirements and qualifications which are prerequisite
to obtaining a license:
(1) that he is at least eighteen years of age.
(2) that the applicant has no: conviction of any crime involving the
illegal use, carrying, or possession of a firearm; conviction of any crime
involving the illegal use, possession, sale, manufacture, distribution, or
transportation of a controlled substance, drug, narcotic, or alcoholic beverages;
conviction of a crime involving felonious assault or an act of violence;
conviction of a crime involving unlawful breaking or entering, burglary, or
larceny; any offense involving moral turpitude; or a history of addiction to
alcohol or a narcotic drug. "Conviction" means the entry of a plea of
guilty or nolo contendere or a verdict rendered in open court by a judge or jury.
(3) that he has the necessary qualifications as the board determines by
regulation for the issuance of all licenses.
(E) The board may require the applicant to demonstrate his qualifications by
oral or written examination, or both.
(F) The application must be on a form or forms determined by the board and
must be accompanied by a nonrefundable application fee. The board shall set the
application fee by regulation.
(G) Upon a finding that the application is in proper form, the completion of
the background investigation, and the completion of any required examination, the
board shall determine whether to approve or deny the application. Upon approval,
a license must be issued upon payment by the applicant of the initial license fee
and furnishing of the required cash bond or surety bond and certificate of
liability insurance. The grounds for denial include:
(1) commission of any act which, if committed by a licensee, would be
grounds for the suspension or revocation of a license.
(2) conviction of a crime involving fraud.
(3) lack of good moral character or temperate habits.
(4) previous denial of a license or previous revocation of a license for
cause.
(5) knowingly making any false statement or misrepresentation in his
application.
(H) Every license is valid for a period of two years. A license may be
renewed in the manner and under the terms the board determines. The board shall
set the initial license fee and the renewal fee by regulation. No initial
license or renewal of a license may be granted until any required fee has been
paid.
Form of license
SECTION 6. (A) The license must be in the form determined by the board and
shall state:
(1) the name and address of the licensee.
(2) the name under which the licensee is to operate.
(3) the number and expiration date of the license.
(B) All licenses must be renewed prior to the expiration of the period of the
license, except as otherwise provided by this act. The license must at all times
be posted in a conspicuous place in the principal place of business of the
licensee. No license is assignable.
(C) No licensee may conduct an alarm system business under a name other than
the name under which his license was obtained or the name of the business entity
under which the licensee is doing business and which name and address of the
business entity must have been registered with the board.
(D) The operator or manager of any branch office must be licensed, and his
license must be posted at all times in a conspicuous place in the branch office.
Every business covered under this act shall file in writing with the board the
address of each of its branch offices, if any, within ten working days after the
establishment, closing, or changing of the location of any branch office.
(E) An application fee and an initial license fee or a renewal license fee
must be paid with respect to each license in addition to the basic license. A
late renewal fee, which must be set by the board, must be paid in addition to the
renewal fee due if the license has not been renewed on or before the expiration
date of the license. In no event may renewal be granted more than three months
after the date of expiration of a license.
(F) Fees collected must be remitted by the board to the State Treasurer, who
shall deposit the fees in the general fund of the State.
Necessary bond
SECTION 7. Upon notification of approval of his application by the board, an
applicant shall furnish evidence that he has obtained the necessary bond and
liability insurance required by Section 8, or his application lapses.
Surety bond required
SECTION 8. (A) An applicant may not be issued or have renewed a license unless
he files with the board and maintains a surety bond executed by a surety company
authorized to do business in this State in a sum of five thousand dollars or a
cash bond, in lieu of the surety bond, in a sum of five thousand dollars to
protect the public from the wrongful or illegal acts of the bond principal or his
agents operating in the course and scope of the principal's agency. Only one
bond is required regardless of the number of licenses issued under an application
or renewal.
(B) The bond must be taken in the name of the people of the State of South
Carolina. Every person injured by wrongful or illegal acts of the principal or
his agents operating in the course and the scope of the principal's agency may
bring an action on the principal's bond in the person's own name to recover
damages suffered by reason of the wrongful or illegal act. The aggregate
liability of the surety for all breaches of the condition of the bond may, in no
event, exceed the sum of the bond.
(C) Persons registered pursuant to Section 9 are not required to obtain a bond
or certificate of liability insurance.
(D) The surety has a right to cancel the bond upon giving thirty days' notice
to the board. The cancellation does not affect any liability on the bond which
accrued prior to cancellation. The bond must be approved by the board as to
form, execution, and sufficiency of the surety.
(E) No license may be issued unless the applicant files with the board
evidence of a policy of liability insurance which policy shall provide for the
following minimum coverage: fifty thousand dollars because of bodily injury or
death of one person as a result of the negligent act or acts of the principal
insured or his agents operating in the course and scope of the principal's
agency; subject to the limit for one person, one hundred thousand dollars because
of bodily injury or death of two or more persons as the result of the negligent
act or acts of the principal insured or his agents operating in the course and
scope of the principal's agency; twenty thousand dollars because of injury to or
destruction of property of others as the result of the negligent act or acts of
the principal insured or his agents operating in the course and scope of the
principal's agency.
(F) An insurance carrier shall notify the board upon the cancellation by a
licensee of its policy of liability insurance or the cancellation by the
insurance carrier of the licensee's policy of insurance by giving thirty days'
notice to the board. The cancellation does not affect any liability on the
policy which accrued prior to cancellation.
(G) Persons registered pursuant to Section 9 are not required to obtain a
certificate of liability insurance.
(H) Every licensee shall at all times maintain on file with the board the
required bond and certificate of insurance in full force and effect and, upon
failure to do so, the license must automatically be suspended and may not be
reinstated until an application for license, in the form prescribed by the board,
is filed together with a proper bond or insurance certificate.
(I) The board may deny the application notwithstanding the applicant's
compliance with this section:
(1) for any reason which would justify refusal to issue or a suspension or
revocation of a license; or
(2) for the performance by the applicant of any practice, while under
suspension for failure to keep the bond or insurance certificate in force, for
which a license is required.
Board must be furnished information
SECTION 9. (A) All licensees, within ten days of the beginning of employment
of an employee who will be engaged in the providing of alarm system services,
unless the board, in its discretion, extends the period for good cause, shall
furnish the board with the following: two sets of classifiable fingerprints of
the employee on standard F.B.I. applicant cards; two recent photographs of the
employee of acceptable quality for identification; and statements of any criminal
records of the employee obtained from the State Law Enforcement Division or
county sheriff or chief of police of any municipality in South Carolina or clerk
of court in each county in South Carolina where the employee has resided within
the immediately preceding twenty-four months.
(B) A licensee may not employ an employee referred to in subsection (A) unless
the employee is properly registered, unless otherwise exempted by another
provision of this act.
(C) The board must be notified in writing of the termination of any registered
employee within ten days after the termination.
(D) An employee referred to in subsection (A) shall make application to the
board for a registration card which the board must issue to the
employee-applicant after receipt of the information required under subsection (A)
and after the employee-applicant meets any additional requirements which the
board, in its discretion, considers necessary. The registration card must be in
the form of a pocket card designed by the board, must be issued in the name of
the employee-applicant, and shall have the employee-applicant's photograph
affixed. The registration card expires two years after its date of issuance and
must be renewed upon expiration. If an employee changes employment to another
alarm system business, the registration card remains valid. The board is
authorized to charge the employee-applicant a registration fee for initial
registration, in an amount not to exceed fifteen dollars, and a renewal fee, in
an amount not to exceed ten dollars.
(E) A licensee may employ a person properly registered or licensed as an alarm
system business employee in another state for a period not to exceed ten days in
any given month. The licensee, prior to employing the person, shall submit to
the board the name, address, and social security number of the person and the
name of the state of current registration or licensing. Board approval of the
employment of the person in this State must be obtained prior to the person's
being employed.
(F) A licensee may employ a person as an alarm system business employee for
a period not to exceed thirty days in any given calendar year without registering
the employee, if the licensee submits to the board a quarterly report which
provides the board with the name, address, social security number, and dates of
employment of the employee.
Suspension or revocation of license
SECTION 10. The board may, after compliance with Article II of Act 176 of 1977
(Administrative Procedures), suspend or revoke a license if the board determines
that the licensee has done any of the following:
(1) made any false statement or given any false information in connection with
any application for a license or for the renewal or reinstatement of a license.
(2) violated any provision of this act.
(3) violated any regulation promulgated by the board.
(4) been convicted of any crime involving moral turpitude or any other crime
involving violence or the illegal use, carrying, or possession of a dangerous
weapon.
(5) impersonated, permitted, aided, or abetted any other person to impersonate
a law enforcement officer of the United States or of this State or of any of this
state's political subdivisions.
(6) engaged in or permitted any employee to engage in an alarm system business
when not lawfully in possession of a valid license.
(7) wilfully failed or refused to render to a client service as agreed between
the parties and for which compensation has been paid or tendered in accordance
with the agreement of the parties.
(8) knowingly made any false report to a client.
(9) committed an unlawful breaking or entering, assault, battery, or
kidnapping.
(10) knowingly violated or advised, encouraged, or assisted the violation of
any court order or injunction in the course of business as a licensee.
(11) committed any other act which is grounds for the denial of an application
for a license.
(12) failed to maintain the required cash bond, surety bond, or certificate
of liability insurance.
(13) committed any act prohibited under Section 12.
(14) if a business entity including a sole proprietorship licensed pursuant
to this act, failed to notify the board of the cessation of employment of the
business entity's qualifying agent within the applicable time or failed to obtain
a substitute qualifying agent within thirty days after its qualifying agent has
ceased to serve as the business entity's qualifying agent, except as otherwise
provided.
(15) received any judgment of incompetency by a court having jurisdiction or
commitment to a mental health facility for treatment of mental illness by a court
having jurisdiction.
Advertisement
SECTION 11. Every advertisement by a licensee soliciting or advertising for
business shall contain his name as it appears in the records of the board and the
name in which the license was issued.
Unlawful for persons not licensed to perform
certain acts
SECTION 12. It is unlawful for anyone not licensed or registered to:
(a) advertise or hold himself out to be a licensee;
(b) advertise or hold himself out to perform services for which a license is
required; or
(c) perform or aid or abet any other individual to perform services for which
a license or registration is required, when, in fact, the individual is not
licensed or registered.
Penalty
SECTION 13. Any person, including any agent or employee of any person, violating
any of the provisions of this act, committing any of the acts specified in
Section 12, or knowingly violating any regulation of the board is guilty of a
misdemeanor and, upon conviction, must be fined an amount not to exceed five
hundred dollars or imprisoned for a term not to exceed one year, or both.
Alarm system business license
SECTION 14. (A) The board shall provide by regulation for an alarm system
business license. Applicants for an alarm system business license shall comply
with one of the following requirements:
(1) establish to the board's satisfaction three years' experience, within
the immediately preceding five years, in alarm systems installation and service;
or
(2) successfully pass an oral or written examination considered by the board
to measure an individual's knowledge and competence in the alarm system
business.
(B) The board may give up to two years' credit toward the experience
requirement set forth in item (1) of subsection (A), as follows:
(1) one year of credit for a two-year associate degree in electronics
conferred by an accredited technical college or center or by an accredited
college or university.
(2) two years of credit for a bachelor's degree in electrical engineering
conferred by an accredited college or university.
(C) The board may determine what credit, if any, may be given for intensive
courses in alarm systems offered by organizations approved by the board.
(D) The board may determine what credit, if any, may be given for degrees
awarded by accredited technical colleges or centers or by accredited colleges or
universities other than those set out in subsection (B), with respect to alarm
system business licenses, but the credit may not exceed two years.
(E) The board may establish other requirements for an alarm system business
license it considers necessary.
Nonresident license
SECTION 15. To the extent that other states which provide for licensing of alarm
system businesses provide for similar action for persons of this State, the
board, in its discretion, may grant a license to a nonresident who holds a valid
license of the same type from another state upon satisfactory proof furnished to
the board that the standards of licensure in the other state are at least
substantially equivalent to those prevailing in this State. Applicants shall
make application to the board on the form or forms prescribed by the board for
all applicants, shall comply with the provisions of Section 8, and shall pay any
fee required of applicants.
Time effective
SECTION 16. This act shall take effect on July 1, 1987. |