Current Status Bill Number:View additional legislative information at the LPITS web site.433 Ratification Number:598 Act Number:512 Introducing Body:Senate Subject:Burglar Alarm System Businesses Act of 1986
(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.