South Carolina General Assembly
113th Session, 1999-2000

Download This Version in Microsoft Word format

Bill 3735


Indicates Matter Stricken
Indicates New Matter


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

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

May 16, 2000

H. 3735

Introduced by Rep. Bailey

S. Printed 5/16/00--S.

Read the first time May 11, 1999.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (H. 3735), to amend Chapter 79, Title 40, Code of Laws of South Carolina, 1976, relating to the South Carolina Regulation of Burglar and Fire Alarm System Businesses Act, etc., respectfully

REPORT:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, Section 40-79-20(A)(4), page 11, by striking line 11 and inserting:

/services, maintains, or alters burglar alarm systems and/

Amend further, Section 40-79-20(A)(14), page 12, by striking line 9 and inserting:

/includes individuals who sell, install, or service a burglar/

Amend further, Section 40-79-100(E), page 14, by striking lines 30-33 and inserting:

/within thirty days of receipt of the citation./

Amend further, Section 40-79-110(I), page 17, by striking lines 22-25 and inserting:

/Administrative Procedures Act./

Amend further, Section 40-79-160, page 19, by striking lines 12-15 and inserting:

/Section 40-1-160./

Amend further Section 40-79-200, page 19, by striking lines 33-35 and inserting:

/Section 40-79-200. (A) An entity or individual who contracts or offers to contract in this State without a license issued pursuant to this chapter is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars./

Amend further, Section 40-79-220(B), page 21, by striking lines 19-20.

Amend further, Section 40-79-240(D), page 23, by striking line 23 and inserting:

/licensee licensed as of January 1, 2001, shall elect to subsequently/

Amend further, page 26, by striking line 8 and inserting:

/SECTION 2. This chapter takes effect January 1, 2001./

Renumber sections to conform.

Amend title to conform.

J. VERNE SMITH, for Committee.

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES IS:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

The Department of Labor, Licensing and Regulation has determined that House Bill 3735 would have no impact to the department or to the General Fund of the State nor on federal and/or other funds. The bill does not change the operation, duties, or mission of the program. No additional costs are associated with this bill.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND CHAPTER 79, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA REGULATION OF BURGLAR AND FIRE ALARM SYSTEM BUSINESSES ACT, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE REGULATION OF THE ALARM SYSTEM INDUSTRY.

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

SECTION 1. Chapter 79, Title 40 of the 1976 Code is amended to read:

"CHAPTER 79

South Carolina Regulation of Burglar and

Fire Alarm System Businesses Alarm System Business Act

Section 40-79-10. This chapter is known and may be cited as the "South Carolina Regulation of Burglar and Fire Alarm System Businesses Act of 1986".

Section 40-79-20. 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 chapter, 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 chapter does not relieve any person, firm, association, partnership, or corporation from compliance with any other licensing law.

Section 40-79-30. (A) As used in this chapter, "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, or fire alarms for a fee or other valuable consideration or which has reason to be physically present at a customer's home or business for the purpose of selling, servicing, or installing an alarm system.

(B) The term "alarm system business" does not include:

(1) law enforcement officers, fire department personnel, or individuals who may respond to an alarm by happenstance such as neighbors or passers-by;

(2) a business or individual which or who merely sells, manufactures, or distributes alarm systems or products unless the business sells, markets, services, installs, or responds to alarm systems at the protected premises;

(3) a person, firm, association, partnership, or corporation which merely owns and installs an alarm system on property owned or leased for itself;

(4) any "telephone utility" regulated under the provisions of Chapter 9 of Title 58 of the 1976 Code or FCC regulated carriers;

(5) installation or servicing of any alarm device which is installed in a motor vehicle, aircraft, or boat;

(6) a business or individual who merely sells, installs, or services battery-powered smoke detectors;

(7) an electrical contractor, licensed under Chapter 11 of Title 40, who sells, services, or installs only fire alarm systems.

(8) a business or individual subject to licensing or registration under Chapter 59 of this title who installs fire alarm systems that are not monitored in a building or structure described in Section 40-59-10.

(9) an "electric supplier" as described in Section 58-27-610, "electrical utility" as described in Section 58-27-10, or municipality.

(C) 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 or fire department.

(D) As used in this chapter, "installs" means any activity or work which involves the delivery, set-up, installation, or connection of alarm system equipment in any manner to a customer's premises.

Section 40-79-40. 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 chapter or regulations involving any person, firm, association, partnership, or corporation licensed or to be licensed.

Section 40-79-50. (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 beverage, except that the offense of driving a motor vehicle while under the influence of intoxicating liquor or drugs, as provided in Section 56-5-2930, must not be considered; conviction of a crime involving felonious assault or an act of violence; conviction of a crime involving unlawful breaking or entering, burglary, arson, 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; and

(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 determined by the board and must be accompanied by a nonrefundable application fee to be retained by the board to offset the cost related to the administration of this chapter. 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 certificate of liability insurance. The grounds on which the board may, after compliance with the Administrative Procedures Act if applicable, deny the license application include, but are not limited to, the following:

(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.

Section 40-79-60. (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 chapter. 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 chapter 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.

Section 40-79-70. Upon notification of approval of his application by the board, an applicant shall furnish evidence that he has obtained the necessary liability insurance required by Section 40-79-80, or his application lapses.

Section 40-79-80. (A) Persons registered pursuant to Section 40-79-90 are not required to obtain a certificate of liability insurance.

(B) 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 a 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.

(C) 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.

(D) Every licensee shall at all times maintain on file with the board the required 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 insurance certificate.

(E) 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 insurance certificate in force, for which a license is required.

Section 40-79-90. (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 chapter.

(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.

Section 40-79-100. 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 chapter;

(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 certificate of liability insurance;

(13) committed any act prohibited under SECTION 40-79-120;

(14) if a business entity including a sole proprietorship licensed pursuant to this chapter, 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.

Section 40-79-110. Every advertisement by a licensee soliciting or advertising for business must contain the name of the business entity as it appears in the records of the board.

Section 40-79-120. 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.

Section 40-79-130. 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 40-79-120, 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.

Section 40-79-140. (A) The board shall provide by regulation for an alarm system business license that permits the holder to participate in both the burglar and fire alarm system business. Applicants for the license successfully shall pass an oral or written examination considered by the board to measure an applicant's knowledge and competence in the burglar and fire alarm system businesses.

(B) Applicants licensed by the board prior to July 1, 1992, by establishing to the board's satisfaction three years' experience within the immediately preceding five years in alarm system installation and service shall not be required to pass an examination as a condition of license renewal.

(C) The board by regulation may establish those other requirements for licensure as it considers necessary.

Section 40-79-145. Persons or businesses licensed by the board under the provisions of this chapter shall on the effective date of this section also be authorized to participate in the fire alarm business without passing an additional examination or paying an additional fee.

Section 40-79-150. 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. However, a nonresident may not be granted a license to operate his alarm system business in this State unless his state of principal residence also permits similar licensing of residents of this State. Applicants shall make application to the board on the form prescribed by the board for all applicants, shall comply with the provisions of Section 40-79-80, and shall pay any fee required of applicants.

Section 40-79-5. Unless otherwise provided for in this chapter, Article 1, Chapter 1 of Title 40 applies to the regulation of the alarm system business industry by the Department of Labor, Licensing and Regulation. If there is a conflict between this chapter and Article 1, Chapter 1 of Title 40, the provisions of this chapter control.

Section 40-79-10. The Alarm System Business Act must be administered under the South Carolina Contractors Licensing Board which, in its authority over the alarm system industry, shall protect the health, safety, and welfare of the public through the regulation of businesses and individuals who identify, assess, and provide work to individuals, through the administration and enforcement of this chapter and Chapter 1, Title 40 and any regulation promulgated under this chapter.

Section 40-79-20. (A) As used in this chapter:

(1) 'Alarm business' means an entity that is licensed by the South Carolina Contractor's Licensing Board to engage in the burglar or fire alarm system business, or both.

(2) 'Bid' means an offer to furnish labor, equipment or materials, or other services regulated by this chapter.

(3) 'Board' means the South Carolina Contractors Licensing Board.

(4) 'Burglar alarm system business' means a person, firm, association, partnership, corporation, or other legal entity authorized by law and approved by the board that designs, installs, services, maintains, alters, or monitors, burglar alarm systems and heat and smoke sensors installed within a burglar alarm system; a burglar alarm system detects intrusion, burglary, and breaking or entering but does not include home health care signaling devices.

(5) 'Contractor' means an entity licensed to engage in the burglar or fire alarm system business.

(6) 'Department' means the Department of Labor, Licensing and Regulation.

(7) 'Entity' means a sole proprietorship, partnership, limited liability partnership, limited liability company, association, joint venture, cooperative, corporation, or other legal entity authorized by law and approved by the board.

(8) 'Fire alarm system business' means an individual, firm, association, partnership, corporation, or other legal entity authorized by law and approved by the board that designs, installs, services, maintains, or alters fire alarm systems.

(9) 'Individual' means a natural person.

(10) 'Installs' means activity or work which involves the set-up, installation, or connection of alarm system equipment in any manner to a client's property.

(11) 'Licensee' means an alarm business that has been issued a license by the board pursuant to this chapter.

(12) 'Primary qualifying party' means a qualifying party who is an owner, partner, or officer of a burglar alarm system business, or a full-time employee holding a managerial or supervisory position within the alarm system business and who qualifies the licensee to engage in the burglar or fire alarm business and is registered as a qualifying party with the department in accordance with this chapter.

(13) 'Qualifying party' means an individual, owner, partner, officer, or employee of an alarm system business who has met the necessary requirements of a qualifying party and is registered with the department in accordance with this chapter.

(14) 'Registered' means an owner, partner, principle officer, qualifying party, or registered employee of a burglar 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, monitor, 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.

(15) 'Registered employee' means an individual of an alarm system business who has not met the requirements of a qualifying party and is employed more than thirty days in any given calendar year and is registered with the department in accordance with this chapter.

Section 40-79-30. It is unlawful for a person to practice in the alarm system business in this State without being licensed in accordance with this chapter.

Section 40-79-40. Board members from the general public may be nominated by an individual, group or association, and must be appointed by the Governor in accordance with Section 40-1-45.

Section 40-79-50. The Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, clerical, secretarial, and license renewal operations and activities of the board in accordance with Section 40-1-50.

(1) All license fees must be submitted to the department every two years or for a period to be determined by the board.

(2) Initial license fees are:

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

(b) fifty dollars for each branch office;

(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 qualifying party certificate;

(b) fifty dollars for each branch office;

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

(4) Late renewal fees must be added on the day following the expiration date of the license and are:

(a) one hundred dollars for up to thirty days;

(b) one hundred fifty dollars for up to sixty days;

(c) one hundred seventy-five dollars for up to ninety days.

A person who fails to renew within ninety days must apply for initial licensure to be reinstated.

(5) Replaced, lost, or destroyed license and certificate fees are:

(a) ten dollars for replacement of lost or destroyed license;

(b) ten dollars for replacement of lost or destroyed certificate;

(6) An applicant for examination shall pay the applicable examination fee directly to the provider.

Section 40-79-60. The board may adopt rules governing its proceedings and may promulgate regulations necessary to carry out the provisions of this chapter.

Section 40-79-70. In addition to the powers and duties provided in Section 40-1-70, the board may:

(1) establish a time limit beyond which an initial complaint may not be considered;

(2) order remedial action to be taken by an entity or individual found in violation of this chapter or a regulation promulgated pursuant to this chapter;

(3) establish procedures for receiving and investigating initial complaints which protect the anonymity of the person filing the initial complaint in appropriate situations;

(4) delegate the authority to the department to request any alarm business owner or registered employee to submit an updated criminal background check when there is reason to believe that a change in the individual's background record has occurred; and

(5) by regulation, establish requirements for the implementation of this chapter as the board considers necessary.

Section 40-79-80. The South Carolina Department of Labor, Licensing and Regulation shall investigate complaints and violations of this chapter as provided for in Section 40-1-80.

Section 40-79-90. The results of an investigation may be presented to the board and any subsequent hearing must be conducted in accordance with Section 40-1-90.

Section 40-79-100. (A) The department may refer any reports of violations of this chapter and Article 1, Chapter 1 of this title or any reports of violations of regulations promulgated under this chapter directly to the board or may issue administrative citations and cease and desist orders in person or by certified mail and may assess administrative penalties against any entity or individual, including unlicensed contractors, for violations of this chapter as specified by the board.

(B) Separate citations may be issued and separate administrative penalties may be assessed for each violation; however, no more than two thousand five hundred dollars in administrative penalties may be assessed against an entity or an individual per day.

(C) Administrative penalties authorized under this section are separate from and in addition to all other civil or criminal remedies.

(D) Administrative penalties assessed pursuant to this section may not exceed these limits:

(1) for a first offense, not more than five hundred dollars;

(2) for a second offense in a five-year period, the citation must be referred to the board for action in accordance with Section 40-79-120.

(E) An entity or individual assessed administrative penalties may appeal those penalties to the board within fifteen days of receipt of the citation. If an appeal is filed, the department shall schedule a hearing before the board, which shall make a determination in the matter. If no appeal is filed, the citation is deemed a final order and the administrative penalties must be paid within thirty days of receipt of the citation. Unless otherwise provided for by law or unless otherwise agreed to by the parties involved, a hearing to review a final ruling of the board must occur within thirty days of the final ruling of the board.

Section 40-79-110. (A) The board may impose disciplinary action authorized by this chapter and Section 40-1-110 or any regulation promulgated under this chapter, upon a licensee, branch office, qualifying party, or registered employee if found guilty of any of the following:

(1) permitting an employee to engage in an alarm system business when not properly certified or registered as a qualifying party or registered employee;

(2) wilfully failing or refusing to render service to a client as agreed between the parties and for which compensation has been paid and rendered in accordance with the agreement of the parties;

(3) failing to maintain the required Certificate of Comprehensive General Liability Insurance;

(4) obtaining a license or registration by fraud or deceit;

(5) engaging negligence, incompetence, or misconduct in the practice of the alarm business profession;

(6) abiding or abetting an unlicensed business or individual to evade the provisions of this chapter, Chapter 1, Title 40 or any regulation promulgated under this chapter;

(7) abandoning a job or refusing to perform a job after submitting a contract on work without a legal or a valid excuse, as determined by the board, for the abandonment or refusal;

(8) violating a provision of this chapter or a regulation promulgated under this chapter or any other applicable provision of law;

(9) misrepresenting a material fact by an applicant in obtaining a license or certificate;

(10) engaging in a wrongful or fraudulent act in the alarm business resulting in injury;

(11) conviction of a felony or a crime involving moral turpitude, or pleading nolo contendere to any such offense. A 'felony' includes an offense committed in another jurisdiction which, if committed in this State, is a felony;

(12) failing to list any branch office with the department as required in this chapter;

(13) failing to pay monies when due in excess of five hundred dollars for materials or services rendered in connection with the operation of the alarm business;

(14) engaging or offering to engage in the alarm business or submitting a bid when not properly licensed or while a license is under suspension or in violation of a condition of probation;

(15) failing to obtain a permit if required by a local or state government agency before engaging in a project;

(16) failing to take appropriate corrective action to comply with the provisions of this chapter or any regulations promulgated under this chapter without valid justification within a reasonable period of time after receiving written directive;

(17) failing to comply with an order of the board;

(18) failing to work in accordance with engineering or architectural plans, industry specifications, or local or state building codes or ordinances;

(19) failing to provide pertinent records and documents as requested by the department or board;

(20) failing to comply with a directive of the department;

(21) failing to notify the board of the end of employment of the licensee's qualifying party or registered employee within the applicable time or failing to obtain a substitute qualifying party;

(22) allowing an individual to work in the licensee's alarm business who has access to a client's residence or business and cannot meet the criminal background check requirements of this chapter;

(23) committing a wrongful or fraudulent act as a contractor, including the failure to pay subcontractors or suppliers after drawing payment for work or materials performed or provided by those subcontractors or suppliers; or

(24) committing three or more violations of this chapter or regulations promulgated under this chapter within a three-year period; however, if more than one violation was committed during the course of a single project, these multiple violations must be treated for the purpose of this paragraph as one offense.

(B) Disciplinary action may be taken against an entity or individual that the board determines to be responsible for violations for this chapter regardless of changes in corporate identity or federal employer identification subsequent to the violation. In determining responsibility, the board may consider, but is not limited to, the following criteria:

(1) an individual's participation in management or supervision related to the violation; and

(2) an individual's position as sole proprietor, partner, officer, qualifying party, or registered employee.

(C) The board may, in addition to all other disciplinary actions, require a licensee, certificate holder, or other entity or individual to pay a civil penalty of up to five thousand dollars for each violation of this chapter or of a regulation promulgated under this chapter and may order unlicensed contractors to cease and desist from violating a provision of this chapter.

(D) Upon presentation to the court of common pleas by the department of an affidavit for non-payment of an administrative penalty under a citation which is a final order pursuant to Section 40-79-100 or a civil penalty assessed by the board pursuant to subsection (C), the court shall issue an order for judgment to be filed in the office of the clerk of court.

(E) A license or certificate that is canceled by the department or revoked by the board must be returned to the department within fifteen days of notification by the department.

(F) No sooner than one year after revocation of any license or certificate by the board, the entity or individual that held that license or certificate may apply for another. The applicant must meet all requirements for initial licensure or certification and must appear before the board to present evidence that his practice will not unreasonably endanger the public.

(G) If the department cancels a license, the licensee must apply for initial licensure.

(H) The licensee may complete work in progress if the licensee's license is suspended 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, 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. Unless otherwise provided for by law or unless otherwise agreed to by the parties involved, a hearing to review a final ruling of the board must occur within thirty days of the final ruling of the board.

(J) If a licensee's business is dissolved, for whatever reason, the department shall cancel that license.

(K) The board may revoke, suspend, or restrict an individual license classification without effect to other license classifications.

(L) It is a violation of this chapter for an awarding authority, owner, contractor, or his agent to receive or consider any bids unless the bidder has first obtained the licenses required by this chapter.

Section 40-79-115. The board has jurisdiction over the actions of licenses and former licensees as provided for in Section 40-1-115.

Section 40-79-120. The board may take disciplinary action against a person as provided for in Section 40-1-120.

Section 40-79-130. As provided for in Section 40-1-130, the board may deny a license, certification, or registration to an applicant based on the same grounds for which the board may take disciplinary action against a licensee.

(1) The department may refuse to issue a license or registration to any applicant who has:

(a) failed to meet the minimum qualifications set forth in this chapter or regulations promulgated under this chapter;

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

(c) engaged in the alarm business without a valid license as required under this chapter;

(d) submitted a bid without a valid license when one is required by law;

(e) committed an act, which would be grounds for disciplinary action under this chapter;

(f) submitted false or misleading information;

(g) aided or abetted in the violation of this chapter or a regulation promulgated under this chapter;

(h) been convicted of a crime involving the sale, manufacture, distribution, or transportation of a controlled substance, drug, or narcotic in the last ten years, or involving unlawful breaking or entering, burglary, or larceny or of an offense involving moral turpitude in the last ten years. 'Conviction' means the entry of a plea of guilty or nolo contendere or a verdict rendered in open court by a judge or jury; or

(i) any outstanding monetary judgments related to the alarm business.

(2) A license or registration may not be issued to any applicant who:

(a) had a similar license or certificate revoked by any federal, state, or local jurisdiction. Such an applicant is eligible to apply for licensure, in the board's discretion, or after not less than one year from the date of revocation;

(b) is presently under suspension or on probation by a professional licensing entity in this or any other state or jurisdiction;

(c) has unresolved complaints or charges pending against him before this or any other professional licensing board in this or any other state; or

(d) is currently under sentence, including probation or parole, for a felony, crime of moral turpitude, or other criminal violation committed while engaged in or related to any aspect of the business of contracting.

Section 40-79-140. A license may be denied based upon a person's prior criminal record only as provided for in Section 40-1-140.

Section 40-79-150. A license under investigation for a violation of this chapter or a regulation promulgated under this chapter may voluntarily surrender the license in accordance with Section 40-1-150.

Section 40-79-160. A person aggrieved by a final decision of the board may seek review of the decision in accordance with Section 40-1-160. Unless otherwise provided for by law or unless otherwise agreed to by the parties involved, a hearing to review a final ruling of the board must occur within thirty days of the final ruling of the board.

Section 40-79-170. A person found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170.

Section 40-79-180. All costs, fees, and fines provided for in this chapter, except examination fees, must be paid to and collected by the department in accordance with and subject to the collection and enforcement provisions of Section 40-1-180.

Section 40-79-190. In addition to Section 40-1-190, investigations and proceedings conducted under the provisions of this chapter may be, in the board's discretion, confidential and all communications may be privileged against disclosure in appropriate situations, as determined by the board.

Section 40-79-200. (A) An entity or individual who contracts or offers to contract in this State without a license issued pursuant to this chapter is subject to the provisions of Section 40-1-200.

(B) Charges under this section may be preferred by the board by delivering evidence of a violation to a solicitor or a magistrate having jurisdiction.

Section 40-79-210. In addition to initiating a criminal proceeding for a violation of this chapter, the board may seek civil penalties and injunctive relief in accordance with Section 40-1-210.

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. The certificate must be posted within the branch office.

(2) Each branch office located within the State must have a primary qualifying agent assigned to that location exclusively. The qualifying agent may not be a qualifying agent for any other 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 must be listed or registered, or both, with the department prior to opening the branch office. Registered employees must be listed or registered, or both, with the department within ten 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.

(7) A business solely engaged in alarm monitoring is not required to have a qualifying party.

(C) The following registered employee requirements apply:

(1) All employees of a licensed alarm business must be registered with the department. The licensee must conduct a criminal background check of any applicant for employment and submit the report to the department. The department must be notified of each employee requiring registration by the licensee within fifteen days of employment along with the criminal background check of the new employee.

(2) The department must be notified in writing by the licensee and registered employee of termination of employment for any registered employee within fifteen days after termination. If the licensee or registered employee, or either, fails to notify the department within the fifteen days, disciplinary action may be taken in accordance with 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.

(4) A licensee may employ in this State an individual registered in another state as an alarm business employee for a period not to exceed thirty days in any given calendar year provided 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.

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

(4) 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;

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

(6) pay all fees;

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

(8) 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

(9) 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.

Section 40-79-240. (A) A licensee shall apply to the department for license renewal every two years before the license expiration date on a form prescribed by the board. Renewal applications not postmarked by the expiration date result in a lapsed license. An entity which fails to renew and which continues to engage in the alarm business is deemed to be practicing without a license and subject to the penalties prescribed in this chapter.

(B) An alarm business license not renewed after ninety days from the expiration date must not be considered for renewal, and the license must be canceled. To obtain a license after a license is canceled, the applicant must complete an initial application form and pay the applicable fees. An examination is not required if the qualifying party otherwise satisfies the licensing requirements.

(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 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.

(D) At the first renewal after enactment of this chapter, a licensee licensed as of January 1, 2000, shall elect to subsequently be licensed as a burglar alarm system business, fire alarm system business, or both. Upon the next renewal, an applicant must meet all qualifications for licensure in both businesses, including examination, in order to be licensed in both alarm businesses.

(E) A burglar 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.

(F) A license, certification, or registration may be canceled upon subsequent discovery of facts which if known at the time of issuance of renewal could have been grounds to deny the issuance of renewal, pending review by the board.

Section 40-79-250. (A) Alarm business employees are not required to obtain a Certificate of Comprehensive General Liability Insurance unless required by regulation.

(B) No alarm license may be issued unless the applicant files with the department evidence of a policy of comprehensive general liability insurance providing for the following minimum coverage: one hundred thousand dollars due to bodily injury, death, or destruction of property as the result of the negligent act or acts of the principal insured.

(C) An alarm licensee shall notify the department 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 within fifteen days of the date of cancellation. The cancellation does not affect any liability on the policy, which accrued prior to the date of cancellation. A new policy must be obtained by the alarm business within thirty days of cancellation.

(D) Upon failure of the licensee to notify the department of cancellation of his liability insurance, the license may be canceled and may not be reinstated until a proper insurance certificate has been submitted to the department for approval. An initial application must be filed after thirty days of cancellation of the insurance policy. Examinations are not required if the qualifying party otherwise meets the requirements of this chapter.

(E) The policy must be purchased from an insurer or licensed agent authorized to do business in this State.

Section 40-79-260. (A) The board may grant a license or certificate to an applicant holding a license in good standing in another state or jurisdiction whose requirements for licensure are equal to or greater than those set forth in this chapter as determined by the board.

(B) Applicants for reciprocal licensure may be required to successfully pass the South Carolina Code of Laws Examination regulating the alarm business and must comply with all other license and certificate requirements of this chapter.

Section 40-79-270. (A) No licensee may conduct an alarm business under a name other than the name that appears on the license.

(B) Any licensed alarm business may be a subcontractor to another licensed alarm business who has the contract with a client to engage in alarm work.

(C) No license, certificate, or registration can be used by or loaned to another entity or individual.

Section 40-79-280. (A) Building officials have a duty to refuse to issue a permit to an unlicensed person for work requiring licensure.

It is the duty of a building official, or other authority charged with the duty of issuing building or other similar permits, of any county, incorporated municipality or subdivisions of a county or municipality, to refuse to issue a permit for any undertaking which would classify the applicant as a contractor under this chapter unless the applicant has furnished evidence that he is either licensed as required by this chapter or exempt from these requirements. It is also the duty of the building official, or other authority charged with issuing building or other similar permits, to report to the department the name and address of any entity who, in his opinion, has violated this chapter by bidding or contracting for work which is regulated under this chapter.

(B) Nothing in this chapter prohibits or prevents a county or municipality from exercising its lawful duty to regulate businesses within its jurisdiction.

Section 40-79-290. Any alarm business that does not have a valid license, as required by this chapter, may not bring any action either at law or in equity to enforce the provisions of any contract entered into in violation of this chapter.

Section 40-79-300. (A) A licensee who, voluntarily or involuntarily, is subjected to any provision of the laws of bankruptcy, shall notify the board within fifteen days and provide any and all pertinent information as the board may require.

(B) Where a licensee's business is dissolved, for whatever reason, that license must be canceled.

Section 40-79-310. The provisions of this chapter do not apply to:

(1) an entity that designs, sells, manufactures, or distributes alarm systems or products unless the entity sells, markets, services, or installs alarm systems at a client's residence or business;

(2) an entity that owns and installs an alarm system on property owned or leased for itself;

(3) any alarm device which is installed in a motor vehicle, aircraft, or boat;

(4) battery-powered or one hundred ten volt smoke detectors;

(5) a mechanical contractor who holds an electrical contractor's license and designs, installs, and services a fire alarm system;

(6) anyone that responds to burglar alarm or fire alarm systems; and

(7) camera, card access, or walk-through alarm systems.

Section 40-79-320. If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION 2. This chapter takes effect January 1, 2000.

----XX----

This web page was last updated on Friday, June 26, 2009 at 3:01 P.M.