2012 -- S 2392

=======

LC01246

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- BURGLARY ALARMS

     Introduced By: Senator William A. Walaska

     Date Introduced: February 15, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Sections 5-57-1, 5-57-2, 5-57-11, 5-57-14, 5-57-17, 5-57-19, 5-57-20, 5-57-

1-2

22, 5-57-23, 5-57-30, 5-57-31, 5-57-32, 5-57-33, 5-57-35, 5-57-37, 5-57-38 and 5-57-41 of the

1-3

General Laws in Chapter 5-57 entitled "Burglar and Hold-Up Alarm Businesses" are hereby

1-4

amended to read as follows:

1-5

     5-57-1. Purpose. -- The purpose of this chapter shall be to provide uniform procedures

1-6

and qualifications throughout this state for the licensing of alarm businesses and the issuance of

1-7

identification cards to alarm agents and certain other individuals individual licensing of security

1-8

system contractors, technicians, trainees, sales and central station staff.

1-9

     5-57-2. Definitions. -- For the purpose of this chapter, the following terms, phrases,

1-10

words and their derivations have the meaning given in this chapter. When not inconsistent with

1-11

the context, words used in the plural number include the singular number and words used in the

1-12

singular number include the plural number:

1-13

      (1) "Alarm agent" means any individual employed within this state by an alarm business,

1-14

whose duties include the altering, installing, maintaining, moving, repairing, replacing, selling or

1-15

servicing of an alarm system or responding to or causing others to respond to an alarm system.

1-16

      (2) "Alarm business" means and includes any business, both resident and non-resident,

1-17

engaged in the installation, maintenance, alteration, repair, replacement, or servicing of alarm

1-18

systems or which responds to or causes others to respond to those alarm systems at a protected

1-19

premises within this state. Any "alarm business" licensed under this chapter must maintain a

1-20

twenty-four (24) hour per day service structure, the terms and conditions of which or procedures

2-1

for implementation are established by the licensing authority through rules and regulations.

2-2

      (3) "Alarm system" means an assembly of equipment and devices with or without

2-3

conducting wire (or a single device such as a solid state unit which plugs directly into a 110-volt

2-4

AC line) designed to detect and signal an unauthorized intrusion into premises or to signal an

2-5

attempted robbery at premises and with respect to that signal police or private guards are

2-6

expected to respond. Fire alarm systems and alarm systems which monitor temperature, humidity,

2-7

or any other condition not directly related to the detection of an unauthorized intrusion into

2-8

premises or an attempted robbery at premises are excluded from the provisions of this chapter.

2-9

      (4) "Department" means the division of professional regulation within the department of

2-10

labor and training.

2-11

      (5) "Director" means the director of the department of labor and training.

2-12

      (6) "Licensing authority" means the department of labor and training.

2-13

      (7) "Notify by mail", when used to notify applicant of approval of license or I.D. card; or

2-14

when used to forward a license or permanent I.D. card to a licensee or I.D. card holder means first

2-15

class mail. When used to notify an applicant, or licensee, or I.D. card holder of intent to refuse or

2-16

deny application, or suspend or revoke the license or I.D. card, or to notify a licensee, or

2-17

applicant, or I.D. card holder of final, refusal, denial, suspension, or revocation of that

2-18

application, or license or I.D. card, the term "notify by mail" means certified mail, return receipt

2-19

requested.

2-20

      (8) "Owner" means a person who holds an interest of twenty-five percent (25%), directly

2-21

or indirectly, or more in an alarm business.

2-22

      (9) "Person" means an individual, firm, partnership, corporation, or organization of any

2-23

nature.

2-24

      (10) "Principal corporate officer" means the president, vice president, treasurer, secretary

2-25

and comptroller as well as any other person who performs functions for the corporation

2-26

corresponding to those performed by the preceding officers.

2-27

      (11) "Subscriber" means a person or business, which buys or obtains an alarm system

2-28

and has a contract with an alarm business to monitor and/or service the alarm system.

2-29

     5-57-11. Licensing authority -- Rules and regulations. -- The authority to promulgate

2-30

rules and regulations which are reasonable, proper and necessary to carry out the functions of the

2-31

licensing authority; to enforce the provisions of this chapter; and, to establish procedures for the

2-32

preparation and processing of examinations, applications, license licenses certificates, I.D. cards,

2-33

renewals, appeals, hearings, and rulemaking proceedings shall be vested in the licensing authority

2-34

subject to the approval of the board.

3-1

     5-57-14. Alarm business license required -- Licensing of electricians. -- (a) It is

3-2

unlawful and punishable as provided in section 5-57-41 for any person, including licensed

3-3

electricians, to engage in the alarm business within this state without having first obtained an

3-4

alarm business license from the state licensing authority, subject to subsection (c) of this section;

3-5

provided, that nothing contained in this chapter shall be construed to prohibit an electrician

3-6

licensed pursuant to chapter 6 of this title from installing a burglar or hold-up alarm system; and

3-7

provided, that no electrician licensed pursuant to this section shall install any burglar or hold-up

3-8

alarm system in any bank or other financial institution or in any residential housing with four (4)

3-9

units or less.

3-10

      (b) Authority for the licensing of any electrician shall be vested with the department of

3-11

labor and training which shall:

3-12

      (1) After receipt of an application for a license, shall conduct an investigation to

3-13

determine whether the facts presented in the application are true and shall receive from the

3-14

department of the attorney general all records of criminal information which it has or shall

3-15

receive indicating any criminal activity on the part of the individual signing the application.

3-16

      (2) Deny any application of a person who has been convicted in any jurisdiction of the

3-17

United States of a felony or a misdemeanor if the licensing authority finds that the conviction

3-18

reflects unfavorably on the fitness of the applicant to engage in the alarm business.

3-19

      (c) Every person desiring to be engaged in the alarm business within this state shall

3-20

apply to the licensing authority for a license to operate an alarm business. Any person engaged in

3-21

the alarm business on July 1, 1979 and filing a timely application may continue to engage in the

3-22

alarm business pending a final determination of the application. Any person not having previous

3-23

experience in the alarm business and filing as a new applicant who will be the owner or principal

3-24

officer of the business or branch office in this state shall not engage in the alarm business until

3-25

approval by the licensing authority of his or her alarm business license and I.D. card applications

3-26

for himself or herself and his or her employees.

3-27

     5-57-17. Investigation of license applications Investigation of license applications

3-28

and renewals. -- After receipt of an application for a license or renewal, the licensing authority

3-29

shall conduct an investigation to determine whether the facts presented in the application are true

3-30

and shall receive from the department of the attorney general all records of criminal information

3-31

which it has or receives indicating any criminal activity on the part of the individual signing the

3-32

application. The department of the attorney general shall also submit the fingerprints of the

3-33

individual signing the application to the Federal Bureau of Investigation for review. The

3-34

department of the attorney general shall provide the information subject to the rules and

4-1

regulations promulgated by the attorney general regarding the production of that information.

4-2

     5-57-19. Grounds for denial of applications. -- The licensing authority may deny the

4-3

application for an alarm business license if it finds that the applicant or the individual having the

4-4

authority and the responsibility for the management and operation of the applicant's alarm

4-5

business within the state or the individual whom the applicant relies upon to comply with

4-6

subsection (c) or (f) of section 5-57-16 or any of the applicant's owners, partners or principal

4-7

corporate officers have:

4-8

      (1) Committed any act, which, if committed by a licensee, would be grounds for the

4-9

revocation of a license under section 5-57-25(a);

4-10

      (2)(1) While unlicensed, knowingly and willfully committed or aided and abetted in the

4-11

commission of any act for which a license is required by this chapter; or

4-12

      (3)(2) Been convicted in any jurisdiction of the United States of a felony or a

4-13

misdemeanor if the licensing authority finds that the conviction reflects unfavorably on the fitness

4-14

of the applicant to engage in the alarm business.

4-15

     5-57-20. Procedure for approval or denial of applications. -- (a) The procedure of the

4-16

licensing authority in approving or denying an application shall be as follows:

4-17

      (1) (i) If the application is approved, the licensing authority shall notify the applicant, in

4-18

writing, of the approval, and shall state that if bond is not received with the application, upon

4-19

compliance with section 5-57-21, a license will be issued.

4-20

      (ii) That notification shall state that the issued license shall expire in one year, unless

4-21

renewed in accordance with sections 5-57-22 and 5-57-23, and shall state the time within which

4-22

application for renewal must be made;

4-23

      (2) If the application of the alarm business is denied, the licensing authority shall notify

4-24

the applicant, in writing, and shall state the grounds for denial and advise the applicant of his or

4-25

her right to a hearing on the denial in accordance with the provisions established by the

4-26

Administrative Procedures Act, chapter 35 of title 42. If the grounds for denial are subject to

4-27

correction by the applicant, the notice of denial shall state and the applicant shall be given

4-28

reasonable time after receipt and acknowledgement of that notice, at the discretion of the

4-29

licensing authority (or, upon application, a reasonable period of time), within which to make the

4-30

required correction.

4-31

      (b) If the application of the alarm business is denied, the applicant may schedule a

4-32

hearing to be held before the licensing authority or an officer designated by the licensing

4-33

authority in accordance with the provisions for that hearing as prescribed in the Administrative

4-34

Procedures Act, chapter 35 of title 42.

5-1

     5-57-22. Renewal of licenses. -- Application for renewal of a license must be received by

5-2

the licensing authority on a form provided by the licensing authority no less than thirty (30) days

5-3

prior to the expiration date of the license, subject to the right of the licensing authority to permit

5-4

late filing upon good cause shown. The licensing authority may refuse to renew a license for any

5-5

of the grounds stated in section 5-57-19(1) and it shall promptly notify the licensee of its intent to

5-6

refuse to renew the license. The licensee may, within fifteen (15) days after receipt of the notice

5-7

of intent to refuse to renew a license, request a hearing on that refusal in the manner prescribed in

5-8

section 5-57-20(b). A licensee shall be permitted to continue to engage in the alarm business

5-9

while its renewal application is pending. An investigation of license renewals shall be performed

5-10

as prescribed in section 5-57-17.

5-11

     5-57-23. Application, license, replacement and renewal fees Application, license,

5-12

replacement, renewal and late fees. -- (a) A nonrefundable application fee of one hundred

5-13

twenty-five dollars ($125) seventy-five dollars ($75.00) shall be remitted with each application to

5-14

cover investigation and administrative costs.

5-15

      (b) The licensing authority shall promulgate rules and regulations mandating the term of

5-16

license for each license issued pursuant to this chapter; no license shall remain in force for a

5-17

period in excess of three (3) two (2) years.

5-18

      (c) Any fee for the initial issuance of a license or for the renewal of a license shall be

5-19

determined by multiplying the per annum fee by the term of years of the license. The entire fee

5-20

for the total term of licensure shall be paid prior to issuing the initial license or renewal.

5-21

      (d) The per annum fee for the initial issuance of a license shall be one hundred dollars

5-22

($100.00) which shall be remitted with the application, but which shall be refunded if the

5-23

application of the alarm business is denied or withdrawn before approved.

5-24

      (e) (1) The licensee shall submit a completed renewal application form not later than

5-25

thirty (30) days before the expiration of the license with a fifty dollar ($50.00) nonrefundable

5-26

administrative fee to cover the cost of processing the renewal application.

5-27

      (2) The per annum fee for renewal shall be one hundred dollars ($100.00). If the renewal

5-28

application of the licensee is denied, the annual fee will be refunded.

5-29

      (f)(d) All fees shall be paid into the general fund.

5-30

     (e) Annual fees:

5-31

     (1) Examination fee $ 75.00

5-32

     (2) License and renewal fees:

5-33

     (i) Security System Contractor (SSC) 120.00

6-34

     (ii) Security System Technician (SST) 72.00

6-35

     (ii) Security System Limited (SSL) 24.00

6-36

     (iv) Security System Trainee/Apprentice 24.00

6-37

     (3) Duplicate/lost license 12.00

6-38

     (4) Late renewal (additional fee per month) 12.00

6-39

     (g) There shall be a ten dollar ($10.00) charge for the issuance of a duplicate license to

6-40

replace a lost, damaged original, or renewal license. Fees for the replacement license shall be paid

6-41

into the general fund.

6-42

     5-57-30. Investigation of I.D. card applications Investigation of license applications.

6-43

-- After receipt of an application for an I.D. card, the licensing authority shall conduct an

6-44

investigation to determine whether the facts stated in the application are true and shall receive

6-45

from the department of the attorney general all records of criminal information which it has or

6-46

receives indicating any criminal activity on the part of the applicant for an I.D. card a license. The

6-47

department of the attorney general will also submit the fingerprints of the applicant for an I.D.

6-48

card a license to the Federal Bureau of Investigation for review. The department of the attorney

6-49

general shall provide the information subject to the rules and regulations promulgated by the

6-50

attorney general regarding the production of the information.

6-51

     5-57-31. Time limitation on actions on I.D. card applications Time limitation on

6-52

actions on license applications. -- Action to approve or deny an application of an individual for

6-53

an I.D. card a license shall be taken as expeditiously as possible by the licensing authority, but

6-54

that action shall be taken within ninety (90) days after receipt of the application unless the

6-55

licensing authority requires additional information from the I.D. card license applicant. In that

6-56

event, or if additional facts are required to satisfy the requirements of this chapter, or if the

6-57

applicant has not submitted all the required information, the ninety (90) day period for action by

6-58

the licensing authority shall commence when all the information is received by the licensing

6-59

authority.

6-60

     5-57-32. Request for hearing upon notice of denial of I.D. card application Request

6-61

for hearing upon notice of denial of license application. -- After receipt of written notice from

6-62

the licensing authority of denial of an I.D. card a license, the I.D. card license applicant may

6-63

request a hearing in the same manner and in accordance with the same procedure as that provided

6-64

in section 5-57-20(b).

6-65

     5-57-33. Grounds and procedure for suspension or revocation of I.D. cards Grounds

6-66

and procedure for suspension or revocation of license. -- (a) For purposes of this section only,

6-67

when the term "alarm agent" is used, it also applies to an individual required to obtain a

6-68

permanent I.D. card from the licensing authority or a temporary I.D. card from an alarm business

7-1

subject to this chapter.

7-2

      (b)(a) Alarm agent I.D. cards Licenses may be suspended or revoked by the licensing

7-3

authority in the manner prescribed in this section if the cardholder license holder has:

7-4

      (1) Been found to have violated any of the provisions of this chapter or any rule or

7-5

regulation of the licensing authority if the licensing authority determines that the violation reflects

7-6

unfavorably upon the fitness of the I.D. cardholder license holder to function as an alarm agent;

7-7

      (2) Knowingly and willfully given any material false information to the licensing

7-8

authority in connection with an application for an I.D. card a license or a renewal or reinstatement

7-9

of an I.D. card under this chapter or in the submission of any material fact to the licensing

7-10

authority;

7-11

      (3) Been convicted in any jurisdiction of a felony or a misdemeanor if the licensing

7-12

authority finds that conviction to reflect unfavorably on the fitness of the I.D. cardholder license

7-13

holder to function as an alarm agent.

7-14

      (c)(b) Prior to suspension or revocation of an I.D. card a license, the licensing authority

7-15

shall promptly notify the I.D. cardholder license holder and the alarm business by which the

7-16

cardholder license holder is employed or engaged of the proposed action presenting in reasonable

7-17

detail the ground or grounds for suspension or revocation. The I.D. cardholder license holder may

7-18

request a hearing in the same manner and in accordance with the same procedure as that provided

7-19

in section 5-57-25(b).

7-20

      (d)(c) In the event that the licensing authority suspends or revokes an I.D. card a license,

7-21

the cardholder license holder, upon receipt of the notice of suspension or revocation, shall cease

7-22

to perform any services related to the alarm business.

7-23

      (e)(d) Both the I.D. cardholder license holder and the alarm business which employs him

7-24

or her or engages him or her shall be notified by the licensing authority of final action to suspend

7-25

or revoke an I.D. card the license.

7-26

     5-57-35. Renewal and replacement of I.D. cards -- Notification of changes

7-27

Notification of changes. -- (a) I.D. cards issued by the licensing authority shall be valid for a

7-28

period of two (2) years. An I.D card renewal form must be filed by the cardholder with the

7-29

licensing authority not less than thirty (30) days prior to the expiration of the I.D. card. The fee

7-30

for renewal of an I.D. card shall be fifteen dollars ($15.00) and shall be paid into the general fund.

7-31

      (b) The licensing authority may refuse to renew an I.D. card on any of the grounds stated

7-32

in section 5-57-19(1), and the licensing authority shall promptly notify the I.D. cardholder of its

7-33

intent to refuse to renew the license. The I.D. cardholder may within fifteen (15) days after

7-34

receipt of the notice of intent to refuse to renew an I.D. card, request a hearing on that refusal in

8-1

the same manner and in accordance with the same procedure as that provided in section 5-57-

8-2

20(b).

8-3

      (c) An alarm business shall notify the licensing authority within ten (10) sixty (60) days

8-4

after the death or termination of employment of any of its employees or of any individual

8-5

associated with the alarm business who holds an I.D. card any license issued by it or by the

8-6

licensing authority.

8-7

      (d) There shall be a five dollar ($5.00) charge for the issuance of a duplicate I.D. card to

8-8

replace a lost, damaged, or destroyed original, or renewal I.D. card. Fees for the replacement shall

8-9

be paid into the general fund.

8-10

     5-57-37. Activities of I.D. cardholders after notice of suspension or revocation of I.D.

8-11

card Activities of license holders after notice of suspension or revocation of license. -- After

8-12

an alarm agent a license holder or any other individual required to obtain an I.D. card a license

8-13

under this chapter has received a notice of suspension or revocation of his or her I.D. card license,

8-14

that individual shall not engage in the alarm business unless specifically authorized to do so by

8-15

order of the licensing authority or by order of the superior court.

8-16

     5-57-38. Local governmental regulations of alarm business or alarm agents. -- (a) On

8-17

September 1, 1977, no local governmental subdivision within this state shall enact any ordinance

8-18

or promulgate any rules or regulations relating to the licensing of alarm businesses, alarm agents

8-19

or other individuals or employees of alarm businesses required to obtain an I.D. card a license

8-20

under this chapter.

8-21

      (b) Sixty (60) days after September 1, 1977, any provision of any legislation or rules or

8-22

regulations of any local governmental subdivision within the state requiring the licensing of an

8-23

alarm business or requiring that alarm agents or other individuals employed by or associated with

8-24

an alarm business obtain I.D. cards are no longer effective.

8-25

      (c)(b) The provisions of this chapter are not intended to and do not prevent the legally

8-26

constituted authority of any local governmental subdivision within the state by legislation, rules

8-27

or regulations, and within the police power of that local governmental subdivision, from requiring

8-28

alarm businesses and/or alarm agents employees to register their names, addresses, and license

8-29

certificate number or I.D. card number with the local governmental subdivision within which they

8-30

operate. Those local governmental subdivisions may also require that alarm businesses and alarm

8-31

agents employees shall be given reasonable notice of termination or suspension of licenses and

8-32

I.D. cards. No fee may be charged nor may any application be required by any local

8-33

governmental subdivision for that registration.

9-34

      (d)(c) Although this chapter pre-empts local governmental subdivisions from enacting

9-35

any licensing legislation or promulgating licensing rules or regulations applicable to alarm

9-36

business or alarm agents, local governmental authorities may by legislation or reasonable rules or

9-37

regulations require alarm system users in their jurisdiction to obtain a permit at the time of

9-38

installation and fix a nominal fee for those permits, those fees shall not exceed twenty-five dollars

9-39

($25.00).

9-40

     5-57-41. Penalties for violations. -- (a) Any person found guilty of violating any of the

9-41

following provisions of this chapter shall be subject to a fine not to exceed five hundred dollars

9-42

($500), or imprisonment for a period not to exceed ninety (90) days, or both:

9-43

      (1) Engaging in the alarm business without complying with section 5-57-14;

9-44

      (2) Failure to obtain an I.D. card as required by section 5-57-29;

9-45

      (3) Willful and knowing failure to file or maintain on file the surety bond as required by

9-46

section 5-57-21;

9-47

      (4) Willful and knowing failure of an alarm business to notify its subscribers of

9-48

revocation of its license as required by section 5-57-25(c); and

9-49

      (5) Willful and knowing failure to surrender a license certificate as required by section 5-

9-50

57-27(b) or to surrender an I.D. card as required by section 5-57-34.

9-51

      (b) Any person found guilty of willfully and knowingly submitting false information of a

9-52

material nature in any application for an alarm business license or for an I.D. card, or for renewal

9-53

applications, shall be subject to a fine not to exceed five hundred dollars ($500), or imprisonment

9-54

for a period not to exceed ninety (90) days, or both.

9-55

     5-57-41. Authority of director to assess penalty. – (a) The director may assess an

9-56

administrative penalty on any person, firm or corporation for any violation of the provisions of

9-57

this chapter, after notice and hearing, before and upon the recommendation of the board of

9-58

examination of burglar and hold-up alarm business contractors, technicians and installers in the

9-59

amount of not more than five hundred dollars ($500) for the first offense and not less than five

9-60

hundred dollars ($500) nor more than one thousand dollars ($1,000) for each subsequent offense;

9-61

provided, that the director of labor and training may revoke any burglar and hold-up alarm

9-62

business license for a failure to pay any fine recommended by the board and approved by the

9-63

director of labor and training within thirty (30) days.

9-64

     (b) A copy of the order shall be immediately served upon the licensee personally or by

9-65

registered or certified mail. The order of the board shall be final unless the licensee so charged or

9-66

the complainant shall, within twenty (20) days after receipt of the order, file an appeal with the

9-67

director of labor and training. The appeal will be determined by the director or his or her

9-68

designee. The director may accept or reject, in whole or in part, the recommended order of the

10-1

board. The order of the director shall be final, subject to review by the courts under the

10-2

administrative procedures act, chapter 35 of title 42, and a copy of the order shall be immediately

10-3

served upon the person, firm or corporation assessed.

10-4

     SECTION 2. Sections 5-57-16, 5-57-21, 5-57-27, 5-57-29, 5-57-34 and 5-57-36 of the

10-5

General Laws in Chapter 5-57 entitled "Burglar and Hold-Up Alarm Businesses" are hereby

10-6

repealed.

10-7

     5-57-16. Experience or examination requirements. -- (a) Every alarm business shall

10-8

meet either the experience requirement of subsection (c) of this section or the examination

10-9

requirement of subsection (f) of this section before it may engage in the alarm business.

10-10

      (b) Applicants engaged in the alarm business on September 1, 1977 have three (3)

10-11

months from the date of conditional approval of their alarm business application by the licensing

10-12

authority to comply with the examination requirements of this section; provided, that if within

10-13

that time the applicant is unable to engage an individual meeting the requirements of subsection

10-14

(f) of this section, the licensing authority may for good cause shown, extend for a reasonable

10-15

time, not to exceed ninety (90) days, the period within which the applicant shall comply with this

10-16

section. Upon satisfactory completion of the examination, procedures, content, and passing scores

10-17

for which are established in rules and regulations, the licensing authority shall lift its conditional

10-18

approval and grantits full approval of the company licensed to do business. Applicants who do

10-19

not take the examination must satisfy the experience requirement required by subsection (c) of

10-20

this section.

10-21

      (c) Experience requirement: - In order to comply with this requirement, at least one

10-22

individual who is an owner, officer, partner, manager, or employee of the applicant shall establish

10-23

that he or she was engaged or was employed in an alarm business in sales, installation or service

10-24

for an aggregate period of three (3) years prior to the filing of the application. That individual

10-25

shall file with the licensing authority sworn statements relating to the foregoing facts of at least

10-26

two (2) citizens of the community or communities in which that individual was so engaged or

10-27

employed. The individual whom the applicant relies upon to comply with this subsection is

10-28

required to devote a substantial portion of his or her time to engaging in and/or supervising the

10-29

sale, installation, or servicing of alarm systems on behalf of the applicant.

10-30

      (d) For the purposes of the three (3) year experience requirement of subsection (c) of this

10-31

section, employment by or engagement in an alarm business in one or more communities within

10-32

the state may be aggregated. In the event that the individual whom the applicant relies upon to

10-33

comply with subsection (c) of this section must aggregate his or her past experience in the alarm

10-34

business in two (2) or more states, the individual must submit sworn statements of two (2) or

11-1

more citizens of each state or states as to that experience.

11-2

      (e) If the licensing authority determines that the applicant has not satisfactorily complied

11-3

with subsection (c) of this section or that the prior experience of the individual whom the

11-4

applicant relies upon to comply with subsection (c) of this section is not sufficient to permit the

11-5

applicant to engage in the alarm business, it may require the applicant to comply with subsection

11-6

(f) of this section.

11-7

      (f) Examination requirement: - The licensing authority shall prepare and administer at

11-8

least twice annually an examination or examinations designed to measure an individual's

11-9

knowledge and competence in the alarm business. It may administer separate examinations to test

11-10

an individual's knowledge and competence with respect to the type and nature of the alarm

11-11

business in which the applicant proposes to engage. The individual who qualifies under this

11-12

subsection shall be required to devote a substantial portion of his or her time to engaging in

11-13

and/or supervising the sale, installation, or servicing of alarm systems on behalf of the applicant.

11-14

      (g) In the event that the individual whom the applicant relies upon to comply with

11-15

subsection (c) of this section or to qualify under subsection (f) of this section within a period of

11-16

three (3) years after that compliance or qualification for any reason ceases to perform his or her

11-17

duties on a regular basis, the alarm business shall promptly notify the licensing authority by

11-18

certified mail and shall make every effort to promptly obtain a substitute eligible individual

11-19

acceptable to the licensing authority. If the alarm business fails to obtain a substitute eligible

11-20

individual within six (6) months from and after the disqualification of the licensee, the licensing

11-21

authority may revoke the alarm business license or, for good cause shown, may extend for a

11-22

reasonable time the period for obtaining a substitute qualifying individual or the licensing

11-23

authority may determine, based upon the experience and performance of the alarm business, that

11-24

the alarm business does not need to obtain a substitute qualifying individual.

11-25

     5-57-21. Surety bond. -- (a) No license shall be issued under this chapter until the

11-26

applicant files with the licensing authority a surety bond made payable to the state in the sum of

11-27

ten thousand dollars ($10,000.00) conditioned to recover against the principal, by reason of

11-28

wrongful acts of a material nature knowingly engaged in by the licensee in the conduct of its

11-29

business. No party other than the licensing authority shall recover against the bond required by

11-30

this section. The surety bond must be written by a company authorized to do business in this state

11-31

and approved by the licensing authority with respect to its form, manner of execution and

11-32

sufficiency.

11-33

      (b) Every licensee shall at all times maintain on file with the licensing authority the

11-34

surety bond, in full force and effect, required by this chapter. Knowing and willful failure to do so

12-1

shall be unlawful and punishable as provided in section 5-57-41.

12-2

      (c) A bond executed and filed with the licensing authority pursuant to this chapter shall

12-3

remain in force and effect until the surety has terminated future liability by notice to the licensing

12-4

authority thirty (30) days in advance of termination.

12-5

      (d) The sum of ten thousand dollars ($10,000) in cash may be deposited with the state in

12-6

lieu of the surety bond required by this chapter.

12-7

     5-57-27. Posting of license certificates and notices of license revocation. -- (a) Within

12-8

seventy-two (72) hours after receipt of the license certificate, the licensee shall cause the license

12-9

certificate to be posted and displayed at all times in a conspicuous place in the principal office of

12-10

the licensee within the state. Copies of the license certificate shall also be displayed at all times in

12-11

any other offices within the state where the alarm business transacts business with its customers,

12-12

so that all persons visiting that place or places may readily see the license. Those license

12-13

certificates or copies shall be subject to inspection at all reasonable times by the licensing

12-14

authority.

12-15

      (b) It is unlawful for any person holding a license certificate to knowingly and willfully

12-16

post that license certificate or permit that license certificate to be posted upon premises other than

12-17

those described in the license certificate or to knowingly and willfully alter that license

12-18

certificate. Each license certificate shall be surrendered to the licensing authority within seventy-

12-19

two (72) hours after it is revoked or after the licensee ceases to do business, subject to section 5-

12-20

57-20(b). If, the licensing authority or a court of competent jurisdiction has pending before it any

12-21

matter relating to the renewal, revocation, or transfer of a license, the licensee is not required to

12-22

surrender the license until the matter has been adjudicated and all appeals have been exhausted.

12-23

When the licensee receives final notice that its license is revoked, a copy of that notice shall be

12-24

displayed and posted in close proximity to the license certificate until the licensee terminates its

12-25

operations.

12-26

     5-57-29. I.D. cards -- Requirement -- Application -- Issuance or denial. -- (a) It is

12-27

unlawful and punishable as provided in section 5-57-41 for any individual to function as an alarm

12-28

agent or to perform the duties described in subsections (b) and (c) of this section without first

12-29

obtaining an identification card (referred to as "I.D." card).

12-30

      (b) Owners, principal corporate officers, partners, and managers of all alarm businesses

12-31

shall be required to obtain I.D. cards if they directly engage in selling, installing, altering,

12-32

servicing, moving, maintaining, repairing, replacing, monitoring, responding to, or causing others

12-33

to respond to, alarm systems within the state.

13-34

      (c) Any individual engaged in the alarm business or employed by or associated with an

13-35

alarm business within the state who is not an alarm agent but who has access to confidential

13-36

information relating to a customer or subscriber of an alarm business or who monitors radio

13-37

equipment used in connection with an alarm business must also obtain an I.D. card.

13-38

      (d) Individuals required to obtain an I.D. card under this section shall file a joint

13-39

application for a temporary and permanent I.D. card and upon completion, the alarm business

13-40

shall immediately forward the application form to the licensing authority and shall retain a copy

13-41

of the application in its files. Alarm businesses shall issue temporary I.D. cards in the manner

13-42

prescribed in subsection (g) of this section until the I.D. card applicant obtains a permanent I.D.

13-43

card from the licensing authority.

13-44

      (e) A person engaged in the alarm business on September 1, 1977 has authority to and is

13-45

required to issue to its alarm agents or other individuals required to obtain I.D. cards under this

13-46

section temporary I.D. cards (as provided in subsection (g) of this section) while the application

13-47

of that person for an alarm business license is pending. If that alarm business application is finally

13-48

denied, the alarm business no longer has authority to issue temporary I.D. cards. All temporary

13-49

I.D. cards issued by that alarm business shall become void and shall be returned by the temporary

13-50

I.D. cardholders to the issuer.

13-51

      (f) Application for an I.D. card shall be on a form prescribed by the licensing authority

13-52

and shall include the following:

13-53

      (1) The I.D. card applicant's full name and any other names previously used, current

13-54

residence and business addresses and telephone numbers;

13-55

      (2) Date and place of birth;

13-56

      (3) Whether the I.D. card applicant is applying as an alarm agent or as an individual

13-57

required to obtain an I.D. card under subsection (b) or (c) of this section;

13-58

      (4) A list of all felony and misdemeanor convictions of the I.D. card applicant in any

13-59

jurisdiction;

13-60

      (5) Two (2) classifiable sets of fingerprints recorded in the manner that may be specified

13-61

by the licensing authority;

13-62

      (6) Two (2) recent photographs of a type prescribed by the licensing authority;

13-63

      (7) The name and address of the alarm business, which employs or will employ or

13-64

engage the I.D. card applicant;

13-65

      (8) The application shall include a statement by the alarm business which employs or

13-66

will employ the I.D. card applicant or engage the I.D. card applicant as to whether that alarm

13-67

business:

14-68

      (i) Is licensed under this chapter;

14-69

      (ii) Has a license application pending before the licensing authority; or

14-70

      (iii) Is unlicensed and does not have an application pending before the licensing

14-71

authority but was engaged in the alarm business within the state on September 1, 1977 and

14-72

intends to file a timely application for an alarm business license under this chapter;

14-73

      (9) A statement by the alarm business as to whether it has issued a temporary I.D. card to

14-74

the I.D. card applicant. If the alarm business has issued a temporary I.D. card, the alarm business

14-75

shall state the date of issuance of the card and the card number;

14-76

      (10) The I.D. card applicant's employment record for the prior three (3) years;

14-77

      (11) A statement whether the applicant has been denied an alarm agent, guard or private

14-78

investigator license, permit or I.D. card or business license for an alarm business, guard or private

14-79

investigator business in any jurisdiction and whether that license, permit or I.D. card has been

14-80

revoked;

14-81

      (12) A statement that the I.D. card applicant will inform the licensing authority of any

14-82

material change in the information stated in the I.D. card applicant's form within ten (10) days

14-83

after that change; and

14-84

      (13) Any other information, which the licensing authority may reasonably deem

14-85

necessary to determine whether an applicant for an I.D. card meets the requirements of this

14-86

chapter.

14-87

      (g) A temporary I.D. card shall be issued by an alarm business licensed under this

14-88

chapter to any of its alarm agents or any other individual required to obtain an I.D. card prior to

14-89

the issuance of a permanent I.D. card for this individual by the licensing authority. The form for

14-90

temporary I.D. cards shall be at the discretion of the alarm business, but shall only be with the

14-91

approval of the licensing authority. The form for permanent I.D. cards shall be prescribed by the

14-92

licensing authority and shall include the following information concerning the I.D. cardholder:

14-93

      (1) Full name and signature;

14-94

      (2) An I.D. card number and date of issuance of the card;

14-95

      (3) Date and place of birth;

14-96

      (4) Name and address of the alarm business which employs the applicant or with which

14-97

the applicant is associated;

14-98

      (5) Date of commencement of employment or association with the alarm business; and

14-99

      (6) A recent photograph of the I.D. cardholder.

14-100

      (h) Before issuing a permanent I.D. card, the licensing authority shall require the

14-101

prospective I.D. cardholder to submit on forms provided by the licensing authority the names and

14-102

addresses of two (2) references who can verify the applicant's good moral character and

15-1

competency to install alarms or alarm systems and the names and addresses of employers of the

15-2

prospective I.D. cardholder for the past three (3) years, and shall make reasonable and prudent

15-3

inquiries to determine whether the applicant meets the requirements of this section. If the

15-4

licensing authority has reason to believe that the individual required to obtain a permanent I.D.

15-5

card does not meet the requirements of this section, no permanent I.D. card shall be issued by the

15-6

licensing authority.

15-7

      (i) Any alarm business issuing a temporary I.D. card shall promptly report to the

15-8

licensing authority the name, address, and I.D. card number of the individual to whom it has

15-9

issued a temporary I.D. card.

15-10

      (j) The temporary or permanent I.D. card shall be carried by an individual required to

15-11

obtain an I.D. card under this chapter whenever that individual is engaged in the alarm business

15-12

and shall be exhibited upon request.

15-13

      (k) Application for an I.D. card to the licensing authority shall be accompanied by a

15-14

thirty dollar ($30.00) fee to cover the cost of processing the application and investigating the

15-15

applicant. The fees collected shall be paid into the general fund.

15-16

      (l) The licensing authority may refuse to issue an I.D. card if the I.D. card applicant has

15-17

been convicted of a felony or a misdemeanor in any jurisdiction and the licensing authority finds

15-18

that the conviction reflects unfavorably on the fitness of the applicant to engage in the alarm

15-19

business or to be employed by an alarm business.

15-20

      (m) The permanent I.D. card issued by the licensing authority shall include the items

15-21

listed in subsection (g) of this section and the expiration date of the I.D. card.

15-22

     5-57-34. Nontransferability of I.D. cards. -- No I.D. card issued pursuant to the

15-23

provisions of this chapter shall be transferable. I.D. cards issued by the licensing authority must

15-24

be surrendered to the licensing authority by the I.D. cardholder or employer of the cardholder

15-25

upon termination of employment. A new application for an I.D. card must be submitted to the

15-26

licensing authority if the I.D. cardholder is subsequently employed by another alarm business.

15-27

Temporary I.D. cards issued by alarm businesses must also be surrendered to the alarm business

15-28

issuing that card by the I.D. cardholder upon termination of employment or association with the

15-29

alarm business. Willful and knowing refusal upon request of the licensing authority or the alarm

15-30

business to return an I.D. card is a misdemeanor. No new application or fee shall be required of a

15-31

cardholder who, following voluntary termination, returns to employment with the same alarm

15-32

business if reinstatement takes place within six (6) months of the issuance of the original or

15-33

renewal I.D. card. After notification of reinstatement, the licensing authority shall forward the

15-34

reclaimed cardholder's I.D. card to the employing alarm business for dispersal to the cardholder.

16-1

The re-issued I.D. card shall expire two (2) years from the original date of issue. The break in

16-2

service between employment, termination, and re-employment of the cardholder with the alarm

16-3

business shall be documented on the next application for renewal submitted at the required time

16-4

to the licensing authority.

16-5

     5-57-36. Expiration and renewal during suspension of use of an I.D. card. -- An I.D.

16-6

card shall be subject to expiration and renewal during the period in which the holder of the I.D.

16-7

card is subject to an order of suspension.

16-8

     SECTION 3. Chapter 5-57 of the General Laws entitled "Burglar and Hold-Up Alarm

16-9

Businesses" is hereby amended by adding thereto the following sections:

16-10

     5-57-43. Licenses -- Qualifications. – (a) Security system contractor (SSC) licenses shall

16-11

be issued to any person qualified under this chapter representing himself/herself, individually, or

16-12

as a firm or company engaging in the business of designing, installing, altering, servicing, and/or

16-13

testing security systems, telephone and other types of communications. To qualify for this license,

16-14

one shall pass the examination(s) for any of the security systems described in this chapter and

16-15

shall have held a Rhode Island security systems technician position for at least three (3)

16-16

consecutive years, immediately preceding the date of application. The holder shall be entitled to

16-17

design and/or install security systems for which he or she was granted certification.

16-18

     (b) Security system technician (SST) licenses shall be issued to any person who passes

16-19

the examination(s) created by this chapter for all different kinds of security systems. The holder

16-20

shall be entitled to individually perform the actual work of installing, altering, servicing and/or

16-21

testing the type(s) of security and communication systems for which he or she was granted

16-22

certification. All the work performed by an SST license holder shall be supervised by the holder

16-23

of an SSC license.

16-24

     (c) Security system limited (SSL) licenses shall be issued to anyone engaging in the

16-25

business of monitoring security systems, who have access to confidential customer information

16-26

and cause others to respond and is employed in sales by any Rhode Island SSC-licensed alarm

16-27

business. No applicant shall be required to take an examination.

16-28

     (d) Security system trainee/apprentices shall be required to register with the licensing

16-29

authority after they have been employed by an SSC license holder, but prior to actually

16-30

performing installation work. He or she may install wiring, low voltage surface raceway,

16-31

enclosure, and wiring devices for security systems, under the supervision of the holders of an SST

16-32

or SSC license.

16-33

     (e) The registered security system trainee/apprentice shall not be permitted to make

16-34

connection to, install or service security system devices. No more than two (2) registered security

17-1

system trainees/apprentices shall be supervised by any single SSC or SST license holder.

17-2

     (f) The security system trainee/apprentice shall have been registered as a Rhode Island

17-3

security system trainee/apprentice for a minimum of six (6) months immediately preceding the

17-4

date of application in order to qualify to take the SST examination.

17-5

     (g) No individual shall be required to hold more than one type of license.

17-6

     5-57-44. Licensing of security system contractors. – (a) At any time prior to the

17-7

expiration of six (6) months following July 1, 2012, the authority shall, without examination,

17-8

upon payment of the required fees, issue through the department of labor and training, division of

17-9

professional regulation, an SSC, SST, or SSL license to any applicant who shall present

17-10

satisfactory evidence that he or she has the qualifications for the type and category(ies) of license

17-11

applied for, and who has a minimum of three (3) years of verified continual experience installing,

17-12

altering, servicing, and testing security systems covered by the license, as applicable, in this state

17-13

within five (5) years immediately preceding July 1, 2012. Any applicant for a license under this

17-14

provision must further provide sworn evidence of satisfactory completion of three (3)

17-15

projects/systems for each category for which application is made.

17-16

     (b) Any person qualified to obtain an SSC, SST or SSL license under this section who is

17-17

prevented from making application by reason of service in the armed forces of the United States

17-18

during the six (6) month period following July 1, 2012 shall have three (3) months after discharge

17-19

or release from active duty to make the application.

17-20

     (c) At the time of passage of this section, any individual owner, general partner, or

17-21

principal officer acting on behalf of the burglar and hold-up alarm business that holds a current

17-22

alarm business identification card prior to the enactment of this section shall be issued an security

17-23

system contractor’s license under the subsection 5-57-43(b).

17-24

     (d) At the time of enactment of this section, any person that holds a current alarm agent

17-25

identification card, shall be issued a security system technician’s license under subsection 5-57-

17-26

43(a).

17-27

     5-57-45. Board of criminal identification record checks. – All applications for security

17-28

system licenses authorized by this chapter shall obtain a copy of his/her bureau of criminal

17-29

identification (BCI) record from the attorney general’s office and furnish a copy of it to the

17-30

licensing authority.

17-31

     SECTION 4. This act shall take effect upon passage.

=======

LC01246

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- BURGLARY ALARMS

***

18-1

     This act would comprehensively revise the statutory laws, rules and regulations of the

18-2

burglar alarm/security systems industry.

18-3

     This act would take effect upon passage.

=======

LC01246

=======