Bill 575

                    Current Status

Bill Number:               575
Ratification Number:       248
Act Number                 175
Introducing Body:          Senate
Subject:                   Burglar alarm system business

(A175, R248, S575)

AN ACT TO AMEND ACT 512 OF 1986, RELATING TO THE REGULATION OF THE BURGLAR ALARM SYSTEM BUSINESS, SO AS TO PROVIDE THAT PERSONS ENGAGED IN THE BURGLAR ALARM SYSTEM BUSINESS DO NOT INCLUDE LAW ENFORCEMENT OFFICERS OR INDIVIDUALS WHO MAY RESPOND TO AN ALARM BY HAPPENSTANCE; TO PROVIDE THAT THE APPLICATION FEE FOR BURGLAR ALARM SYSTEM BUSINESS LICENSES MUST BE RETAINED BY THE SOUTH CAROLINA STATE LICENSING BOARD; TO DELETE CERTAIN BONDING REQUIREMENTS AND LANGUAGE PERTAINING TO THESE BONDING REQUIREMENTS OF APPLICANTS FOR LICENSES; TO FURTHER PROVIDE FOR THE REQUIRED CONTENTS OF ADVERTISING OR SOLICITING BURGLAR ALARM BUSINESS; AND TO FURTHER PROVIDE FOR THE QUALIFICATIONS AND REQUIREMENTS FOR LICENSURE.

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

Construction of term

SECTION 1. Section 3 of Act 512 of 1986 is amended to read:

"Section 3. As used in this act, 'burglar alarm system business' means any person, firm, association, partnership, or corporation which installs, services, or responds to electrical, electronic, or mechanical alarm signal devices, burglar alarms, television cameras, or still cameras used to detect burglary, breaking or entering, or intrusion, shoplifting, pilferage, or theft for a fee or other valuable consideration. The term does not include law enforcement officers or individuals who may respond to an alarm by happenstance such as neighbors or passersby. The term does not

include a business or individual which or who merely sells or manufactures alarm systems unless the business services, installs, or responds to alarm systems at the protected premises. The term does not include a person, firm, association, partnership, or corporation which merely owns and installs an alarm system on property owned or leased by itself. The term 'burglar alarm system business' does not include any telephone utility regulated under the provisions of Chapter 9 of Title 58 of the 1976 Code or FCC regulated carriers. The regulation of alarm system businesses does not include installation, servicing, or responding to fire alarm systems or any alarm device which is installed in a motor vehicle, aircraft, or boat. No county or municipality is prevented from requiring within its jurisdiction the registration of the alarm system businesses' names or the filing of copies of board licensure or from adopting an ordinance to require users of alarm systems to obtain permits when usage involves automatic signal transmission to a law enforcement agency."

Retention of application fee

SECTION 2. Section 5(F) of Act 512 of 1986 is amended to read:

"(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 act. The board shall set the application fee by regulation."

Bonding requirement eliminated

SECTION 3. Section 8 of Act 512 of 1986 is amended to read:

"Section 8. (A) Persons registered pursuant to Section 9 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."

Advertising requirements

SECTION 4. Section 11 of Act 512 of 1986 is amended to read:

"Section 11. Every advertisement by a licensee soliciting or advertising for business must contain the name and license number of the business entity as it appears in the records of the board."

Qualifications for licensure

SECTION 5. Section 14 of Act 512 of 1986 is amended to read:

"Section 14. (A) The board shall provide by regulation for an alarm system business license. Applicants for an alarm system business license shall comply with one of the following requirements: successfully pass an oral or written examination considered by the board to measure an applicant's knowledge and competence in the alarm system business or establish to the board's satisfaction three years' experience, within the immediately preceding five years, in alarm systems installation and service.

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

DUI conviction not disqualifying

SECTION 6. Section 5(D)(2) of Act 512 of 1986 is amended to read:

"(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, 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;".

Bond reference deleted

SECTION 7. Section 5(G) of Act 512 of 1986 is amended to read:

"(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 for denial include:

(1) commission of any act which, if committed

by a licensee, would be grounds for the suspension or revocation of a license;

(2) conviction of a crime involving fraud;

(3) lack of good moral character or temperate

habits;

(4) previous denial of a license or previous revocation of a license for cause;

(5) knowingly making any false statement or misrepresentation in his application."

Bond reference deleted

SECTION 8. Section 7 of Act 512 of 1986 is amended to read:

"Section 7. 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 8, or his application lapses."

Bond reference deleted

SECTION 9. Item (12) of Section 10 of Act 512 of 1986 is amended to read:

"(12) failed to maintain the required certificate of liability insurance;".

Time effective

SECTION 10. This act takes effect upon approval by the Governor.