HB 933 — Alarm Systems Licensing Act/Revisions.

GENERAL ASSEMBLY OF NORTH CAROLINA H.B.SESSION 2021 H 1 HOUSE BILL 933 Short Title:

933 May 11, 2021 SESSION 2021 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH10471-NBf-90 Short Title:

RepresentativeRepresentatives Boles.Boles and Hardister (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Finance, if favorable, Rules, Calendar, and Operations of the House May 12, 2021 A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS CHANGES TO THE ALARMS SYSTEMS LICENSING ACT.

(2) Installs, Unless otherwise exempt, installs, services, monitors, or responds to electrical, wireless or hardwired electronic or mechanical alarm signal devices, devices and securitysecuritysystems, systems, integrated automation of a residence or business that includes a security element, burglar alarms, monitored access control, or cameras used to detect or observe burglary, breaking or entering, intrusion, shoplifting, pilferage, theft, or other unauthorized or other illegal activity.

This provision shall not apply to a locking device that records entry and exit data and does not transmit the data in real time to an on-site or off-site *DRH10471-NBf-90**H933-v-1* General Assembly Of North Carolina Session 2021 monitoring location, provided the installer is duly licensed by the North Carolina Locksmith Licensing Board.

provided that, for purposes of this subsection, "conviction" means and includes the entry of a plea of guilty, plea of no contest, or a verdict rendered Page 2 DRH10471-NBf-90House Bill 933-First Edition General Assembly Of North Carolina Session 2021 in open court by a judge or jury.jury, including a prayer for judgment continued, adjudication withheld, or equivalent.

– The Except as necessary to support the denial of an application or a disciplinary matter in a contested case, the Board shall keep all information obtained pursuant DRH10471-NBf-90House Bill 933-First Edition Page 3 General Assembly Of North Carolina Session 2021 to this section confidential in accordance with applicable State law and federal guidelines, and the information shall not be a public record under Chapter 132 of the General Statutes.

(1) A person, firm, association or corporation that sells or manufactures alarm electronic securitysecuritysystems, systems, unless the person, firm, association or corporation makes personal solicitations at a residence or business to advise, design, or consult on specific types and specific locations of alarm electronic security system devices, installs, services, monitors, or responds to alarm electronic security systems at or from a protected premises or a premises to be protected and therebytherebyobtains obtains knowledge of specific application or location of the alarm system.

(2) Installation, servicing or responding to fire alarm systems or anyanyalarm alarm device which is installed in a motor vehicle, aircraft or boat;boat.

Page 4 DRH10471-NBf-90House Bill 933-First Edition General Assembly Of North Carolina Session 2021 (c) Each member shall be appointed for a term of three years and shall serve until a successor is installed.

The term of each member, otherthantheAttorneyGeneralorhisdesignee,whoisservingonAugust7,1989,shallterminateotherthantheAttorneyGeneralorhisdesignee,whoisservingon August7,1989,shallterminate on June 30, 1989.

Of the appointments made bybythe the General AssemblyAssemblyupon upon the recommendation of the President of the Senate to begin on July 1, 1989, one member shall be for a term of one year and one member shall be for a term of three years.

Of the appointments made bybythe the General AssemblyupontherecommendationoftheSpeakeroftheHouseofRepresentatives,onemember shall be appointed for a term of two years and one member shall be appointed for a term of three years.

(6) Deny, suspend, or revoke anyanylicense license issued or to be issued under this Chapter to any applicant or licensee applicant, licensee, or registrant who fails to satisfy the requirements of this Chapter or the rules established by the Board.

The denial, suspension, or revocation of such license or registration shall be DRH10471-NBf-90House Bill 933-First Edition Page 5 General Assembly Of North Carolina Session 2021 in accordance with Chapter 150B of this General Statutes of North Carolina;Carolina.

(9) Acquire, hold, rent, encumber, alienate, and otherwise deal with real property in thesamemanneras aprivatepersonorcorporation,subject onlyonlyto toapprovalapproval of the Governor and the Council of State.

(b) The chairman of the Board or his representative designated to be a hearing officer may conduct anyanyhearing hearing called by the board for the purpose of denial, suspension, or revocation of a license or registration under this Chapter.

The position of Director of the Alarm Electronic SecuritySecuritySystems Systems Licensing Board is hereby created within the Department of Public Safety.

However, the report maymaybe be released to the licensee after the investigation is complete but before the report is presented to the Board.

For purposes of this subdivision, "conviction" means and includes the entry of a plea of guilty, plea of no contest,oraverdict enteredinopencourtbyajudgeorjury,includingenteredinopencourtbyajudgeorjury,includingaprayer aprayer for judgment continued, adjudication withheld, or equivalent.

Page 6 DRH10471-NBf-90House Bill 933-First Edition General Assembly Of North Carolina Session 2021 (3) Lack of good moral character or temperate habits.

provided that, for purposes of this subsection subdivision, "conviction" means and includes the entry of a pleaofguilty,pleaof guilty, pleaof no contest, or averdict renderedrenderedin in open courtbycourtbyajudge ajudge orjury;jury,includingaprayerforjudgmentcontinued,adjudicationwithheld, or equivalent.

Any employee that has access to confidential any information detailingthedesign,installation,orapplicationofanydetailingthedesign,installation,orapplicationofanylocationspecific locationspecific electronic security system or that has access to any code, number, or program that would allow the system to be modified, altered, or circumvented.

DRH10471-NBf-90House Bill 933-First Edition Page 7 General Assembly Of North Carolina Session 2021 Employees engaged only in sales or marketing that does not involve any of the above are not required to be registered.

… (d) No license shall be issued under this act unless the applicant files with the Board evidence of a policy of liabilityliabilityinsurance insurance which policy must provide for the following minimum coverage:

… Page 8 DRH10471-NBf-90House Bill 933-First Edition General Assembly Of North Carolina Session 2021 (3) Violated any rule promulgated adopted by the Board pursuant to the authority contained in this Chapter.

(9) Committed anyanyother other act which is a ground for the denial of an application for a license or registration under this Chapter.

DRH10471-NBf-90House Bill 933-First Edition Page 9 General Assembly Of North Carolina Session 2021 (f) The sale, installation, or service of an alarm electronic security system by an unlicensed or unregistered person shall constitute a threat to the public safety, and any contract for the sale, installation, or service of an alarm electronic security system shall be deemed void and unenforceable.

All fees collected pursuant to Chapter 74C of the General Statutes from alarm systems businesses which have not been expended upon JanuaryJanuary1, 1, 1984, shall be transferred to the Board by the Private Protective Services Board for the purpose of defraying the expenses of administering this act.

An alarm electronic security systems installation, maintenance, or monitoring contract entered into with a consumer shall be void if the consumer confirms through records maintained bybythe the Board that the alarm electronic security systems business is not properly licensed or the consumer establishes through records maintained by the Board that the person enticing the consumer to enter into the contract is not properly registered by the Board.

(2) The Board shall charge each new applicant for a license fiftyfiftydollars dollars ($50.00), provided that for purposes of this Article a new applicant is hereby defined as an applicant who did not possess a license on July 1, 1985;

(3) The Board is authorized to charge each licensee an additional amount, not to exceed fiftyfiftydollars dollars ($50.00), on JulyJuly1 1 of any year in which the balance of the Fund is less than twenty-five thousand dollars ($25,000).

(d) The State Treasurer shall invest and reinvest the moneys in the Fund in a manner provided bybylaw. law.

The Board in its discretion, mayuse the Fund for anyanyof of the following purposes:

Page 10 DRH10471-NBf-90House Bill 933-First Edition General Assembly Of North Carolina Session 2021 (3) To sponsor, contract for and to underwrite any and all additional educational training and research projects of a similar nature having to do with the advancement ofthe alarm electronicsecurityelectronicsecuritysystems systems field in North Carolina." SECTION 2.

(a) The license when issued shall be in a form determined bybythe the Board and shall state all of the following:

AseparatecertificatestatingAseparatecertificatestatingthelocationandlicensedqualifyingagent thelocationandlicensedqualifyingagent shall be posted at all times in a conspicuous place in each branch office.

All licensees of with a branch office shall notify the Board in writing before theestablishment, closing, orchanging ofthelocationofanybranchoffice.ofthelocationofanybranch office.