2012 -- S 2028

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LC00229

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- LOCKSMITH SERVICE

BUSINESSES

     Introduced By: Senators Tassoni, Lynch, Cote, and Doyle

     Date Introduced: January 11, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. The title of Chapter 5-57 of the General Laws entitled "BURGLAR AND

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HOLD-UP ALARM BUSINESSES" is hereby amended to read as follows:

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     CHAPTER 5-57

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Burglar and Hold-Up Alarm Businesses

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     CHAPTER 57

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BURGLAR AND HOLD-UP ALARM BUSINESSES AND LOCKSMITH SERVICE

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BUSINESSES

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     SECTION 2. Sections 5-57-1, 5-57-2, 5-57-15, 5-57-16, 5-57-19, 5-57-20, 5-57-22, 5-57-

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23, 5-57-24, 5-57-25, 5-57-27, 5-57-29, 5-57-33, 5-57-34, 5-57-35, 5-57-37, 5-57-40 and 5-57-41

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

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hereby amended to read as follows:

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

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

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services and the issuance of identification cards to alarm agents, locksmiths, and certain other

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individuals.

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     It is the clear intent of this chapter to require any business engaging or proposing to

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engage in either the alarm business or locksmithing service business, as defined by this act, in the

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State of Rhode Island to obtain and maintain a separate license for each such business in the

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manner set forth hereunder.

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

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

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

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singular number include the plural number:

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

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

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

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

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

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

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

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

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

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      (3) "Alarm system" means an assembly of equipment and devices (or a single device

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such as a solid state unit which plugs directly into a 110-volt AC line) designed to detect and

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signal an unauthorized intrusion into premises or to signal an attempted robbery at premises and

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with respect to that signal police or private guards are expected to respond. Fire alarm systems

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and alarm systems which monitor temperature, humidity, or any other condition not directly

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related to the detection of an unauthorized intrusion into premises or an attempted robbery at

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premises are excluded from the provisions of this chapter.

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     (4) "Car opening tool" means any tool that is designed by the manufacturer of the tool or

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intended by the user to be used to open any vehicle by means other than that intended by the

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manufacturer of the vehicle.

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     (5) "Change key" means a key planed and cut to operate a specific lock or a group of

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specific locks which all have the same combination of tumblers, pins, or wafers;

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     (6) "Code book or computer code software" means a compilation, in any form, of key

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codes.

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

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of labor and training.

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

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     (9) "Key machine" means any device that is designed to copy or reproduce keys or is

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designed to make original keys.

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

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     (11) "Lock" means any device whose primary function is to prevent or limit movement of

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one object in relation to another object and requires a tool, device, or special knowledge to

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activate or deactivate.

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     (12) "Lock picking tool" means any tool or combination of tools that is designed by the

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manufacturer of the tool or intended by the user to be used to open a lock by means other than

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that which is intended by the manufacturer of the lock to be the normal operation of the lock.

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     (13) "Locksmith" means a person who performs locksmith or locksmithing services to the

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public for compensation and is licensed under this section.

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     (14) "Locksmith services" means and includes:

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     (i) Repairing, rebuilding, rekeying, repining, servicing, adjusting or installing locks,

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mechanical or electronic security devices, safes, vaults or safe deposit boxes; or

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     (ii) Operating a mechanical or electrical security device, safe or vault by means other

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than those intended by the manufacturer.

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     (15) "Locksmithing service company" means and includes any business entity, including

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sole proprietorships, engaging in, providing, or holding themselves out to the public as an

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enterprise providing those products and services set forth in subdivisions (14) and (18) of this

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section. For purposes of interpretation, implementation and enforcement of this chapter the terms

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"locksmithing service company," "locksmith service company," "locksmithing company" and

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"locksmith company" shall be one and the same.

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     (16) "Locksmith tool" means any tool that is designed, or intended by the user to be used,

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to open a mechanical or electrical locking device by a means other than that which is intended by

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the manufacturer for normal operation.

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     (17) "Manipulation key" means any key other than a change key or master key that can

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be variably positioned or manipulated in a keyway to operate a lock. For purposes of this chapter,

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the term manipulation key shall also include wiggle keys;

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     (18) "Master key" means a key planed and cut to operate all locks in a series or group of

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locks, each lock having its own change key and each lock constructed as an act of the series or

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group for operation with the master key. For purposes of this act, submaster keys, grand master

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keys, great grand master keys, emergency keys, maid's master keys, over-riding keys, or any

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other similar keys shall be considered as master keys;

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

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card; or when used to forward license or permanent I.D. card to licensee or I.D. card holder

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

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

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

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

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requested.

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

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directly or indirectly, or more in an alarm business.

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

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any nature.

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

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

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corresponding to those performed by the preceding officers.

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     (23) "Safe-opening tool" means any tool that is designed, or intended by the user to be

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used, to open a safe, safe deposit box or similar object by a means other than that which is

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intended by the manufacturer for normal operation.

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

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

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     (25) "Try-out key" means a manipulation key that may or may not be one of a set of

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similar keys, used for a specific series, keyway, or brand of lock.

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     5-57-15. Contents of applications for licenses Contents of applications for licenses

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for alarm businesses and alarm agents. - (a) Applications for licenses required by the

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provisions of this chapter shall be filed with the licensing authority on a form provided by the

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licensing authority. If the applicant is an individual, the application shall be subscribed and sworn

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to by the individual. If the applicant is a firm or partnership, the application shall be subscribed

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and sworn to by an owner in the case of a firm, and by at least one general partner in the case of a

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partnership. If the applicant is an individual and does not reside, operate any business or is not

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employed within the state or if in the event the applicant is a firm or partnership and no owner or

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general partner resides, operates a business or is employed within the state, then the application

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must also be subscribed and sworn to by an individual having the authority and the responsibility

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for the management and operations of the alarm business within the state. If the applicant is a

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corporation, the application shall be subscribed and sworn to by at least one principal officer of

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the corporation. If the applicant is a corporation and none of its principal officers is responsible

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for the management and operations of the alarm business within the state, the application shall be

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subscribed and sworn to by an individual having the authority and responsibility for the

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management and operations of the alarm business within the state.

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      (b) If the applicant is a corporation, the application shall specify the date and place of its

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incorporation, the location of the applicant's principal place of business, a list of the principal

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officers of the corporation, owners of twenty-five percent (25%) or more of outstanding stock of

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all classes of the corporation, and the business address, residence address and the office or

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position held by each officer in the corporation.

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      (c) The application shall include the following information for each individual required

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to subscribe and swear to it:

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      (1) The individual's full name and address (business and residence);

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      (2) The individual's business telephone number;

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      (3) The individual's date and place of birth;

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      (4) The individual's social security number;

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      (5) The name and address of the individual's present place or places of employment or

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self-employment and the length of time engaged there;

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      (6) A list of all felony and misdemeanor convictions of the individual in any jurisdiction;

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      (7) Two classifiable sets of fingerprints of the individual having the authority and the

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responsibility for the management and operation of the alarm business within the state, recorded

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in any manner that may be specified by the licensing authority; and

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      (8) Whether the individual has ever been denied in any jurisdiction a license or permit to

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engage in the alarm business or has had the license or permit revoked.

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      (d) The application shall include the following information concerning the applicant:

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      (1) The name, address and telephone number of the alarm business and the locations

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where it intends to operate within the state;

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      (2) A statement as to the length of time that the applicant has been engaged in the alarm

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business and where engaged; and the date when the alarm business or businesses commenced

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operation in the state or when the alarm business intends to commence that operation;

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      (3) A statement as to whether, to the best knowledge and information of the individual

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signing the application, and of the owners, partners or principal corporate officers of the

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applicant, including those not residing within the state, have been convicted in any jurisdiction of

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a felony or misdemeanor. If there have been any convictions, then the application must state the

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names of the individuals convicted and the dates and places of the convictions.

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      (e) The licensing authority may require that the application include any other

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information which the licensing authority may reasonably deem necessary to determine whether

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the applicant or individual signing the application meets the requirements of this chapter or to

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establish the truth of the facts presented in the application.

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      (f) Any individual signing a license application must be at least eighteen (18) years of

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age.

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     5-57-16. Experience or examination requirements Experience or examination

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requirements relating to alarm businesses and alarm agents. -- (a) Every alarm business shall

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

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

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

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

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

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

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

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

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

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

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

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who do not take the examination must satisfy the experience requirement required by subsection

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(c) of this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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(f) of this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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application for an alarm business or locksmithing service business license if it finds that the

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applicant or the individual having the authority and the responsibility for the management and

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operation of the respective applicant's alarm business or locksmithing service business within the

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state or the individual whom the applicant relies upon to comply with subsection (c) or (f) of

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section 5-57-16, subsection (c) or (f) of section 15-57-16.1, or any of the applicant's owners,

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partners or principal corporate officers have:

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

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

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

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

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

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

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applicant to engage in the alarm or locksmithing service business.

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

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

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

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

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

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

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

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application for renewal must be made;

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      (2) If the an application of the alarm business or locksmithing service business is denied,

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the licensing authority shall notify the applicant, in writing, and shall state the grounds for denial

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and advise the applicant of his or her right to a hearing on the denial in accordance with the

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provisions established by the Administrative Procedures Act, chapter 35 of title 42. If the grounds

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for denial are subject to correction by the applicant, the notice of denial shall state and the

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applicant shall be given reasonable time after receipt and acknowledgement of that notice, at the

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discretion of the licensing authority (or, upon application, a reasonable period of time), within

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which to make the required correction.

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      (b) If the application of the alarm business or locksmithing service business is denied,

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the applicant may schedule a hearing to be held before the licensing authority or an officer

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designated by the licensing authority in accordance with the provisions for that hearing as

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prescribed in the Administrative Procedures Act, chapter 35 of title 42.

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

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

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

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

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

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

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

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

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locksmithing service business while its renewal application is pending.

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     5-57-23. Application, license, replacement and renewal fees. -- (a) A nonrefundable

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application fee of one hundred twenty-five dollars ($125) shall be remitted with each application

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to cover investigation and administrative costs.

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

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

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period in excess of three (3) years.

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

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

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

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

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

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application of the alarm business or locksmithing service business is denied or withdrawn before

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approved.

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

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

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

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

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

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

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

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

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into the general fund.

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     5-57-24. Transfer for assignment of licenses -- Continuation of business upon

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owner's death. -- (a) No license issued pursuant to the provisions of this chapter shall be

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assigned or transferred, either by operation of law or otherwise.

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      (b) If the license is held by an owner rather than a corporation and that owner dies,

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becomes disabled or ceases to engage in the alarm business, the successor, heir, devisee, or

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personal representative of that owner, within thirty (30) days of the death, disablement, or

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termination of operation by the original licensee, shall apply for an the relevant alarm or

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locksmithing service business license on a form prescribed by the licensing authority. This form

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shall include the same information required by section 5-57-15. The transferee shall be subject to

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the same requirements and procedures prescribed in sections 5-57-16 -- 5-57-21 to the extent the

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sections are applicable. The new applicant may assume that the unexpired portion of the license

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will remain in effect until its expiration date. The applicant shall pay a pro-rated license fee

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established by the licensing authority to include that portion of the license which remains

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unexpired since its last date of issue or renewal.

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      (c) In the event that a sale, assignment, or transfer of an alarm business or locksmithing

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service business, licensed under this chapter is consummated, then the purchaser, assignee, or

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transferee shall be subject to the same requirements and procedures prescribed in sections 5-57-

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15 -- 5-57-21 to the extent those sections are applicable.

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      (d) With good cause, the licensing authority may extend the period of time for filing the

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application required by subsections (b) and (c) of this section.

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     5-57-25. Grounds and procedure for revocation of licenses. -- (a) Licenses for alarm

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businesses or locksmithing service business may be revoked by the licensing authority in the

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manner stated in this section if the licensee or any of its owners, partners, principal corporate

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officers, or the individual having the authority and the responsibility for the management and

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operation of the respective alarm business, or locksmithing service business, within the state are:

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      (1) Found to have violated any of the provisions of this chapter or any rule or regulation

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of the licensing authority which violation the licensing authority determines to reflect unfavorably

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upon the fitness of the licensee to engage in the respective alarm business or locksmithing service

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business;

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      (2) Found to have knowingly and willfully given any false information of a material

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nature in connection with an application for a license or a renewal or reinstatement of a license or

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in a notice of transfer of an alarm business or locksmithing service business licensed under this

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chapter;

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      (3) Found to have been convicted in any jurisdiction of a felony or a misdemeanor if the

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licensing authority determines that the conviction reflects unfavorably on the fitness of the

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applicant to engage in the alarm business or locksmithing service business subject to the license

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in question; or

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      (4) Found to have committed any act while the license was not in effect which would be

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cause for the revocation of a license, or grounds for the denial of an application for a license of an

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alarm business or locksmithing service business.

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      (b) Prior to revocation of a license, the licensing authority shall promptly notify the

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licensee of its intent to issue an order of revocation and shall advise the licensee of his or her right

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to a hearing on the revocation in accordance with the provisions of the Administrative Procedures

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Act, chapter 35 of title 42.

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      (c) Within ninety (90) days after the an alarm business or locksmithing service business

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licensee has exhausted all rights of appeal under the Administrative Procedures Act, or, if the

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licensee does not seek a hearing after receipt of a notice of intent to revoke from the licensing

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authority, then within sixty (60) days after receipt of the notice of intent to revoke, the alarm

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business or locksmithing service business licensee shall notify all of its subscribers within the

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state of that revocation and shall maintain in its records a copy of those notices. The A licensee

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shall cease to perform any services for which it has been licensed under this chapter within sixty

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(60) days of its receipt of the final notice of intent to revoke from the licensing authority.

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      (d) Under circumstances in which the licensing authority determines that the public

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health, welfare, or safety may be jeopardized by the termination of a licensee's services, the

11-3

licensing authority may upon its own motion or upon application by the licensee or any party

11-4

affected by that termination extend the time for the termination of the licensee's operations,

11-5

subject to the reasonable, necessary and proper conditions or restrictions that it deems

11-6

appropriate.

11-7

      (e) After the licensing authority issues a notice of intent to revoke a license, the licensee

11-8

may request that it be permitted to continue to operate subject to the terms of a written order of

11-9

consent issued by the licensing authority, requiring the licensee to correct the conditions stated as

11-10

grounds for revocation in the notice of intent to revoke and imposing reasonable conditions and

11-11

restrictions on the licensee in the conduct of its business. The licensing authority may in its sole

11-12

discretion grant or deny a request and may stay or postpone any proceeding being conducted

11-13

pursuant to subsection (b) of this section. Negotiations for a consent order may be requested at

11-14

any time during revocation proceedings and stay of pending proceedings during those

11-15

negotiations are within the sole discretion of the licensing authority. If revocation proceedings are

11-16

before a court and the licensing authority shall submit the proposed order to the court, which may

11-17

approve or disapprove the proposed order or require modification of the proposed consent order

11-18

before approval.

11-19

      (f) The licensing authority shall enact reasonable rules and regulations for determination

11-20

of whether the licensee has complied with a consent order issued pursuant to subsection (e) of this

11-21

section. If the licensing authority determines that the licensee has failed to comply, it may revoke

11-22

that order and conduct proceedings for the revocation of the license. If the consent order is

11-23

approved by a court, then the licensing authority shall petition that court for vacation of the order.

11-24

The court shall hold a hearing to determine if the order should be vacated. If the court vacates the

11-25

consent order, the licensing authority may conduct proceedings for revocation of the license.

11-26

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

11-27

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

11-28

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

11-29

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

11-30

any other offices within the state where the alarm business or locksmithing service business

11-31

transacts business with its customers, so that all persons visiting that place or places may readily

11-32

see the license. Those license certificates or copies shall be subject to inspection at all reasonable

11-33

times by the licensing authority.

12-34

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

12-35

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

12-36

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

12-37

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

12-38

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

12-39

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

12-40

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

12-41

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

12-42

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

12-43

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

12-44

operations.

12-45

     5-57-29. I.D. cards -- Requirement -- Application -- Issuance or denial Alarm agent

12-46

I.D. cards -- Requirement -- Application -- Issuance or denial. -- (a) It is unlawful and

12-47

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

12-48

perform the duties described in subsections (b) and (c) of this section without first obtaining an

12-49

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

12-50

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

12-51

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

12-52

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

12-53

to respond to, alarm systems within the state.

12-54

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

12-55

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

12-56

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

12-57

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

12-58

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

12-59

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

12-60

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

12-61

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

12-62

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

12-63

card from the licensing authority.

12-64

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

12-65

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

12-66

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

12-67

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

12-68

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

13-1

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

13-2

I.D. cardholders to the issuer.

13-3

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

13-4

and shall include the following:

13-5

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

13-6

residence and business addresses and telephone numbers;

13-7

      (2) Date and place of birth;

13-8

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

13-9

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

13-10

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

13-11

jurisdiction;

13-12

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

13-13

the licensing authority;

13-14

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

13-15

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

13-16

engage the I.D. card applicant;

13-17

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

13-18

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

13-19

business:

13-20

      (i) Is licensed under this chapter;

13-21

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

13-22

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

13-23

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

13-24

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

13-25

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

13-26

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

13-27

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

13-28

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

13-29

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

13-30

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

13-31

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

13-32

revoked;

13-33

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

13-34

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

14-1

after that change; and

14-2

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

14-3

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

14-4

chapter.

14-5

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

14-6

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

14-7

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

14-8

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

14-9

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

14-10

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

14-11

      (1) Full name and signature;

14-12

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

14-13

      (3) Date and place of birth;

14-14

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

14-15

the applicant is associated;

14-16

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

14-17

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

14-18

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

14-19

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

14-20

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

14-21

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

14-22

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

14-23

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

14-24

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

14-25

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

14-26

licensing authority.

14-27

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

14-28

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

14-29

issued a temporary I.D. card.

14-30

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

14-31

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

14-32

and shall be exhibited upon request.

14-33

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

14-34

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

15-1

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

15-2

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

15-3

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

15-4

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

15-5

business or to be employed by an alarm business.

15-6

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

15-7

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

15-8

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

15-9

and procedure for suspension or revocation of alarm agent I.D. cards. -- (a) For purposes of

15-10

this section only, when the term "alarm agent" is used, it also applies to an individual required to

15-11

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

15-12

business subject to this chapter.

15-13

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

15-14

manner prescribed in this section if the cardholder has:

15-15

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

15-16

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

15-17

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

15-18

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

15-19

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

15-20

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

15-21

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

15-22

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

15-23

function as an alarm agent.

15-24

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

15-25

promptly notify the I.D. cardholder and the alarm business by which the cardholder is employed

15-26

or engaged of the proposed action presenting in reasonable detail the ground or grounds for

15-27

suspension or revocation. The I.D. cardholder may request a hearing in the same manner and in

15-28

accordance with the same procedure as that provided in section 5-57-25(b).

15-29

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

15-30

cardholder, upon receipt of the notice of suspension or revocation, shall cease to perform any

15-31

services related to the alarm business.

15-32

      (e) Both the I.D. cardholder and the alarm business which employs him or her or engages

15-33

him or her shall be notified by the licensing authority of final action to suspend or revoke an I.D.

15-34

card.

16-1

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

16-2

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

16-3

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

16-4

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

16-5

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

16-6

locksmithing business. Temporary I.D. cards issued by the respective alarm businesses or

16-7

locksmithing service businesses must also be surrendered to the alarm business or locksmithing

16-8

service business issuing that card by the I.D. cardholder upon termination of employment or

16-9

association with the alarm or locksmithing service business in question. Willful and knowing

16-10

refusal upon request of the licensing authority, or the alarm business or locksmithing service

16-11

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

16-12

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

16-13

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

16-14

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

16-15

reclaimed cardholder's I.D. card to the respective employing alarm business or locksmithing

16-16

service business for dispersal to the cardholder. The re-issued I.D. card shall expire two (2) years

16-17

from the original date of issue. The break in service between employment, termination, and re-

16-18

employment of the cardholder with the relevant alarm business or locksmithing service business

16-19

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

16-20

licensing authority.

16-21

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

16-22

cards issued by the licensing authority shall be valid for a period of two (2) years. An I.D. card

16-23

renewal form must be filed by the cardholder with the licensing authority not less than thirty (30)

16-24

days prior to the expiration of the I.D. card. The fee for renewal of an I.D. card shall be fifteen

16-25

dollars ($15.00) and shall be paid into the general fund.

16-26

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

16-27

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

16-28

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

16-29

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

16-30

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

16-31

20(b).

16-32

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

16-33

death or termination of employment of any of its employees or of any individual associated with

16-34

the alarm business who holds an I.D. card issued by it or by the licensing authority.

17-1

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

17-2

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

17-3

be paid into the general fund.

17-4

     (e) A locksmithing business shall notify the licensing authority within ten (10) days after

17-5

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

17-6

with the locksmithing business who holds an I.D. card issued by it or by the licensing authority.

17-7

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

17-8

card. -- After an alarm agent, locksmith or any other individual required to obtain an I.D. card

17-9

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

17-10

individual shall not engage in the alarm business or locksmithing business in question unless

17-11

specifically authorized to do so by order of the licensing authority or by order of the superior

17-12

court.

17-13

     5-57-40. Reinstatement of a revoked license or I.D. card. -- The licensing authority

17-14

shall have authority to consider a petition for reinstatement of a revoked alarm or locksmithing

17-15

service business license.

17-16

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

17-17

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

17-18

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

17-19

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

17-20

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

17-21

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

17-22

section 5-57-21;

17-23

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

17-24

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

17-25

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

17-26

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

17-27

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

17-28

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

17-29

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

17-30

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

17-31

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

17-32

material nature in any application for a locksmithing business license or for a locksmith I.D. card,

17-33

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

17-34

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

18-1

     (6) Engaging in the locksmithing business without complying with section 5-57-14.1;

18-2

     (7) Failure to obtain an I.D. card as required by section 5-57-29.1.

18-3

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

18-4

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

18-5

     5-57-14.1. Locksmithing Service Business license required. – (a) It is unlawful and

18-6

punishable as provided in section 5-57-41 for any person to engage in the locksmithing service

18-7

business or hold him or herself out to the consuming public within this state without having first

18-8

obtained a locksmith business license from the state licensing authority, subject to subsection (k)

18-9

of this section; provided, that nothing contained in this chapter shall be construed to require those

18-10

entities or parties specifically exempted from the provisions of this license requirement under

18-11

subsection (l) of this section.

18-12

     (b) Persons who are not licensed under this chapter shall not provide any locksmithing

18-13

services in violation of this chapter or any rule adopted pursuant to this chapter.

18-14

     (c) No locksmith may participate in a joint venture to provide equipment or services that

18-15

require licensing under this chapter unless all parties to the joint venture are licensed in

18-16

accordance with this chapter.

18-17

     (d) No locksmith may subcontract the provision of equipment or services requiring a

18-18

license under this chapter to any unlicensed person, firm association, or corporation, except as

18-19

provided in subsection (l) below.

18-20

     (e) No locksmith shall retain as a registered employee any person known not to be of

18-21

good moral character.

18-22

     (f) No person who is not licensed under this chapter shall possess, use, sell, or offer to

18-23

sell any code book, lock picking tool, manipulation key, try-out key, safe opening tool, or car

18-24

opening tool.

18-25

     (g) No person shall sell, offer to sell, or give to any person not licensed under this chapter

18-26

any code book, lock picking tool, manipulation key, try-out key, safe opening tool, or car opening

18-27

tool.

18-28

     (h) No person who is not licensed under this chapter shall design, make, manufacture, or

18-29

install any master key or any system of change keys and master keys.

18-30

     (i) No locksmith shall open any vehicle or real property, whether or not a fee is charged,

18-31

without first obtaining personal identification from the person requesting the service. Such

18-32

personal identification may include, but is not limited to, personal knowledge, a driver's license or

18-33

other photo identification, address, telephone number, reference from any reliable source, or a

18-34

description of specific or unusual items that may be found upon entry. Such information shall be

19-1

recorded on a work order or invoice and shall be made available to a law enforcement officer

19-2

with a properly executed court order at any reasonable time during normal business hours.

19-3

     (j) Notwithstanding any provision of law to the contrary, no locksmith licensed under this

19-4

chapter shall be prohibited from providing locksmithing services because of the manner of

19-5

construction or operation of the lock or because of the location of the lock or application of the

19-6

lock whether the lock is applied to any door, window, hatch, lid, gate, or other opening in or on

19-7

any safe, vault, building, vehicle, aircraft, or boat. It is the intent of the general assembly that the

19-8

provisions of this subsection shall be construed in their broadest possible sense.

19-9

     (k) Every person desiring to be engaged in the locksmith service business within this state

19-10

shall apply to the licensing authority for a license to operate a locksmithing service business. Any

19-11

person engaged in the locksmithing service business on July 1, 2012 and filing a timely

19-12

application may continue to engage in the locksmithing service business so long as such person

19-13

complies with the requirements of section 5-57-16.1 and pending a final determination of the

19-14

application. Any person not having previous experience in the locksmithing service business and

19-15

filing as a new applicant who will be the owner or principal officer of the business or branch

19-16

office in this state shall not engage in the locksmithing service business until approval by the

19-17

licensing authority of his or her locksmithing service business license and I.D. card applications

19-18

for himself or herself and his or her employees.

19-19

     (l) Notwithstanding the provisions of this section, the following persons, firms,

19-20

partnerships, associations, or corporations not offering any other locksmithing services are

19-21

specifically excluded from the requirements of this act:

19-22

     (1) An individual property owner personally installing locks on such owner’s residence or

19-23

other building not open to the public;

19-24

     (2) Property owners, or their agent, maintaining a file of key cutting data for a master key

19-25

system for their property;

19-26

     (3) Persons, sole proprietorships, partnerships, associations, or corporations having and

19-27

using key machines and key blanks for their own use;

19-28

     (4) Retail stores or catalog sales not offering locksmithing services nor selling

19-29

locksmithing tools;

19-30

     (5) Locksmith trade publications or equipment manufacturers or distributors not

19-31

providing direct locksmithing services to the public;

19-32

     (6) Architects and engineers not providing direct sales, adjustment, or installation of

19-33

locks;

20-34

     (7) New and used car dealers cutting keys by code for the products of their affiliated new

20-35

car manufacturer or manufacturers;

20-36

     (8) Tow truck operators opening vehicles for the sole purpose of towing;

20-37

     (9) Auto clubs opening vehicles for the purposes of allowing members of such clubs

20-38

verified access to their vehicles; and

20-39

     (10) Federal, state, or local law enforcement agents or fire and rescue personnel

20-40

performing emergency openings in their official line of duty when a natural person’s life is at

20-41

risk.

20-42

     5-57-15.1. Contents of applications for locksmithing service business licenses and

20-43

locksmiths. – (a) Applications for licenses required by the provisions of this chapter shall be filed

20-44

with the licensing authority on a form provided by the licensing authority. If the applicant is an

20-45

individual, the application shall be subscribed and sworn to by the individual. If the applicant is a

20-46

firm or partnership, the application shall be subscribed and sworn to by an owner in the case of a

20-47

firm, and by at least one general partner in the case of a partnership. If the applicant is an

20-48

individual and does not reside, operate any business or is not employed within the state or if in

20-49

the event the applicant is a firm or partnership and no owner or general partner resides, operates a

20-50

business or is employed within the state, then the application must also be subscribed and sworn

20-51

to by an individual having the authority and the responsibility for the management and operations

20-52

of the locksmithing service business within the state. If the applicant is a corporation, the

20-53

application shall be subscribed and sworn to by at least one principal officer of the corporation. If

20-54

the applicant is a corporation and none of its principal officers is responsible for the management

20-55

and operations of the locksmithing service business within the state, the application shall be

20-56

subscribed and sworn to by an individual having the authority and responsibility for the

20-57

management and operations of the locksmithing service business within the state.

20-58

      (b) If the applicant is a corporation, the application shall specify the date and place of its

20-59

incorporation, the location of the applicant's principal place of business, a list of the principal

20-60

officers of the corporation, owners of twenty-five percent (25%) or more of outstanding stock of

20-61

all classes of the corporation, and the business address, residence address and the office or

20-62

position held by each officer in the corporation.

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     (c) The application shall include the following information for each individual required to

20-64

subscribe and swear to it:

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     (1) The individual's full name and address (business and residence);

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     (2) The individual's business telephone number;

20-67

     (3) The individual's date and place of birth;

21-68

     (4) The individual's social security number;

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     (5) The name and address of the individual's present place or places of employment or

21-70

self-employment and the length of time engaged there;

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     (6) A list of all felony and misdemeanor convictions of the individual in any jurisdiction;

21-72

     (7) Two classifiable sets of fingerprints of the individual having the authority and the

21-73

responsibility for the management and operation of the locksmithing service business within the

21-74

state, recorded in any manner that may be specified by the licensing authority; and

21-75

     (8) Whether the individual has ever been denied, in any jurisdiction, a license or permit to

21-76

engage in the locksmithing service business or has had the license or permit revoked.

21-77

     (d) The application shall include the following information concerning the applicant:

21-78

     (1) The name, address and telephone number of the locksmithing service business and the

21-79

location(s) from which it intends to operate within the state;

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     (2) A statement as to the length of time that the applicant has been engaged in the

21-81

locksmithing service business and where engaged and the date when the locksmithing service

21-82

business or businesses commenced operation in the state or when the locksmithing service

21-83

business intends to commence that operation;

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     (3) A statement as to whether, to the best knowledge and information of the individual

21-85

signing the application, and of the owners, partners or principal corporate officers of the

21-86

applicant, including those not residing within the state, have been convicted in any jurisdiction of

21-87

a felony or misdemeanor. If there have been any convictions, then the application must state the

21-88

name(s) of the individual(s) convicted and the dates and places of the conviction(s).

21-89

     (e) The licensing authority may require that the application include any other information

21-90

which the licensing authority may reasonably deem necessary to determine whether the applicant

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or individual signing the application meets the requirements of this chapter or to establish the

21-92

truth of the facts presented in the application.

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     (f) Any individual signing a license application must be at least eighteen (18) years of

21-94

age.

21-95

     5-57-16.1. Experience or examination requirements relating to locksmithing service

21-96

businesses and locksmiths. -- (a) Every locksmithing service business shall meet either the

21-97

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

21-98

subsection (f) of this section before it may engage in the locksmithing service business.

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     (b) Applicants engaged in the locksmithing service business on January 1, 2007 have

21-100

three (3) months from the date of conditional approval of their locksmithing service business

21-101

application by the licensing authority to comply with the examination requirements of this

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section; provided, that if within that time the applicant is unable to engage an individual meeting

22-1

the requirements of subsection (f) of this section, the licensing authority may, for good cause

22-2

shown, extend for a reasonable time, not to exceed ninety (90) days, the period within which the

22-3

applicant shall comply with this section. Upon satisfactory completion of the examination,

22-4

procedures, content, and passing scores for which are established in rules and regulations, the

22-5

licensing authority shall lift its conditional approval and grant its full approval of the company

22-6

licensed to do business. Applicants who do not take the examination must satisfy the experience

22-7

requirement required by subsection (c) of this section.

22-8

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

22-9

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

22-10

that he or she was engaged or was employed in a locksmithing service business in sales,

22-11

installation or service for an aggregate period of three (3) years prior to the filing of the

22-12

application. That individual shall file with the licensing authority sworn statements relating to the

22-13

foregoing facts of at least two (2) citizens of the community or communities in which that

22-14

individual was so engaged or employed. The individual whom the applicant relies upon to

22-15

comply with this subsection is required to devote a substantial portion of his or her time to

22-16

engaging in and/or supervising the sale, installation, or servicing of locks, locking systems and

22-17

safes on behalf of the applicant.

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

22-19

section, employment by or engagement in a locksmithing service business in one or more

22-20

communities within the state may be aggregated. In the event that the individual whom the

22-21

applicant relies upon to comply with subsection (c) of this section must aggregate his or her past

22-22

experience in the locksmithing service business in two (2) or more states, the individual must

22-23

submit sworn statements of two (2) or more citizens of each state or states as to that experience.

22-24

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

22-25

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

22-26

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

22-27

applicant to engage in the locksmithing service business, it may require the applicant to comply

22-28

with subsection (f) of this section.

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     (f) Examination requirement. The licensing authority shall prepare and administer at least

22-30

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

22-31

and competence in the locksmithing service business. It may administer separate examinations to

22-32

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

22-33

locksmithing service business in which the applicant proposes to engage. The individual who

22-34

qualifies under this subsection shall be required to devote a substantial portion of his or her time

23-1

to engaging in and/or supervising the sale, installation or servicing of locks, locking systems,

23-2

security hardware and safes on behalf of the applicant.

23-3

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

23-4

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

23-5

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

23-6

duties on a regular basis, the locksmithing service business shall promptly notify the licensing by

23-7

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

23-8

acceptable to the licensing authority. If the locksmithing service business fails to obtain a

23-9

substitute eligible individual within six (6) months from and after the disqualification of the

23-10

licensee, the licensing authority may revoke the locksmithing service business license or, for

23-11

good cause shown, may extend for a reasonable time the period for obtaining a substitute

23-12

qualifying individual or the licensing authority may determine, based upon the experience and

23-13

performance of the locksmithing service business, that the locksmithing service business does not

23-14

need to obtain a substitute qualifying individual.

23-15

     5-57-29.1. Locksmith I.D. cards -- Requirement -- Application -- Issuance or denial.

23-16

– (a) It is unlawful and punishable as provided in section 5-57-41 for any individual to function as

23-17

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

23-18

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

23-19

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

23-20

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

23-21

installing, altering, servicing, moving, maintaining, repairing, replacing, monitoring, responding

23-22

to, or causing others to respond to, locks, locking systems or safes within the state.

23-23

     (c) Any individual engaged in the locksmithing business or employed by or associated

23-24

with locksmithing service business within the state who is not a locksmith but who has access to

23-25

confidential information relating to a customer of a locksmithing service business must also

23-26

obtain an I.D. card.

23-27

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

23-28

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

23-29

service business shall immediately forward the application form to the licensing authority and

23-30

shall retain a copy of the application in its files. Locksmithing service businesses shall issue

23-31

temporary I.D. cards in the manner prescribed in subsection (g) of this section until the I.D. card

23-32

applicant obtains a permanent I.D. card from the licensing authority.

23-33

     (e) A person engaged in the locksmithing service business on January 1, 2008 has

23-34

authority to and is required to issue to its locksmiths or other individuals required to obtain I.D.

24-1

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

24-2

the application of that person for a locksmithing service business license is pending. If that

24-3

locksmithing service business application is finally denied, the locksmithing service business no

24-4

longer has authority to issue temporary I.D. cards. All temporary I.D. cards issued by that

24-5

locksmithing service business shall become void and shall be returned by the temporary I.D.

24-6

cardholders to the issuer.

24-7

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

24-8

and shall include the following:

24-9

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

24-10

residence and business addresses and telephone numbers;

24-11

     (2) Date and place of birth;

24-12

     (3) Whether the I.D. card applicant is applying as a locksmith or as an individual required

24-13

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

24-14

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

24-15

jurisdiction;

24-16

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

24-17

by the licensing authority;

24-18

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

24-19

     (7) The name and address of the locksmithing service business which employs or will

24-20

employ or engage the I.D. card applicant;

24-21

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

24-22

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

24-23

locksmithing service business:

24-24

     (i) Is licensed under this chapter;

24-25

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

24-26

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

24-27

but was engaged in the locksmithing service business within the state on January 1, 2008, and

24-28

intends to file a timely application for a locksmith service business license under this chapter;

24-29

     (9) A statement by the locksmithing service business as to whether it has issued a

24-30

temporary I.D. card to the I.D. card applicant. If the locksmithing service business has issued a

24-31

temporary I.D. card, the locksmith business shall sate the date of issuance of the card and the card

24-32

number;

24-33

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

25-34

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

25-35

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

25-36

guard, private investigator business or locksmithing service business in any jurisdiction and

25-37

whether that license, permit or I.D. card has been revoked;

25-38

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

25-39

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

25-40

after that change; and

25-41

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

25-42

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

25-43

     (g) A temporary I.D. card shall be issued by a locksmithing service business licensed

25-44

under this chapter to any of its locksmiths or any other individual required to obtain an I.D. card

25-45

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

25-46

form for temporary I.D. cards shall be at the discretion of the locksmithing service business, but

25-47

shall only be with the approval of the licensing authority. The form for permanent I.D. cards

25-48

shall be prescribed by the licensing authority and shall include the following information

25-49

concerning the I.D. cardholder:

25-50

     (1) Full name and signature;

25-51

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

25-52

     (3) Date and place of birth;

25-53

     (4) Name and address of the locksmithing service business which employs the applicant

25-54

or with which the applicant is associated;

25-55

     (5) Date of commencement of employment or association with the locksmithing service

25-56

business; and

25-57

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

25-58

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

25-59

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

25-60

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

25-61

competency to work as a locksmith and the names and addresses of employers of the prospective

25-62

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

25-63

determine whether the applicant meets the requirements of this section. If the licensing authority

25-64

has reason to believe that the individual required to obtain a permanent I.D. card does not meet

25-65

the requirements of this section, no permanent I.D. card shall be issued by the licensing authority.

25-66

     (i) Any locksmithing service business issuing a temporary I.D. card shall promptly report

25-67

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

25-68

has issued a temporary I.D. card.

26-1

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

26-2

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

26-3

service business and shall be exhibited upon request.

26-4

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

26-5

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

26-6

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

26-7

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

26-8

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

26-9

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

26-10

locksmithing service business or to be employed by a locksmithing service business.

26-11

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

26-12

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

26-13

     5-57-33.1. Grounds and procedure for suspension or revocation of locksmith I.D.

26-14

cards. – (a) For purposes of this section only, when the term locksmith is used, it also applies to

26-15

an individual required to obtain a permanent I.D. card from the licensing authority or a temporary

26-16

I.D. card from a locksmith business subject to this chapter.

26-17

     (b) Locksmith I.D. cards may be suspended or revoked by the licensing authority in the

26-18

manner prescribed in this section if the cardholder has:

26-19

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

26-20

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

26-21

unfavorably upon the fitness of the I.D. cardholder to function as a locksmith;

26-22

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

26-23

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

26-24

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

26-25

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

26-26

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

26-27

function as a locksmith.

26-28

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

26-29

promptly notify the I.D. cardholder and the locksmithing service business by which the

26-30

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

26-31

ground or grounds for suspension or revocation. The I.D. cardholder may request a hearing in the

26-32

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

26-33

25(b).

27-34

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

27-35

cardholder, upon receipt of the notice of suspension or revocation, shall cease to perform any

27-36

services related to the locksmithing service business.

27-37

     (e) Both the I.D. cardholder and the locksmithing service business which employs him or

27-38

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

27-39

revoke an I.D. card.

27-40

     SECTION 4. This act shall take effect upon passage.

=======

LC00229

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- LOCKSMITH SERVICE

BUSINESSES

***

28-1

     This act would add locksmithing service businesses to the chapter regulating burglar and

28-2

hold-up alarm businesses.

28-3

     This act would take effect upon passage.

=======

LC00229

=======