2012 -- S 2392 SUBSTITUTE A AS AMENDED

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LC01246/SUB A/2

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- BURGLARY ALARMS

     Introduced By: Senator William A. Walaska

     Date Introduced: February 15, 2012

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

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

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

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

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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 the issuance of

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

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

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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 with or without

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

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

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

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

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

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

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

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labor and training.

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

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

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

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

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

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

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

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

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or indirectly, or more in an alarm business.

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

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nature.

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

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

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

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

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

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

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

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

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subject to the approval of the board.

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

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unlawful and punishable as provided in section 5-57-41 for any person to engage in the alarm

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business within this state without having first obtained an alarm business license from the state

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licensing authority, subject to subsection (c) of this section; provided, that nothing contained in

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this chapter shall be construed to prohibit an electrician licensed pursuant to chapter 6 of this title

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from installing a burglar or hold-up alarm system; and provided, that no electrician licensed

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pursuant to this section shall install any burglar or hold-up alarm system in any bank or other

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financial institution or in any residential housing with four (4) units or less.

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

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labor and training which shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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for himself or herself and his or her employees.

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

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

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

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

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

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

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

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

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

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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 license if it finds that the applicant or the individual having the

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

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

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

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

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

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of the applicant to engage in the alarm 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 application of the alarm business is denied, the licensing authority shall notify

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

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

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

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

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

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

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required correction.

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

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

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

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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 alarm business

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

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as prescribed in section 5-57-17.

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

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

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

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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) two (2) 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 is denied or withdrawn before 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)(d) All fees shall be paid into the general fund.

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     (e) Annual fees:

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     (1) Examination fee $ 75.00

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     (2) License and renewal fees:

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     (i) Security System Contractor (SSC) 120.00

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     (ii) Security System Technician (SST) 72.00

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     (ii) Security System Limited (SSL) 24.00

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     (iv) Security System Trainee/Apprentice 24.00

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     (3) Duplicate/lost license 12.00

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

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

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

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

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

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

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

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

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

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attorney general regarding the production of the information.

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

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

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

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

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

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

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

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

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authority.

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

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

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

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

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in section 5-57-20(b).

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

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

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

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

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subject to this chapter.

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

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

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

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

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

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

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

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

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authority;

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

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

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holder to function as an alarm agent.

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

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

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

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

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

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in section 5-57-25(b).

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

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

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to perform any services related to the alarm business.

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

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

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or revoke an I.D. card the license.

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

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

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

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

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

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

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

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

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

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

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20(b).

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

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

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

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licensing authority.

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

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

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be paid into the general fund.

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

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

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

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

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

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

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

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

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

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

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under this chapter.

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

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

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

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

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

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

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

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

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

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

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

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

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governmental subdivision for that registration.

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

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

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

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

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

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($25.00).

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

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

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

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

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

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

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section 5-57-21;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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served upon the person, firm or corporation assessed.

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

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

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repealed.

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     5-57-16. Experience or examination requirements. -- (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 full approval of the company licensed to do business. Applicants who do

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

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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

10-30

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

10-31

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

10-32

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

10-33

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

10-34

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

11-1

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

11-2

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

11-3

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

11-4

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

11-5

(f) of this section.

11-6

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

11-7

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

11-8

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

11-9

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

11-10

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

11-11

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

11-12

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

11-13

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

11-14

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

11-15

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

11-16

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

11-17

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

11-18

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

11-19

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

11-20

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

11-21

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

11-22

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

11-23

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

11-24

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

11-25

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

11-26

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

11-27

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

11-28

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

11-29

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

11-30

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

11-31

sufficiency.

11-32

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

11-33

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

11-34

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

12-1

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

12-2

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

12-3

authority thirty (30) days in advance of termination.

12-4

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

12-5

lieu of the surety bond required by this chapter.

12-6

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

12-7

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

12-8

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

12-9

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

12-10

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

12-11

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

12-12

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

12-13

authority.

12-14

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

12-15

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

12-16

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

12-17

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

12-18

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

12-19

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

12-20

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

12-21

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

12-22

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

12-23

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

12-24

operations.

12-25

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

12-26

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

12-27

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

12-28

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

12-29

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

12-30

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

12-31

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

12-32

to respond to, alarm systems within the state.

12-33

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

12-34

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

13-1

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

13-2

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

13-3

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

13-4

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

13-5

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

13-6

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

13-7

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

13-8

card from the licensing authority.

13-9

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

13-10

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

13-11

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

13-12

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

13-13

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

13-14

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

13-15

I.D. cardholders to the issuer.

13-16

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

13-17

and shall include the following:

13-18

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

13-19

residence and business addresses and telephone numbers;

13-20

      (2) Date and place of birth;

13-21

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

13-22

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

13-23

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

13-24

jurisdiction;

13-25

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

13-26

by the licensing authority;

13-27

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

13-28

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

13-29

engage the I.D. card applicant;

13-30

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

13-31

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

13-32

business:

13-33

      (i) Is licensed under this chapter;

14-34

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

14-35

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

14-36

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

14-37

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

14-38

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

14-39

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

14-40

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

14-41

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

14-42

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

14-43

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

14-44

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

14-45

revoked;

14-46

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

14-47

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

14-48

after that change; and

14-49

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

14-50

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

14-51

chapter.

14-52

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

14-53

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

14-54

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

14-55

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

14-56

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

14-57

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

14-58

      (1) Full name and signature;

14-59

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

14-60

      (3) Date and place of birth;

14-61

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

14-62

the applicant is associated;

14-63

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

14-64

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

14-65

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

14-66

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

14-67

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

14-68

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

15-1

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

15-2

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

15-3

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

15-4

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

15-5

licensing authority.

15-6

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

15-7

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

15-8

issued a temporary I.D. card.

15-9

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

15-10

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

15-11

and shall be exhibited upon request.

15-12

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

15-13

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

15-14

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

15-15

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

15-16

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

15-17

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

15-18

business or to be employed by an alarm business.

15-19

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

15-20

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

15-21

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

15-22

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

15-23

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

15-24

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

15-25

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

15-26

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

15-27

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

15-28

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

15-29

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

15-30

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

15-31

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

15-32

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

15-33

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

15-34

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

16-1

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

16-2

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

16-3

to the licensing authority.

16-4

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

16-5

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

16-6

card is subject to an order of suspension.

16-7

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

16-8

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

16-9

     5-57-43. Licenses -- Qualifications. – (a) Security system contractor corporation (SSCC)

16-10

licenses shall be issued to a firm or corporation engaging in or about to engage in, the business of

16-11

designing, installing, altering, servicing, and/or testing security systems. The holder of an SSCC

16-12

license shall not be eligible to operate more than one SSCC firm at one time.

16-13

     (b) Security system contractor SSC licenses shall be issued to any person qualified under

16-14

this chapter representing himself/herself, individually, or as a firm or company engaging in the

16-15

business of designing, installing, altering, servicing, and/or testing security systems, telephone

16-16

and other types of communications. To qualify for this license, one shall pass the examination(s)

16-17

for any of the security systems described in this chapter and shall have held a Rhode Island

16-18

security systems technician position for at least three (3) consecutive years, immediately

16-19

preceding the date of application. The holder shall be entitled to design and/or install security

16-20

systems for which he or she was granted certification.

16-21

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

16-22

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

16-23

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

16-24

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

16-25

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

16-26

of an SSC license.

16-27

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

16-28

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

16-29

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

16-30

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

16-31

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

16-32

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

16-33

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

16-34

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

17-1

or SSC license.

17-2

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

17-3

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

17-4

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

17-5

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

17-6

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

17-7

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

17-8

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

17-9

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

17-10

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

17-11

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

17-12

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

17-13

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

17-14

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

17-15

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

17-16

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

17-17

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

17-18

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

17-19

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

17-20

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

17-21

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

17-22

discharge or release from active duty to make the application.

17-23

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

17-24

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

17-25

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

17-26

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

17-27

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

17-28

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

17-29

43(a).

17-30

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

17-31

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

17-32

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

17-33

the licensing authority.

18-34

     5-57-46. Board of examiners – Composition – Appointment of members – Policy-

18-35

making role. – (a) There is created in the division of professional regulation, in the department of

18-36

labor and training, a state board of examiners of security professionals which, at all times, shall

18-37

consist of seven (7) qualified electors of the state, appointed by the governor as follows:

18-38

     (1) Four (4) members of the board shall be security systems professionals who shall be

18-39

qualified for licensing under the provisions of this chapter; one of whom shall represent the

18-40

corporations (SSCC); one of whom shall represent the contractors (SSC); one of whom shall

18-41

represent monitoring/sales (SSL); one of whom, with at least two (2) years experience, shall

18-42

represent the technicians (SST);

18-43

     (2) One of whom shall be a member from the police chief association;

18-44

     (3) One of whom shall be from the Providence chamber of commerce to represent the

18-45

public; and

18-46

     (4) One of whom shall be from the Rhode Island alarm and system contractor’s

18-47

association.

18-48

     (b) Each member shall be appointed for a term of two (2) years. (c) Any vacancy on the

18-49

board which occurs for any cause shall be filled by appointment by the governor for the

18-50

remainder of the unexpired term.

18-51

      (d) The board has a policy-making role in the preparation and composition of the

18-52

examinations to be administered by the division. Subsequent to the administration of the

18-53

examinations, the board of examiners shall review the examinations to evaluate their

18-54

effectiveness. The board shall supervise the operation of the division in an advisory capacity in

18-55

promulgating any policy that is necessary to improve the operation of the division in their area of

18-56

expertise. The promulgation of that policy is subject to the approval of the director of the

18-57

department.

18-58

     (e) The director of labor and training has the power to revoke or suspend the certificate or

18-59

license or impose a fine upon the certificate or license holder, for all certificates and licenses

18-60

issued by the division of professional regulation, after a hearing before and upon the

18-61

recommendation of the board of examiners of alarm professionals.

18-62

     SECTION 4. This act shall take effect on September 1, 2012.

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LC01246/SUB A/2

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- BURGLARY ALARMS

***

19-1

     This act would amend certain provisions relative to the licensing of the alarm business

19-2

and creates a state board of examiners of security professionals who shall have a policy-making

19-3

role in exam preparation and elevation of the divisions alarm business licensing.

19-4

     This act would take effect on September 1, 2012.

=======

LC01246/SUB A/2

=======

2012 -- S 2392 H.

SUBSTITUTE A

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- BURGLARY ALARMS

=======

LC01246/SUB A/2

=======

======================================================================

Presented by