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| To enact sections 4770.01 to 4770.13 of the Revised | 1 |
| Code to require the licensure of persons operating | 2 |
| security systems companies, to provide for the | 3 |
| registration of individuals performing specified | 4 |
| types of security systems work, to provide for the | 5 |
| regulation of security systems companies and | 6 |
| employees, and to establish the Security Systems | 7 |
| Advisory Board in the Department of Commerce. | 8 |
| Section 1. That sections 4770.01, 4770.02, 4770.03, 4770.04, | 9 |
| 4770.05, 4770.06, 4770.07, 4770.08, 4770.09, 4770.10, 4770.11, | 10 |
| 4770.12, and 4770.13 of the Revised Code be enacted to read as | 11 |
| follows: | 12 |
| Sec. 4770.01. As used in this chapter: | 13 |
| (A) "Access control system" means a combination of electronic | 14 |
| equipment and devices that does not emit transmissions requiring | 15 |
| public sector response and that is designed and arranged for the | 16 |
| control of authorized individuals, vehicles, and materials through | 17 |
| entrances and exits of a controlled area or premises. | 18 |
| (B) "Burglar alarm system" means an assembly of equipment and | 19 |
| devices designed and arranged to signal an unauthorized entry or | 20 |
| attempted entry of a person or an object into the area covered by | 21 |
| the system. | 22 |
| (C) "Closed-circuit television" means an in-house television | 23 |
| system in which a transmitter (camera) feeds one or more receivers | 24 |
| (monitors) through a closed cable or other transmission method. | 25 |
| (D) "Fire alarm system" means an assembly of equipment and | 26 |
| devices designed and arranged to signal a fire. | 27 |
| (E) "Locksmith services" means servicing, installing, | 28 |
| repairing, rebuilding, rekeying, repinning, adjusting, or | 29 |
| installing locks, mechanical or electronic security devices, | 30 |
| annunciation devices not designed to require a response by law | 31 |
| enforcement, or the opening of a lock by a means not intended by | 32 |
| the manufacturer of the device. | 33 |
| (F) "Monitoring" means the retransmission of information | 34 |
| received from a security system to the proper individual as | 35 |
| required by law or as directed by the user of the security system. | 36 |
| (G) "Operator" means an individual who performs the function | 37 |
| of alarm operator, dispatcher, or monitor for a security system. | 38 |
| (H) "Security system" means an assembly of electronic | 39 |
| equipment and devices that provides, as its main purpose, the | 40 |
| protection of life or property and the detection of threats or | 41 |
| violations to the security of the protected premises. "Security | 42 |
| system" includes burglary detection, fire detection, locksmith | 43 |
| services, access control, and closed-circuit television. | 44 |
| (I) "Technician" means an individual who performs the | 45 |
| installation and repair of security systems. | 46 |
| Sec. 4770.02. (A) No person shall operate a company to sell, | 47 |
| install, repair, monitor, or investigate any security system in | 48 |
| this state unless that person is licensed as this chapter | 49 |
| requires. Any person conducting business as a security systems | 50 |
| company in multiple locations in this state need have only one | 51 |
| license that lists the office address of each location within this | 52 |
| state. | 53 |
| (B) Upon payment of the requisite fee, the director of | 54 |
| commerce shall grant appropriate certificates of licensure and | 55 |
| branch office certificates to a licensee. Each location from which | 56 |
| a licensee offers security system services shall display a | 57 |
| certificate of licensure or a branch office certificate as | 58 |
| appropriate. | 59 |
| (C) Any person licensed pursuant to this chapter who changes | 60 |
| the primary mailing address of the company as filed shall notify | 61 |
| the director of any change of address within thirty days of that | 62 |
| change. | 63 |
| (D) Operating a security systems company without a license | 64 |
| pursuant to this chapter is subject to a fine the director | 65 |
| establishes by rule. | 66 |
| Sec. 4770.03. (A) No individual shall sell, lease, rent, | 67 |
| design, plan, install, monitor, maintain, repair, test, or inspect | 68 |
| a security system unless that individual has an appropriate | 69 |
| registration pursuant to this chapter as a technician, | 70 |
| salesperson, or operator in one or more of the following | 71 |
| specialties: access control system, burglar alarm, closed-circuit | 72 |
| television, commercial fire alarm, monitoring, or locksmith. | 73 |
| (B) An individual applying for registration pursuant to this | 74 |
| chapter may apply for multiple categories of registration so long | 75 |
| as the individual meets the qualifications of each category for | 76 |
| which an application is made. The director of commerce shall | 77 |
| facilitate applications and registrations for multiple class | 78 |
| registrations. | 79 |
| (C) Any employee of a security systems company who is not | 80 |
| registered pursuant to this chapter, but who has access to | 81 |
| information in the ordinary course of employment that would allow | 82 |
| that individual to circumvent security systems, shall meet any | 83 |
| background check requirements for registrants established pursuant | 84 |
| to this chapter. | 85 |
| Sec. 4770.04. Any individual registered pursuant to this | 86 |
| chapter shall carry a certificate of registration while servicing, | 87 |
| testing, repairing, or installing a security system for profit and | 88 |
| shall produce the certificate for inspection upon the request of | 89 |
| any code official or other authorized person. | 90 |
| Sec. 4770.05. (A) The director of commerce shall issue a | 91 |
| license or registration, or a renewal of a license or | 92 |
| registration, to any person who files with the director an | 93 |
| application on a form the director provides, pays the appropriate | 94 |
| fee, and meets any other requirements the security systems | 95 |
| advisory board establishes by rule. | 96 |
| (B) The director shall not issue a license to any person who | 97 |
| employs an individual who has been convicted of a felony. | 98 |
| (C) The director may revoke or suspend the license or | 99 |
| registration of any person for any of the following reasons: | 100 |
| (1) Knowingly violating any provision of this chapter; | 101 |
| (2) Engaging in an activity for which the person is not | 102 |
| licensed or registered or permitting another person to engage in | 103 |
| an activity for which that person is not licensed or registered; | 104 |
| (3) Negligence or incompetence; | 105 |
| (4) Knowingly misrepresenting, making false promises, or | 106 |
| dishonest or illegal dealing; | 107 |
| (5) A continued course of misrepresentation or making false | 108 |
| promises individually, through employees or agents, through | 109 |
| advertising or otherwise; | 110 |
| (6) Failure to notify the director of any change of primary | 111 |
| business address as this chapter requires; | 112 |
| (7) Failure to complete any apprenticeship program required | 113 |
| by rule for the holder of a provisional license. | 114 |
| (D) No person, while under suspension or revocation of a | 115 |
| license or registration, may be associated with any company | 116 |
| licensed under this chapter. | 117 |
| Sec. 4770.06. (A) There is hereby established in the | 118 |
| department of commerce the security systems advisory board, | 119 |
| consisting of seven voting members, to include the state fire | 120 |
| marshal, the superintendent of the highway patrol, and five | 121 |
| members the governor appoints. One of the appointed members shall | 122 |
| represent businesses that provide monitoring services, one shall | 123 |
| have a primary business of providing locksmith services, one shall | 124 |
| be a consumer, and two shall be individuals who are registered | 125 |
| pursuant to this chapter and who have at least five years | 126 |
| experience in the security systems industry. No two members of the | 127 |
| board may be employed by the same security systems company. | 128 |
| (B) Of the initial appointments to the security systems | 129 |
| advisory board, two shall be for terms of four years, two shall be | 130 |
| for terms of three years, and one shall be for a term of two | 131 |
| years. Thereafter, each term shall be for four years, ending on | 132 |
| the same day of the same month as the term that it succeeds. Each | 133 |
| member shall hold office from the date of appointment until the | 134 |
| end of the term for which appointed. Vacancies shall be filled in | 135 |
| the manner provided for original appointments. A member appointed | 136 |
| to fill a vacancy prior to the expiration of a term shall hold | 137 |
| office for the remainder of that term. A member shall continue in | 138 |
| office subsequent to the expiration of the term until the member's | 139 |
| successor takes office. No member may be appointed for more than | 140 |
| two consecutive terms of four years. | 141 |
| (C) The members of the board may not be compensated, but | 142 |
| shall be reimbursed for actual expenses reasonably incurred in the | 143 |
| performance of their duties. | 144 |
| Sec. 4770.07. (A) The security systems advisory board shall | 145 |
| adopt rules pursuant to Chapter 119. of the Revised Code that do | 146 |
| all of the following: | 147 |
| (1) Establish application procedures and overall requirements | 148 |
| for applicants for licensure and registration, including | 149 |
| requirements for initial licensure or registration and renewal of | 150 |
| licensure or registration, to include training requirements based | 151 |
| on measurable objectives with testing to ensure proficiency for | 152 |
| each of the following specialties: access control systems | 153 |
| technician, burglar alarm and fire alarm operator, burglar alarm | 154 |
| systems technician, closed-circuit television technician, | 155 |
| commercial fire alarm technician, locksmith, security systems | 156 |
| salesperson, and compliance agent. | 157 |
| (2) Establish procedures to conduct employee background | 158 |
| checks and to process applications; | 159 |
| (3) Establish and implement standards for the operation of | 160 |
| security systems companies; | 161 |
| (4) Establish standards for the operation of schools and | 162 |
| instructors for continuing education requirements the board | 163 |
| establishes; | 164 |
| (5) Establish the requirements for the compliance agent that | 165 |
| a licensed company is required to designate and specify the | 166 |
| responsibilities of that agent; | 167 |
| (6) Specify information that the director shall collect and | 168 |
| maintain as part of a registry of security system personnel and | 169 |
| applicants for registration and licensure; | 170 |
| (7) Establish procedures for hearing appeals from the | 171 |
| director's actions and decisions; | 172 |
| (8) Establish the amount of fees required by this chapter and | 173 |
| the rules adopted pursuant to it; | 174 |
| (9) Designate the crimes that relate to the performance of a | 175 |
| licensee or registrant, to include dishonesty and corruption, that | 176 |
| disqualify a person from holding a license or being registered | 177 |
| pursuant to this chapter. | 178 |
| (B) The board shall not adopt any rule that unreasonably | 179 |
| restricts competition or the availability of services requiring | 180 |
| licenses pursuant to this chapter or unnecessarily increases the | 181 |
| cost of services without a corresponding benefit. | 182 |
| Sec. 4770.08. (A) The director of commerce may enforce this | 183 |
| chapter irrespective of the place or location in which a violation | 184 |
| occurs, and upon the complaint of any person or on the director's | 185 |
| own initiative. The director may cause to be investigated the | 186 |
| business and business methods of any licensed or unlicensed | 187 |
| person, registered or unregistered person, employee, or applicant | 188 |
| for a license or registration. | 189 |
| (B) To enforce this chapter and conduct any investigation | 190 |
| authorized by it, the director may subpoena any person in this | 191 |
| state and require the production of any papers the director | 192 |
| determines necessary, administer oaths, and take depositions of | 193 |
| any individuals subpoenaed. The director may employ field | 194 |
| investigators and administrative staff as needed to carry out the | 195 |
| purposes of this chapter. | 196 |
| (C) The director, acting pursuant to Chapter 119. of the | 197 |
| Revised Code and within guidelines the security systems advisory | 198 |
| board establishes by rule, may take disciplinary action against | 199 |
| any licensee, registrant, or any unlicensed or unregistered person | 200 |
| who violates this chapter. | 201 |
| (D) The director may receive any record check information | 202 |
| directly from the United States department of justice. | 203 |
| Sec. 4770.09. The director of commerce, with the advice of | 204 |
| the security systems advisory board, annually shall file a report | 205 |
| with the governor, the president of the senate, and the speaker of | 206 |
| the house of representatives. The report shall provide details | 207 |
| regarding the cost of administering this chapter, the | 208 |
| effectiveness of this chapter in protecting the public interest, | 209 |
| the length of time it takes to conduct criminal background checks, | 210 |
| the type and number of licenses and registrations issued, | 211 |
| enforcement information, and any other information that the | 212 |
| director and advisory board wish to convey. | 213 |
| Sec. 4770.10. (A) The director of commerce may grant licenses | 214 |
| and registrations to persons who are registered or licensed in | 215 |
| states that the security systems advisory board determines by rule | 216 |
| to have registration or licensing requirements that are | 217 |
| approximately equal, in substance and intent, to the requirements | 218 |
| of this state. The director shall register or issue a license to | 219 |
| any such person who files an application on a form the director | 220 |
| provides, pays the appropriate fee, and meets any other | 221 |
| qualifications the board establishes by rule. | 222 |
| (B) A burglar alarm system company or fire alarm system | 223 |
| company located in another state and licensed pursuant to this | 224 |
| chapter is not required to have an office or a compliance agent | 225 |
| with a physical presence in this state if the company has a | 226 |
| representative with a physical presence in this state to receive | 227 |
| notices and forward those notices to the company's compliance | 228 |
| agent. A post office box is not "a representative with a physical | 229 |
| presence in this state." | 230 |
| (C) Notwithstanding any requirement of this chapter to the | 231 |
| contrary, any security systems company or compliance agent | 232 |
| licensed in a state the advisory board determines to have | 233 |
| licensing requirements approximately equal to those of this state, | 234 |
| may perform monitoring in this state if the company or agent files | 235 |
| an application with the director of commerce on the form the | 236 |
| director provides and pays the appropriate fee. | 237 |
| Sec. 4770.11. No municipal corporation, county, or township | 238 |
| may enact any ordinance that conflicts with this chapter. This | 239 |
| restriction shall not be construed to prohibit any political | 240 |
| subdivision from enacting an ordinance that establishes regulatory | 241 |
| schemes designed to prevent false alarm dispatches, schemes that | 242 |
| require the issuance of permits to security system users, or | 243 |
| penalties to users for excessive false alarm dispatches. Nothing | 244 |
| in this chapter shall be construed to prevent a political | 245 |
| subdivision from levying a business license fee, business or | 246 |
| occupation tax, or other tax upon a security systems company | 247 |
| provided that any fees or taxes are levied on all other types of | 248 |
| businesses within its boundaries and are based on the physical | 249 |
| presence of the business. Nothing in this chapter shall prevent a | 250 |
| political subdivision from licensing or regulating a person | 251 |
| licensed or registered under this chapter when that person is | 252 |
| engaged in activities that are not related to security systems or | 253 |
| are not governed by this chapter. | 254 |
| Sec. 4770.12. The director of commerce shall deposit all | 255 |
| money collected under this chapter in the state treasury to the | 256 |
| credit of the security systems fund, which is hereby created. | 257 |
| Money credited to the fund shall be used solely to pay costs | 258 |
| associated with the administration of this chapter and the rules | 259 |
| adopted under it. | 260 |
| Sec. 4770.13. This chapter does not apply to any of the | 261 |
| following: | 262 |
| (A) A person licensed as an engineer or architect who designs | 263 |
| or plans security systems; | 264 |
| (B) A person who services or installs, repairs, rebuilds, | 265 |
| rekeys, repins, or adjusts locks in or on safes or vaults; | 266 |
| (C) A licensed electrician who installs conduit and or wire | 267 |
| for a system if the electrician does not connect any device or | 268 |
| have access to plans or designs for the complete system. | 269 |
| Section 2. Sections 4770.02 and 4770.03 of the Revised Code | 270 |
| take effect four hundred eighty days after the effective date of | 271 |
| this act. | 272 |
| Section 3. Not later than thirty days after the effective | 273 |
| date of this act, the Governor shall make appointments to the | 274 |
| Security Systems Advisory Board. Notwithstanding section 4770.06 | 275 |
| of the Revised Code, persons appointed to the Board during the two | 276 |
| years following the effective date of this act need not be | 277 |
| registered as this act requires. | 278 |
| Section 4. Not later than one hundred eighty days after the | 279 |
| appointment of all initial members to the Security Systems | 280 |
| Advisory Board, the Board shall adopt the rules this act requires. | 281 |