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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 |