To enact sections 4770.01 to 4770.13 of the Revised Code to require the licensure of persons operating security systems companies, to provide for the registration of individuals performing specified types of security systems work, to provide for the regulation of security systems companies and employees, and to establish the Security Systems Advisory Board in the Department of Commerce.

Section 1. That sections 4770.01, 4770.02, 4770.03, 4770.04, 4770.05, 4770.06, 4770.07, 4770.08, 4770.09, 4770.10, 4770.11, 4770.12, and 4770.13 of the Revised Code be enacted to read as follows:

Sec. 4770.01.  As used in this chapter:

(A) "Access control system" means a combination of electronic equipment and devices that does not emit transmissions requiring public sector response and that is designed and arranged for the control of authorized individuals, vehicles, and materials through entrances and exits of a controlled area or premises.

(B) "Burglar alarm system" means an assembly of equipment and devices designed and arranged to signal an unauthorized entry or attempted entry of a person or an object into the area covered by the system.

(C) "Closed-circuit television" means an in-house television system in which a transmitter (camera) feeds one or more receivers (monitors) through a closed cable or other transmission method.

(D) "Fire alarm system" means an assembly of equipment and devices designed and arranged to signal a fire.

(E) "Locksmith services" means servicing, installing, repairing, rebuilding, rekeying, repinning, adjusting, or installing locks, mechanical or electronic security devices, annunciation devices not designed to require a response by law enforcement, or the opening of a lock by a means not intended by the manufacturer of the device.

(F) "Monitoring" means the retransmission of information received from a security system to the proper individual as required by law or as directed by the user of the security system.

(G) "Operator" means an individual who performs the function of alarm operator, dispatcher, or monitor for a security system.

(H) "Security system" means an assembly of electronic equipment and devices that provides, as its main purpose, the protection of life or property and the detection of threats or violations to the security of the protected premises. "Security system" includes burglary detection, fire detection, locksmith services, access control, and closed-circuit television.

(I) "Technician" means an individual who performs the installation and repair of security systems.

Sec. 4770.02. (A) No person shall operate a company to sell, install, repair, monitor, or investigate any security system in this state unless that person is licensed as this chapter requires. Any person conducting business as a security systems company in multiple locations in this state need have only one license that lists the office address of each location within this state.

(B) Upon payment of the requisite fee, the director of commerce shall grant appropriate certificates of licensure and branch office certificates to a licensee. Each location from which a licensee offers security system services shall display a certificate of licensure or a branch office certificate as appropriate.

(C) Any person licensed pursuant to this chapter who changes the primary mailing address of the company as filed shall notify the director of any change of address within thirty days of that change.

(D) Operating a security systems company without a license pursuant to this chapter is subject to a fine the director establishes by rule.

Sec. 4770.03. (A) No individual shall sell, lease, rent, design, plan, install, monitor, maintain, repair, test, or inspect a security system unless that individual has an appropriate registration pursuant to this chapter as a technician, salesperson, or operator in one or more of the following specialties: access control system, burglar alarm, closed-circuit television, commercial fire alarm, monitoring, or locksmith.

(B) An individual applying for registration pursuant to this chapter may apply for multiple categories of registration so long as the individual meets the qualifications of each category for which an application is made. The director of commerce shall facilitate applications and registrations for multiple class registrations.

(C) Any employee of a security systems company who is not registered pursuant to this chapter, but who has access to information in the ordinary course of employment that would allow that individual to circumvent security systems, shall meet any background check requirements for registrants established pursuant to this chapter.

Sec. 4770.04.  Any individual registered pursuant to this chapter shall carry a certificate of registration while servicing, testing, repairing, or installing a security system for profit and shall produce the certificate for inspection upon the request of any code official or other authorized person.

Sec. 4770.05. (A) The director of commerce shall issue a license or registration, or a renewal of a license or registration, to any person who files with the director an application on a form the director provides, pays the appropriate fee, and meets any other requirements the security systems advisory board establishes by rule.

(B) The director shall not issue a license to any person who employs an individual who has been convicted of a felony.

(C) The director may revoke or suspend the license or registration of any person for any of the following reasons:

(1) Knowingly violating any provision of this chapter;

(2) Engaging in an activity for which the person is not licensed or registered or permitting another person to engage in an activity for which that person is not licensed or registered;

(3) Negligence or incompetence;

(4) Knowingly misrepresenting, making false promises, or dishonest or illegal dealing;

(5) A continued course of misrepresentation or making false promises individually, through employees or agents, through advertising or otherwise;

(6) Failure to notify the director of any change of primary business address as this chapter requires;

(7) Failure to complete any apprenticeship program required by rule for the holder of a provisional license.

(D) No person, while under suspension or revocation of a license or registration, may be associated with any company licensed under this chapter.

Sec. 4770.06. (A) There is hereby established in the department of commerce the security systems advisory board, consisting of seven voting members, to include the state fire marshal, the superintendent of the highway patrol, and five members the governor appoints. One of the appointed members shall represent businesses that provide monitoring services, one shall have a primary business of providing locksmith services, one shall be a consumer, and two shall be individuals who are registered pursuant to this chapter and who have at least five years experience in the security systems industry. No two members of the board may be employed by the same security systems company.

(B) Of the initial appointments to the security systems advisory board, two shall be for terms of four years, two shall be for terms of three years, and one shall be for a term of two years. Thereafter, each term shall be for four years, ending on the same day of the same month as the term that it succeeds. Each member shall hold office from the date of appointment until the end of the term for which appointed. Vacancies shall be filled in the manner provided for original appointments. A member appointed to fill a vacancy prior to the expiration of a term shall hold office for the remainder of that term. A member shall continue in office subsequent to the expiration of the term until the member's successor takes office. No member may be appointed for more than two consecutive terms of four years.

(C) The members of the board may not be compensated, but shall be reimbursed for actual expenses reasonably incurred in the performance of their duties.

Sec. 4770.07. (A) The security systems advisory board shall adopt rules pursuant to Chapter 119. of the Revised Code that do all of the following:

(1) Establish application procedures and overall requirements for applicants for licensure and registration, including requirements for initial licensure or registration and renewal of licensure or registration, to include training requirements based on measurable objectives with testing to ensure proficiency for each of the following specialties: access control systems technician, burglar alarm and fire alarm operator, burglar alarm systems technician, closed-circuit television technician, commercial fire alarm technician, locksmith, security systems salesperson, and compliance agent.

(2) Establish procedures to conduct employee background checks and to process applications;

(3) Establish and implement standards for the operation of security systems companies;

(4) Establish standards for the operation of schools and instructors for continuing education requirements the board establishes;

(5) Establish the requirements for the compliance agent that a licensed company is required to designate and specify the responsibilities of that agent;

(6) Specify information that the director shall collect and maintain as part of a registry of security system personnel and applicants for registration and licensure;

(7) Establish procedures for hearing appeals from the director's actions and decisions;

(8) Establish the amount of fees required by this chapter and the rules adopted pursuant to it;

(9) Designate the crimes that relate to the performance of a licensee or registrant, to include dishonesty and corruption, that disqualify a person from holding a license or being registered pursuant to this chapter.

(B) The board shall not adopt any rule that unreasonably restricts competition or the availability of services requiring licenses pursuant to this chapter or unnecessarily increases the cost of services without a corresponding benefit.

Sec. 4770.08. (A) The director of commerce may enforce this chapter irrespective of the place or location in which a violation occurs, and upon the complaint of any person or on the director's own initiative. The director may cause to be investigated the business and business methods of any licensed or unlicensed person, registered or unregistered person, employee, or applicant for a license or registration.

(B) To enforce this chapter and conduct any investigation authorized by it, the director may subpoena any person in this state and require the production of any papers the director determines necessary, administer oaths, and take depositions of any individuals subpoenaed. The director may employ field investigators and administrative staff as needed to carry out the purposes of this chapter.

(C) The director, acting pursuant to Chapter 119. of the Revised Code and within guidelines the security systems advisory board establishes by rule, may take disciplinary action against any licensee, registrant, or any unlicensed or unregistered person who violates this chapter.

(D) The director may receive any record check information directly from the United States department of justice.

Sec. 4770.09. The director of commerce, with the advice of the security systems advisory board, annually shall file a report with the governor, the president of the senate, and the speaker of the house of representatives. The report shall provide details regarding the cost of administering this chapter, the effectiveness of this chapter in protecting the public interest, the length of time it takes to conduct criminal background checks, the type and number of licenses and registrations issued, enforcement information, and any other information that the director and advisory board wish to convey.

Sec. 4770.10. (A) The director of commerce may grant licenses and registrations to persons who are registered or licensed in states that the security systems advisory board determines by rule to have registration or licensing requirements that are approximately equal, in substance and intent, to the requirements of this state. The director shall register or issue a license to any such person who files an application on a form the director provides, pays the appropriate fee, and meets any other qualifications the board establishes by rule.

(B) A burglar alarm system company or fire alarm system company located in another state and licensed pursuant to this chapter is not required to have an office or a compliance agent with a physical presence in this state if the company has a representative with a physical presence in this state to receive notices and forward those notices to the company's compliance agent. A post office box is not "a representative with a physical presence in this state."

(C) Notwithstanding any requirement of this chapter to the contrary, any security systems company or compliance agent licensed in a state the advisory board determines to have licensing requirements approximately equal to those of this state, may perform monitoring in this state if the company or agent files an application with the director of commerce on the form the director provides and pays the appropriate fee.

Sec. 4770.11. No municipal corporation, county, or township may enact any ordinance that conflicts with this chapter. This restriction shall not be construed to prohibit any political subdivision from enacting an ordinance that establishes regulatory schemes designed to prevent false alarm dispatches, schemes that require the issuance of permits to security system users, or penalties to users for excessive false alarm dispatches. Nothing in this chapter shall be construed to prevent a political subdivision from levying a business license fee, business or occupation tax, or other tax upon a security systems company provided that any fees or taxes are levied on all other types of businesses within its boundaries and are based on the physical presence of the business. Nothing in this chapter shall prevent a political subdivision from licensing or regulating a person licensed or registered under this chapter when that person is engaged in activities that are not related to security systems or are not governed by this chapter.

Sec. 4770.12. The director of commerce shall deposit all money collected under this chapter in the state treasury to the credit of the security systems fund, which is hereby created. Money credited to the fund shall be used solely to pay costs associated with the administration of this chapter and the rules adopted under it.

Sec. 4770.13. This chapter does not apply to any of the following:

(A) A person licensed as an engineer or architect who designs or plans security systems;

(B) A person who services or installs, repairs, rebuilds, rekeys, repins, or adjusts locks in or on safes or vaults;

(C) A licensed electrician who installs conduit and or wire for a system if the electrician does not connect any device or have access to plans or designs for the complete system.

Section 2. Sections 4770.02 and 4770.03 of the Revised Code take effect four hundred eighty days after the effective date of this act.

Section 3. Not later than thirty days after the effective date of this act, the Governor shall make appointments to the Security Systems Advisory Board. Notwithstanding section 4770.06 of the Revised Code, persons appointed to the Board during the two years following the effective date of this act need not be registered as this act requires.

Section 4. Not later than one hundred eighty days after the appointment of all initial members to the Security Systems Advisory Board, the Board shall adopt the rules this act requires.