Bill Text: MI SB0618 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Occupations; alarm systems; security alarm systems act; strike reference to security alarm provider licenser under private security business and security alarm act. Amends secs. 2, 3, 4 & 5 of 2012 PA 580 (MCL 338.2182 et seq.). TIE BAR WITH: SB 0619'13

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-10-15 - Referred To Committee On Economic Development [SB0618 Detail]

Download: Michigan-2013-SB0618-Introduced.html

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SENATE BILL No. 618

 

 

October 15, 2013, Introduced by Senator HILDENBRAND and referred to the Committee on Economic Development.

 

 

 

     A bill to amend 2012 PA 580, entitled

 

"Security alarm systems act,"

 

by amending sections 2, 3, 4, and 5 (MCL 338.2182, 338.2183,

 

338.2184, and 338.2185).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Alarm system" means any mechanical or electrical device,

 

including an electronic access control system, a video monitoring

 

system, a burglar alarm system, smoke detectors, or any other

 

electronic system that is designed to emit an audible alarm or

 

transmit a signal or message to a central monitoring station if it

 

is activated and that is used to detect an unauthorized entry into

 

a protected premises or alert other persons of the occurrence of a

 

fire or medical emergency or the commission of an unlawful act

 

against a person or in a protected premises. The term includes, but

 

is not limited to, a silent, panic, holdup, robbery, duress,

 

burglary, medical alert, or proprietor alarm that signals a central

 

monitoring station.

 

     (b) "Applicant" means a person for which a registration

 

statement is filed under section 3.

 

     (c) "Background check" means a criminal history check

 

administered by a public or private entity that examines federal

 

and state government records in a manner that allows for the

 

successful identification of the criminal offenses listed in

 

section 4(3)(c).

 

     (d) "Department" means department of licensing and regulatory

 

affairs.

 

     (e) "Local unit of government" means a city, county, village,

 

or township, or a special district designated by law that exercises

 

limited government powers or powers in respect to limited

 

government subjects.

 

     (f) "Operator" means an employee or independent contractor who

 

performs alarm operator, dispatcher, or monitor functions for a

 

security alarm system at a central monitoring station. The term

 

does not include a system user who receives signals or messages

 

about his or her own security alarm system.

 

     (g) "Person" means an individual, partnership, corporation,

 

limited liability company, or other legal entity.

 

     (h) "Protected premises" means a location at or in which a

 

system user's security alarm system is installed and maintained.

 

     (i) "Registrant" means a person that is registered by the

 

department as a system provider.

 

     (i) (j) "Registration statement" means a registration that is

 

issued by the department.form submitted by an applicant that is

 

registering with the department under this act.

 

     (j) (k) "Remote monitoring" means the retransmission of

 

information received from a security alarm system to a central

 

monitoring system.

 

     (k) (l) "Security alarm system" means a detection device or an

 

assembly of equipment and devices that transmits signals to a

 

central monitoring station and is arranged to signal the presence

 

of a hazard that requires urgent attention or to which police are

 

expected to respond. The term includes any electronic system that

 

transmits signals to a central monitoring station and monitors or

 

records various components designed to detect or prevent

 

burglaries, intrusions, theft, or robbery of the protected

 

premises, including, but not limited to, an intrusion detection

 

system, video monitoring or recording system, access control

 

system, and 1-way or 2-way audio monitoring systems. The term does

 

not include a fire alarm system or an alarm system that monitors

 

temperature, humidity, or other condition that is not directly

 

related to the detection or prevention of burglaries, intrusions,

 

theft, or robbery of the protected premises.

 

     (l) (m) "System provider" means a person that engages in the

 

business of selling, leasing, renting, maintaining, repairing,

 

installing, or otherwise providing security alarm systems to the

 

public at the protected premises or by remote monitoring. The term

 

does not include any of the following:

 

     (i) A person that purchases, rents, or uses an alarm system

 

that is affixed to a motor vehicle.

 

     (ii) A person that owns or conducts a business of selling,

 

leasing, renting, installing, maintaining, or monitoring an alarm

 

system that is affixed to a motor vehicle.

 

     (iii) An alarm system that is operated by this state, a

 

political subdivision of this state, an agency or department of

 

this state or a political subdivision of this state, or any other

 

governmental agency or department.

 

     (iv) A person that installs a nonmonitored alarm system for a

 

business that the person owns, is employed by, or manages.

 

     (v) A person that only manufactures or sells security alarm

 

systems, unless that person services, installs, monitors, or

 

responds to signals from security alarm systems at the protected

 

premises.

 

     (vi) A person that sells security alarm systems that are

 

designed to be installed and monitored by any of the following:

 

     (A) The customer, and not the person selling the security

 

alarm system.

 

     (B) An affiliate of or contractor to the person selling the

 

security alarm system if the affiliate or contractor that installs

 

at the protected premises or monitors the security alarm system is

 

registered under this act.

 

     (vii) A security alarm system contractor, as defined in section

 

2 of the private security business and security alarm act, 1968 PA

 

330, MCL 338.1052, that is required to obtain a license under that

 

act.

 

     (m) (n) "System user" means a person that uses a security

 

alarm system at a protected premises or remotely.

 

     Sec. 3. (1) A person shall not act as a system provider in

 

this state without first doing both of the following:

 

     (a) Filing a completed registration statement with the

 

department, on a form prescribed by the department, that meets the

 

requirements of section 4 accompanied by any applicable fees under

 

section 5. A person that acts as a system provider in multiple

 

locations in this state is only required to file 1 registration

 

statement with the department.

 

     (b) Meeting 1 of the following:

 

     (i) Providing a bond to the department that is in the principal

 

amount of $25,000.00; is conditioned on the applicant's or

 

registrant's compliance with this act; is acceptable to the

 

department; and is for the benefit of the residents of this state.

 

     (ii) Providing a policy of insurance to the department, in the

 

amount of $25,000.00 for property damages, $100,000.00 for injury

 

to or death of 1 person, and $200,000.00 for injuries to or deaths

 

of more than 1 person arising out of the operation of the licensed

 

activity, that is issued by an insurer authorized to do business in

 

this state and names the applicant or registrant and the state as

 

coinsureds.

 

     (iii) Demonstrating to the department that the applicant, or

 

registrant, or an affiliate of the applicant, or registrant, is

 

licensed as a basic local exchange provider under the Michigan

 

telecommunications act, 1991 PA 179, MCL 484.2101 to 484.2603.

 

     (iv) Demonstrating to the department that the applicant, or

 

registrant, or an affiliate of the applicant, or registrant, has

 

annual revenue of $10,000,000.00 or more.

 

     (2) An individual injured by the willful, malicious, and

 

wrongful act of an applicant, or registrant, or any agent or

 

employee of an applicant, or registrant, may bring an action on a

 

bond or insurance policy provided under subsection (1)(b) in his or

 

her own name to recover damages suffered by reason of the wrongful

 

act.

 

     Sec. 4. (1) A registration statement filed with the department

 

shall include a completed affidavit, submitted by the registrant or

 

applicant and signed by an officer or another individual who is

 

authorized to bind the registrant, applicant, that affirms all of

 

the following:

 

     (a) The registrant's or applicant's legal name and any name

 

under which the registrant or applicant does or will do business in

 

this state that is authorized by the department.

 

     (b) The address and telephone number of the registrant's or

 

applicant's principal place of business and contact information for

 

the individual responsible for ongoing communications with the

 

department.

 

     (c) A description of the geographic areas in this state the

 

registrant or applicant does or will serve.

 

     (d) A description of the training the registrant applicant

 

will provide to its employees or independent contractors who are

 

involved in installing or monitoring security alarm systems. The

 

department may refuse to accept a registration statement if it

 

determines that the training is not commercially reasonable

 

considering the nature of the security alarm systems installed or

 

monitored by the registrant or applicant.

 

     (e) A description of the security alarm system services that

 

the registrant or applicant does or will provide.

 

     (f) That the registrant or applicant will file an updated

 

registration statement annually, or sooner if a material change to

 

the information occurs, on a form prescribed by and in a process

 

established by the department.

 

     (g) That the applicant has met the requirements of subsections

 

(2), (3), and (4), and will continue to meet these requirements

 

during the time period covered by the registration statement. (2) A

 

registrant, applicant, For the purpose of meeting the requirements

 

of subsection (3)(c), a system provider or affiliate or contractor

 

described in section 2(m)(vi)(B) 2(l)(vi)(B) shall conduct a

 

background check of each employee or independent contractor of the

 

registrant, applicant, system provider, affiliate, or contractor

 

who, in the normal course of his or her employment or engagement,

 

enters a customer's premises to sell, lease, rent, maintain,

 

repair, install, or otherwise provide a security alarm system at a

 

protected premises. The background check required under this

 

subsection shall include the taking of fingerprints of the employee

 

or independent contractor and submission of those fingerprints to

 

the department of state police or the federal bureau of

 

investigation for the purpose of a criminal history record search.

 

However, a registrant, applicant, system provider, affiliate, or

 

contractor is not required to submit the fingerprints of an

 

employee or independent contractor under this subsection if the

 

employee's or independent contractor's fingerprints were previously

 

submitted for the purpose of a criminal history record search for

 

the purposes of meeting the requirements of a regulatory authority

 

in another state and the registrant, applicant, system provider,

 

affiliate, or contractor has the results of that submission.

 

     (3) An applicant, registrant, A system provider or affiliate

 

or contractor described in section 2(m)(vi)(B) 2(l)(vi)(B) shall not

 

employ or engage, or continue to employ or engage, an individual

 

for whom a background check is required under subsection (2) if he

 

or she meets any of the following:

 

     (a) Is not at least 18 years old.

 

     (b) Does not have a high school diploma or a general education

 

development (GED) certificate or its equivalent.

 

     (c) His or her background check under subsection (2) discloses

 

Meets any of the following:

 

     (i) He or she was convicted of a felony.

 

     (ii) Within the 5-year period preceding the date of the

 

background check, he or she was convicted of a misdemeanor

 

involving any of the following:

 

     (A) Dishonesty or fraud.

 

     (B) Unauthorized divulging or selling of information or

 

evidence.

 

     (C) Impersonation of a law enforcement officer or employee of

 

the United States, this state, or a political subdivision of this

 

state.

 

     (D) Illegally using, carrying, or possessing a dangerous

 

weapon.

 

     (E) Two or more alcohol-related offenses.

 

     (F) Controlled substances under the public health code, 1978

 

PA 368, MCL 333.1101 to 333.25211.

 

     (G) An assault.

 

     (H) Criminal sexual conduct in the fourth degree under section

 

520e of the Michigan penal code, 1931 PA 328, MCL 750.520e.

 

     (iii) He or she has been adjudged insane unless restored to

 

sanity by court order.

 

     (iv) He or she has any outstanding warrants for his or her

 

arrest.

 

     (4) A system provider or affiliate or contractor described in

 

section 2(l)(vi)(B) shall require that each of its employees or

 

independent contractors who enter a customer's premises to sell,

 

lease, rent, maintain, repair, install, or otherwise provide a

 

security alarm system display, at all times while he or she is in

 

or on those premises, an identification card that includes his or

 

her name and photograph, the name of his or her employer, and

 

contact information for that employer.

 

     Sec. 5. (1) The department shall accept a registration

 

statement filed submitted under section 3 if the requirements of

 

this act are met.

 

     (2) The department's authority to administer this act is

 

limited to the powers and duties explicitly provided under this

 

act. The department does not have the authority to limit or expand

 

the obligations and requirements provided in this act or to

 

regulate or control a person to the extent that the person is

 

providing security alarm system services except as provided in this

 

act.

 

     (3) The department may charge a fee for filing a registration

 

statement under this act in an amount determined by the department.

 

Any fee submission fee for processing a registration statement and

 

a registration fee if it accepts the registration statement and

 

registers an applicant. All of the following apply to the fees

 

described in this subsection:

 

     (a) The department shall determine the amount of the

 

submission fee and registration fee.

 

     (b) The fees charged by the department may not exceed the

 

department's actual costs to process and review a registration

 

statement and register an applicant.

 

     (c) The department may collect a portion of these fees at the

 

time it receives the registration statement and shall apply that

 

money to the remaining cost associated with processing the

 

registration statement if it is accepted by the department.

 

     (d) The submission fee and registration fee are nonrefundable.

 

However, if the department accepts a registration statement and

 

registers an applicant, the department shall apply the submission

 

fee it received to the registration fee.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 619                                    

 

          of the 97th Legislature is enacted into law.