Bill Text: MI SB1291 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Occupations; alarm systems; registration of alarm system services providers; provide for. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2012-12-31 - Assigned Pa 0580'12 With Immediate Effect 2012 Addenda [SB1291 Detail]
Download: Michigan-2011-SB1291-Engrossed.html
SB-1291, As Passed Senate, September 27, 2012
SUBSTITUTE FOR
SENATE BILL NO. 1291
(As amended September 27, 2012)
<<A bill to register and regulate certain providers of premises
security, monitoring, and control systems; to provide for the
assessment of registration fees; and to prescribe the powers and
duties of certain state departments, agencies, officers, and political
subdivisions.>>
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"internet protocol-enabled premises security, monitoring, and
control act".
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
Senate Bill No. 1291 as amended September 27, 2012
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) "Department" means department of licensing and regulatory
affairs.
(d) "Internet protocol" or "IP" means transmission control
protocol or a successor protocol or technology.
(e) "IP-enabled system" means <<a system that transmits signals
to a central monitoring station by means of wired or wireless
technologies capable of sending data using internet protocol or
other communications protocols over the public internet or other
networks and that provides security, monitoring, or control services
and functions>>, including, but not limited to, any of
the following:
(i) Remote monitoring of various alarm systems or alarm events,
which may include, but are not limited to, unauthorized entry,
fire, smoke, or carbon monoxide at the protected premises.
(ii) Remote monitoring and provision of premises management and
automation services, which may include, but are not limited to,
door locks and other premises access control, thermostats for
heating, ventilation and air conditioning and other environmental
controls, lighting, appliances, or moisture or water control,
including, but not limited to, water shutoff.
(iii) Remote monitoring of the protected premises through IP-
enabled devices and audio/video transmissions.
(iv) Remote monitoring of a person's health and welfare at the
protected premises through IP-enabled sensors and devices.
(v) Remote monitoring or tracking of personal property that is
or was located at the protected premises through IP-enabled sensors
and devices.
(f) "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.
(g) "Operator" means an employee or independent contractor who
performs alarm operator, dispatcher, or monitor functions for an
IP-enabled system at a central monitoring station. The term does
not include a system user who receives signals or messages about
his or her own IP-enabled system.
(h) "Person" means an individual, partnership, corporation,
limited liability company, or other legal entity.
(i) "Protected premises" means a location at or in which a
system user's IP-enabled system is installed and maintained.
(j) "Registrant" means a person that is registered by the
department as a system provider.
(k) "Registration" means a registration that is issued by the
department.
(l) "Remote monitoring" means the retransmission of information
received from an IP-enabled system to a central monitoring system.
(m) "System provider" means a person that engages in the
business of selling, leasing, renting, maintaining, repairing,
installing, or otherwise providing IP-enabled 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 IP-enabled
systems, unless that person services, installs, monitors, or
responds to signals from IP-enabled systems at the protected
premises.
(vi) A person that sells IP-enabled systems that are designed
to be installed and monitored by any of the following:
(A) The customer, and not the person selling the IP-enabled
system.
Senate Bill No. 1291 as amended September 27, 2012
(B) An affiliate of or contractor to the person selling the
IP-enabled system if the affiliate or contractor that installs at
the protected premises or monitors the IP-enabled 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.
(n) "System user" means a person that uses an IP-enabled
system at a protected premises or remotely.
Sec. 3. (1) A person shall not act as a system provider in
this state without first filing a registration statement with the
department that meets the requirements of section 4. <<A person that
violates this subsection is guilty of a misdemeanor punishable by imprisonment for not more than 180 days or a fine of not more than $1,000.00, or both, for each violation.>>
(2) 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.
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, 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 will provide
to its employees or independent contractors who are involved in
installing or monitoring IP-enabled 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 IP-enabled systems installed or monitored by the registrant or
applicant.
(e) A description of the IP-enabled 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.
(2) A registrant or applicant shall conduct a background check
of each employee or independent contractor of the registrant or
applicant who, in the normal course of employment, enters a
customer's premises to sell, lease, rent, maintain, repair,
install, or otherwise provide an IP-enabled system at a protected
premises.
(3) An applicant or registrant 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
any of the following:
(i) Within the 5-year period preceding the date of the
background check, he or she was under any sentence, including
parole, probation, or actual incarceration, for the commission of a
felony.
(ii) Within the 5-year period preceding the date of the
background check, he or she was convicted of a felony or 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.
(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.
Sec. 5. (1) The department shall accept a registration
statement filed 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 IP-enabled 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 charged by the department may not exceed the department's
actual costs to process and review a registration statement.
Sec. 6. The provisions of this act supersede and preempt any
rule, regulation, code, or ordinance of any local unit of
government of this state relating to the authorization or
registration of system providers and their employees or independent
contractors. A local unit of government of this state shall not
require the issuance of a certificate, license, or permit or
otherwise regulate any person that provides any form of IP-enabled
security, monitoring, and control services or the installation and
maintenance of facilities associated with IP-enabled systems,
except that a local unit of government of this state may do any of
the following:
(a) By ordinance, establish decibel limits, length, or time
period of audible alarm sounding.
(b) By ordinance, regulate or prohibit automated calls,
automated signals, or other automated communications to local units
of government, including public safety access points.
(c) Require a permit for high-voltage electrical or plumbing
work to be performed by a system provider.
(d) Enforce any preexisting rights with respect to the use of
its rights-of-way.
