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 House, December 5, 2012
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1291
A bill to register and regulate certain providers of security
alarm 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
"security alarm systems 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
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.
(j) "Registration" means a registration that is issued by the
department.
(k) "Remote monitoring" means the retransmission of
information received from a security alarm system to a central
monitoring system.
(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.
(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.
(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 registration statement with the department that
meets the requirements of section 4. 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, 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 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
Senate Bill No. 1291 (H-4) as amended December 4, 2012
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.
(2) A registrant, applicant, or affiliate [or contractor described
in section 2(m)(vi)(B)] shall conduct a background check of each
employee or
independent contractor of the registrant, applicant, [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, 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, affiliate, or contractor] has the results
of that submission.
(3) An applicant, registrant, or affiliate [or contractor described in section 2(m)(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
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.
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 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 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 security
alarm security, monitoring, and control services or the
installation and maintenance of facilities associated with security
alarm 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.
Sec. 7. A person that violates this act 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.
