FILED SENATE
Mar 21, 2023
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 345
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS35133-NBf-77
Short Title: Alarm Systems Licensing Act Modernization. (Public)
Sponsors: Senator Daniel (Primary Sponsor).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE VARIOUS CHANGES TO THE ALARM SYSTEMS LICENSING ACT.
3 The General Assembly of North Carolina enacts:
4 SECTION 1.(a) Chapter 74D of the General Statutes reads as rewritten:
5 "Chapter 74D.
6 "Alarm Security Systems.
7 "Article 1.
8 "Alarm Security Systems Licensing Act.
9 "§ 74D-1. Title.
10 This act may be cited as the "Alarm "Security Systems Licensing Act."
11 "§ 74D-2. License Business and qualifying agent license requirements.
12 (a) License Required. – No person, firm, association, corporation, or department or
13 division of a firm, association or corporation, shall engage in or hold itself out as engaging in an
14 alarm a security systems business without first being licensed in accordance with this Chapter.
15 A department or division of a firm, association, or corporation may be separately licensed under
16 this Chapter if the distinct department or division, as opposed to the firm, association, or
17 corporation as a whole, engages in an alarm a security systems business. The department or
18 division shall ensure strict confidentiality of private security information, and the private security
19 information of the department or division must, at a minimum, be physically separated from other
20 premises of the firm, association, or corporation. For purposes of this Chapter an "alarm a
21 "security systems business" is defined as any person, firm, association or corporation that does
22 any of the following:
23 (1) Sells Unless otherwise exempt, sells or attempts to sell an alarm a security
24 system device by engaging in a any personal solicitation at a residence or
25 business to advise, design, or consult on specific types and specific locations
26 of alarm security system devices.
27 (2) Installs, Unless otherwise exempt, installs, services, monitors, or responds to
28 electrical, wireless or hardwired electronic or mechanical alarm signal
29 devices, devices and security systems, integrated automation of a residence or
30 business that includes a security element, burglar alarms, monitored access
31 control, or cameras cameras, analytic capturing devices, systems providing
32 intelligence or other imaging devices used to detect or observe burglary,
33 breaking or entering, intrusion, shoplifting, pilferage, theft, or other
34 unauthorized or illegal activity. This provision shall not apply to a locking
35 device that records entry and exit data and does not transmit the data in real
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1 time to an on-site or off-site monitoring location, provided the installer is duly
2 licensed by the North Carolina Locksmith Licensing Board.
3 …
4 (c) Qualifying Agent. – A business entity that engages in the alarm systems business is
5 required to be licensed under this Chapter is subject to all of the requirements listed in this
6 subsection with respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent"
7 is an individual who is a full-time employee in a management position who is licensed under this
8 Chapter and whose name and address have been registered with the Board. The requirements are:
9 (1) The business entity shall employ a designated qualifying agent who meets the
10 requirements for a license issued under and who is, in fact, licensed under the
11 provisions of this Chapter, unless otherwise approved by the Board. Service
12 upon the qualifying agent appointed by the business entity of any process,
13 notice or demand required by or permitted by law to be served upon the
14 business entity by the Alarm Security Systems Licensing Board shall be
15 binding upon the licensed business entity. Nothing herein contained shall limit
16 or affect the right to serve any process, notice or demand required or permitted
17 by law to be served upon a business entity in any other manner or hereafter
18 permitted by law.
19 …
20 (3) In the event that the qualifying agent upon whom the business entity relies in
21 order to do business ceases to perform his duties as qualifying agent, the
22 business entity shall notify the board in writing by letter or using the Board's
23 online form within 10 working days. The business entity must obtain a
24 substitute qualifying agent within 90 days after the original qualifying agent
25 ceases to serve as qualifying agent. The Director, in his or her discretion, may
26 extend the 90-day period for good cause by an additional 30 days upon a
27 written request of an officer of the company.
28 (4) The license certificate shall list the name of the qualifying agent. No licensee
29 person shall serve as the qualifying agent for more than one business entity
30 without the prior approval of the Board.
31 …
32 (6) The qualifying agent shall be responsible for maintaining a current address
33 and other contact information with the Board.
34 (d) Criminal Record Check. Minimum Qualifications for Security Systems License. – An
35 applicant must for qualifying agent shall meet all of the following requirements and qualifications
36 determined by a background investigation conducted by the Board in accordance with
37 G.S. 74D-2.1 and upon receipt of an application:G.S. 74D-2.1:
38 (1) The applicant is at least 18 years of age.
39 (2) The applicant is of good moral character and temperate habits. The following
40 shall be prima facie evidence that the applicant does not have good moral
41 character or temperate habits: conviction by any local, State, federal, or
42 military court of any crime involving the illegal use, carrying, or possession
43 of a firearm; conviction of any crime involving the illegal use, possession,
44 sale, manufacture, distribution or transportation of a controlled substance,
45 drug, narcotic, or alcoholic beverages; conviction of a crime involving
46 felonious assault or an act of violence; conviction of a crime involving
47 unlawful breaking or entering, burglary, larceny, or of any offense involving
48 moral turpitude; or a history of addiction to alcohol or a narcotic drug;
49 provided that, for purposes of this subsection, "conviction" means and
50 includes the entry of a plea of guilty, plea of no contest, or a verdict rendered
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1 in open court by a judge or jury.jury, including a prayer for judgment
2 continued, adjudication withheld, or equivalent.
3 (3) The applicant has the necessary training, qualifications and experience to be
4 licensed.licensed, or the applicant has successfully completed or kept current
5 a Certified Alarm Technician Level I course offered by the Electronic Security
6 Association or equivalent course approved by the Board.
7 (4) The applicant has proof of how in-State activities of the licensee are to be
8 monitored, including a business plan setting forth the type of activities to be
9 performed in this State, such as telephone solicitation, residential and
10 commercial installation, or monitoring. The applicant must update the plan
11 promptly as activities change.
12 (e) Examination. – The Board may require the applicant to demonstrate the applicant's
13 qualifications by examination.
14 …
15 (g) An alarm monitoring company located in another state and licensed by that state
16 which demonstrates to the Board's satisfaction that it does not conduct any business through a
17 personal representative present in this State, but which solicits and conducts business solely
18 through interstate communication facilities, such as telephone, the internet, and the United States
19 Postal Service, upon receipt by the Board of a certificate of good standing from the state of
20 licensure is not required to register employees pursuant to G.S. 74D-8. Out-of-state monitoring
21 companies not licensed in any state must be licensed by the Board and must register employees
22 pursuant to G.S. 74D-8.
23 "§ 74D-2.1. Criminal background checks.
24 (a) Authorization. – Upon receipt of an application for a license or registration, the Board
25 shall conduct a background investigation to determine whether the applicant meets the
26 requirements for a license or registration as set out in G.S. 74D-2(d). The Department State
27 Bureau of Public Safety Investigation, Division of Criminal Information Network, may provide
28 a criminal record check to the Board for a person who has applied for a new or renewal license
29 or registration through the Board. The Board shall provide to the Department of Public Safety,
30 State Bureau of Investigation, along with the request, the fingerprints of a new applicant, and the
31 Department of Public Safety State Bureau of Investigation shall provide a criminal record check
32 based upon the applicant's fingerprints. The Board may request a criminal record check from the
33 Department of Public Safety State Bureau of Investigation for a renewal applicant based upon
34 the applicant's fingerprints in accordance with policy adopted by the Board. The Board shall
35 provide any additional information required by the Department of Public Safety State Bureau of
36 Investigation and a form signed by the applicant consenting to the check of the criminal record
37 and to the use of the fingerprints and other identifying information required by the State or
38 national repositories. The applicant's fingerprints shall be forwarded to the State Bureau of
39 Investigation for a search of the State's criminal history record file, and the State Bureau of
40 Investigation shall forward a set of the fingerprints to the Federal Bureau of Investigation for a
41 national criminal history check. The Department of Public Safety State Bureau of Investigation
42 may charge each applicant a fee to be collected by the Board and transmitted to the State Bureau
43 of Investigation for conducting the checks of criminal history records authorized by this
44 subsection.
45 The Board may require a new or renewal applicant to obtain a criminal record report from
46 one or more reporting services designated by the Board to provide criminal record reports.
47 Applicants are required to pay the designated reporting service for the cost of these reports.
48 (b) Confidentiality. – The Except as necessary to support the denial of an application or
49 a disciplinary matter in a contested case, the Board shall keep all information obtained pursuant
50 to this section confidential in accordance with applicable State law and federal guidelines, and
51 the information shall not be a public record under Chapter 132 of the General Statutes.
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1 "§ 74D-3. Exemptions.
2 The provisions of this Chapter shall not apply to:to the following:
3 (1) A person, firm, association or corporation that sells or manufactures alarm
4 security systems, unless the person, firm, association or corporation makes
5 personal solicitations at a residence or business to advise, design, or consult
6 on specific types and specific locations of alarm security system devices,
7 installs, services, monitors, or responds to alarm security systems at or from a
8 protected premises or a premises to be protected and thereby obtains
9 knowledge of specific application or location of the alarm security system. A
10 person licensed under this Chapter may hire a consultant to troubleshoot a
11 location or installation for a period of time not to exceed 48 hours in a
12 one-month period if the licensee submits a report to the Board within 30 days
13 from the date of the consultation designating the consultant as a temporary
14 consultant;
15 (2) Installation, servicing or responding to fire alarm systems or any alarm device
16 which is installed in a motor vehicle, aircraft or boat;boat.
17 (3) Installation or service of an alarm electronic security system on property
18 owned by or leased to the installer;installer.
19 (4) An alarm monitoring company located in another state which demonstrates to
20 the Board's satisfaction that it does not conduct any business through a
21 personal representative present in this State but which solicits and conducts
22 business solely through interstate communication facilities such as telephone
23 messages, earth satellite relay stations and the United States postal service;
24 and
25 (5) A person or business providing alarm systems services to a State agency or
26 local government if that person or business has been providing those services
27 to the State agency or local government for more than five years prior to the
28 effective date of this Chapter, and the State agency or local government joins
29 with the person or business in requesting the application of this exemption.
30 (6) Installation or service of a locking device that records entry and exit data and
31 does not transmit the data in real time to an on-site or off-site monitoring
32 location, provided the installer is licensed by the North Carolina Locksmith
33 Licensing Board.
34 (7) An entity through which a customer accesses marketing or advertising
35 material or installation instructions for a security system.
36 (b) A person licensed under this Chapter may utilize a consultant or manufacturer's
37 representative to troubleshoot a location or installation if accompanied by the licensee and the
38 licensee submits a report to the Board within 30 days from the date of the consultation designating
39 the consultant as a temporary consultant.
40 "§ 74D-4. Alarm Security Systems Licensing Board.
41 (a) The Alarm Security Systems Licensing Board is hereby established.
42 (b) The Board shall consist of seven members: the Secretary of Public Safety or his or
43 her designee; two persons appointed by the Governor, one of whom shall be licensed under this
44 Chapter and one of whom shall be a public member; two persons appointed by the General
45 Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance
46 with G.S. 120-121, one of whom shall be licensed under this Chapter and one of whom shall be
47 a public member; and two persons appointed by the General Assembly upon the recommendation
48 of the Speaker of the House of Representatives in accordance with G.S. 120-121, one of whom
49 shall be licensed under this Chapter and one of whom shall be a public member.
50 (c) Each member shall be appointed for a term of three years and shall serve until a
51 successor is installed. No With the exception of the Secretary or his or her designee, no member
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1 shall serve more than two complete three-year consecutive terms. The term of each member,
2 other than the Attorney General or his designee, who is serving on August 7, 1989, shall terminate
3 on June 30, 1989. Of the appointments made by the General Assembly upon the recommendation
4 of the President of the Senate to begin on July 1, 1989, one member shall be for a term