SF 3318

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 03:16pm

A bill for an act
relating to construction licensing; requiring licensing for security system companies;
requiring licensing and background checks for security system installers; proposing
coding for new law in Minnesota Statutes, chapter 326B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [326B.60] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 326B.60 to 326B.64, the terms defined
in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Security system. new text end

new text begin "Security system" means an aggregation of devices, equipment,
or services designed to signal the presence of intrusion, break-in, theft, movement, or sound.
new text end

new text begin Subd. 3. new text end

new text begin Security system company. new text end

new text begin "Security system company" means a person engaged
in the sale, installation, maintenance, alteration, repair, replacement, servicing, or monitoring
of a security system. Security system company does not include:
new text end

new text begin (1) a person engaged in the manufacture and sale of security systems when that person
is not engaged in the installation, maintenance, alteration, repair, replacement, servicing,
or monitoring of security systems, and the manufacture or sale occurs only at a place of
business established by the person engaged in the manufacture or sale and does not involve
site visits at the place or intended place of installation of a security system; or
new text end

new text begin (2) an owner of a security system, or an employee of the owner of a security system,
who is engaged in installation, maintenance, alteration, repair, replacement, servicing, or
monitoring of a security system.
new text end

new text begin Subd. 4. new text end

new text begin Security system installer. new text end

new text begin "Security system installer" means an individual
employed within this state by a security system company who performs security system
installations and has knowledge of sensitive security system information.
new text end

new text begin Subd. 5. new text end

new text begin Security system installation. new text end

new text begin "Security system installation" means the placing
and connection of equipment and devices such as control panels; batteries, excluding
battery-operated smoke alarms; motion detectors; switches; annunciators; sensors; sirens;
horns; bells; networks; microprocessors; other communication equipment; and similar
devices. Installation includes programming the client's control panel to include programming
or reprogramming for access codes, system protocol, bypass features, and hours of operation.
new text end

new text begin Subd. 6. new text end

new text begin Sensitive security system information. new text end

new text begin "Sensitive security system information"
means any information that would permit a person to compromise, bypass, deactivate, or
disable any part of a security system. Sensitive security system information does not include
knowledge of what is installed in the home nor the location, by general description, of the
equipment installed unless the knowledge would permit a person to compromise, bypass,
deactivate, or disable any part of an alarm system.
new text end

Sec. 2.

new text begin [326B.61] COMPANY LICENSING; CONTROLLING PERSON;
APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin It is unlawful for a person, corporation, partnership, sole
proprietorship, subsidiary, unit, or other business entity to directly or indirectly engage or
attempt to engage in business as a security system company, or to directly or indirectly
engage or attempt to advertise or hold itself out as engaging in or conducting business as a
security system company, without first obtaining a license issued by the commissioner under
the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Designated controlling person. new text end

new text begin (a) Each security system company applying
to the commissioner for a license in this state shall designate a controlling person that will
be the main contact for all communication between the commissioner and the security
system company.
new text end

new text begin (b) In order to serve as a designated controlling person of a security system company,
a person must:
new text end

new text begin (1) be of good moral character, as determined by the commissioner; and
new text end

new text begin (2) submit to a background investigation, as determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Application for license. new text end

new text begin Application for a security system company license
must be submitted on a form prescribed by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Minimum information. new text end

new text begin The application must, at a minimum, include the
following information:
new text end

new text begin (1) the name of the entity seeking registration;
new text end

new text begin (2) the business address or addresses of the entity seeking registration;
new text end

new text begin (3) the name, address, and contact information for the designated controlling person;
new text end

new text begin (4) a certification that the entity has a system and process in place to verify that a person
being added to the employment as a security system installer holds the required licenses as
an electrician and as a security system installer in this state pursuant to this chapter; and
new text end

new text begin (5) a certification that the entity will comply with the bond requirements under section
326B.63 and insurance requirements under section 326B.64.
new text end

Sec. 3.

new text begin [326B.62] SECURITY SYSTEM INSTALLERS.
new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin (a) In addition to any requirements to be licensed by
the Board of Electricity, an employee who installs, maintains, or services a security system
and has knowledge of or access to sensitive security system information must obtain a
security system installer license issued by the commissioner.
new text end

new text begin (b) A security system installer's license is required for the installation, maintenance, or
servicing of the following:
new text end

new text begin (1) a closed-circuit television system (CCTV), or video surveillance system, if the system
is used, either full time or part time, for the detection or monitoring of intrusion, break-in,
theft, movement, or sound; and
new text end

new text begin (2) electrical entry systems that detect or provide notification of intrusion, break-in,
theft, movement, or sound, regardless of the number of entry points.
new text end

new text begin (c) A security system installer's license is not required for the installation, maintenance,
or servicing of the following:
new text end

new text begin (1) sprinkler systems;
new text end

new text begin (2) conduits and associated wires of an alarm system, including line-voltage connections
to an outlet, junction box, or electrical distribution panel;
new text end

new text begin (3) security or fire alarm systems in motor vehicles, water vessels, or aircraft;
new text end

new text begin (4) battery-operated smoke alarm devices;
new text end

new text begin (5) a security or fire alarm system if the alarm system has been purchased by a property
owner or proprietor, and the alarm system is to be installed, maintained, or serviced by the
owner or an owner's agent at the owner's property or place of business; and
new text end

new text begin (6) a single-door, card-access entry system that does not detect or provide notification
of intrusion, break-in, theft, movement, or sound.
new text end

new text begin Subd. 2. new text end

new text begin Application for license. new text end

new text begin (a) An application for a security system installer license
must be submitted on a form prescribed by the commissioner.
new text end

new text begin (b) The application must, at a minimum, require the following:
new text end

new text begin (1) the employee's full name and residence address; and
new text end

new text begin (2) the business or occupation engaged in for the three years immediately preceding the
date of the filing of the application, listing the place or places where the business or
occupation was engaged in and the name or names of employers, if any.
new text end

new text begin Subd. 3. new text end

new text begin Criminal history record check; fingerprints. new text end

new text begin (a) An applicant for an initial
license must:
new text end

new text begin (1) consent to a criminal history record check;
new text end

new text begin (2) submit a fingerprint card in a form acceptable to the commissioner within 48 hours
of employment; and
new text end

new text begin (3) pay the fee required to perform criminal history record checks with the Bureau of
Criminal Apprehension and the Federal Bureau of Investigation.
new text end

new text begin (b) The commissioner may contract for the collection and transmission of fingerprints
required under this chapter and may order the fee for collecting and transmitting fingerprints
to be payable directly to the contractor by the applicant. The commissioner may agree to a
reasonable fingerprinting fee to be charged by the contractor.
new text end

new text begin (c) The commissioner shall submit the applicant's fingerprints, consent, and the required
fee to the superintendent of the Bureau of Criminal Apprehension. The superintendent shall
perform a check of the state criminal history repository and is authorized to exchange the
applicant's fingerprints with the Federal Bureau of Investigation to obtain the national
criminal history record. The superintendent shall return the results of the state and national
criminal history records checks to the commissioner.
new text end

new text begin (d) An applicant for a renewal of a license must disclose, in a form acceptable to the
commissioner, any crimes involving moral turpitude or that are substantially related to the
qualifications, functions, or duties of a security system installer that the applicant has been
convicted of or pled guilty or nolo contendere to, as provided in this paragraph. An applicant
renewing a license is only required to disclose events that occurred since the license was
issued if this is the applicant's first license renewal or, since the license was renewed, if this
is a subsequent renewal.
new text end

new text begin Subd. 4. new text end

new text begin Other employees. new text end

new text begin Employees of a licensed security alarm installer do not have
to be licensed to assist with the installation, maintenance, or servicing of security systems
if they do not have knowledge of or access to sensitive security system information.
new text end

Sec. 4.

new text begin [326B.63] BOND.
new text end

new text begin (a) As a condition of licensing, each applicant for a security system company license
shall give and maintain a bond to the state in the total sum of $....... conditioned upon the
faithful and lawful performance of all work contracted for or performed within the state.
The bond shall run to and be for the benefit of persons injured or suffering financial loss
by reason of failure of payment or performance. Claims and actions on the bond may be
brought according to sections 574.26 to 574.38.
new text end

new text begin (b) The term of the bond must be concurrent with the term of the security system company
license and run without interruption from the date of the issuance of the license to the end
of the term of the license. All security system company licenses must be renewed every ...
years.
new text end

new text begin (c) The bond must be filed with the department and shall be in lieu of any other license
bonds required by any political subdivision for security system companies. The bond must
be written by a corporate surety licensed to do business in the state.
new text end

Sec. 5.

new text begin [326B.64] INSURANCE.
new text end

new text begin (a) In addition to the bond required under section 326B.63, each applicant for a security
system company license or renewal shall have in force public liability insurance, including
products liability insurance, with limits of at least $....... per person and $....... per occurrence
and property damage insurance with limits of at least $.......
new text end

new text begin (b) The insurance must be kept in force for the entire term of the security system company
license and the license shall be suspended by the department if at any time the insurance is
not in force.
new text end

new text begin (c) The insurance must be written by an insurer licensed to do business in the state. Each
person holding a security system company license shall maintain on file with the department
a certificate evidencing the insurance. In the event of a policy cancellation, the insurer shall
send written notice to the commissioner at the same time that a cancellation request is
received from or a notice is sent to the insured.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective January 15, 2021.
new text end