No. 40164 (Amendment): Rule R156-55d. Burglar Alarm Licensing Rule

(Amendment)

DAR File No.: 40164
Filed: 01/28/2016 03:55:36 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Division and Alarm System Security and Licensing Board reviewed the rule and are proposing various general cleanup amendments to this rule. Proposed amendments delete references to associations that no longer exist, remove requested documents containing information that is currently gathered by applicant fingerprint cards, add clarification of definitions, and add requirements for disclosing criminal history.

Summary of the rule or change:

In Subsection R156-55d-102(3), the amendment clarifies that an alarm company must have control over a person for that person to fall within the definition of "employee". The proposed new Subsection R156-55d-102(5) defines and clarifies the definition for "sensitive alarm system information". In Section R156-55d-302a, the proposed amendment removes the requirement for documents containing information that is currently gathered by applicant fingerprint and reformats remaining subsections. In Sections R156-55d-302c and R156-55d-302d, the amendment adds "Qualifying Agent" to the section title for clarification. In Section R156-55d-302e, the amendment adds "Alarm Company" to the section title for clarification. In Section R156-55d-306, the proposed amendment removes the requirement for a qualifying agent to submit a certification of criminal history or non-history as they have already submitted fingerprints with an application and criminal history is verified by the Division using the fingerprints. In Subsection R156-55d-502(1)(c), the proposed amendment removes a reference to an association that no longer exists. Subsection R156-55d-502(1)(f) is added to designate that failing to report an arrest, charge, indictment, or violation is considered unprofessional conduct. The remaining subsections are renumbered. In Subsection R156-55d-603(1), the proposed amendment removes a reference to an association that no longer exists. In Section R156-55d-604, the proposed amendments clarify the distinction between the business receiving the service and the alarm company providing the service. Section R156-55d-605 is a new section that adds an operating standard of conduct that requires notification within 72 hours of an arrest, charge, or indictment for any criminal offense above the level of a Class C misdemeanor.

State statutory or constitutional authorization for this rule:

• Subsection 58-1-106(1)(a)
• Section 58-55-101
• Subsection 58-55-302(3)(k)
• Subsection 58-1-202(1)(a)
• Subsection 58-55-302(4)
• Subsection 58-55-302(3)(l)

Anticipated cost or savings to:

the state budget:

The Division will incur minimal costs of approximately $75 to print and distribute the rule once the proposed amendments are made effective. Any costs incurred will be absorbed in the Division's current budget. The proposed amendments will not significantly increase the workload of the Division.

local governments:

The proposed amendments apply only to licensed burglar alarm company agents, burglar alarm companies, burglar alarm company qualifiers and applicants for licensure in those classifications. As a result, the proposed amendments do not apply to local governments.

small businesses:

The proposed amendments apply only to licensed burglar alarm company agents, burglar alarm companies, burglar alarm company qualifiers and applicants for licensure in those classifications. A small business may save a minimal amount due to not having to provide a certification of criminal history or non-history. The average cost of the certification is $15 per applicant.

persons other than small businesses, businesses, or local governmental entities:

The proposed amendments apply only to licensed burglar alarm company agents, burglar alarm companies, burglar alarm company qualifiers and applicants for licensure in those classifications. As a result, other persons, such as associations, may save a minimal amount due to not having to provide a certification of criminal history or non-history. The average cost of the certification is $15 per applicant.

Compliance costs for affected persons:

The proposed amendments apply only to licensed burglar alarm company agents, burglar alarm companies, burglar alarm company qualifiers and applicants for licensure in those classifications. Affected persons may save a minimal amount due to not having to provide a certification of criminal history or non-history. The average cost of the certification is $15 per applicant.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule analysis, this rule change updates the existing "Burglar Alarm Licensing Rule" by deleting references to associations that no longer exist, clarifying definitions, and requiring burglar alarm company employees to report to their employer (then burglar alarm companies to notify the Division) if an employee is arrested, charged, or indicted for any criminal offense above a Class C misdemeanor. No fiscal impact to businesses is anticipated.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Occupational and Professional Licensing
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jana Johansen at the above address, by phone at 801-530-6621, by FAX at 801-530-6511, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/16/2016

Interested persons may attend a public hearing regarding this rule:

• 02/24/2016 09:00 AM, Heber Wells Bldg, 160 E 300 S, Conference Room 474, Salt Lake City, UT

This rule may become effective on:

03/23/2016

Authorized by:

Mark Steinagel, Director

RULE TEXT

R156. Commerce, Occupational and Professional Licensing.

R156-55d. Burglar Alarm Licensing Rule.

R156-55d-101. Title.

This rule is known as the "Burglar Alarm Licensing Rule".

 

R156-55d-102. Definitions.

In addition to the definitions in Title 58, Chapters 1 and 55, as used in Title 58, Chapters 1 and 55, or this rule:

(1) "Alarm company agent", as defined in Subsection 58-55-102(2), is further defined for clarification to include a direct seller in accordance with 26 U.S.C. Section 3508.

(2) "Conviction", as used in this rule, means criminal conduct where the filing of a criminal charge has resulted in:

(a) a plea of guilty or nolo contendere which is held in abeyance pending the successful completion of probation;

(b) a pending diversion agreement;

(c) a plea of nolo contendere;

(d) a guilty plea;

(e) a finding of guilt based on evidence presented to a judge or jury; or

(f) a conviction which has been reduced pursuant to Section 76-3-402.

(3) "Employee", as used in Subsection 58-55-102(17), means an individual:

(a) whose manner and means of work performance are subject to the right of control of, or are controlled by, [another person]an alarm company;

(b) whose compensation for federal income tax purposes is reported, or is required to be reported on a W-2 form issued by the [controlling person]company;[and]

(c) who is entitled to workers compensation and unemployment insurance provided by the individual's employer per state or federal law; and

(d) who performs services in Utah as an alarm company agent while employed by a licensed alarm company.

(4) "Immediate supervision", as used in this rule, means reasonable direction, oversight, inspection, and evaluation of the work of a person, in or out of the immediate presence of the supervision person, so as to ensure that the end result complies with applicable standards.

(5) "Sensitive alarm system information, as defined in Subsection 58-55-102(39), is further defined for clarification to include any information that would permit a person to compromise, bypass, deactivate, or disable any part of an alarm system. Sensitive alarm 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.

([5]6) "Unprofessional conduct", as defined in Title 58, Chapters 1 and 55, is further defined, in accordance with Subsection 58-1-203(1), in Section R156-55d-502.

 

R156-55d-302a. Qualifications for Licensure -- Application Requirements.

(1) An application for licensure as an alarm company shall include:

(a) [a record of criminal history or certification of no record of criminal history with respect to the applicant's qualifying agent, issued by the Bureau of Criminal Identification, Utah Department of Public Safety;

(b) ]two fingerprint cards containing:

(i) the fingerprints of the applicant's qualifying agent;

(ii) the fingerprints of each of the applicant's officers, directors, shareholders owning more than 5% of the stock of the company, partners, and proprietors; and

(iii) the fingerprints of each of the applicant's management personnel who will have responsibility for any of the company's operations as an alarm company within the state;

([c]b) a fee established in accordance with Section 63J-1-504 equal to the cost of conducting a check of records of the Federal Bureau of Investigation, and the Bureau of Criminal Identification, Utah Department of Public Safety, for each individual for whom fingerprints are required under Subsection (1)(b); and

([d]c) [a copy of a ]current photo identification for each individual for whom fingerprints are required under Subsection (1)(b). Acceptable photo identification shall include:

(i) a driver license issued by a state of the United States of American or Washington, District of Columbia; or

(ii) an identification card issued by the state of Utah.

(2) An application for license as an alarm company agent shall include:

(a) [a record of criminal history or certification of no record of criminal history with respect to the applicant, issued by the Bureau of Criminal Identification, Utah Department of Public Safety;

(b) ]two fingerprint cards containing the fingerprints of the applicant;

([c]b) a fee established in accordance with Section 63J-1-504 equal to the cost of conducting a check of records of the Federal Bureau of Investigation, and the Bureau of Criminal Identification, Utah Department of Public Safety, regarding the applicant; and

([d]c) [a copy of a ]current photo identification for the applicant. Acceptable identification shall include:

(i) a driver license issued by a state of the United States of America or Washington, District of Columbia; or

(ii) an identification card issued by the state of Utah.

 

R156-55d-302c. Qualifications for Licensure -- Experience Requirements -- Qualifying Agent.

In accordance with Subsections 58-1-203(1) and 58-1-301(3) the experience requirements for an alarm company applicant's qualifying agent in Subsection 58-55-302(3)(k)(i) are established as follows:

(1) An applicant shall have within the past ten years:

(a) not less than 6,000 hours of experience in a lawfully operated alarm company business of which not less than 2,000 hours shall have been in a managerial, supervisory, or administrative position; or

(b) not less than 6,000 hours of experience in a lawfully operated alarm company business combined with not less than 2,000 hours of managerial, supervisory, or administrative experience in a lawfully operated construction company.

(2) All experience under Subsection (1) shall be as an employee or in accordance with 26 U.S.C. Section 3508 as a direct seller, and under the immediate supervision of the applicant's employer;

(3) All experience must be obtained while lawfully engaged as an alarm company agent and working for a lawfully operated burglar alarm company.

(4) A total of 2,000 hours of work experience constitutes one year (12 months) of work experience.

(5) An applicant may claim no more than 2,000 hours of work experience in any 12 month period.

(6) No credit shall be given for experience obtained illegally.

 

R156-55d-302d. Qualifications for Licensure -- Examination Requirements -- Qualifying Agent.

In accordance with Subsections 58-1-203(1) and 58-1-301(3), the examination requirements for an alarm company applicant's qualifying agent in Subsection 58-55-302(3)(k)(i)(C) are defined, clarified, or established in that an individual to be approved as a qualifying agent of an alarm company shall:

(1) pass the Utah Burglar Alarm Law and Rule Examination with a score of not less than 75%;

(2) pass the Burglar Alarm Qualifier Examination with a score of not less than 75%; and

(3) an applicant for licensure who fails an examination shall wait 30 days before retaking a failed examination.

 

R156-55d-302e. Qualifications for Licensure -- Insurance Requirements -- Alarm Company.

In accordance with Subsections 58-1-203(1) and 58-1-301(3), the insurance requirements for licensure as an alarm company in Section 58-55-302(3)(k)(x)(A)are defined, clarified, or established as follows:

(1) an applicant for an alarm company license shall file with the Division a "certificate of insurance" issued by an insurance company or agent licensed in the state demonstrating the applicant is covered by comprehensive public liability coverage in an amount of not less than $300,000 for each incident, and not less than $1,000,000 in total;

(2) the terms and conditions of the policy of insurance coverage shall provide that the Division shall be notified if the insurance coverage terminates for any reason; and

(3) all licensed alarm companies shall have available on file and shall present to the Division upon demand, evidence of insurance coverage meeting the requirements of this section for all periods of time in which the alarm company is licensed in this state as an alarm company.

 

R156-55d-306. Change of Qualifying Agent.

In accordance with Subsection 58-55-304(6), an alarm company whose qualifier has ceased association or employment shall file with the Division an application for change of qualifier on forms provided by the Division accompanied by a record of criminal history or certification of no record of criminal history[,] and a fee established by the Division[, fingerprint cards, and copy of an identification as required under Subsection R156-55d-302a(1)].

 

R156-55d-502. Unprofessional Conduct.

(1) "Unprofessional conduct" includes:

(a) failing as an alarm company to notify the Division of the cessation of performance of its qualifying agent or failing to replace its qualifying agent as required under Section R156-55d-306;

(b) failing as an alarm company agent to carry or display a copy of the licensee's license as required under Section R156-55d-601;

(c) failing as an alarm agent to carry or display a copy of his Electronic Security Association (ESA)[, formerly known as the National Burglar and Fire Alarm Association (NBFAA)] level one certification or equivalent training as required under Section R156-55d-603;

(d) employing as an alarm company a qualifying agent or alarm company agent knowing that individual has engaged in conduct inconsistent with the duties and responsibilities of an alarm company agent.

(e) failing to comply with operating standards established by rule;

(f) failing as a burglar alarm company or a burglar alarm company agent to report an arrest, charge, indictment, or violation as required by Subsection R156-55d-605;

([f]g) a judgment on, or a judicial or prosecutorial agreement concerning a felony, or a misdemeanor involving moral turpitude, entered against an individual by a federal, state or local court, regardless of whether the court has made a finding of guilt, accepted a plea of guilty or nolo contendere by an individual, or a settlement or agreement whereby an individual has entered into participation as a first offender, or an action of deferred adjudication, or other program or arrangement where judgment or conviction is withheld;

([g]h) making false, misleading, deceptive, fraudulent, or exaggerated claims by an alarm company agent; and

([h]i) an alarm business or company having a residential or commercial false alarm rate 100% above the average of the residential or commercial false alarm rate of the municipality or county jurisdiction in which the alarm business or company's alarm systems are located.

(2) Unprofessional conduct by an alarm company agent, whether compensated as a W-2 employee or compensated in accordance with 26 U.S.C. Section 3508 as a direct seller, may also be unprofessional conduct of the alarm company employing the alarm company agent.

 

R156-55d-603. Operating Standards -- Alarm Installer.

In accordance with Subsection 58-55-308(1), the operating standards for the installer of an alarm system include the following:

(1) An alarm agent must be fully trained in the installation of an alarm system in accordance with the Electronic Security Association (ESA)[, formerly known as the National Burglar and Fire Alarm Association (NBFAA)] level one certification or equivalent training requirements prior to the alarm agent installing any alarm system in any residence, business, or public building within the state.

(2) An alarm agent upon receiving initial licensure may work under the direct supervision of an alarm agent who has level one certification for a period of six months from the time of initial licensure without being required to hold a level one certificate.

(3) An alarm agent shall carry evidence of the [NBFAA]ESA level one certification or equivalent training with him at all times.

 

R156-55d-604. Operating Standards -- Alarm System User Training.

In accordance with Subsection 58-55-308(1), the operating standards for the installation of an alarm system including the following:

(1) Upon completion of the installation of an alarm system by an alarm [business or ]company, the installing alarm agent shall review with the alarm user, or in the case of a [company,]business with its employees, the operation of the alarm system to ensure that the user understands the function of the alarm system.

(2) The alarm [business or ]company shall maintain training records, including installer and user false alarm prevention checklists, the dates of the training and the location of the training on each alarm system installed. These records shall be maintained in the files of the alarm [business or ]company for at least three years from the date of the training.

 

R156-55d-605. Operating Standards -- Standards of Conduct.

In accordance with Subsection 58-55-302(k)(iii)(B)(vii), the following standards shall apply with respect to notifying the Division of an arrest, charge, indictment, or violation.

(1) A licensed burglar alarm company agent shall notify the licensee's employing burglar alarm company within 72 hours of being arrested, charged, or indicted for any criminal offense above the level of a Class C misdemeanor.

(2) Within 72 hours after receiving notification pursuant to Subsection (1), the employing burglar alarm company shall provide written notification to the Division of the arrest, charge, indictment, or violation.

(3) The written notification required under Subsection (2) shall include:

(a) the employee's name;

(b) the name of the arresting agency, if applicable;

(c) the agency case number or similar case identifier;

(d) the date of the arrest, charge, indictment, or violation; and

(e) the nature of the criminal offense or violation.

 

KEY: licensing, alarm company, burglar alarms

Date of Enactment or Last Substantive Amendment: [October 23, 2014]2016

Notice of Continuation: February 7, 2012

Authorizing, and Implemented or Interpreted Law: 58-55-101; 58-1-106(1)(a); 58-1-202(1)(a); 58-55-302(3)(k); 58-55-302(3)(l); 58-55-302(4); 58-55-308

 

---