HB2446 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 41-619.51, Arizona Revised Statutes, as amended by Laws 2008, chapter 173, section 1 and chapter 300, section 4, is amended to read:

START_STATUTE41-619.51. Definitions

In this article, unless the context otherwise requires:

1. "Agency" means the supreme court, the department of economic security, the department of education, the department of health services, the department of juvenile corrections, the department of emergency and military affairs, the department of fire, building and life safety or the board of examiners of nursing care institution administrators and assisted living facility managers.

2. "Board" means the board of fingerprinting.

3. "Expedited review" means an examination, in accordance with board rule, of the documents an applicant submits by the board or its hearing officer without the applicant being present.

4. "Good cause exception" means the issuance of a fingerprint clearance card to an employee pursuant to section 41‑619.55.

5. "Person" means a person who is required to be fingerprinted pursuant to this article and any of the following:

(a) Section 8-105.

(b) Section 8‑322.

(d) Section 8‑802.

(e) Section 15‑183.

(f) Section 15‑534.

(g) Section 15‑1330.

(h) Section 15-1881.

(i) Section 26-103.

(j) Section 36‑411.

(k) Section 36‑425.03.

(l) Section 36-446.04.

(m) Section 36‑594.01.

(n) Section 36‑594.02.

(o) Section 36‑882.

(p) Section 36‑883.02.

(q) Section 36‑897.01.

(r) Section 36‑897.03.

(s) Section 36‑3008.

(t) Section 41-619.53.

(t) (u) Section 41‑1964.

(u) (v) Section 41‑1967.01.

(v) (w) Section 41‑1968.

(w) (x) Section 41-1969.

(x) (y) Section 41‑2814.

(z) Section 44‑7804.

(aa) Section 44‑7806.

(y) (bb) Section 46‑141, subsection A.

(z) (cc) Section 46‑321. END_STATUTE

Sec. 2. Repeal

Section 41‑619.51, Arizona Revised Statutes, as amended by Laws 2009, chapter 8, section 12, is repealed.

Sec. 3. Section 41-1758, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1758. Definitions

In this article, unless the context otherwise requires:

1. "Agency" means the supreme court, the department of economic security, the department of education, the department of health services, the department of juvenile corrections, the department of emergency and military affairs, the board of fingerprinting, the department of fire, building and life safety or the board of examiners of nursing care institution administrators and assisted living facility managers.

2. "Division" means the fingerprinting division in the department of public safety.

3. "Good cause exception" means the issuance of a fingerprint clearance card to an employee pursuant to section 41‑619.55.

4. "Person" means a person who is required to be fingerprinted pursuant to any of the following:

(a) Section 8‑105.

(b) Section 8‑322.

(d) Section 8‑802.

(e) Section 15‑183.

(f) Section 15-503.

(g) Section 15‑512.

(h) Section 15‑534.

(i) Section 15‑1330.

(j) Section 15-1881.

(k) Section 26-103.

(l) Section 36-411.

(m) Section 36‑425.03.

(n) Section 36-446.04.

(o) Section 36‑594.01.

(p) Section 36‑594.02.

(q) Section 36‑882.

(r) Section 36‑883.02.

(s) Section 36‑897.01.

(t) Section 36‑897.03.

(u) Section 36‑3008.

(v) Section 41-619.52.

(w) Section 41-619.53.

(x) Section 41‑1964.

(y) Section 41‑1967.01.

(z) Section 41‑1968.

(aa) Section 41-1969.

(bb) Section 41‑2814.

(cc) Section 44‑7804.

(dd) Section 44‑7806.

(cc) (ee) Section 46‑141, subsection A.

(dd) (ff) Section 46‑321.

5. "Vulnerable adult" has the same meaning prescribed in section 13‑3623. END_STATUTE

Sec. 4. Section 41-1758.01, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1758.01. Fingerprinting division; duties

The fingerprinting division is established in the department of public safety and shall:

1. Conduct fingerprint background checks for persons and applicants who are seeking employment with licensees, contract providers and state agencies or seeking employment or educational opportunities with agencies that require fingerprint background checks pursuant to sections 8‑105, 8‑322, 8-509, 8‑802, 15‑183, 15‑503, 15-512, 15‑534, 15‑1330, 15‑1881, 26-103, 36‑411, 36‑425.03, 36-446.04, 36‑594.01, 36‑594.02, 36‑882, 36‑883.02, 36‑897.01, 36‑897.03, 36‑3008, 41‑619.52, 41‑619.53, 41‑1964, 41‑1967.01, 41‑1968, 41‑1969, and 41‑2814, 44‑7804 and 44‑7806, section 46‑141, subsection A and section 46‑321.

2. Issue fingerprint clearance cards. On issuance, a fingerprint clearance card becomes the personal property of the cardholder and the cardholder shall retain possession of the fingerprint clearance card.

3. On submission of an application for a fingerprint clearance card, collect the fees established by the board of fingerprinting pursuant to section 41‑619.53 and deposit, pursuant to sections 35‑146 and 35‑147, the monies collected in the board of fingerprinting fund.

4. Inform in writing each person who submits fingerprints for a fingerprint background check of the person's right to petition the board of fingerprinting for a good cause exception pursuant to sections 41‑1758.03 and 41-1758.07.

5. Administer and enforce this article. END_STATUTE

Sec. 5. Title 44, Arizona Revised Statutes, is amended by adding chapter 35, to read:

CHAPTER 35

REGULATION OF ALARM BUSINESSES AND AGENTS

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE44-7801. Definitions

In this chapter, unless the context otherwise requires:

1. "Alarm" or "alarm system":

(a) Means any mechanical or electrical device that is designed to emit an audible alarm or transmit a signal or message if activated and that is used to detect an unauthorized entry into a building or other facility or alert other persons of the occurrence of a medical emergency or the commission of an unlawful act against a person or in a building or other facility.

(b) Includes a silent, panic, holdup, robbery, duress, burglary, check welfare and proprietor alarm which require emergency personnel to respond.

(c) Does not include a telephone call diverter or a system that is designed to report environmental and other occurrences and that is not designed or used to alert, or cause other persons to alert, public safety personnel.

2. "Alarm agent" means a person, whether an employee, independent contractor or otherwise, who acts on behalf of an alarm business and who tests, maintains, services, repairs, sells, rents, leases or installs alarm systems, other than an alarm system located on the person's own property or the property of the person's employer.

3. "Alarm business" means any person that, either by itself or through a third party, engages in the business of:

(a) Providing alarm monitoring services.

(b) Selling, leasing, renting, maintaining, repairing or installing a nonproprietor alarm system or service.

4. "Alarm subscriber" means any person who:

(a) Leases, rents or purchases any monitored alarm system or service from an alarm business.

(b) Leases or rents an alarm system.

5. "Controlling person":

(a) Means all current officers, managers and directors of an alarm business, and any person who is a stockholder, member, general or limited partner or owner or who holds more than ten per cent of the ownership, management rights, control or claim to the profits of an alarm business.

(b) Does not include current officers, directors or shareholders of stock in any corporation that is traded on a national stock exchange.

6. "Department" means the department of fire, building and life safety.

7. "Monitored alarm" means a device that is designed for the detection of an unauthorized entry in a premise and that if activated generates a notification signal.

8. "Proprietor alarm" means any alarm or alarm system that is owned by the alarm subscriber and that is not a monitored alarm.END_STATUTE

START_STATUTE44-7802. Exemptions

This chapter does not apply to:

1. A person or company that purchases, rents or uses an alarm that is affixed to a motor vehicle.

2. A person who owns or conducts a business of selling, leasing, renting, installing, maintaining or monitoring an alarm that is affixed to a motor vehicle.

3. A person who installs a nonmonitored proprietor alarm for a business that the person owns, is employed by or manages.

4. The installation or monitoring of fire alarm systems. END_STATUTE

START_STATUTE44-7803. Preemption; powers of local jurisdictions

A. The state legislature determines that the licensure of alarm businesses and alarm agents is a matter of statewide concern. The power to license an alarm business or alarm agent is preempted by this state.

B. A local jurisdiction may issue a citation or a cease and desist order to any person who violates this chapter or a local jurisdiction's ordinance relating to alarms and report these violations to the department for further action.

C. A county, city, including a charter city, or town may enact ordinances to:

1. Reduce the number of false alarms, including penalties for false alarms or not obtaining alarm subscriber permits.

2. Require a person to enroll in an alarm subscriber educational class and prescribe requirements for those classes. END_STATUTE

START_STATUTE44-7804. Alarm business license required; application; renewal of license

A. A person shall not operate an alarm business unless the person obtains an alarm business license from the department. A separate license is required for each business name under which an alarm business conducts business or advertises. All alarm business licenses issued pursuant to this chapter are valid for two years from the date of issuance.

B. The department may issue, deny, suspend or revoke an alarm business license. In order to obtain an alarm business license, each controlling person of the alarm business shall obtain a valid fingerprint clearance card issued pursuant to section 41‑1758.03.

C. A person shall submit an application for an alarm business license or renewal of the license to the department and the application shall include:

1. The name, business address, mailing address and telephone number of the alarm business. If the applicant is a corporation, general or limited partnership, limited liability company or other legal entity, the applicant shall state the name of the applicant exactly as shown in its articles of incorporation, charter, certificate of limited partnership, articles of organization or other organizational documents, as applicable, together with the state and date of incorporation and the names, residence addresses and dates of birth of each controlling person. If one or more of the partners, members or shareholders of the applicant is a corporation or other legal entity, the provisions of this subsection relating to information required of a corporation apply.

2. If the applicant is a corporation, general or limited partnership, limited liability company or other legal entity, designation of one of its officers, general partners or members to act as its responsible controlling person. The designated person shall complete and sign all application forms required of an individual applicant under this chapter. The applicant shall also provide a copy of the corporation, partnership or limited liability company formation documents.

3. The name of the applicant and each controlling person, any alias or other name used or by which the applicant or any controlling person has been previously known, the applicant's current residence and business addresses, telephone numbers, including fax numbers, and electronic mailing addresses.

4. The names and addresses of the alarm agents who are employed by the alarm business, along with copies of each alarm agent's license.

5. Proof that the applicant and each controlling person is at least eighteen years of age as indicated on a current driver license with picture or other picture identification document that is issued by a governmental agency.

6. The height, weight, color of eyes and hair and date of birth of the applicant and each controlling person.

7. Two current two inch by two inch photographs of the applicant and each controlling person.

8. Information as to whether the applicant or any controlling person, or the business on behalf of which the license is being applied for, has ever been refused or denied any similar license or permit or has had any similar license or permit revoked, canceled or suspended and the reason or reasons for the revocation, cancellation or suspension.

9. For all alarm businesses that install or service alarms, a copy of the registrar of contractor's license that is issued by this state.

10. A copy of the transaction privilege tax license that is issued by this state.

11. An express agreement by the alarm business that all records of the alarm business, whether written, recorded electronically or in any other form, relating to information required to be supplied to the department or a local law enforcement jurisdiction in case of an alarm, shall be immediately made available at any time on request for inspection by the department or local law enforcement jurisdiction.

12. A copy of the alarm business general liability and errors and omissions insurance coverage in an amount of not less than one million dollars per occurrence. The licensee shall notify the department of cancellation of either insurance. Cancellation of either insurance without immediate replacement may result in loss of license.

13. Other information, evidence, statements or documents that the department deems reasonably necessary to process and evaluate the application or renewal.

D. An applicant for an alarm business license or an applicant for a renewal of an alarm business license shall notify the department, in writing, of any change in the information contained in the license application or renewal application. The applicant shall notify the department within fifteen calendar days of the occurrence of the change.

E. A licensee shall file an application for a license renewal with the department no later than fourteen days before the expiration of the license that is currently in effect. If a license expires without the licensee having submitted a timely application for renewal, the holder of the expired license shall file a new application for an initial license.

F. A licensee shall place the alarm license number on all written bids that are submitted by the licensee and on all advertising, company vehicles, letterheads and documents used by the licensee in the conduct of a business regulated by this chapter. END_STATUTE

START_STATUTE44-7805. Duties of an alarm business

A. An alarm business shall:

1. Ensure that each controlling person of the alarm business has at all times a valid license and a valid fingerprint clearance card.

2. Ensure that each alarm agent who is an employee or under contract with the alarm business has a valid alarm agent license, a valid fingerprint clearance card and, if appropriate, the required training.

3. Ensure that each alarm business it contracts with is duly licensed under this chapter.

4. Install an alarm system that is compatible with the environment.

5. Take reasonable measures to prevent the occurrence of false alarms and, if it has agreed to provide maintenance or repair service to the system, service the system within seventy-two hours of a request for service.

6. Provide written and oral instructions in the proper use and operation of the alarm system to each of its alarm subscribers and the principal occupants of the buildings or premises that are protected by an alarm system. The instructions must specifically include all instructions to turn the alarm system on and off and to avoid false alarms.

7. Provide to each alarm subscriber, in writing, information on how to contact and file a complaint with the department.

8. If the alarm business is responsible for monitoring the alarm, provide the alarm subscriber with a tag identifying the pertinent alarm business, including the telephone number to call if the alarm has been activated.

9. Install an alarm system that will inactivate the audible alarm within fifteen minutes of its activation or that can be inactivated by the alarm business within fifteen minutes of notification of the alarm in case the alarm subscriber cannot be reached to inactivate the alarm system.

10. If an alarm subscriber is required to register with the local jurisdiction where the alarm is installed, notify the local jurisdiction of the alarm installation within ten days of the installation and furnish the alarm subscriber with the appropriate registration forms.

B. An alarm business shall not install a single action nonrecessed button as a device to activate a holdup or panic alarm.

C. On leasing, renting, selling or monitoring an alarm system, an alarm business shall:

1. Maintain records as to each of these alarm systems or services that include the name of the owner or occupant of the premises, the name and telephone number of the subscriber, a primary person and at least one alternate responsible person for responding to the premises if the alarm is activated, information concerning whether the alarm system includes an audible alarm and records of any alarm activation for a period of one year from the date of the activation. The alarm business shall make the records required by this paragraph available for inspection to the department and to any law enforcement officer of this state or a city or town of this state within seven days after written demand. The alarm business may require the department or law enforcement officer to complete an inspection log with the name, serial or badge number, time, date and purpose of the inspection.

2. Notify the local law enforcement agency of activated alarm systems in the manner prescribed by the local law enforcement agency, including reasonable information concerning the alarm system as the local law enforcement agency requires.

D. An alarm business that sells alarm systems but does not monitor, maintain, service or install an alarm system shall instruct each person who purchases an alarm system in the proper use and operation of the alarm system and inform each alarm subscriber or alarm purchaser to contact the purchaser's or subscriber's local law enforcement agency for information regarding false alarm programs. The instruction shall specifically include all instructions necessary to turn off the alarm and to avoid false alarms. END_STATUTE

START_STATUTE44-7806. Alarm agent licenses; application; training; renewal of license

A. The department may issue, deny, suspend or revoke an alarm agent license. Each alarm agent shall apply for an alarm agent license and a renewal of an alarm agent license from the department. All alarm agent licenses issued pursuant to this chapter are valid for two years from the date of issuance.

B. In order to obtain an alarm agent license, a person shall obtain a valid fingerprint clearance card issued pursuant to section 41‑1758.03.

C. An alarm agent who applies for an alarm agent license shall complete training within twelve months after obtaining a license. Training consists of at least eight hours of education that is offered by a nonprofit organization that has the alarm industry as its major interest.

D. A person shall not act as an alarm agent without having an alarm agent license or having applied for an alarm agent license from the department. A person shall apply for an alarm agent license within five working days after being employed by an alarm business. A person may work as an alarm agent for up to sixty days from the date of application while waiting for receipt of the alarm agent license. A person who violates this subsection is not eligible to receive an alarm agent license for one year after the date of the violation.

E. An alarm agent license application and an alarm agent license renewal application shall include:

1. The name of the applicant and any alias or other name, used by or by which the applicant has been previously known, the applicant's current residence and business addresses, telephone numbers, including fax numbers, and electronic addresses.

2. The name, business address and business telephone number of the alarm business where the applicant is or will be employed.

3. Proof that the applicant is at least eighteen years of age as indicated on a current driver license with a picture or other picture identification document that is issued by a governmental agency.

4. The height, weight, color of eyes and hair and date of birth of the applicant.

5. Two current two inch by two inch photographs of the applicant.

6. Information as to whether the applicant has ever been refused or denied any similar license or permit or has had any similar license or permit revoked, canceled or suspended and the reason for the revocation, cancellation or suspension.

7. A statement from the applicant's employer requesting and authorizing alarm agent status for the applicant.

8. Other information, evidence, statements or documents that the department deems reasonably necessary to process and evaluate the application or renewal.

D. The department shall send the alarm agent license directly to the applicant's employer.

E. An applicant for an alarm agent license or an applicant for renewal of an alarm agent license shall notify the department, in writing, of any change in the information contained in the license application or renewal application. The applicant or licensee shall notify the department within fifteen calendar days of the occurrence of the change.

F. An alarm agent shall carry the alarm agent license on the person of an alarm agent at all times while employed as an alarm agent, and, on request, the alarm agent shall display the license to any law enforcement agent or employee of the department. END_STATUTE

START_STATUTE44-7807. Alarm business and alarm agent license; fee; alarm business and alarm agent fund; exemption

A. The department shall prescribe the fees for an initial alarm business and alarm agent license, a renewal of an alarm business and alarm agent license and the replacement of a valid alarm business or alarm agent license that has been lost, stolen, destroyed or surrendered.

B. The fee must accompany the initial application and renewal application. Fees for alarm business and alarm agent licenses are nonrefundable and nontransferable and may not be prorated.

C. The alarm business and alarm agent fund is established consisting of fees collected pursuant to this section. The department shall administer the fund. Monies in the fund are non‑appropriated funds and shall be used, as necessary, to support the department's administration of the licensing, complaint and investigating, and hearing functions. Any unexpended and unencumbered monies remaining in the fund at the end of the fiscal year do not revert to the state general fund but remain in the fund, separately accounted for, as a contingency reserve. END_STATUTE

START_STATUTE44-7808. Denial of an alarm business license or alarm agent license; grounds; notice

A. The department shall not issue an alarm business license or an alarm agent license to a person who has:

1. Not filed a completed application.

2. Not paid all fees in full.

3. Grounds for denial as prescribed in this chapter.

B. At the time of the filing of an original application or a request for renewal of a license, the department shall deny a license or deny the renewal of a license if the department has reasonable grounds to believe that an applicant, licensee or controlling person:

1. Has prepared or filed an application or request for renewal of a license that contains false or misleading information, submitted false or misleading information in support of the application or request for renewal or failed or refused to make full disclosure of all information required by this chapter.

2. Has had a license relating to alarm businesses or alarm agents or a license of similar character that is issued by another licensing authority suspended, canceled or revoked within five years immediately preceding the date of the filing of the application.

3. Is not a United States citizen or lawful permanent resident alien or an alien who is authorized to work by the United States citizenship and immigration services.

4. Has violated a provision of this chapter or has committed any act that, if committed by a licensee, would be grounds for the denial or revocation of a license pursuant to this chapter.

5. Has had one or more citations by any jurisdiction that were reported to the department and that have not been properly resolved to the satisfaction of the citing jurisdiction or department.

C. The department shall give notice of any denial of a license application, or a request for renewal, in writing, either personally or by mail, to the address of record. The notice shall include the reasons for denial of the license or license renewal. END_STATUTE

START_STATUTE44-7809. Suspension or revocation of alarm business license or alarm agent license; grounds

The department may suspend or revoke any alarm business or alarm agent license if the department has reasonable grounds to believe any of the following:

1. The licensee, or any controlling person, has violated any of the grounds for denial of a license as described in section 44‑7808.

2. The licensee, or any controlling person, has failed to comply with the requirements of this chapter, including failure to provide any changes in license information.

3. The licensee has failed to comply with the requirements of this chapter relating to alarm business or alarm agent responsibilities.

4. The licensee has failed to maintain in good standing all licenses that are required pursuant to this chapter. END_STATUTE

START_STATUTE44-7810. Denial of license; suspension or revocation of license; administrative review; judicial review

A. The department may on investigation refuse to license any applicant or may suspend or revoke any license pursuant to title 41, chapter 6, article 10 by entering an order to that effect, together with findings in respect to the order and by notifying the applicant or licensee either personally or by certified mail, return receipt requested, sent to the address of record.

B. except as provided in section 41‑1092.08, subsection h, A decision of the department is subject to judicial review pursuant to title 12, chapter 7, article 6. END_STATUTE

START_STATUTE44-7811. Denial of alarm business license or alarm agent license; effect

A. A person whose application for a license or a renewal of a license under this chapter has been denied or whose license has been suspended or revoked shall not apply for any license required under this chapter within one year after the denial, suspension or revocation of the license unless the cause of the denial, suspension or revocation has, to the satisfaction of the department, been removed.

B. This section does not apply to a denial of an application or a denial of a renewal of a license if the reason for denial was for an administrative, technical or otherwise nonmaterial reason. END_STATUTE

START_STATUTE44-7812. Termination or cancellation of license

A. An alarm agent who terminates employment with an alarm business shall immediately surrender the alarm agent's license to the alarm business. The alarm business shall notify the department within five business days after an alarm agent ceases to be employed by the alarm business as an employee or agent.

B. An alarm agent who terminates employment with an alarm business and who changes employment to another alarm business licensee shall notify the department of the transfer, in writing, within fifteen calendar days of the change in employment. The department shall issue a replacement license on payment of the replacement license fee.

C. An alarm business may cancel an alarm business license by filing a notice of cancellation of the license with the department. The notice of cancellation shall include the effective date of the cancellation.END_STATUTE

START_STATUTE44-7813. Failure to obtain alarm business license; warning; violation; classification

A. A person who operates an alarm business without a license shall be issued a warning and has ten days to apply for a license. A person who receives such a warning shall not engage in the alarm business until an alarm business license is issued. A controlling person who violates this subsection is not entitled to obtain an alarm business license for the period of one year following the date of the violation.

B. A person who violates this chapter is guilty of a class 1 misdemeanor. END_STATUTE

START_STATUTE44‑7814. Program termination

The regulation of alarm businesses and alarm agents pursuant to this chapter ends on July 1, 2020 pursuant to section 41‑3102. END_STATUTE

Sec. 6. Applicability

Title 32, chapter 44, Arizona Revised Statutes, does not apply to title 44, chapter 35, Arizona Revised Statutes, as added by this act.

Sec. 7. Delay of training requirement

The training required by section 44‑7806, Arizona Revised Statutes, as added by this act, only applies to those alarm agents who obtain an alarm agent license twelve months after the effective date of this act.