CHAPTER 281

FORMERLY

HOUSE BILL NO. 160

AS AMENDED BY HOUSE AMENDMENT NOS. 1 AND 2 AND

SENATE AMENDMENT NOS. 2 AND 3

AN ACT TO AMEND TITLES 24 AND 30, OF THE DELAWARE CODE RELATING TO THE REGULATION OF SECURITY SYSTEMS AND PROTECTIVE SERVICES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each House thereof concurring therein):

Section 1. Amend Title 24 of the Delaware Code, by adding thereto a new Chapter 12, which shall read as follows:

"CHAPTER 12. SECURITY SYSTEMS AND PROTECTIVE SERVICES §1201. Definitions

(a) 'Security Business' shall mean the sale of a security system where the vendor installs the device, or the monitoring or service of a security system on protected premises.

(b) 'Security System' shall mean sensor-based devices designed to detect or signal the intrusion on or unauthorized use of equipment, residence, structure or leasehold. This section shall not include any electronic software programs designed to protect computational devices.

(c) 'Officers or employees of the business' shall include all persons associated with a security business except stockholders of a corporation whose stock is publicly traded.

§1202. License required, penalty

No persons shall operate a security business without having obtained a license, as provided herein, to conduct such business. The Division of Revenue shall not issue a license to a security business under the authority of Chapter 23, Title 30 of this Code without the approval of the Superintendent of the Delaware State Police.

Operating a security business without a license shall be punishable pursuant to §1214 of this Chapter. Each day a person operates a security business without a license may be counted as a separate violation.

§1203. Application for a license

(a) In addition to the requirements of the Division of Revenue, an applicant for a license to operate as a security business in this State shall furnish the following information to the Superintendent of the State Police:

(1) The name and address of the security business and the location or locations where it intends to operate within the State;

(2) If the applicant is a corporation, the application shall state the date and place of incorporation, the name and address of its resident agent if incorporated in Delaware with a principal place of business outside the State, the location of the applicant's principal place of business, and a list of the principal corporate officers with their business and home addresses;

(3) if the applicant intends to operate as a partnership, the application shall list each of the partners with their business and home addresses;

(4) A statement as to the length of time the applicant has been engaged in the security business and where engaged, and the date when the security business commenced operation in this State or when the sucurity business intends to commence such operation;

(5) The Specific nature of the security business;

(6) Each applicant's full name, business address and telephone number; home address and telephone number; and date and place of birth;

(7) The name and address of the applicant's present place or places of employment for the past three (3) years and the length of time so employed, stating the principal source of income for any individual not regularly employed in one business;

(8) A list of all felony and misdemeanor convictions In any jurisdiction of all Individuals listed In the application;

(9) One (1) set of classifiable finger prints recorded in the manner required by the Superintendent of State Police;

(10) A statement as to whether the individual has ever been denied a license or permit in any Jurisdiction to engage in the security business or has had such license or permit revoked or suspended;

(11) If neither the applicant nor any other person named above will operate the business on a daily basis. the name and home address of the person who will be responsible for the operation of the business with information on his training or experience in the field or security systems or protective services;

(12) The Superintendent may require that the application include any other information which he may reasonable deem necessary to determine whether the applicant or individual signing the application meets the requirements of this statute or to establish the truth of the facts set forth in the application.

(1) If the applicant is an individual and does not reside or operate any business or is not employed within the State, or in the event the applicant is a form of partnership and no owner or general partner resides, operates a business or is employed within the State. then the application must also be subscribed and sworn to by the Individual having the authority and responsibility for the management and operations of the security business with this State.

(2) If the applicant is a corporation, the application shall be subscribed and sworn to by at least one principal corporate officer, either the President. Vice—President, Treasurer, Secretary or Comptroller. If the applicant is a corporation and none of its principal corporate officers are responsible for the management and operation of the security business within the State, the application shall also be subscribed and sworn to by the individual having the authority and responsibility for the management and operations of the security business within the State.

(3) An application for a license to operate a security business shall be signed by at least one person eighteen years of age or older.

§1204. Criteria for evaluating applications

The Superintendent shall review each application for a license to operate a security business. He shall investigate the character of each applicant and each officer of the corporation or partner named in the application to the extent he deems necessary. If the Superintendent finds that all parties whose names have been submitted are of good character, and that the business is organized for a legitimate purpose, he may approve the issuance of a business license by the Division of Revenue to the applicant. Evidence of a lack of good character shall include: (1) a record of arrests and/or convictions for crimes involving offenses against the person; dishonesty, or fraud; (2) a record of complaints filed with the Division of Consumer Affairs or Better Business Bureau regarding the applicant, officers or partners in the business, or the proposed manager of the business.

Evidence of a lack of a legitimate purpose shall include: (1) a total lack of training or experience in the installation of burglar alarms or alarm systems by any person named in the application; (2) failure to obtain a bond as required by §1212.

§1205. License renewal and transferability

Each license shall expire two (2) years after the date of issuance. No license issued pursuant to this Chapter shall be assigned or transferred, either by operation of law or otherwise.

§1206. Change in Ownership or Site of Bushless

(b) In the event of any change in the membership of the firm or in the officers of directors of any association or corporation or any change in the address of any office or location of such business, the Superintendent shall be notified in writing of such change within five (5) days thereafter. Failure to give such notification shall be sufficient cause for revocation of the license.

(c) Each new member of the firm or of the officers or directors of any association or corporation shall provide the information required by §1203 of this title. The Superintendent shall then review each application as provided in §1204 of this title. If the Superintendent finds that the applicant Is not of good character, he shall revoke the license. in the event that a license is revoked pursuant to this subsection, the license holder shall be afforded a hearing before the Superintendent and shall have the right to appeal to the Director of Public Safety in conformity with the State Administrative Procedures Act.

§1207. Posting of license

(a) Before any applicant shall exercise any rights under the license issued to him, such license, or a certified copy thereof, shall be posted and at all times thereafter, while the same is in force, be displayed in a conspicuous place in the principal office and in each bureau, agency, subagency, office or branch office for which it is issued.

(b) No person holding any license approved by the Superintendent under this Chapter shall:

Post or permit such license to be posted upon premises other than those described therein or to which it may be transferred pursuant to the provisions of this Chapter; or

Fail to maintain such license in a conspicuous place in such offices or places of business; or

Knowingly alter, deface or destroy any such license or permit the alteration, defacement or destruction thereof.

1208. Employee identification cards

(a) Any person operating a security business shall provide the Superintendent with a list of the names, addresses, Social Security numbers and one set of classifiable fingerprints recorded in the manner required by the Superintendent of employees as hired.

(b) No individual shall function as a security agent or perform the duties described in subsection (c) of this section without first obtaining the identification card, required by this Section.

(c) Owners, principal corporate officers, partners, employees, and managers of all security businesses shall be required to obtain identification cards if they directly engaged in selling, installing, altering, servicing, moving, maintaining, repairing, replacing, monitoring, responding to. or causing others to respond to security systems within the State.

(d) Security agents who are employed by persons who were engaged in the security business on the effective date of this statute shall have sixty (60) days to file an application for an identification card under this Section and may continue to function as a security agent pending a final determination of such application.

(e) A temporary identification card may be issued by a security business licensed under this statute to any of its security agents or any individual required to obtain an identification card prior to the issuance of a permanent identification card for any such individual by the business. The form. requirements and conditions for issuance and use of temporary identification cards shall be prescribed by the Superintendent.

(1) The temporary or permanent identification card shall be carried by any individual required to obtain an identification card under this statute whenever such individual is engaged in the security business and shall be exhibited upon request.

The Superintendent may refuse to approve an identification card if the identification card applicant has been convicted of a felony or a misdemeanor in any jurisdiction and the Superintendent finds that such conviction reflects unfavorably on the fitness of such applicant to engage in the security business or to be employed by the security business.

The permanent and temporary identification card Issued by the business shall Include the name and description identifying the cardholder, the name of the security agent's employer and the number of any other information which is required or which the business may wish to Include.

(1) No permanent identification card or temporary identification card issued pursuant to the provisions of this Chapter shall be transferable. Temporary identification cards Issued by a security business must be surrendered to the business by the cardholder upon termination of employment.

§1209. Renewal of identification card—notification of changes

Identification cards approved by the Superintendent shall be valid for a period of one (1) year.

The Superintendent may refuse to renew an identification card for any grounds set forth In Sections 1204 or 1208 of this Chapter.

A security business shall notify the Superintendent within ten (10) days after the termination of employment of. or association of. any cardholder of such security business.

§1210. Request for hearing upon receipt of notice of denial of an identification card or license

After receipt of written notice from the Superintendent of denial or approval for a license or an identification card, the applicant shall be afforded a hearing before the Superintendent and shall have the right to appeal to the Director of Public Safety in conformity with the State Administrative Procedures Act.

§1211. Suspension or revocation; hearings; notices

Identification cards may be suspended or revoked by the Superintendent on the grounds that the holder is not considered of good character.

In the event that the Superintendent suspends or revokes an identification card, the cardholder, upon receipt of the notice of suspension or revocation, shall cease to perform any services related to the security business.

Both the identification cardholder and the security business which employs him or with which he is associated shall be notified by the Superintendent of the suspension or revocation of an identification card.

§1212. Issuance of license; fee; bond; disposition of fees

If the application for a license is approved by the Superintendent, the Division of Revenue shall issue and deliver to the applicant, a license to conduct business and to maintain one or more bureaus, agencies, or offices for the conduct of such business at the locations stated in the application. As many copies of the license as there are to be offices, bureaus, agencies, or branch offices, shall be supplied upon:

Payment by the applicant to the Division of Revenue of a license fee of $150.00, and

Execution by the applicant and delivery to the Department of Public Safety of a bond with a surety company authorized to be surety in this State and approved as to form, manner of execution and sufficiency by the Superintendent, payable to the State, and which shall be for the benefit of any persons injured by the willful, malicious or wrongful act of the applicant, in the amount of 810.000.00. The bond shall be conditioned for the faithful and honest conduct of such business by the applicant.

§1213. Emergencies with respect to public health, welfare or safety

Under circumstances in which the Superintendent determines that a public emergency exists or that the public health, welfare or safety may be Jeopardized the Superintendent may, upon application by the licensee or any third party affected by such termination, revocation or suspension, extend the time for the termination, revocation or suspension.

After the Superintendent has issued a notice of intent to revoke or suspend a security business license or to revoke or suspend a security agent identification card, the licensee or identification cardholder may request that his license or identification card remain in efect subject to the terms of a written order of consent to be issued by the Superintendent. Denial of a request for consent order negotiations shall not be subject to Judicial review.

§1214. Penalties

(a) It shall be unlawful for a person to:

Conduct a security business without a license;

Fail to obtain an identification card as required by Section 1208;

Willfully and knowingly fail to notify subscribers of a security business of the suspension of a security business of the suspension or revocation of its license;

willfully and knowingly fall to file the surety bond required by Section 1213;

Willfully and knowingly fail to surrender a revoked license certificate or to surrender an identification card;

Willfully and knowingly submit false information of a material nature in any application or renewal application for a security business license or for an identification card.

(b) Any person found guilty of violating any provision of this Section shall be subject to a fine riot to exceed five hundred dollars (8500.00) or imprisonment for a period not to exceed ninety (90) days or both."

Section 2. Amend Section 2301, Title 30 of the Delaware Code, by adding the following new paragraph to Subsection (a) in alphabetical order:

"Security business, $150. 'Security business' includes every security business defined in §1201, Title 24 of the Delaware Code."

Approved June 25, 1984.