Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Carter                                       H.B. No. 2130

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale of alarm products or services and burglary

 1-3     detection devices.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 3A, Private Investigators and Private

 1-6     Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil

 1-7     Statutes), is amended to read as follows:

 1-8           Sec. 3A.  Seller's certificate.  (a)  Except as provided by

 1-9     Subsection (c) of this section, the provisions of this Act do not

1-10     apply to a person who sells detection devices or other devices for

1-11     preventing or detecting burglary [in a person's residence] if:

1-12                 (1)  the person does not install, service, or maintain

1-13     detection devices;

1-14                 (2)  the person holds a valid seller's certificate

1-15     issued by the board;

1-16                 (3)  the person has, as a precedent for obtaining a

1-17     seller's certificate, submitted to the board an application for a

1-18     seller's certificate which shall include the person's full name,

1-19     residence telephone number, date and place of birth, and Social

1-20     Security number and two sets of classifiable fingerprints;

1-21                 (4)  the person has paid to the board a seller's

1-22     certificate fee as established by the board, but not to exceed $25,

1-23     which certificate shall be valid for a period of two years;

1-24                 (5)  there is filed with the board, either by the

 2-1     manufacturer, distributor or sellers of such devices, a certificate

 2-2     evidencing insurance for liability for bodily injury or property

 2-3     damage arising from faulty or defective products in an amount not

 2-4     less than $1 million combined single limit, provided that such

 2-5     policy of insurance need not relate exclusively to burglary

 2-6     devices;

 2-7                 (6)  there has been filed with the board, either by the

 2-8     manufacturer, distributor, or sellers of such devices, a surety

 2-9     bond executed by a surety company authorized to do business in this

2-10     state in the sum of $10,000 in favor of the State of Texas, and any

2-11     customer purchasing such devices in his home who does not receive

2-12     delivery of the devices in accordance with the contract or

2-13     agreement may bring an action against the bond to recover the down

2-14     payment or purchase price actually paid; and

2-15                 (7)  the person is not employed by a security services

2-16     contractor.

2-17           (b)  The board shall approve an application for a seller's

2-18     certificate and shall issue such certificate to an applicant unless

2-19     the background check of the applicant discloses a felony conviction

2-20     other than that for which a full pardon has been granted, or if any

2-21     information provided in the application is false.

2-22           (c)  It shall be unlawful and punishable as provided in

2-23     Section 44 of this Act for any person who holds a current seller's

2-24     certificate to install, service, monitor, or respond to detection

2-25     devices used to prevent or detect burglary or other losses of that

2-26     type.

2-27           (d)  Conviction for a violation of this section by a person

2-28     subject to this section who has obtained a certificate constitutes

2-29     a ground for the suspension or revocation of the person's seller's

2-30     exemption certificate.  The board may suspend or revoke the

 3-1     certificate after a hearing conducted in the manner provided by

 3-2     Section 11B of this Act.

 3-3           SECTION 2.  EFFECTIVE DATE.  This Act takes effect September

 3-4     1, 1997.

 3-5           SECTION 3.  EMERGENCY.  The importance of this legislation

 3-6     and the crowded condition of the calendars in both houses create an

 3-7     emergency and an imperative public necessity that the

 3-8     constitutional rule requiring bills to be read on three several

 3-9     days in each house be suspended, and this rule is hereby suspended.