SRC-TAG S.B. 1252 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 1252
By: Armbrister
Criminal Justice
6-27-2003
Enrolled
DIGEST AND PURPOSE 

Under current law, the alarm system industry is regulated under Chapter
1702 (Private Security), Occupations Code.  The alarm system industry has
changed since the provisions to regulate this industry were enacted.  S.B.
1252 amends the Occupations Code to reflect advances in security alarm
system technology.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Commission on
Private Security in SECTION 10 (Section 1702.236, Occupations Code) of the
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1702.002, Occupations Code, by amending
Subdivisions (1) and (6) and adding Subdivisions (6-a), as follows:  

 (a-1)   Redefine "alarm system." 
 
 (a-6)   Redefines "detection device."

 (6-a)  Defines "electronic access control device."

SECTION 2.  Amends Subchapter D, Chapter 1702, Occupations Code, by adding
1702.0635, as follows: 

Sec.  1702.0635.  RESTRICTIONS ON CERTAIN RULES.  Prohibits the Texas
Commission on Private Security (commission) from adopting rules or from
establishing  unduly restrictive experience or education requirements that
limit a person's ability to be licensed as an electronic access control
device company or be registered as an electronic access control device
installer. 

SECTION 3.  Amends Subchapter F, Chapter 1702, Occupations Code, by adding
Section 1702.1025, as follows: 

Sec.  1702.1025.  ELECTRONIC ACCESS CONTROL DEVICE COMPANY LICENSE
REQUIRED; SCOPE OF LICENSE.  (a)  Prohibits a person from taking certain
actions, unless the person holds a license as an electronic access control
device company. 

(b)  Prohibits a person licensed as an electronic access control device
company from installing alarm systems unless otherwise licensed or
registered to install alarm systems under this chapter. 

SECTION 4.  Amends Sections 1702.103(a) and (b), Occupations Code, as
follows: 

 (a)  Includes a new class of  license classifications, Class D.

  (b)  Makes a conforming change.

SECTION 5.  Amends Subchapter F, Chapter 1702, Occupations Code, by adding
Sections 1702.1055 and 1702.1056, as follows:  

Sec.  1702.1055.  ELECTRONIC ACCESS CONTROL DEVICE COMPANY.  Provides that
a person acts as an electronic access control device company for the
purpose of this chapter if the person installs or maintains an electronic
access control device. 

Sec.  1702.1056.  LOCKSMITH COMPANY.  Provides that a person acts as a
locksmith company for the purpose of this chapter if the person installs
and maintains mechanical security devices, including deadbolts and locks
and cuts keys for mechanical security devices.  
 
SECTION 6.  Amends Section 1702.124(a), Occupations Code, to prohibit the
commission from issuing a license unless the applicant files with the
commission evidence of general liability insurance policy on a certificate
of insurance form prescribed by the Texas Department of Insurance, rather
than the commission, and countersigned by an insurance agent licensed in
this state; or a certificate of insurance for surplus lines coverage
obtained under Chapter 981 (Surplus Line Insurance), rather than Article
1.14-2, Insurance Code, through a licensed Texas surplus lines agent
resident in this state. 

SECTION 7.  Amends Section 1702.221, Occupations Code, to require an
individual to register with the commission as provided by commission rule
if the individual is employed as an electronic access control device
installer or locksmith.  

SECTION 8.  Amends Subchapter J, Chapter 1702, Occupations Code, by adding
Section 1702.2225, as follows: 

Sec.  1702.2225.  LOCKSMITH COMPANY REGISTRATION REQUIRED.  Prohibits  a
person from taking certain actions, unless the person is registered as a
locksmith company. 

SECTION 9.  Amends Subchapter J, Chapter 1702, Occupations Code, by adding
Sections 1702.2226 and 1702.2227, as follows: 

Sec.  1702.2226.  ELECTRONIC ACCESS CONTROL DEVICE INSTALLER.  (a)
Provides that an individual acts as an electronic access control device
installer for purposes of this chapter if the individual installs,
maintains, or repairs an electronic access control device. 

(b)  Prohibits a person registered as an electronic access control device
installer from installing alarm system unless the person is registered
under this chapter as an alarm system installer. 

Sec.  1702.2227.  LOCKSMITH.  Provides that an individual acts as a
locksmith for the purposes of this chapter if the person installs and
maintains mechanical security devices, including deadbolts and locks, and
cut keys for mechanical security devices.  

SECTION 10.  Amends Subchapter J, Chapter 1702, Occupations Code, by
adding Section 1702.236, as follows: 

Sec.  1702.236.  EXAMINATION AND TRAINING REQUIREMENTS FOR ELECTRONIC
ACCESS CONTROL DEVICE INSTALLERS.  (a)  Requires the commission to require
an individual who applies for registration as an electronic access control
device installer to pass an examination given by the commission or a
person approved by the commission.  Requires the examination to cover
material related to access control. 

(b)  Requires the commission, before September 1, 2005, to allow an
electronic access  control device installer to obtain or renew a
certificate of registration by fulfilling the requirements of a
commission-approved, industry-based educational training program. Provides
that this subsection expires September 1, 2006. 

(c)  Authorizes  the commission, on and after September 1, 2005, by rule
to allow an electronic access control device installer to obtain or renew
a certificate of registration by fulfilling  the requirements of a
commission-approved, industry-based educational training program. 

(d)  Authorizes a party who asserts that the commission has adopted a rule
in violation of Subsection (b) or (c) to appeal to the attorney general
for a determination of whether the rule violates the subsection because
the rule does not comply with reasonable business practices.  Requires the
attorney general to make a determination on an appeal submitted under this
section not later than the 90th day after the date the appeal is submitted
or within a reasonable time as circumstances require.  Prohibits the
challenged rule from taking effect until after the attorney general makes
a determination. Provides that this subsection expires September 1, 2007. 

SECTION 11.  Amends Section 1702.223, Occupations Code, as follows:

(a)  Provides that an individual acts as an alarm systems installer for
purposes of this chapter if the individual installs, maintains, or repairs
an alarm system or detection device. 

(b)  Authorizes an alarm systems installer to install, maintain, or repair
an electronic access control device. 

SECTION 12.  Amends Section 1702.239(a), Occupations Code, to authorize
the commission to approve only nationally recognized training programs
that consist of at least 16 hours, rather than 20 hours, of classroom
study in the areas of work allowed by the registration.  

SECTION 13.  Amends Section 1702.324(b), Occupations Code, to provide that
this chapter does not apply to a manufacturer or a manufacturer's
authorized distributor who sells equipment to a  license holder or
registrant that is used in the operations for which the person is required
to be licensed or registered.   Provides that this chapter does not apply
to a person who is a licensed professional engineer practicing engineering
supervising engineering practice under Chapter 1001, Occupations Code,
rather than the Texas Engineering Practice Act (Article 3271(a),
V.T.C.S.), including forensic analysis, burglar alarm system engineering,
and necessary date collection.  Deletes text providing that this chapter
does not apply to a locksmith.  Redesignates  (b)(6)-(b)(12) as
(b5)-(b)(11).  

SECTION 14.  Amends Section 1702.328, Occupations Code, to provide that
this chapter does not apply to a person in the business of building
construction that installs electrical wiring and devices that may include
in part the installation of a burglar alarm or detection device if the
person does not service or maintain alarm systems, electronic access
control devices, locks, rather than burglar alarms, or detection devices;
nor does it apply to person who sells exclusively  over the counter or by
mail order alarm systems or detection device, rather than signal devices,
burglary alarms, television cameras, still cameras, or other electrical,
mechanical, or electronic devise used for preventing or detecting
burglary, theft, or other losses. 

SECTION 15.  (a)  Requires the commission, by January 1, 2004, to adopt
rules necessary to administer the changes made by this Act to Chapter
1702, Occupations Code. 

(b)  Provides that notwithstanding Sections 1702.1025 and 1702.2225,
Occupations Code, as added by this Act, and Section 1702.221, Occupations
Code, as amended by this Act, a person is not required to hold a license
as an electronic access control device installer, a locksmith company, or
a locksmith before September 1, 2004. 
 
SECTION 16.  (a)  Provides that except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2003. 

(b)  Provides that Sections 1702.1025 and 1702.2225, Occupations Code, as
added by this Act, take effect January 1, 2004.