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S.B. No. 568
AN ACT
relating to private security and personal emergency response system
providers; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 214.194, Local Government Code, is
amended to read as follows:
Sec. 214.194. [FEE FOR] MUNICIPAL PERMIT FEE GENERALLY.
(a) If a municipality adopts an ordinance that requires a person
to pay an annual fee to obtain a permit from the municipality before
the person may use an alarm system in the municipality, the fee
shall be used for the general administration of this subchapter,
including the provision of responses generally required to
implement this subchapter other than specific responses to false
alarms.
(b) A municipal permit fee imposed under this section may
not exceed the rate of $50 a year for a residential location.
SECTION 2. The heading to Section 214.195, Local Government
Code, is amended to read as follows:
Sec. 214.195. NONRENEWAL OR REVOCATION OF PERMIT AND
TERMINATION OF MUNICIPAL RESPONSE; [AND] DISCRIMINATION
PROHIBITED.
SECTION 3. Subsections (a) and (d), Section 214.195, Local
Government Code, are amended to read as follows:
(a) Except as provided in Subsection (d) [of this section],
a municipality may not terminate its law enforcement response to a
residential permit holder because of excess false alarms if the
false alarm fees are paid in full.
(d) A municipality may revoke or [set standards for systems
to be permitted and may] refuse to renew the permit of an alarm
system that has had eight or more false alarms during the preceding
12-month period [permit particular systems which in its discretion
have a history of unreliability].
SECTION 4. Subchapter F, Chapter 214, Local Government
Code, is amended by adding Section 214.1955 to read as follows:
Sec. 214.1955. MULTIUNIT HOUSING FACILITIES. (a) A
municipality may not refuse to issue an alarm system permit for a
residential location solely because the residential location is an
individual residential unit located in a multiunit housing
facility.
(b) In issuing an alarm system permit for an alarm installed
in an individual residential unit of a multiunit housing facility,
the municipality shall issue the permit to the person occupying the
individual residential unit.
(c) A municipality may impose a penalty under Section
214.197 for the signaling of a false alarm on the premises of a
multiunit housing facility for a facility other than an individual
residential unit only if the permit holder is notified of:
(1) the date of the signaling of the false alarm;
(2) the address of the multiunit housing facility
where the signaling of the false alarm occurred; and
(3) the identification of the individual facility, if
applicable, located on the multiunit housing facility premises
where the signaling of the false alarm occurred.
SECTION 5. Section 214.197, Local Government Code, is
amended to read as follows:
Sec. 214.197. PENALTIES FOR FALSE ALARMS [PENALTY
LIMITATIONS]. [(a)] A municipality may [not] impose a penalty [or
fee] for the signaling of a false alarm by a burglar alarm system if
[unless] at least three [five] other false alarms have occurred
during the preceding 12-month period. The amount of the penalty for
the signaling of a false alarm as described by Section 214.196 may
not exceed:
(1) $50, if the location has had more than three but
fewer than six other false alarms in the preceding 12-month period;
(2) $75, if the location has had more than five but
fewer than eight other false alarms in the preceding 12-month
period; or
(3) $100, if the location has had eight or more other
false alarms in the preceding 12-month period
[(b) A penalty or fee imposed for a false alarm must be
established by ordinance based on the type and level of emergency
response provided. This fee may not exceed $50 in the case of the
category of burglar alarms. The penalty or fee for a false alarm
may not exceed the actual expenses incurred for the response].
SECTION 6. Subchapter F, Chapter 214, Local Government
Code, is amended by adding Sections 214.198, 214.199, and 214.200
to read as follows:
Sec. 214.198. VERIFICATION. A municipality may require an
alarm systems monitor to attempt to contact the occupant of the
alarm system location twice before the municipality responds to the
alarm signal.
Sec. 214.199. EXCEPTION OF MUNICIPALITY FROM ALARM SYSTEM
RESPONSE. (a) The governing body of a municipality may not adopt
an ordinance providing that law enforcement personnel of the
municipality will not respond to any alarm signal indicated by an
alarm system in the municipality unless, before adopting the
ordinance, the governing body of the municipality:
(1) makes reasonable efforts to notify permit holders
of its intention to adopt the ordinance; and
(2) conducts a public hearing at which persons
interested in the response of the municipality to alarm systems are
given the opportunity to be heard.
(b) A municipality that adopts an ordinance under this
section may not impose or collect any fine, fee, or penalty
otherwise authorized by this subchapter.
Sec. 214.200. PRIORITY OR LEVEL OF RESPONSE NOT AFFECTED;
LIABILITY OF MUNICIPALITY FOR NONRESPONSE. (a) Nothing in this
subchapter:
(1) affects the priority or level of response provided
by a municipality to a permitted location; or
(2) waives the governmental immunity provided by law
for a municipality.
(b) A municipality that does not respond to an alarm signal
is not liable for damages that may occur relating to the cause of
the alarm signal.
SECTION 7. Subchapter L, Chapter 1702, Occupations Code, is
amended by adding Sections 1702.286, 1702.287, and 1702.288 to read
as follows:
Sec. 1702.286. DUTIES OF ALARM SYSTEMS COMPANY. (a) On
the installation or activation of an alarm system, an alarm systems
company shall distribute to the occupant of the alarm system
location information summarizing:
(1) the applicable law relating to false alarms,
including the potential for penalties and revocation or suspension
of a permit;
(2) how to prevent false alarms; and
(3) how to operate the alarm system.
(b) An alarm systems company shall notify the municipality
in which the alarm system is located of an installation or
activation of an alarm system not later than the 30th day after the
date of the installation or activation. The alarm systems company
shall provide to the municipality:
(1) the alarm systems company name;
(2) the alarm systems company license number;
(3) the name of the occupant of the alarm system
location;
(4) the address of the alarm system location; and
(5) the date of installation or activation.
(c) Information provided to a governmental body under this
section is confidential and subject to disclosure only as provided
under Section 1702.284.
(d) An alarm systems company commits an offense if the
company violates Subsection (a) or (b). An offense under this
subsection is a Class C misdemeanor.
(e) The duties imposed by this section on an alarm systems
company do not apply to the installation or activation of a personal
emergency response system, as defined under Section 1702.331.
Sec. 1702.287. DETECTION DEVICE CONTROL PANELS; MINIMUM
STANDARDS. An alarm systems company may not install any alarm
system on or after January 1, 2007, that includes a detection device
control panel unless the control panel meets or exceeds the
standards of the American National Standards Institute for false
alarm reduction.
Sec. 1702.288. NOTICE OF CERTAIN INFORMATION TO RECIPIENT
OF ALARM SYSTEM SERVICES. (a) The board shall adopt rules in
accordance with this section that require a license holder acting
as an alarm systems company under this chapter to inform each of the
license holder's clients that the client is entitled to receive a
written contract for alarm system services that contains the
client's fee arrangement and other relevant information about
services to be rendered.
(b) The rules shall require that a written contract for
alarm system services shall be furnished to a client in accordance
with Subsection (a) not later than the seventh day after the date
the client requests the written contract.
(c) The rules shall require that the written contract for
services shall be dated and signed by the owner or manager of an
alarm systems company or a person expressly authorized by the owner
or manager to sign written contracts on behalf of the company.
(d) The rules shall require that, not later than the seventh
day after the date of entering into a contract for services
regulated by the board with another alarm systems company or alarm
systems monitor, an alarm systems company shall:
(1) notify the recipient of those services of the
name, address, and telephone number and individual to contact at
the company that purchased the contract;
(2) notify the recipient of services at the time the
contract is negotiated that another licensed company may provide
any of the services requested by subcontracting or outsourcing
those services; and
(3) if any of the services are subcontracted or
outsourced to a licensed third party, notify the recipient of
services, by mail, of the name, address, phone number, and license
number of the company providing those services.
(e) The rules shall require that notice provided to a
recipient of services under Subsection (d) shall:
(1) be mailed to the recipient in a written form that
emphasizes the required information; and
(2) include stickers or other materials to be affixed
to an alarm system indicating the alarm systems company's or alarm
systems monitor's new telephone number.
SECTION 8. Subchapter N, Chapter 1702, Occupations Code, is
amended by adding Section 1702.331 to read as follows:
Sec. 1702.331. PERSONAL EMERGENCY RESPONSE SYSTEMS.
(a) In this section, "personal emergency response system" means an
alarm system that is:
(1) installed in the residence of a person;
(2) monitored by an alarm systems company;
(3) designed only to permit the person to signal the
occurrence of a medical or personal emergency on the part of the
person so that the company may dispatch appropriate aid; and
(4) not part of a combination of alarm systems that
includes a burglar alarm or fire alarm.
(b) This chapter does not apply to:
(1) an alarm systems company that sells, installs,
services, monitors, or responds to only personal emergency response
systems;
(2) an alarm systems installer who installs,
maintains, or repairs only personal emergency response systems;
(3) a manager or branch office manager of an alarm
systems company described by Subdivision (1);
(4) a security salesperson who is employed by an alarm
systems company described by Subdivision (1) to sell services
offered by the company; and
(5) an owner, officer, partner, or shareholder of an
alarm systems company described by Subdivision (1).
SECTION 9. Subtitle B, Title 9, Health and Safety Code, is
amended by adding Chapter 781 to read as follows:
CHAPTER 781. PERSONAL EMERGENCY RESPONSE SYSTEMS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 781.001. DEFINITIONS. In this chapter:
(1) "Alarm system" means electronic equipment and
devices designed to act as a personal emergency response system.
(2) "Branch office" means an office that:
(A) is identified to the public as a place from
which business is conducted, solicited, or advertised; and
(B) is at a place other than the principal place
of business as shown in department records.
(3) "Commissioner" means the executive commissioner
of the Health and Human Services Commission.
(4) "Department" means the Department of State Health
Services.
(5) "Manager" means an officer or supervisor of a
corporation or a general partner of a partnership who manages a
personal emergency response system provider.
(6) "Personal emergency response system" means an
alarm system that is:
(A) installed in the residence of a person;
(B) monitored by an alarm systems company;
(C) designed only to permit the person to signal
the occurrence of a medical or personal emergency on the part of the
person so that the company may dispatch appropriate aid; and
(D) not part of a combination of alarm systems
that includes a burglar alarm or fire alarm.
[Sections 781.002-781.050 reserved for expansion]
SUBCHAPTER B. POWERS AND DUTIES OF DEPARTMENT
Sec. 781.051. GENERAL POWERS AND DUTIES. (a) The
department shall perform the functions and duties provided by this
chapter.
(b) The commissioner shall adopt rules necessary to
administer this chapter.
(c) The commissioner shall establish fees necessary to
administer this chapter, including fees for processing and issuing
or renewing a license or registration under this chapter.
(d) The commissioner shall prescribe forms required by this
chapter.
[Sections 781.052-781.100 reserved for expansion]
SUBCHAPTER C. LICENSING
Sec. 781.101. PERSONAL EMERGENCY RESPONSE SYSTEM PROVIDER
LICENSE REQUIRED. Unless the person holds a license issued under
this chapter, a person may not act as or perform the services of a
personal emergency response system provider.
Sec. 781.102. PERSONAL EMERGENCY RESPONSE SYSTEM PROVIDER.
A person acts as a personal emergency response system provider for
the purposes of this chapter if the person sells, installs,
services, monitors, or responds to a personal emergency response
system.
Sec. 781.103. APPLICATION FOR LICENSE. An application for
a license under this chapter must be in the form prescribed by the
commissioner and include:
(1) the full name and business address of the
applicant;
(2) the name under which the applicant intends to do
business;
(3) a statement as to the general nature of the
business in which the applicant intends to engage;
(4) if the applicant is an entity other than an
individual, the full name and residence address of each partner,
officer, and director of the applicant, and of the applicant's
manager;
(5) a verified statement of the applicant's experience
qualifications;
(6) a report from the Department of Public Safety
stating the applicant's record of any convictions for a Class B
misdemeanor or equivalent offense or a greater offense;
(7) the social security number of the individual
making the application; and
(8) other information, evidence, statements, or
documents required by the department.
Sec. 781.104. ISSUANCE OF BRANCH OFFICE LICENSE. (a) A
license holder shall notify the department in writing of the
establishment of a branch office and file in writing with the
department the address of the branch office.
(b) On application by a license holder, the department shall
issue a branch office license.
Sec. 781.105. FORM OF LICENSE. The commissioner shall
prescribe the form of a license, including a branch office license.
The license must include:
(1) the name of the license holder;
(2) the name under which the license holder is to
operate; and
(3) the license number and the date the license was
issued.
Sec. 781.106. GENERAL QUALIFICATIONS FOR LICENSE. (a) An
applicant for a license or the applicant's manager must be at least
18 years of age and must not:
(1) have been convicted in any jurisdiction of a Class
A misdemeanor or equivalent offense or a greater offense, unless a
full pardon has been granted for reasons relating to a wrongful
conviction;
(2) have been convicted in any jurisdiction of a Class
B misdemeanor or equivalent offense for which the fifth anniversary
of the date of conviction has not occurred before the date of
application, unless a full pardon has been granted for reasons
relating to a wrongful conviction;
(3) have been found by a court to be incompetent by
reason of a mental defect or disease and not have been restored to
competency;
(4) be suffering from habitual drunkenness or from
narcotics addiction or dependence; or
(5) have been discharged from the United States armed
forces under other than honorable conditions.
(b) The department may deny an application for a license if
the applicant has been convicted in any jurisdiction of a Class B
misdemeanor or equivalent offense if the fifth anniversary of the
date of conviction has occurred before the date of application,
unless a full pardon has been granted for reasons relating to a
wrongful conviction.
Sec. 781.107. MANAGER REQUIRED. (a) A license holder's
business shall be operated under the direction and control of one
manager. A license holder may not apply to designate more than one
individual to serve as manager of the license holder's business.
(b) An individual may not act as a manager until the
individual has made a satisfactory showing to the department that
the individual:
(1) satisfies the requirements of Section 781.106; and
(2) has not engaged in conduct regarding a violation
or conviction that is grounds for disciplinary action under Section
781.351.
Sec. 781.108. INSURANCE. (a) A license holder shall
maintain on file with the department at all times the certificate of
insurance required by this chapter.
(b) The department shall immediately suspend the license of
a license holder who violates Subsection (a).
(c) The department may rescind the license suspension if the
license holder provides proof to the department that the insurance
coverage is still in effect. The license holder must provide the
proof in a form satisfactory to the department not later than the
10th day after the date the license is suspended.
(d) After suspension of the license, the department may not
reinstate the license until an application, in the form prescribed
by the commissioner, is filed accompanied by a proper insurance
certificate. The department may deny the application
notwithstanding the applicant's compliance with this section:
(1) for a reason that would justify suspending,
revoking, or denying a license; or
(2) if, during the suspension, the applicant performs
a practice for which a license is required.
Sec. 781.109. INSURANCE REQUIREMENT. (a) The department
may not issue a license unless the applicant files with the
department:
(1) evidence of a general liability insurance policy
on a certificate of insurance form prescribed by the Texas
Department of Insurance and countersigned by an insurance agent
licensed in this state; or
(2) a certificate of insurance for surplus lines
coverage obtained under Chapter 981, Insurance Code, through a
licensed Texas surplus lines agent resident in this state.
(b) The general liability insurance policy must be
conditioned to pay on behalf of the license holder damages that the
license holder becomes legally obligated to pay because of bodily
injury, property damage, or personal injury, caused by an event
involving the principal, or an officer, agent, or employee of the
principal, in the conduct of any business licensed under this
chapter.
(c) The insurance policy must contain minimum limits of:
(1) $100,000 for each occurrence for bodily injury and
property damage;
(2) $50,000 for each occurrence for personal injury;
and
(3) a total aggregate amount of $200,000 for all
occurrences.
(d) An insurance certificate executed and filed with the
department under this chapter remains in effect until the insurer
terminates future liability by providing to the department at least
10 days' notice of the intent to terminate liability.
Sec. 781.110. LICENSE HOLDER EXEMPTIONS FROM CERTAIN LOCAL
REGULATIONS. (a) A license holder or an employee of a license
holder is not required to obtain an authorization, permit,
franchise, or license from, pay another fee or franchise tax to, or
post a bond in a municipality, county, or other political
subdivision of this state to engage in business or perform a service
authorized under this chapter.
(b) A municipality, county, or other political subdivision
of this state may not require a payment for the use of municipal,
county, or other public facilities in connection with a business or
service provided by a license holder, except that a municipality
may impose and collect:
(1) a reasonable charge for the use of a central alarm
installation located in a police office that is owned, operated, or
monitored by the municipality; and
(2) reasonable inspection and reinspection fees in
connection with a device that causes at least five false alarms in a
12-month period.
(c) A municipality may require, until the device is repaired
to the satisfaction of the appropriate municipal official,
discontinuation of service of an alarm signal device that, because
of mechanical malfunction or faulty equipment, causes at least five
false alarms in a 12-month period.
(d) For the purposes of Subsection (c), a false alarm caused
by human error or an act of God is not considered a mechanical
malfunction or faulty equipment.
[Sections 781.111-781.150 reserved for expansion]
SUBCHAPTER D. REGISTRATION REQUIREMENTS
Sec. 781.151. REGISTRATION REQUIRED. An individual must
register with the department if the individual:
(1) is employed as an alarm systems company, alarm
systems installer, manager or branch office manager, or security
salesperson who enters a client's residence at any time while
performing the salesperson's responsibilities; or
(2) is an owner, officer, partner, or shareholder of a
license holder and is responsible for managing the business of the
license holder.
Sec. 781.152. ALARM SYSTEMS INSTALLER. An individual acts
as an alarm systems installer for purposes of this chapter if the
individual installs, maintains, or repairs a personal emergency
response system.
Sec. 781.153. ALARM SYSTEMS MONITOR. (a) An individual
acts as an alarm systems monitor for purposes of this chapter if the
individual monitors a personal emergency response system.
(b) This section does not apply to an individual employed
exclusively and regularly by an employer, other than a license
holder, in connection with the affairs of that employer and with
whom the individual has an employee-employer relationship.
Sec. 781.154. SECURITY SALESPERSON. An individual acts as
a security salesperson for purposes of this chapter if the
individual:
(1) is employed by a security services contractor to
sell services offered by the contractor; and
(2) enters a client's residence at any time during the
person's employment.
Sec. 781.155. QUALIFICATIONS FOR REGISTRATION. (a) An
individual must be at least 18 years of age to be registered.
(b) The department by rule may adopt additional
qualifications for an individual to be registered under this
subchapter.
Sec. 781.156. APPLICATION FOR REGISTRATION. (a) An
application for registration must be verified and include:
(1) the applicant's full name, residence address,
residence telephone number, date and place of birth, and social
security number;
(2) a statement that:
(A) lists each name used by the applicant, other
than the name by which the applicant is known at the time of
application, and an explanation stating each place where each name
was used, the date of each use, and a full explanation of the
reasons the name was used; or
(B) states that the applicant has never used a
name other than the name by which the applicant is known at the time
of application;
(3) the name and address of the applicant's employer
and, if applicable, the applicant's consulting firm;
(4) the date the employment commenced;
(5) a letter from the license holder requesting that
the applicant be registered;
(6) the title of the position occupied by the
applicant and a description of the applicant's duties; and
(7) any other information, evidence, statement, or
document required by the department.
(b) The employer of the applicant shall make a reasonable
attempt to verify the information required under Subsection (a)(1).
[Sections 781.157-781.200 reserved for expansion]
SUBCHAPTER E. GENERAL PROVISIONS APPLICABLE TO REGULATED PERSONS
Sec. 781.201. CRIMINAL HISTORY CHECK. (a) The department
shall conduct a criminal history check, including a check of any
criminal history record information maintained by the Department of
Public Safety, that relates to each applicant for a license or
registration. An applicant is not eligible for a license or
registration if the check reveals that the applicant has committed
an act that constitutes grounds for the denial of the license or
registration.
(b) A license or registration issued by the department is
conditional on the department's receipt of criminal history record
information.
Sec. 781.202. ALARM SYSTEMS RECORDS CONFIDENTIAL.
Information contained in alarm systems records maintained by a
governmental body that concerns the location of an alarm system,
the name of the occupant of an alarm system location, or the type of
alarm system used is confidential and may be disclosed only to the
department or as otherwise required by state law or court order.
Sec. 781.203. FALSE REPRESENTATION. A person may not
represent falsely that the person:
(1) is employed by a license holder; or
(2) is licensed or registered under this chapter.
Sec. 781.204. PROHIBITION AGAINST CERTAIN POLITICAL
SUBDIVISIONS ACTING AS ALARM SYSTEMS COMPANY. (a) Except as
provided by Subsection (b), a political subdivision may not offer
alarm system sales, service, installation, or monitoring unless it
was providing monitoring services to residences within the
boundaries of the political subdivision on September 1, 1999. Any
fee charged by the political subdivision may not exceed the cost of
the monitoring.
(b) A political subdivision may:
(1) offer service, installation, or monitoring for
property owned by the political subdivision or another political
subdivision;
(2) allow for the response of an alarm or detection
device by a law enforcement agency or by a law enforcement officer
acting in an official capacity;
(3) offer monitoring in connection with a criminal
investigation; or
(4) offer monitoring to a financial institution, as
defined by Section 201.101, Finance Code, that requests, in
writing, that the political subdivision provide monitoring service
to the financial institution.
(c) The limitations of Subsection (a) do not apply to a
political subdivision in a county with a population of less than
80,000 or to a political subdivision where monitoring is not
otherwise provided or available.
[Sections 781.205-781.250 reserved for expansion]
SUBCHAPTER F. EXPIRATION; RENEWAL
Sec. 781.251. EXPIRATION. (a) A license is valid for two
years from the date of issuance. A license expires at midnight on
the last day of the 23rd month after the month in which it is issued.
(b) Registration as a manager, branch office manager, alarm
systems installer, or security salesperson expires on the second
anniversary of the date of registration.
(c) Registration as an owner, officer, partner, or
shareholder of a license holder expires on the second anniversary
of the date of registration.
Sec. 781.252. LICENSE RENEWAL. (a) A person who is
otherwise eligible to renew a license may renew an unexpired
license by paying the required renewal fee to the department before
the expiration date of the license. A person whose license has
expired may not engage in activities that require a license until
the license has been renewed.
(b) A person whose license has been expired for 90 days or
less may renew the license by paying to the department a renewal fee
that is equal to 1-1/2 times the normally required renewal fee.
(c) A person whose license has been expired for longer than
90 days but less than one year may renew the license by paying to the
department a renewal fee that is equal to two times the normally
required renewal fee.
(d) A person whose license has been expired for one year or
more may not renew the license. The person may obtain a new license
by complying with the requirements and procedures for obtaining an
original license.
(e) Not later than the 30th day before the date a person's
license is scheduled to expire, the department shall send written
notice of the impending expiration to the person at the person's
last known address according to the department's records.
Sec. 781.253. RENEWAL OF EXPIRED LICENSE BY OUT-OF-STATE
PRACTITIONER. A person who was licensed in this state, moved to
another state, and is currently licensed and has been in practice in
the other state for the two years preceding the date the person
applies for renewal may obtain a new license. The person must pay
to the department a fee that is equal to two times the normally
required renewal fee for the license.
Sec. 781.254. STAGGERED RENEWAL; PRORATION OF LICENSE FEE.
The department by rule may adopt a system under which licenses
expire on various dates during the year. For the year in which the
expiration date of a license is changed, the department shall
prorate license fees on a monthly basis so that each license holder
pays only that portion of the license fee that is allocable to the
number of months during which the license is valid. On renewal of
the license on the new expiration date, the total license renewal
fee is payable.
Sec. 781.255. EFFECT OF LICENSE RENEWAL ON DISCIPLINARY
ACTION. Renewal of a license does not prohibit the bringing of a
disciplinary proceeding for an act committed before the effective
date of the renewal.
Sec. 781.256. EFFECT OF SUSPENSION ON LICENSE RENEWAL
REQUIREMENTS. A suspended license expires on the license's
expiration date and may be renewed as provided by this chapter. The
renewal does not entitle the license holder, while the license
remains suspended and until the license is reinstated, to engage in
the licensed activity or in conduct in violation of the order or
judgment by which the license was suspended.
Sec. 781.257. REGISTRATION RENEWAL. (a) An individual who
is otherwise eligible to renew a registration may renew an
unexpired registration by paying the required renewal fee to the
department before the expiration date of the registration. An
individual whose registration has expired may not engage in
activities that require a registration until the registration has
been renewed.
(b) An individual whose registration has been expired for 90
days or less may renew the registration by paying to the department
a renewal fee that is equal to 1-1/2 times the normally required
renewal fee.
(c) An individual whose registration has been expired for
more than 90 days but less than one year may renew the registration
by paying to the department a renewal fee that is equal to two times
the normally required renewal fee.
(d) An individual whose registration has been expired for
one year or more may not renew the registration. The individual may
obtain a new registration by complying with the requirements and
procedures for obtaining an original registration.
(e) An individual who was registered in this state, moved to
another state, and is currently registered and has been in practice
in the other state for the two years preceding the date of
application may obtain a new registration. The individual must pay
to the department a fee that is equal to two times the normally
required renewal fee for the registration.
(f) Not later than the 30th day before the expiration date
of an individual's registration, the department shall send written
notice of the impending expiration to the individual at the
individual's last known address according to department records.
Sec. 781.258. CONTINUING EDUCATION. (a) The department
may recognize, prepare, or administer continuing education
programs for license holders and registrants. The department shall
set the minimum number of hours that must be completed and the types
of programs that may be offered.
(b) A license holder or registrant must participate in the
programs to the extent required by the department to keep the
person's license or registration. A license holder or registrant
shall submit evidence of compliance with the department's
continuing education requirements in a manner prescribed by the
department.
[Sections 781.259-781.300 reserved for expansion]
SUBCHAPTER G. EXCEPTIONS
Sec. 781.301. GOVERNMENT EMPLOYEES. This chapter does not
apply to an officer or employee of the United States, this state, or
a political subdivision of this state while the officer or employee
is performing official duties.
Sec. 781.302. LAW ENFORCEMENT PERSONNEL. This chapter does
not apply to:
(1) a person who has full-time employment as a peace
officer and who receives compensation for private employment on an
individual or an independent contractor basis as a patrolman,
guard, extra job coordinator, or watchman if the officer:
(A) is employed in an employee-employer
relationship or employed on an individual contractual basis;
(B) is not in the employ of another peace
officer;
(C) is not a reserve peace officer; and
(D) works as a peace officer on the average of at
least 32 hours a week, is compensated by the state or a political
subdivision of the state at least at the minimum wage, and is
entitled to all employee benefits offered to a peace officer by the
state or political subdivision;
(2) a reserve peace officer while the reserve officer
is performing guard, patrolman, or watchman duties for a county and
is being compensated solely by that county;
(3) a peace officer acting in an official capacity in
responding to a burglar alarm or detection device; or
(4) a person engaged in the business of electronic
monitoring of an individual as a condition of that individual's
community supervision, parole, mandatory supervision, or release
on bail, if the person does not perform any other service that
requires a license under this chapter.
Sec. 781.303. MEDICAL ALERT SERVICES. This chapter does
not apply to an entity that is a hospital or a wholly owned
subsidiary or an affiliate of a hospital licensed under Chapter
241.
[Sections 781.304-781.350 reserved for expansion]
SUBCHAPTER H. DISCIPLINARY PROCEDURES
Sec. 781.351. GROUNDS FOR DISCIPLINARY ACTION. (a) For a
violation of this chapter or a rule adopted under this chapter, the
department may:
(1) revoke or suspend the person's license or
registration;
(2) place on probation the person if the person's
license or registration has been suspended; or
(3) reprimand the license holder or registrant.
(b) The department shall take disciplinary action described
by Subsection (a) on proof:
(1) that the applicant, license holder, or registrant
has:
(A) violated this chapter or a department rule
adopted under this chapter;
(B) been convicted of a Class B misdemeanor or
equivalent offense if the fifth anniversary of the date of the
conviction has occurred;
(C) engaged in fraud, deceit, or
misrepresentation; or
(D) made a material misstatement in an
application for or renewal of a license or registration; or
(2) that the license holder of a registrant has
submitted to the department sufficient evidence that the
registrant:
(A) engaged in fraud or deceit while employed by
the license holder; or
(B) committed theft while performing work as a
registrant.
Sec. 781.352. HEARING. (a) If the department proposes to
revoke or suspend a person's license or registration, the person is
entitled to a hearing before a hearings officer appointed by the
State Office of Administrative Hearings.
(b) The commissioner shall prescribe procedures for
appealing to the department a decision to revoke or suspend a
license or registration.
Sec. 781.353. ADMINISTRATIVE PROCEDURE. A proceeding under
this chapter to suspend or revoke a license or registration is
governed by Chapter 2001, Government Code.
Sec. 781.354. PROBATION. The department may require a
person whose license or registration suspension is probated to:
(1) report regularly to the department on matters that
are the basis of the probation;
(2) limit practice to areas prescribed by the
department; or
(3) continue the person's professional education until
the license or registration holder attains a degree of skill
satisfactory to the department in those areas that are the basis of
the probation.
Sec. 781.355. EFFECT OF SUSPENSION; MONITORING OF EXISTING
ALARM CONTRACTS. Subject to expiration of the license under
Section 781.251, a license holder may continue to monitor under an
existing alarm contract or contract to monitor under an existing
alarm contract for 30 days after the date of suspension of the
person's license.
[Sections 781.356-781.400 reserved for expansion]
SUBCHAPTER I. ENFORCEMENT
Sec. 781.401. INJUNCTION. The department shall prosecute
or file suit to enjoin a violation of this chapter or a rule adopted
under this chapter.
Sec. 781.402. CIVIL PENALTY. (a) A person who violates
this chapter or a rule adopted under this chapter is liable for a
civil penalty not to exceed $5,000 a day.
(b) At the request of the department, the attorney general
may bring an action to recover a civil penalty authorized under this
section.
(c) The attorney general may recover reasonable expenses
incurred in obtaining a civil penalty under this section, including
court costs, reasonable attorney's fees, investigative costs,
witness fees, and deposition expenses.
Sec. 781.403. OFFENSE. (a) A person commits an offense if
the person:
(1) knowingly falsifies fingerprints or photographs
submitted to the department;
(2) contracts with or employs a person who is required
to hold a license or registration under this chapter knowing that
the person does not hold the required license or registration or who
otherwise, at the time of contract or employment, is in violation of
this chapter; or
(3) violates a provision of this chapter.
(b) An offense under Subsection (a)(1) is a felony of the
third degree.
(c) An offense under Subsection (a)(2) is a Class A
misdemeanor.
(d) An offense under Subsection (a)(3) is a Class A
misdemeanor, except that the offense is a felony of the third degree
if the person has previously been convicted under this chapter for
failing to hold a license or registration that the person is
required to hold under this chapter.
Sec. 781.404. VENUE. An offense under this chapter may be
prosecuted in Travis County or in the county in which the offense
occurred.
[Sections 781.405-781.450 reserved for expansion]
SUBCHAPTER J. ADMINISTRATIVE PENALTY
Sec. 781.451. IMPOSITION OF ADMINISTRATIVE PENALTY. The
department may impose an administrative penalty on a person
licensed under this chapter who violates this chapter or a rule or
order adopted under this chapter.
Sec. 781.452. AMOUNT OF ADMINISTRATIVE PENALTY. (a) The
amount of the administrative penalty may not be less than $50 or
more than $5,000 for each violation. Each day a violation continues
or occurs is a separate violation for the purpose of imposing a
penalty.
(b) The amount shall be based on:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) the economic harm caused by the violation;
(3) the history of previous violations;
(4) the amount necessary to deter a future violation;
(5) efforts to correct the violation; and
(6) any other matter that justice may require.
Sec. 781.453. REPORT AND NOTICE OF VIOLATION AND PENALTY.
(a) If the commissioner or the commissioner's designee determines
that a violation occurred, the commissioner or the designee may
issue to the department a report stating:
(1) the facts on which the determination is based; and
(2) the commissioner's or the designee's
recommendation on the imposition of an administrative penalty,
including a recommendation on the amount of the penalty.
(b) Within 14 days after the date the report is issued, the
commissioner or the commissioner's designee shall give written
notice of the report to the person. The notice must:
(1) include a brief summary of the alleged violation;
(2) state the amount of the recommended administrative
penalty; and
(3) inform the person of the person's right to a
hearing on the occurrence of the violation, the amount of the
penalty, or both.
Sec. 781.454. PENALTY TO BE PAID OR HEARING REQUESTED.
(a) Within 10 days after the date the person receives the notice,
the person in writing may:
(1) accept the determination and recommended
administrative penalty of the commissioner or the commissioner's
designee; or
(2) make a request for a hearing on the occurrence of
the violation, the amount of the penalty, or both.
(b) If the person accepts the determination and recommended
penalty of the commissioner or the commissioner's designee, the
department by order shall approve the determination and impose the
recommended penalty.
Sec. 781.455. HEARING. (a) If the person requests a
hearing or fails to respond in a timely manner to the notice, the
commissioner or the commissioner's designee shall set a hearing and
give written notice of the hearing to the person.
(b) An administrative law judge of the State Office of
Administrative Hearings shall hold the hearing.
(c) The administrative law judge shall make findings of fact
and conclusions of law and promptly issue to the department a
proposal for a decision about the occurrence of the violation and
the amount of a proposed administrative penalty.
Sec. 781.456. DECISION BY DEPARTMENT. (a) Based on the
findings of fact, conclusions of law, and proposal for decision,
the department by order may determine that:
(1) a violation occurred and impose an administrative
penalty; or
(2) a violation did not occur.
(b) The notice of the department's order given to the person
must include a statement of the right of the person to judicial
review of the order.
Sec. 781.457. OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
(a) Within 30 days after the date the department's order becomes
final, the person shall:
(1) pay the administrative penalty; or
(2) file a petition for judicial review contesting the
occurrence of the violation, the amount of the penalty, or both.
(b) Within the 30-day period prescribed by Subsection (a), a
person who files a petition for judicial review may:
(1) stay enforcement of the penalty by:
(A) paying the penalty to the court for placement
in an escrow account; or
(B) giving the court a supersedeas bond approved
by the court that:
(i) is for the amount of the penalty; and
(ii) is effective until all judicial review
of the department's order is final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
penalty and is financially unable to give the supersedeas bond; and
(B) giving a copy of the affidavit to the
commissioner or the commissioner's designee by certified mail.
(c) If the commissioner or the commissioner's designee
receives a copy of an affidavit under Subsection (b)(2), the
commissioner or the designee may file with the court, within five
days after the date the copy is received, a contest to the
affidavit.
(d) The court shall hold a hearing on the facts alleged in
the affidavit as soon as practicable and shall stay the enforcement
of the penalty on finding that the alleged facts are true. The
person who files an affidavit has the burden of proving that the
person is financially unable to pay the penalty and to give a
supersedeas bond.
Sec. 781.458. COLLECTION OF PENALTY. (a) If the person
does not pay the administrative penalty and the enforcement of the
penalty is not stayed, the penalty may be collected.
(b) The attorney general may sue to collect the penalty.
Sec. 781.459. DETERMINATION BY COURT. (a) If the court
sustains the determination that a violation occurred, the court may
uphold or reduce the amount of the administrative penalty and order
the person to pay the full or reduced amount of the penalty.
(b) If the court does not sustain the finding that a
violation occurred, the court shall order that a penalty is not
owed.
Sec. 781.460. REMITTANCE OF PENALTY AND INTEREST. (a) If
the person paid the administrative penalty and if the amount of the
penalty is reduced or the penalty is not upheld by the court, the
court shall order, when the court's judgment becomes final, that
the appropriate amount plus accrued interest be remitted to the
person.
(b) The interest accrues at the rate charged on loans to
depository institutions by the New York Federal Reserve Bank.
(c) The interest shall be paid for the period beginning on
the date the penalty is paid and ending on the date the penalty is
remitted.
(d) If the person gave a supersedeas bond and the penalty is
not upheld by the court, the court shall order, when the court's
judgment becomes final, the release of the bond.
(e) If the person gave a supersedeas bond and the amount of
the penalty is reduced, the court shall order the release of the
bond after the person pays the reduced amount.
Sec. 781.461. ADMINISTRATIVE PROCEDURE. A proceeding under
this subchapter is a contested case under Chapter 2001, Government
Code.
SECTION 10. Section 1702.006, Occupations Code, is
repealed.
SECTION 11. Section 1702.286, Occupations Code, as added by
this Act, applies only to an alarm system installed or activated on
or after January 1, 2006.
SECTION 12. (a) A license or registration issued under
Chapter 1702, Occupations Code, immediately before the effective
date of this Act to a person listed in Subsection (b) of this
section shall remain valid under Chapter 781, Health and Safety
Code, as added by this Act.
(b) Subsection (a) of this section applies to:
(1) an alarm systems company that sells, installs,
services, or responds to only personal emergency response systems;
(2) an alarm systems installer who installs,
maintains, or repairs only personal emergency response systems;
(3) a manager or branch office manager of an alarm
systems company described by Subdivision (1) of this subsection;
(4) a security salesperson who is employed by an alarm
systems company described by Subdivision (1) of this subsection to
sell services offered by the company; or
(5) an owner, officer, partner, or shareholder of an
alarm systems company described by Subdivision (1) of this
subsection.
(c) The change in law made by this Act does not affect a
disciplinary action regarding a personal emergency response system
pending under Chapter 1702, Occupations Code, on the effective date
of this Act. The Department of State Health Services shall continue
the proceeding under that chapter after the effective date of this
Act, and the former law is continued in effect for that purpose.
(d) The change in law made by this Act does not affect an
action involving the prosecution of an offense or any other
enforcement action under Subchapter P or Q, Chapter 1702,
Occupations Code, regarding a personal emergency response system
pending on the effective date of this Act. The prosecution or
action shall continue under that chapter after the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 13. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 568 passed the Senate on
April 7, 2005, by the following vote: Yeas 26, Nays 0; and that
the Senate concurred in House amendments on May 29, 2005, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 568 passed the House, with
amendments, on May 25, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor