An Act concerning alarm business licensees and amending P.L.1962, c.162 and P.L.1997, c.305.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 2 of P.L.1962, c.162 (C.45:5A-2) is amended to read as follows:

2. For the purpose of this act, unless otherwise indicated by the context:

(a) "Act" means this act, P.L.1962, c.162 (C.45:5A-1 et seq.) and the rules and regulations adopted under it;

(b) "Board" means the Board of Examiners of Electrical Contractors created by section 3 of this act;

(d) "Electrical contractor" means a person who engages in the business of contracting to install, erect, repair or alter electrical equipment for the generation, transmission or utilization of electrical energy;

(e) "Person" means a person, firm, corporation or other legal entity;

(f) "Alarm business" means the design, installation, sales, servicing or maintenance of burglar alarm, fire alarm or electronic security systems, or home automation and integration of these systems, or the monitoring or responding to alarm signals when provided in conjunction therewith. "Installation," as used in this definition, includes the survey of a premises, the design and preparation of the specifications for the equipment or system to be installed pursuant to a survey, the installation of the equipment or system, or the demonstration of the equipment or system after the installation is completed, but does not include any survey, design or preparation of specifications for equipment or for a system that is prepared by an engineer licensed pursuant to the provisions of P.L.1938, c.342 (C.45:8-27 et seq.), or an architect licensed pursuant to the provisions of chapter 3 of Title 45 of the Revised Statutes, if the survey, design, or preparation of specifications is part of a design for construction of a new building or premises or a renovation of an existing building or premises, which renovation includes components other than the installation of a burglar alarm, fire alarm or electronic security system, and further does not include the design or preparation of specifications for the equipment or system to be installed that are within the practice of professional engineering as defined in subsection (b) of section 2 of P.L.1938, c.342 (C.45:8-28);

(g) "Burglar alarm" means a security system comprised of an interconnected series of alarm devices or components, including systems interconnected with radio frequency signals, or Internet protocol and any successor protocols, which emits an audible, visual or electronic signal indicating an alarm condition and providing a warning of intrusion, which is designed to discourage crime;

(h) "Business firm" means a partnership, corporation or other business entity engaged in the alarm business or locksmithing services;

(i) "Committee" means the Fire Alarm, Burglar Alarm, and Locksmith Advisory Committee created by section 3 of P.L.1997, c.305 (C.45:5A-23);

(j) "Electronic security system" means a security system comprised of an interconnected series of devices or components, including systems with audio and video signals or other electronic systems, which emits or transmits an audible, visual or electronic signal warning of intrusion and provides notification of authorized entry or exit, which is designed to discourage crime, and which system may include access control systems, closed circuit television systems, intercom systems, automation systems capable of integrating security devices, and other electronic monitoring devices;

(k) "Fire alarm" means a [security] system comprised of an interconnected series of alarm devices or components, including systems interconnected with radio frequency signals, which emits an audible, visual or electronic signal indicating an alarm condition and which provides a warning of the presence of smoke or fire or a notification of emergency evacuation. "Fire alarm" does not mean a system whose primary purpose is telecommunications with energy control, the monitoring of the interior environment being an incidental feature thereto;

(l) "Licensed locksmith" means a person who is licensed pursuant to the provisions of section 7 of P.L.1997, c.305 (C.45:5A-27);

(m) "Licensee" means a person licensed to engage in the alarm business or provide locksmithing services pursuant to the provisions of section 7 of P.L.1997, c.305 (C.45:5A-27);

(n) "Locksmithing services" means the modification, recombination, repair or installation of mechanical locking devices and electronic security systems for any type of compensation and includes the following: repairing, rebuilding, recoding, servicing, adjusting, installing, manipulating or bypassing of a mechanical or electronic locking device, for controlled access or egress to premises, vehicles, safes, vaults, safe doors, lock boxes, automatic teller machines or other devices for safeguarding areas where access is meant to be limited; operating a mechanical or electronic locking device, safe or vault by means other than those intended by the manufacturer of such locking devices, safes or vaults; or consulting and providing technical advice regarding selection of hardware and locking systems of mechanical or electronic locking devices and electronic security systems; except that "locksmithing services" shall not include the installation of a prefabricated lock set and door knob into a door of a residence;

(o) "Qualified journeyman electrician" means a person registered pursuant to P.L.1962, c.162 (C.45:5A-1 et seq.) or P.L.2001, c.21 (C.45:5A-11.1 et al.), as a qualified journeyman electrician by the board ;

(p) "Access control system" means a system that provides access to authorized persons and may record and report which persons entered or exited a facility or areas within a facility, which doors or areas were accessed while persons are in a facility, and the time that such activity occurred, and which system may include the use of keys, access cards, locks, card readers, biometric identification devices, recorders, printers and control devices and may be an independent system or may be integrated with other electronic security systems;

(q) "Closed circuit television system" means a video security system that includes, but is not limited to, video cameras, Internet protocol cameras, monitors, switches, camera enclosures, controls, and other related devices, which video security system may be an independent system or may be integrated with other electronic security systems;

(r) "Internet protocol and any successor protocols" means protocols that are capable of integrating any electronic security devices;

(s) "Intercom system" means an audio security communication system containing control circuitry that may include a feature designed to selectively release electronically secured doors.

(cf: P.L.2001, c.21, s.2)

2. Section 12 of P.L.1997, c.305 (C.45:5A-32) is amended to read as follows:

12. a. No licensee qualified under the provisions of this act shall engage in the alarm business or in the practice of locksmithing services, unless the licensee:

(1) Maintains at least one business office within the State or files with the board a statement, duly executed and sworn to before a person authorized by the laws of this State to administer oaths, containing a power of attorney constituting the board the true and lawful attorney of the licensee upon whom all original process in an action or legal proceeding against the licensee may be served and in which the licensee agrees that the original process that may be served upon the board shall be of the same force and validity as if served upon the licensee and that the authority thereof shall continue in force so long as the licensee engages in the alarm business or in the practice of locksmithing services, as the case may be, in this State;

(2) Clearly marks the outside of each installation, sales, and service vehicle to be used in conjunction with the alarm business with the alarm business name and license number, or the outside of each installation, sales and service vehicle to be used in conjunction with locksmithing services with the locksmithing service's name and license number;

(3) Maintains an emergency service number attended to on a 24-hour basis and [responds appropriately] maintains the capacity on a 24-hour basis to respond to emergencies [on a 24-hour basis when engaged in the alarm business] , as appropriate; and

(4) Retains at all times general liability insurance in an amount determined by the board, in consultation with the committee, and insurance coverage or a surety bond in favor of the State of New Jersey in the sum of $10,000, executed by a surety company authorized to transact business in the State of New Jersey and which is approved by the Department of Banking and Insurance, and which is to be conditioned on the faithful performance of the provisions of this act. The board shall by rule or regulation provide who shall be eligible to receive the financial protection afforded by that bond and the bond shall be in full force and effect for the term of the license issued.

b. Except in the case of an employee licensed as a locksmith, no licensed locksmith shall engage in locksmithing services unless that licensee maintains at least one business office within the State.

(cf: P.L.1997, c.305, s.12)

3. This act shall take effect immediately.

STATEMENT

Pursuant to P.L.1997, c.305 (C.45:5A-23 et al.), locksmiths, burglar alarm, fire alarm and electronic security businesses, and their employees, are licensed and regulated by the Board of Examiners of Electrical Contractors. This bill changes the definition of "electronic security system" contained in the law. As provided in the bill, the definition of "electronic security system" is expanded to include access control systems, closed circuit television systems, intercom systems and other electronic monitoring devices. The bill also establishes definitions in this law for "access control system," "closed circuit television system," "Internet protocol and any successor protocols" and "intercom system."

This bill provides that alarm business license holders, in addition to maintaining an emergency service number attended to on a 24-hour basis, shall maintain the capacity on a 24-hour basis to respond to emergencies, as appropriate.