Enhances regulation of the alarm industry.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                     A BILL FOR AN ACT



 1      SECTION 1.  Chapter 436M, Hawaii Revised Statutes, is
 2 amended as follows:
 3      1.  By adding thirteen new sections to be appropriately
 4 designated and to read:
 5      "436M-      Purpose.  The purpose of this chapter is to
 6 authorize the alarm industry in the State of Hawaii to regulate
 7 itself through a board consisting of members from the alarm
 8 industry and the community.
 9      436M-       Alarm industry board.  (a) There shall be an
10 alarm industry board consisting of nine members, eight of whom
11 shall be nominated, and by and with the advice and consent of the
12 senate, appointed by the governor.  Of the eight appointed
13 members:
14      (1)  One shall be a chief of police or designee of any of
15           the four counties;
16      (2)  One shall be a representative from the state fire
17           council as defined by chapter 132-16;
18      (3)  Four shall be from the alarm industry; and
19      (4)  Two from the alarm users or customers.

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 1 The director of commerce and consumer affairs shall be an ex
 2 officio nonvoting ninth member of the board and may designate a
 3 representative to sit in the directors stead.
 4      (b) The term of the members shall be four years with each
 5 term commencing on July 1 and expiring on June 30.
 6      (c) No person shall be appointed consecutively to more than
 7 two terms; provided that membership shall not exceed eight
 8 consecutive years.
 9      436M-      Powers, duties, and functions.  In addition to
10 any other powers and duties authorized by law, the alarm industry
11 board shall:
12      (1)  Adopt rules in accordance with chapter 91 as the board
13           may consider necessary for the conduct of its business
14           and to carry out the purposes of this chapter;
15      (2)  Elect a chair from among its members.  Any vacancy in
16           the board shall be filled in the same manner as for an
17           original appointment;
18      (3)  Meet a minimum of four times a year;
19      (4)  Monitor the scope of practice of the profession;
20      (5)  Create rules for the issuance of permits for alarm
21           users;
22      (6)  Enforce this chapter and rules adopted pursuant
23           thereto;

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 1      (7)  Investigate and conduct hearings regarding any
 2           violation of this chapter, and any rule or order of the
 3           board;
 4      (8)  Summon witnesses and take testimony as to matters
 5           pertaining to its duties;
 6      (9)  Recommend to suspend or revoke any alarm permit for any
 7           cause prescribed by this chapter, or for any violation,
 8           suspension, or revocation of an alarm permit;
 9     (10)  Act by majority vote of the board's membership on all
10           voting matters; and
11     (11)  Perform such other related functions, powers, and
12           duties as may be necessary to fulfill its
13           responsibilities under this chapter.
14      436M-      Staff.  The board may appoint such staff and
15 engage consultants as necessary to assist it in the performance
16 of its duties.  All staff positions shall be subject to chapters
17 76 and 77.
18      436M-      Hearings.  (a)  The board is authorized to hold
19 public hearings and to conduct investigations regarding any
20 violation of this chapter, any rule or order of the commission,
21 or concerning the application of this chapter and shall have the
22 powers provided in this chapter.

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 1      (b)  The board shall determine the purpose for and establish
 2 procedures to hold public hearings.
 3      (c)  The board shall, whenever necessary, summon witnesses
 4 and take testimony as to matters pertaining to its duties.
 5      436M-      License required.  It is unlawful for any person
 6 to engage in, conduct or carry on the business of maintaining,
 7 servicing, repairing, altering, replacing, moving, installing or
 8 cause to be installed, in or on a building, place or premises,
 9 any device known as the alarm system without having first
10 obtained a license to do so in accordance with the provisions of
11 sections 444 and 448E.
12      436M-      Employees.  No alarm business shall employ any
13 person convicted of a felony or two or more criminal
14 misdemeanors.
15      436M-      Posting of name and telephone number.  In a
16 conspicuous place at or near the front entry of the building,
17 place, or premises protected by the alarm system, the alarm user
18 shall post the name and telephone number(s) of an alarm business
19 or another person who can be contacted by the appropriate
20 emergency service to identify the alarm user and to service or
21 disconnect the system in the event that it malfunctions.  The
22 notices shall be posted near the alarm in such a position as to
23 be legible from the ground level adjacent to the building.

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 1      436M-      Use of answering service.  Alarm businesses
 2 using an answering service for their alarm service other than a
 3 central office service under their immediate supervision, shall
 4 be responsible for giving proper instructions to the answering
 5 service personnel for their compliance.
 6      436M-      Ringer-type alarm, sound of alarm.  No alarm
 7 with a sound similar to that of any emergency vehicle or civil
 8 defense siren shall be installed.
 9      436M-      Alarm information required by the appropriate
10 emergency service.  When notifying the appropriate emergency
11 service of an alarm, the alarm business shall state the name of
12 the alarm company and furnish the exact address from which the
13 alarm originated, the name and type of establishment and, if more
14 than one floor or department, the precise location of the alarm
15 shall be given and the type of alarm.
16      436M-      Maintenance and training responsibility.  It
17 shall be the responsibility of the alarm business to install and
18 maintain a trouble-free alarm system, and clearly instruct
19 subscribers in the use and operation of the alarm, and especially
20 those factors which can cause a needless alarm.  Periodic
21 inspections shall be made by the alarm business to reeducate the
22 subscriber and his/her employees to obtain compliance.

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 1      436M-      User not responsible when.  An alarm user shall
 2 not be responsible for an activation when there is visible
 3 evidence that it was the result of hurricane, fire, earthquake,
 4 or other act of nature."
 5      2.  By amending section 436M-1 to read:
 6      "436M-1  Definitions.  Whenever used in this chapter,
 7 unless the context otherwise requires:
 8      "Alarm [business] industry" means any individual,
 9 corporation, or other business entity that engages in selling,
10 leasing, maintaining, servicing, repairing, altering, replacing,
11 moving, [or] installing, or monitoring any alarm system in or on
12 any building, place, or premises, except motor vehicles.
13      "Alarm site" means a single premises or location served by
14 an alarm system or systems.  Each tenant, if served by a separate
15 alarm system in a multi-tenant building or complex shall be
16 considered a separate alarm site.
17      "Alarm system" means any device that is designed for the
18 detection of a fire, or an unauthorized entry into [an] a
19 building, place, or premises, except motor vehicles, or for
20 alerting others to the commission of an unlawful act, or both,
21 and that emits a sound or transmits a signal or message when
22 activated.

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 1      "Alarm user" means any person exercising control of the
 2 property on which the alarm system is installed.
 3      "Audible alarm system" means any alarm system that emits a
 4 sound [or transmits a signal or message when activated].
 5      "Automatic telephone dialer" means any alarm system that,
 6 when activated, dials a programmed telephone number, and when the
 7 telephone is answered, plays a recorded message informing the
 8 listener of an unauthorized entry or unlawful act.
 9      "Board" means the alarm industry board.
10      "Burglary-intrusion alarms" are designed to detect entry
11 into a protected area and are normally activated electronically.
12 Burglary-intrusion alarms are either audible, silent, or both
13 audible and silent.
14      "Business" means any of the following which carry on a
15 business, whether or not operated for a profit:
16      (1)  A corporation;
17      (2)  A partnership;
18      (3)  A sole proprietorship;
19      (4)  An institution;
20      (5)  A trust;
21      (6)  A foundation; or
22      (7)  Any other individual or organization.

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 1      "Business establishment" means any premises owned, leased,
 2 or controlled by a sole proprietorship, partnership, association,
 3 or corporation.
 4      "Conversion" means the transaction or process by which one
 5 of the alarm businesses begins monitoring of an alarm system
 6 previously monitored by another alarm business.
 7      "Customer" means any person who purchases, leases, contracts
 8 for, or otherwise obtains an alarm system or for the servicing or
 9 maintenance of an alarm system from a member of the alarm
10 industry.
11      "Department" means the department of commerce and consumer
12 affairs.
13      "Director" means the director of commerce and consumer
14 affairs.
15      "Emergency service" means any law enforcement, fire, or
16 medical service.
17      "False alarms" means any alarm activation that is
18 communicated to the appropriate emergency service but that is not
19 in response to an actual or threatened act.  False alarms include
20 alarm activations caused by negligence, by improperly installed
21 or maintained equipment, and by efforts to summon the appropriate
22 emergency service for a purpose other than that for which the
23 alarm is designed.  [False alarms shall not include alarm

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 1 activations for which the cause cannot be determined, or is in
 2 reasonable doubt, or is beyond the control of the alarm user or
 3 alarm business.]  False alarms shall not include alarm activation
 4 when there is evidence that it was the result of a power outage,
 5 hurricane, fire, earthquake, or other act of nature.
 6      "Notice" means written notice, served personally or mailed,
 7 postage prepaid, addressed to the person to be notified at
 8 his/her last known address.  Service of such notice shall be
 9 deemed effected upon completion of personal service or upon
10 deposit of such notice in the United States mail.
11      "Person" means an individual, corporation, partnership,
12 association, organization, or similar entity.
13      "Personal security alarms" are designed to signal an actual
14 or potential threat to a person and are activated manually.  They
15 may be referred to, among others, as holdup alarms, panic alarms,
16 duress alarms, or hostage alarms.
17      "Residential unit" means any building designed or used for
18 residential purposes.
19      "Standards, regulations, requirements and duties" means the
20 minimum standards and regulations for the construction and
21 maintenance of all alarm systems installed as prescribed by the
22 alarm industry board.  All devices shall meet or exceed such
23 standards and regulations before permits may be issued pursuant

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 1 to this chapter.  The alarm industry board may require inspection
 2 and approval of all alarm systems installed."
 3      3.  By amending section 436M-6 to read:
 4      "[[]436M-6[]]  Audible alarm systems.  Every audible alarm
 5 system shall have a device to automatically terminate the audible
 6 alarm within five minutes of activation in the event it was
 7 activated by means other than it was designed for. [No audible
 8 alarm system, whether in use prior to or after November 8, 1986,
 9 shall be used, sold, or leased unless the system complies with
10 this section]."
11      4.  By amending section 436M-7 to read:
12      "[[]436M-7[]]  Automatic dialing service.  Automatic
13 telephone dialers shall not be programmed for a municipal
14 emergency number such as 911 or the telephone number of any
15 police facility.  [No automatic telephone dialer, whether in use
16 prior to or after November 8, 1986, shall be used, sold, or
17 leased unless the system complies with this section.]"
18      5.  By amending section 436M-10 to read:
19      "[[]436M-10[]]  [Penalty.] Violation; penalty.  Any person
20 who [engages in an unlawful act or practice that] violates any
21 provision of this chapter shall, upon conviction, be fined not
22 less than $500 or more than $2,500 [for each unlawful act or
23 practice]."

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 1      SECTION 2.  Statutory material to be repealed is bracketed.
 2 New statutory material is underscored.
 3      SECTION 3.  This Act shall take effect upon its approval.
 5                       INTRODUCED BY:  ___________________________