H.B. No. 3433

	AN ACT
	relating to the regulation of certain private security companies
	and occupations; creating an offense.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1702.002(1-a), Occupations Code, is
	amended to read as follows:
	(1-a)  For purposes of Subdivision (1), the term "alarm
	system" does not include a telephone entry system, an operator for
	opening or closing a residential or commercial gate or door, or an
	accessory used only to activate a gate or door, if the system,
	operator, or accessory is not monitored by security personnel or a
	security service and does not send a signal to which law enforcement
	or emergency services respond [connected to a computer or data
	processor that records or archives the voice, visual image, or
	identifying information of the user].
	SECTION 2.  Section 1702.105, Occupations Code, is amended
	to read as follows:
	Sec. 1702.105.  ALARM SYSTEMS COMPANY. (a) A person acts as
	an alarm systems company for the purposes of this chapter if the
	person sells, installs, services, monitors, or responds to an alarm
	system or detection device.
	(b)  An alarm systems company may sell, install, maintain, or
	service, or offer to sell, install, maintain, or service, an
	electronic access control device or a mechanical security device
	that is capable of activation through a wireless signal. An alarm
	systems company may not rekey an electronic access control device
	or mechanical security device that can be activated by a key. This
	subsection does not apply to a mechanical security device or
	electronic access control device installed in a motor vehicle.
	SECTION 3.  Section 1702.110, Occupations Code, is amended
	by amending Subsection (a) and adding Subsection (c) to read as
	follows:
	(a)  An application for a license under this chapter must be
	in the form prescribed by the board 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)  a statement as to the classification for which the
	applicant requests qualification;
	(5)  if the applicant is an entity other than an
	individual, the full name and residence address of each partner,
	officer who oversees the security-related aspects of the business,
	and director of the applicant, and of the applicant's manager;
	(6)  if the applicant is an individual, the [two
	classifiable sets of] fingerprints of the applicant or, if the
	applicant is an entity other than an individual, of each officer who
	oversees the security-related aspects of the business and of each
	partner or shareholder who owns at least a 25 percent interest in
	the applicant, provided in the manner prescribed by the board;
	(7)  a verified statement of the applicant's experience
	qualifications in the particular classification in which the
	applicant is applying;
	(8)  a report from the department stating the
	applicant's record of any convictions for a Class B misdemeanor or
	equivalent offense or a greater offense;
	(9)  the social security number of the individual
	making the application; and
	(10)  other information, evidence, statements, or
	documents required by the board.
	(c)  The department may return an application as incomplete
	if the applicant submits payment of a fee that is returned for
	insufficient funds and the applicant has received notice and an
	opportunity to provide payment in full.
	SECTION 4.  Section 1702.113(a), Occupations Code, is
	amended to read as follows:
	(a)  An applicant for a license, certificate of
	registration, endorsement, or security officer commission or the
	applicant's manager must be at least 18 years of age and must not:
	(1)  at the time of application be charged under an
	information or indictment with the commission of a Class A or Class
	B misdemeanor or felony offense determined to be disqualifying by
	board rule [, under an information or indictment];
	(2)  have been found by a court to be incompetent by
	reason of a mental defect or disease and not have been restored to
	competency;
	(3)  have been dishonorably discharged from the United
	States armed services, discharged from the United States armed
	services under other conditions determined by the board to be
	prohibitive, or dismissed from the United States armed services if
	a commissioned officer in the United States armed services; or
	(4)  be required to register in this or any other state
	as a sex offender, unless the applicant is approved by the board
	under Section 1702.3615.
	SECTION 5.  Section 1702.121(b), Occupations Code, is
	amended to read as follows:
	(b)  A manager shall [be] immediately cease all managerial
	actions [terminated] on the effective date of any summary action
	taken against the manager.  Any period of temporary operation
	authorized under this section or Section 1702.122 begins [starts]
	on the effective date of the summary action [termination].
	SECTION 6.  Section 1702.124, Occupations Code, is amended
	by adding Subsection (f) to read as follows:
	(f)  In addition to the requirements of this section, an
	applicant or license holder shall provide and maintain a
	certificate of insurance or other documentary evidence of insurance
	sufficient to cover all of the business activities of the applicant
	or license holder related to private security.
	SECTION 7.  Section 1702.223(b), Occupations Code, is
	amended to read as follows:
	(b)  An alarm systems installer may sell, install, maintain,
	[or] repair, or service an electronic access control device or a
	mechanical security device that is capable of activation through a
	wireless signal. An alarm systems installer may not rekey an
	electronic access control device or mechanical security device that
	can be activated by a key. This subsection does not apply to a
	mechanical security device or electronic access control device
	installed in a motor vehicle.
	SECTION 8.  Section 1702.282(a), Occupations Code, is
	amended to read as follows:
	(a)  The board shall conduct a criminal history check,
	including a check of any criminal history record information
	maintained by the Federal Bureau of Investigation, in the manner
	provided by Subchapter F, Chapter 411, Government Code, on each
	applicant for a license, registration, security officer
	commission, letter of approval, permit, endorsement, or
	certification.  As part of its criminal history check, the board
	may request that the applicant provide certified copies of relevant
	court documents or other records.  The failure to provide the
	requested records within a reasonable time as determined by the
	board may result in the application being considered
	incomplete.  An applicant is not eligible for a license,
	registration, commission, letter of approval, permit, endorsement,
	or certification if the check reveals that the applicant has
	committed an act that constitutes grounds for the denial of the
	license, registration, commission, letter of approval, permit,
	endorsement, or certification.  Except as provided by Subsection
	(d), each applicant shall submit at the time of [include in the]
	application, including an application for the renewal of a license,
	registration, commission, letter of approval, permit, endorsement,
	or certification, [two complete sets of] fingerprints in the
	manner [on forms] prescribed by the board accompanied by the fee set
	by the board.
	SECTION 9.  Section 1702.288, Occupations Code, is amended
	by adding Subsection (f) to read as follows:
	(f)  A license holder acting as an alarm systems company does
	not have to provide the notice required under Subsection (d) if the
	contact information, including the address and the telephone
	numbers for the alarm systems company, has not changed.
	SECTION 10.  Subchapter L, Chapter 1702, Occupations Code,
	is amended by adding Section 1702.289 to read as follows:
	Sec. 1702.289.  INSPECTIONS. (a) An employee or agent of the
	department or board, as applicable, who enters the place of
	business of a person regulated under this chapter for the purpose of
	conducting an inspection or audit must:
	(1)  notify the manager or owner of the business of the
	presence of the person conducting the inspection or audit; and
	(2)  present the manager or owner of the business with
	credentials that identify the person conducting the inspection or
	audit as an employee or agent of the department or board.
	(b)  This section does not prohibit the department or board
	from conducting an undercover investigation or covert audit in
	order to determine compliance with this chapter or a rule adopted
	under this chapter.
	SECTION 11.  Section 1702.324(b), Occupations Code, is
	amended to read as follows:
	(b)  This chapter does not apply to:
	(1)  a manufacturer or a manufacturer's authorized
	distributor while selling equipment intended for resale;
	(2)  a person engaged exclusively in the business of
	obtaining and providing information to:
	(A)  determine creditworthiness;
	(B)  collect debts; or
	(C)  ascertain the reliability of information
	provided by an applicant for property, life, or disability
	insurance or an indemnity or surety bond;
	(3)  a person engaged exclusively in the business of
	repossessing property that is secured by a mortgage or other
	security interest;
	(4)  a person who is engaged in the business of
	psychological testing or other testing and interviewing services,
	including services to determine attitudes, honesty, intelligence,
	personality, and skills, for preemployment purposes;
	(5)  a person who:
	(A)  is engaged in obtaining information that is a
	public record under Chapter 552, Government Code, regardless of
	whether the person receives compensation;
	(B)  is not a full-time employee, as defined by
	Section 61.001, Labor Code, of a person licensed under this
	chapter; and
	(C)  does not perform any other act that requires
	a license under this chapter;
	(6)  a licensed engineer practicing engineering or
	directly supervising engineering practice under Chapter 1001,
	including forensic analysis, burglar alarm system engineering, and
	necessary data collection;
	(7)  an employee of a cattle association who inspects
	livestock brands under the authority granted to the cattle
	association by the Grain Inspection, Packers and Stockyards
	Administration of the United States Department of Agriculture;
	(8)  a landman performing activities in the course and
	scope of the landman's business;
	(9)  an attorney while engaged in the practice of law;
	(10)  a person who obtains a document for use in
	litigation under an authorization or subpoena issued for a written
	or oral deposition;
	(11)  an admitted insurer, insurance adjuster, agent,
	or insurance broker licensed by the state, performing duties in
	connection with insurance transacted by that person;
	(12)  a person who on the person's own property or on
	property owned or managed by the person's employer:
	(A)  installs, changes, or repairs a mechanical
	security device;
	(B)  repairs an electronic security device; or
	(C)  cuts or makes a key for a security device;
	(13)  security personnel, including security contract
	personnel, working at a commercial nuclear power plant licensed by
	the United States Nuclear Regulatory Commission;
	(14)  a person or firm licensed as an accountant or
	accounting firm under Chapter 901, an owner of an accounting firm,
	or an employee of an accountant or accounting firm while performing
	services regulated under Chapter 901;
	(15)  a retailer, wholesaler, or other person who sells
	mechanical security devices, including locks and deadbolts, but who
	does not:
	(A)  service mechanical security devices for the
	public outside of the person's premises; or
	(B)  claim to act as a locksmith;
	(16)  an employee while performing investigative
	services that would otherwise be subject to this chapter for an
	entity regulated by the:
	(A)  Texas Department of Insurance;
	(B)  Office of Thrift Supervision;
	(C)  Securities and Exchange Commission;
	(D)  Federal Deposit Insurance Corporation; or
	(E)  Financial Industry Regulatory Authority;
	[or]
	(17)  a social worker who holds a license issued under
	Chapter 505 who is engaged in the practice of social work;
	(18)  persons licensed under Chapter 1101, an
	association thereof, their authorized agents, or a multiple listing
	service, engaged in the business of selling, maintaining,
	repairing, programming, or placing lockboxes used for accessing
	real property; or
	(19)  an automobile club that holds a certificate of
	authority under Chapter 722, Transportation Code, its
	subcontractor, or a business that provides similar services, that
	unlocks a vehicle at the request of the owner or operator of the
	vehicle and that does not otherwise perform a locksmith service.
	SECTION 12.  Section 1702.361, Occupations Code, is amended
	by amending Subsection (b) and adding Subsection (d) to read as
	follows:
	(b)  The department shall take disciplinary action described
	by Subsection (a) on proof:
	(1)  that the applicant, license holder, manager or
	majority owner of a license holder, registrant, endorsement holder,
	or commissioned security officer has:
	(A)  violated this chapter or a rule adopted under
	this chapter;
	(B)  become ineligible for licensure,
	registration, or endorsement under Section 1702.113, or a
	commission under Section 1702.163, if applicable, other than an
	action for which the department has taken summary action under
	Section 1702.364;
	(C)  engaged in fraud, deceit, or
	misrepresentation;
	(D)  made a material misstatement in an
	application for or renewal of a license, registration, endorsement,
	or commission;
	(E)  failed to pay in full an administrative
	penalty assessed under Subchapter Q, for which the board has issued
	a final order; [or]
	(F)  performed any service for which an
	endorsement is required under this chapter and either:
	(i)  was not employed with a company
	licensed under this chapter at the time the service was performed;
	or
	(ii)  performed the service for a company
	licensed under this chapter that was not listed on the individual's
	registration without informing the board of the individual's
	employment with the company within a reasonable period; or
	(G)  failed to qualify a new manager within the
	time required by board rule following the termination of a manager;
	or
	(2)  that the license holder of a registrant or
	commissioned security officer has submitted to the department
	sufficient evidence that the registrant or commissioned security
	officer:
	(A)  engaged in fraud or deceit while employed by
	the license holder; or
	(B)  committed theft while performing work as a
	registrant or commissioned security officer.
	(d)  The department may revoke a license, certificate,
	registration, endorsement, or commission if the person holding that
	credential under this chapter submits payment of a fee or penalty
	that is returned for insufficient funds and the person has received
	notice and an opportunity to provide payment in full.
	SECTION 13.  Section 1702.364(a), Occupations Code, is
	amended to read as follows:
	(a)  On receiving written notice from a law enforcement
	agency that a person has been charged with or convicted of an
	offense that would make the person ineligible for a license,
	certificate of registration, endorsement, or security officer
	commission under Section 1702.113 or 1702.163, or a rule adopted
	under Section 1702.004(b), the department shall:
	(1)  summarily deny the person's application for a
	license, registration, endorsement, or security officer
	commission;
	(2)  in the event of pending charges, summarily suspend
	the person's license, certificate of registration, endorsement, or
	security officer commission; or
	(3)  in the event of a conviction, summarily revoke the
	person's license, certificate of registration, endorsement, or
	security officer commission.
	SECTION 14.  Subchapter P, Chapter 1702, Occupations Code,
	is amended by adding Section 1702.3841 to read as follows:
	Sec. 1702.3841.  INSUFFICIENT INSURANCE COVERAGE; OFFENSE.
	(a) A person commits an offense if the person is subject to Section
	1702.124 and knowingly fails to provide and maintain a certificate
	of insurance or other documentary evidence of insurance sufficient
	to cover all of the business activities of the person related to
	private security.  A person is presumed to have acted knowingly for
	purposes of this subsection if the person received reasonable
	notice from the department and an opportunity to provide or
	maintain the documentation required by Section 1702.124 and failed
	to do so.
	(b)  An offense under this section is a Class A misdemeanor.
	SECTION 15.  Subchapter B, Chapter 1302, Occupations Code,
	is amended by adding Section 1302.064 to read as follows:
	Sec. 1302.064.  TECHNOLOGY INTEGRATION. This chapter does
	not apply to a person licensed under Chapter 1702 of this code or
	Chapter 6002, Insurance Code, who sells, designs, or offers to sell
	or design a product or technology, including a burglar alarm or fire
	alarm, that is integrated with an air conditioning or refrigeration
	system if the sale, design, or offer does not include the
	installation of any part of an air conditioning or refrigeration
	system by that person.
	SECTION 16.  Section 12.092(b), Health and Safety Code, is
	amended to read as follows:
	(b)  The medical advisory board shall assist the Department
	of Public Safety of the State of Texas in determining whether:
	(1)  an applicant for a driver's license or a license
	holder is capable of safely operating a motor vehicle; or
	(2)  an applicant for or holder of a license to carry a
	concealed handgun under the authority of Subchapter H, Chapter 411,
	Government Code, or an applicant for or holder of a commission as a
	security officer under Chapter 1702, Occupations Code, is capable
	of exercising sound judgment with respect to the proper use and
	storage of a handgun.
	SECTION 17.  Sections 1702.113(b) and (c), Occupations Code,
	are repealed.
	SECTION 18.  (a)  The changes in law made by this Act to
	Chapter 1702, Occupations Code, apply only to an application for an
	original or renewal license, registration, or endorsement
	submitted to the Texas Private Security Board on or after January 1,
	2014.  An application submitted before January 1, 2014, is governed
	by the law in effect on the date the application was submitted, and
	the former law is continued in effect for that purpose.
	(b)  The Texas Private Security Board shall adopt rules to
	implement the changes in law made by this Act not later than January
	1, 2014.
	SECTION 19.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3433 was passed by the House on May 2,
	2013, by the following vote:  Yeas 145, Nays 2, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 3433 on May 24, 2013, by the following vote:  Yeas 131, Nays 13,
	1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3433 was passed by the Senate, with
	amendments, on May 22, 2013, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor