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South Carolina - Alarm Code of Laws

South Carolina  ·  PSI Services Contractor

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Total questions
20
Passing score
70%
Exam time
60 min
Administered by
PSI Services Contractor
Format
Reference materials allowed

South Carolina State Portion 20 questions

South Carolina Code of Laws regulating alarm contractors 20 Q · 100%
Definitions of alarm business roles and entity typesLicense application requirements and qualifying party certificationBranch office requirements and registration proceduresGrounds for disciplinary action against licensees and registered employeesLicense fees, renewal procedures, and late renewal penaltiesGrounds for license denial and criminal background check requirementsLiability insurance requirements for alarm businessesExemptions from chapter applicability and enforcement by building officials

Key Distinctions

§ 40-79-130(1) grounds (discretionary refusal)vs§ 40-79-130(2) grounds (absolute bar)

Subsection (1) lists grounds on which the department 'may refuse' to issue a license or registration, while subsection (2) is an absolute bar — e.g., an applicant presently under suspension or on probation by a professional licensing entity in this or any other state, or with unresolved complaints or charges pending before any professional licensing board, may not be issued a license or registration.

South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-130(1) and (2)
Burglar alarm applicant trainingvsFire alarm applicant training

A burglar alarm applicant must take the Level I training course with a certificate of completion from the National Training School (§ 40-79-230(B)(3)(a)), while a fire alarm applicant may take the Level I course from the National Training School or the Level II course with a certificate of completion from NICET (§ 40-79-230(B)(3)(b)).

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-230(B)(3)
Branch office primary qualifying partyvsMain office primary qualifying party

Each branch office doing business in this State must have a primary qualifying party assigned to that location exclusively, who may not serve as primary qualifying party for any other business location.

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-220(A)
Registered employee (must register)vsTemporary personnel exempt from registration

A 'registered employee' is one employed more than thirty days in any given calendar year (and includes a part-time employee with access to customers' records or files), whereas a licensee may use an out-of-state-registered alarm technician for not more than ninety days in any given calendar year, and temporary administrative, monitoring, or customer service personnel working not more than thirty consecutive days, without registration (subject to verification and personnel-file documentation).

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(20)
Qualifying party ceasing duties — notice/replacementvsRegistered employee termination — notice

When a qualifying party ceases duties or leaves employment, the licensee and qualifying party must notify the department in writing within fifteen days and a substitute primary qualifying party must be obtained within ninety days; for a terminated registered employee, the licensee and the employee must give written notice within thirty days, and if the employee fails to do so the department shall immediately cancel his registration.

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-220(B)(3)
License not renewed within ninety daysvsQualifying party inactive four consecutive years

A license not renewed after ninety days from expiration is canceled and the applicant must file an initial application and pay applicable fees, with no examination required if the qualifying party otherwise satisfies licensing requirements; by contrast, a qualifying party not listed for any alarm business for four consecutive years must pass any examinations required by the board to become certified.

South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-240(B) and 40-79-50(4)
Insurance cancellation — notice to departmentvsInsurance cancellation — replacement coverage

The licensee must notify the department of a policy cancellation within fifteen days of the date of cancellation, while a new policy must be obtained within thirty days of cancellation; after thirty days of cancellation an initial application must be filed (no examination required if the qualifying party otherwise meets requirements).

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-250(C)
Civil penalty maximum (§ 40-79-110(C))vsUnpaid monies threshold (§ 40-79-110(A)(13))

The board may require payment of a civil penalty of up to five thousand dollars for each violation, whereas failure to pay monies when due for materials or services becomes a disciplinary ground only when the amount is in excess of five hundred dollars.

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-110(C)
South Carolina Contractor's Licensing BoardvsDepartment of Labor, Licensing and Regulation

An 'alarm business' is an entity licensed by the South Carolina Contractor's Licensing Board (the 'board') to engage in the burglar or fire alarm system business or both; the Department provides administrative support and receives applications, but the license is issued under the board's authority.

South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-20(2) and 40-79-20(5)
Exempt alarm work (§ 40-79-310)vsRegulated alarm work

Camera, card access, or walk-through systems, vehicle/aircraft/boat devices, responders, self-owned or self-leased installations, and a mechanical contractor holding an electrical contractor's license who designs, installs, and services fire alarm systems are excepted, while burglar and fire alarm systems installed or serviced for others — including an entity installing at its franchisees' stores, or a manufacturer/distributor that sells, markets, services, or installs at a client's residence or business — are regulated.

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-310
License returned after revocationvsReapplication after revocation

A canceled or revoked license must be returned to the department within fifteen days of notification, while reapplication is permitted no sooner than one year after revocation, with the applicant meeting all initial licensure requirements and appearing before the board.

South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-110(E) and (F)
Administrative personnelvsMonitoring / customer service personnel / alarm technician

Administrative personnel perform daily office functions for the management of an alarm business, monitoring personnel observe the operation and activation of alarm systems from a monitoring station, customer service personnel provide support for customer problems, complaints, questions, and concerns, and an alarm technician performs set-up, installation, repair, alteration, or connection work.

South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(1)

Key Terms

Alarm business South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-20(2) and 40-79-20(5)
An entity licensed by the South Carolina Contractor's Licensing Board to engage in the burglar or fire alarm system business, or both (§ 40-79-20(2)).
Board South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-20(2) and 40-79-20(5)
The South Carolina Contractor's Licensing Board (§ 40-79-20(5)).
Burglar alarm system business South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(6)
An entity that designs, installs, services, maintains, or alters burglar alarm systems — including electric fences and heat and smoke sensors installed within a burglar alarm system and systems detecting intrusion, burglary, and breaking or entering — but the term does not include home health care signaling devices (§ 40-79-20(6)).
Registered employee South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(20)
An individual of an alarm system business who has not met the requirements of a qualifying party, is employed more than thirty days in any given calendar year, and is registered with the department (§ 40-79-20(20)).
Registered South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(19)
Status that expressly includes a part-time employee who has access to customers' records or files (§ 40-79-20(19)).
Administrative personnel South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(1)
An individual who performs daily office functions for the management of an alarm business (§ 40-79-20(1)).
Monitoring personnel South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(1)
Individuals who observe the operation and activation of alarm systems from a monitoring station (§ 40-79-20(16)).
Customer service personnel South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(1)
Individuals who provide support for customer problems, complaints, questions, and concerns (§ 40-79-20(8)).
Alarm technician South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-20(1)
An individual who performs set-up, installation, repair, alteration, or connection work on alarm systems (§ 40-79-20(3)).
Primary qualifying party South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-230(A)
The qualifying party who must sign the license application along with the owner, partners, or president, and who must be proven to be a full-time employee in a management position; each branch office must have one assigned exclusively to that location (§§ 40-79-230(A), 40-79-230(B)(4), 40-79-220(A)(2)).
Qualifying party (multiple/transfer rules) South Carolina Code of Laws, Title 40, Chapter 79, Sections 40-79-220(B)(2) and (B)(5)
Any number of employees may become qualified and be listed as qualifying parties, but no qualifying party may serve for more than one licensee at a time and must be a full-time employee of the licensee; on transfer to a new alarm business the NEW employer must send written notification to the department within fifteen days of employment (§§ 40-79-220(B)(2), (B)(4), (B)(5)).
Comprehensive general liability policy South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-250(B)
Evidence of a policy providing minimum coverage of one hundred thousand dollars for bodily injury, death, or destruction of property resulting from the negligent act or acts of the principal insured, which must be filed before any alarm license may be issued (§ 40-79-250(B)).
Branch office insurance South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-220(A)(5)
Each branch office must have a separate comprehensive general liability insurance policy or be listed on the home office policy in accordance with the chapter (§ 40-79-220(A)(5)).
Branch office registration South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-220(A)(4)
Every branch office and its primary qualifying party must be registered with the department prior to opening, and all registered employees with access to the licensee's client records must be registered within thirty working days of employment within the branch office (§ 40-79-220(A)(4)).
Waiver request on denial of renewal South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-240(C)
A registered employee who fails to qualify may submit a waiver request to the board within ten days of receipt of the denial of renewal and may continue working under strict supervision of the alarm business until the board rules on a timely request (§ 40-79-240(C)).
Repeat-violation ground for discipline South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-110(A)(24)
Three or more violations within a three-year period is a ground for discipline, but multiple violations committed during the course of a single project must be treated as one offense (§ 40-79-110(A)(24)).
Effect of petition for review South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-110(I)
A suspension, cancellation, revocation, or restriction becomes effective upon delivery of the board's written decision, and service of a petition for review does not stay the board's decision pending completion of the appellate process (§ 40-79-110(I)).
Bid-receipt violation South Carolina Code of Laws, Title 40, Chapter 79, Section 40-79-110(L)
It is a violation of the chapter for an awarding authority, owner, contractor, or his agent to receive or consider any bid unless the bidder has first obtained the licenses required by this chapter (§ 40-79-110(L)).

Formulas to Know

Initial alarm business license fees (§ 40-79-50(2))$200 (business license, includes one primary qualifying party certificate) + $50 × (number of branch offices, each including one primary qualifying party certificate) + $10 × (each additional qualifying party certificate). Worked example: $200 + (2 × $50) + (3 × $10) = $330.
Biennial renewal fees (§ 40-79-50(3))$200 (business renewal, includes one primary qualifying party certificate) + $50 × (each branch office, each including one primary qualifying party certificate) + $10 × (each additional qualifying party certificate).
Late renewal fee tiers (§ 40-79-50(4))(a) up to thirty days past expiration: $100; (b) up to sixty days past expiration: $150; (c) more than 60 but up to 90 days late: $175. Add the single applicable late fee to the renewal fees.
Renewal total, 25 days late, business + 3 additional qualifying party certificates (worked example)$200 + (3 × $10 = $30) + $100 late fee = $330 (the $150 tier would not apply until after thirty days).
Renewal total, 50 days late, business + 1 branch office (worked example)$200 + $50 + $150 late fee = $400.
Renewal total, 75 days late, business + 1 branch + 2 additional qualifying party certificates (worked example)$200 + $50 + (2 × $10 = $20) + $175 late fee = $445.
Replacement certificate/license fee (§ 40-79-50(5))$10 for replacement of a lost or destroyed license; $10 for replacement of a lost or destroyed certificate.
Counting offenses for the repeat-violation ground (§ 40-79-110(A)(24))Multiple violations committed during a single project count as one offense; add separate violations individually. Worked example: 2 violations on one project (=1) + 1 separate violation = 2 offenses.