February 14, 1986
Subject:
Alarm System Licensing Act; Licensing of Retail Storefront Alarms
Requested By:
James F. Kirk Administrator Alarm Systems Licensing Board
Question:
Does the Alarm Systems Licensing Act require that businesses which install and service retail storefront alarms be licensed under N.C.G.S. Chapter 74D?
Conclusion:
Yes
Retail storefront alarms are devices which are placed at the entrances of retail stores and which are wired into the electrical system. These devices set off an alarm in the store itself when specially tagged merchandise is carried past the alarm unit.
N.C.G.S. Chapter 74D-2 requires that any person, firm, association or corporation which engages in an alarm systems business be licensed in accordance with the Alarm Systems Licensing Act, and defines an alarm systems business as "any person, firm, association or corporation which installs, services, monitors or responds to electrical, electronic or mechanical alarm signal devices, burglar alarms, television cameras or still cameras used to detect burglary, breaking or entering, intrusion, shoplifting, pilferage, or theft, for a fee or other valuable consideration."
12 N.C.A.C. 11 .0103(6) defines "installs" as placing an alarm device in a residential or commercial location and includes demonstrating the utilization of an alarm system device for a specific location and function within the protected premises and, with such knowledge of the alarm system operation, delivers that device to the owner or operator of the protected premises.
12 N.C.A.C. 11 .0103(9) defines "services" as inspecting, testing, repairing or replacing an alarm system device within protected premises.
G.S. 74D-3 exempts from the licensing requirement businesses which only sell or manufacture alarms; businesses which install, service or respond to fire alarms; motor vehicle, aircraft or boat alarms; alarms installed on property owned by or leased to the installer; and alarm monitoring companies located in another state.
Retail establishments which purchase an alarm device and install that device themselves would, therefore, be exempt from the license requirement. In addition, an employee of the store who may respond to the device would not require licensure under this Act since the rules promulgated by this statute define "responds" as ". . . receiving a monitored alarm signal . . . and being required by contract to take action . . ." (N.C.A.C. 11 .0103(8)).
The installation of retail storefront alarms meets both the definition of "installs" and the definition of an "alarm systems business" in that they are placed in a commercial location to detect shoplifting, pilferage or theft, and are electrical, electronic, or mechanical signal devices. They are, therefore, subject to licensure under the Alarm Systems Licensing Act.
Further, any servicing of such an alarm device which includes the inspecting, testing, repairing or replacing of that device, would fall under the definition of "services" and would also, therefore, be subject to licensure under G.S. Chapter 74D.
LACY H. THORNBURG ATTORNEY GENERAL
Dolores O. Nesnow Associate Attorney General