Senate Commerce Committee Statement to Senate, No. 2419 — State of New Jersey (June 24, 2020)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 2419, State of New Jersey, dated June 24, 2020, reporting the bill favorably. The bill regulates perimeter fence intrusion protection systems and other alarm systems governed by "The Electrical Contractors Licensing Act of 1962," and bars municipal or county government from licensing, permit-fee, and other requirements on businesses installing systems that meet listed standards. Those standards include an energizer driven by a battery of not more than 12 volts of direct current, a surrounding nonelectric fence or wall at least five feet high, and warning signs at not more than 40 foot intervals. The bill also sets confidentiality standards for alarm service practitioners and licensed locksmiths, treating noncompliance as professional misconduct.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
2419

STATE
OF NEW JERSEY

DATED: JUNE
24, 2020

The
Senate Commerce Committee reports favorably Senate Bill No. 2419.

This
bill regulates the installation, maintenance and repair of perimeter fence
intrusion protection systems, and other alarm systems governed by "The
Electrical Contractors Licensing Act of 1962." The bill also establishes
confidentiality standards for alarm service practitioners and licensed
locksmiths.

The
bill restricts local government regulation of the installation and maintenance
of a perimeter fence intrusion protection system, as long as the system meets
the definition of the system established by the bill and several additional
requirements. In order to benefit from the restrictions on local government
oversight established by the bill, the perimeter fence intrusion protection
system is required to:

(1) interface with a monitored
alarm device in a manner that enables the burglar alarm system to transmit a
signal intended to summon the business or law enforcement;

(2) be located on property that
is not designated exclusively for residential use;

(3) have an energizer that is
driven by a commercial storage battery that is not more than 12 volts of direct
current;

(4) have an energizer that meets
the standards set forth by the International Electrotechnical Commission
Standard 60335-2-76, current edition;

(5) be surrounded by a
nonelectric perimeter fence or wall of at least five feet in height;

(6) not exceed ten feet in
height or two feet higher than the adjacent nonelectric perimeter fence or
wall, whichever is higher;

(7) be marked with conspicuous
warning signs that are located on the Perimeter Fence Intrusion Protection
System at not more than 40 foot intervals and that read: “WARNING—ELECTRIC
FENCE”;

(8) comply with the requirements
set forth in the rules and regulations adopted by the Board of Examiners of
Electrical Contractors; and

(9) be installed by a person
trained by the manufacturer or holding a training certification on the
installation, maintenance, repair, safety and operation of the perimeter fence
intrusion protection system to be installed.

As
long as these perimeter fence intrusion protection system requirements are met,
the bill prohibits municipal or county government from imposing the following
requirements on a business installing the systems:

(1) requiring the licensing or
registration the business;

(2) requiring the business to
submit information about the business’ systems;

(3) requiring the business to
pay a third party person or business an alarm registration or licensure fee;

(4) requiring a permit or fee
for the installation of a perimeter fence intrusion protection system in
addition to an alarm system permit issued by the municipality or county;

(5) imposing an installation or
operational requirement for a perimeter fence intrusion protection system that
is inconsistent with the requirements and standards of the "The Electrical
Contractors Licensing Act of 1962," P.L.1962, c.162 (C.45:5A-1 et
seq.), as supplemented and amended by subsequent legislation, and this bill;

(6) impeding the installation or
continued operation of a perimeter fence intrusion protection system; or

(7) prohibiting the system’s
installation or use.

Finally,
the bill establishes confidentiality standards for licensees governed by
"The Electrical Contractors Licensing Act of 1962," including
professionals engaged in the installation and maintenance of perimeter fence
intrusion protection systems, licensed locksmiths, and alarm businesses.
Specifically, the bill requires licensees governed by the act to refrain from
disclosing, releasing to any third-party entities, or distributing information
relating to the provision of burglar alarm, fire alarm or locksmithing services
of the client without their consent, unless compelled by a court order.

The
bill requires any person who is the custodian of confidential information to
exercise due diligence on an ongoing basis to protect the security of the
confidential information including, but not limited to, maintaining current
technology to prevent unauthorized access to computers, computer systems,
software and computer networks; maintaining adequate safeguards to ensure that
confidential information is only distributed to authorized individuals; and
conducting employee training in information security measures.

If a
person’s confidential information is accessed by an unauthorized person or if a
breach of the custodian’s security measures occurs which may have compromised
the security of the person’s confidential information, the bill requires
notification to the person. The bill prohibits information from being accessed
by, used or sold to, or used by any third party person or business or
government agency without that person’s or business's written authorization.
The bill directs that a licensee who fails to comply with the requirements of
the bill regarding the maintenance of confidential information would be deemed
to have engaged in professional misconduct, and would be subject to
disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of
P.L.1978, c.73 (C.45:1-21, 45:1-22 and 45:1-25).

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