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HB260 Alabama 2023 Session

Updated Feb 26, 2026
Notable

Summary

Session
Regular Session 2023
Title
Relating to the Alabama Electronic Security Board of Licensure; to amend Sections 34-1A-1, 34-1A-3, 34-1A-5, and 34-1A-7, Code of Alabama 1975, to create and provide for the qualifications of a qualifying agent license; to authorize the board to levy and collect administrative fines; to revise the process for pursuing disciplinary actions and cease and desist orders; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022
Summary

HB260 creates a qualifying agent license for Alabama's electronic security industry, expands board enforcement, and updates disciplinary and cease-and-desist procedures.

What This Bill Does

It creates a Qualifying Agent license and requires each licensed company to have at least one qualifying agent in a management or supervisory role who works at least 33 hours per week (monitoring-only firms have different requirements). The bill broadens the Alabama Electronic Security Board of Licensure's powers to license, regulate, and enforce rules, including background checks and the ability to levy administrative fines and pursue disciplinary actions. It enhances enforcement tools by allowing cease-and-desist orders, injunctions, and penalties for violations, and requires licensees to display IDs, follow contract disclosure rules, and maintain insurance. It also notes a local-fund impact but states the bill is exempt from the Constitution’s local-fund requirements due to specific exceptions, and it becomes effective on the first day of the third month after passage.

Who It Affects
  • Alarm system installers, CCTV/electronic security providers, alarm monitoring companies, locksmiths, and other regulated businesses and their employees who must obtain or designate a qualifying agent and comply with background checks, license display, and disciplinary rules.
  • Consumers and the general public who use alarm, CCTV, or access control services, who may benefit from stronger oversight, clearer complaint processes, and visible license information.
Key Provisions
  • Creation of a Qualifying Agent license and requirement that each licensed company have at least one qualifying agent in a management/supervisory role (except certain monitoring-only firms); the qualifying agent must work at least 33 hours per week.
  • Board authority to license and regulate individuals and entities in alarm system, CCTV, and electronic access control work; require background checks (including fingerprints) and allow for criminal history checks; nonresident requirements and exemptions are specified.
  • Licensing terms: licenses issued for two-year periods (potentially staggered renewals), with renewals and transfers subject to rules; can be denied, suspended, or revoked for just cause; licenses must display license numbers and be accompanied by consumer notices.
  • Enforcement and penalties: the board can issue cease-and-desist orders, seek injunctions, and impose monetary penalties up to $5,000 per violation for certain enforcement actions; general violations under the chapter may have penalties up to $1,000 per violation; the board can file civil actions to collect fines.
  • Consumer protections and disclosures: licensees and employees must wear board-issued photo IDs when providing services; written contracts must include board contact information and complaint language; inspections, liability insurance requirements, and confidentiality protections for alarm records are established.
AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Bill Actions

H

Enacted

H

Enrolled

S

Ready to Enroll

S

Read a Third Time and Pass

S

On Third Reading in Second House

S

Read Second Time in Second House

S

Reported Out of Committee in Second House

S

Reported Favorably from Senate State Governmental Affairs

S

Referred to Committee to Senate State Governmental Affairs

H

Read First Time in Second House

H

Adopt 6P4VZZ-1

H

Read a Third Time and Pass as Amended

H

Adopt PZ0BRE-1

H

On Third Reading in House of Origin

H

Read Second Time in House of Origin

H

Reported Out of Committee in House of Origin

H

Reported Favorably from House Boards, Agencies and Commissions

H

Amendment/Substitute by House Boards, Agencies and Commissions 6NAV13-1

H

Introduced and Referred to House Boards, Agencies and Commissions

H

Read First Time in House of Origin

Calendar

Hearing

Senate State Governmental Affairs Hearing

Finance and Taxation at 13:00:00

Hearing

House Boards, Agencies and Commissions Hearing

Room 123 at 10:30:00

Bill Text

Votes

Read a Third Time and Pass as Amended

April 25, 2023 House Passed
Yes 103
Abstained 1
Absent 1

Documents

Source: Alabama Legislature