SB311 - Imposes certain requirements upon certain alarm companies. (BDR 52-730)

(Reprinted with amendments adopted on April 16, 2025) FIRST REPRINT S.B. 311 - *SB311_R1* SENATE BILL NO. 311–SENATOR ELLISON MARCH 10, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Imposes certain requirements upon certain alarm companies. (BDR 52-730) FISCAL NOTE: Effect on Local Government: Increases or Newly Provides for Term of Imprisonment in County or City Jail or Detention Facility. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to trade practices; imposing certain requirements upon certain alarm companies with respect to an alarm system that becomes defective or inoperative; providing penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Section 1 of this bill imposes certain requirements upon an “alarm company,” 1 which section 1 defines to mean a person who engages in the sale, installation, 2 service, maintenance, repair or replacement of an alarm system or the provision of 3 monitoring services. Section 1 defines “monitoring services” to mean, in general, 4 receiving signals indicating that an alarm system has been activated and notifying a 5 public safety agency of that information. 6 Section 1 requires an alarm company that, pursuant to a contract with a 7 customer of the alarm company, has installed an alarm system at the home or 8 business of the customer and charges the customer a monthly fee to perform 9 monitoring services, not later than 5 business days after receiving notice from the 10 customer that the alarm system is defective or inoperative, to: (1) repair or replace 11 the defective or inoperative alarm system or any component thereof; or (2) cancel 12 the remainder of the contract and refund any unearned money paid by the customer. 13 If the alarm company cancels the contract, section 1 prohibits the alarm company 14 from charging the customer a penalty, fee, forfeiture of deposit or any additional 15 cost because of the cancellation. 16 Existing law defines activities that constitute deceptive trade practices and 17 provides for the imposition of civil and criminal penalties against persons who 18 engage in deceptive trade practices. (Chapter 598 of NRS) Section 1 provides that a 19 violation of the provisions of section 1 constitutes a deceptive trade practice. 20 – 2 – - *SB311_R1* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 598 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. An alarm company that, pursuant to a contract with a 3 customer of the alarm company, has installed an alarm system at 4 the home or business of the customer and charges the customer a 5 monthly fee to perform monitoring services shall, not later than 5 6 business days after receiving notice from the customer that the 7 alarm system is defective or inoperative: 8 (a) Repair or replace the alarm system or any component 9 thereof that is defective or inoperative; or 10 (b) Cancel the remainder of the contract and refund to the 11 customer any unearned money paid in advance or as a deposit. 12 2. An alarm company who cancels a contract pursuant to 13 paragraph (b) of subsection 1 shall not charge the customer a 14 penalty, fee, forfeiture of deposit or any other additional cost 15 because of the cancellation. A customer whose contract is 16 cancelled pursuant to paragraph (b) of subsection 1 is not liable 17 for payment for any services after the effective date of the 18 cancellation. 19 3. Any violation of this section constitutes a deceptive trade 20 practice for the purpose of NRS 598.0903 to 598.0999, inclusive. 21 4. As used in this section: 22 (a) “Alarm company” means a person who engages in the 23 sale, installation, service, maintenance, repair or replacement of 24 an alarm system or the provision of monitoring services. 25 (b) “Alarm system” means a device or system that transmits an 26 audible, visual or electronic signal intended to summon or alert a 27 public safety agency. 28 (c) “Monitoring services” means receiving signals indicating 29 the activation of an alarm system and notifying a public safety 30 agency of that information for the purpose of summoning a 31 response from the public safety agency. 32 (d) “Public safety agency” has the meaning ascribed to it in 33 NRS 239B.020. 34 Sec. 2. The provisions of section 1 of this act apply to 35 contracts entered into on or after October 1, 2025. 36 H