BILL REQ. #:  H-4124.1 

Read first time 01/12/10.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to the licensing of locksmiths; reenacting and amending RCW 18.235.020 and 43.24.150; adding a new chapter to Title 18 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   INTENT. The legislature finds that in order to protect the public from the abuse and misuse of locksmithing supplies, manuals, or equipment resulting in violations of public health and safety, locksmiths need to be licensed and regulated by the state.
     Locksmiths operate in the public trust to secure and protect property and persons, and have knowledge and tools to bypass or neutralize security devices. Locksmiths need to be trained in applicable laws pertaining to the profession, such as the Americans with disabilities act, building codes, and fire and life safety codes. Locksmiths also need training on the proper installation and maintenance of security devices for the public well-being. The laws of this state do not currently protect the citizens from the unscrupulous use and abuse of the tools and knowledge of the locksmithing profession by untrained persons or persons with a criminal intent. Accordingly, the purpose of this chapter is to provide for the necessary licensure and regulation of locksmiths.

NEW SECTION.  Sec. 2   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the state board of locksmiths as created in section 5 of this act.
     (2) "Compensation" means money, fee, emolument, quid pro quo, barter, remuneration, pay, reward, indemnification, or satisfaction.
     (3) "Department" means the department of licensing.
     (4) "Director" means the director of the department of licensing.
     (5) "Emergency" means imminent threat to life or property.
     (6) "Lock" means any mechanical, electromechanical, electronic, or electromagnetic device, including any peripheral hardware, such as closed circuit television systems, wireless or infrared transmitters, card readers, keypads, or biometric scanners that are designed to control access or egress or to control the use of something.
     (7) "Locksmith" means any person licensed to perform locksmith services for compensation. "Locksmith" does not mean a person whose activities are limited to making duplicate keys.
     (8) "Locksmith services" or "locksmithing" means:
     (a) Selling, installing, servicing, repairing, repining, recombinating, and adjusting locks, safes, vaults, or safe deposit boxes;
     (b) Originating, duplicating, and copying keys;
     (c) Operating, bypassing, or neutralizing locks, safes, vaults, or safe deposit boxes;
     (d) Creating, documenting, selling, installing, managing, and servicing master-key systems;
     (e) Unlocking, bypassing, or neutralizing locks for motor vehicles;
     (f) Originating of keys for motor vehicles, which can include the programming, reprogramming, or bypassing of any security transponder, or immobilizer systems or subsequent technology built by the manufacturer; and
     (g) Keying or recombinating motor vehicle locks.

NEW SECTION.  Sec. 3   LICENSE REQUIRED. Except as provided in this chapter, it is unlawful for any person to perform or to offer to perform locksmith services without having been issued a valid locksmith license after June 30, 2012.

NEW SECTION.  Sec. 4   EXEMPTIONS. The provisions of section 3 of this act do not apply to:
     (1) Employees of police departments, fire departments, or other governmental agencies providing emergency services in their official line of duty;
     (2) Sales representatives providing a bona fide sales demonstration of products to locksmiths;
     (3) An in-store employee of a hardware store, do-it-yourself home products store, or other retail store, when rekeying locks just purchased or about to be purchased, in the store where that employee works;
     (4) Any person using a key-duplicating machine or key blanks in their place of business;
     (5) A property owner maintaining a file of key cutting data for a master-key system on the property;
     (6) An employee of a financial institution or trust company that provides safe, safe deposit box, or vault opening or lock services at his or her place of employment;
     (7) An automotive service dealer, a lock manufacturer, or an agent of a lock manufacturer servicing, installing, repairing, or rebuilding automotive locks or originating and duplicating automotive keys;
     (8) Building trades personnel installing locks or locking devices on a project that requires a building permit; or
     (9) A tow operator or repossessing agent possessing and using car opening tools to unlock vehicles to facilitate towing or repossession.

NEW SECTION.  Sec. 5   STATE BOARD OF LOCKSMITHS. (1) The state board of locksmiths is established.
     (2) The board must consist of nine members to be appointed by the governor with the advice of the director.
     (3) All members of the board must be residents of Washington. In making appointments to the board, the governor shall consider the geographic diversity of appointees. Six members of the board must be locksmiths. The locksmith members must have at least five years of experience as a locksmith or a safe and vault technician and be active in the profession. Retired locksmiths may also be appointed, but must have at least five years of experience prior to retirement. Three members of the board must be members of the public who are not locksmiths, not a spouse, parent, child, or sibling of a locksmith, and do not have a direct or indirect financial interest, except as a consumer, in the locksmith profession.
     (4) Except as provided in this subsection, the term of each member is four years. Members may not serve more than two consecutive four-year terms or serve more than eleven years on the board. Of the initial members, one is appointed for a one-year term, two are appointed for a two-year term, two are appointed to a three-year term, and the remaining are appointed for four-year terms. Thereafter, members are appointed for four-year terms. To ensure that the board may continue to act, a member whose term expires continues to serve until his or her replacement is appointed. In the case of any vacancy on the board, the governor shall appoint a new member to serve out the term of the person whose position has become vacant.
     (5) The board shall elect one of its members to serve as chair.
     (6) The board shall meet at least quarterly in accordance with a schedule established by the board.
     (7) The board shall:
     (a) Establish the qualifications for licensing; and
     (b) Conduct proceedings for denying applications, suspending or revoking licenses or registrations, and imposing civil penalties or other remedies.
     (8) The members of the board are entitled to compensation for each day spent conducting official business and to reimbursement for travel in accordance with RCW 43.03.050, 43.03.060 and 43.03.240.

NEW SECTION.  Sec. 6   DIRECTOR'S AUTHORITY. The director may:
     (1) Adopt, amend, and rescind rules approved by the board, as necessary to carry out this chapter;
     (2) Administer licensing examinations approved by the board;
     (3) Adopt standards of professional conduct, practice, and ethics, as approved by the board; and
     (4) Adopt fees as provided in RCW 43.24.086.

NEW SECTION.  Sec. 7   QUALIFICATIONS FOR LICENSING. In order to qualify to be licensed as a locksmith, an applicant must submit the following to the department:
     (1) An application for development by the department;
     (2) Proof that the applicant is at least eighteen years of age;
     (3) Proof that the applicant has complied with insurance and bonding requirements, as adopted by the board;
     (4) Evidence of successful passage of the written examination as required in section 8 of this act;
     (5) The fee in the amount set by the director; and
     (6) Other qualifications, as established by the board.

NEW SECTION.  Sec. 8   WRITTEN EXAMINATION. Applicants for licensure must pass a written examination that is psychometrically valid, reliable, and legally defensible by the state. The examination is to be developed, maintained, and administered by the department. The board shall recommend to the director whether to use an examination prepared by a national entity. If an examination prepared by a national entity is used, a section specific to Washington must be developed by the department and included in the examination.

NEW SECTION.  Sec. 9   RENEWAL. Licenses are issued for a term of five years and expire on the applicant's fifth birthday following issuance of the license.

NEW SECTION.  Sec. 10   CONTINUING EDUCATION REQUIREMENTS. (1) The board shall adopt rules establishing continuing education requirements for locksmiths. The board may not require a locksmith to complete more than eight hours of continuing education per year.
     (2) The board shall approve continuing education programs that directly contribute to the competency of locksmiths.
     (3) The board may adopt rules establishing grounds for obtaining a waiver of continuing education requirements due to military service, retirement, disability, absence from the state, inactive status, or extreme hardship.

NEW SECTION.  Sec. 11   SUSPENSION OF LICENSE. (1) The director shall immediately suspend the license of a person who has been certified pursuant to RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a child support order. If the person has continued to meet all other requirements for a license under this chapter during the suspension, reissuance of the license is automatic upon the board's receipt of a release issued by the department of social and health services stating that the licensee is in compliance with the child support order. The procedure in RCW 74.20A.320 is the exclusive administrative remedy for contesting the establishment of noncompliance with a child support order, and suspension of a license under this subsection, and satisfies the requirements of RCW 34.05.422.
     (2) The director, with the assistance of the board, shall establish by rule under what circumstances a locksmith license may be suspended or revoked. These circumstances must be based upon accepted industry standards and the board's cumulative experience.
     (3) The board, through the director, shall suspend the certificate of licensure of any person who has been certified by a lending agency and reported to the board for nonpayment or default on a federally or state-guaranteed educational loan or service-conditional scholarship. Before the suspension, the agency must provide the person an opportunity for a brief adjudicative proceeding under RCW 34.05.485 through 34.05.494 and issue a finding of nonpayment or default on a federally or state-guaranteed educational loan or service-conditional scholarship. The person's certificate of licensure may not be reissued until the person provides the board a written release issued by the lending agency stating that the person is making payments on the loan in accordance with a repayment agreement approved by the lending agency. If the person has continued to meet all other requirements for certification of licensure during the suspension, reinstatement is automatic upon receipt of the notice and payment of any reinstatement fee the director may impose.

NEW SECTION.  Sec. 12   FINGERPRINT-BASED BACKGROUND CHECK. The department shall require applicants for a locksmith license and those renewing their license to complete a fingerprint-based background check through the Washington state patrol criminal identification system and through the federal bureau of investigation. The applicant is required to pay the current federal and state fees for fingerprint-based criminal history background checks. The applicant shall submit the fingerprints and required fees for the background checks to the department for submission to the Washington state patrol. The department may consider the recent issuance of a license that required a fingerprint-based national criminal information background check, in order to accelerate the registration process.

NEW SECTION.  Sec. 13   (1) All licensed locksmiths shall display an identification badge indicating that he or she is a licensed locksmith. The board shall specify the size and content of the identification badge. The identification badge must include a photograph of the licensee.
     (2) An owner of a locksmith business must display all locksmith licenses in a location that is easily readable by the general public.
     (3) A licensee shall display his or her license number on all advertising.

NEW SECTION.  Sec. 14   The uniform regulation of business and professions act, chapter 18.235 RCW, governs unlicensed practice, issuance and denial of licenses, and the discipline of licensees under this chapter.

Sec. 15   RCW 18.235.020 and 2009 c 412 s 22, 2009 c 370 s 20, and 2009 c 102 s 5 are each reenacted and amended to read as follows:
     (1) This chapter applies only to the director and the boards and commissions having jurisdiction in relation to the businesses and professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.
     (2)(a) The director has authority under this chapter in relation to the following businesses and professions:
     (i) Auctioneers under chapter 18.11 RCW;
     (ii) Bail bond agents and bail bond recovery agents under chapter 18.185 RCW;
     (iii) Camping resorts' operators and salespersons under chapter 19.105 RCW;
     (iv) Commercial telephone solicitors under chapter 19.158 RCW;
     (v) Cosmetologists, barbers, manicurists, and estheticians under chapter 18.16 RCW;
     (vi) Court reporters under chapter 18.145 RCW;
     (vii) Driver training schools and instructors under chapter 46.82 RCW;
     (viii) Employment agencies under chapter 19.31 RCW;
     (ix) For hire vehicle operators under chapter 46.72 RCW;
     (x) Limousines under chapter 46.72A RCW;
     (xi) Notaries public under chapter 42.44 RCW;
     (xii) Private investigators under chapter 18.165 RCW;
     (xiii) Professional boxing, martial arts, and wrestling under chapter 67.08 RCW;
     (xiv) Real estate appraisers under chapter 18.140 RCW;
     (xv) Real estate brokers and salespersons under chapters 18.85 and 18.86 RCW;
     (xvi) Security guards under chapter 18.170 RCW;
     (xvii) Sellers of travel under chapter 19.138 RCW;
     (xviii) Timeshares and timeshare salespersons under chapter 64.36 RCW;
     (xix) Whitewater river outfitters under chapter 79A.60 RCW; ((and))
     (xx) Home inspectors under chapter 18.280 RCW; ((and))
     (xxi) Body artists, body piercers, and tattoo artists, and body art, body piercing, and tattooing shops and businesses, under chapter 18.300 RCW; and
     (xxii) Locksmiths under chapter 18.--- RCW (the new chapter created in section 17 of this act).
     (b) The boards and commissions having authority under this chapter are as follows:
     (i) The state board of registration for architects established in chapter 18.08 RCW;
     (ii) The Washington state collection agency board established in chapter 19.16 RCW;
     (iii) The state board of registration for professional engineers and land surveyors established in chapter 18.43 RCW governing licenses issued under chapters 18.43 and 18.210 RCW;
     (iv) The funeral and cemetery board established in chapter 18.39 RCW governing licenses issued under chapters 18.39 and 68.05 RCW;
     (v) The state board of licensure for landscape architects established in chapter 18.96 RCW; and
     (vi) The state geologist licensing board established in chapter 18.220 RCW.
     (3) In addition to the authority to discipline license holders, the disciplinary authority may grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered under RCW 18.235.110 by the disciplinary authority.

Sec. 16   RCW 43.24.150 and 2009 c 429 s 4, 2009 c 412 s 21, and 2009 c 370 s 19 are each reenacted and amended to read as follows:
     (1) The business and professions account is created in the state treasury. All receipts from business or professional licenses, registrations, certifications, renewals, examinations, or civil penalties assessed and collected by the department from the following chapters must be deposited into the account:
     (a) Chapter 18.11 RCW, auctioneers;
     (b) Chapter 18.16 RCW, cosmetologists, barbers, and manicurists;
     (c) Chapter 18.145 RCW, court reporters;
     (d) Chapter 18.165 RCW, private investigators;
     (e) Chapter 18.170 RCW, security guards;
     (f) Chapter 18.185 RCW, bail bond agents;
     (g) Chapter 18.280 RCW, home inspectors;
     (h) Chapter 19.16 RCW, collection agencies;
     (i) Chapter 19.31 RCW, employment agencies;
     (j) Chapter 19.105 RCW, camping resorts;
     (k) Chapter 19.138 RCW, sellers of travel;
     (l) Chapter 42.44 RCW, notaries public;
     (m) Chapter 64.36 RCW, timeshares;
     (n) Chapter 67.08 RCW, boxing, martial arts, and wrestling; ((and))
     (o) Chapter 18.300 RCW, body art, body piercing, and tattooing; and
     (p) Chapter 18.--- RCW (the new chapter created in section 17 of this act), locksmiths.
     Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for expenses incurred in carrying out these business and professions licensing activities of the department. Any residue in the account shall be accumulated and shall not revert to the general fund at the end of the biennium.
     (2) The director shall biennially prepare a budget request based on the anticipated costs of administering the business and professions licensing activities listed in subsection (1) of this section, which shall include the estimated income from these business and professions fees.

NEW SECTION.  Sec. 17   Sections 1 through 14 of this act constitute a new chapter in Title 18 RCW.

NEW SECTION.  Sec. 18   This act takes effect July 1, 2011.