HB0149

HOUSE BILL 149

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Thomas A. Anderson

AN ACT

RELATING TO LICENSURE; ENACTING THE LOCKSMITH LICENSING ACT; REQUIRING LICENSURE OF LOCKSMITHS AND LOCKSMITH BUSINESSES; REQUIRING REGISTRATION OF LOCKSMITH EMPLOYEES AND APPRENTICES; MAKING EXCEPTIONS; CREATING A BOARD; PROVIDING POWERS AND DUTIES; PRESCRIBING FEES; REQUIRING BONDS AND INSURANCE; CREATING A FUND; PROHIBITING CERTAIN ACTS; PRESCRIBING PENALTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. SHORT TITLE.--This act may be cited as the "Locksmith Licensing Act".

SECTION 2. FINDINGS AND PURPOSE.--

A. The legislature finds that it will benefit and protect the residents of the state to require the licensing of locksmiths and locksmith businesses and to prohibit the use of the designation "locksmith" by unlicensed persons.

B. The purpose of the Locksmith Licensing Act is to provide uniform procedures and qualifications for licensing and regulation of locksmiths and to protect the safety and security of persons and property by assuring that persons offering locksmith services are trained and qualified to perform those services.

SECTION 3. DEFINITIONS.--As used in the Locksmith Licensing Act:

A. "board" means the locksmith licensing board;

B. "branch office" means any location other than the principal place of business of a locksmith business;

C. "change key" means a key planed and cut to operate a specific lock or a group of specific locks that all have the same combination of tumblers, pins or wafers;

D. "code book" means a compilation, in any form, of key codes;

E. "department" means the regulation and licensing department;

F. "fund" means the locksmith licensing fund;

G. "key blank" means a key that has not been altered or cut and does not include depth keys;

H. "key machine" means a tool whose only capability is to manufacture a new key by using an existing key as a guide, including any of the following:

(1) a standard key duplication machine that is limited to duplication of a metallic key from an existing metallic key, standard single- or double-sided key or plastic credit-card-type emergency key;

(2) a high-security key machine that is capable of duplicating restricted keys, including sidewinder and laser-cut style of key machines; and

(3) a transponder cloning or reprogramming machine that transfers electronic codes and signals and successive technology to keys, fobs and door and ignition operating devices;

I. "lock" means any mechanical, electromechanical, electronic or electromagnetic device or similar device, including any peripheral hardware, that is designed to control access from one area to another or that is designed to control the use of a locked object, including a safe, strongbox, safe deposit box, vault or similar object;

J. "lock picking tool" means any tool or combination of tools that is designed by the manufacturer of the tool or intended by the user to be used to open a lock by means other than that which is intended by the manufacturer of the lock for normal operation;

K. "locksmith" means a natural person who engages, directly or indirectly and as a primary or secondary object, in the business of offering locksmith services;

L. "locksmith services" means:

(1) repairing, rebuilding, repinning, recombinating, servicing, adjusting or installing a lock, safe or vault;

(2) operating a lock, safe, strongbox, safe deposit box, vault or similar object by means other than those intended by the manufacturer for normal operation; or

(3) rekeying, installing, repairing, opening or modifying locks, including electronic cloning of transponder keys and any other electronic programming of automotive keys and electronic operating devices such as key fobs, door and ignition key devices and successive electronic and other high-security key technology;

M. "locksmith tool" means:

(1) any tool that is designed by the manufacturer of the tool or intended by the user to be used to open, bypass, alter, rekey, service or repair a lock;

(2) any tool that is designed by the manufacturer of the tool or intended by the user to be used to open a safe, strongbox, safe deposit box, vault or similar object; or

(3) any burglar tool designed or commonly used for burglary as provided in Section 30-16-5 NMSA 1978;

N. "manipulation key" means a key other than a change key or master key that can be viably positioned or manipulated in a keyway to operate a lock and includes a wiggle key;

O. "master key" means a key planed and cut to operate all locks in a series or group of locks, each lock having its own change key and each lock constructed as an act of the series or group for operation with the master key, including a submaster key, a grand master key, a great grand master key, an emergency key, a maid's master key, an overriding key or any other similar key;

P. "safe opening tool" means any tool that is designed by the manufacturer of the tool or intended by the user to be used to open a safe, strongbox, safe deposit box, vault or similar object by means other than that which is intended by the manufacturer for normal operation;

Q. "try-out key" means a manipulation key, which may be one of a set of similar keys, used for a specific series, keyway or brand of lock; and

R. "vehicle opening tool" means a tool that is designed by the manufacturer of the tool or intended by the user to be used to open a motor vehicle by means other than that which is intended by the manufacturer of the vehicle.

SECTION 4. LICENSURE OR REGISTRATION REQUIRED--CURRENT LOCKSMITHS AND LOCKSMITH EMPLOYEES OR APPRENTICES GRANDFATHERED--APPLICABILITY--EXCEPTIONS.--

A. Except as otherwise provided in this section, a person shall not engage in or make any representation as being a locksmith or as offering locksmith services without first being licensed as a locksmith or registered as a locksmith employee or apprentice. Unless licensed as a locksmith or registered as a locksmith employee or apprentice, a person shall not:

(1) except for locksmith employees or apprentices working under the supervision of a locksmith, provide locksmith services;

(2) use the title or make a representation as being a licensed locksmith or a registered locksmith employee or apprentice or use any other title, abbreviation, letters, figures, signs or devices that indicate that the person is licensed or registered to offer locksmith services; or

(3) advertise, hold out to the public or represent in any manner that the person is authorized to provide locksmith services.

B. The Locksmith Licensing Act does not apply to a person whose activities are limited to making a duplicate key from an existing key using a key blank.

C. Nothing in the Locksmith Licensing Act shall be construed to prevent qualified members of other recognized professions and occupations that are licensed, certified or registered under New Mexico law or rule from rendering services within the scope of their license, certificate or registration; provided that they do not represent themselves as holding a locksmith license or registration. Nothing in the Locksmith Licensing Act shall be construed to prevent law enforcement personnel from rendering services within the scope of their official duties. The following persons are expressly exempted from the provisions of the Locksmith Licensing Act:

(1) an individual property owner personally installing locks on the owner's residence or other building owned by the property owner;

(2) a property owner, or the owner's agent, maintaining a file of key cutting data for a master key system for the owner's property;

(3) retail stores or catalog sales that sell locks, safes, strongboxes, vaults or similar objects and do not offer locksmith services or sell locksmith tools;

(4) locksmith trade publications or equipment manufacturers or distributors not providing direct locksmith services to the public;

(5) contractors licensed in New Mexico who provide direct sales or installation of lock hardware, but who derive less than twenty-five percent of their gross annual revenue from such business;

(6) architects and engineers not providing direct sales, adjustment or installation of locks;

(7) new car dealers cutting keys by code for the products of their affiliated new car manufacturer;

(8) tow truck operators opening vehicles for the sole purpose of towing; and

(9) federal, state, local or tribal law enforcement agents or fire and rescue personnel performing emergency openings in their official line of duty when a natural person's life is at risk.

D. Nothing in the Locksmith Licensing Act prevents a current or former locksmith, the agent of an incapacitated locksmith or the personal representative of the estate of a deceased locksmith from transferring locksmith tools and supplies by sale or gift to anyone licensed pursuant to the Locksmith Licensing Act or to anyone exempted from the provisions of that act.

E. A person who is offering locksmith services as a locksmith on the effective date of the Locksmith Licensing Act but who does not meet the requirements for licensure as a locksmith may continue to provide locksmith services until July 1, 2013 if the person:

(1) owns a locksmith business or is employed as a locksmith; and

(2) is actively seeking the educational requirements for licensure under the Locksmith Licensing Act.

F. A person who provides locksmith services as an employee or apprentice of a locksmith on the effective date of the Locksmith Licensing Act but who does not meet the requirements for registration as a locksmith employee or apprentice may continue to provide locksmith services until January 1, 2013 if the person is actively seeking registration under the Locksmith Licensing Act.

SECTION 5. LOCKSMITH LICENSING BOARD--CREATED--MEMBERS--

TERMS.--

A. The "locksmith licensing board" is created. The board is administratively attached to the department. The board consists of five members appointed by the governor for staggered terms of three years and appointed in such a manner that the term of one member expires on December 31, 2013, the terms of two members expire on December 31, 2014 and the terms of two members expire on December 31, 2015. Thereafter, members shall be appointed for terms of three years or less in such a manner that the terms of not more than two members expire on December 31 of each year. A vacancy on the board shall be filled by appointment by the governor for the unexpired term. A board member may serve consecutive terms.

B. All members of the board shall be residents of the state. No more than two members shall be appointed from the same congressional district. Except for the initial members of the board, three members shall be licensed locksmiths and two members shall be chosen to represent the public and shall not have been licensed as locksmiths or have a significant financial interest, direct or indirect, in the occupation regulated. The locksmith members of the initial board shall have provided locksmith services in New Mexico for at least five years.

C. The board shall meet and organize within sixty days of its appointment and shall elect a chair and a vice chair. A member who misses three consecutive regularly scheduled meetings is deemed to have vacated the position, and the board shall request the governor to appoint a replacement. Members of the board are entitled to per diem and mileage as provided in the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance.

SECTION 6. BOARD POWERS AND DUTIES.--

A. The board shall:

(1) administer and enforce the provisions of the Locksmith Licensing Act and investigate allegations of violations of that act;

(2) adopt and promulgate rules to carry out the provisions of the Locksmith Licensing Act, including rules relating to professional conduct and ethical standards of practice; standards of performance; examination and licensure; continuing education requirements; and application, renewal and late fees;

(3) require a licensee, as a condition of license renewal, to meet continuing education requirements as provided in the Locksmith Licensing Act;

(4) require all license and registration applicants to submit to criminal background checks;

(5) maintain official rosters showing the name, address and license or registration number of each licensee and registrant;

(6) keep records and minutes of its proceedings; and

(7) enter into an agreement with the department for administrative services to be provided by the department to the board's satisfaction; provided that the board shall confirm actions taken by the department in the board's name at the next meeting of the board.

B. The board may:

(1) adopt a common seal for use by locksmiths;

(2) issue, deny, suspend, revoke or refuse to renew a locksmith license or registration pursuant to the Locksmith Licensing Act and the Uniform Licensing Act;

(3) discipline a licensee or registrant as provided in the Uniform Licensing Act and rules of the board;

(4) work with the apprenticeship council to establish locksmith apprenticeship programs; and

(5) do all things reasonable and necessary to carry out the provisions of the Locksmith Licensing Act.

SECTION 7. LOCKSMITHS--REQUIREMENTS FOR LICENSURE.--

A. Each applicant for licensure as a locksmith shall apply to the board on a form provided by the board. Except as otherwise provided in the Locksmith Licensing Act, each applicant shall take and pass an examination approved by the board. Each applicant shall pay the cost of the required criminal background check. Each application shall include two sets of color photographs of acceptable quality for identification. One set of photographs shall be kept with the application and one set of photographs shall be used for the license and identification card.

B. The board shall grant a locksmith license to a person who:

(1) is at least eighteen years of age;

(2) is of good moral character;

(3) has not been convicted of a felony, an offense involving dishonesty or an offense involving an intentional violent act or the illegal use or possession of drugs or deadly weapons and who has not otherwise violated ethical standards as defined by the board;

(4) has not had a prior locksmith license denied, suspended or revoked by the board or any other licensing agency, except as the board may provide;

(5) has completed a course of study approved by the board or has at least three years' experience as a locksmith providing actual locksmith services, which experience has been acquired within the five years next preceding the filing of the application with the board; provided that years of qualifying experience and the precise nature of that experience shall be substantiated by written certification from employers and shall be subject to independent verification by the board as it deems warranted; and provided further that the burden of proving necessary experience is on the applicant;

(6) has passed the examination required by the board or holds a valid locksmith license issued in another jurisdiction having licensure requirements that are equal to or exceed requirements in New Mexico, as determined by the board;

(7) has provided proof of United States citizenship and residency or proof of lawful presence in the United States;

(8) provides the required number of sets of fingerprints on standard cards and the cost of performing a background check;

(9) has submitted proof of surety and general liability insurance required by the Locksmith Licensing Act;

(10) has paid the required fees; and

(11) has met all other requirements of the board.

C. The board may establish categories of locksmith licensure, such as general locksmith, safe and vault mechanic and motor vehicle locksmith, that may have different education, examination and continuing education requirements and may have differential licensing fees for categories; provided that the fees do not exceed the locksmith licensing and renewal fees provided by law.

D. The board may require a personal interview with an applicant to evaluate that person's qualifications for a license.

SECTION 8. LICENSE WITHOUT EXAMINATION.--

A. If a person applies for licensure within one year after the effective date of the Locksmith Licensing Act and that person has successfully completed at least five years of full-time, diversified experience as a locksmith, that person may be issued a license without examination. Licensure pursuant to this subsection is subject to the board's discretionary review of the experience qualification.

B. The board may accept, in lieu of examination, satisfactory evidence of licensure in another state where the qualifications are equal to or exceed those required by the Locksmith Licensing Act and rules adopted in accordance with that act; provided that the applicant holds a current license in the other jurisdiction and has complied with all other requirements of that act.

SECTION 9. LOCKSMITH BUSINESS--REQUIREMENTS FOR LICENSURE.--

A. The board shall issue a license for a locksmith business to a person that files a completed application on the form provided by the board, accompanied by the required fees, and that submits satisfactory evidence that:

(1) if an individual, the applicant has met the requirements of Section 7 of the Locksmith Licensing Act; or

(2) if a legal business entity, the owners, officers or directors of the business, either singly or collectively:

(a) are of good moral character;

(b) have not been convicted of a felony offense or an offense involving intentional violent acts or the illegal use or possession of drugs or deadly weapons and have not been found to have violated professional ethical standards;

(c) have not had a prior locksmith license denied, suspended or revoked by the board or any other licensing agency, except as the board may provide;

(d) are United States citizens and residents or are lawfully present in the United States;

(e) have provided proof of a valid business license in the municipality or county in which each place of business of the business is located;

(f) have submitted proof of surety and fidelity and general liability insurance required by the Locksmith Licensing Act;

(g) have an owner or manager who is a locksmith and who manages the daily operations of the locksmith business and supervises any locksmith employees and apprentices;

(h) maintain a physical location in New Mexico where records are maintained and made available for board inspection;

(i) maintain a New Mexico registered agent if the applicant is a locksmith business located outside of New Mexico; and

(j) meet all other applicable requirements of the board.

B. Each owner, officer and director of a locksmith business shall pay the cost of the required criminal background check. An owner, officer or director of a locksmith business who is also a locksmith may use the same criminal background check used for licensure as a locksmith.

C. The application shall include one set of color photographs of each owner, officer and director, which shall remain with the application.

D. The application shall include the names and license or registration numbers of all locksmiths and locksmith employees and apprentices who work for the locksmith business, either as employees or as contractors. The board shall verify that all named locksmiths are properly licensed and all locksmith employees and apprentices are properly registered.

E. The board may require a personal interview with the individual applicant or the owners, officers or directors of a business entity to evaluate the qualifications for licensure.

SECTION 10. LOCKSMITH EMPLOYEES AND APPRENTICES--REQUIREMENTS FOR REGISTRATION.--

A. A locksmith employee or apprentice who performs locksmith services for a locksmith or locksmith business, including an employee who has access to code books, records, diagrams, key codes or other sensitive material pertaining to any proposed or installed master key system, any proposed or installed lock or any safe opening procedure, shall meet qualifications of the board and be registered with the board. The application for registration shall include two sets of color photographs of the locksmith employee or apprentice. One set of color photographs shall remain with the registration file of each applicant, and the second set of color photographs shall be used for the registration and identification card.

B. The board shall register as a locksmith employee or apprentice a person who:

(1) is at least eighteen years of age;

(2) is of good moral character;

(4) has not had a prior locksmith employee or apprentice registration denied, suspended or revoked;

(5) has provided proof of United States citizenship and residency or proof of lawful presence in the United States;

(6) has undergone a criminal background check, at no cost to the board;

(7) has submitted a statement of supervision from the locksmith who is responsible for supervising the applicant;

(8) has provided the name, address and telephone number of the locksmith or locksmith business for whom the applicant is working;

(9) has paid the required fees; and

(10) has met all other requirements of the board.

C. The board may require a personal interview with an applicant to evaluate that person's qualifications for registration.

SECTION 11. LICENSE--REGISTRATION--ISSUANCE--RENEWAL--DENIAL, SUSPENSION OR REVOCATION--DISCIPLINARY ACTIONS-- PENALTIES LEVIED BY BOARD.--

A. Each original license authorizes the holder to use the title and be known as a locksmith or locksmith business from the date of issuance to the next renewal date, unless the license is suspended or revoked.

B. All licenses and registrations expire annually on a date determined by the board and shall be renewed by submitting a completed renewal application, accompanied by the required fees. Licensees and registrants have a thirty-day grace period after expiration of the license or registration in which to complete the renewal application and pay the required fees, including a late fee. A locksmith, locksmith business or locksmith employee or apprentice who has not completed the renewal application and paid the required fees and who continues to work as a locksmith, locksmith business or locksmith employee or apprentice after the grace period is practicing locksmithing without a license or registration and is in violation of the Locksmith Licensing Act.

C. A license shall not be renewed until the licensee submits satisfactory evidence to the board that during the license year, the licensee participated in at least eight hours of continuing education approved by the board. The board shall approve only continuing education that builds upon basic knowledge of locksmithing. The board may make exceptions from the continuing education requirement in emergency or hardship cases.

D. The board may promulgate rules providing for the establishment of an inactive status for licensees temporarily not engaged in locksmithing.

E. The board may deny, suspend, revoke or refuse to renew a license or registration when the licensee or registrant has:

(1) obtained the license or registration by means of fraud, misrepresentation or concealment of material facts;

(2) committed an act of fraud or deceit in professional conduct or been convicted of a felony;

(3) made any representation as being a locksmith or locksmith employee or apprentice prior to being issued a license or registration, except as otherwise provided in the Locksmith Licensing Act;

(4) been found by the board to have aided or abetted an unlicensed or unregistered person in violating the provisions of the Locksmith Licensing Act; or

(5) failed to comply with the provisions of the Locksmith Licensing Act or rules adopted in accordance with that act.

F. In addition to denial, suspension or revocation of or refusal to renew a license or registration, the board may issue reprimands, take other disciplinary actions and impose administrative penalties as provided in the Uniform Licensing Act. An administrative penalty shall not exceed one thousand dollars ($1,000). The penalty shall be deposited to the credit of the current school fund.

SECTION 12. LICENSES AND REGISTRATIONS--DISPLAY--IDENTIFICATION CARDS TO BE SHOWN.--

A. Every locksmith and locksmith business shall display their licenses in a conspicuous place in their places of business, including principal and branch offices. A copy of the registration of each locksmith employee and apprentice shall be kept on file in the principal place of business of the supervising locksmith. If a locksmith or locksmith employee or apprentice works for more than one locksmith business, each locksmith business shall have a copy of the license or registration on display or filed as required by this subsection.

B. The board shall issue an identification card with each locksmith license and locksmith employee or apprentice registration it issues. The identification card shall include the name of the licensee or registrant; a color photograph of the licensee or registrant; the locksmith business for which the licensee or registrant works; the license or registration number issued by the board; and any other information the board deems necessary. Each licensee and registrant shall display this identification card at all times when working. The identification card shall be worn on the outside of the licensee's or registrant's clothing so as to be visible to others.

C. A locksmith or locksmith business shall notify the board immediately in writing of a change in the mailing or contact address of the locksmith or of the locksmith business's licensees or registrants.

D. Failure to notify the board within thirty days of changes required to be reported pursuant to this section or failure to display a license or carry an identification card as required is grounds for suspension or revocation of or refusal to renew a license or registration or for other disciplinary action.

SECTION 13. GENERAL OPERATIONS PROVISIONS OF BUSINESSES--MANAGEMENT--LIABILITY FOR EMPLOYEES' CONDUCT--MAINTENANCE OF RECORDS REQUIRED--REQUIRED AND ALLOWED ACTIVITIES--ALLOWED CATEGORIES OF UNLICENSED EMPLOYEES.--

A. A locksmith business shall not conduct business under a fictitious name until the business has obtained authorization for use of the name from the board. The board shall not authorize the use of a fictitious name that may generate public confusion with the name of a public office or agency or the name of an existing locksmith business.

B. A locksmith business is liable for the conduct of its employees, including the conduct of its locksmith manager and supervising locksmiths. A supervising locksmith is responsible for the tasks performed by a locksmith employee or apprentice under the locksmith's supervision and is subject to discipline for failure to appropriately supervise the performance of the locksmith employee or apprentice.

C. A locksmith business shall maintain records of the qualifications, performance and training of all of its current and former employees as required by the board. The records are subject to inspection by the board upon reasonable notice to the owner or manager.

D. A licensee or registrant shall notify the board in writing within thirty days of each change in the licensee's or registrant's employment by filing an amendment to the licensee's or registrant's application obtained from the board. If a licensee or registrant ceases to be employed by a locksmith business, the licensee or registrant shall notify the board in writing within thirty days from the date the licensee or registrant ceases employment with that business. The licensee or registrant shall return the license or registration and identification card along with the notice to the board.

E. A locksmith business shall notify the board within thirty days of a change in ownership structure or, if a corporation, a change in the membership of the board of directors.

F. Employees of a locksmith business who are engaged exclusively to perform stenographic, typing, word processing, secretarial, receptionist, accounting, bookkeeping, information technology or other business applications or support functions and who do not perform the work of a locksmith or locksmith employee or apprentice and do not have access to code books, records, diagrams, key codes or other sensitive material pertaining to any proposed or installed master key systems, any proposed or installed lock or any safe opening procedure are not required to be licensed or registered pursuant to the Locksmith Licensing Act.

G. A person who is not licensed as a locksmith shall not be employed to perform the duties required of managers of locksmith businesses.

SECTION 14. IDENTIFICATION REQUIRED BEFORE OPENING VEHICLES OR PROPERTY.--A licensee or registrant shall not open any lock, safe, strongbox, safe deposit box, vault, vehicle or other personal property, whether or not a fee is charged, without first obtaining personal identification from the person requesting the service. Personal identification may include personal knowledge of the person; a driver's license or other photographic identification that includes an address and a telephone number; personal identification from a reliable source; or a description of specific or unusual items that may be found upon entry. Such identification and information shall be recorded on a work order or invoice and shall be made available to a law enforcement officer with a properly executed court order at any reasonable time during normal business hours.

SECTION 15. SURETY BOND OR EMPLOYEE DISHONESTY BOND--GENERAL LIABILITY INSURANCE--REQUIRED.--

A. Every locksmith business and every owner, officer, director and employee of the locksmith business throughout the entire term of their ownership or employment shall be covered by an employee dishonesty bond insuring consumers against loss of money or other personal property. The minimum amount of the bond shall be fifty thousand dollars ($50,000) for the locksmith business and fifty thousand dollars ($50,000) for each owner, officer, director or employee of the locksmith business and shall be executed and acknowledged by a corporation that is licensed by the superintendent of insurance to transact the business of fidelity and surety insurance. The bonds shall be in a form acceptable to the board and shall be filed in the board's office.

B. No action shall be brought upon any bond or insurance coverage required pursuant to this section after the expiration of three years from the accrual of the cause of action.

C. Upon any recovery in an action on a bond required pursuant to this section, the licensee shall file a new bond. Failure to file a new bond within ten days of the recovery on a bond or within ten days after notification by the board that a new bond is required constitutes sufficient grounds for suspension of the locksmith business's license.

D. Every locksmith business shall maintain a general liability certificate of insurance in an amount required by the board.

E. For the purposes of this section, "employee" means any locksmith employed by the locksmith business, any registered locksmith employee and apprentice and any other person in the employ of the locksmith business who is not licensed or registered but who has access to locksmith tools, safe opening tools, code books, records, diagrams, key codes or other sensitive material pertaining to any proposed or installed master key system, any proposed or installed lock or any safe opening procedure.

SECTION 16. LICENSE FEES.--The board may provide by rule for the assessment of the following fees in amounts determined by the board not to exceed the amounts provided in this section:

A. original licensure application fee. . . $400.00;

B. original registration application fee. .$150.00;

C. renewal license fee. . . . . . . . . . .$400.00;

D. renewal registration fee. . . . . . . . $150.00;

E. certified copies of license or registration for display at multiple locations, per copy. . . . . . . . $ 25.00;

F. identification card replacement fee. . .$ 25.00;

G. late fee for licensure . . . . . . . . .$200.00; and

H. late fee for registration. . . . . . . .$ 75.00.

SECTION 17. LOCKSMITH LICENSING FUND.--The "locksmith licensing fund" is created in the state treasury as a nonreverting fund. The fund consists of appropriations, license and other fees received pursuant to the Locksmith Licensing Act, income from investment of the fund and any grants and donations received by the board. The fund shall be administered by the board. Money in the fund is subject to appropriation by the legislature to the board to carry out the purposes of the Locksmith Licensing Act. Payments from the fund shall be by warrant signed by the secretary of finance and administration pursuant to vouchers signed by the board's administrative services staff from the department as the authorized representative of the chair.

SECTION 18. PROHIBITED ACTS--PENALTIES.--

A. Except as otherwise provided in the Locksmith Licensing Act, a person who is not licensed under that act shall not possess, use, sell, offer to sell or give any locksmith tools, lock picking tools, safe opening tools, vehicle opening tools, code books, key machines, manipulation keys or try-out keys to a person not licensed pursuant to that act.

B. A person who is not licensed under the Locksmith Licensing Act shall not design, make, manufacture or install any master key or any system of change keys and master keys.

C. A person shall not engage in or make a representation as engaging in the business of locksmithing in New Mexico without having a license issued pursuant to the Locksmith Licensing Act and without having appropriate employees licensed or registered in accordance with that act.

D. A person who is not licensed or registered pursuant to the Locksmith Licensing Act shall not provide any locksmith services in violation of that act or rules adopted in accordance with that act.

E. A locksmith shall not participate in a joint venture to provide equipment or services that require licensing pursuant to the Locksmith Licensing Act unless all parties to the joint venture are licensed in accordance with that act.

F. A locksmith shall not subcontract the provision of equipment or services requiring a license pursuant to the Locksmith Licensing Act to any unlicensed person.

G. A locksmith or locksmith business shall not employ a person required to be licensed or registered if that person is not licensed or registered. A locksmith business shall not retain a licensed locksmith or registered locksmith employee or apprentice who is not of good moral character or who has been convicted of a property-related crime.

H. A person who violates the provisions of this section or who conspires with another person to violate the provisions of this section is guilty of a misdemeanor and shall be sentenced pursuant to Section 31-19-1 NMSA 1978.

I. In addition to criminal penalties, a licensee or registrant who is convicted of violating this section shall have the licensee's or registrant's license or registration revoked.

SECTION 19. TERMINATION OF AGENCY LIFE--DELAYED REPEAL.--The locksmith licensing board is terminated on July 1, 2017 pursuant to the Sunset Act. The board shall continue to operate according to the provisions of the Locksmith Licensing Act until July 1, 2018. Effective July 1, 2018, the Locksmith Licensing Act is repealed.

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