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Committee OKs industry-friendly bill for security-company licensing disclosures

STATE AGENCIES & GOVT'L AFFAIRS-SENATE · January 28, 2021
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Summary

HB 1051 permits private security and home-security companies to direct consumers to a website or 1-800 number for licensing information rather than reading license details in fast-paced ads; industry witnesses said the change is permissive and intended to reduce advertising burdens.

Senator Gary Stubblefield and Representative John Eubanks presented HB 1051, which updates disclosure practices for private and home-security companies. The bill would allow companies to include a website address or 1-800 number in ads where reading full licensing details would be impractical, and it maintains a requirement that printed materials disclose licensing information.

Senator Garner asked whether there is an existing problem of unlicensed advertising; Angela Delil, manager of government affairs for Cox Communications, testified for the industry that current law already requires disclosure and that the bill is permissive and clarifying rather than creating a new obligation. Delil said the provision could be less restrictive for large providers and smaller providers alike by permitting a website reference instead of spoken license text in rapid advertisements.

Committee members asked whether the change might impose additional costs on small providers who would have to update advertising; Delil said the change is intended to ease burden and provides flexibility.

After brief discussion the committee approved HB 1051 by voice vote.