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Texas MI (Security) Alarm System
Contractor Exam QUESTIONS AND
DETAILED SOLUTIONS
Texas MI (Security) Alarm System Contractor Exam, also known as the Texas Security Systems
Contractor exam administered by the Texas Department of Public Safety (DPS) – Private Security Bureau.
Each question includes a verified answer and a summarized rationale based on Texas Occupations Code
Chapter 1702, Texas Administrative Code Chapter 35, NFPA 72, NEC (NFPA 70), and industry standards.
Note on Exam Coverage: The following questions are relevant to the licensing requirements for Alarm
Systems Contractor (Company License) and Alarm Systems Installer (Individual License) in Texas.
Topics include: Texas Private Security Act (Chapter 1702), DPS Administrative Rules (TAC Title 37,
Chapter 35), NFPA 72 (Fire Alarm and Signaling), NEC Article 725 (Low-Voltage Circuits), Installation
Standards, Monitoring Contracts, Exemptions, Background Checks, Insurance Requirements, and False
Alarm Prevention.
Domain 1: Texas Licensing Law & Regulatory Authority (Chapter 1702)
1. A business owner installs security cameras inside their own retail store using their own employees.
Under Texas law, does this activity require a security alarm contractor license?
A) Yes, because cameras are now a separate license category.
B) No, because the owner is installing the system on their own property for their own protection.
C) Yes, because any installation of electronic surveillance requires a license.
D) No, as long as the cameras are wireless.
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Correct Answer: B. Chapter 1702.328 exempts a person who owns and installs a system on their own
property or for their personal property located elsewhere .
2. A general contractor is building a new office complex. The contract requires them to install the wiring
for the security system, but a licensed alarm company will certify the installation. Is the general
contractor exempt from licensing?
A) Yes, as long as the licensed alarm company assumes full responsibility for the installation.
B) No, general contractors must hold a security license to touch any alarm wiring.
C) Yes, only if the building is residential.
D) No, unless the contractor has an electrical license.
Correct Answer: A. TAC 1702.328 allows building contractors to install wiring if a licensed company
inspects, certifies, and assumes full responsibility for the installation .
3. Which regulatory body in Texas is directly responsible for issuing licenses to alarm systems companies
and investigating complaints against them?
A) Texas Department of Insurance (TDI).
B) Texas Private Security Board (TPSB) and the Department of Public Safety (DPS).
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C) Texas Commission on Environmental Quality (TCEQ).
D) Texas Workforce Commission (TWC).
Correct Answer: B. The Private Security Act places the Texas Department of Public Safety and the Texas
Private Security Board in charge of licensing and regulating security contractors .
4. An online retailer sells alarm system components (motion sensors, control panels) via a website and
ships them to Texas customers. The retailer does not provide installation services. Does this retailer
need a Texas alarm company license?
A) Yes, selling any security component requires a license.
B) No, the e-commerce, over-the-counter, or mail-order exemption applies.
C) Yes, but only if the components cost more than $500.
D) No, only if they ship via USPS.
*Correct Answer: B. Chapter 1702.328 specifically exempts persons who sell exclusively by e-commerce,
mail order, or over-the-counter transactions and do not perform installation .*
5. The Texas legislature recently created a new license category for camera systems. According to SB
1400, a "camera systems company" is defined separately from an "alarm systems company" because:
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A) Cameras require a higher insurance premium.
B) Technology changes required bringing camera installers under the same background and license
requirements.
C) Cameras are considered fire safety devices.
D) Texas is the only state requiring this separation.
Correct Answer: B. SB 1400 clarified that due to changing technology, camera installation companies
must comply with the same background, insurance, and license requirements as alarm companies .
6. An individual applies for an alarm systems installer license but has been charged with a Class A
misdemeanor (currently pending). According to Section 1702.113, the DPS may:
A) Issue the license anyway because it is not a felony.
B) Deny the license based on being charged with a disqualifying offense.
C) Issue a provisional license until the trial is over.
D) Only deny the license if the individual is convicted.
Correct Answer: B. The applicant is prohibited from holding a license if they are currently charged with a
Class A or B misdemeanor or felony determined to be disqualifying by PSB rule .
Texas MI (Security) Alarm System
Contractor Exam QUESTIONS AND
DETAILED SOLUTIONS
Texas MI (Security) Alarm System Contractor Exam, also known as the Texas Security Systems
Contractor exam administered by the Texas Department of Public Safety (DPS) – Private Security Bureau.
Each question includes a verified answer and a summarized rationale based on Texas Occupations Code
Chapter 1702, Texas Administrative Code Chapter 35, NFPA 72, NEC (NFPA 70), and industry standards.
Note on Exam Coverage: The following questions are relevant to the licensing requirements for Alarm
Systems Contractor (Company License) and Alarm Systems Installer (Individual License) in Texas.
Topics include: Texas Private Security Act (Chapter 1702), DPS Administrative Rules (TAC Title 37,
Chapter 35), NFPA 72 (Fire Alarm and Signaling), NEC Article 725 (Low-Voltage Circuits), Installation
Standards, Monitoring Contracts, Exemptions, Background Checks, Insurance Requirements, and False
Alarm Prevention.
Domain 1: Texas Licensing Law & Regulatory Authority (Chapter 1702)
1. A business owner installs security cameras inside their own retail store using their own employees.
Under Texas law, does this activity require a security alarm contractor license?
A) Yes, because cameras are now a separate license category.
B) No, because the owner is installing the system on their own property for their own protection.
C) Yes, because any installation of electronic surveillance requires a license.
D) No, as long as the cameras are wireless.
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Correct Answer: B. Chapter 1702.328 exempts a person who owns and installs a system on their own
property or for their personal property located elsewhere .
2. A general contractor is building a new office complex. The contract requires them to install the wiring
for the security system, but a licensed alarm company will certify the installation. Is the general
contractor exempt from licensing?
A) Yes, as long as the licensed alarm company assumes full responsibility for the installation.
B) No, general contractors must hold a security license to touch any alarm wiring.
C) Yes, only if the building is residential.
D) No, unless the contractor has an electrical license.
Correct Answer: A. TAC 1702.328 allows building contractors to install wiring if a licensed company
inspects, certifies, and assumes full responsibility for the installation .
3. Which regulatory body in Texas is directly responsible for issuing licenses to alarm systems companies
and investigating complaints against them?
A) Texas Department of Insurance (TDI).
B) Texas Private Security Board (TPSB) and the Department of Public Safety (DPS).
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C) Texas Commission on Environmental Quality (TCEQ).
D) Texas Workforce Commission (TWC).
Correct Answer: B. The Private Security Act places the Texas Department of Public Safety and the Texas
Private Security Board in charge of licensing and regulating security contractors .
4. An online retailer sells alarm system components (motion sensors, control panels) via a website and
ships them to Texas customers. The retailer does not provide installation services. Does this retailer
need a Texas alarm company license?
A) Yes, selling any security component requires a license.
B) No, the e-commerce, over-the-counter, or mail-order exemption applies.
C) Yes, but only if the components cost more than $500.
D) No, only if they ship via USPS.
*Correct Answer: B. Chapter 1702.328 specifically exempts persons who sell exclusively by e-commerce,
mail order, or over-the-counter transactions and do not perform installation .*
5. The Texas legislature recently created a new license category for camera systems. According to SB
1400, a "camera systems company" is defined separately from an "alarm systems company" because:
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A) Cameras require a higher insurance premium.
B) Technology changes required bringing camera installers under the same background and license
requirements.
C) Cameras are considered fire safety devices.
D) Texas is the only state requiring this separation.
Correct Answer: B. SB 1400 clarified that due to changing technology, camera installation companies
must comply with the same background, insurance, and license requirements as alarm companies .
6. An individual applies for an alarm systems installer license but has been charged with a Class A
misdemeanor (currently pending). According to Section 1702.113, the DPS may:
A) Issue the license anyway because it is not a felony.
B) Deny the license based on being charged with a disqualifying offense.
C) Issue a provisional license until the trial is over.
D) Only deny the license if the individual is convicted.
Correct Answer: B. The applicant is prohibited from holding a license if they are currently charged with a
Class A or B misdemeanor or felony determined to be disqualifying by PSB rule .
