Bill Text: MI SB0984 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Occupations; security guards; security guard licensing under private security business and security alarm act; remove, and make general revisions. Amends title & secs. 2, 3, 4, 5, 6, 8, 9, 11, 13, 14, 15, 16, 17, 18, 22, 25, 26, 29, 31 & 33 of 1968 PA 330 (MCL 338.1052 et seq.); adds sec. 15a & repeals sec. 19 of 1968 PA 330 (MCL 338.1069). TIE BAR WITH: SB 0983'14, SB 0985'14, SB 0986'14
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2014-12-04 - Referred To Committee On Regulatory Reform [SB0984 Detail]
Download: Michigan-2013-SB0984-Introduced.html
SENATE BILL No. 984
June 11, 2014, Introduced by Senator BOOHER and referred to the Committee on Regulatory Reform.
A bill to amend 1968 PA 330, entitled
"Private security business and security alarm act,"
by amending the title and sections 2, 3, 4, 5, 6, 8, 9, 11, 13, 14,
15, 16, 17, 18, 22, 25, 26, 29, 31, and 33 (MCL 338.1052, 338.1053,
338.1054, 338.1055, 338.1056, 338.1058, 338.1059, 338.1061,
338.1063, 338.1064, 338.1065, 338.1066, 338.1067, 338.1068,
338.1072, 338.1075, 338.1076, 338.1079, 338.1081, and 338.1083),
the title and sections 3, 4, 8, 9, 14, 17, 25, and 29 as amended by
2010 PA 68, section 2 as amended by 2012 PA 581, section 6 as
amended by 2012 PA 419, section 11 as amended by 2004 PA 270,
sections 13, 18, and 31 as amended by 2002 PA 473, and sections 22
and 33 as amended by 2000 PA 411, and by adding section 15a; and to
repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to license and regulate private security guards,
private
security police forces, private security guard agencies,
private college security forces, and security alarm systems
servicing,
installing, operating, and monitoring; to provide
penalties
for violations; to protect the general
public against
unauthorized,
unlicensed, and unethical operations by individuals
persons
engaged in private security activity
or security alarm
systems
sales, installations, service, maintenance, and operations;
to
establish minimum qualifications for individuals as well as
private
agencies engaged in the security business and security
alarm
systems and operations; activities
regulated under this act;
to
impose certain fees; to create certain funds; and to prescribe
certain
powers and duties of certain private
colleges that employ
or engage private college security forces, persons that employ or
engage private security police forces, and certain state
departments, agencies, and officers; and to prescribe remedies and
penalties.
Sec. 2. (1) As used in this act:
(a) "Armed forces" means that term as defined in section 2 of
the veteran right to employment services act, 1994 PA 39, MCL
35.1092.
(b) (a)
"Commission" means the
commission on law enforcement
standards created under section 3 of the commission on law
enforcement standards act, 1965 PA 203, MCL 28.603.
(c) (b)
"Department" means 1 of the following:
(i) In reference to the regulation of security alarm system
contractors, security alarm system agents, or security alarm system
sales, installation, service, maintenance, or operations, the
department
of licensing and regulatory affairs.
, except that in
(ii) In reference to the regulation of private security police
and
private college security forces, department means the
department of state police.
(d) "Good character" means good moral character as defined and
determined under 1974 PA 381, MCL 338.41 to 338.47.
(e) (c)
"Governing board" means a
board of regents, board of
trustees, board of governors, board of control, or other governing
body of an institution of higher education.
(f) (d)
"Licensee" means a person
licensed under this act.
(g) (e)
"Person" means an
individual, limited liability
company, corporation, or other legal entity.
(h) "Principal license holder" means an individual designated
under section 15a.
(i) (f)
"Private college security
force" means a security
force authorized under section 37.
(g)
"Private security guard" means an individual or an
employee
of an employer who offers, for hire, to provide protection
of
property on the premises of another, and includes an employee of
a
private college security force.
(j) (h)
"Private security police force"
means that part of a
business organization or educational institution primarily
responsible for the protection of property on the premises of the
business organization or educational institution, but does not
include a private college security force.
(k) (i)
"Security alarm system"
means a detection device or an
assembly of equipment and devices that is arranged to signal the
presence of a hazard that requires urgent attention and is remotely
monitored by a central monitoring system. Security alarm system
includes any system that can electronically cause an expected
response by a law enforcement agency to a premises by means of the
activation of an audible signal, visible signal, electronic
notification, or video signal, or any combination of these signals,
to a remote monitoring location on or off the premises. Security
alarm system does not include any of the following:
(i) A video signal that is not transmitted over a public
communication system.
(ii) A fire alarm system.
(iii) An alarm system that monitors temperature, humidity, or
other condition that is not directly related to the detection of an
unauthorized intrusion into a premises or an attempted robbery at a
premises.
(iv) A system that is not monitored by a central monitoring
station and does not set off an audible alarm.
(l) (j)
"Security alarm system
agent" means an individual
employed by a security alarm system contractor whose duties include
the altering, installing, maintaining, moving, repairing,
replacing, selling, servicing, monitoring, responding to, or
causing others to respond to a security alarm system.
(m) (k)
"Security alarm system
contractor" means a person that
is engaged in the installation, maintenance, alteration,
monitoring,
or servicing of security alarm systems or who that
responds to a security alarm system. Security alarm system
contractor
does not include a any of
the following:
(i) A business that only sells or manufactures security alarm
systems unless the business services security alarm systems,
installs security alarm systems, monitors or arranges for the
monitoring of a security alarm system, or responds to security
alarm systems at a protected premises.
(ii) A security guard agency that is licensed under article 14A
of the occupational code, 1980 PA 299, MCL 339.1421 to 339.1443,
and whose employees or agents use client-installed equipment or
equipment installed by a security alarm system contractor that is
licensed under this act for the purpose of protecting the personnel
and property of a client of the security guard agency. As used in
this subparagraph:
(A) "Equipment" includes, but is not limited to, access
control equipment; video surveillance and recording equipment;
audio communication equipment; intrusion detection and prevention
equipment; and automated barriers.
(B) "Normal end user functions" includes, but is not limited
to, video and alarm monitoring; retrieving video history for use by
a client, security, or law enforcement; allowing or denying entry
to individuals or vehicles by controlled access equipment;
maintaining databases; or audio communication. Normal end user
functions may be performed on-site or from a remote facility of a
client.
(C) "Use" means only normal end user functions and capability
that is installed or provided by a security alarm system contractor
to a client.
(iii) A security guard agency that is licensed under article 14A
of the occupational code, 1980 PA 299, MCL 339.1421 to 339.1443,
and whose employees or agents respond to burglar, fire, or
supervisory alarms for the purpose of securing the property and
ensuring the safety of individuals in or on that property. As used
in this subparagraph, "respond" may include reviewing alarm
history, resetting the alarm, and, if authorized, performing other
normal end user tasks including bypassing a protected zone if
necessary to reset the alarm system.
(n) (l) "Security
business" means a person engaged in offering,
arranging, or providing 1 or more of the following services:
(i) Security alarm system installation, service, maintenance,
alteration, or monitoring.
(ii) Private security guard.
(ii) (iii) Private
security police.
(2)
All businesses that provide Except
as provided in
subsection (5), a person that provides security alarm systems for
the protection of persons and property and whose employees and
security technicians travel on public property and thoroughfares in
the
pursuit of their duties are is
subject to this act.
(3) A communications common carrier that provides
communications channels under tariffs for the transmission of
signals in connection with an alarm system is not subject to this
act.
(4)
A railroad policeman police
officer who is appointed and
commissioned under the railroad code of 1993, 1993 PA 354, MCL
462.101 to 462.451, is not subject to this act.
(5) A system provider, as defined in section 2 of the security
alarm
systems act, 2012 PA 580, MCL
338.2182, that is registered
has filed a registration statement with the department under the
security alarm systems act, 2012 PA 580, MCL 338.2181 to 338.2187,
is not subject to this act.
Sec.
3. (1) Unless licensed under this act, a sole
proprietorship,
firm, company, partnership, limited liability
company,
or corporation person shall not engage in the business of
a
security alarm system contractor ,
private security guard, or of
providing
a private security police , force or private
college
security
force. , patrol service, or an agency furnishing those
services.
A person ,
firm, company, partnership, limited liability
company,
or corporation shall not advertise
its business to be that
of security alarm system contractor, security alarm system agent,
private
security guard agency, or an agency
furnishing those
services without having first obtained from the department a
license to do so for each office and branch office to be owned,
conducted, managed, or maintained for the conduct of that business.
(2) A person that is subject to this act shall not sell,
install, operate, adjust, arrange for, or contract to provide a
device
which upon activation, that
if activated, either
mechanically, electronically, or by any other means, initiates the
automatic calling or dialing of, or makes a connection directly to,
a telephone assigned to a public service, utility, or police
agency, for the purpose of delivering a recorded message, without
first receiving written permission from that service, utility, or
agency.
(3)
A person who that violates this section is guilty of a
felony punishable by imprisonment for not more than 4 years or a
fine of not more than $1,000.00, or both.
Sec. 4. (1) The department may issue separate licenses to
security alarm system contractors, private college security forces,
and
private security police. ,
and private security guard agencies.
(2)
This section act does
not prevent a private detective or
private investigator licensed under the professional investigator
licensure act, 1965 PA 285, MCL 338.821 to 338.851, from performing
the
services of a an officer
of a private security guard college
security
force or private security police except
that a force.
However,
an officer of a private college security
guard force or
private security police force may not perform the services of a
private detective or private investigator without obtaining a
private detective or private investigator license under that act.
Sec.
5. (1) The department, upon If it receives a proper
application
and upon being is satisfied that the applicant is
qualified,
the department shall issue the an applicant
a license to
conduct
business as an a security alarm system contractor or a
private
security guard or agency for a
period of 2 years from date
of
issuance. Upon the issuance of a license to conduct business as
an
alarm system contractor or a private security guard or agency,
the
applicant shall not be
(2) A person that is licensed under this act as a security
alarm system contractor, private college security force, or private
security police force is not required to obtain any other license
from a municipality or political subdivision of this state to
conduct business as a security alarm system contractor, private
college security force, or private security police force in that
municipality or political subdivision.
Sec.
6. (1) The department shall issue a license to conduct
business
as a security alarm system contractor, or a private
security
guard, force, or private security police ,
or to a private
security
guard business, force if it is satisfied that the
applicant, if the applicant is an individual, or the individual who
is
the sole or principal license holder of the applicant if the
applicant is not an individual, meets all of the following
qualifications:
(a)
Is not less than at least 21 years of age. However, this
subdivision does not apply to an applicant described in subdivision
(g)(v).(f).
(b)
Has a high school education or its equivalent.Graduated
from high school or passed the general education development (GED)
test or another graduate equivalency examination approved by the
department.
(c) If the applicant's license is issued after March 28, 2001,
has not been convicted of a felony.
(d) If the applicant's license was issued on or before March
28, 2001, was not convicted of a felony in the 5-year period
preceding the date of application.
(e) Was not convicted of an offense listed in section 10(1)(c)
in the 5-year period preceding the date of application.
(f)
Has not been dishonorably discharged from a branch of the
United
States military service.
(g)
If the applicant is applying for a private security guard
or
agency license, meets any of the following:
(i) Was engaged in the private security guard or
agency
business
on his or her own account in another state for a period of
at
least 3 years.
(ii) Was engaged in the private security guard or
agency
business
for a period of at least 4 years as an employee of the
holder
of a certificate of authority to conduct a private security
guard
or agency business and has experience reasonably equivalent
to
at least 4 years of full-time guard work in a supervisory
capacity
with rank above that of patrolman.
(iii) Was employed in law enforcement as a certified
police
officer
on a full-time basis for at least 4 years for a city,
county,
or state government or for the United States government.
(iv) Was engaged in the private security guard or agency
business
as an employee or on his or her own account or as a
security
administrator in private business for at least 2 years on
a
full-time basis, and is a graduate with a baccalaureate degree or
its
equivalent in the field of police administration or industrial
security
from an accredited college or university.
(v) While on active duty as a member of the armed
forces,
served
as a military police officer or in an equivalent job
classification
for at least 2 years; was honorably discharged from
that
military service; and has, and provides with his or her
application
an affidavit signed by a commanding officer,
supervisor,
or military superior with direct knowledge of the
applicant's
service that he or she has, entry-level experience in
or
basic knowledge of each of the following:
(A)
Enforcing rules, regulations, and guidelines.
(B)
Providing security and physical protection.
(C)
Area and site security operations.
(D)
Overseeing prisoners and correctional facilities.
(E)
Reconnaissance and surveillance.
(f) If he or she served in the armed forces, was separated
from that service, and provides a form DD214, form DD215, or any
other form satisfactory to the department that demonstrates that he
or she was separated from that service, with an honorable character
of service or under honorable conditions (general) character of
service.
(g) (h)
If the applicant is applying for a
security alarm
system contractor license, has been lawfully engaged in either or
both of the following:
(i) A security alarm system contractor business on his or her
own
account for a period of not less than at least 3 years.
(ii) A security alarm system contractor business for a period
of
not less than at least 4 years as an employee of the holder of a
certificate of authority to conduct a security alarm system
contractor business, and has experience reasonably equivalent to at
least 4 years of full-time work in a supervisory capacity or passes
a written exam administered by the department designed to measure
his or her knowledge and training in security alarm systems.
(h) (i)
Provided Has provided the department the bond or
surety required under section 9.
(i) (j)
Has not been adjudged insane,
unless he or she has
been adjudged restored to sanity by court order.
(j) (k)
Is not subject to any outstanding
warrants for his or
her arrest.
(2)
If a person now doing or seeking to do business in this
state
is applying for a license under this section, the resident
manager
shall comply with the applicable qualifications of this
section.
(3)
As used in this section, "armed forces" means that term as
defined
in section 2 of the veteran right to employment services
act,
1994 PA 39, MCL 35.1092.
Sec.
8. (1) Each An applicant,
if the applicant is an
individual, or the principal license holder of any other applicant,
for
a license under this act shall sign and
verify the an
application .
Each for that license. The application shall contain
at least all of the following:
(a)
The name and principal address where the individual or
business
entityis located in this state.
(b)
The address and location of any branch office of the
business.
(a) The name and address of the applicant's principal place of
business in this state.
(b) If the applicant is not the licensee, the licensee's name
and principal place of business in this state.
(c) The address and location of any branch offices in this
state at which the licensee conducts or will conduct business.
(d) If applicable, the name of the individual designated by
the applicant or licensee as the principal license holder of the
licensee.
(e) (c)
The certificate of incorporation of
the business, if
applicable.
(2) Each applicant for a license, if the applicant is an
individual, or the principal license holder of any other applicant,
shall
submit 2 passport quality photographs of the applicant
himself
or herself with the application. If
the applicant is a
business
entity, the resident manager of the business shall submit
2
passport quality photographs of himself or herself.
(3) This section does not apply to a private college security
force.
Sec.
9. (1) The department , when shall
issue a license to an
applicant when the requirements of this act are met and the
department is satisfied of the good character, competence, and
integrity of the applicant, if the applicant is an individual, or
if
the applicant is a firm, company, partnership, limited liability
company,
or corporation, a person other
than an individual or a
private college or university, of its individual members or
officers, or, if the applicant is a private college or university,
of
its governing board. , shall issue to the applicant a license.
The
issuance of the license is conditioned upon the applicant's
paying
to the department for each license $200.00 if a sole
proprietorship,
or $300.00 if a private security guard firm,
company,
partnership, limited liability company, or corporation, or
$500.00
if a security alarm system contractor, and upon the
applicant's
executing, delivering, and filing with
(2) A license issued under this act is valid for 2 years, but
the department may revoke a license at any time for cause shown.
The department shall prescribe the form of a license certificate.
(3) The department shall not issue a license under this act
unless the applicant pays the department a fee of $500.00 if the
applicant is a security alarm system contractor or, for any other
applicant, 1 of the following fees, as appropriate:
(a) If the applicant is an individual, $200.00.
(b) If the applicant is not an individual, $300.00.
(4) The department shall not issue a license under this act
unless
the applicant provides the department a
bond in the sum
principal
amount of $25,000.00. The bond shall be
conditioned upon
on the faithful and honest conduct of the business by the applicant
and
shall be approved by the department. In lieu of a bond, the an
applicant may furnish a policy of insurance issued by an insurer
authorized
to do business in this state naming that names the
licensee and the state as coinsureds in the amount of $25,000.00
for
property damages, damage, $100,000.00 for injury to or death of
1 person, and $200,000.00 for injuries to or deaths of more than 1
person
arising out of the operation of the licensed activity. The
license
is valid for 2 years but is revocable at all times by the
department
for cause shown. The bonds shall be taken in the name
The bond shall be payable to the department for the benefit of the
people of the state and a person injured by the willful, malicious,
and
wrongful act of the licensee or any of his or her agents or
employees of a licensee may bring an action on the bond or
insurance policy in his or her own name to recover damages suffered
by
reason of the wrongful act. The license certificate shall be in
a
form to be prescribed by the department.
(5) (2)
If a licensee desires licensed security alarm system
contractor
intends to open a 1 or more branch office, he or she
offices, the security alarm system contractor may receive a license
for
that each branch following approval as required in if the
branch
license is approved under section 7 and
payment to the
security
alarm system contractor pays the
department of an
additional
fee of $50.00 for each private security guard branch
office
license and $100.00 for each
security alarm system
contractor branch office license.
(6) (3)
The A licensed security alarm
system contractor shall
post
an additional license issued under
subsection (2) shall be
posted
(5) in a conspicuous place in the branch office, and shall
expire
each additional license
expires on the same date as the
initial license.
(7) (4)
Subject to subsection (5), (8), if
the a license is
denied,
revoked, or suspended for cause, no the department shall
not
refund shall be made of the
license fees or a any part of the
license fees.
(8) (5)
Beginning July 23, 2004, the
department shall issue or
deny
an application for an initial or
renewal license not later
than
within 180 days after the applicant files a completed
application.
Receipt of the An application is considered received
on the date the application is received by any agency or department
of
the this state. of Michigan. If the an application
is considered
incomplete by the department, the department shall notify the
applicant in writing, or make the information electronically
available, within 30 days after receipt of the incomplete
application, describing the deficiency and requesting the
additional
information. The A 180-day period described in this
subsection
is tolled upon notification by from the date the
department notifies the applicant of a deficiency until the date
the requested information is received by the department. The
determination of the completeness of an application does not
operate as an approval of the application for the license and does
not confer eligibility of an applicant determined otherwise
ineligible for issuance of a license.
(9) (6)
If the department fails to issue or
deny a license
within
in the time required by under this
section, the department
shall return the license fee and shall reduce the license fee for
the applicant's next renewal application, if any, by 15%. The
failure
to issue a license within in
the time required under this
section does not allow the department to otherwise delay the
processing
of the an application, and that application, upon on
completion,
shall be placed the
department shall place the
application in sequence with any other completed applications
received at that same time. The department shall not discriminate
against
an applicant in the processing of the an application
based
upon
on the fact that the license fee was refunded or
discounted
under this subsection.
(10) (7)
Beginning October 1, 2005, the
director of the
department shall submit a report by December 1 of each year to the
standing committees and appropriations subcommittees of the senate
and house of representatives concerned with occupational issues.
The director shall include all of the following information in the
report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the
department received and completed within the 180-day time period
described
in subsection (5).(8).
(b) The number of applications denied.
(c) The number of applicants not issued a license within the
180-day time period and the amount of money returned to licensees
and
registrants under subsection (6).(9).
(11) (8)
The fees collected by the
department under this
section shall be deposited into the security business fund created
in
subsection (9).(12).
(12) (9)
The security business fund is
created within in the
state
treasury. The department shall deposit forward all license
fees collected under this act to the state treasurer for deposit
into the fund. The state treasurer may receive money or other
assets from any source for deposit into the fund. The state
treasurer shall direct the investment of the fund. The state
treasurer shall credit to the fund interest and earnings from fund
investments. Money in the fund at the close of the fiscal year
shall remain in the fund and be available for appropriation and
expenditure by the department in subsequent fiscal years. The money
in the fund shall not lapse to the general fund. The department
shall
expend money from the fund, upon on appropriation, only for
enforcement and administration of this act. The department is the
administrator of the fund for auditing purposes.
(13) The department, or the department of state police if
section 29 applies, shall waive an initial license fee required
under this section, or any application processing fee charged by
the department for an initial license, if the applicant is an
individual who served in the armed forces and he or she provides to
the department a form DD214, form DD215, or any other form that is
satisfactory to the department that demonstrates that he or she was
separated from that service with an honorable character of service
or under honorable conditions (general) character of service.
(14) (10)
As used in this section,
"completed application"
means an application that is complete on its face and submitted
with
any applicable licensing fees as well as and any other
information, records, approval, security, or similar item required
by law or rule from a local unit of government, a federal agency,
or
a private entity person but not from another department or
agency
of the this state. of Michigan.
Sec. 11. The department shall not refund a license or
application fee unless a showing is made of mistake, inadvertence,
error in the collection of the fee, or noncompliance with the time
periods
described in section 9(5).9(8).
Sec.
13. (1) Any A licensee
shall report any change in the
name
or location of the agency or of a branch office or subagency
shall
be reported by the a licensee or
branch office to the
department
at least 10 days before the change becomes effective. ,
upon
receipt of which If it
receives a report under this
subsection, the department shall prepare and forward a certificate
showing the change. The licensee shall return the old certificate
within 3 business days after the change.
(2) Failure to notify the department of a change in name or
location under this section may result in license suspension.
Sec.
14. (1) Upon issuing If it
issues a license, the
department
shall issue an identification card to the principal
license
holder, and licensee, if the
licensee is an individual; to
the principal license holder, if the licensee is not an individual;
to
each partner, if the licensee is a partner
in a partnership to
each
partner, partnership; and if the license holder is a
corporation, to each resident officer or manager, but only if
requested by a resident officer or manager.
(2) The department shall prescribe form and contents of the
identification
card shall be prescribed by the department, and the
described in subsection (1), and the department shall recall a card
shall
be recalled by the department if
the license is revoked.
(3)
Only The department shall
only issue 1 identification card
shall
be issued for each person entitled
to receive it. The
licensee is responsible for the maintenance, custody, and control
of the identification card and shall not let, loan, sell, or
otherwise permit unauthorized persons or employees to use it. This
section
does not prevent an agency a
licensee from issuing its own
identification cards to its employees if they are approved as to
form and content by the department. The individual card shall not
bear the seal of the state, and the employee shall be designated as
either
a security alarm system agent, private security police
officer,
or private college security force officer. , security
guard,
or security technician.
(4) The department may suspend a license issued under this act
if the licensee fails to comply with any of the requirements of
this act. Unless a license is required to be revoked for a
violation of this act, the department shall reinstate a suspended
license
upon if the licensee complying complies with
this act and
the
licensee paying pays a $100.00 reinstatement fee.
(5)
Upon If it receives a proper application and for
sufficient reasons shown, the department may issue duplicates of
the original certificate of license or identification card.
Sec. 15. (1) A license issued under the provisions of this act
is
not assignable, and is personal to such the licensee.
(2) A designation of an individual as a licensee's principal
license holder under section 15a is not an assignment of the
license of the licensee under subsection (1).
Sec. 15a. (1) A licensee that is not an individual, or an
applicant that is applying for a license on behalf of a person that
is not an individual, as applicable, shall designate an individual
as the principal license holder of that licensee.
(2) An individual designated as a licensee's principal license
holder is authorized to act on behalf of the licensee for purposes
of this act.
(3) If its principal license holder is no longer authorized to
act in that capacity on the licensee's behalf, or is no longer
available to act in that capacity for any reason, the licensee
shall designate a different individual, who meets the requirements
of section 6, as its principal license holder and shall do all of
the following within 10 days after it makes that designation:
(a) Provide written notice to the department that it has
designated a different individual as its principal license holder.
(b) Provide to the department the name and business address of
the individual, and any other information about the individual
reasonably required by the department.
(c) Return the identification card issued to the former
principal license holder under section 14 to the department.
(4) If a licensee designating a different individual as its
principal license holder does not comply with subsection (3), or
the department does not approve of the designation of that
individual as the licensee's principal license holder,
the department shall notify the licensee of its disapproval. Within
30 days after receiving that notification, the licensee shall
designate another individual under subsection (1) and meet the
requirements of this section for approval of that individual by the
department as its principal license holder.
(5) If a licensee is required to have a principal license
holder under this section, that license is automatically suspended
during any period of time the licensee has not designated a
principal license holder and notified the department of that
designation. However, on request, the department may permit the
license to stay in force for 60 days to allow the licensee to
designate a principal license holder.
Sec. 16. (1) A person shall not manufacture a badge or shield
which
that purports to indicate that the holder is a licensed
security
alarm system contractor , or security alarm system agent,
private
security guard or agency, or any of those persons as
listed,
in section 2. a private
college security officer or private
security police officer, or an officer of a private college
security force or private security police force. A person shall not
display
offer for sale a badge, shield, identification card, or
certificate
of license , by which the that, if worn, or displayed,
or shown to the public by a holder, might mislead the public into
thinking that the holder is a licensed security alarm system
contractor , or security alarm system agent, or private security
guard,
or agency. a private college
security officer or private
security police officer, or an officer of a private college
security force or private security police force.
(2)
A person, firm, company,
partnership, or corporation shall
not distribute an identification card or certificate of license in
this
state except as provided by under
this act.
(3) A person shall not knowingly buy or receive from a source
a
form of spurious identification as an a security alarm system
contractor , or security alarm system agent, or a private security
guard
or agency. a private college
security officer or private
security police officer, or an officer of a private college
security force or private security police force.
(4) A violation of this section is a misdemeanor, and if a law
enforcement officer of this state sees an unauthorized
identification
card or certificate of license, shall be confiscated
by
a law enforcement officer of the state. he or she shall
confiscate it. Each day the violation of this section continues
shall
constitute constitutes a separate offense.
Sec.
17. (1) A licensee may employ as many persons as he or
she
individuals as the licensee considers necessary to assist him
or
her in his or her the
licensee in its work of as a security
alarm system contractor, private security police force, or private
college
security force , or private security guard and in the
conduct
of his or her the
licensee's business. ,
and A licensee is
at
all times during the employment
of an individual is accountable
for
the good conduct in the business of each person so
employed.that individual.
(2)
Employees in the employ of a licensee after March 28, 2001
shall
meet the qualifications outlined in section 6(1)(c), (e),
(j),
and (k), be at least 18 years of age, and have had at least an
eighth
grade education or its equivalent. An employee in the employ
of
a licensee on or before March 28, 2001 shall meet the
qualifications
outlined in section 6(1)(d), (e), (j), and (k), be
at
least 18 years of age, and have had at least an eighth grade
education
or its equivalent. Employees hired by a licensee after
June
21, 2002 shall meet the qualifications outlined in section
6(1)(c),
(e), (j), and (k), be at least 18 years of age, and have
at
least a high school diploma, a GED, or its equivalent.
(2) A licensee shall not employ an individual unless he or she
is at least 18 years of age and meets 1 of the following:
(a) If the individual was hired by the licensee on or before
March 28, 2001, all of the following:
(i) He or she was not convicted of a felony in the 5-year
period preceding the date he or she was hired.
(ii) He or she meets the qualifications described in section
6(e), (i), and (j).
(iii) He or she has at least an eighth-grade education or its
equivalent.
(b) If the individual is hired by the licensee after March 28,
2001 and on or before June 21, 2002, all of the following:
(i) He or she has not been not convicted of a felony.
(ii) He or she meets the qualifications described in section
6(e), (i), and (j).
(iii) He or she has at least an eighth-grade education or its
equivalent.
(c) If the individual is hired by the licensee after June 21,
2002 and on or before the effective date of the amendatory act that
added subdivision (d), all of the following apply:
(i) He or she was not convicted of a felony.
(ii) He or she meets the qualifications described in section
6(b), (e), (i), and (j).
(d) If the individual is hired by the licensee after the
effective date of the amendatory act that added this subdivision,
all of the following apply:
(i) He or she was not convicted of a felony.
(ii) He or she meets the qualifications described in section
6(b), (e), (f), (i), and (j).
(3) A licensee shall keep and maintain in this state adequate
and
complete personnel information on all persons employed by him
or
her. A of its employees. A
licensee shall file a complete
employee
roster in a manner described by the department shall be
filed
with the department by each
licensee on a quarterly basis,
.
The
rosters must be filed with in
a manner determined by the
department, by April 15, July 15, October 15, and January 15 of
each year for the preceding calendar quarter. Failure to submit an
accurate
rosters roster is cause for suspension of the a license.
A
The
department shall not process a renewal
application shall not be
processed
if the department has not received a quarterly roster has
not
been received for each quarter of
the preceding 2-year license
period.
(4)
If a licensee falsely states or represents that a person
an
individual is or has been in his or
her the licensee's employ,
the false statement or representation is sufficient cause for the
revocation of the license.
(5)
A person An individual shall not falsely state or
represent
that he or she is an agent of a licensed security alarm
system
contractor, licensee or an
agent of a private security
police
officer , or
private college security force officer. ,
or
private
security guard. A person An
individual who violates this
subsection is guilty of a misdemeanor punishable by imprisonment
for not more than 93 days or a fine of not more than $500.00, or
both.
Sec.
18. (1) A licensee shall not knowingly employ any person
an
individual who fails to does not meet
the requirements of
section 17.
(2)
The licensee shall cause fingerprints to be taken of all
prospective
employees who are direct providers of the security
business,
which fingerprints shall be submitted to the department
of
state police and the federal bureau of investigation for a state
and
national criminal history background check. The fingerprints
shall
be accompanied by a fingerprint processing fee in the amount
prescribed
by section 3 of 1935 PA 120, MCL 28.273, as well as any
fees
imposed by the federal bureau of investigation. The results of
the
national criminal history background check as returned by the
federal
bureau of investigation to the department of state police
shall
be used by the department to make a fitness determination. A
licensee
shall not employ a person who is a direct provider of the
security
business before submitting fingerprints to the
departmentof
state police.
(3)
The fingerprints required to be taken under subsection (2)
may
be taken by a law enforcement agency or any other person
determined
by the department of state police to be qualified to
take
fingerprints. If a licensee takes the fingerprints, that
licensee
shall obtain training in taking fingerprints from the
department
of state police or a law enforcement agency or other
person
determined qualified by the department of state police.
(4)
A licensee shall request the department of state police to
conduct
a background check of each prospective employee who is a
direct
provider of the security business based upon a name check.
The
licensee shall obtain a complete and signed employment
application
for all individuals for whom a name check is requested
and
conducted. The employment application shall be retained for at
least
1 year from the date of its submission. The department of
state
police shall conduct the background check upon a written,
electronic,
or telephonic request of a licensee accompanied by a
fee
of $15.00. The background check shall be conducted not later
than
3 days after the date a written request is made and not later
than
24 hours after a telephonic or electronic request is made.
Provisional
clearance based on the name check shall allow the
employee
to be employed as a security guard, for a period of time
not
to exceed 90 days, pending final clearance based upon a
fingerprint
check as provided for in subsection (2). If an approval
is
once denied, that individual may not again be employed as a
direct
provider of the security business by the submitting licensee
except
upon receipt of an approved fingerprint clearance. A
licensee
or employee of a licensee who uses a name check or results
of
a name check for purposes other than prospective employment is
guilty
of a misdemeanor punishable by imprisonment for not more
than
93 days, a fine of not more than $1,000.00, or both.
(5)
The department of state police may enter into an agreement
with
a licensee for the payment of fees imposed pursuant to this
act.
(2) Before a licensee makes an offer of employment to an
individual, as a direct provider of the licensee's security
services directly to the licensee's customers, the licensee shall
perform a criminal history check on that individual using ICHAT, or
obtain an equivalent check on that individual from his or her state
or province of residence. If the results of the ICHAT search or the
results of the equivalent check reveal that he or she has been
convicted of a felony or a disqualifying misdemeanor, the licensee
shall not make an offer of employment to, or engage, that
individual to provide security services directly to the licensee's
customers.
(3) Within 180 days after the effective date of the amendatory
act that added this subsection, a licensee shall perform a criminal
history check using ICHAT, or obtain an equivalent check from his
or her state or province of residence, on each individual employed
by the licensee to provide security services directly to the
licensee's customers. If the results of the ICHAT search or the
results of the equivalent check reveal that the individual has been
convicted of a felony or a disqualifying misdemeanor, the licensee
shall not continue to employ that individual.
(4) A licensee may pass along the actual cost of an ICHAT
search, or an equivalent check from an individual's state or
province of residence, under subsection (2) or (3) to the
individual on whom the search is performed.
(5) (6)
Any employee who, upon on demand,
fails to surrender
to the licensee his or her identification card and any other
property issued to him or her for use in connection with his or her
employer's business is guilty of a misdemeanor.
(6) As used in this section:
(a) "Disqualifying misdemeanor" means a misdemeanor described
in section 10(1)(c).
(b) "ICHAT" means the internet criminal history access tool
maintained by the department of state police.
Sec. 22. (1) Every advertisement by a licensee soliciting or
advertising
for business shall contain his or her the business name
and address of the licensee as they appear in the records of the
department.
(2)
A licensee shall, upon On notice from and order of the
department, a licensee shall discontinue any advertising or the use
of any advertisement, seal, or card that, in the opinion of the
department, may tend to mislead the public. Failure to comply with
any
such an order of the department described in this section is
cause for revocation or suspension of the license.
(3)
A If a person that
is not licensed under this act who
advertises
his or her the person's business to be that of a private
security
guard or security alarm system contractor or agency,
irrespective of the name or title actually used, that person is
guilty of a misdemeanor punishable by imprisonment for not more
than 93 days, a fine of not more than $1,000.00, or both.
Sec.
25. (1) Subject to section 9(5), 9(8), the department may
renew
a license granted under this act may
be renewed by the
department
upon if the licensee files an
application, by
the
licensee,
filing provides a renewal surety bond in the amount
specified
in under section 9, and the payment of pays a
renewal fee
of
$100.00 if a sole proprietorship, $250.00 for a license as a
security
alarm system contractor and $150.00 if
a private security
police
organization, a private college police force, or a private
security
guard firm, company, partnership, limited liability
company,
or corporation, or $250.00 if a security alarm system
contractor.for any other license.
(2)
A The date of issuance of
a renewal license shall be dated
as
of under this act is the expiration date of the previously
existing
license. For the renewal of To
renew a license, the
licensee shall submit an application in a form provided by the
department. The department may defer the renewal of license if
there is an uninvestigated outstanding criminal complaint pending
against the licensee or a criminal case pending in any court
against the licensee.
(3)
A person who that fails to renew a license on or before
the expiration date shall not engage in activities regulated by
this
act. A person who that fails to renew a license on or before
the expiration date may, within 30 days after the expiration date,
renew the license by payment of the required license fee and a late
renewal fee of $25.00. An applicant who fails to renew within the
30-day period must reapply for a license under section 7.
(4)
The fees collected by the department under this section
shall
be deposited shall forward
all fees it collects under this
section to the state treasurer for deposit into the security
business
fund created in section 9(9).9(12).
Sec.
26. (1) Upon the death of If an individual licensed
under
this
act, who is licensed as a
private security police force or is
an owner of a licensed private security police force dies, any of
the following, as applicable, may continue the business with which
the
decedent was connected may be carried on for a period of 90
days: by
the following:
(a) In the case of an individual If the licensee was an
individual, the surviving spouse, or if there be none, the
executor
or
administrator of the estate of the decedent ; if there is no
surviving spouse.
(b) In the case of a partner, If the licensee is a partnership
and
the decedent was a partner, the
surviving partners. ;
(c) In the case of an officer of a firm, company,
association,
organization,
or corporation, If the
decedent was an officer of a
licensee that is not an individual or partnership, the remaining
officers
thereof. of the licensee.
(2) Within 10 days following the death of a licensee, the
department shall be notified in writing. The notification shall
state the name of the person legally authorized to carry on the
business of the deceased under subsection (1).
(3) Upon
the authorization of If
authorized by the department,
the business of a decedent described in subsection (1) may be
carried
on for a further longer period of time when than the 90-day
period described in subsection (1) if necessary to complete any
business
commitments pending at the death of when the decedent
died.
(4) Nothing
in this This section shall be construed to does
not
restrict the a sale
of an a security alarm system business or a
private
security guard agency, if a
private security police force
business if the licensee or an owner of the licensee dies and the
vendee
buyer qualifies for a license as a security alarm system
contractor
or private security police force under the
provisions of
this act.
Sec.
29. (1) The licensure department
of state police shall
administer the licensing of private security police and private
college
security forces. shall be administered by the department of
state
police. The application,
qualification, and enforcement
provisions under this act apply to private security police and
private
college security forces except that the administration of
department
of state police shall administer those
provisions, shall
be
performed by, and the payment of
the appropriate fees shall be
paid
to , the department
of state police. The director of the
department of licensing and regulatory affairs may jointly
promulgate rules with the department of state police under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to facilitate the bifurcation of authority described in
this subsection.
(2) This act does not require licensing of any private
security guards or officers employed for the purpose of protecting
the property and employees of their employer and generally
maintaining
security for their employer. However, any person ,
firm,
limited liability company, business organization, or
educational
institution , or corporation maintaining that maintains
a
private security police organization force or a private college
security
force may voluntarily apply for licensure under this act.
When
(3) If a private security police force employer or private
college
security force employer as described in this section
provides
the an employee with a pistol for the purpose of
protecting
the property of the employer, the pistol shall be is
considered the property of the employer and the employer shall
retain custody of the pistol, except during the actual working
hours
of the employee. All such private security people shall be
(4) An employee of a private college security force or private
security police force is subject to the provisions of sections
17(1) and 19(1).
Sec. 31. An applicant for licensure as private security police
force
under this act, under
section 29, or the employee principal
license holder of the applicant, if applicable, shall comply with
training requirements as prescribed by the department under this
act.
Sec. 33. A person shall not install or operate a security
alarm
system may not be installed or operated in this state unless
the
security alarm system is either installed by a 1 of the
following:
(a) A security alarm system contractor licensed under this
act. or
is installed by the
(b) A system provider, as defined in section 2 of the security
alarm systems act, 2012 PA 580, MCL 338.2182.
(c) The owner or occupant of a residence in his or her
residence.
Enacting section 1. Section 19 of the private security
business and security alarm act, 1968 PA 330, MCL 338.1069, is
repealed.
Enacting section 2. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 3. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No. 983.
(b) Senate Bill No. 986.
(c) Senate Bill No. 985.
