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MISB00162
Amends title & secs. 2, 3, 4, 5, 6, 8, 9, 10, 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 0161'15, SB 0163'15, SB 0164'15 | Occupations; security guards; security guard licensing under private security business and security alarm act; remove, and make general revisions.
Status: 2/4/2016 : referred to second reading
All Versions: Introduced | Passed Senate

Michigan Legislation provided by Legicrawler © 2012-2015

SB-0162, As Passed Senate, March 18, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 162

 

 

February 25, 2015, Introduced by Senators BOOHER and JOHNSON 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, 10, 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,

 

338.1060, 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, 14, 17,

 

25, and 29 as amended by 2010 PA 68, section 2 as amended by 2012

 

PA 581, sections 6 and 9 as amended by 2014 PA 128, sections 10,

 

13, 18, and 31 as amended by 2002 PA 473, section 11 as amended by

 

2004 PA 270, 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) If he or she served in the armed forces, was separated

 

from that service, and provides a form DD214, DD215, or any other


 

form satisfactory to the department that demonstrates he or she was

 

separated from that service, with an honorable character of service

 

or under honorable conditions (general) character of 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) Served in the armed forces; while serving in the armed

 

forces, acted as a military police officer or in an equivalent job

 

classification for at least 2 years; was separated from that

 

service, and provides a form DD214, DD215, or any other form


 

satisfactory to the department that demonstrates he or she was

 

separated from that service, with an honorable character of service

 

or under honorable conditions (general) character of 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.

 

     (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 and section 9, "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 applicant's name and the address of the applicant's

 

principal place of business.

 

     (b) If the applicant is not the licensee, the licensee's name

 

and the address of the licensee's principal place of business.

 

     (c) The address of each location in this state, including 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 shall submit 2 passport quality photographs

 

of the applicant 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.

 

     (2) (3) This section does not apply to a private college

 

security force.

 

     Sec. 9. (1) The department 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 an entity 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.

 

     (2) A license issued under this act is valid for 2 years, but

 

the department may revoke a license at any time for good 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, or sole proprietorship,

 

$200.00.

 

     (b) If the applicant is an entity, 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

 

principal amount of $25,000.00. The bond shall be conditioned on

 

the faithful and honest conduct of the business by the applicant

 

and approved by the department. In lieu of a bond, an applicant may

 

furnish a policy of insurance issued by an insurer authorized to do

 

business in this state that names the licensee and the state as

 

coinsureds in the amount of $25,000.00 for property damages,

 

$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 bond shall be payable 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 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 department shall not issue a

 

license under this act if the applicant does not provide the

 

department with proof, in the form of a certificate of insurance,

 

that it has and maintains a policy of liability insurance that is

 

issued by an authorized insurer, as defined in section 108 of the

 

insurance code of 1956, 1956 PA 218, MCL 500.108; names this state

 

as an additional insured; provides coverage in the amount of at

 

least $400,000.00 per occurrence; and requires the insurer to

 

provide the department with notice of cancellation of the policy at


 

least 30 days before the effective date of the cancellation. A

 

certificate of insurance required under this subsection must state

 

that the policy meets all of these requirements.

 

     (5) If a licensee licensed security alarm system contractor

 

intends to open 1 or more branch offices, the licensees security

 

alarm system contractor may receive a license for each branch if

 

the branch license is approved under section 7 and the licensee

 

security alarm system contractor pays the department 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) A licensee licensed security alarm system contractor shall

 

post an additional license issued under subsection (5) in a

 

conspicuous place in the branch office, and each additional license

 

expires on the same date as the initial license.

 

     (7) Subject to subsection (8), if a license is denied,

 

revoked, or suspended for cause, the department shall not refund

 

the license fees or any part of the license fees.

 

     (8) Beginning July 23, 2004, the department shall issue or

 

deny an application for an initial or renewal license within 180

 

days after the applicant files a completed application. An

 

application is considered received on the date the application is

 

received by any agency or department of this state. If 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 the

 

department receives the incomplete application, describing the


 

deficiency and requesting the additional information. A 180-day

 

period described in this subsection is tolled 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) If the department fails to issue or deny a license in the

 

time required 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 in the time required under this section does not allow the

 

department to otherwise delay the processing of an application, and

 

on completion, 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 processing an application based on the fact that the

 

license fee was refunded or discounted under this subsection.

 

     (10) 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 (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 (8).(9).

 

     (11) The fees collected by the department under this section

 

shall be deposited into the security business fund created in

 

subsection (12).

 

     (12) The security business fund is created 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, 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 he or she was

 

separated from that service with an honorable character of service

 

or under honorable conditions (general) character of service.

 

     (14) As used in this section, "completed application" means an

 

application that is complete on its face and submitted with any

 

applicable licensing fees 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 person but

 

not from another department or agency of this state.

 

     Sec. 10. (1) The department may revoke any license issued

 

under this act if it determines, upon good cause shown, that the

 

licensee or his or her manager, if the licensee is an individual,

 

or if the licensee is not an individual, that any of its officers,

 

directors, partners or its manager, has done any of the following:

 

     (a) Made any false statements or given any false information

 

in connection with an application for a license or a renewal or

 

reinstatement of a license.

 

     (b) Violated any provision of this act.

 

     (c) Been, while licensed or employed by a licensee, convicted

 

of a felony or a misdemeanor involving any of the following:

 

     (i) Dishonesty or fraud.

 

     (ii) Unauthorized divulging or selling of information or

 

evidence.

 

     (iii) Impersonation of a law enforcement officer or employee of

 

the United States, this state, or a political subdivision of this

 

state.


 

     (iv) Illegally using, carrying, or possessing a dangerous

 

weapon.

 

     (v) Two or more alcohol related offenses.

 

     (vi) Controlled substances under the public health code, 1978

 

PA 368, MCL 333.1101 to 333.25211.

 

     (vii) An assault.

 

     (d) Knowingly submitted any of the following:

 

     (i) A name other than the true name of a prospective employee.

 

     (ii) Fingerprints not belonging that do not belong to the

 

prospective employee.

 

     (iii) False identifying information in connection with the

 

application of a prospective employee.

 

     (2) The department shall not renew a license of a licensee who

 

that owes any fine or fee to the department at the time for a

 

renewal.

 

     (3) Within 48 hours after notification from the department of

 

the revocation of a license under this act, the licensee shall

 

surrender the license. and the identification card issued under

 

section 14. A person who that 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. 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 a license, the department shall

 

issue an identification card to the principal license holder, and

 

if the licensee is a partner in a partnership to each partner, 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 form and contents of the identification card shall be

 

prescribed by the department, and the card shall be recalled by the

 

department if the license is revoked.

 

     (3) Only 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

 

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 security alarm system agent,

 

private security police officer, private college security force

 

officer, security guard, or security technician.


 

     (1) (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.

 

     (2) (5) Upon If it receives a proper application and for

 

sufficient reasons shown, the department may issue duplicates a

 

duplicate 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 license is

 

automatically suspended. However, on request, the department may

 

permit the license to stay in force for 90 days from the date the


 

principal license holder was no longer authorized or available to

 

act on the licensee's behalf, to allow the licensee to designate a

 

different individual, who meets the requirements of section 6, as

 

its principal license holder. The licensee 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.

 

     (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) (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.

 

     (5) 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, 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 licensee, the surviving spouse, or if there

 

be none, the executor or administrator of the estate of the

 

decedent; (b) In the case of a partner, the surviving partners; (c)

 

In the case of an officer of a firm, company, association,

 

organization, or corporation, the officers thereof. who is a

 

licensee dies, the license is automatically suspended. However, on

 

request, the department may permit the surviving spouse of the

 

licensee, or the executor or administrator of the estate of the

 

decedent if there is no surviving spouse, to carry on the licensed

 

activity for a period of 90 days after the date of the decedent's

 

death.

 

     (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.decedent under subsection (1).

 

     (3) Upon the authorization of If authorized by the department,

 

the business of a licensee 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 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 98th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.161.                                    

 

          

 

     (b) Senate Bill No.164.                                   

 

           

 

     (c) Senate Bill No.163.