GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
S 1
SENATE BILL 634
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Short Title: Private Protective Services Changes. |
(Public) |
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Sponsors: |
Senators Daniel (Primary Sponsor); and Rabin. |
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Referred to: |
Rules and Operations of the Senate |
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April 5, 2017
A BILL TO BE ENTITLED
AN ACT to make various changes to the private protective services act and the alarm systems licensing act and to create certain fees.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 74C‑3 reads as rewritten:
"§ 74C‑3. Private protective services profession defined.
(a) As used in this Chapter, the term "private protective services profession" means and includes the following:
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(5a) Electronic countermeasures
profession. – Any person, firm, association, or corporation which for a fee or
other valuable consideration discovers, locates, or disengages by electronic,
electrical, or mechanical means any listeningof the following:
a. Listening or other monitoring equipment surreptitiously placed to gather information concerning any individual, firm, association, or corporation.
b. Any device intended to block the transmission of any electronic signal.
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(10) Close personal protection. – Any individual, firm, association, or corporation that, for a fee or other valuable consideration, provides or offers to provide security measures to ensure the safety of a business executive, elected or appointed public official, celebrity, or other individuals who may be exposed to elevated personal risk due to employment, status, wealth, associations, or geographical location.
(b) "Private protective services" shall not include any of the following:
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(18) A person under contract or employed by an occupational licensing board as defined by G.S. 93B‑1, while performing an investigation solely for that board."
SECTION 2. G.S. 74C‑5 reads as rewritten:
"§ 74C‑5. Powers of the Board.
In addition to the powers conferred upon the Board elsewhere in this Chapter, the Board shall have the power to do all of the following:
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(13) With the concurrence of the Secretary of Public Safety, issue, cease, and desist letters regarding unlicensed activity.
(14) Subject to approval of the Governor and the Council of State, acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation. Any collateral pledged by the Board for encumbrance is limited to the assets, income, and revenue of the Board.
(15) Adopt rules establishing standards for the use of firearms or other weapon approved by the Board.
(16) Adopt and publish a code of professional conduct for licensees, registrants, certificate holders, and permit holders."
SECTION 3. G.S. 74C‑7 reads as rewritten:
"§ 74C‑7. Investigative powers of the Secretary of Public Safety.
The Secretary of Public Safety for
the State of North Carolina shall have the power to investigate or cause to be
investigated any complaints, allegations, or suspicions of wrongdoing or
violations of this Chapter involving individuals licensed, unlicensed
individuals, licensed individuals, or individuals to be licensed,licensed
under this Chapter. Any investigation conducted pursuant to this section is
confidential and is not subject to review under G.S. 132‑1 until the
investigation is complete and a report is presented to the Board. However, the
report may be released to the licensee after the investigation is complete but
before the report is presented to the Board. The Secretary shall retain the
authority to enforce the provisions of this Chapter and impose any penalty
authorized by G.S. 74C‑12(a) and G.S. 74C‑17 against any
individual or entity who is under investigation for or charged with a violation
of this Chapter, including individuals and entities with lapsed or surrendered
licenses or registrations."
SECTION 4. G.S. 74C‑8 reads as rewritten:
"§ 74C‑8. License requirements.
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(c) Qualifying Agent. – A business entity, other than a sole proprietorship, that engages in private protective services is subject to all of the requirements listed in this subsection with respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent" is an individual in a management position who is licensed under this Chapter and whose name and address have been registered with the Director. The requirements are:
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(3) In the event that the
qualifying agent upon whom the business entity relies in order to do business
ceases to perform his duties as qualifying agent, the business entity shall
notify the Director within 10 working days. The business entity must obtain a
substitute qualifying agent within 30 90 days after the original
qualifying agent ceases to serve as qualifying agent unless the Board, in its
discretion, extends this the 90‑day period, for good cause,
for a period of time not to exceed three months.an additional 30 days
upon the filing of a petition by the business entity and upon a hearing by the
Board. The Board may require the payment of a late fee for a business entity
failing to obtain a substitute qualifying agent pursuant to the requirements of
this subdivision.
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(f) Issuance. – Upon a
finding that the application is in proper form, the completion of the
background investigation, and the completion of an examination required by the
Board, the Director shall submit to the Board the application and the
Director's recommendations. Upon completion of the background investigation,
the Director may issue a temporary license pending approval of the application
by the Board at the next regularly scheduled meeting. The Board shall determine
whether to approve or deny the application for a license. Upon approval by the
Board, a license will be issued to the applicant upon payment by the applicant
of the initial license fee and the required contribution to the Private
Protective Services Education Fund, and the filing of a certificate of
liability insurance.insurance with the Board. The applicant shall pay
the initial license fee and make the required contribution to the Fund within
90 days from the date the applicant receives notice of pending licensure
approval unless the Board, in its discretion and for good cause, extends the 90‑day
period for an additional 30 days upon the filing of a petition by the applicant
and a hearing by the Board. The Board may require the payment of a late fee for
an applicant failing to pay the initial license fee or for failing to make the
contribution to the Fund pursuant to this subsection.
…."
SECTION 5. G.S. 74C‑9 reads as rewritten:
"§ 74C‑9. Form of license; term; renewal; posting; branch offices; not assignable; late renewal fee.
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(e) The Board is authorized to charge reasonable application and license fees as follows:
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(7) An application fee for a firearm registration permit for all applicants and for licensees subject to G.S. 74C‑13 not to exceed fifty dollars ($50.00).
(8) A new, renewal, replacement, or reissuance fee for a firearm registration permit for all applicants and for licensees subject to G.S. 74C‑13 not to exceed thirty dollars ($30.00).
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(16) A late fee for a business entity subject to G.S. 74C‑8(c)(3) or an applicant for licensure under G.S. 74C‑8(f) not to exceed one hundred dollars ($100.00).
Except as provided in G.S. 74C‑13(k), all fees collected pursuant to this section shall be expended, under the direction of the Board, for the purpose of defraying the expenses of administering this Chapter.
(f) A license or trainee
permit granted under the provisions of this Chapter may be renewed by the
Private Protective Services Board upon notification by the licensee or permit
holder to the Director of intended renewal, the payment of the proper fee, and
evidence of a policy of liability insurance policy as prescribed
in G.S. 74C‑10(e).
The renewal shall be finalized before the expiration date of the license. In no event will renewal be granted more than three months after the date of expiration of a license or trainee permit.
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SECTION 6. G.S. 74C‑10 reads as rewritten:
"§ 74C‑10. Certificate of liability insurance required; form and approval; suspension for noncompliance.
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(e) No security guard and
patrol, armored car, or special limited guard and patrol license shall be
issued under this Chapter unless the applicant files with the Board evidence of
a policy of liability insurance.insurance policy. The
policy must provide for the following minimum coverage: fifty thousand dollars
($50,000) because of bodily injury or death of one person as a result of the
negligent act or acts of the principal insured or his agents operating in the
course and scope of his employment; subject to said limit for one person, one
hundred thousand dollars ($100,000) because of bodily injury or death of two or
more persons as the result of the negligent act or acts of the principal
insured or his agents operating in the course and scope of his or her agency;
twenty thousand dollars ($20,000) because of injury to or destruction of
property of others as the result of the negligent act or acts of the principal
insured or his agents operating in the course and scope of his or her agency.
If the licensee,a licensee or a trainee supervised by a licensee,
other than a security guard and patrol, armored car, or special limited guard
and patrol licensee, carries a firearm while engaged in private protective
services activities, the licensee or trainee shall obtain a policy of
liability insurance policy with a minimum coverage as specified
above. A licensee or trainee is deemed to be "carrying a
firearm" for purposes of this section while engaged in private protective
services if the licensee or trainee has a firearm on the licensee's or
trainee's person or in the automobile the licensee or trainee is
using to perform private protective services. A licensee may provide liability
insurance coverage for a trainee under the licensee's supervision; however,
failure of the licensee to provide coverage shall not exempt the trainee from
the requirements of this section.
(e1) The Board shall approve the form, execution, and terms of the liability insurance policy required pursuant to this section.
(f) An insurance carrier
shall have the right to cancel such policy ofa liability
insurance policy upon giving a 30‑day notice to the Board.
Provided, however, that such the cancellation shall not affect
any liability on the policy which that accrued prior thereto.
The policy of liability shall be approved by the Board as to form, execution,
and terms thereon.
(g) The holder of any
trainee permit and personsPersons registered pursuant to
G.S. 74C‑11 shall not be required to obtain a certificate of liability
insurance.
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SECTION 7. G.S. 74C‑12 reads as rewritten:
"§ 74C‑12. Denial, suspension, or revocation of license, registration, or permit; duty to report criminal arrests.
(a) The Board may, after compliance with Chapter 150B of the General Statutes, deny, suspend or revoke a license, certification, registration, or permit issued under this Chapter if it is determined that the applicant, licensee, trainee, registrant, or permit holder has done any of the following acts:
(1) Made any false statement or given any false information in connection with any application for a license, certification, registration, or permit or for the renewal or reinstatement of a license, certification, registration, or permit.
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(6) Engaged in or permitted any employee to engage in a private protective services profession when not lawfully in possession of a valid license or registration issued under the provisions of this Chapter.
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(9) Committed an unlawful
breaking or entering, assault, battery, or kidnapping.kidnapping, or
violated any State or federal firearms law.
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(24) Fraudulently held himself
or herself out as employed by or licensed by the State Bureau of
InvestigationDepartment of Public Safety or any other governmental
authority.
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(33) Violated the code of professional conduct for licensees, registrants, certificate holders, and permit holders adopted by the Board.
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SECTION 8. G.S. 74C‑13 reads as rewritten:
"§ 74C‑13. Armed licensee or registered employee required to have firearm registration permit; firearms training.
(a) It shall be unlawful for
any person performing private protective services duties to carry a firearm in
the performance of those duties without first having met the qualifications of
this section and having been issued a firearm registration permit by the Board.
A licensee or proprietary employer described in G.S. 74C‑3(b)(13)
shall register any individual carrying a firearm within 30 days of
employment. Before engaging in any private protective services activity, the
individual shall receive any required training prescribed by the Board.Board,
unless specifically exempted from training pursuant to G.S. 74C‑13.1.
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(d2) A proprietary security organization that employs an armed security guard shall submit to the Board an application for license on a form provided by the Board for that purpose. A proprietary security organization shall renew its license every two years.
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(h) The Board and the Secretary of Public Safety shall establish a firearms training program for licensees and registered employees to be conducted by agencies and institutions approved by the Board and the Secretary of Public Safety. The Board and the Secretary of Public Safety may approve training programs conducted by a contract security company and the security department of a proprietary security organization, if the contract security company or security department of a proprietary security organization offers the courses listed in subdivision (1) of this subsection and if the instructors of the training program are certified trainers approved by the Board and the Secretary of Public Safety:
(1) The basic training course approved by the Board and the Secretary of Public Safety shall consist of a minimum of four hours of classroom training which shall include all of the following:
a. Legal limitations on the
use of hand gunsfirearms and on the powers and authority of an
armed security guard.
b. Familiarity with this section.
c. Range firing and
procedure and hand gunfirearm safety and maintenance.
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SECTION 9. Article 1 of Chapter 74C of the General Statutes is amended by adding a new section to read:
"§ 74C‑13.1. Firearm training exemptions.
(a) The following persons shall be exempt from the firearms training requirements of G.S. 74C‑13(b):
(1) Persons who have successfully completed the North Carolina Basic Law Enforcement Training and have successfully completed the first year of probationary employment.
(2) Persons who have retired either by years of service or by medical disability, or separated in good standing as a sworn law enforcement officer from a federal, State, county, or municipal law enforcement agency that included in their duty the use and qualification of a firearm. Retirement or separation must have occurred within three years of application pursuant to this Chapter.
(3) Military personnel who have been honorably discharged within three years of application pursuant to this Chapter and who have a military occupation specialty code which includes Military Police or Criminal Investigative Division.
(4) Employees of a nuclear power plant that are required to comply with 10 C.F.R. § 73.55 Appendix B, "General Criteria for Security Personnel," as supplemented by Regulatory Guide 5.75.
(b) An applicant claiming one of the exemptions in subsection (a) of this section from the 20‑hour course of armed guard instruction must provide the Board the following documentation, as appropriate:
(1) A copy of a North Carolina Basic Law Enforcement Training certificate and a letter from the applicant's department verifying that the probationary employment period has been completed.
(2) Retirement documentation verifying sworn status, or the card issued by the North Carolina Criminal Justice Training & Standards Division authorizing concealed carry under the "Law Enforcement Officers' Safety Act," Public Law 108‑277, as amended.
(3) Documentation from a DD Form 214 noting a Military Police or Criminal Investigations Division military occupational specialty.
(4) Documentation of retirement or separation from a federal law enforcement agency with an Office of Personnel Management job series of 1811 for Criminal Investigation.
(5) Documentation of current, direct employment with a nuclear power plant located in this State.
(c) The Board shall deny an exemption sought pursuant to this section if the applicant fails to provide the documentation, as applicable, provided in subsection (b) of this section.
(d) When utilizing this exemption, the applicant must qualify within the first three attempts on the required firearm qualification course. If the applicant fails to qualify on both of required courses of fire, the applicant shall be required to undergo the entire 20‑hour course of instruction.
(e) When utilizing this exemption, the applicant must complete the legal block of instruction required by G.S. 74C‑13(h)(1) and the Board's administrative rules."
SECTION 10. G.S. 74C‑17 reads as rewritten:
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(c) In lieu of revocation or suspension of a license or permit under G.S. 74C‑12, a civil penalty of not more than two thousand dollars ($2,000) per violation may be assessed by the Board against any person or business who violates any provision of this Chapter or any rule of the Board adopted pursuant to this Chapter. In determining the amount of any penalty, the Board shall consider the degree and extent of harm caused by the violation. The clear proceeds of civil penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
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(e) The Board shall be entitled to charge costs, including reasonable attorneys' fees, for any proceeding governed by Chapter 150B of the General Statutes or authorized by this section."
SECTION 11. G.S. 74C‑23 reads as rewritten:
"§ 74C‑23. Acquisition or change of ownership or control of licensed firm, association, or corporation.
In the event a company, firm, or corporation licensed under this Chapter transfers ownership, control, or a majority of assets to another person, firm, association, or corporation, the person, firm, association, or corporation acquiring control or ownership shall have the following responsibilities:
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(4) Provide to the Director within
60 10 calendar days from prior to the effective date
of the transaction the following:
a. Aa list of all registrants or and
licensees affected by the transaction.
b. Written confirmation of completion of any
changes necessary for the acquiring party to comply with the requirements of
this Chapter or any applicable rules adopted by the Board on a form approved by
the Director.
(5) Provide to the Director within 60 calendar days from the effective date of the transaction, on a form provided by the Director, written confirmation of completion of any changes necessary for the acquiring party to comply with the requirements of this Chapter or any applicable rules adopted by the Board."
SECTION 12. G.S. 14‑269.3 reads as rewritten:
"§ 14‑269.3. Carrying weapons into assemblies and establishments where alcoholic beverages are sold and consumed.
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(b) This section shall not apply to any of the following:
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(4) A person registered or
hired as a security guard guard, as described in G.S. 74C‑3(b)(13)
who is hired by the owner, lessee, or person or organization sponsoring the
event.event or a person employed by an entity licensed pursuant to G.S. 74C‑2
who is hired by the owner, lessee, or person or organization sponsoring the
event.
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SECTION 13. Section 12 of this act becomes effective December 1, 2017. The remainder of this act becomes effective July 1, 2017.