House Introduced Bill 4692

HOUSE BILL No. 4692

May 1, 2001, Introduced by Reps. Julian, Hager, Caul, Raczkowski, Ehardt, Allen, Birkholz, Kolb, Richardville, Mead and
Basham and referred to the Committee on Criminal Justice.

A bill to amend 1968 PA 330, entitled

"Private security business and security alarm act,"

by amending sections 9, 17, and 25 (MCL 338.1059, 338.1067 and

338.1075), as amended by 2000 PA 411.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1
Sec. 9. (1) The department, when satisfied of the good

2
character, competence, and integrity of the applicant, or if the

3
applicant is a firm, company, partnership, or corporation, of its

4
individual members or officers, shall issue to the applicant a

5
certificate of license upon the applicant's paying to the depart-

6
ment for each certificate of license $200.00 $500.00 if a

7
person, or $300.00 if a private security guard firm, company,

8
partnership, or corporation, or AND $500.00 if a security alarm

9
system contractor, and upon the applicant's executing,

10
delivering, and filing with the department a bond in the sum of

03733'01 LBO
2

1
$25,000.00. The bond shall be conditioned upon the faithful and

2
honest conduct of the business by the applicant and shall be

3
approved by the department. In lieu of a bond, the applicant may

4
furnish a policy of insurance issued by an insurer authorized to

5
do business in this state naming the licensee and the state as

6
coinsureds in the amount of $25,000.00 for property damages,

7
$100,000.00 for injury to or death of 1 person, and $200,000.00

8
for injuries to or deaths of more than 1 person arising out of

9
the operation of the licensed activity. The license is valid for

10
2 years but is revocable at all times by the department for cause

11
shown. The bonds shall be taken in the name of the people of the

12
state and a person injured by the willful, malicious, and wrong-

13
ful act of the licensee or any of his or her agents or employees

14
may bring an action on the bond or insurance policy in his or her

15
own name to recover damages suffered by reason of the wrongful

16
act. The license certificate shall be in a form to be prescribed

17
by the department.

18
(2) If a licensee desires to open a branch office, he or she

19
may receive a certificate of license for that branch following

20
approval as required in section 7 and payment to the department

21
of an additional fee of $50.00 $200.00 for each private secur-

22
ity guard branch office license and $100.00 for each security

23
alarm system contractor branch office license. The additional

24
license shall be posted in a conspicuous place in the branch

25
office and shall expire on the same date as the initial license.

26
(3) The department shall charge an additional fee of $25.00

27
for a late renewal as further described in section 25.

03733'01 3

1
(4) If the license is denied, revoked, or suspended for

2
cause, no refund shall be made of the license fees or a part

3
thereof OF THE FEE.

4
Sec. 17. (1) A licensee may employ as many persons as he or

5
she considers necessary to assist him or her in his or her work

6
of security alarm system contractor, private security police, or

7
private security guard and in the conduct of his or her business,

8
and at all times during the employment is accountable for the

9
good conduct in the business of each person so employed.

10
(2) Employees in the employ of a licensee after the effec-

11
tive date of the amendatory act that added subsection (5) MARCH

12
28, 2001 shall meet the qualifications outlined in section

13
6(1)(c), (e), (j), and (k), be at least 18 years of age, and have

14
had at least an eighth grade education or its equivalent. An

15
employee in the employ of a licensee on or before the effective

16
date of the amendatory act that added subsection (5) MARCH 28,

17
2001 shall meet the qualifications outlined in section 6(1)(d),

18
(e), (j), and (k), be at least 18 years of age, and have had at

19
least an eighth grade education or its equivalent.

20
(3) A licensee shall keep and maintain in this state ade-

21
quate and complete personnel information on all persons employed

22
by him or her.

23
(4) If a licensee falsely states or represents that a person

24
is or has been in his or her employ, the false statement or rep-

25
resentation is sufficient cause for the revocation of the

26
license.

03733'01
4

1
(5) THE DEPARTMENT SHALL CONSIDER THE TRAINING REQUIREMENTS

2
AS RECOMMENDED BY THE COMMISSION ON LAW ENFORCEMENT STANDARDS

3
ESTABLISHED UNDER SECTION 9 OF THE COMMISSION ON LAW ENFORCEMENT

4
STANDARDS ACT, 1965 PA 203, MCL 28.609.

5
(6) THE DEPARTMENT SHALL ADOPT TRAINING REQUIREMENTS ACCEPT-

6
ABLE TO THE DIRECTOR OF THE DEPARTMENT BY RULE OR AS OTHERWISE

7
PROVIDED BY LAW.

8
(7) PRIVATE SECURITY GUARDS AND PRIVATE SECURITY POLICE CAR-

9
RYING OR POSSESSING A CONCEALED PISTOL WITHIN THE COURSE OF THEIR

10
EMPLOYMENT SHALL COMPLETE AND SUCCESSFULLY PASS A PISTOL TRAINING

11
OR SAFETY PROGRAM THAT MEETS OR EXCEEDS THE PISTOL TRAINING OR

12
SAFETY PROGRAM PRESCRIBED IN SECTION 5J OF 1927 PA 372,

13
MCL 28.425J.

14
(8) (5) A person shall not falsely state or represent that

15
he or she is an agent of a licensed security alarm system con-

16
tractor, private security police officer, or private security

17
guard. A person who violates this subsection is guilty of a mis-

18
demeanor punishable by imprisonment for not more than 93 days or

19
a fine of not more than $500.00, or both.

20
Sec. 25. (1) A license granted under this act may be

21
renewed by the department upon application by the licensee and

22
the payment of a renewal fee of $100.00 $400.00 if an individu-

23
al, $150.00 $1,000.00 if a private security guard firm, com-

24
pany, partnership, or corporation, or $250.00 if a security alarm

25
system contractor, and filing of a renewal surety bond in the

26
amount specified in section 9.

03733'01
5

1
(2) A renewal license shall be dated as of the expiration

2
date of the previously existing license. For the renewal of a

3
license, the licensee shall submit an application in such form

4
provided by the department. The department may defer the renewal

5
of license if there is an uninvestigated outstanding criminal

6
complaint pending against the licensee or a criminal case pending

7
in any court against the licensee.

8
(3) The renewal application must be approved by the sheriff

9
or chief of police and the prosecuting attorney, as required for

10
an initial license.

11
(4) A person who fails to renew a license on or before the

12
expiration date shall not engage in activities regulated by this

13
act. A person who fails to renew a license on or before the

14
expiration date may, within 30 days after the expiration date,

15
renew the license by payment of the required license fee and a

16
late renewal fee as prescribed by section 9. An applicant who

17
fails to renew within the 30-day period must reapply for a

18
license under section 7.

19
Enacting section 1. This amendatory act does not take

20
effect unless Senate Bill No. _____ or House Bill No. 4693

21
(request no. 03733'01 a) of the 91st Legislature is enacted into

22
law.

03733'01 Final page. LBO