June 16, 2009, Introduced by Reps. Womack and DeShazor and referred to the Committee on Judiciary.
A bill to amend 1968 PA 330, entitled
"Private security business and security alarm act,"
by amending sections 2, 3, 4, 7, 8, 9, 17, and 29 (MCL 338.1052,
338.1053, 338.1054, 338.1057, 338.1058, 338.1059, 338.1067, and
338.1079), sections 2, 3, 7, 17, and 29 as amended by 2002 PA 473,
sections 4 and 8 as amended by 2000 PA 411, and section 9 as
amended by 2004 PA 270, and by adding sections 6a, 37, 38, 39, 40,
41, 42, and 43.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) As used in this act:
(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.
(b) (a)
"Department" means the
department of consumer and
industry
services energy, labor, and
economic growth except that in
reference
to the regulation provisions
of this act concerning the
administration of licensure of private security police and private
college security forces, department means the department of state
police.
(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.
(d) (b)
"Licensee" means a sole
proprietorship, firm, company,
partnership, limited liability company, or corporation licensed
under this act.
(e) "Private college security force" means a security force
created under section 37.
(f) (c)
"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.
(g) (d)
"Private security police"
means that part of a
business organization or educational institution primarily
responsible for the protection of property on the premises of the
business organization, but does not include a private college
security force.
(h) (e)
"Security alarm system"
means a detection device or an
assembly of equipment and devices arranged to signal the presence
of a hazard requiring urgent attention or to which police are
expected to respond. 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 a video signal that is not transmitted over a public
communication system or a fire alarm system or an alarm system that
monitors temperature, humidity, or other condition not directly
related to the detection of an unauthorized intrusion into a
premises or an attempted robbery at a premises.
(i) (f)
"Security alarm system
agent" means a person 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.
(j) (g)
"Security alarm system
contractor" means a sole
proprietorship, firm, company, partnership, limited liability
company, or corporation engaged in the installation, maintenance,
alteration, monitoring, or servicing of security alarm systems or
who responds to a security alarm system. Security alarm system
contractor does not include 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 the protected premises.
(k) (h)
"Security business" means
a person or business entity
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.
(iii) Private security police.
(2) All businesses furnishing security alarm systems for the
protection of persons and property, whose employees and security
technicians travel on public property and thoroughfares in the
pursuit of their duties, are subject to this act.
(3) A communications common carrier providing communications
channels under tariffs for the transmission of signals in
connection with an alarm system is not subject to this act.
(4) Railroad policemen appointed and commissioned under the
railroad code of 1993, 1993 PA 354, MCL 462.101 to 462.451, are
exempt from this act.
Sec. 3. (1) Unless licensed under this act, a sole
proprietorship, firm, company, partnership, limited liability
company, or corporation shall not engage in the business of
security alarm system contractor, private security guard, private
security police, 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 shall not sell, install, operate, adjust, arrange
for, or contract to provide a device which upon activation, 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 violates this section is guilty of a felony
punishable
by imprisonment for not more than 4 years , by or a
fine
of not more than $1,000.00, or both.
Sec. 4. The department may issue separate licenses to security
alarm system contractors, private college security forces, private
security police, and private security guard agencies. This section
does not prevent a private detective or private investigator
licensed
under the private detective license act of 1965,
professional investigator licensure act, 1965 PA 285, MCL 338.821
to 338.851, from performing the services of a private security
guard or private security police except that a private security
guard or private security police may not perform the services of a
private detective or private investigator without obtaining a
private detective or private investigator license.
Sec. 6a. The department shall issue a license to operate a
private college security force to a private college or university
that complies with the requirements of sections 37 to 43.
Sec. 7. (1) The department shall prepare a uniform application
for the particular license and shall require the person filing the
application to obtain reference statements from at least 5
reputable citizens who have known the applicant for a period of at
least 5 years, who can attest that the applicant is honest, of good
character, and competent, and who are not related or connected to
the applicant by blood or marriage.
(2) Upon receipt of the application and application fee, the
department shall investigate the applicant's qualifications for
licensure.
(3) The application and investigation are not considered
complete until the applicant has received the approval of the
prosecuting attorney and the sheriff of the county in this state
within which the principal office of the applicant is to be
located. If the office is to be located in a city, township, or
village, the approval of the chief of police may be obtained
instead of the sheriff. Branch offices and branch managers shall be
similarly approved.
(4) If a person has not previously been denied a license or
has not had a previous license suspended or revoked, the department
may issue a nonrenewable temporary license to an applicant. If
approved by the department, the temporary license is valid until 1
or more of the following occur but not to exceed 120 days:
(a) The completion of the investigations and approvals
required under subsections (1), (2), and (3).
(b) The completion of the investigation of the subject matter
addressed in section 6.
(c) The completion of the investigation of any employees of
the licensee as further described in section 17.
(d) Confirmation of compliance with the bonding or insurance
requirements imposed in section 9.
(e) The applicant fails to meet 1 or more of the requirements
for licensure imposed under this act.
(5) The fees for a temporary license shall be the applicable
fees as described in section 9.
(6) This section does not apply to a private college security
force.
Sec. 8. (1) Each applicant shall sign and verify the
application. Each application shall contain at least all of the
following:
(a) The name and principal address where the individual or
business entity is located in this state.
(b) The address and location of any branch office of the
business.
(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.
(3) This section does not apply to a private college security
force.
Sec. 9. (1) The department, when satisfied of the good
character, competence, and integrity of the applicant, or if the
applicant is a firm, company, partnership, limited liability
company, or corporation, of its individual members or officers, or,
if the applicant is a private college or university, of its board
of
governors, shall issue to the applicant
a license. Beginning
October 1, 2004, the 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 or a
private college or university, and upon the applicant's executing,
delivering, and filing with the department a bond in the sum of
$25,000.00.
Beginning October 1, 2002 and until October 1, 2004,
the
issuance of the license is conditioned upon the applicant's
paying
to the department for each license $1,000.00 if a sole
proprietorship,
or $1,500.00 if a private security firm, company,
partnership,
limited liability company, or corporation, or
$1,500.00
if a security alarm system contractor, and upon the
applicant's
executing, delivering, and filing with the department a
bond
of $25,000.00. The bond shall be
conditioned upon the faithful
and honest conduct of the business by the applicant and shall be
approved by the department. In lieu of a bond, the applicant may
furnish a policy of insurance issued by an insurer authorized to do
business in this state naming 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 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 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 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.
The fee changes effective October
1, 2002 until October
1,
2004 in this section and section 25 are considered necessary to
cover
the actual costs of the licensure program under this act and
shall
only be used for administration of that licensure program.
The
department and the department of state police shall each issue
a
report to the appropriations subcommittees having jurisdiction
over
their department not later than April 1, 2003, on whether the
fee
changes in this section and section 25 are adequate to support
the
licensure program under this act.
(2) If a licensee desires to open a branch office, he or she
may receive a license for that branch following approval as
required
in section 7 and payment to the department of the
following:
(a)
Beginning October 1, 2004, 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.
(b)
Beginning October 1, 2002 and until October 1, 2004, an
additional
fee of $250.00 for each private security branch office
license
and $500.00 for each security alarm system contractor
branch
office license.
(3) The additional license issued under subsection (2) shall
be posted in a conspicuous place in the branch office and shall
expire on the same date as the initial license.
(4) Subject to subsection (5), if the license is denied,
revoked, or suspended for cause, no refund shall be made of the
license
fees or a part thereof of
the license fees.
(5)
Beginning the effective date of the amendatory act that
added
this subsection July 23, 2004, the department shall issue an
initial or renewal license not later than 180 days after the
applicant files a completed application. Receipt of the application
is considered the date the application is received by any agency or
department of the state of Michigan. If the 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 180-day period is tolled upon
notification by the department 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.
(6) If the department fails to issue or deny a license within
the time required by 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 the time required under this section does not allow
the department to otherwise delay the processing of the
application, and that application, upon completion, shall be placed
in sequence with other completed applications received at that same
time. The department shall not discriminate against an applicant in
the processing of the application based upon the fact that the
license fee was refunded or discounted under this subsection.
(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).
(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).
(8) The fees collected by the department under this section
shall be deposited into the security business fund created in
subsection (9).
(9) The security business fund is created within the state
treasury. The department shall deposit all license fees collected
under this act 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 appropriation, only for
enforcement and administration of this act.
(10) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
licensing fees as well as 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 but not from
another department or agency of the state of Michigan.
Sec. 17. (1) A licensee may employ as many persons as he or
she considers necessary to assist him or her in his or her work of
security alarm system contractor, private security police, private
college security force, or private security guard and in the
conduct of his or her business, and at all times during the
employment is accountable for the good conduct in the business of
each person so employed.
(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
the
effective date of the amendatory act that added this sentence
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.
(3) A licensee shall keep and maintain in this state adequate
and complete personnel information on all persons employed by him
or her. 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 the department by
April 15, July 15, October 15, and January 15 for the preceding
quarter.
Failure to submit accurate rosters shall be is cause
for
suspension of the license. A renewal application shall not be
processed if the 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
is or has been in his or her employ, the false statement or
representation is sufficient cause for the revocation of the
license.
(5) A person shall not falsely state or represent that he or
she is an agent of a licensed security alarm system contractor,
private security police officer, or private security guard. A
person 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. 29. (1) The licensure 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 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 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 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, educational institution, or
corporation maintaining a private security police organization or a
private college security force may voluntarily apply for licensure
under this act. When a private security police employer or private
college security force employer as described in this section
provides the employee with a pistol for the purpose of protecting
the property of the employer, the pistol shall be 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 subject to the provisions
of sections 17(1) and 19(1).
Sec. 37. (1) This section and sections 38 to 43 apply only to
private college security forces.
(2) The governing board of a private college or university in
this state that has students residing in college or university
housing may create a private college security force and appoint
persons to be members of that private college security force. The
governing board shall assign duties, including the enforcement of
college or university regulations, and prescribe the oath of
office.
(3) A person appointed under subsection (2) shall be known and
designated as a private college security officer and is fully
empowered under this act as a private college security officer upon
being appointed by a private college or university licensed under
this act.
(4) Private college security officers must meet the selection
qualifications, standards, and requirements prescribed in R
28.14203, R 28.14204, R 28.14209, R 28.14313, R 28.14314, R
28.14315, R 28.14316, R 28.14317, R 28.14318, R 28.14319, and R
28.14320 of the Michigan administrative code, as promulgated by the
commission.
(5) Private college security officers may participate in the
recognition of prior basic law enforcement training and experience
program prescribed in R 28.14401, R 28.14402, R 28.14403, R
28.14404, R 28.14405, R 28.14406, R 28.14407, R 28.14408, R
28.14409, R 28.14410, R 28.14413, and R 28.14414 of the Michigan
administrative code, as promulgated by the commission and will be
considered to be certified law enforcement officers for purposes of
the prior recognition program only.
(6) Investigations conducted to determine if a candidate for
appointment as a private college security officer meets the
selection qualifications, standards, and requirements in subsection
(4) are governed by R 28.14601, R 28.14602, R 28.14603, R 28.14604,
R 28.14606, R 28.14608, and R 28.14609 of the Michigan
administrative code, as promulgated by the commission.
(7) A governing body of a private college or university that
creates a private college security force under this section may be
subject to a fee payable to the commission under section 10(2) of
the commission on law enforcement standards act, 1965 PA 203, MCL
28.610.
Sec. 38. The governing board of a private college or
university shall not create a private college security force under
section 37 unless, before that security force is created, the
governing board obtains the approval of the prosecuting attorney
and the sheriff of each county within which the private college or
university owns, maintains, or controls property. If the property
of the private college or university is located entirely within 1
city, the governing board also shall obtain the approval of the
chief of police of that city. If the property of the private
college or university is not located entirely within 1 city, the
governing board also shall obtain the approval of the chief of
police of each city within which the private college or university
owns, maintains, or controls property. Before granting approval,
the prosecuting attorney, the sheriff, and the chief of police, as
required, shall make a determination that the proposed law
enforcement agency is needed to assure adequate public safety on
the property of the private college or university. Any of the
persons whose approval is required under this section may rescind
that approval at any time after his or her approval was granted, in
which case the private college security force is no longer
authorized and shall cease to operate.
Sec. 39. A writing prepared, owned, used, in the possession
of, or retained by a private college or university in connection
with a private college security force created under section 37 is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
Sec. 40. Upon being appointed under section 37 by a private
college or university licensed under this act, private college
security officers have the power to make arrests for violations of
state statutes and local ordinances. That power may be exercised
only on property owned or leased by the private college or
university wherever situated. Private college security officers may
not serve civil process. Private college security officers are not
certified as law enforcement officers under the commission on law
enforcement standards act, 1965 PA 203, MCL 28.601 to 28.616.
Sec. 41. The governing board of a private college or
university shall not grant powers and authority to the private
college security officers of the private college or university
unless, before those powers and authority are granted, the
governing board establishes a private college security force
oversight committee. The committee shall be composed of the sheriff
and the prosecuting attorney of the county in which the private
college or university is located, the chief of police if the
private college or university is located in a municipality that has
a police force, and 6 individuals appointed by the administration
of the private college or university. The committee shall receive
and address grievances by persons against the private college
security officers or the private college security force of the
private college or university. The committee may recommend to the
governing board that disciplinary measures be taken by the private
college or university against a private college security officer
who is found responsible for misconduct in office.
Sec. 42. Members of the private college security force at a
private college or university are not eligible to participate in
any state, county, or municipal retirement system and shall not be
reimbursed for training with state funds. The uniforms, vehicles,
and badges of private college security officers shall be
distinctive from those of the local law enforcement agency where
the private college or university is located.
Sec. 43. The governing board of a private college or
university that creates a private college security force shall
provide liability insurance coverage for each member of the private
college security force without cost to the member, which will
insure the member against any liability arising out of or in the
course of the member's employment for not less than $250,000.00 of
coverage, unless that indemnification is provided by a program of
self-insurance.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5094(request no.
02432'09 a *) of the 95th Legislature is enacted into law.