SB-0672, As Passed Senate, May 8, 2014
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 672
A bill to amend 1968 PA 330, entitled
"Private security business and security alarm act,"
by amending sections 6 and 9 (MCL 338.1056 and 338.1059), section 6
as amended by 2012 PA 419 and section 9 as amended by 2010 PA 68.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) The department shall issue a license to conduct
business as a security alarm system contractor or a private
security guard, private security police, or to a private security
guard business, 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 21 years of age. However, this
subdivision does not apply to an applicant described in subdivision
(g)(v).
(b) Has a high school education or its equivalent.
(c) If the applicant's license is issued after March 28, 2001,
has not been convicted of a felony.
(d) If the applicant's license was issued on or before March
28, 2001, was not convicted of a felony in the 5-year period
preceding the date of application.
(e) Was not convicted of an offense listed in section 10(1)(c)
in the 5-year period preceding the date of application.
(f)
Has not been dishonorably discharged from a branch of the
United
States military service.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) While on active duty as a member of Served in the armed
forces;
while serving in the armed forces, served
acted as a
military police officer or in an equivalent job classification for
at
least 2 years; was honorably discharged from that military
service;
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.
(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 3 years.
(ii) A security alarm system contractor business for a period
of not less than 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.
(i) Provided the department the bond or surety required under
section 9.
(j) Has not been adjudged insane, unless he or she has been
adjudged restored to sanity by court order.
(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.
9. (1) The department , when shall
issue a license to an
applicant when the requirements of this act are met and the
department is satisfied of the good character, competence, and
integrity of the applicant, if the applicant is an individual, or
if
the applicant is a firm, company, partnership, limited liability
company,
or corporation, an entity
other than a private college or
university, of its individual members or officers, or, if the
applicant is a private college or university, of its governing
board. ,
shall issue to the applicant a license. The issuance of
the
license is conditioned upon the applicant's paying to the
department
for each license $200.00 if a sole proprietorship, or
$300.00
if a private security guard firm, company, partnership,
limited
liability company, or corporation, or $500.00 if a security
alarm
system contractor, and upon the applicant's executing,
delivering,
and filing with
(2) A license issued under this act is valid for 2 years, but
the department may revoke a license at any time for 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, $300.00.
(4) The department shall not issue a license under this act
unless
the applicant provides the department a
bond in the sum
principal
amount of $25,000.00. The bond shall be
conditioned upon
on the faithful and honest conduct of the business by the applicant
and
shall be approved by the department. In lieu of a bond, the an
applicant may furnish a policy of insurance issued by an insurer
authorized
to do business in this state naming that names the
licensee and the state as coinsureds in the amount of $25,000.00
for property damages, $100,000.00 for injury to or death of 1
person, and $200,000.00 for injuries to or deaths of more than 1
person
arising out of the operation of the licensed activity. The
license
is valid for 2 years but is revocable at all times by the
department
for cause shown. The bonds shall be taken in the name
The bond shall be payable for the benefit of the people of the
state and a person injured by the willful, malicious, and wrongful
act
of the licensee or any of his or her agents or employees of a
licensee may bring an action on the bond or insurance policy in his
or her own name to recover damages suffered by reason of the
wrongful
act. The license certificate shall be in a form to be
prescribed
by the department.
(5) (2)
If a licensee desires intends to
open a 1 or more
branch
office, he or she offices,
the licensees may receive a
license
for that each branch following approval as required in if
the
branch license is approved under section
7 and payment to the
licensee
pays the department of an
additional fee of $50.00 for
each private security guard branch office license and $100.00 for
each security alarm system contractor branch office license.
(6) (3)
The A licensee shall post an additional license issued
under
subsection (2) shall be posted (5)
in a conspicuous place in
the
branch office, and shall expire each additional license expires
on the same date as the initial license.
(7) (4)
Subject to subsection (5), (8), if
the a license is
denied,
revoked, or suspended for cause, no the department shall
not
refund shall be made of the
license fees or a any part of the
license fees.
(8) (5)
Beginning July 23, 2004, the
department shall issue or
deny
an application for an initial or
renewal license not later
than
within 180 days after the applicant files a completed
application.
Receipt of the An application is considered received
on the date the application is received by any agency or department
of
the this state. of Michigan. If the an application
is considered
incomplete by the department, the department shall notify the
applicant in writing, or make the information electronically
available,
within 30 days after receipt of the
department receives
the incomplete application, describing the deficiency and
requesting
the additional information. The A
180-day period
described
in this subsection is tolled upon
notification by from
the date the department notifies the applicant of a deficiency
until the date the requested information is received by the
department. The determination of the completeness of an application
does not operate as an approval of the application for the license
and does not confer eligibility of an applicant determined
otherwise ineligible for issuance of a license.
(9) (6)
If the department fails to issue or
deny a license
within
in the time required by under this
section, the department
shall return the license fee and shall reduce the license fee for
the applicant's next renewal application, if any, by 15%. The
failure
to issue a license within in
the time required under this
section does not allow the department to otherwise delay the
processing
of the an application, and that application, upon on
completion,
shall be placed the
department shall place the
application in sequence with any other completed applications
received at that same time. The department shall not discriminate
against
an applicant in the processing of the an application
based
upon
on the fact that the license fee was refunded or
discounted
under this subsection.
(10) (7)
Beginning October 1, 2005, the
director of the
department shall submit a report by December 1 of each year to the
standing committees and appropriations subcommittees of the senate
and house of representatives concerned with occupational issues.
The director shall include all of the following information in the
report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the
department received and completed within the 180-day time period
described
in subsection (5).(8).
(b) The number of applications denied.
(c) The number of applicants not issued a license within the
180-day time period and the amount of money returned to licensees
and
registrants under subsection (6).(8).
(11) (8)
The fees collected by the
department under this
section shall be deposited into the security business fund created
in
subsection (9).(12).
(12) (9)
The security business fund is
created within in the
state treasury. The department shall deposit 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 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) (10)
As used in this section,
"completed application"
means an application that is complete on its face and submitted
with
any applicable licensing fees as well as and any other
information, records, approval, security, or similar item required
by law or rule from a local unit of government, a federal agency,
or
a private entity person but not from another department or
agency
of the this state. of Michigan.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.