GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 605

Short Title:  Amend Protective Services.	(Public)
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Sponsors: Senator Swain.
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Referred to:  Judiciary I.
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March 22, 1989

A BILL TO BE ENTITLED
AN ACT TO AMEND THE LAWS CONCERNING THE PRIVATE PROTECTIVE SERVICES BOARD AND THE PRIVATE PROTECTIVE SERVICES RECOVERY FUND.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 74C-1 reads as rewritten:
"§ 74C-1. Title.
This Chapter may be cited as the Private Protective Services Act.  The purpose of this act is to increase the levels of integrity, competency, and performance of Private Protective Service Professions in order to safeguard the public health, safety and welfare."
Sec. 2.  G.S. 74C-2 reads as rewritten:
"§ 74C-2. Licenses required.
(a)	No private person, firm, association, or corporation shall engage in, perform any services as, or in any way represent or hold itself out as engaging in a private protective service profession or activity in this State without having first complied with the provisions of this Chapter. Compliance with licensing requirements of  this Chapter shall not relieve any person, firm, association or corporation from compliance with any other licensing law.
	(c)	In its discretion, the Private Protective Services Board may issue a trainee permit in lieu of a private investigator license provided that the applicant works under the direct supervision of a licensee."
Sec. 3.  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:
(1)	‘Armored car business' means any person, firm, association, or corporation which provides secured transportation and protection from one place or point to another place or point of money, currency, coins, bullion, securities, checks, documents, stocks, bonds, jewelry, paintings, and other valuables for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer. This definition does not include a person operating an armored car business pursuant to a motor carrier certificate or permit issued by the North Carolina Utilities Commission which grants operating rights for such business; however, armed armored car service guards shall be subject to the provisions of G.S. 74C-13.
(2)	Repealed by Session Laws 1983, c. 786, s. 2, effective January 1, 1984.
(3)	‘Counterintelligence service profession ' means any person, firm, association, or corporation which discovers, locates, or disengages by electronic, electrical, or mechanical means  any listening or other monitoring equipment surreptitiously placed to gather information concerning any individual, firm, association, or corporation for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.
(4)	‘Courier service profession ' means any person, firm, association, or corporation which transports or offers to transport from one place or point to another place or point documents, papers, maps, stocks, bonds, checks, or other small items of value which require expeditious service for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer. This definition does not include a person operating a courier service business pursuant to a motor carrier certificate or permit issued by the North Carolina Utilities Commission which grants operating rights for such business; however, armed courier service guards shall be subject to the provisions of G.S. 74C-13.
(5)	‘Detection of deception examiner' means any person, firm, association, or corporation which uses any device or instrument, regardless of its name or design, for the purpose of the detection of deception or any person who reviews the work product of an examiner including charts, tapes or other methods of record keeping for the purpose of detecting deception or determining accuracy.
(6)	‘Security guard and patrol profession ' means any person, firm, association, or corporation which provides a private watchman, guard, or street patrol service on a contractual basis for another person, firm, association, or corporation for a fee or other valuable consideration and performing one or more of the following functions:
a.	Prevention and/or detection of intrusion, entry, larceny, vandalism, abuse, fire, or trespass on private property;
b.	Prevention, observation, or detection of any unauthorized activity on private property; and
c.	Protection of patrons and persons lawfully authorized to be on the premises of the person, firm, association, or corporation for whom he contractually obligated to provide security services; and
d.	Control, regulation, or direction of the flow or movement of the public, whether by vehicle or otherwise, only to the extent and for the time directly and specifically required to assure the protection of properties.
	(7)	‘Guard-dog service profession ' means any person, firm, association, or corporation which contracts with another person, firm, association, or corporation to place, lease, rent, or sell a trained dog for the purpose of protecting lives or property for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.
(8)	‘Private detective' or ‘private investigator' are synonymous and mean any person who engages in the business of or accepts employment to furnish, agrees to make, or makes inquiries or investigations or performs any of the below listed services on a contractual basis:
a.	Crime or wrongs done or threatened against the United States or any state or territory of the United States;
b.	The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of any person;
c.	The location, disposition, or recovery of lost or stolen property;
d.	The cause or responsibility for fires, libels, losses, accidents, damages, or injuries to persons or to properties; 
e.	Securing evidence to be used before any court, board, officer, or investigative committee; 
f.	Protection of individuals from serious bodily harm or death; or
g.	A consumer shopping service providing services to retail merchants to determine the honesty, integrity and performance of any employee(s) of the business.  
	(9)	‘Special Limited Guard and Patrol Profession' means any person who is licensed under Chapter 74D of the General Statutes of North Carolina and provides armed alarm responders pursuant to G.S. 74C-13.  Applicants for this limited license shall not be required to meet the experience requirements for a security guard and patrol license.  Any experience gained under this limited license shall not be counted as experience for a security guard and patrol license.
(b)	‘Private protective services' shall not mean:
(1)	Insurance adjusters legally employed as such and who engage in no other investigative activities unconnected with adjustment or claims against an insurance company;
(2)	An officer or employee of the United States, this State, or any political subdivision of either while such officer or employee is engaged in the performance of his official duties within the course and scope of his employment with the United States, this State, or any political subdivision of either;
(3)	A person engaged exclusively in the business of obtaining and furnishing information as to the financial rating or credit worthiness of persons; and a person who provides consumer reports in connection with:
a.	Credit transactions involving the consumer on whom the information is to be furnished and involving the extensions of credit to the consumer,
b.	Information for employment purposes,
c.	Information for the underwriting of insurance involving the consumer,
d.	Information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility, or
e.	A legitimate business need for the information in connection with a business transaction involving the consumer;
(4)	An attorney at law licensed to practice in North Carolina while engaged in such practice and his agent, provided said agent is performing duties only in connection with his master's practice of law;
(5)	The legal owner or lien holder, and his agents and employees, of personal property which has been sold in a transaction wherein a security interest in personal property has been created to secure the sales transaction, who engage in repossession of said personal property;
	(7)	Repealed by Session Laws 1981, c. 807, s. 1;
(8)	Employees of a licensee who are employed exclusively as undercover agents; provided that for purposes of this section, undercover agent means an individual hired by another person, firm, association, or corporation to perform a job in and/or for that person, firm, association, or corporation and, while performing such job, to act as an undercover operative, employee, or independent contractor of a licensee, but under the supervision of a licensee;
(9)	A person engaged in an alarm systems business subject to the provisions of Chapter 74D of the General Statutes of North Carolina;
(10)	A person who obtains or verifies information regarding applicants for employment, with the knowledge and consent of the applicant, and is (i) engaged in business as a private personnel service as defined in G.S. 95-47.1 or engaged in business as a private employer fee pay personnel service, (ii) engaged in the business of obtaining or verifying information regarding applicants for employment, or (iii) an employer with whom the applicant has applied for employment;
(11)	A person who is engaged in the business of providing efficiency studies to employers regarding friendliness and courtesy to consumers. An efficiency study shall not include studies to determine the honesty, integrity, or performance of any employee(s) of the business.
(12)	Research laboratories and consultants who analyze, test, or in any way apply his expertise to interpreting, evaluating, or analyzing facts or evidence submitted by another in order to determine the cause or effect of physical or psychological occurrences, and furnishes his opinion and findings to the requesting source or to a designee of requestor.
(13)	Persons working regularly and exclusively as an employee by an employer in connection with the business affairs of that employer.  If the employee is an armed private security officer and wears, carries, or possesses a firearm in the performance of his duties, the provisions of G.S. 74C-13 shall apply.
(14)	Employee of a security department of a private business which conducts investigations exclusively on matters internal to the business affairs of the business shall not be required to be licensed as a private detective."
Sec. 4.  G.S. 74C-4(g) reads as rewritten:
"(g)	All decisions heretofore made by the Private Protective Services Board, established pursuant to Chapter 74B, shall remain in full force and effect unless and until repealed or suspended by action of the Private Protective Services Board established herein. "
Sec. 5.  G.S. 74C-8 reads as rewritten:
"§ 74C-8. Applications for an issuance of license.
(a)	Any person, firm, association, or corporation desiring to carry on or engage in a private protective services profession in this State of a kind defined in G.S. 74C-3 shall make a verified application in writing to the Board.
(b)	The application shall include:
(1)	Full name, home address, post office box and business address of the applicant;
(2)	The name under which the applicant intends to do business;
(3)	A statement as to the general nature of the business in which the applicant intends to engage;
(4)	The full name and address of any partners in the business and the principal officers, directors and business manager, if any;
(5)	The names of not less than three unrelated and disinterested persons as references of whom inquiry can be made as to the character, standing, and reputation of the persons making the application;
(6)	Such other information, evidence, statements, or documents as may be required by the Board; and
(7)	Accompanying trainee permit applications only, a notarized statement signed by the applicant and his employer stating that the trainee applicant will at all times work with and under the direct supervision of a licensed private detective.
(c)	(1)	A business entity other than a sole proprietorship shall not do business under this Chapter unless the business entity has in its employ a designated resident qualifying agent who meets the requirements for a license issued under this Chapter and who is, in fact, licensed under the provisions of this Chapter, unless otherwise approved by the Board.  Provided however, that this approval shall not be given unless the business entity has and continuously maintains in this State a registered agent who shall be an individual resident in this State.  Service upon the registered agent appointed by the business entity of any process, notice or demand required by or permitted to be served upon the business entity by the private protective services board shall be binding upon the business entity and the licensee.  Nothing herein contained shall limit or affect the right to serve any process, notice or demand required or permitted by law to be served upon a business entity in any other manner now or hereafter permitted by law.  
(2)	For the purposes of the Chapter a qualifying agent means an individual in a management position who is licensed under this Chapter and whose name and address have been registered with the Administrator.
(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 Administrator within 10 working days.  The business entity must obtain a substitute qualifying agent within 30 days after the original qualifying agent ceases to serve as qualifying agent unless the Board, in its discretion, extends this period, for good cause, for a period of time not to exceed three months.
(4)	The certificate authorizing the business entity to engage in a private protective service business shall list the name of at least one designated qualifying agent.  No licensee shall serve as the qualifying agent for more than one business entity without prior approval of the Administrator, subject to the approval of the Board.
(d)	Upon receipt of an application, the Board shall conduct a background investigation during the course of which the applicant shall be required to show that he meets all the following requirements and qualifications hereby made prerequisite to obtaining a license:
(1)	That he is at least 18 years of age;
(2)	That he is of good moral character and temperate habits. The following shall be prima facie evidence that the applicant does not have good moral character or temperate habits: conviction by any local, State, federal, or military court of any crime involving the illegal use, carrying, or possession of a firearm; conviction of any crime involving the illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverages; conviction of a crime involving felonious assault or an act of violence; conviction of a crime involving unlawful breaking and/or entering, burglary,  larceny, any offense involving moral turpitude; or a history of addiction to alcohol or a narcotic drug; provided that, for purposes of this subsection, ‘conviction' means and includes the entry of a plea of guilty or no contest or a verdict rendered  in open court by a judge and/or jury;
		(4)	That he has the necessary training, qualifications, and/or experience in order to determine the applicant's competency and fitness as the Board may determine by rule for all licenses to be issued by the Board.
(e)	The Board may require the applicant to demonstrate his qualifications by oral or written examination, or both.
(f)	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 Administrator shall submit to the Board the application and his recommendations. 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 Recovery Fund, and certificate of liability insurance. 
			”		"
Sec. 6.  G.S. 74C-9 reads as rewritten:
"§ 74C-9. Form of license; term; renewal; posting; branch offices; not assignable; late renewal fee.
(a)	The license when issued shall be in such form as may be determined by the Board and shall state:
(1)	The name of the licensee,
(2)	The name under which the licensee is to operate, and
(3)	The number and expiration date of the license.
(b)	The license shall be issued for a term of one year. A trainee permit shall be issued for a term of one year. All licenses must be renewed prior to the expiration of the term of the license. Following  issuance, the license shall at all times be posted in a conspicuous place in the principal place of business, in North Carolina, of the licensee. A license issued under this Chapter is not assignable.
	(d)	The operator or manager of any branch office shall be properly licensed or registered.  The license shall be posted at all times in a conspicuous place in the branch office.  This license shall be issued for a term of one year.  Every business covered under the provisions of this Chapter shall file in writing with the Board the addresses of each of its branch offices, if any, within 10 working days after the establishment, closing, or changing of the location of any branch office.  The Administrator shall have the authority, upon the successful completion of an investigation of the application, to temporarily issue a branch office license pending approval by the Board.
(e)	The Board is authorized to charge reasonable application and license fees as follows:
(1)	A nonrefundable initial application fee in an amount not to exceed one hundred fifty dollars ($150.00);
(2)	A new or renewal license fee in an amount not to exceed two hundred fifty dollars ($250.00);
(3)	A new or renewal trainee permit fee in an amount not to exceed two hundred fifty dollars ($250.00);
(4)	A new or renewal fee for each license or duplicate license in addition to the basic license referred to in subsection (2) in an amount not to exceed fifty dollars ($50.00);
(5)	A late renewal fee to be paid in addition to the renewal fee  due in an amount not to exceed one hundred dollars ($100.00), if the license has not been renewed on or before the expiration date of the licensee;
(6)	A new, renewal, replacement or reissuance fee for a registration identification card in an amount not to exceed thirty dollars ($30.00);
(7)	An application fee for an armed private security officer firearm registration permit not to exceed fifty dollars ($50.00);
(8)	A new, renewal, replacement, or reissuance fee for an armed private security officer firearm registration permit not to exceed thirty dollars ($30.00);
(9)	An application fee for certification as a firearms trainer not to exceed fifty dollars ($50.00);
(10)	A renewal or replacement fee for firearms trainer certification not to exceed twenty-five dollars ($25.00);
(11)	A new nonresident temporary permit fee not to exceed one hundred dollars ($100.00);
(12)	An unarmed guard registration transfer fee is not to exceed  fifteen dollars ($15.00);
(13)	A branch office license fee not to exceed fifty dollars ($50.00).
(14)	A special limited guard and patrol license fee not to exceed one hundred dollars ($100.00).
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. All fees collected pursuant to G.S. 74B- 11 which have not been expended upon the effective date of this Chapter shall be transferred to the Board established by this Chapter to 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 Administrator of intended renewal, the payment of the proper fee and evidence of a policy of liability insurance 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.
(g)	Upon notification of approval of his application by the Board,  an applicant must furnish evidence that he has obtained the necessary liability insurance required by G.S. 74C-10 and obtain the license applied for or his application shall lapse.
(h)	Trainee permits shall not be issued to applicants that satisfy  the experience requirement in G.S. 74C-8(d)(3). A licensed private detective may supervise no more than five trainees at any given time.”
Sec. 7.  G.S. 74C-10 reads as rewritten:
"§ 74C-10. Certificate of liability insurance required; form and approval; suspension for noncompliance.
(a)	to (d) Repealed by Session Laws 1983, c. 673, s. 4, effective July 1, 1983.
(e)	No license shall be issued under this Chapter unless the applicant files with the Board a certificate of insurance evidencing comprehensive general liability coverage for death, bodily injury, and personal injury.  Coverage shall also include professional liability, false arrest, detention or imprisonment, malicious prosecution, libel, slander, defamation of character, and violation of the right of privacy in the amount of one hundred thousand dollars ($100,000) and three hundred thousand dollars ($300,000) per occurrence and property damage in the amount of one hundred thousand dollars ($100,000) per occurrence.
(f)	An insurance carrier shall have the right to cancel such policy of liability insurance upon giving a 30-day notice to the Board. Provided, however, that such cancellation shall not affect any liability on the policy which 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 persons registered pursuant to G.S. 74C-11 shall not be required to obtain a certificate of liability insurance.
(h)	Every licensee shall at all times maintain on file with the Board the certificate of insurance required by this Chapter in full force and effect and upon failure to do so, the license of such licensee shall be automatically suspended and shall not be reinstated until an application therefor, in the form prescribed by the Board, is filed together with a proper insurance certificate.
No cancellation or refusal to renew by an insurer of a licensee under this Chapter shall be effective unless the insurer has given the insured licensee notice of the cancellation or refusal to renew. Upon termination of insurance coverage for said licensee, the insurer shall give notice to the Administrator of the Board.
(i)	The Board may deny the application notwithstanding the applicant's compliance with this section:
(1)	For any reason which would justify refusal to issue or a suspension or revocation of a license; or
(2)	For the performance by applicant of any practice while under suspension for failure to keep this insurance certificate in force, for which a license under this Chapter is required.”
Sec. 8.  G.S. 74C-11 reads as rewritten:
"§ 74C-11. Registration of persons employed; temporary employment.
(a)	All licensees shall register their employees within 20 days of the beginning of employment of an employee who will be engaged in the providing of private protective services as an unarmed security officer, watchman, patrol personnel, or an employee of a licensed private investigator engaged in a consumer shopping service under the direct supervision of the licensee unless the Administrator, in his discretion, extends the time period, for good cause.  All licensees shall register their employees by furnishing the Board with the following:
(1)	Set(s) of classifiable fingerprints on standard F.B.I. applicant cards; recent photograph(s) of acceptable quality for identification; and
(2) 	Statements of any criminal records obtained from the appropriate authority in each area where the employee has resided within the immediately preceding 48 months.
(b)	A security guard and patrol company may not employ a guard, watchman, or other patrol personnel unless the guard, watchman, or patrol personnel is properly registered in compliance with this section, unless otherwise exempted by another provision of this Chapter.  A private investigator may not employ a consumer shopper service employee unless that employee is properly registered.
(c)	The Administrator shall be notified in writing of the termination of any employee registered under this Chapter within 10 days after said termination.
(d)	A security guard, watchman, patrol personnel or employee of a private investigator engaged in a consumer shopping service under the direct supervision of a licensee shall make application to the Administrator for a registration card which the Administrator shall issue to said applicant after receipt of the information required to be submitted by his employer pursuant to subsection (a), and after meeting any additional requirements which the Board, in its discretion, deems to be necessary. The registration card shall be in the form of a pocket card designed by the Board, shall be issued in the name of the applicant, and may have the applicant's photograph affixed thereto. The registration card shall expire one year after its date of issuance and shall be renewed every year. If a registered person changes employment to another company, the registration card shall remain valid, provided the registration transfer fee is paid to the Board.  However, if a registered employee is terminated by a licensee, the registration card is void and the employee may not work as an unarmed security officer, watchman, patrol personnel or as an employee of a licensed private investigator engaged in a consumer shopping service under the direct supervision of the licensee until he is properly transferred and the transfer fee is paid to the Board.
(e)	Notwithstanding the provisions of this section, a licensee may  employ a person properly registered or licensed as an unarmed security guard in another state for a period not to exceed 10 days in any given month; provided that such licensee, prior to employing such security guard, submits to the Administrator the name, address, and social security number of such guard, the name of the state of current registration or licensing, and the Administrator approves the employment of the guard in this State.
(f)	Notwithstanding the provisions of this section, a licensee may employ a person as an unarmed security guard for a period not to exceed 30 days in any given calendar year without registering that employee in accordance with this section; provided that the licensee submits to the Administrator a quarterly report, within 30 days after the end of the quarter in which the temporary employee worked, which provides the Administrator with the name, address, social security number, and dates of employment of such employee."
Sec. 9.  G.S. 74C-12 reads as rewritten:
"§ 74C-12.  Denial, suspension or revocation of licenses; appeal.
(a)	The Board may, after compliance with Chapter 150B of the General Statutes deny, suspend or revoke a license or registration issued under this Chapter if it is determined that the licensee or registrant has:
(1)	Made any false statement or given any false information in connection with any application for a license or trainee permit or registration or for the renewal or reinstatement of a license or trainee permit or registration;
(2)	Violated any provision of this Chapter;
(3)	Violated any rule promulgated by the Board pursuant to the authority contained in this Chapter;
	(5)	Impersonated or permitted or aided and abetted any other person to impersonate a law enforcement officer of the United States, this State, any other state, or any political subdivision of a state;
(6)	Engaged in or permitted any employee to engage in a private protective services business when not lawfully in possession of a valid license issued under the provisions of this Chapter;
(7)	Willfully failed or refused to render to a client service as agreed between the parties and for which compensation has been paid or tendered in accordance with the agreement of the parties;
(8)	Knowingly made any false report to the employer or client for whom information is being obtained;
(9)	Committed an unlawful breaking or entering, assault, battery, or kidnapping;
(10)	Knowingly violated or advised, encouraged, or assisted the violation of any court order or injunction in the course of business as a licensee;
	(12)	Undertaken to give legal advice or counsel or to in any way falsely represent that he is representing any attorney or he is appearing or will appear as an attorney in any legal proceeding;
(13)	Issued, delivered, or uttered any simulation of process of any nature which might lead a person or persons to believe that such simulation–written, printed, or typed–may be a summons, warrant, writ or court process, or any pleading in any court proceeding;
(14)	Failed to make the required contribution to the Private Protective Services Recovery Fund or failed to maintain the certificate of liability insurance required by this Chapter;
(15)	Violated the firearm provisions set forth in this Chapter;
	(17)	Failed to notify the Administrator by a business entity other than a sole proprietorship licensed pursuant to this Chapter of the cessation of employment of the business entity's qualifying agent within the time set forth in this Chapter;
(18)	Failed to obtain a substitute qualifying agent by a business entity within 30 days after its qualifying agent has ceased to serve as the business entity's qualifying agent;
(19)	Been judged incompetent by a court having jurisdiction under Chapter 35A or former Chapter 35 of the General Statutes or committed to a mental health facility for treatment of mental illness, as defined in G.S. 122-36(d), by a court having jurisdiction under Article 5A of Chapter 122 of the General Statutes ;
(20)	Failed or refused to offer a report to a client within 30 days of the client's request;
(21)	Been previously denied a license or registration under this Chapter or previously had a license or registration revoked for cause;
(22)	Conducted a private protective services business under a name other than the name under which the license was obtained under the provisions of this Chapter;
(23)	Divulged to any person except as he may be required by law, any information acquired by him except at the direction of the employer or client for whom the information was obtained.  A licensee may divulge to any law enforcement office or district attorney or his representative any information the law enforcement officer may require incident to investigation of any criminal offense;
(24)	Held himself out as employed by or licensed by the State Bureau of Investigation or any other governmental authority;
(25)	Lacks good moral character or temperate habits.  The following shall be prima facie evidence that the individual does not have good moral character or temperate habits:  conviction by any local, state, federal, or military court of any crime involving the illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverages; conviction of a crime involving felonious assault or an act of violence; conviction of a crime of fraud, conviction of a crime involving unlawful breaking and/or entering, burglary, larceny; any offense involving moral turpitude; or a history of addiction to alcohol or a narcotic drug; provided that, for purposes of this subsection, 'conviction' means and includes the entry of a plea of guilty, plea of no contest, or a verdict rendered in open court by a judge and/or jury;
(26)	Every advertisement by a licensee soliciting or advertising for business shall contain his name as it appears in the records of the Board and the name in which the license was issued;
(27)	No person licensed under the provisions of this Chapter as a private detective shall wear, carry, or accept any badge or shield purporting to indicate that such person is a private detective or private investigator.
(b)	The revocation or suspension of a license or registration by the Board as provided in subsection (a) shall be in writing, signed by the Administrator of the Board stating the grounds upon which the Board decision is based.  The aggrieved person shall have the right to appeal from this decision as provided in Chapter 150B of the General Statutes.
(c)	(1)	No sworn court official shall be licensed or registered under this Chapter.
(2)	No holder of a company police commission under Chapter 74A of the General Statutes of North Carolina shall be licensed under this Chapter."
Sec. 10.  G.S. 74C-13 reads as rewritten:
"§ 74C-13. Firearms and Security Officer Training.
(a)	It shall be unlawful for any person performing the duties of an armed private security officer to carry a firearm in the performance of those duties without first having met the qualifications as set forth in this section and having been issued a firearm registration permit by the Board. For the purposes of this section, the following terms are defined:
(1)	‘Armed private security officer' means an individual employed by a contract security company or a proprietary security organization whose principal duty is that of an armed security guard, patrol, or watchman; armed armored car service guard; alarm system company responder; private detective; or armed courier service guard who at any time wears, carries, or possesses a firearm in the performance of his or her duties.
(2)	‘Contract security company' means any person, firm,association, or corporation engaging in a private protective  services business as defined in this Chapter which provides said services on a contractual basis for a fee or other valuable consideration to any other person, firm, association, or corporation.
(3)	‘Proprietary security organization' means any person, firm, association, or corporation or department thereof which employs watchmen, security guards or patrol personnel, alarm responders, armored car personnel, or couriers who are employed regularly and exclusively as an employee by an employer in connection with the business affairs of such employer.
(b)	It shall be unlawful for any person, firm, association, or corporation and its agents and employees to employ an armed private security officer and knowingly authorize or permit him to carry a firearm during the course of performing his duties as an armed private security officer if the Board has not issued him a firearm registration permit under this section or if the person, firm, association, or corporation permits an armed private security officer to carry a firearm during the course of performing his duties whose firearm registration permit has been suspended, revoked, or has otherwise expired:
(1)	A firearms registration permit will grant authority to the armed security officer, while in the performance of his duties or travelling directly to and from work, to carry a standard .38 caliber or .32 caliber revolver or any other firearm approved by the Board and not otherwise prohibited by law. The use of any firearm not approved by the Board is prohibited.
(2)	All firearms carried by authorized armed security officers in the performance of their duties shall be owned or leased by the employer. Personally owned firearms shall not be carried by an armed security officer in the performance of his duties.
(c)	The applicant for an armed private security officer firearm registration permit shall submit an application to the Board on a form provided by the Board.
(d)	Each armed private security officer firearm registration permit issued under this section shall be in the form of a pocket card designed by the Board and shall identify the contract security company or proprietary security organization by whom the holder of the firearm registration permit is employed. An armed private security officer firearm registration permit expires one year after the date of its issuance and must be renewed annually unless the permit holder's employment terminates before the expiration of the permit.
(e)	If the holder of an armed private security officer firearm registration permit terminates his employment with the contract security company or proprietary security organization, the firearm registration permit expires and must be returned to the Board within 15 working days of the date of termination of the employee.
(f)	A contract security company or proprietary security organization shall be allowed to employ an individual for 30 days as an armed private security officer pending completion of the firearms training required by this Chapter, if the contract security company or proprietary security organization obtains prior approval from the Administrator. The Board and the Attorney General shall provide by rule the procedure by which a contract security company or a proprietary security organization applicant may be issued a temporary firearm registration permit by the Administrator of the Board pending a determination by the Board of whether to grant or deny an applicant  a firearm registration permit.
(g)	The Board may suspend, revoke, or deny a firearm registration permit if the holder or applicant has been convicted of any crime involving moral turpitude or any crime involving the illegal use, carrying, or possession of a deadly weapon or for violation of this section and/or rules promulgated by the Board to implement this section. The Administrator may summarily suspend a firearm registration permit pending resolution of charges involving the illegal use, carrying, or possession of a firearm lodged against an armed private security officer.
(h)	The Board and the Attorney General shall establish a training program for armed security officers to be conducted by agencies and institutions approved by the Board and the Attorney General. The Board and the Attorney General may approve training programs conducted by contract security companies and the security department of a proprietary security organization, if the contract security companies or security department of a propriety proprietary security organization offers the courses listed in subsection (1) of this paragraph (h) and if the instructors of the training program are certified trainers  approved by the Board and the Attorney General:
(1)	The basic training course approved by the Board and the Attorney General shall consist of a minimum of four hours of classroom training which shall include:
a.	Legal limitations on the use of hand guns and on the powers and authority of an armed private security officer,
b.	Familiarity with this section,
c.	Range firing and procedure and hand gun safety and maintenance, and
d.	Any other topics of armed private security officer training curriculum which the Board deems necessary.
(2)	An applicant for an armed security officer firearm registration permit must fire a minimum qualifying score to be determined by the Board and the Attorney General on any approved target course approved by the Board and the Attorney General.
(3)	An armed security officer must complete a refresher course and shall requalify on the prescribed target course prior to  the renewal of his firearm registration permit.
(4)	The Board and the Attorney General shall have the authority to promulgate all rules necessary to administer the provisions of this section concerning the training requirements of this section.
(i)	The Board may not issue an armed private security officer registration permit to an applicant until the applicant's employer submits evidence satisfactory to the Board that:
(1)	He has satisfactorily completed an approved training course.
(2)	He meets all the qualifications established by this section and by the rules promulgated to implement this section.
(3)	He is mentally and physically capable of handling a firearm within the guidelines set forth by the Board and the Attorney General.
(j)	The Board and the Attorney General are authorized to prescribe reasonable rules to implement this section, including rules for periodic requalification with the firearm and for the maintenance of records relating to persons issued a firearm registration card by the Board.
(k)	All fees collected pursuant to G.S. 74C-13(c) and (d) shall be  expended, under the direction of the Board, for the purpose of defraying the expense of administering the firearms provisions of this Chapter.
(l)	The Board and the Attorney General shall establish a training program for certified trainers to be conducted by agencies and institutions approved by the Board and the Attorney General.  The Board or the Attorney General shall have the authority to promulgate all rules necessary to administer the provisions of this section.
(1)	The Board and the Attorney General shall also establish renewal requirements for certified trainers.
(2)	No certified trainer shall certify an armed security officer unless the armed security officer has successfully completed the training requirements set out above in G.S. 74C-13(h).
(m)	The Board and the Attorney General shall establish a training program for unarmed security officers to be conducted by agencies and institutions approved by the Board and the Attorney General.  The Board and the Attorney General shall have the authority to promulgate all rules necessary to administer the provisions of this section."
Sec. 11.  G.S. 74C-15(b) reads as rewritten:
"(	."
Sec. 12.  G.S. 74C-16 reads as rewritten:
"§ 74C-16. Prohibited acts.
		(c)	It shall be unlawful for anyone not licensed and/or registered  as required under this Chapter to:
(1)	Advertise or to hold himself out to be a licensee;
(2)	Advertise or to hold himself out to perform services for which a license is required when, in fact, the individual is not licensed or registered in accordance with this Chapter.
		(e)	No licensee shall hold himself out as employed by or licensed by the State Bureau of Investigation.
(f)	No sworn court official shall be licensed or registered under this Chapter."
Sec. 13.  Chapter 74C is amended by adding a new section to read:
"§ 74C-21.  Law enforcement officer provisions.
(a)	No law enforcement officer of the United States, this State, any other state, or any political subdivision of a state shall be licensed as a private detective or security guard and patrol business licensee under this Chapter.
(b)	An off-duty law enforcement officer may be employed during his off-duty hours by a licensed security guard and patrol company on an employer-employee basis.  An off-duty law enforcement officer shall not wear his police officer's uniform or use the police equipment while working for a security guard and patrol company.
(c)	A law enforcement officer may provide security guard and patrol services on an individual employer-employee basis to a person, firm, association, or corporation which is not engaged in a security guard and patrol business."
Sec. 14.  G.S. 74C-31(a) reads as rewritten:
"(a)	The Fund shall serve as a guaranty for the obligations of those licensed under this Chapter. The Fund's liability, as guaranty, is contingent upon a licensee or trainee defaulting upon an obligation owed to a person by the licensee or trainee where said obligation was entered into by the licensee or trainee within the scope of the licensee's or trainee's employment in providing private protective services.  The aggrieved party must exhaust all civil remedies against the licensee or trainee or the estate of the licensee or trainee before seeking reimbursement from the Fund.  The following shall be excluded from reimbursable losses:
(1)	Losses of spouses, children, parents, grandparents, siblings, partners, associates and employees of the licensee or trainee causing the losses;
(2)	Losses covered by any bond, surety agreement, or insurance contract to the extend covered thereby; and
(3)	Losses which have been otherwise received from or paid by or on behalf of the licensee who defaulted on an obligation."
Sec. 15.  This act shall become effective October 1, 1989.