GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 269*

Short Title:  Private Protective Services.	(Public)
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Sponsors: Representatives McLaughlin; Barnhill, Black, Bowman, Cunningham, Easterling, Foster, Grimmer, and Nesbitt.
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Referred to:  State Government.
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March 19, 1991

A BILL TO BE ENTITLED
AN ACT TO AMEND THE PRIVATE PROTECTIVE SERVICES ACT TO REQUIRE REGISTRATION OF PROPRIETARY UNARMED GUARDS, TWO-YEAR TERMS FOR LICENSES AND REGISTRATIONS, AND TO INCREASE FEES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 74C-3 reads as rewritten:
"§ 74C-3.  Private protective services profession defined.
(a)	As used in this Chapter, the term 'private protective services profession' means and includes the following:
(1)	'Armored car profession' 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 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(2)	Repealed by Session Laws 1983, c. 786, s. 2, effective January 1, 1984.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.
(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 operating a courier service pursuant to a motor carrier certificate or permit issued by the North Carolina Utilities Commission which grants operating rights for such service; 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 that provides a security guard 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 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;
c.	Protection of patrons and persons lawfully authorized to be on the premises of the person, firm, association, or corporation that entered into the contract for security services; or
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.
(8)	'Private detective' or 'private investigator' are synonymous and mean any person who engages in the profession of or accepts employment to furnish, agrees to make, or makes inquiries or investigations concerning the below-listed topics on a contractual basis:
a.	Crimes 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; or
f.	Protection of individuals from serious bodily harm or death.
(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.
(10)	'Proprietary security officer' means any individual who is employed, in an employer-employee relationship, by a business entity that does not provide, or advertise as providing, services regulated under this Chapter, and who performs security work on the premises of, or in connection with, the business of that employer, in an unarmed capacity and wearing a uniform or displaying a badge.  If the employee is an armed security guard and wears, carries, or possesses a firearm in the performance of his duties, the provisions of G.S. 74C-13 apply.
(b)	'Private protective services' shall not mean:
(1)	Licensed 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 principal'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;
(6)	Repealed by Session Laws 1989, c. 759, s. 3;
(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 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 who is engaged in an alarm systems business subject to the provisions of Chapter 74D of the General Statutes;
(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 conducts efficiency studies.  An efficiency study is an analysis of an employer's business, made at the request of the employer, to determine one or more of the following:
a.	The most efficient procedures by which an employee of the business can perform the employee's assigned duties.
b.	The adequacy of an employee's performance of the employee's assigned duties that require interaction with a client or customer of the business.
	If a person making an efficiency study observes an instance of theft or another illegal act committed by an employee of the business, the person may report the instance to the employer without violating G.S. 74C-3(a)(8);
(12)	Research laboratories and consultants who analyze, test, or in any way apply their 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 give their opinions and findings to the requesting source or to a designee of the requestor;
(13)	
(14)	An employee of a security department of a private business that conducts investigations exclusively on matters internal to the business affairs of the business, except as provided for in subsection (a)(10) of this section."
Sec. 2.  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 two years.  A trainee permit shall be issued for a term of two years.  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 licensee's principal place of business, in North Carolina, unless for good cause exempted by the Administrator.  A license issued under this Chapter is not assignable.
(c)	Repealed by Session Laws 1989, c. 759, s. 7.
(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 two years.  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 may, upon the successful completion of an investigation of the application, issue a temporary branch office license pending approval of the application 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 two hundred dollars ($200.00);
(2)	A new or renewal license fee in an amount not to exceed five hundred dollars ($500.00);
(3)	A new or renewal trainee permit fee in an amount not to exceed five hundred dollars ($500.00);
(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 one hundred dollars ($100.00);
(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 an unarmed registration identification card in an amount not to exceed sixty dollars ($60.00);
(7)	An application fee for an armed security guard firearm registration permit not to exceed fifty dollars ($50.00); 
(8)	A new, renewal, replacement, or reissuance fee for an armed security guard firearm registration permit not to exceed sixty dollars ($60.00);
(9)	An application fee for certification as a certified trainer not to exceed fifty dollars ($50.00);
(10)	A renewal or replacement fee for certified trainer certification not to exceed fifty dollars ($50.00);
(11)	A new nonresident temporary permit fee not to exceed one hundred dollars ($100.00);
(12)	An unarmed registration transfer fee not to exceed fifteen dollars ($15.00);
(13)	A new or renewal branch office license fee not to exceed one hundred dollars ($100.00); and
(14)	A new or renewal special limited guard and patrol license fee not to exceed two hundred dollars ($200.00).
Except as provided in G.S. 74C-13(k), all fees collected pursuant to this section shall be expended, under the direction of the Board, for the purpose of defraying the expenses of administering this Chapter.
(f)	A license or trainee permit granted under the provisions of this Chapter may be renewed by the Private Protective Services Board upon notification by the licensee or permit holder to the 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 qualify for a private detective license. A licensed private detective may supervise no more than five trainees at any given time."
Sec. 3.  G.S. 74C-11 reads as rewritten:
"§ 74C-11.  Registration of permanent and temporary employees; unarmed security guard required to have registration card.
(a)	All licensees shall register their employees who will be engaged in providing private protective services covered by this Chapter with the Board within 20 days after the employment begins, unless the Administrator, in his discretion, extends the time period, for good cause.  To register an employee, a licensee must give the Board 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)	Neither a security guard and patrol company, nor a proprietary business, may employ an unarmed security guard unless the guard has a registration card issued under subsection (d) of this section.  A person engaged in a private protective services profession may not employ an armed security guard unless the guard has a firearm registration permit issued under G.S. 74C-13.
(c)	The Administrator shall be notified in writing of the termination of any employee registered under subsection (a) within 10 days after said termination.
(d)	An unarmed security guard shall make application to the Administrator for an unarmed 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 unarmed security guard 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 unarmed security guard registration card shall expire two years after its date of issuance and shall be renewed every two years. If an unarmed registered security guard is terminated by a licensee and changes employment to another security guard and patrol company, the security guard's registration card shall remain valid, provided the security guard pays the unarmed guard registration transfer fee to the Board and a new unarmed security guard registration card is issued. An unarmed security guard whose transfer registration application and transfer fee have been sent to the Board may work with a copy of the transfer application until the registration card is issued.
(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 the licensee, prior to employing the unarmed security guard, submits to the Administrator the name, address, and social security number of the unarmed guard and the name of the state of current registration or licensing, and the Administrator approves the employment of the unarmed 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. 4.  This act is effective upon ratification and applies to fees due and licenses issued or renewed on or after that date, except that proprietary security officers shall obtain a license or registration as required by this act no later than one year from the date of ratification of this act.