GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 561

Short Title:  Company Police Act.	(Public)
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Sponsors: Representative Redwine.
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Referred to:  Judiciary II.
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April 1, 1991

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR THE MINIMUM STANDARDS, DUTIES, AND RESPONSIBILITIES OF COMPANY POLICE OFFICERS AND COMPANY POLICE AGENCIES.
The General Assembly of North Carolina enacts:
Section 1.  The General Statutes are amended by adding a new Chapter to read:
"Chapter 74E.
"Company Police Act.
"§ 74E-1.  Title.
This act may be cited as the 'Company Police Act'.  The purpose of this act is to ensure a minimum level of integrity, proficiency, and competence among company police officers and agencies.
"§ 74E-2.  Policy and scope.
(a)	The General Assembly finds that there is a need for a Company Police Program.  In recognition of this need the Attorney General shall be empowered to certify agencies as company police agencies and to commission officers as company police officers who shall be authorized to enforce the laws of the State of North Carolina subject to the provisions of this Chapter and such other provisions of law as may be applicable.
(b)	Any educational institution or hospital, whether public or private, or any State institution, public utility company, incorporated security patrol, or other corporation engaged in providing on-site company police security personnel services for persons or property may apply to the Attorney General for company police agency status.  Certified company police agencies may apply to the Attorney General to commission such other persons as the institution, corporation, or company may designate to act as policeman for it.  The Attorney General, upon such application, may appoint such persons or so many of them he may deem proper and qualified to be such policemen, and shall issue to the persons so appointed a commission to act as such policemen.
"§ 74E-3.  Certificate of liability insurance.
(a)	No nonpublic entity shall be certified under this Chapter without first filing with the Attorney General evidence of a liability insurance policy.  The policy must provide not less than one million dollars ($1,000,000) of coverage per incident for personal injury or property damage which results from the intentional or negligent act or acts of the principal agency or any of its agents or employees operating in the course and scope of his or her agency or under color of law.  The liability policy shall be subject to approval by the Attorney General as to form, execution, and terms therein.
(b)	An insurance carrier issuing a liability insurance policy for the purpose of this Chapter shall have the right to cancel such policy upon giving 30 days' written notice to both the principal agency and to the Attorney General.  Such written notice must be given by certified mail, return receipt requested.  Such cancellation shall not affect any liability on the policy which accrued prior to the effective cancellation date.
(c)	Every nonpublic certified agency shall, at all times, maintain on file with the Attorney General the certificate of insurance required by this Chapter in full force and effect and upon failure to do so, the certification of such agency shall be automatically suspended and shall not be reinstated until an application therefore, in the form prescribed by the Attorney General, is filed together with the proper insurance certificate.
(d)	The suspension of an agency's certification pursuant to the provisions of this section or any other provision of this Chapter or any rule promulgated by the Attorney General, shall result in the automatic and immediate suspension of the commission of each and every company police officer employed by such agency.
"§ 74E-4.  Powers of Attorney General.
In addition to the powers conferred upon the Attorney General elsewhere in this Chapter, the Attorney General shall have the power to:
(1)	Promulgate rules necessary or proper to carry out and to administer the provisions of this Chapter including the authority to require the submission of reports or information by certified employing agencies and individual commissioned officers;
(2)	Determine minimum qualifications, establish and require written or oral examinations, and establish minimum education, experience and training standards for applicants and commissioned officers and certified agencies under this Chapter;
(3)	Conduct investigations regarding alleged violations and to make evaluations as may be necessary to determine if the employing agencies and commissioned officers are complying with the provisions of this Chapter;
(4)	Approve individual and agency applications;
(5)	Issue letters of reprimand and deny, suspend, or revoke any certification or commission issued, or to be issued, under this Chapter to any agency or individual who fails to satisfy or violates the requirements of this Chapter or the rules promulgated pursuant thereto.  Any denial, suspension, or revocation shall be in accordance with Chapter 150B of the General Statutes of North Carolina;
(6)	Delegate such authority as deemed appropriate to carry out the provisions of this Chapter and such rules as may be promulgated hereunder;
(7)	Inspect records maintained by certified company police agencies; and
(8)	Appear in the name of the Company Police Program and apply to the courts having jurisdiction for injunctions to prevent violations of this Chapter or the rules promulgated pursuant thereto.
"§ 74E-5.  Records.
(a)	The Attorney General may require that the Criminal Justice Standards Division provide administrative support staff responsible for the administration and operation of the Company Police Program.
(b)	The Attorney General shall have legal custody of all books, papers, documents, or other records and property of the Company Police Program.
(c)	Any papers, documents, or other records which become the property of the Company Police Program that are placed in the company police officers' personnel file maintained by the Attorney General shall be subject to the same disclosure requirement as set forth in Chapters 126, 153A and 160A of the General Statutes regarding the privacy of personnel records.
(d)	Notwithstanding the provisions of subsection (c) herein, the Attorney General may disclose the contents of any records retained under the authority of this Chapter to the Criminal Justice Education and Training Standards Commission, the Sheriff's Education and Training Standards Commission or any Criminal Justice Agency for certification or employment purposes.
"§ 74E-6.  Oaths, powers, and authority of company police officers.
(a)	Every company police officer so appointed shall, before entering upon the duties of his office, take and subscribe an oath of office as required for law enforcement officers.  The chief, director of security or other senior operational supervisor must be a commissioned company police officer empowered under this Chapter to enforce the laws of this State.
(b)	There shall be three distinct classifications of company police officers:
(1)	Campus Police Officers - Those company police officers who are employed by any college or university that is a constituent institution of The University of North Carolina or any private college or university that is licensed or exempted from licensure as prescribed by G.S. 116-15.
(2)	Railroad Police Officers - Those company police officers who are employed by a certified rail carrier and commissioned as a police officer under the provisions of this Chapter.
(3)	Special Police Officers - All company police officers not designated as a campus police officer or railroad police officer.
(c)	Every company police officer, while in the performance of the duties of his employment, shall severally possess all the powers of municipal and county police officers to make arrests for both felonies and misdemeanors and to charge for infractions:
(1)	Upon property owned by or in the possession and control of their respective employers; or
(2)	Upon property owned by or in the possession and control of any person or persons who shall have contracted with their employer or employers to provide on-site company police security personnel services for such property; or
(3)	Upon any other premises while in continuous and immediate pursuit of any person or persons for any offense committed upon property referred to in subdivisions (1) and (2) above.
(d)	Campus Police
(1)	In addition to the power to make arrests contained in subsection (c) above, campus police officers shall have the same authority upon that portion of any public road or highway passing through or immediately adjoining the property described in subsection (c) above, wherever located.
(2)	The board of trustees of any college or university which qualifies as a campus police agency pursuant to this Chapter, may enter into mutual aid agreements with the governing board of any municipality or county (with the consent of the sheriff) to the same extent as municipal police departments pursuant to Chapter 160A.
(e)	Railroad Police
(1)	In addition to the power to make arrests contained in subsection (c) above, railroad police officers shall possess all of the powers and authority as provided by federal law and rules and regulations as may be promulgated by the United States Secretary of Transportation.
(2)	Notwithstanding any of the provisions herein, the limitations on the power to make arrests contained in subsection (c) above, shall not be applicable to railroad police officers commissioned by the Attorney General pursuant to the authority of this Chapter.
(f)	Notwithstanding any of the provisions herein, the Board of Trustees of any constituent institution of The University of North Carolina may elect to have its officers certified under Chapter 17C of the General Statutes rather than requesting certification as a company police agency and company police commissions pursuant to the provisions of this Chapter.
"§ 74E-7.  Badges, uniforms, weapons, and vehicles.
Company police agencies shall be responsible for ensuring that all employees, whether or not commissioned, comply with the provisions of this Chapter and the rules promulgated pursuant thereto, including but not limited to, those provisions pertaining to the wearing of badges and uniforms, the carrying of weapons and the operation of vehicles.
"§ 74E-8.  Minimum standards.
Applicants and commissioned officers shall meet and maintain the same minimum preemployment and in-service standards for State law enforcement officers as required by the North Carolina Criminal Justice Education and Training Standards Commission, and such other preemployment and in-service requirements as may be established and required by the Attorney General.
"§ 74E-9.  Fees.
The Attorney General is authorized to charge reasonable application, renewal, and reinstatement fees as follows:
(1)	A nonrefundable application or reinstatement fee for individual company police officer commissions, not to exceed one hundred fifty dollars ($150.00).
(2)	An initial and/or annual certification fee for each agency certified under this Chapter, not to exceed two thousand dollars ($2,000) per annum or any portion thereof.
(3)	A reinstatement fee for agencies whose certification is suspended pursuant to the provisions of this Chapter, not to exceed one thousand five hundred dollars ($1,500).
"§ 74E-10.  Company Police Fund.
(a)	All monies collected by the Attorney General pursuant to this Chapter shall be deposited forthwith in a special fund in the Office of the State Treasurer, which shall be known as the Company Police Fund.  The Attorney General will administer said fund.
(b)	Except as otherwise specifically provided by law, all receipts from applications, renewals, and reinstatements of certifications and company police commissions shall be deposited to the credit of the Company Police Fund and made available to the Attorney General until expended subject to the provisions of this section.  These monies shall be invested by the State Treasurer in interest bearing accounts as permitted by law, with such interest as may accrue being added to the Company Police Fund.  The Company Police Fund herein created shall be subject to the provisions of the Executive Budget Act, Chapter 143, Article 1 of the General Statutes of North Carolina as amended.
(c)	All monies credited to the Company Police Fund shall be made available to carry out the intent and purposes of this section in accordance with the plans approved by the Attorney General, and all such funds are hereby appropriated, reserved, set aside, and made available until expended, for the purpose of the enforcement and administration of this Chapter.
"§ 74E-11.  Compensation of company police officers.
The compensation of company police officers shall be paid by the agencies for which the officers are respectively appointed, as may be agreed on between them.
"§ 74E-12.  Immediate termination of Agency certification and/or commission.
(a)	Agency certification.
(1)	Unless sooner terminated, suspended, or revoked by the Attorney General, a company police agency's certification shall expire on June 30 next following the date of issuance of such certification.
(2)	Agencies desiring to renew their certification may do so upon the payment of the appropriate fee and compliance with the provisions of this Chapter and such rules as may be promulgated by the Attorney General.
(3)	No agency whose certification was denied or revoked for violation of this Chapter or any rules promulgated thereunder is eligible to apply again for that certification for three years.
(b)	A company police officer's commission shall be automatically and immediately revoked upon:
(1)	Termination of employment with employing agency;
(2)	Termination, suspension, or revocation of the employing agency's certification;
(3)	Failure to meet in-service training requirements as required by this Chapter or the rules promulgated by the Attorney General; or
(4)	Violation of this Chapter or any rules promulgated thereunder by the Attorney General.
(c)	No person whose company police officer's commission was revoked or denied for violation of this Chapter or any rules promulgated thereunder shall be eligible to apply for that commission for three years.
"§ 74E-13.  Immunity.
Neither the Attorney General nor any of his employees may be held criminally or civilly liable for any acts or omissions in carrying out the provisions of this Chapter or for the acts or omissions of agencies or officers certified or commissioned under this Chapter.
"§ 74E-14.  Penalties and enforcement.
(a)	No private person, firm, association, or corporation, and no public institution, agency, or other entity shall engage in, perform any services as, or in any way hold itself out as a company police agency or engage in the recruitment or hiring of company police officers, without having first complied with the provisions of this Chapter.
(b)	Any person, firm, association, or corporation, or their agents and employees violating any of the provisions of this Chapter or knowingly violating any rule promulgated to implement this Chapter shall be guilty of a misdemeanor and punishable by a fine and imprisonment for a term not to exceed two years, or both, in the discretion of the court.  The Attorney General, or his representative, shall have concurrent jurisdiction with the district attorneys of this State to prosecute violations of this Chapter.
(c)	The Company Police Program is authorized to apply in its own name to the superior court for an injunction to prevent any violation or threatened violation of the provisions of this Chapter, or any rules promulgated hereunder; and the superior courts have jurisdiction to grant the requested relief, irrespective of whether or not criminal prosecution has been instituted or administrative sanctions imposed by reasons of the violation.  The venue for actions brought under this subsection shall be in any county selected by the Attorney General.
(d)	Nothing contained in the provisions of this section shall have the effect of relieving any such company or corporation from any civil liability for the acts of such policemen, in exercising or attempting to exercise the powers conferred by this Chapter."
Sec. 2.  Chapter 74A of the General Statutes is repealed.
Sec. 3.  This act is effective upon ratification.