A BILL TO BE ENTITLED
AN ACT amending various provisions under the private protective services act, reducing the number of members on the private protective services board, authorizing the Board to establish continuing education requirements, and decreasing the required minimum balance in the private protective services recovery fund.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 74C‑3(a)(3) reads as rewritten:
"…
(3)	"Electronic countermeasures 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.
…."
SECTION 2.  G.S. 74C‑3(a)(6) reads as rewritten:
"…
(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 or being escorted between 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.
…."
SECTION 3.  G.S. 74C‑4(b) reads as rewritten:
"(b)	The Board shall consist of nine members: the Attorney General or his designated representative, one person appointed by the Attorney General, one person appointed by the Governor, three persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, and three persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives. All appointments by the General Assembly shall be subject to the provisions of G.S. 120‑121, and vacancies in the positions filled by those appointments shall be filled pursuant to G.S. 120‑122. One of those persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate and all three persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives shall be licensees under this Chapter; all other appointees may not be licensees of the Board nor licensed by the Board while serving as Board members. All persons appointed shall serve terms of three years. With the exception of the Attorney General or his designated representative, no person shall serve more than eight consecutive years on the Board, including years of service prior and subsequent to July 1, 1983. Board members may continue to serve until their successors have been appointed."
SECTION 4.  G.S. 74C‑5 is amended by adding the following new subdivisions to read:
"…
(11)	Approve training schools, instructors, and course materials for any person, firm, association, or corporation wishing to provide training described in this Chapter.
(12)	Approve a design for a badge or shield that indicates a person is licensed to engage in private protective services."
SECTION 5.  G.S. 74C‑9(b) reads as rewritten:
"(b)	The license shall be issued for a term of two, three, or five years without a fee discount. 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 licensee's principal place of business, in North Carolina, unless for good cause exempted by the Director. A license issued under this Chapter is not assignable. Before renewing a license, the Board may require a licensee to complete continuing education courses approved by the Board."
SECTION 6.  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 Director, 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)	A security guard and patrol company may not 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 Director 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 Director for an unarmed registration card which the Director 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 one year after its date of issuance and shall be renewed every year. Before renewing a registration, the Board may require a registration holder to complete continuing education courses approved by the Board. 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 Director the name, address, and social security number of the unarmed guard and the name of the state of current registration or licensing, and the Director 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 Director a quarterly report, within 30 days after the end of the quarter in which the temporary employee worked, which provides the Director with the name, address, social security number, and dates of employment of the employee, along with evidence of completion of any training requirements imposed by the Board."
SECTION 7.  G.S. 74C‑12 reads as rewritten:
"§ 74C‑12.  Denial, suspension, or revocation of license, registration, permit; duty to report criminal arrests.
(a)	The Board may, after compliance with Chapter 150B of the General Statutes, deny, suspend or revoke a license, registration, or permit issued under this Chapter if it is determined that the applicant, licensee, registrant, or permit holder has:
(1)	Made any false statement or given any false information in connection with any application for a license, registration, or permit or for the renewal or reinstatement of a license, registration, or permit;
(2)	Violated any provision of this Chapter;
(3)	Violated any rule promulgated by the Board pursuant to the authority contained in this Chapter;
(4)	Repealed by Session Laws 1989, c. 759, s. 10.
(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 profession 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;
(11)	Repealed by Session Laws 1989, c. 759, s. 10.
(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;
(16)	Repealed by Session Laws 1989, c. 759, s. 10.
(17)	Failed to notify the Director 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. 122C‑3, by a court under G.S. 122C‑271;
(20)	Failed or refused to offer a report to a client within 30 days of the client's written request after the client has paid for services rendered;
(21)	Been previously denied a license, registration, or permit under this Chapter or previously had a license, registration, or permit revoked for cause;
(22)	Engaged in a private protective services profession 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 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 officer or district attorney or his representative any information the law enforcement officer may require to investigate a criminal offense with the prior approval and consent of the client;
(24)	Fraudulently held himself out as employed by or licensed by the State Bureau of Investigation or any other governmental authority;
(25)	Intemperate habits or lacks good moral character. The acts that are prima facie evidence of intemperate habits or lack of good moral character under G.S. 74C‑8(d)(2) are prima facie evidence of the same under this subdivision;
(26)	Advertised or solicited business using a name other than that in which the license was issued;
(27)	Worn, carried, or accepted any badge or shield purporting to indicate that the person is a law enforcement officer while licensed under the provisions of this Chapter as a private investigator.
(b)	The denial, revocation, or suspension of a license, registration, or permit by the Board shall be in writing, be signed by the Director of the Board, and state 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. The aggrieved person must file the appeal within 60 days of receipt of the Board's decision.
(c)	The following persons may not be issued a license, registration, or permit under this Chapter:
(1)	A sworn court official.
(2)	A holder of a company police commission under Chapter 74E of the General Statutes.
(d)	All licensees are required to report to the Board any criminal arrests for or charges or convictions of a misdemeanor or felony for any of the following:
(1)	Crimes that have as an essential element dishonesty, deceit, fraud, or misrepresentation.
(2)	Illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverage.
(3)	Illegal use, carrying, or possession of a firearm.
(4)	Acts involving assault.
(5)	Acts involving unlawful breaking or entering, burglary, or larceny.
(6)	Any offense involving moral turpitude.
The duty to report convictions includes findings of guilt, guilty pleas, and pleas of nolo contendere. The Board must receive written notice of any arrest, charge, or criminal conviction within 30 days from the date of occurrence of any of these events. A failure to report shall be grounds for revocation of the license."
SECTION 8.  G.S. 74C‑13 reads as rewritten:
"§ 74C‑13.  Armed licensee or registered employee required to have firearm registration permit; firearms training.
(a)	It shall be unlawful for any person performing private protective services duties 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 security guard" means an individual employed by a contract security company or a proprietary security organization whose principal duty is that of an armed security watchman; armed armored car service guard; armed alarm system company responder;  or armed courier service guard who at any time wears, carries, or possesses a firearm in the performance of duty.
(1a)	"Armed private investigator" means a licensed private investigator who, at any time, wears, carries, or possesses a firearm in the performance of duty.
(2)	"Contract security company" means any person, firm, association, or corporation engaging in a private protective services profession that provides 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 security guards, 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 security guard or a private investigator and knowingly authorize or permit him to carry a firearm during the course of performing his duties as an armed security guard or a private investigator 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 security guard or a private investigator to carry a firearm during the course of performing his duties whose firearm registration permit has been suspended, revoked, or has otherwise expired:
(1)	An armed security guard firearm registration permit or private investigator firearm registration permit grants authority to the armed security guard or private investigator, while in the performance of his duties or traveling directly to and from work, to carry  any  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 guards 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 guard in the performance of his duties.
(c)	The applicant for a firearm registration permit shall submit an application to the Board on a form provided by the Board.
(d)	Each  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 security guard 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. Before renewing a permit, the Board may require a permit holder to complete continuing education courses approved by the Board.
(d1)	Each private investigator firearm registration permit issued under this section shall be in the form of a pocket card designed by the Board and shall identify the name of the private investigator. A private investigator firearm registration permit expires one year from the date of issuance and must be renewed annually. Before renewing a permit, the Board may require a permit holder to complete continuing education courses approved by the Board.
(e)	If the holder of an armed security guard 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 security guard pending completion of the firearms training required by this Chapter, if the contract security company or proprietary security organization obtains prior approval from the Director. The Board and the Attorney General shall provide by rule the procedure by which a private investigator, a contract security company, or a proprietary security organization applicant may be issued a temporary firearm registration permit by the Director 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 or rules promulgated by the Board to implement this section. The Director may summarily suspend a firearm registration permit pending resolution of charges involving the illegal use, carrying, or possession of a firearm lodged against the holder of the permit.
(h)	The Board and the Attorney General shall establish a firearms training program for licensees and registered employees 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 a contract security company and the security department of a proprietary security organization, if the contract security company or security department of a proprietary security organization offers the courses listed in subdivision (1) of this subsection 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 security guard,
b.	Familiarity with this section,
c.	Range firing and procedure and hand gun safety and maintenance, and
d.	Any other topics of armed security guard training curriculum which the Board deems necessary.
(2)	An applicant for a 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)	A firearms registrant 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  a firearm registration permit to an applicant until the applicant's employer submits evidence satisfactory to the Board that the applicant:
(1)	Has satisfactorily completed an approved training course.
(2)	Meets all the qualifications established by this section and by the rules promulgated to implement this section.
(3)	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 permit by the Board.
(k)	All fees collected pursuant to G.S. 74C‑9(e)(7) and (8) 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 subsection.
(1)	The Board and the Attorney General shall also establish renewal requirements for certified trainers. Before renewing a certification, the Board may require a certified trainer to complete continuing education courses approved by the Board.
(2)	No certified firearms trainer shall certify  a licensee or registrant unless the licensee or registrant has successfully completed the firearms training requirements set out above in subsection (h) of this section.
(m)	The Board and the Attorney General shall establish a training program for unarmed security guards 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 subsection.
(n)	A private investigator shall be permitted to carry a concealed weapon during the performance of his duties as a private investigator upon:  (i) obtaining a concealed weapon's permit issued pursuant to G.S. 14-415.11; (ii) successfully completing the firearms training course approved by the Board and the Attorney General; and (iii) having a notation affixed to the face of the firearms registration card designating that the armed private investigator is allowed to carry a concealed weapon. A private investigator who does not carry a weapon during the course of his duties as a private investigator but who wishes to carry a concealed weapon while not engaged in private investigative duties shall be permitted to do so upon completion of the requirements set forth in Article 54B of Chapter 14 of the General Statutes."
SECTION 9.  Article 1 of Chapter 74C of the General Statutes is amended by adding a new section to read:
"§ 74C-22.  Continuing education.
Before renewing a license, registration, certificate, or permit issued pursuant to this Chapter, the Board may, as it deems necessary, require a licensee or registration, certificate, or permit holder to complete continuing education courses approved by the Board. The Board shall establish, by rule, the number of hours of continuing education necessary for renewal and any other requirements for completion of continuing education courses. The Board shall have the authority to approve continuing education courses and shall consider the continuing education course criteria, including the course curriculum, the qualifications of the instructor, the potential benefit to the industry, and any other criteria the Board deems appropriate."
SECTION 10.  G.S. 74C‑30 reads as rewritten:
"§ 74C‑30.  Private Protective Services Recovery Fund created; payments to Fund; management; use of funds.
(a)	There is hereby created and established a special fund to be known as the "Private Protective Services Recovery Fund" (hereinafter Fund) which shall be set aside and maintained in the Office of the State Treasurer. Said Fund shall be used in the manner provided in this Article for the payment of claims where the aggrieved person has suffered a direct monetary loss by reason of certain acts committed by any person licensed under this Chapter.
(b)	Nothing contained in this Article shall limit the authority of  the Board to take disciplinary action against any licensee or trainee  under this Chapter, nor shall the repayment in full or all obligations to the Fund by any licensee or trainee nullify or modify the effect of any other disciplinary proceeding brought under this Chapter.
(c)	In addition to the fees provided for elsewhere in this Chapter, the Board shall charge the following fees which shall be deposited into the Fund:
(1)	On July 1, 1983, the Board shall charge every licensee and trainee possessing a license or trainee permit on that date a fee of fifty dollars ($50.00);
(2)	The Board shall charge each new applicant for a licensee or trainee permit fifty dollars ($50.00), provided that for purposes of this Article a new applicant is hereby defined as an applicant who did not possess a license or trainee permit  on July 1, 1983; and
(3)	The Board is authorized to charge each licensee and trainee an additional amount, not to exceed fifty dollars ($50.00), on July 1 of any year in which the balance of the Fund is less than twenty-five thousand dollars ($25,000), provided that any amount so assessed will be only so much as is needed to raise the level of the Fund to twenty-five thousand dollars ($25,000).
(d)	The State Treasurer shall invest and reinvest the moneys in the Fund in a manner provided by law, provided that sufficient liquidity shall be maintained to satisfy claims authorized by the Board. The proceeds from the investments shall be deposited to the credit of the Fund. The Board in its discretion, may use any and all of the proceeds from the investments or funds that exceed twenty-five thousand dollars ($25,000) for any of the following purposes:
(1)	To advance education and research in the private protective services field for the benefit of those licensed under the provisions of this Chapter and for the improvement of the industry;
(2)	To underwrite educational seminars, training centers and other educational projects for the use and benefit generally  of licensees and trainees; and
(3)	To sponsor, contract for and to underwrite any and all additional educational training and research projects of a similar nature having to do with the advancement of the private protective services field in North Carolina. The Board shall have the authority to sponsor courses given by private individuals, associations, or corporations. However, the Board shall only grant funds as necessary to offset the actual cost of the educational course. Any individual, association, or corporation receiving grant money from the Board shall make the course available to the industry at large. Any individual, association, or corporation receiving grant money from the Board and advertising the course to the industry is required to include in its advertising the following statement:  'The course is being given in whole or in part by a grant from the Private Protective Services Board.'.
(e)	By a unanimous vote of the Board, funds in the Fund in excess of fifty thousand dollars ($50,000) may be converted to offset the operating expenses of the Board. However, in converting the funds, the Board shall make findings of fact by a written order or resolution supporting the need to make the conversion."
SECTION 11.  This act is effective when it becomes law.