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Michigan Compiled Laws Complete Through PA 280 of 2014
House: Adjourned until Wednesday, July 30, 2014 12:00:00 PM
Senate: Adjourned until Wednesday, August 13, 2014 12:00:00 PM

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Section 338.1059

PRIVATE SECURITY BUSINESS AND SECURITY ALARM ACT (EXCERPT)
Act 330 of 1968

***** 338.1059 THIS SECTION IS AMENDED EFFECTIVE AUGUST 20, 2014: See 338.1059.amended *****



338.1059 License; issuance; fees; bond; insurance; term; form; additional license for branch office; refunds; receipt of completed application; issuance of license within certain time period; report; security business fund; “completed application” defined.

Sec. 9.

(1) The department, when satisfied of the good character, competence, and integrity of the applicant, or if the applicant is a firm, company, partnership, limited liability company, or corporation, of its individual members or officers, or, if the applicant is a private college or university, of its governing board, shall issue to the applicant a license. The issuance of the license is conditioned upon the applicant's paying to the department for each license $200.00 if a sole proprietorship, or $300.00 if a private security guard firm, company, partnership, limited liability company, or corporation, or $500.00 if a security alarm system contractor, and upon the applicant's executing, delivering, and filing with the department a bond in the sum of $25,000.00. The bond shall be conditioned upon the faithful and honest conduct of the business by the applicant and shall be approved by the department. In lieu of a bond, the applicant may furnish a policy of insurance issued by an insurer authorized to do business in this state naming the licensee and the state as coinsureds in the amount of $25,000.00 for property damages, $100,000.00 for injury to or death of 1 person, and $200,000.00 for injuries to or deaths of more than 1 person arising out of the operation of the licensed activity. The license is valid for 2 years but is revocable at all times by the department for cause shown. The bonds shall be taken in the name of the people of the state and a person injured by the willful, malicious, and wrongful act of the licensee or any of his or her agents or employees may bring an action on the bond or insurance policy in his or her own name to recover damages suffered by reason of the wrongful act. The license certificate shall be in a form to be prescribed by the department.

(2) If a licensee desires to open a branch office, he or she may receive a license for that branch following approval as required in section 7 and payment to the department of an additional fee of $50.00 for each private security guard branch office license and $100.00 for each security alarm system contractor branch office license.

(3) The additional license issued under subsection (2) shall be posted in a conspicuous place in the branch office and shall expire on the same date as the initial license.

(4) Subject to subsection (5), if the license is denied, revoked, or suspended for cause, no refund shall be made of the license fees or a part of the license fees.

(5) Beginning July 23, 2004, the department shall issue an initial or renewal license not later than 180 days after the applicant files a completed application. Receipt of the application is considered the date the application is received by any agency or department of the state of Michigan. If the application is considered incomplete by the department, the department shall notify the applicant in writing, or make the information electronically available, within 30 days after receipt of the incomplete application, describing the deficiency and requesting the additional information. The 180-day period is tolled upon notification by the department of a deficiency until the date the requested information is received by the department. The determination of the completeness of an application does not operate as an approval of the application for the license and does not confer eligibility of an applicant determined otherwise ineligible for issuance of a license.

(6) If the department fails to issue or deny a license within the time required by this section, the department shall return the license fee and shall reduce the license fee for the applicant's next renewal application, if any, by 15%. The failure to issue a license within the time required under this section does not allow the department to otherwise delay the processing of the application, and that application, upon completion, shall be placed in sequence with other completed applications received at that same time. The department shall not discriminate against an applicant in the processing of the application based upon the fact that the license fee was refunded or discounted under this subsection.

(7) Beginning October 1, 2005, the director of the department shall submit a report by December 1 of each year to the standing committees and appropriations subcommittees of the senate and house of representatives concerned with occupational issues. The director shall include all of the following information in the report concerning the preceding fiscal year:

(a) The number of initial and renewal applications the department received and completed within the 180-day time period described in subsection (5).

(b) The number of applications denied.

(c) The number of applicants not issued a license within the 180-day time period and the amount of money returned to licensees and registrants under subsection (6).

(8) The fees collected by the department under this section shall be deposited into the security business fund created in subsection (9).

(9) The security business fund is created within the state treasury. The department shall deposit all license fees collected under this act into the fund. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments. Money in the fund at the close of the fiscal year shall remain in the fund and be available for appropriation and expenditure by the department in subsequent fiscal years. The money in the fund shall not lapse to the general fund. The department shall expend money from the fund, upon appropriation, only for enforcement and administration of this act.

(10) As used in this section, "completed application" means an application complete on its face and submitted with any applicable licensing fees as well as any other information, records, approval, security, or similar item required by law or rule from a local unit of government, a federal agency, or a private entity but not from another department or agency of the state of Michigan.


History: 1968, Act 330, Imd. Eff. July 12, 1968 ;-- Am. 1975, Act 190, Imd. Eff. Aug. 5, 1975 ;-- Am. 2000, Act 411, Eff. Mar. 28, 2001 ;-- Am. 2002, Act 473, Eff. Oct. 1, 2002 ;-- Am. 2004, Act 270, Imd. Eff. July 23, 2004 ;-- Am. 2010, Act 68, Imd. Eff. May 13, 2010


© 2009 Legislative Council, State of Michigan