March 8, 2011, Introduced by Senator BOOHER and referred to the Committee on Regulatory Reform.
A bill to license and regulate persons engaged in the security
business; to protect the general public against unauthorized,
unlicensed, and unethical operations by persons engaged in the
security business; to establish minimum qualifications for persons
engaged in the security business; to impose certain fees; to create
the security guard fund; to prescribe the powers and duties of
certain state agencies and departments; and to provide for remedies
and penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"security guard act".
Sec. 3. As used in this act:
(a) "Bodyguard" means any person, working for a fee or other
consideration, whose primary responsibility is to protect an
individual from physical harm from another person, whether the
individual under protection is on-premises or is in transit from 1
location to another.
(b) "Department" means the department of energy, labor, and
economic growth.
(c) "Licensee" means a person licensed under this act.
(d) "Patrol service" means any person roving on foot or in a
vehicle who, for a fee or other consideration, provides security
for persons or property by observation, direct or indirect
intervention, or both.
(e) "Person" means an individual, partnership, limited
liability company, corporation, or other legal entity.
(f) "Security alarm act" means the security alarm act, 1968 PA
330, MCL 338.1051 to 338.1092.
(g) "Security business" means a person engaged in arranging
for or providing any of the following services:
(i) Security guard.
(ii) Security consultant.
(iii) Bodyguard.
(iv) Patrol service.
(v) Security management.
(h) "Security consultant" means a person that, for a fee or
other consideration, does any of the following for another person:
(i) Directly or indirectly aids in the evaluation, development,
or implementation of security policies, security procedures, or
security systems.
(ii) Engages in security management.
(iii) Engages in the hiring, training, or deployment of security
guards.
(i) "Security guard" or "security guard agency" means a
person, or an employee of that person, that provides protection for
persons or property on the premises of another.
(j) "Security management" means a person that, for a fee or
other consideration and by contract or agreement, provides
security-related evaluation, oversight, or supervision or trains
security guards for deployment. Security management does not
include a person acting as a security administrator who is employed
under a bona fide employer-employee relationship to oversee
security operations for another.
(k) "Security system" means a detection device or an assembly
of equipment and devices arranged to signal the presence of a
hazard requiring urgent attention or to detect an unauthorized
intrusion. Security system includes a system to which police or
other persons are expected to respond or a camera system that uses
a public communication to transmit a video signal.
Sec. 5. (1) A person shall not engage in, offer to engage in,
or advertise to be in the business of security guard, security
guard agency, security consultant, security management, bodyguard,
or patrol service without first obtaining a license as a security
guard or security guard agency under this act. This act does not
prevent a security alarm agent or contractor licensed under the
security alarm act from evaluating, developing, selling, or
servicing security systems. This act does not apply to a private
college security force regulated by sections 37 to 42 of the
security alarm act, MCL 338.1087 to 338.1092.
(2) An individual employed as a law enforcement officer in any
capacity for any department or unit of government within Michigan
on the effective date of this act is not eligible for initial
licensure under this act. However, a law enforcement officer
described in this subsection who has a license as a security guard
or security guard agency issued under the security alarm act may
retain that license and may renew that license under this act
rather than the security alarm act.
(3) Subsection (1) does not exempt a professional investigator
licensed under the professional investigator licensure act, 1965 PA
285, MCL 338.821 to 338.851, from obtaining a license under this
act if that person performs the services of a security business.
However, a licensed professional investigator may act as a
bodyguard without being licensed under this act. For the purpose of
protecting persons or property, a security guard may respond to a
burglar, fire, or supervisory alarm for the purpose of securing the
property and ensuring the safety of others in or on that property.
The responding security guard may, if it is his or her duty, review
alarm history, reset the alarm, and, if authorized, perform other
normal end-user tasks including bypassing a protected zone if
necessary in order to reset the alarm system. The security guard
shall not, for any reason, physically alter or service the alarm
system.
(4) If an applicant submits a completed application and the
appropriate application and license fee and is determined qualified
by the department, the department shall issue the applicant a
license to conduct business as a security guard or security guard
agency for a period of 2 years from the date of issuance. If a
license to conduct business as a security guard or security guard
agency is issued to a person, that licensee is not required to
obtain any other license to conduct the business as a security
guard or security guard agency from a municipality or political
subdivision of this state.
Sec. 7. (1) The department shall issue a license to conduct
business as a security guard or security guard agency if it is
satisfied that the applicant, if the applicant is an individual, or
the individual who is the sole or principal license holder of the
applicant if the applicant is a person that is not an individual,
demonstrates, in a manner acceptable to the department, all of the
following qualifications:
(a) Is not less than 25 years of age.
(b) Has a high school education or its equivalent.
(c) If the individual is a licensee under the security alarm
act whose license was issued after March 28, 2001, has not been
convicted of a felony.
(d) If the individual is a licensee under the security alarm
act whose license was issued on or before March 28, 2001, has not
been convicted of a felony in the 5-year period preceding the date
of application.
(e) Was not convicted of an offense listed in section 15(1)(c)
in the 5-year period preceding the date of application.
(f) Has not been dishonorably discharged from a branch of the
United States military service.
(g) Meets 1 or more of the following:
(i) Held a license to conduct a security guard or security
guard agency business in another state for a period of at least 3
years.
(ii) Was lawfully engaged in the security guard or security
guard agency business for at least 4 years as an employee of the
holder of a license to conduct a security guard or security guard
agency business; has at least 4 years of full-time field
experience; and has at least 4 years of experience in a bona fide
management capacity that included direct supervision over multiple
security guards with full line authority including the ability to
hire and fire.
(iii) Was lawfully engaged in law enforcement employment as a
certified police officer on a full-time basis for at least 4 years
for a city, county, or state government or for the United Stated
government; and either is a graduate with a baccalaureate degree or
its equivalent in the field of police administration, criminal
justice, or industrial security from an accredited college or
university or has 2 years of experience in a bona fide management
capacity that included direct supervision over multiple security
guards with full line authority including the ability to hire and
fire.
(iv) Is a graduate with a baccalaureate degree or its
equivalent in the field of police administration, criminal justice,
or industrial security from an accredited college or university;
and for a period of 2 years on a full-time basis either engaged in
the private security guard or security guard agency business as an
employee of the holder of a license to conduct a security guard or
security guard agency business, including at least 2 years of
experience in a bona fide management capacity that included direct
supervision over multiple security guards with full line authority
including the ability to hire and fire, or engaged on his or her
own account as a security administrator or loss prevention manager
in private business.
(h) Has provided the department the bond or insurance required
under subsection (5) or (6).
(i) Has not been adjudged insane, unless he or she has been
adjudged restored to sanity by court order.
(j) Is not subject to any outstanding warrants for his or her
arrest.
(2) If a person now doing or seeking to do business in this
state is applying for a license under this act, the applicant or
the resident manager of the applicant shall comply with the
applicable qualifications of this section.
(3) The department shall prepare a uniform application for a
license under this act. An applicant or resident manager of the
applicant shall sign and verify the application. The application
shall contain at least all of the following:
(a) The name and principal address where the applicant or
resident manager is located in this state.
(b) The address and location of any branch office of the
business.
(c) The certificate of incorporation of the applicant, if the
applicant is a corporation, or any other similar organizational
documents of the applicant, if applicable.
(4) An individual applicant shall submit 2 passport-quality
photographs with the application. If the applicant is a person
other than an individual, the resident manager of the business
shall submit 2 passport-quality photographs of himself or herself
with the application.
(5) The department shall not issue a license under this act if
the applicant does not pay the department in full for each license
fee and does not comply with subsection (6) or provide a bond to
the department that meets all of the following:
(a) Is in the principal amount of $25,000.00.
(b) Is payable to the department for the benefit of the people
of this state and any person injured by the willful, malicious, and
wrongful act of the licensee or any of his or her agents or
employees.
(c) Is conditioned on the faithful and honest conduct of the
business by the applicant.
(d) Is approved by the department.
(6) In lieu of a bond required under subsection (5), an
applicant may furnish a policy of insurance issued by an insurer
authorized to do business in this state that names the licensee and
the state as coinsured in the amount of $25,000.00 for property
damage, $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.
(7) A person may bring an action on a bond described in
subsection (5) or an insurance policy described in subsection (6)
in his or her own name to recover damages suffered by reason of a
licensee's wrongful act.
Sec. 9. (1) If it receives a completed application for a
license under this act and the application fee, the department
shall investigate the applicant's qualifications for licensure in
the manner provided under this section.
(2) The department shall require that an applicant for a
license under this act obtain reference statements from 5 reputable
citizens who have known the applicant for a period of at least 5
years, who can attest that the applicant is honest, of good
character, and competent, and who are not related or connected to
the applicant by blood or marriage. An application and
investigation are not considered complete until the applicant has
received the approval of the prosecuting attorney and the sheriff
of the county in this state in which the principal office of the
applicant is or will be located. If the office is or will be
located in a city, township, or village, the applicant may obtain
the approval of the chief of police instead of the sheriff. Similar
approval is required for branch offices and branch managers.
(3) The department shall not provide final approval of a
license application unless all of the following conditions are met:
(a) Verification that all of the requirements of section 7 are
met.
(b) The completion of the investigation of any employees of
the licensee as described in section 25.
(c) Confirmation of compliance with the bonding or insurance
requirements under section 7.
(4) If a person has not previously been denied a license or
has not had a previous license suspended or revoked, the department
shall issue a temporary license to an applicant that meets the
bonding or insurance requirements under section 7. A temporary
license is valid until the applicant meets or fulfills the
conditions imposed in subsection (3)(a) and (b), but the department
shall not issue a temporary license that is valid for more than 180
days. If the department determines during the investigation that
the applicant fails to meet any of the requirements for a license
described in this section and section 7, the department shall
revoke the temporary license.
(5) The department shall issue a license to an applicant if
the applicant meets the requirements of this act and the department
is satisfied of the good character, competence, and integrity of 1
of the following, as applicable:
(a) If the applicant is an individual, the applicant.
(b) If the applicant is a partnership, limited liability
company, corporation, or other legal entity, its individual members
or officers.
Sec. 11. (1) The department shall require that a licensee pay
a license fee that is based on the total number of employees of the
licensee at the time of the initial or renewal application as a
percentage of the total funding determined by the department as
necessary to enforce this act.
(2) A licensee that intends to open a branch office may apply
for a license for that branch. A licensee may open a branch office
only after receiving approval of the department and payment of the
appropriate license fee. A licensee shall post a license obtained
under this subsection in a conspicuous place in the branch office.
A license under this subsection for a branch office expires on the
same date as the initial or annual license.
(3) If a license is denied, revoked, or suspended, the
department shall not refund all or any part of the license fees for
the license unless the licensee demonstrates that the department
made a mistake in calculating or collecting the fee.
(4) The security guard fund is created in the state treasury.
The department shall deposit all license and application fees,
civil fines or judgments, and administrative fines 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, on appropriation, only for
enforcement and administration of this act. The department is the
administrator of the fund for auditing purposes.
(5) The department shall issue or deny an application for an
initial or renewal license within 180 days or 60 days,
respectively, after the applicant files a completed application. An
application is considered filed on the date the application is
received by any agency or department of this state. If the
department considers an application incomplete, the department
shall notify the applicant in writing, or make the information
electronically available, within 10 days after the filing of the
incomplete application, describing the deficiency and requesting
the additional information. A 180-day or 60-day period described in
this subsection is tolled from the date the department notifies the
applicant of a deficiency until the date the requested information
is received by the department. A 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) 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.
(b) The number of applications the department denied.
(7) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
licensing fees and 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 person but not from
another department or agency of this state.
Sec. 13. (1) The department shall employ a full-time security
business enforcement investigator to enforce compliance with this
act and to investigate allegations of illegal unlicensed security
business activity regulated by this act. A security business
enforcement investigator has all the powers of a peace officer.
(2) Any money appropriated to the department for costs
associated with the employment of a full-time security business
enforcement investigator described in subsection (1) shall be
appropriated by the legislature from money contained in the
security guard fund created in section 11(4). In determining the
amount of any fees required under this act, the department shall
ensure that the fees collected are sufficient to cover the actual
costs of the administration of the licensing program under this act
and the cost of the full-time dedicated security business
enforcement investigator and are used for the administration and
employment of both. The department and the department of state
police shall each issue a report to the appropriations
subcommittees that have jurisdiction over their respective
departments within 60 days after the effective date of this act
regarding whether the fees under this act are adequate to support
the licensure program and enforcement investigator under this act.
(3) A security business enforcement investigator described in
subsection (1), the department, the attorney general, the
department of state police, or a local law enforcement agency, on
its own initiative or at the request of any other person, may
investigate allegations that a person is engaging in activities
regulated under this act and is not appropriately licensed or
exempt from licensure. The entity conducting the investigation
shall report its findings to the attorney general and the county
prosecuting attorney who has jurisdiction in the location in which
the alleged violator is engaged in business. The attorney general
or county prosecuting attorney may bring an appropriate civil or
criminal action in a court of competent jurisdiction to prosecute
any person that has engaged in any activity regulated by this act
and is not appropriately licensed or exempt from licensure or to
enjoin any person from performing or attempting any activity
regulated under this act without appropriate licensure or exemption
from licensure. A court may issue an injunction without proof of
actual damage sustained by any person. Issuance of an injunction
does not prevent criminal prosecution of a violator. In addition to
issuing an injunction, a court may impose a civil fine of not more
than $25,000.00. A person that reports to the department, a local
law enforcement agency, a county prosecuting attorney, or the
attorney general regarding an allegation of unlicensed activity is
not responsible for any personal injury or property damage arising
from making the report.
Sec. 15. (1) The department shall revoke a license issued
under this act if it determines, after notice and an opportunity
for a hearing under the administrative procedures act of 1969, 1969
PA 306, MCL 24.201 to 24.328, that the licensee or his or her
manager, if the licensee is an individual, or, if the licensee is
not an individual, any of its officers, directors, or partners or
its manager, has done any of the following:
(a) Made any false statements or given any false information
in connection with an application for a license or a renewal or
reinstatement of a license.
(b) Violated any provision of this act.
(c) While licensed or employed by a licensee, been convicted
of a felony or a misdemeanor involving any of the following:
(i) Dishonesty or fraud.
(ii) Unauthorized divulging or selling of information or
evidence.
(iii) Impersonation of a law enforcement officer or employee of
the United States, this state, or a political subdivision of this
state.
(iv) Illegally using, carrying, or possessing a dangerous
weapon.
(v) Two or more alcohol-related offenses.
(vi) A controlled substance under the public health code, 1978
PA 368, MCL 333.1101 to 333.25211.
(vii) An assault.
(d) Knowingly submitted to the department any of the
following:
(i) A name other than the true name of a prospective employee.
(ii) Fingerprints that do not belong to a prospective employee.
(iii) False identifying information in connection with the
application of a prospective employee.
(2) The department shall not renew a license of a licensee who
owes any fine or fee to the department at the time of renewal.
(3) Within 48 hours after notification from the department of
the revocation of a license under this act, the licensee shall
surrender the license and the identification card issued under
section 19. A person who violates this subsection is guilty of a
misdemeanor punishable by imprisonment for not more than 93 days or
a fine of not more than $500.00, or both.
(4) Unless revocation of the license is required under this
act for the failure to comply, the department may suspend a license
issued under this act if the licensee fails to comply with any of
the requirements of this act. The department shall reinstate a
suspended license if the licensee demonstrates compliance with this
act and the licensee pays a $100.00 reinstatement fee.
Sec. 17. (1) When a licensee receives its license from the
department, the licensee shall post it in a conspicuous place in
the licensee's office.
(2) A licensee must report any change in the name or location
of the licensee's office or any branch office to the department at
least 10 days before the change becomes effective. After receiving
a report described in this subsection, the department shall prepare
and forward a license showing the change. The licensee shall return
the old license to the department within 3 business days after it
receives the new license. The department may suspend the license of
a licensee that fails to notify the department of a change in name
or location described in this subsection.
Sec. 19. (1) When it issues a license, the department shall
issue an identification card to the principal license holder, and,
if the licensee is a partner in a partnership, to each partner,
and, if the license holder is a corporation, to each resident
officer or manager. All of the following apply to an identification
card described in this subsection:
(a) The department shall prescribe the form and contents of
the identification card.
(b) The department shall recall the identification cards
issued to a licensee if its license is revoked.
(c) The department shall issue only 1 identification card for
each person entitled to receive a card. The licensee is responsible
for the maintenance, custody, and control of the identification
cards and shall not let, loan, sell, or otherwise permit
unauthorized persons or employees to use them.
(d) This section does not prevent a licensee from issuing its
own identification cards to its employees if the cards are approved
as to form and content by the department. A card issued by a
licensee shall not bear the seal of the state, and the card of an
employee shall designate him or her as "security guard" or engaged
in "loss prevention".
(2) If it receives a proper application and if sufficient
reasons are shown, the department may issue duplicates of an
original license or identification card.
(3) A licensee shall not assign a license issued under this
act. A license is considered personal to the licensee.
Sec. 21. (1) Except as provided in section 27(2), a person
shall not possess a badge or shield that indicates that the holder
is a licensed security guard or security guard agency or any other
person engaged in the security business. An unauthorized badge or
shield is subject to confiscation by a law enforcement officer.
(2) A person shall not distribute an identification card or
certificate of license in this state except as provided under this
act. A person shall not knowingly buy or receive any form of
spurious identification as a security guard or security guard
agency or any other person engaged in the security business. An
unauthorized identification card or license is subject to
confiscation by a law enforcement officer. A person who violates
this subsection is guilty of a misdemeanor punishable by
imprisonment for not more than 93 days or a fine of not more than
$500.00, or both. Each day a violation of this subsection continues
constitutes a separate offense.
Sec. 23. (1) A licensee may employ as many individuals as it
considers necessary to assist the licensee in its work as a
security guard agency. A licensee may hire temporary employees who
are not direct providers of security, including temporary event
employees to provide crowd management, ticket taking, traffic
control, or ushering or to perform other services that do not
involve protection of persons or property or place the employee in
a position of trust, at an event. All of the following apply to a
temporary event employee:
(a) A licensee may not employ him or her for more than 21 days
in connection with an event.
(b) He or she must pass the provisional background check
required by the department.
(c) He or she must wear an identification badge that
designates him or her as an "event work" or "crowd management"
employee.
(d) A temporary event employee is exempt from fingerprinting
unless he or she continues his or her employment for more than 21
days.
(e) A temporary event employee must wear the appropriate guard
agency uniform, blazer, or polo shirt.
(f) At all times during his or her employment, the licensee is
accountable for the good conduct of a temporary work employee in
the course of his or her employment.
(2) A licensee shall not employ an individual who does not
meet 1 of the following:
(a) If the individual was hired by the licensee on or before
March 28, 2001, he or she meets all of the following:
(i) Was not convicted of a felony in the 5-year period
preceding the date he or she was hired.
(ii) The qualifications described in section 7(1)(e), (i), and
(j).
(iii) Is at least 18 years of age.
(iv) Has at least an eighth grade education or its equivalent.
(b) If the individual was hired by the licensee after March
28, 2001 and before July 23, 2004, he or she meets all of the
following:
(i) The qualifications outlined in section 7(1)(c), (e), (i),
and (j).
(ii) Is at least 18 years of age.
(iii) Has at least an eighth grade education or its equivalent.
(c) If the individual is hired by the licensee on or after
July 23, 2004, he or she meets all of the following:
(i) The qualifications outlined in section 7(1)(c), (e), (i),
and (j).
(ii) Is at least 18 years of age.
(iii) Has at least a high school diploma or a GED or has
completed an educational program equivalent to a high school
education and meets both of the following:
(A) He or she demonstrates that he or she has acquired life
experience, reading, writing, communication skills, and aptitude
equivalent to or higher than a high school graduate.
(B) He or she is at least 25 years old.
(3) A licensee shall maintain and keep in this state adequate
and complete personnel information on all of its employees. A
licensee shall file a complete employee roster with the department
in a manner prescribed by the department by April 15, July 15,
October 15, and January 15 of each year for the preceding quarter.
Failure to submit an accurate roster is cause for suspension of a
license. The department shall not process a renewal application if
the department has not received a quarterly roster for each quarter
of the preceding 2-year license period.
(4) If a licensee falsely states or represents that an
individual is or has been in the licensee's employ, the department
may revoke the license.
(5) A person shall not falsely state or represent that he or
she is an agent of a licensed security guard agency. A person who
violates this subsection is guilty of a misdemeanor punishable by
imprisonment for not more than 93 days or a fine of not more than
$500.00, or both.
Sec. 25. (1) A licensee shall not knowingly employ an
individual who fails to meet the requirements of section 23. An
individual who is convicted of a felony, or any misdemeanor
described in section 15(1)(c), while in the employ of a licensee as
a security guard is not allowed to continue that employment.
(2) A licensee shall not employ an individual to provide any
security business services directly to the licensee's customers
before submitting that individual's fingerprints to the department
of state police in a manner approved by the department.
(3) A licensee shall cause fingerprints to be taken of any
prospective employee whom the licensee intends to hire to provide
any security business services directly to the licensee's customers
and shall ensure that those fingerprints are submitted to the
department of state police and the federal bureau of investigation
for a state and national criminal history background check,
accompanied by a fingerprint processing fee in the amount
prescribed in section 3 of 1935 PA 120, MCL 28.273, and any fees
imposed by the federal bureau of investigation. The department
shall use the results of the national criminal history background
check to make a fitness determination.
(4) A licensee shall request the department of state police to
conduct a background name check of each prospective employee whom
the license intends to hire to provide security business services
directly to the licensee's customers. The licensee shall obtain a
complete and signed employment application for each individual for
whom a name check is requested. The licensee shall retain the
employment application for at least 1 year after the date of its
submission. The department of state police shall conduct the
background check on receipt of a written or electronic request from
a licensee accompanied by a fee of $15.00. The department of state
police shall conduct the background check within 3 days after the
date a written request is received and within 24 hours after an
electronic request is received. Provisional clearance based on a
name check allows a licensee to employ the employee as a security
guard, for a period of time that does not exceed 90 days, pending
final clearance based on a fingerprint check under subsection (3).
If an approval is once denied, the licensee or any other licensee
may not again employ that individual as a direct provider of
security business services unless the licensee or other licensee
receives an approved fingerprint clearance for that individual. A
licensee or employee of a licensee who uses a name check obtained
under this subsection or the results of a name check requested
under this subsection for purposes other than prospective
employment or to verify the status of a current employee is guilty
of a misdemeanor punishable by imprisonment for not more than 93
days or a fine of not more than $1,000.00, or both.
Sec. 27. (1) A licensee shall not wear or allow an employee to
wear a particular type of uniform and insignia that is not approved
by the department, that deceives or confuses the public, or that is
identical with that of a law enforcement officer of the federal
government, this state, or a political subdivision of this state.
Each uniform jacket, coat, or shirt worn by a licensee or its
employees shall have a shoulder identification patch that includes
the name of the licensee. A shoulder identification patch described
in this subsection, and any emblem worn on any part of a uniform,
may be any color and must be at least 12 square inches in size. A
shoulder identification patch or emblem may not be in the shape of
a shield or any shape that is used by any public law enforcement
agency in this state. A breast patch of any color shall be at least
4-1/2 inches long and 1 inch high, with clearly legible lettering
containing the words "security", "security guard", or "loss
prevention". Shirt epaulets may be any color.
(2) A licensee or employee of a licensee may wear a badge or
shield approved by the department as part of a security guard
uniform. A badge or shield shall not be similar in shape to that of
any law enforcement officer of the federal government, this state,
or a political subdivision of this state. A badge or shield may
contain the flag of the United States of America or the scale of
justice. A uniform may include designations of rank, emblems, or
other garnishments that may be any color, except that they shall
not bear the seal of the state of Michigan.
(3) If a licensee considers alternative apparel to be more
appropriate for a location or event, the licensee may authorize
either of the following in place of a uniform described in this
section:
(a) Dress slacks and shirt with a blazer. The blazer must bear
an emblem or a crest on the left breast that includes the full name
of the licensee. The emblem or crest may be any color.
(b) Dress slacks with a button-down polo shirt. The shirt must
bear an emblem or a crest on the left breast that includes the full
name of the licensee. The polo shirt may include lettering on the
back with the words "security" or "loss prevention".
(4) In inclement weather, a licensee or employee may wear a
vinyl raincoat over a uniform described in this section. A licensee
or employee may wear a uniform hat or cap with the uniform. The hat
or cap may bear an emblem that does not include the state of
Michigan seal.
(5) A person who is not licensed or employed as a security
guard shall not display a badge or shield or wear a uniform of a
security guard. A person who violates this subsection is guilty of
a misdemeanor punishable by imprisonment for not more than 93 days
or a fine of not more than $500.00, or both.
Sec. 29. (1) An employee of a licensee shall not carry a
weapon or restraint of any kind while on duty, in uniform, or in
the course of the licensee's business unless the employee is
authorized to do so by the licensee and the employee has obtained
any license or permit and training required by this state or
required under this act.
(2) An employee of a licensee who is authorized to carry a
weapon in the course of duty and was hired by the licensee before
the effective date of this act must complete the minimum training
required by this act within 120 days after the effective date of
this act. An employee hired on or within 120 days after the
effective date of this act must complete the required training
within 120 days after the date of hire. An employee hired more than
120 days after the effective date of this act must complete
required training before carrying any weapon for which training is
required under this act.
(3) A licensee may authorize his or her employees to carry any
commercially available tactical baton or other less-than-lethal
device, an aerosol spray, or a conducted energy device, if the
baton, spray, or device is legal in this state. A licensee may
authorize his or her employees to carry a firearm or conducted
energy device, except that a security guard shall not carry a
pistol or conducted energy device without first obtaining a license
to carry a concealed pistol. A security guard shall not carry a
conducted energy device or aerosol spray without first receiving
manufacturer-authorized certification in the use of the device for
security or law enforcement personnel.
Sec. 31. (1) Before providing security without direct
supervision, an individual employed as a security guard shall
complete a minimum of 16 hours of on-the-job, site-specific
training under the immediate supervision of an experienced
supervisor and 16 hours of classroom training within the first 90
days of employment. The licensee that employed the individual shall
document, retain, and make available records indicating the
completion of the training for review by the department.
(2) The classroom training described in subsection (1) shall
include, but not be limited to, the following subjects:
(a) A minimum of 6 hours of company and position orientation
that includes minimum uniform requirements and appearance; limits
of authority and employment; persons or authorities to be contacted
in emergencies or unusual occurrences; licensee or parent company
structure that affects guards' duties; guard courtesy and public
demeanor; and report writing.
(b) A minimum of 8 hours involving defensive tactics that
include self-defense; correct use of restraining devices; pressure
point training; and verbal and sensitivity training.
(c) A minimum of 2 hours regarding emergency preparedness that
includes the general responsibilities pertaining to medical
emergencies and response; crowd control; exposure to bodily fluid;
fire prevention and safety; bomb threats; searches; weather
emergencies; chemical spills, leaks, and related waste; and
evacuation procedures.
(3) The approval of the department is required for any
programs that offer any training required of licensees or employees
of licensees under this act. The department may promulgate rules
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to establish standards and approval procedures
for those programs. If a program is not approved, the department
shall not credit any hours completed by an individual in that
program toward the requirements of subsection (1).
(4) A licensee or employee of a licensee that provides
security is not authorized to use a weapon or restraint device
while on duty unless he or she has completed the following required
training:
(a) For an aerosol spray or conducted energy device, any
manufacturer-authorized certification in the use of the device for
security or law enforcement personnel.
(b) For a tactical baton, 4 class hours of an approved program
conducted by an approved sponsor.
(c) For a restraint device, 2 class hours of an approved
program conducted by an approved sponsor.
(d) For a firearm, 16 hours of approved specialized training
in the use of a firearm for security or law enforcement personnel
conducted by an approved sponsor.
Sec. 33. If the prosecuting attorney of the county convicts a
person of a violation of this act, he or she shall, within 10 days
after the date of the conviction, submit to the department a report
that includes the date of the conviction, the name of the person
convicted, and the nature of the charge.
Sec. 35. (1) Every advertisement by a licensee soliciting or
advertising for business shall contain the licensee's business name
and address as they appear in the records of the department.
(2) If the department issues a cease and desist order to the
licensee and provides the licensee with notice of the order, a
licensee shall discontinue any advertising or the use of any
advertisement, seal, or card that the department determines may
tend to mislead the public. Failure to comply with any order of the
department under this subsection is cause for revocation or
suspension of a license.
Sec. 37. A licensee shall not use any designation or trade
name without the prior approval of the department and shall not use
any designation or trade name that implies any association with any
municipal, county, or state government or the federal government or
an agency of the federal government.
Sec. 39. (1) A licensee that has 1 or more employees shall
comply with any applicable state and federal employment laws and
shall maintain and produce written records and reports in
compliance with those laws.
(2) This act does not exempt a licensee from complying with
other applicable ordinances, rules, regulations, or laws.
Sec. 41. (1) Subject to section 11(5), a licensee may renew a
license issued under this act by submitting an application to the
department, filing a renewal surety bond or certificate of
insurance in the amount specified in section 7(5) or (6), and
paying the required renewal license fee in full.
(2) The date of a renewal license issued by the department is
the expiration date of the previously existing license. The
department may defer the renewal of a license if there is an
uninvestigated outstanding criminal complaint pending against the
licensee or a criminal case pending in any court against the
licensee.
(3) A person that fails to renew a license on or before the
expiration date of the license shall not engage in activities
regulated by this act. A person that fails to renew a license on or
before the expiration date may, within 30 days after the expiration
date, renew the license by paying the required license fee and a
late renewal fee of $25.00 to the department. If the applicant
fails to renew the license in that 30-day period, the applicant
cannot renew the license and must reapply for a license under
section 7.
Sec. 43. (1) If an individual who is a licensee or an owner of
a licensee dies, 1 of the following, as applicable, may continue
the business with which the licensee was connected for a period of
90 days:
(a) If the decedent was an individual licensee, the surviving
spouse or, if there is no surviving spouse, the executor or
administrator of the estate of the decedent.
(b) If the decedent was a partner in a partnership, the
surviving partners.
(c) If the decedent was an officer of a licensee that is not
an individual or partnership, the remaining officers of the
licensee.
(2) Within 10 days following the death of a licensee, the
department shall be notified in writing. The notification shall
state the name of the person legally authorized to carry on the
business of the deceased under subsection (1).
(3) If authorized by the department, the business of a
decedent described in subsection (1) may be carried on for a longer
period of time than the 90-day period described in subsection (1)
if necessary to complete any business commitments pending when the
decedent died.
(4) This section does not restrict the sale of the business of
a licensee if the licensee or an owner of the licensee dies, if the
buyer qualifies for a license under this act.
Sec. 45. (1) If it receives a complaint concerning a potential
violation of this act or a rule promulgated or order issued under
this act, the department shall immediately refer the complaint to
the security business enforcement investigator described in section
13. The security business enforcement investigator shall begin an
investigation of the allegations of the complaint and shall open a
correspondence file. Within 15 days after receiving a complaint,
the department shall notify the person that made the complaint in
writing that it received the complaint. If the department made the
complaint, the director shall designate 1 or more employees of the
department to act as the person that made the complaint.
(2) The department or the investigator shall conduct the
investigation required under subsection (1). As part of the
investigation, the department or investigator may request that the
attorney general petition the circuit court to issue a subpoena
requiring a person to appear before the department and be examined
with reference to any matter within the scope of the investigation
and to produce books, papers, or documents pertaining to the
investigation.
(3) If the report of the department or the investigator
required under section 13(3) discloses evidence of a violation of
this act or a rule promulgated or order issued under this act, the
department or the department of attorney general shall prepare the
appropriate action against the person that is the subject of the
complaint. That action may include any of the following:
(a) A formal complaint.
(b) A cease and desist order.
(c) A notice of summary suspension.
(4) At any time during its investigation or after a formal
complaint is issued, the department may bring together the
complainant and the person that is the subject of the complaint for
an informal conference. At the informal conference, the department
shall attempt to resolve issues raised in the complaint and may
attempt to aid the parties in reaching a formal settlement or
stipulation.
(5) The department may, after notice and opportunity for a
hearing under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328, issue any appropriate order, including a
suspension or revocation of the license, a limitation on a license,
or an administrative fine that does not exceed $10,000.00.
Sec. 47. (1) Unless required by law, an individual who is or
has been an employee of a licensee shall not divulge to anyone
other than his or her employer or former employer, or as the
employer directs, any information acquired by him or her during his
or her employment with respect to any of the work to which he or
she had been assigned by the employer. An employee who violates
this section or an employee who willfully makes a false report to
his or her employer in respect to any work is guilty of a
misdemeanor punishable by imprisonment for not more than 93 days or
a fine of not more than $100.00, or both, for a first offense and
punishable by imprisonment for not more than 180 days or a fine of
not more than $2,000.00, or both, for a second or subsequent
offense.
(2) A person that violates section 5(1) is guilty of a felony
punishable by imprisonment for not more than 4 years or a fine of
not more than $5,000.00, or both.
(3) If a person that is not a licensee under this act
advertises that he or she is engaged in any of the services that
are part of a security business, irrespective of the name or title
actually used by the person, the person is guilty of a felony
punishable by imprisonment for not more than 4 years or a fine of
not more than $5,000.00, or both.
(4) An employee of a licensee under this act who fails, on
demand, to surrender to the licensee his or her identification card
or any other property issued to him or her for use in connection
with his or her employer's business is guilty of a misdemeanor
punishable by imprisonment for not more than 93 days or a fine of
not more than $100.00, or both.
(5) An employee of a licensee who violates section 29 is
guilty of felony punishable by imprisonment for not more than 4
years or a fine of not more than $5,000.00, or both.
Sec. 49. The director of the department may promulgate rules
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to implement, administer, and enforce this act.
Sec. 51. (1) This act does not impair or affect any act done,
offense committed, or right accruing, accrued, or acquired or any
penalty, forfeiture, or punishment incurred before the effective
date of this act.
(2) If the director of the department is directed or
authorized under this act to promulgate rules, and rules exist on
the date the requirement to promulgate rules takes effect that the
director of the department believes adequately cover the subject
matter, the director of the department may determine that new rules
are not required or may delay the promulgation of new rules until
he or she considers it advisable. Those rules promulgated under the
security alarm act and in effect on the effective date of this act
shall remain in effect until rescinded or otherwise changed
according to law, as provided for in section 31 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.231.
(3) A reference in any application, document, authorization,
order, license, or other document issued or provided by the
department or its authorized agent to the private security business
and security alarm act, 1968 PA 330, MCL 338.1051 to 338.1092, is
considered to be a reference to this act.
Sec. 53. This act takes effect 12 months after the date it is
enacted into law.
Sec. 55. This act does not take effect unless Senate Bill No.
239 of the 96th
Legislature is enacted into law.