PROTECTIVE SERVICES/ALARM SYSTEMS LAW CHANGES. (NEW)

View NCGA Bill Details2019-2020 Session
House Bill 630 (Public) Filed Monday, April 8, 2019
AN ACT TO MAKE VARIOUS CHANGES TO THE PRIVATE PROTECTIVE SERVICES ACT AND THE ALARM SYSTEMS LICENSING ACT, AND TO CREATE CERTAIN FEES.
Intro. by McNeill, Hardister, Faircloth.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (Jul 9 2019)

SOG comments (1):

Long title change

House committee substitute to the 2nd edition changed the long title. Original long title was AN ACT TO MAKE VARIOUS CHANGES TO THE PRIVATE PROTECTIVE SERVICES ACT AND TO CREATE CERTAIN FEES.

Bill History:

H 630

Bill Summaries:

  • Summary date: Jul 8 2019 - More information

    House amendment to the 4th edition makes the following changes.

    Part I.

    Amends the proposed changes to GS 74C-4, concerning the Private Protective Services Board, to make a technical change to refer to committee "chairs" rather than committee "chairpersons."


  • Summary date: Jun 28 2019 - More information

    House committee substitute to the 3rd edition makes the following changes.

    Part I.

    Amends GS 74C-3 to provide that a licensed North Carolina private investigator, or permitted private investigator trainee who has provided at least five years of services under former GS 74C-3-(a)(8)f (defining private detective or private investigator to include engaging in the profession of or accepting employment to furnish, agree to make, or make inquiries or investigations concerning protection of individuals from serious bodily harm or death, on a contractual basis), within the immediate five years prior to July 1, 2020, may apply and receive a close personal protection endorsement (removes requirement to pay a fee and to meet all requirements for a close personal protection license upon the license renewal; also removes the exclusion of trainees). 

    Eliminates proposed GS 74C-17(e), which authorized the the Private Protective Services Board to charge costs, including reasonable attorney's fees, for any proceeding governed by the APA, GS Chapter 150B, or authorized by the enforcement provisions of this statute.


  • Summary date: May 29 2019 - More information

    House committee substitute to the 2nd edition makes the following changes.

    Adds organizational parts to the act.

    Part I.

    Places all previous provisions into Part I. Further amends GS Chapter 74C, Private Protective Services, making language gender-neutral throughout. 

    Part II.

    Retitles GS Chapter 74D, Electronic Security Systems (was Alarm Systems) and makes changes throughout the Chapter to refer to "electronic security systems" rather than "alarm systems." Amends the Chapter as follows. Makes the Chapter's language gender-neutral.

    Defines electronic security system business to include any person, firm, association or corporation that, unless exempt, (1) sells or attempts to sell an electronic security system by engaging in any personal solicitation to advise, design, or consult on specific types and specific locations of electronic security system devices and/or (2) installs, services, monitors, or responds to electrical, wireless or hardwired electronic or mechanical alarm signal devices and security systems, and integrated automation of a residence or business that includes a security element, burglar alarms, monitored access control, or cameras used to detect or observe illegal activity. Eliminates the previous exclusion of locking devices that record entry and exit data and do not transmit the data in real time so long as the provider is licensed by the Locksmith Licensing Board; instead provides for this exemption from the Chapter's provisions in GS 74D-3. Defines a qualifying agent to mean an individual who is a full-time employee in a management position licensed under the Chapter and who is registered with the Electronic Security Systems Board (Board; previously did not specify full-time employment). Establishes that a business entity required to be licensed under the Chapter is subject to the specified requirements regarding a qualifying agent (previously subject upon engaging in the business). Allows the business entity to notify the Board by letter or using the Board's online form upon its qualifying agent ceasing to perform his or her duties (previously only specified notification be in writing). Adds a new provision authorizing the Director of the Board to extend the 90-day period by which the business entity must obtain a substitute qualifying agent for an additional 30 days for good cause upon written request. Prohibits any person (rather than licensee) from serving as the qualifying agent for more than one business entity without Board approval. Makes the qualifying agent responsible for maintaining current contact information with the Board. Adds minimum qualifications for qualifying agents in addition to age, experience, and character qualifications in existing law. Requires the applicant to have successfully completed or kept current the specified technician course offered by the Electronic Security System Associations and to have proof of how in-state activities of the licensee are to be monitored. Concerning the applicant character, includes a prayer for judgement continued, adjudication withheld, or an equivalent disposition within the meaning of conviction. Eliminates the authority of the Board to require an examination of applicants. Requires out-of-state monitoring companies not licensed in any state to be licensed by the Board and register their employees, but does not require out-of-state monitoring companies licensed in another state to register their employees upon receipt by the Board of a certificate of good standing from that state.

    Regarding criminal background checks of applicants for licensure or registration, replaces references to the Department of Public Safety with the State Bureau of Investigation (SBI). Authorizes the SBI's Division of Criminal information Network to provide criminal record checks for applicants through the Board. Authorizes the SBI to charge applicants a fee for conducting the criminal history checks and specifies that the fee is to be collected by the Board and transmitted to the SBI. Makes an exception to the confidentiality provisions set forth for information obtained through an applicant's criminal history check, allowing such information to support the denial of an application or a disciplinary matter in a contested case. 

    Modifies the Chapter's exemptions as follows. Exempts installation or service (was, installation only) of an electronic alarm system on property owned or leased to the installer. Eliminates the exemptions for out-of-state monitoring companies and persons or businesses providing services to a state agency or local government for five or more years. Makes organizational and clarifying changes. 

    Renames the Alarm Systems Licensing Board the Electronic Security Systems Licensing Board (Board). Excepts the Secretary of Public Safety or a designee from the prohibition against a Board member serving more than two complete three-year consecutive terms. Makes further technical changes. 

    Modifies and adds to the powers of the Board as follows. Authorizes the Board to determine minimum qualifications and establish minimum education, experience, and training standards for registrants in addition to applicants and licensees; and conduct investigations of alleged violations to determine if unlicensed individuals or entities are in violation of the Chapter in addition to investigating licensees' and registrants' compliance with the Chapter. Authorizes the Board to issue written cease and desist orders for violations with the concurrence of the Secretary of Public Safety. Allows the Board to take disciplinary action against registrants who fail to satisfy requirements of the Chapter or the Board. Additionally, grants the Board the power to acquire, rent, encumber, and deal with real property as a private person or corporation, subject to approval of the Governor and the Council of State. Limits collateral pledged by the Board for an encumbrance to the assets, income, and revenues of the Board. Deems the regulation of electronic security business exclusive to the Board, though permits local government to require registration and reporting of businesses operating within its jurisdiction and even require revocable permits when alarm usage involves automatic signal transmission to law enforcement, which was previously located in GS 74D-11.

    Expands the investigative powers of the Secretary of Public Safety to include complaints, allegations, or suspicions of wrongdoing or violation of the Chapter involving unlicensed individuals in addition to licensed or to-be-licensed individuals. 

    Amends GS 74D-6, now limiting the statute to grounds for denial for registration (was, licensure or registration). Modifies the grounds for the denial of registration to include conviction of any crime involving the illegal use, carrying, or possession of a firearm; felonious assault or an act of violence; felonious sexual offense; felonious larceny; or felonious fraud (was, conviction of any crime involving fraud only). Defines conviction. Now provides that the specified misdemeanors, if convictions within the previous 10 years, are prima facie evidence that the applicant lacks good moral character and temperate habits. Includes in the specified misdemeanor convictions crimes involving assault (was, felonious assault) and sexual offenses. Adds to the definition of conviction. Lastly, establishes registration as a sex offender in any state as grounds for denial of registration. 

    Specifies that branch office certificates must be obtained by branch offices in the state with an electronic security systems business. Extends the period for temporary approval by the Director of the Board from 10 working days to 45 days.

    Amends the requirements to be met by the licensee of an electronic security systems business when registering the licensee’s employees with the Board under GS 74D-8 as follows. Requires the licensee to submit two sets (was, one or multiple sets) of the employee’s fingerprints, two (was, one or multiple) recent color photos for identification, and the authorized fee. Adds a provision allowing a licensee to employ an applicant as a probationary employee for 20 consecutive days. In order to continue employment as a regular employee, requires registration of the employee within 30 days after the probationary employment ends unless the Director extends the time for good cause. Requires a probationary employee to complete training and requires a criminal record check before the probationary employee engages in services. Requires the licensee to give the Director a list of probationary employees monthly and specifies information that must be provided.

    Amends GS 74D-8.1 by amending the requirements for an apprentice registration permit to no longer require applicants to be currently enrolled in high school or to have a valid driver's license. Makes a conforming deletion of the requirement that one of the applicant’s letters of recommendation be from an official at the applicant’s school.

    Amends GS 74D-9 by increasing the required minimum amount of liability insurance to: (1) $250,000 (was, $50,000) because of bodily injury or death of one person as a result of the negligent act of the principal insured or his or her agents operating in the course and scope of employment and $500,000 (was, $100,000) because of bodily injury or death of two or more persons and (2) $100,000 (was, $20,000) because of injury to or destruction of property of others as a result of the negligent act of the principal insured or his or her agents operating in the course and scope of his or her agency.

    Amends GS 74D-10 by amending instances in which the Board may suspend or revoke a license or registration as follows: (1) includes violations of any rule adopted (was, any rule promulgated) by the Board; (2) includes convictions of any felony in GS 74D-6(2) (conviction of a crime involving fraud, the illegal use, carrying, or possession of a firearm, felonious assault or an act of violence, felonious sexual offense, felonious larceny, or felonious fraud), or any crime involving moral turpitude under GS 74D-6(3) (lack of good moral character or temperate habits) (was, convictions of any crime involving moral turpitude or any other crime involving violence or the illegal use, carrying, or possession of a dangerous weapon only); (3) includes engaging in or permitting any employee to engage in any electronic security systems business without possessing a valid registration (was, a valid license); (4) clarifies that the instances include failure to maintain the required certificate of liability insurance; and (5) adds that engaging in conduct that constitutes dereliction of duty or deceiving, defrauding, or harming the public in the course of professional activities or services includes fraudulently claiming a change in business ownership, fraudulently claiming dissolution of a competing business, fraudulently claiming to be a representative of the consumers current service provider, misrepresentation of employer, or misrepresenting an upgrade of equipment as a sales tactic.

    Deletes GS 74D-13, which is an outdated provision.

    Amends GS 74D-30 by renaming the Alarm Systems Education Fund as the Electronic Security Systems Education Fund and makes additional technical and conforming changes. 

    Makes conforming changes to the act's titles.


  • Summary date: Apr 29 2019 - More information

    House committee substitute to the 1st edition makes the following changes.

    Further amends GS 74C-3 to now provide that detection of deception examiner is limited to those persons who provide the service for a fee or other valuable consideration (was, limited to the provision of the service for a fee only). Modifies the proposed provisions regarding former NC private detectives receiving a close personal protection license to now provide for their licensure upon payment of the applicable fee and proof that the private investigator has provided services pursuant to former GS 74C-3(a)(8) (concerning private detectives and private investigators) within the five years prior to July 1, 2020 (was, within five years prior to the effective date of the act).


  • Summary date: Apr 9 2019 - More information

    Amends GS 74C-3 to include persons or other entities discovering, locating, or disengaging devices intended to block the transmission of electronic signals for valuable consideration, and individuals and other entities that for valuable consideration provide security measures to ensure the safety of business executives, public officials, celebrities, or other individuals with elevated personal risk, in the definition of private protective services profession. Provides that detection of deception examiner is limited to those persons who provide the service for a fee. Removes contracts for the protection of individuals from serious bodily harm or death from the definition of private detective or private investigator. Adds digital forensics examination and defines the term to mean any individual, firm, association, or corporation which, for a fee or other valuable consideration, provides or offers to provide examination of digitally stored data to recover, image, analyze, or examine the data by using software to determine responsibility or reconstruct usage of the data. Removes persons engaged in computer or digital forensic services from those excluded from private protective services, and adds to the exclusion for persons engaged in network or system vulnerability testing to include routine service or repair. Excludes persons under contract or employed by an occupational licensing board while performing an investigation solely for that board from the definition of private protective services. Establishes that, upon proof that the private investigator has provided services pursuant to former GS 74C-3(a)(8) (concerning private detectives and private investigators) within the five years prior to the effective date of the act, a licensed NC private detective can receive a close personal protection license upon payment of the applicable fee; however, requires the private investigator to meet all requirements for a close personal protection license upon renewal of the license; applicable only to private investigators and not trainees. Effective July 1, 2020.

    Amends GS 74C-5 to further authorize the Private Protective Services Board (Board) to do four additional listed things, including adopting and publishing a code of professional conduct for licencees, registrants, certificate holders, and permit holders, the violation of which is grounds to suspend or revoke a license, registration, or permit issued pursuant to GS 74C-12.

    Amends GS 74C-7 to authorize the Secretary of Public Safety to investigate complaints, allegations, or suspicions of wrongdoing or violations of GS Chapter 74C involving unlicensed individuals, licensed individuals, or individuals to be licensed (currently, only individuals licensed and to be licensed). Authorizes the Secretary to enforce GS Chapter 74C and impose any authorized penalty against any individual or entity under investigation for and charged with a violation of the Chapter.

    Amends GS 74C-8 to extend the time period which a business entity has to find a replacement qualifying agent from 30 to 90 days, and authorizes the Board to extend the 90-day period for an additional 30 days upon the filing of a petition by the business entity and a hearing by the Board. Authorizes the Board to require a late fee of $100 for missing the deadline. Requires filing of a certificate of liability insurance with the Board to issue a license. Requires applicants to pay the initial license fee and make the required contribution to the Fund within 90 days of the date the applicant receives notice of pending licensure approval unless the Board extends the period by an additional 30 days upon the filing of a petition by the applicant and a hearing by the Board. Also amends the criminal record check requirements and qualifications, adding that conviction of any crime involving the illegal use, carrying, or possession of a firearm or other deadly weapon, and the conviction of a crime involving assault (was felonious assault) or an act of violence, are prima facie evidence that the applicant does not have good moral character or temperate habits as required by the statute.

    Amends GS 74C-9 to cross-reference GS 74C-13 (concerning firearm registration permits for licensees) and to make conforming changes.

    Amends GS 74C-10 to further require trainees supervised by licensees, carrying a firearm while engaged in private protective services activities, to obtain a liability insurance policy as specified. Authorizes a licensee to provide coverage for a trainee under the licensee's supervision, but failure to do so does not exempt the trainee from this statute. Makes technical and conforming changes.

    Amends GS 74C-11 to authorize the deployment of a properly registered or licensed armed security guard from another state by a licensee during a State of Disaster or a State of Emergency declared by the Governor upon satisfaction of specified requirements, including completion of the four-hour training course mandated by specified law and rule, qualification by the Board-certified firearms instructor based on the firearms the armed security guard intends to use, and approval of the employment by the Director of the Board. Deems such qualification valid for a period of 12 months. Prohibits the duration of deployment from exceeding the declared State of Emergency or Disaster.

    Amends GS 74C-12 to apply that statute to trainees, and to further authorize the Board to deny, suspend, or revoke a certification under that statute. Authorizes the Board to also take the disciplinary actions in that statute for violation of any State or federal firearms law and for fraudulently holding oneself out as employed or licensed by the Department of Public Safety (was, State Bureau of Investigation).

    Amends GS 74C-13 to require proprietary employers to register individuals carrying a firearm within 30 days of employment. Directs a proprietary security organization employing an armed security guard to submit to the Board an application for license, and to renew its license every two years. Authorizes the Director of the Board to summarily suspend a firearm registration permit pending resolution of charges for any crime involving moral turpitude, offenses set out in GS 74C-12, or any crime set forth in GS 74C-8(d), as amended (previously, only for charges involving the illegal use, carrying, or possession of a firearm). Requires the firearms training program under subsection (h) to cover legal limitations on the use of, and range firing and safety procedures for, firearms (was, hand guns). Makes conforming changes.

    Enacts new GS 74C-13.1. Exempts four listed classes of persons from the firearms training requirements of GS 74C-13(b), including persons who have successfully completed the North Carolina Basic Law Enforcement Training and completed the first year of probationary employment. Requires specified documentation from applicants claiming one of the exceptions. Directs the Board to deny exemptions if the applicant fails to provide documentation. Requires exempted applicants to qualify within the first three attempts on the required firearm qualification course. Failure to qualify on both courses requires the applicant to undergo the entire 20-hour course of instruction. Applicants claiming an exemption must still complete the legal instruction required in GS 74C-13(b)(1).

    Amends GS 74C-17 to apply the civil penalty limit of $2,000 as a limit on each individual violation, instead of as a general limit. Authorizes the Board to charge costs, including attorneys' fees, for any proceeding governed by GS Chapter 150B or authorized by this statute.

    Amends GS 74C-23 to require companies, firms, or corporations licensed under this Chapter to provide the Director with notice of change of ownership within 10 days (was, 60 days) prior to the effective date of the transaction and a list of all registrants and licensees affected by the transaction. Requires notice to the Director within 60 days from the effective date of the transaction, written confirmation of the completion of any necessary changes for the acquiring party to comply with this Chapter and applicable Board rules.

    Amends GS 14-269.3, regarding carrying weapons into assemblies and establishments serving alcoholic beverages, to provide that the statute does not apply to persons registered as a security guard, or hired by the owner, lessee, or person or organization sponsoring the event or a person employed by an entity licensed under GS 74C-2 who is hired by the owner, lessee, or person or organization sponsoring the event.

    Except as otherwise provided, effective July 1, 2019.


Printer-friendly: Click to view