OCC.LIC./PRIVATE PROTECTIVE SVCS. ACT CHANGES-AB

View NCGA Bill Details2015-2016 Session
House Bill 299 (Public) Filed Wednesday, March 18, 2015
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 Burr, McNeill.

Status: Sequential Referral To Finance Added (Senate Action) (Jun 21 2016)

SOG comments (1):

Long Title Change

House committee substitute to the 1st edition makes changes to the long title. The original title was as follows:

AN ACT TO MAKE VARIOUS CHANGES TO THE PRIVATE PROTECTIVE SERVICES ACT AND TO CREATE CERTAIN FEES.

H 299

Bill Summaries:

  • Summary date: Jun 14 2016 - More information

    House amendment makes the following changes to the 3rd edition.

    Amends GS 74D-2(c), which sets out licensing requirements for a business entity that engages in the alarm system business with respect to a qualifying agent, by eliminating the proposed addition to subdivision (1) that required that if a business entity maintains a physical presence in the State, the qualifying agent must be a resident of the State.

    Reinstates GS 74D-3(4), which was eliminated in the previous edition, providing that the provisions of GS Chapter 74D (Alarm Systems) do not apply to an alarm monitoring company located in another state which demonstrates to the Board's satisfaction that it does not conduct any business through a personal representative present in the State but which solicits and conducts business solely through interstate communication facilities such as telephone messages, earth satellite relay stations, and the United States postal service. Makes a technical change.


  • Summary date: Jun 9 2016 - More information

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

    Amends GS 74C-5, concerning the powers of the Private Protective Services Board (Board), by adding three new subsections to authorize the Board to (1) adopt rules establishing standards for the use of any firearm or other weapon approved by the Board; (2) acquire, maintain, store, dispose of, and replace motor vehicles for the use of staff and investigators; and (3) adopt and publish a code of professional conduct for licensees, registrants, or permit holders, the violation of which is grounds to suspend or revoke a license, registration, or permit pursuant to GS 74C-12.

    Makes a technical change and a clarifying change to GS 74C-7.

    Amends GS 74C-8(f), concerning issuance of a license, to specify that, upon approval by the Board, a license will be issued to the applicant upon payment by the applicant of the initial license fee and required contribution to the Private Protective Services Education Fund, and filing of a certificate of liability insurance with the Board (currently, language only requires certificate of liability insurance without specifying where it is to be filed). 

    Makes a technical change to GS 74C-9(f).

    Amends GS 74C-10, concerning the requirement of certificate of liability insurance, to provide that, if a licensee or a trainee supervised by a licensee, other than a security guard and patrol, armored car, or special car, or special limited guard and patrol licensee, carries a firearm while engaged in private protective services activities, the licensee or trainee must obtain a liability insurance policy with a minimum coverage as specified (currently, does not provide for a trainee to be supervised by a licensee). Provides a licensee or trainee is deemed to be "carrying a firearm" for purposes of the statute while engaged in private protective services if the licensee or trainee has a firearm on the licensee's or trainee's person or in the automobile the licensee or trainee is using to perform private protective services (currently, does not provide for trainee). Establishes that a licensee may provide coverage for a trainee under the licensee's supervision, but failure of the licensee to provide coverage does not exempt the trainee from the requirements of the statute. Makes technical changes.

    Enacts new subsection (e1) to GS 74C-10 to require the Board to approve the form, execution, and terms of the liability insurance policy.

    Makes technical changes to GS 74C-10(f). Deletes the provision requiring the Board to approve the policy of liability as to its form, execution, and terms, and moves some of the language to new subsection (e1).

    Amends subsection (g) to provide that persons registered pursuant to GS 74C-11 are not required to obtain a certificate of liability insurance (currently, provides that the holder of any trainee permit and persons registered pursuant to GS 74C-11 are not required to obtain a certificate of liability insurance).

    Amends GS 74C-13, concerning the requirements of a firearm registration permit for armed licensees or registered employees, by adding a new subsection to prohibit the Board from knowingly issuing a firearm registration permit to an individual who is prohibited by state law from possessing a firearm.

    Amends GS 74D-2 by amending the requirement for a business entity engaging in the alarm system business to require the qualifying agent to be a state resident if the business entity maintains a physical presence in the state.

    Amends GS 74D-3, setting out exemptions from the provisions of GS Chapter 74D (Alarm Systems), by eliminating the exemption for an alarm monitoring company located in another state that demonstrates to the Alarm System Licensing Board's satisfaction that it does not conduct any business through a personal representative present in the State but that solicits and conducts business solely through interstate communication facilities. Makes technical changes.

    Amends GS 14-269.3, setting out provisions for carrying weapons into assemblies and establishments where alcoholic beverages are sold and consumed, to establish that the statute does not apply to a person registered as a security guard as defined in GS 74C-3(b)(13) who is hired (previously, a person registered or hired as a security guard) by the owner, lessee, or person or organization sponsoring the event or a person employed by a business licensed pursuant to GS 74C-2 who is hired by the owner, lessee, or person or organization sponsoring the event (previously, did not provide for person employed by a business licensed under GS 74C-2 who is hired by the owner, lessee, or person or organization sponsoring the event). 

    Makes technical change to GS 74D-5(a).

    Current GS 143-341 sets out the powers and duties of the Department of Administration in providing general services and requires the Department to establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary, and to that end, require all State agencies to transfer ownership, custody, or control of any or all passenger motor vehicles within the ownership, custody, or control of that agency to the Department. Current law excepts motor vehicles under the ownership, custody or control of the Highway Patrol, the State Bureau of Investigation, and constituent institutions of the University of North Carolina used primarily for law enforcement purposes. Adds exception for the Private Protective Services Board and the Alarm System Licensing Board. Also expands the exception for the constituent institutions of the University of North Carolina to those that are used primarily for investigative purposes in addition to the current provision for law enforcement purposes.

    Changes the effective date to August 1, 2016 (previously, July 1, 2015).


  • Summary date: May 6 2015 - More information

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

    Amends the long title.

    Amends GS 74C-5 to provide that the Private Protective Services Board (Board) has the authority to acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, only limited to the approval of the Governor and the Council of State. Provides that any collateral pledged by the Board is limited to its assets, income, and revenues.

    Amends the proposed changes to GS 74C-13 to provide that proprietary security organizations (previously, proprietary employers) that employ an armed guard are required to submit an application to the Board and requires the employer to renew its license every two years.

    Amends GS 74D-5 to provide that the authority of the Alarm Systems Licensing Board includes the power to acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, only limited to the approval of the Governor and the Council of State. Provides that any collateral pledged by the Alarm Systems Licensing Board is limited to its assets, income, and revenues.


  • Summary date: Mar 18 2015 - More information

    Amends GS 74C-5 to provide that the authority of the Private Protective Services Board includes power to conduct investigations regarding unlicensed activity and to issue cease and desist letters, with the concurrence of the Secretary of Public Safety (Secretary). Amends GS 74C-7 to provide that the Secretary's powers include the authority to investigate or cause to be investigated unlicensed individuals, as well as those who are licensed or to be licensed under GS Chapter 74C, providing those individuals are the subject of complaints, allegations or suspicions of wrongdoing, or violations of this Chapter.

    Amends the requirements for private protective services licensing in GS 74C-8 to provide that in the event that a qualifying agent upon whom a business entity relies in order to do business ceases to perform his or her duties, the business entity must obtain a substitute qualifying agent within 90 (was, 30) days, unless the Private Protective Services Board(Board) extends the 90-day period, for good cause,for an additional 30 days upon the filing of a petition by the business entity and upon a hearing by the Board. Allows the Board to require the payment of a late fee for a business entity failing to obtain a substitute qualifying agent. Requires a license applicant to pay the initial fee and make the required Private Protective Services Education Fund (Fund) contribution within 90 days from the date the applicant receives notice of pending licensure approval unless the Board extends the 90-day period, for good cause, for an additional 30 days upon the applicant filing a petition and having a hearing by the Board.

    Allows the Board to require an applicant, who fails to pay the initial license fee or fails to make a contribution to the Fund as required under this section to pay a late fee. Amends GS 74C-9 to set a $100 cap on the late feesauthorized above. Authorizes the Board to charge reasonable application and license fees for a firearm registration permit for all applicants and licensees subject to GS 74C-13 of no more than $50 and a fee for renewal, replacement, or reissuance for a firearm registration permit for all applicants and licensees subject to GS 74C-13 not to exceed $30.

    Allows the board to grant a 90-day extension to a licensee, trainee, or registrant who is temporarily unable to complete the renewal application requirements because of a physical disability or medical condition. Provides specifications for the documentation necessary for the extension. Provides that any information provided under the documentation requirements is not considered a public record under GS Chapter 132.

    Amends GS 74C-12 to also allow the Board to deny, suspend, or revoke a trainer certification. Amends GS 74C-13 to require a proprietary employer who employs an armed guard to submit an application to the Board and requires the employer to renew its license every two years.

    Effective July 1, 2015.


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