NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 818

HOUSE BILL 820

 

 

AN ACT TO REWRITE THE PRIVATE PROTECTIVE SERVICES ACT.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Chapter 74B, as it appears in the 1975 Replacement Volume 2C and the 1977 Cumulative Supplement to such volume, is hereby repealed in its entirety.

Sec. 2.  There is hereby added to the General Statutes a new Chapter designated as Chapter 74C to read as follows:

"Chapter 74C.

"Private Protective Services Act.

"§ 74C-1.  Title. — This act may be cited as the Private Protective Services Act.

"§ 74C-2.  Licenses required. — (a) No private person, firm, association, or corporation shall engage in, perform any services as, or in any way represent or hold itself out as engaging in a private protective service business or activity in this State without having first complied with the provisions of this Chapter. Compliance with licensing requirements of this Chapter shall not relieve any person, firm, association or corporation from compliance with any other licensing law.

(b)        An individual in possession of a valid private protective services license or private detective trainee permit issued prior to July 1, 1973, shall not be subject to forfeiture of such license by virtue of this Chapter. Such license shall, however, remain subject to suspension, denial, or revocation in the same manner in which all other licenses issued pursuant to this Chapter are subject to suspension, denial, or revocation.

(c)        In its discretion, the Private Protective Services Board may issue a trainee permit in lieu of a private investigator license provided that the applicant works under the direct supervision of a licensee.

"§ 74C-3.  Private protective services business defined. — (a) As used in this Chapter, the term 'private protective services business' means and includes the following:

(1)        'Armored car business' means any person, firm, association, or corporation which provides secured transportation and protection from one place or point to another place or point of money, currency, coins, bullion, securities, checks, documents, stocks, bonds, jewelry, paintings, and other valuables for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.

(2)        'Alarm system business' means any person, firm, association, or corporation which installs, services, or responds to electrical, electronic, or mechanical alarm signal devices, burglar alarms, television cameras or still cameras used to detect burglary, breaking or entering or intrusion, shoplifting, pilferage, or theft, for a fee or other valuable consideration. Provided, however, it shall not include a business which merely sells or manufactures alarm systems unless such business services, installs, or responds to alarm systems at the protected premises. Provided further, this definition does not include a person, firm, association, or corporation which merely owns and installs an alarm system on property owned or leased by itself. Provided further, the regulation of alarm system businesses shall not include installation, servicing, or responding to fire alarm systems or any alarm device which is installed in a motor vehicle, aircraft, or boat. Provided further, the regulation of alarm system businesses shall be exclusive to the board, but any city or county shall not be prevented from requiring within its jurisdiction to register the alarm system companies' names and to file copies of board certification or from adopting an ordinance to require users of alarm systems to obtain permits when usage involves automatic signal transmission to a law enforcement agency.

(3)        'Counterintelligence service business' 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. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.

(4)        'Courier service business' means any person, firm, association, or corporation which transports or offers to transport from one place or point to another place or point documents, papers, maps, stocks, bonds, checks, or other small items of value which require expeditious service for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.

(5)        'Detection of deception examiner' means any person, firm, association, or corporation which uses any device or instrument, regardless of its name or design, for the purpose of detection of deception.

(6)        'Security guard and patrol business' means any person, firm, association, or corporation engaging in the business of providing a private watchman, guard, or street patrol service 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 and/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; and

c.         protection of patrons and persons lawfully authorized to be on the premises of the person, firm, association, or corporation for whom he contractually obligated to provide security services; and

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.

This definition does not include a person employed regularly and exclusively as an employee by an employer in connection with the business affairs of such employer; provided, however, that nothing in this Chapter shall be construed to prohibit a law enforcement officer from being employed during his off-duty hours by a licensed security guard and patrol company on an employer-employee basis; provided further, that the police officer shall not wear his police officer's uniform or use police equipment while working for a security guard and patrol company. This definition does not include a law enforcement officer who provides security guard and patrol services on an individual employer-employee basis to a person, firm, association, or corporation which is not engaged in a security guard and patrol business.

(7)        'Guard-dog service business' means any person, firm, association, or corporation which contracts with another person, firm, association, or corporation to place, lease, rent, or sell a trained dog for the purpose of protecting lives or property for a fee or other valuable consideration. This definition does not include a person employed regularly and exclusively as an employee by one employer in connection with the business affairs of such employer.

(8)        'Private detective' or 'private investigator' means any person who engages in the business of or accepts employment to furnish, agrees to make, or makes an investigation for the purpose of obtaining information with reference to:

a.         crime or wrongs done or threatened against the United States or any state or territory of the United States;

b.         the identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of any person;

c.         the location, disposition, or recovery of lost or stolen property;

d.         the cause or responsibility for fires, libels, losses, accidents, damages, or injuries to persons or to properties, provided that scientific research laboratories and consultants shall not be included in this definition;

e.         securing evidence to be used before any court, board, officer, or investigation committee; or

f.          protection of individuals from serious bodily harm or death. However, the employee of a security department of a private business which conducts investigations exclusively on matters internal to the business affairs of the business shall not be required to be licensed as a private detective or investigator under this Chapter.

(b)        'Private protective services' shall not mean:

(1)        insurance adjusters legally employed as such and who engage in no other investigative activities unconnected with adjustment or claims against an insurance company;

(2)        an officer or employee of the United States, this State, or any political subdivision of either while such officer or employee is engaged in the performance of his official duties within the course and scope of his employment with the United States, this State, or any political subdivision of either;

(3)        a person engaged exclusively in the business of obtaining and furnishing information as to the financial rating or credit worthiness of persons; and a person who provides consumer reports in connection with:

a.         credit transactions involving the consumer on whom the information is to be furnished and involving the extensions of credit to the consumer,

b.         information for employment purposes,

c.         information for the underwriting of insurance involving the consumer,

d.         information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility, or

e.         a legitimate business need for the information in connection with a business transaction involving the consumer;

(4)        an attorney at law licensed to practice in North Carolina while engaged in such practice and his agent, provided said agent is performing duties only in connection with his master's practice of law;

(5)        the legal owner or lien holder, and his agents and employees, of personal property which has been sold in a transaction wherein a security interest in personal property has been created to secure the sales transaction, who engage in repossession of said personal property;

(6)        company police or railroad police as defined in Chapter 74A of the General Statutes of North Carolina;

(7)        persons, firms, associations, or corporations operating under a motor carrier permit or certificate issued by the North Carolina Utilities Commission; or

(8)        employees of a licensee who are employed exclusively as undercover agents; provided that for purposes of this section, undercover agent means an individual hired by another person, firm, association, or corporation to perform a job in and/or for that person, firm, association, or corporation and, while performing such job, to act as an undercover operative, employee, or independent contractor of a licensee, but under the supervision of a licensee.

"§ 74C-4.  Private protective services board established; members; terms; vacancies; compensation; meetings. — (a) The Private Protective Services Board is hereby established in the Department of Justice to administer the licensing and set educational and training requirements for persons, firms, associations, and corporations engaged in the private protective services businesses within this State.

(b)        The board shall consist of eight members: the Attorney General or his designated representative, two persons appointed by the Attorney General, one person appointed by the Governor, one person appointed by the Lieutenant Governor, one person appointed by the President Pro Tern of the Senate and two persons appointed by the Speaker of the House of Representatives. Those persons appointed by the President Pro Tern of the Senate and the Speaker of the House of Representatives shall be licensees under this Chapter. All other persons appointed to the board may not be licensees of the board nor licensed by the board while serving as a board member. The terms of the board members shall begin as follows: the Attorney General shall appoint two persons to serve terms of two years beginning July 1, 1979; the person appointed by the Governor shall serve a term of four years beginning July 1, 1979; the person appointed by the Lieutenant Governor shall serve a term of four years beginning July 1, 1979; the person appointed by the President Pro Tern of the Senate shall serve a term of two years beginning July 1, 1979, and the Speaker of the House of Representatives shall appoint one person to serve a term of four years and one person to serve a term of two years beginning July 1, 1979. No person shall be eligible for reappointment to the board after eight years of continuous service as a member of the board established herein.

(c)        Vacancies on the board occurring for any reason shall be filled by the authority making the original appointment of the person causing the vacancy.

(d)        Each member of the board, before assuming the duties of his office, shall take an oath for the faithful performance of his duties. A board member may be removed at the pleasure of the authority making the original appointment or by the board for misconduct, incompetence, or neglect of duty.

(e)        Members of the board who are State officers or employees shall receive no per diem compensation for serving on the board, but shall be reimbursed for their expenses in accordance with G.S. 138-6. Members of the board who are full-time salaried public officers or employees other than State officers or employees shall receive no per diem compensation for serving on the board, but shall be reimbursed for their expenses in accordance with G.S. 138-6 in the same manner as State officers or employees. All other board members shall receive per diem compensation and reimbursement in accordance with G.S. 93B-5.

(f)         The board shall elect a chairman, vice-chairman, and other officers and committee chairmen from among its members as the board deems necessary and desirable at the first meeting after July 1 of each year. The chairman and vice-chairman shall be selected by the members of the board for a term of one year and shall be eligible for reelection. The board shall meet at the call of the chairman or a majority of the members of the board at such time, date, and location as may be decided upon by a majority of the board.

(g)        All decisions heretofore made by the Private Protective Services Board, established pursuant to Chapter 74B, shall remain in full force and effect unless and until repealed or suspended by action of the Private Protective Services Board established herein. All rules and regulations heretofore adopted pursuant to the provisions of Chapter 150 A of the General Statutes by the Private Protective Services Board, established pursuant to Chapter 74B, shall remain in full force and effect until, but not later than January 1, 1980, or until repealed or suspended by action of the Private Protective Services Board established herein.

"§ 74C-5.  Powers of the board. — In addition to the powers conferred upon the board elsewhere in this Chapter, the board shall have the power to:

(1)        promulgate rules necessary to carry out and administer the provisions of this Chapter including the authority to require the submission of reports and information by licensees under this Chapter;

(2)        determine minimum qualifications and establish minimum education, experience, and training standards for applicants and licensees under this Chapter;

(3)        conduct investigations regarding alleged violations and to make evaluations as may be necessary to determine if licensees and trainees under this Chapter are complying with the provisions of this Chapter;

(4)        adopt and amend bylaws, consistent with law, for its internal management and control;

(5)        approve individual applicants to be licensed or registered according to this Chapter;

(6)        deny, suspend, or revoke any license issued or to be issued under this Chapter to any applicant or licensee who fails to satisfy the requirements of this Chapter and /or the rules established by the board. The denial, suspension, or revocation of such license shall be in accordance with Chapter 150A of the General Statutes of North Carolina;

(7)        issue subpoenas to compel the attendance of witnesses and the production of pertinent books, accounts, records, and documents. The district court shall have the power to impose punishment pursuant to G.S. 5A-21 et seq. for acts occurring in matters pending before the Private Protective Services Board which would constitute civil contempt if the acts occurred in an action pending in court;

(8)        the chairman of the board or his representative designated to be a hearing officer may conduct any hearing called by the board for the purpose of denial, suspension, or revocation of a license or trainee permit under this Chapter; and

(9)        establish rules governing detection of deception schools located in this State.

"§ 74C-6.  Position of administrator created. — The position of Administrator of the Private Protective Services Board is hereby created within the State Bureau of Investigation. The Attorney General shall appoint a person to fill this full-time position. The administrator's duties shall be to administer the directives contained in this Chapter and the rules promulgated by the board to implement this Chapter and to carry out the administrative duties incident to the functioning of the board in order to actively police the private protective services industry to ensure compliance with the law in all aspects.

"§ 74C-7.  Investigative powers of the Attorney General. — The Attorney General for the State of North Carolina shall have the power to investigate or cause to be investigated any complaints, allegations, or suspicions of wrongdoing or violations of this Chapter involving individuals licensed, or to be licensed, under this Chapter.

"§ 74C-8.  Applications for an issuance of license. — (a) Any person, firm, association, or corporation desiring to carry on or engage in a private protective services business in this State of a kind defined in G.S. 74C-3 shall make a verified application in writing to the board.

(b)        The application shall include:

(1)        full name and business address of the applicant;

(2)        the name under which the applicant intends to do business;

(3)        a statement as to the general nature of the business in which the applicant intends to engage;

(4)        if an applicant is a person other than an individual, the full name and address of each of its partners, principal officers, directors, and its business manager, if any;

(5)        the names of not less than three unrelated and disinterested persons as references of whom inquiry can be made as to the character, standing, and reputation of the persons making the application;

(6)        such other information, evidence, statements, or documents as may be required by the board; and

(7)        accompanying trainee permit applications only, a notarized statement signed by the applicant and his employer stating that the trainee applicant will at all times work with and under the direct supervision of a licensed private detective.

(c)        A business entity other than a sole proprietorship shall not do business under this Chapter unless the business entity has in its employ a designated qualifying agent who meets the requirements for a license issued under this Chapter and who is in fact licensed under the provisions of this Chapter. For the purposes of this Chapter, a qualifying agent means an individual in a management position who is licensed under this Chapter and whose name and address have been registered with the administrator. In the event that the qualifying agent upon whom the business entity relies in order to do business ceases to perform his duties as qualifying agent, the business entity shall notify the administrator within 10 working days. The business entity must obtain a substitute qualifying agent within 30 days after the original qualifying agent ceases to serve as qualifying agent unless the board, in its discretion, extends this period for good cause for a period of time not to exceed three months. The certificate authorizing the business entity to engage in a private protective service shall list the name of at least one designated qualifying agent.

(d)        Upon receipt of an application, the board shall cause a background investigation to be made during the course of which the applicant shall be required to show that he meets all the following requirements and qualifications hereby made prerequisite to obtaining a license:

(1)        that he is at least 18 years of age;

(2)        that he is of good moral character and temperate habits. The following shall be prima facie evidence that the applicant does not have good moral character or temperate habits: conviction by any local, State, federal, or military court of any crime involving the illegal use, carrying, or possession of a firearm; conviction of any crime involving the illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverages; conviction of a crime involving felonious assault or an act of violence; conviction of a crime involving unlawful breaking and /or entering, burglary, larceny, any offense involving moral turpitude; or a history of addiction to alcohol or a narcotic drug; provided that, for purposes of this subsection, 'conviction' means and includes the entry of a plea of guilty or a verdict rendered in open court by a judge and/or jury;

(3)        for a private detective license, that he has had at least three years experience within the past five years in private investigative work, or in lieu thereof, at least two years experience within the past five years in an investigative capacity as a member of the Federal Bureau of Investigation, the State Bureau of Investigation, any municipal police department, or any county sheriff's department; and

(4)        that he has the necessary training, qualifications, and /or experience in order to determine the applicant's competency and fitness as the board may determine by rule for all licenses to be issued by the board.

(e)        The board may require the applicant to demonstrate his qualifications by oral or written examination, or both.

(f)         Upon a finding that the application is in proper form, the completion of the background investigation, and the completion of an examination required by the board, the administrator shall submit to the board the application and his recommendations. The board shall determine whether to approve or deny the application for a license. Upon approval by the board, a license will be issued to the applicant upon payment by the applicant of the initial license fee and furnishing of the required cash bond or surety bond, and certificate of liability insurance. The grounds for the denial of a license include:

(1)        commission of some act which if committed by a licensee, would be grounds for the suspension or revocation of a license under this Chapter;

(2)        conviction of a crime involving fraud;

(3)        lack of good moral character or temperate habits. The following shall be prima facie evidence that the applicant does not have good moral character or temperate habits: conviction by any local, State, federal, or military court of any crime involving the illegal use, carrying, or possession of a firearm; conviction of any crime involving the illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverages; conviction of a crime involving felonious assault or an act of violence; conviction of a crime involving unlawful breaking and/or entering, burglary, larceny; any offense involving moral turpitude; or a history of addiction to alcohol or a narcotic drug; provided that, for purposes of this subsection, 'conviction' means and includes the entry of a plea of guilty or a verdict rendered in open court by a judge and/or jury;

(4)        previous denial of a license under this Chapter or previous revocation of a license for cause;

(5)        knowingly making any false statement or misrepresentation in his application.

"§ 74C-9.  Form of license, term, renewal; posting, branch offices, not assignable, late renewal fee. — (a) The license when issued shall be in such form as may be determined by the board and shall state:

(1)        the name of the licensee,

(2)        the name under which the licensee is to operate, and

(3)        the number and expiration date of the license.

(b)        The license shall be issued for a term of two years. 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 principal place of business of the licensee. A license issued under this Chapter is not assignable.

(c)        No licensee shall conduct a private protective services business under a name other than the name under which his license was obtained under the provisions of this Chapter or the name of the business entity under which the licensee is doing business and which name and address of such business entity has been registered with the administrator.

(d)        The operator or manager of any branch office shall be properly licensed, and his license shall be posted at all times in a conspicuous place in the branch office. Every business covered under the provisions of this Chapter shall file in writing with the board the addresses of each of its branch offices, if any, within 10 working days after the establishment, closing, or changing of the location of any branch office.

(e)        The board is authorized to charge reasonable application and license fees as follows:

(1)        a nonrefundable initial application fee in an amount not to exceed seventy‑five dollars ($75.00);

(2)        a new or renewal license fee in an amount not to exceed two hundred fifty dollars ($250.00);

(3)        a new or renewal trainee permit fee in an amount not to exceed seventy-five dollars ($75.00);

(4)        a new or renewal fee for each license in addition to the basic license referred to in subsection (2) in an amount not to exceed twenty-five dollars ($25.00);

(5)        a late renewal fee to be paid in addition to the renewal fee due in an amount not to exceed one hundred dollars ($100.00), if the license has not been renewed on or before the expiration date of the licensee.

All fees collected pursuant to this section shall be expended, under the direction of the board, for the purpose of defraying the expense of administering this Chapter. All fees collected pursuant to G.S. 74B-11 which have not been expended upon the effective date of this Chapter shall be transferred to the board established by this Chapter to be expended, under the direction of the board, for the purpose of defraying the expenses of administering this Chapter.

(f)         A license or trainee permit granted under the provisions of this Chapter may be renewed by the Private Protective Services Board upon notification by the licensee or permit holder to the administrator of intended renewal and the payment of the proper fee. The renewal shall be finalized before the expiration date of the license. In no event will renewal be granted more than three months after the date of expiration of a license or trainee permit.

(g)        Upon notification of approval of his application by the board, an applicant must furnish evidence that he has obtained the necessary bond and liability insurance required by G.S. 74C-10 and obtain the license applied for or his application shall lapse.

(h)        Trainee permits shall not be issued to applicants that satisfy the experience requirement in G.S. 74C-8(d)(3). A licensed private detective may supervise no more than five trainees at any given time.

"§ 74C-10.  Bond and certificate of liability insurance required; form and approval; action on bonds; suspension for noncompliance. — (a) No licensee or applicant for a license shall be licensed under this Chapter unless the licensee or applicant for a license files with the board and maintains a surety bond executed by a surety company authorized to do business in this State in a sum of not less than five thousand dollars ($5,000) or a cash bond, in lieu of the surety bond in a sum of not less than five thousand dollars ($5,000), to protect the public from the wrongful or illegal acts of the bond principal or his agents operating in the course and scope of his or her agency. Only one bond shall be required of a licensee regardless of the number of licenses which he is issued under this Chapter.

(b)        The bond shall be taken in the name of the people of the State of North Carolina. Every person injured by wrongful or illegal acts of the principal or his agents operating in the course and the scope of his or her agency may bring an action on the bond in his or her name to recover damages suffered by reason of such wrongful act. Provided, however, the aggregate liability of the surety for all breaches of the condition of bond shall, in no event, exceed the sum of said bond.

(c)        Persons registered pursuant to G.S. 74C-11 shall not be required to obtain a surety bond or certificate of liability insurance. The holder of a private detective trainee permit must satisfy the bond requirements of this section within 90 days of the issuance of said permit.

(d)        The surety on said bond shall have a right to cancel such bond upon giving a 30‑day notice to the board. Provided, however, that such cancellation shall not affect any liability on the bond which accrued prior thereto. The bond shall be approved by the board as to form, execution, and sufficiency of the sureties thereon.

(e)        No license shall be issued under this act unless the applicant files with the board evidence of a policy of liability insurance which policy must provide for the following minimum coverage: fifty thousand dollars ($50,000) because of bodily injury or death of one person as a result of the negligent act or acts of the principal insured or his agents operating in the course and scope of his employment; subject to said limit for one person, one hundred thousand dollars ($100,000) because of bodily injury or death of two or more persons as the result of the negligent act or acts of the principal insured or his agents operating in the course and scope of his or her agency; twenty thousand dollars ($20,000) because of injury to or destruction of property of others as the result of the negligent act or acts of the principal insured or his agents operating in the course and scope of his or her agency.

(f)         An insurance carrier shall have the right to cancel such policy of liability insurance upon giving a 30-day notice to the board. Provided, however, that such cancellation shall not affect any liability on the policy which accrued prior thereto. The policy of liability shall be approved by the board as to form, execution, and terms thereon.

(g)        The holder of a private detective trainee permit and persons registered pursuant to G.S. 74C-11 shall not be required to obtain a certificate of liability insurance.

(h)        Every licensee shall at all times maintain on file with the board the surety bond and certificate of insurance required by this Chapter in full force and effect and upon failure to do so, the license of such licensee shall be automatically suspended and shall not be reinstated until an application therefor, in the form prescribed by the board, is filed together with a proper bond, insurance certificate, or both.

(i)         The board may deny the application notwithstanding the applicant's compliance with this section:

(1)        for any reason which would justify refusal to issue or a suspension or revocation of a license; or

(2)        for the performance by applicant of any practice while under suspension for failure to keep this bond or insurance certificate in force, for which a license under this Chapter is required.

"§ 74C-11.  Registration of persons employed; temporary employment. — (a) All licensees, within 10 days of the beginning of employment of an employee who will be engaged in the providing of private protective services covered by this Chapter unless the administrator, in his discretion, extends the time period for good cause, shall furnish the board with the following: two sets of classifiable fingerprints on standard F.B.I. applicant cards; two recent photographs of acceptable quality for identification; and statements of any criminal records obtained from the county sheriff, chief of police, or clerk of superior court in each county in North Carolina where the employee has resided within the immediately preceding 24 months.

(b)        A security guard and patrol company may not employ a guard, watchman, or other patrol personnel unless the guard, watchman, or patrol personnel is properly registered in compliance with this section, unless otherwise exempted by another provision of this Chapter.

(c)        The administrator shall be notified in writing of the termination of any employee registered under this Chapter within 10 days after said termination.

(d)        A security guard, watchman, or patrol personnel shall make application to the administrator for a registration card which the administrator 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 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 shall have the applicant's photograph affixed thereto. The security guard registration card shall expire two years after its date of issuance and shall be renewed every two years. If a registered security guard changes employment to another security guard and patrol company, the security guard registration card shall remain valid. The board is authorized to charge the applicant a reasonable registration fee for initial registration, in an amount not to exceed fifteen dollars ($15.00), and a renewal fee, in an amount not to exceed ten dollars ($10.00).

(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 that such licensee, prior to employing such security guard, submits to the administrator the name, address, and social security number of such guard, the name of the state of current registration or licensing, and the administrator approves the employment of the 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 said employee in accordance with this section; provided that the licensee submits to the administrator a quarterly report which provides the administrator with the name, address, social security number, and dates of employment of such employee.

"§ 74C-12.  Suspension or revocation of licenses; appeal. — (a) The board may, after notice and an opportunity for hearing, suspend or revoke a license issued under this Chapter if it is determined that the licensee has:

(1)        made any false statement or given any false information in connection with any application for a license or trainee permit or for the renewal or reinstatement of a license or trainee 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)        been convicted of any crime involving moral turpitude or any other crime involving violence or the illegal use, carrying, or possession of a dangerous weapon;

(5)        impersonated or permitted or aided and abetted any other person to impersonate a law enforcement officer of the United States, this State, or any of its political subdivisions;

(6)        engaged in or permitted any employee to engage in a private protective services business 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 or a report as agreed between the parties and for which compensation had 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)      committed any other act which is a ground for the denial of an application for a license under this Chapter;

(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)      to issue, deliver, or utter 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)      failure to maintain the cash bond, surety bond, or certificate of liability insurance required by this Chapter;

(15)      violation of the firearm provisions set forth in this Chapter;

(16)      committed any act prohibited under G.S. 74C-16;

(17)      failure to notify the administrator 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)      failure 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)      any judgment of incompetency by a court having jurisdiction under Chapter 35 of the General Statutes or commitment to a mental health facility for treatment of mental illness, as defined in G.S. 122-36(d), by a court having jurisdiction under Article 5A of Chapter 122 of the General Statutes.

(b)        The revocation or suspension of a license by the board as provided in subsection (a) shall be in writing, signed by the administrator of the board stating the grounds upon which the board decision is based. The aggrieved person shall have the right to appeal from such decision as provided in Chapter 150A of the General Statutes.

"§ 74C-13.  Firearms. — (a) It shall be unlawful for any person performing the duties of an armed private security officer 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 private security officer' means an individual employed by a contract security company or a proprietary security organization whose principal duty is that of an armed security guard, patrol, or watchman; armed armored car service guard; alarm system company responder; private detective; or armed courier service guard who at any time wears, carries, or possesses a firearm in the performance of his or her duties.

(2)        'Contract security company' means any person, firm, association, or corporation engaging in a private protective services business as defined in this Chapter which provides said 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 watchmen, security guards or patrol personnel, 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 private security officer and knowingly authorize or permit him to carry a firearm during the course of performing his duties as an armed private security officer 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 private security officer to carry a firearm during the course of performing his duties whose firearm registration permit has been suspended, revoked, or has otherwise expired:

(1)        A firearms registration permit will grant authority to the armed security officer, while in the performance of his duties or travelling directly to and from work, to carry a standard .38 caliber or .32 caliber revolver or any other 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 officers 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 officer in the performance of his duties.

(c)        The applicant for an armed private security officer firearm registration permit shall submit an application to the board on a form provided by the board. The board is authorized to charge a reasonable initial application fee, in an amount not to exceed ten dollars ($10.00).

(d)        Each armed private security officer 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 private security officer 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. The board is authorized to charge a reasonable renewal fee, in an amount not to exceed five dollars ($5.00).

(e)        If the holder of an armed private security officer 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 private security officer pending completion of the firearms training required by this Chapter, if the contract security company or proprietary security organization obtains prior approval from the administrator. The board and the Attorney General shall provide by rule the procedure by which a contract security company or a proprietary security organization applicant may be issued a temporary firearm registration permit by the administrator 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 and/or rules promulgated by the board to implement this section. The administrator may summarily suspend a firearm registration permit pending resolution of charges involving the illegal use, carrying, or possession of a firearm lodged against an armed private security officer.

(h)        The board and the Attorney General shall establish a training program 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 contract security companies and the security department of a proprietary security organization, if the contract security companies or security department of a propriety security organization offers the courses listed in subsection (1) of this paragraph (h) and if the instructors of the training program are qualified instructors 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 private security officer,

b.         familiarity with this section,

c.         range firing and procedure and hand gun safety and maintenance, and

d.         any other topics of armed private security officer training curriculum which the board deems necessary.

(2)        An applicant for an armed security officer 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)        An armed security officer 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 an armed private security officer registration permit to an applicant until the applicant's employer submits evidence satisfactory to the board that:

(1)        He has satisfactorily completed an approved training course.

(2)        He meets all the qualifications established by this section and by the rules promulgated to implement this section.

(3)        He 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 card by the board.

(k)        All fees collected pursuant to G.S. 74C-13(c) and (d) shall be expended, under the direction of the board, for the purpose of defraying the expense of administering the firearms provisions of this Chapter. The board is authorized to charge a reasonable fee, in an amount not to exceed one hundred dollars ($100.00), for the expenses of administering the firearms provisions of this Chapter when the board determines the fees collected pursuant to G.S. 74C‑13(c) and (d) are not adequate to defray the expenses of administering the firearms provisions of this Chapter.

"§ 74C-14.  Mace. — It shall be lawful for security guards registered pursuant to the provisions of this Chapter to possess and use tear gas (mace) to the extent allowed under the provisions of G.S. 14-401.6.

"§ 74C-15.  Identification cards; badges; and shields. — (a) Upon the issuance of a license or trainee permit, a pocket identification card of design, size, and content approved by the board shall be issued by the board without charge to each licensee or trainee. The holder must have this card in his possession at all times when he is on duty and working within the scope of his employment. When a licensee or trainee to whom a card has been issued terminates his position as a licensee or trainee, the card must be surrendered to the administrator of the board within 10 working days thereafter.

(b)        No person licensed under the provisions of this Chapter as a private detective shall wear, carry, or accept any badge or shield purporting to indicate that such person is a private detective or a private investigator.

"§ 74C-16.  Prohibited acts. — (a) Any licensee or officer, director, partner, or manager of a licensee may divulge to any law enforcement officer or district attorney or his representative any information the law enforcement officer may require incident to investigation of any criminal offense. However, he shall not divulge to any other person, except as he may be required by law, any information acquired by him except at the direction of the employer or client for whom the information was obtained.

(b)        Every advertisement by a licensee soliciting or advertising for business shall contain his name as it appears in the records of the board and the name in which the license was issued.

(c)        It shall be unlawful for anyone not licensed and /or registered as required under this Chapter to:

(1)        advertise or to hold himself out to be a licensee;

(2)        advertise or to hold himself out to perform services for which a license is required; or

(3)        perform or aid and abet any other individual to perform services for which a license or registration under this Chapter is required, when, in fact, the individual is not licensed and /or registered in accordance with this Chapter.

(d)        No law enforcement officer of the United States, this State, or any of its political subdivisions shall be licensed as a private detective or security guard and patrol business licensee under this Chapter; provided no law enforcement officer of the United States, this State, or any of its political subdivisions may use any motor vehicle owned or leased by a law enforcement agency in the course and scope of any private employment which is subject to regulation by the provisions of this Chapter; provided that nothing in this section shall be construed to prohibit the holder of a company police commission under Chapter 74A of the General Statutes from being licensed under this Chapter or being employed by a licensee under this Chapter.

"§ 74C-17.  Enforcement. — (a) The board is authorized to apply in its own name to any judge of the Superior Court of the General Court of Justice for an injunction in order to prevent any violation or threatened violation of the provisions of this Chapter.

(b)        Any person, firm, association, or corporation or their agents and employees violating any of the provisions of this Chapter or knowingly violating any rule promulgated to implement this Chapter shall be guilty of a misdemeanor and punishable by a fine of up to five hundred dollars ($500.00), by imprisonment for a term not to exceed one year, or by both, in the discretion of the court. The Attorney General, or his representative, shall have concurrent jurisdiction with the district attorneys of this State to prosecute violations of this Chapter.

"§ 74C-18.  Reciprocity; temporary permit. — (a) To the extent that other states which provide for licensing of any private protective services business provide for similar action for citizens of this State, the board, in its discretion, may grant a private protective services business license to a nonresident who holds a valid private protective services business license of the same type from another state upon satisfactory proof furnished to the board that the standards of licensure in such other states are at least substantially equivalent to those prevailing in this State. Applicants shall make application to the board on the form prescribed by the board for all applicants, shall comply with the provisions of G.S. 74C-10, and shall pay the fees required of all applicants.

(b)        The administrator, in his discretion and subject to the approval of the board, may issue a temporary permit to a nonresident who has complied with the provisions of G.S. 74C‑10 and who is validly licensed in another state to engage in a private protective service activity incidental to a specific case originating in another state. A temporary permit may be issued for a period of no more than 30 days and may be renewed. A temporary permit may contain such restrictions which the board, in its discretion, deems appropriate. The board is authorized to charge a reasonable fee for a nonresident temporary permit, in an amount not to exceed fifty dollars ($50.00).

"§ 74C-19.  Severability. — If any provision of this Chapter or the application thereof to any person or circumstance is for any reason held invalid, such invalidity shall not affect other provisions or applications of the Article which can be given effect without the invalid provision or application, and to this end the provisions of this Chapter are declared to be severable.

"§ 74C-20. Repeal of Chapter. — This Chapter is repealed effective July 21, 1983, by substitution of this Chapter in G.S. 143-34.13 and the other general provisions of Article 2 of Chapter 143 of the General Statutes, which requires periodic review of certain State agencies for Chapter 74B, which this Chapter supersedes."

Sec. 3.  This act shall become effective on July 1, 1979, with the exception of the provisions of G.S. 74C-10 and G.S. 74C-13, which shall become effective on January 1, 1980.

In the General Assembly read three times and ratified, this the 7th day of June, 1979.