GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2021
SESSION LAW 2022-66
SENATE BILL 424
AN ACT to make various changes to the private protective services board and the private protective services profession.
The General Assembly of North Carolina enacts:
SECTION 1. Article 1 of Chapter 74C of the General Statutes, as amended by Section 3 of S.L. 2021‑84, reads as rewritten:
"Article 1.
"Private Protective Services Board.
"§ 74C‑3. Private protective services profession defined.
(a) As used in this Chapter, the term "private protective services profession" means and includes the following:
(3a) Close personal protection. Any person, firm, association, or corporation which, for a fee or other valuable consideration, provides or offers to provide security measures to ensure the safety of a business executive, elected or appointed public official, celebrity, or other individuals who may be exposed to elevated personal risk because of the individual's employment, status, wealth, associations, or geographical location.
(5) Detection of deception
examiner. Any person, firm, association, or corporation which which,
for a fee or other valuable consideration, uses any device or instrument,
regardless of its name or design, for the purpose of the detection of deception
or any person who reviews the work product of an examiner including charts,
tapes or other methods of record keeping for the purpose of detecting deception
or determining accuracy.
(5a) Digital forensics examination. 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 for use in any criminal, civil, or administrative court proceeding.
(5a)(5b) Electronic
countermeasures profession. Any person, firm, association, or corporation which
which, for a fee or other valuable consideration consideration,
discovers, locates, or disengages by electronic, electrical, or mechanical
means any listening of the following:
a. Listening or other monitoring equipment surreptitiously placed to gather information concerning any individual, firm, association, or corporation.
b. Any device intended to block the transmission of any electronic signal.
(8) Private detective or private investigator. Any person who engages in the profession of or accepts employment to furnish, agrees to make, or makes inquiries or investigations concerning any of the following on a contractual basis:
f. Protection of individuals from serious bodily
harm or death.
(b) "Private protective services" shall not include any of the following:
(4) An attorney at law
licensed to practice in North Carolina while engaged in the practice of law and
or the attorney's agent, employee, provided the agent
employee is performing duties only in connection with his or her principal's
employer's practice of law.
(17) A person engaged in (i)
computer or digital forensic services or in the acquisition, review, or
analysis of digital or computer‑based information, whether for the
purposes of obtaining or furnishing information for evidentiary or other
purposes, or for providing expert testimony before a court; or (ii) network
or system vulnerability testing, including network scans and risk assessment
and analysis of computers connected to a network.network, and routine
service or repair.
(18) A person under contract with an occupational licensing board, as defined by G.S. 93B‑1(2), or a State agency licensing board, as defined by G.S. 93B‑1(3), while performing an investigation solely for that board.
"§ 74C‑4. Private Protective Services Board established; members; terms; vacancies; compensation; meetings.
(d) Each member of the Board, before assuming the duties of his or her office, shall take an oath for the faithful performance of his or her 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.
"§ 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 do all of the following:
(13) Conduct investigations regarding unlicensed activity and issue cease and desist letters with the concurrence of the Secretary of Public Safety.
(14) Acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, subject only to approval of the Governor and Council of State. Collateral pledged by the Board for an encumbrance is limited to the assets, income, and revenues of the Board.
(15) Adopt rules establishing standards for the use of any firearm or other weapon approved by the Board.
"§ 74C‑7. Investigative powers of the Secretary of Public Safety.
The Secretary of Public Safety for
the State of North Carolina shall have has the power to
investigate or cause to be investigated any complaints, allegations, or
suspicions of wrongdoing or violations of this Chapter involving individuals
licensed, unlicensed individuals, licensed individuals, or individuals
to be licensed, licensed under this Chapter. The Secretary
shall retain the authority to enforce the provisions of this Chapter and impose
any penalty authorized by G.S. 74C‑12(a) and G.S. 74C‑17
against any person or entity who is under investigation for or charged with a
violation of this Chapter even if the person or entity's license or
registration has been surrendered or has lapsed. Any investigation
conducted pursuant to this section is confidential and is not subject to review
under G.S. 132‑1 until the investigation is complete and a report is
presented to the Board. However, the report may be released to the licensee
after the investigation is complete but before the report is presented to the
Board.
"§ 74C‑8. License requirements.
(b) Application. To apply for a license, an applicant must submit a verified application in writing to the Board that includes all of the following:
(7) Accompanying trainee
permit applications only, a notarized statement signed by the applicant and his
or her employer stating that the trainee applicant will at all times
work with and or under the direct supervision of a licensed
private detective.
(c) Qualifying Agent. A business entity, other than a sole proprietorship, that engages in private protective services is subject to all of the requirements listed in this subsection with respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent" is an individual in a management position who is licensed under this Chapter and whose name and address have been registered with the Director. The requirements are:
(3) In the event that the
qualifying agent upon whom the business entity relies in order to do business
ceases to perform his or her duties as qualifying agent, the business
entity shall notify the Director within 10 working days. The business entity
must obtain a substitute qualifying agent within 30 90 days after
the original qualifying agent ceases to serve as qualifying agent unless the
Board, in its discretion, extends this the 90‑day period,
for good cause, for a period of time not to exceed three months.an
additional 30 days upon the filing of a petition by the business entity and
upon a hearing by the Board. The Board may require the payment of a late fee
for a business entity failing to obtain a substitute qualifying agent pursuant
to the requirements of this subdivision.
(d) Criminal Record Check. An applicant must meet all of the following requirements and qualifications determined by a background investigation conducted by the Board in accordance with G.S. 74C‑8.1 and upon receipt of an application:
(2) That the applicant 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; firearm
or other deadly weapon; conviction of any crime involving the illegal use,
possession, sale, manufacture, distribution, or transportation of a controlled
substance, drug, narcotic, or alcoholic beverage; conviction of a crime
involving felonious assault or an act of violence; conviction of a crime
involving unlawful breaking or entering, burglary, larceny, or any offense
involving moral turpitude; or larceny; 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 no
contest or a verdict rendered in open court by a judge or jury.
(f) Issuance. 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 Director shall submit to the Board the application and the
Director's recommendations. Upon completion of the background investigation,
the Director may issue a temporary license pending approval of the application
by the Board at the next regularly scheduled meeting. 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 the required contribution to the Private
Protective Services Education Fund, and filing of a certificate of
liability insurance.insurance with the Board. The applicant must pay
the initial license fee and make the required contribution to the Fund within 90
days from the date the applicant receives notice of pending licensure approval,
unless the Board, in its discretion, extends the 90‑day period for good
cause, for an additional 30 days upon the filing of a petition by the applicant
and upon a hearing by the Board. The Board may require the payment of a late
fee for an applicant failing to pay the initial license fee or failing to make
the contribution to the Fund pursuant to the requirements of this subsection.
"§ 74C‑9. Form of license; term; renewal; posting; branch offices; not assignable; late renewal fee.
(e) The Board is authorized to charge reasonable application and license fees as follows:
(7) An application fee for a firearm registration permit for all applicants and licensees subject to G.S. 74C‑13 not to exceed fifty dollars ($50.00).
(8) A new, renewal, replacement, or reissuance fee for a firearm registration permit for all applicants and licensees subject to G.S. 74C‑13 not to exceed thirty dollars ($30.00).
(16) A late fee for a business entity subject to G.S. 74C‑8(c)(3) or an applicant for licensure under G.S. 74C‑8(f) not to exceed one hundred dollars ($100.00).
Except as provided in G.S. 74C‑13(k), all fees collected pursuant to this section shall 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 Director of intended renewal, the payment of the proper fee, and
evidence of a policy of liability insurance policy as prescribed
in G.S. 74C‑10(e).
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.
"§ 74C‑10. Certificate of liability insurance required; form and approval; suspension for noncompliance.
(a) through (d) Repealed by Session Laws 1983, c. 673, s. 4.
(e) No security guard and
patrol, armored car, or special limited guard and patrol license shall be
issued under this Chapter unless the applicant files with the Board evidence of
a policy of liability insurance. insurance policy. The
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 or her agents
operating in the course and scope of his or her 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 or her 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. If the licensee, a licensee or
a trainee supervised by a licensee, other than a security guard and patrol,
armored car, or special limited guard and patrol licensee, carries a firearm
while engaged in private protective services activities, the licensee shall
obtain a policy of liability insurance with a minimum coverage as specified
above. A licensee or trainee is deemed to be "carrying a
firearm" for purposes of this section 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. A licensee may provide
coverage for a trainee under the licensee's supervision; however, failure of
the licensee to provide coverage does not exempt the trainee from the
requirements of this section.
(e1) The Board shall approve the form, execution, and terms of the liability insurance policy.
(f) An insurance carrier shall
have has the right to cancel such policy of a liability
insurance policy upon giving a 30‑day notice to the Board.
Provided, however, that such the cancellation shall not affect
any liability on the policy which that accrued prior thereto. The
policy of liability shall be approved by the Board as to form, execution, and
terms thereon.
(g) The holder of any
trainee permit and persons Persons registered pursuant to
G.S. 74C‑11 shall are not be required to obtain
a certificate of liability insurance.
"§ 74C‑11. Probationary employees and registration of regular employees; unarmed security guard required to have registration card.
(g) Notwithstanding the provisions of this section, during a disaster declaration or state of emergency declared by the Governor pursuant to Article 1A of Chapter 166A of the General Statutes, a licensee may employ a person properly registered or licensed as an armed security guard in another state, provided that the licensee, prior to deploying the armed security guard in this State, submit to the Director all of the following:
(1) The name, address, and social security number of the armed security guard.
(2) The name of the state of current registration or licensing of the armed security guard.
(3) Proof of completion of the 4‑hour training course mandated by G.S. 74C‑13(h)(1)a. and 14B NCAC 116 .0807(c)(1), administered by a North Carolina certified trainer.
(4) Qualification by a firearms instructor certified by the North Carolina Private Protective Services Board, based on the firearm the armed security guard intends to carry, meeting the qualification requirements approved by the Board and the Secretary of Public Safety for each firearm.
(h) The Director may approve the employment of the armed security guard in this State, if the person meets all of the requirements of subsection (g) of this section. Qualification under subsection (g) of this section shall be valid for a 12‑month period. The duration of the deployment of an armed security guard from another state by a licensee shall not exceed the length of the disaster declaration or state of emergency.
"§ 74C‑12. Denial, suspension, or revocation of license, registration, or permit; duty to report criminal arrests.
(a) The Board may, after compliance with Chapter 150B of the General Statutes, deny, suspend or revoke a license, certification, registration, or permit issued under this Chapter if it is determined that the applicant, licensee, trainee, registrant, or permit holder has done any of the following acts:
(1) Made any false statement or given any false information in connection with any application for a license, registration, certification, or permit or for the renewal or reinstatement of a license, certification, registration, or permit.
(6) Engaged in or knowingly permitted any employee to engage in a private protective services profession when not lawfully in possession of a valid license or registration issued under the provisions of this Chapter.
(9) Committed an unlawful
breaking or entering, assault, battery, or kidnapping.kidnapping, or
violated any State or federal firearms law.
(24) Fraudulently held himself
or herself out as employed by or licensed by the State Bureau of
Investigation Department of Public Safety or any other governmental
authority.
(d) A licensee shall report to the Board in writing within 30 days any charge, arrest for, or conviction of a misdemeanor or felony for any of the following:
(6) Any offense involving moral turpitude.
For purposes of this section, the term "conviction" includes the entry of a plea of guilty, a plea of nolo contendere, prayer for judgment continued, adjudication withheld, or a finding of guilt by a court of competent jurisdiction. The licensee's failure to report a charge, arrest for, or conviction of a misdemeanor or felony is grounds for revocation of the license.
"§ 74C‑13. Armed licensee or registered employee required to have firearm registration permit; firearms training.
(a) It shall be unlawful for
any person performing private protective services duties to carry a firearm in
the performance of those duties without first having met the qualifications of
this section and having been issued a firearm registration permit by the Board.
A licensee or proprietary security organization shall register any
individual carrying a firearm within 30 days of employment. Before engaging in
any private protective services activity, the individual shall receive any
required training prescribed by the Board.Board, unless exempted from
training under G.S. 74C‑13.1.
(a1) The following definitions apply in this section:
(4) Armed armored car guard. An individual employed by a contract armored car company, who has a principal duty of an armored car service guard, and who, at any time, wears, carries, or possesses a firearm in the performance of duty.
(b) It shall be unlawful for any person, firm, association, or corporation and its agents and employees to employ an armed security guard or an armed private investigator and knowingly authorize or permit the armed security guard or armed private investigator to carry a firearm during the course of performing his or her duties as an armed security guard or an armed private investigator if the Board has not issued him or her a firearm registration permit under this section or if the person, firm, association, or corporation permits an armed security guard or an armed private investigator to carry a firearm during the course of performing his or her duties whose firearm registration permit has been suspended, revoked, or has otherwise expired:
(2) All firearms carried by authorized armed security guards or armed licensees in the performance of their duties shall be owned or leased by the employer. Personally owned firearms not leased to the employer shall not be carried by an armed security guard or armed licensee in the performance of his or her duties.
(c) The applicant for a firearm registration permit shall submit an application to the Board on a form provided by the Board.
(d) Each firearm registration permit issued under this section to an armed security guard 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. A firearm registration permit issued to an armed security guard 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 may require all permit holders to complete continuing education courses approved by the Board before renewal of their permits.
(d1) Each firearm registration permit issued under this section to an armed private investigator shall be in the form of a pocket card designed by the Board and shall identify the name of the armed private investigator. While carrying a firearm and engaged in private protective services, the armed private investigator shall carry the firearms registration permit issued by the Board, together with valid identification, and shall disclose to any law enforcement officer that the person holds a valid permit and is carrying a firearm, whether concealed or in plain view, when approached or addressed by the law enforcement officer, and shall display both the permit and the proper identification upon the request of a law enforcement officer. A private investigator firearm registration permit expires one year from the date of issuance and shall be renewed annually. The Board may require all permit holders to complete continuing education courses approved by the Board before renewal of their permits.
(d2) A proprietary security organization that employs an armed security guard shall submit an application to the Board for a license on a form, provided by the Board. A proprietary security organization shall renew its license every two years.
(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 set forth in
G.S. 74C‑8(d) or for violation of this section or rules
promulgated by the Board to implement this section. The Director may summarily
suspend a firearm registration permit pending resolution of charges involving
the illegal use, carrying, or possession of a firearm lodged against the holder
of the permit.for any of the offenses set forth in G.S. 74C‑12
or any crime set forth in G.S. 74C‑8(d).
(h) The Board and the Secretary of Public Safety shall establish a firearms training program for licensees and registered employees to be conducted by agencies and institutions approved by the Board and the Secretary of Public Safety. The Board and the Secretary of Public Safety may approve training programs conducted by a contract security company and the security department of a proprietary security organization, if the contract security company or security department of a proprietary security organization offers the courses listed in subdivision (1) of this subsection and if the instructors of the training program are certified trainers approved by the Board and the Secretary of Public Safety:
(1) The basic training course approved by the Board and the Secretary of Public Safety shall consist of a minimum of four hours of classroom training which shall include all of the following:
a. Legal limitations on the
use of hand guns firearms and on the powers and authority of an
armed security guard.
b. Familiarity with this section.
c. Range firing and
procedure and hand gun firearm safety and maintenance.
(o) The Board shall not knowingly issue a firearm registration permit to an individual who is prohibited by federal or State law from possessing a firearm.
"§ 74C‑13.1. Exemption from firearms training requirements.
(a) The following persons shall be exempt from the firearms training requirements of G.S. 74C‑13:
(1) Any person who has successfully completed the North Carolina Basic Law Enforcement Training (BLET) and the first year of probationary employment.
(2) Persons who have retired or separated in good standing within three years preceding the date of application, including by years of service or medical disability, as a sworn law enforcement officer from a federal, state, county, or municipal law enforcement agency that included in their duty the use and qualification of a firearm.
(3) Military personnel who have been honorably discharged within three years preceding the date of application, and whose military occupational specialty included Military Police or Criminal Investigative Division (CID) within three years preceding the date of application.
(4) Employees of a nuclear power plant that are required to comply with 10 C.F.R. § 73.55 Appendix B, "Training and Qualification of Security Personnel," as supplemented by the United States Nuclear Regulatory Commission Regulatory Guide 5.75.
(b) An applicant claiming an exemption contained in subsection (a) of this section must provide the Board the following documentation, as appropriate:
(1) A copy of a North Carolina BLET training certificate and a letter from the applicant's department that verifies the probationary employment period of the applicant has been completed.
(2) Retirement documentation from within the preceding three years that verifies the applicant's previous sworn status, or the card issued by the North Carolina Criminal Justice Training & Standards Division that authorizes concealed carry under the United States Law Enforcement Officers' Safety Act of 2004.
(3) Documentation from a United States Department of Defense Form DD‑214, Form DD‑215, or Form NGB‑22 noting a Military Police or CID military occupational specialty.
(4) Retirement or separation from employment documentation from a federal law enforcement agency with a United States Office of Personnel Management job series of 1811.
(5) Documentation of current and direct employment with a nuclear power plant located in this State.
(c) The Board shall deny the exemption claimed by the applicant if the applicant fails to provide the documentation, as appropriate, as described in subsection (b) of this section.
(e) When utilizing this exemption, the applicant must complete the legal block of instruction required by G.S. 74C‑13(h)(1) and the Board's administrative rules.
"§ 74C‑15. Pocket identification cards issued to licensees and trainees.
(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 or her possession at all times when he or she is on duty and working within the scope of his or her employment. When a licensee or trainee to whom a card has been issued terminates his or her position as a licensee or trainee, the card must be surrendered to the Director of the Board within 10 working days thereafter.
"§ 74C‑17. Enforcement.
(c) In lieu of revocation or suspension of a license or permit under G.S. 74C‑12, a civil penalty of not more than two thousand dollars ($2,000) per violation may be assessed by the Board against any person or business who violates any provision of this Chapter or any rule of the Board adopted pursuant to this Chapter. In determining the amount of any penalty, the Board shall consider the degree and extent of harm caused by the violation. The clear proceeds of civil penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.
"§ 74C‑18. Reciprocity; temporary permit.
(b) The Director, in his or
her 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.
"§ 74C‑21. Law enforcement officer provisions.
(b) An off‑duty law enforcement officer may be employed during his or her off‑duty hours by a licensed security guard and patrol company on an employer‑employee basis. An off‑duty law enforcement officer shall not wear his police officer's uniform or use the police equipment while working for a security guard and patrol company.
"§ 74C‑23. Acquisition or change of ownership or control of licensed firm, association, or corporation.
In the event a company, firm, or corporation licensed under this Chapter transfers ownership, control, or a majority of assets to another person, firm, association, or corporation, the person, firm, association, or corporation acquiring control or ownership shall have the following responsibilities:
(4) Provide to the Director within
60 no later than 10 calendar days from prior to the effective
date of the transaction the following:
a. A a list of all registrants or
licensees affected by the transaction.
b. Written confirmation of completion of any
changes necessary for the acquiring party to comply with the requirements of
this Chapter or any applicable rules adopted by the Board on a form approved by
the Director.
(5) Provide to the Director within 60 calendar days from the effective date of the transaction written confirmation of completion of any changes necessary for the acquiring party to comply with the requirements of this Chapter or any applicable rules adopted by the Board on a form approved by the Director."
SECTION 1.(b) This section becomes effective October 1, 2022.
SECTION 2.(a) G.S. 74C‑3, as amended by Section 1 of this act, is amended by adding a new subsection to read:
"(c) A private investigator licensed under this Chapter licensed on or before December 31, 2021, or a private investigator trainee permitted under this Chapter on or before December 31, 2021, may continue to provide services pursuant to sub‑subdivision f. of subdivision (8) of subsection (a) of this section and shall not be subject to the provisions of the close personal protection provision in subdivision (3a) of subsection (a) of this section. This exception shall be indicated by an endorsement on the existing private investigator license or trainee permit."
SECTION 2.(b) This section becomes effective January 1, 2023, and applies to licenses and permits granted on or after that date.
SECTION 3.(a) G.S. 14‑269.3 reads as rewritten:
"§ 14‑269.3. Carrying weapons into assemblies and establishments where alcoholic beverages are sold and consumed.
(b) This section shall not apply to any of the following:
(4) A person registered or
hired as a security guard as defined in G.S. 74C‑3(b)(13),
who is hired by the owner, lessee, or person or organization sponsoring the
event.event or a person employed by a business licensed pursuant to G.S. 74C‑2,
who is hired by the owner, lessee, or person or organization sponsoring the
event.
."
SECTION 3.(b) This section becomes effective December 1, 2022, and applies to offenses committed on or after that date.
SECTION 4. Except where otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 1st day of July, 2022.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Roy Cooper
Governor
Approved 2:11 p.m. this 8th day of July, 2022