Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                          SB 454.1
                                               SENATE BILL NO. 454
                                            INTRODUCED BY J. SMALL
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  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO PRIVATE
  SECURITY; REPEALING THE BOARD OF PRIVATE SECURITY; TRANSFERRING AUTHORITY FROM THE
  BOARD OF PRIVATE SECURITY TO A DEPARTMENT PROGRAM; ELIMINATING LICENSURE OF ALARM
  RESPONSE RUNNERS, BRANCH OFFICES OF PRIVATE SECURITY COMPANIES, AND RESIDENT
  MANAGERS OF PRIVATE SECURITY COMPANIES; REQUIRING THE DESIGNATION OF A MANAGER;
  COMBINING PROPRIETARY AND CONTRACT PRIVATE SECURITY COMPANIES INTO A SINGLE
  LICENSE TYPE; PROVIDING RULEMAKING AUTHORITY; REVISING DEFINITIONS; AMENDING
  SECTIONS 25-1-1104, 37-1-401, 37-60-101, 37-60-103, 37-60-104, 37-60-105, 37-60-202, 37-60-301, 37-60-
  303, 37-60-304, 37-60-314, 37-60-320, 37-60-403, 37-60-404, 37-60-405, 37-60-407, 37-60-411, AND 45-8-
  338, MCA; AND REPEALING SECTIONS 2-15-1781, 37-60-201, 37-60-211, 37-60-302, AND 37-60-309,
  MCA.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 25-1-1104, MCA, is amended to read:
          "25-1-1104. Handbook for process servers. (1) The department of labor and industry shall publish a
  handbook for process servers and levying officers.
          (2)      The board of private security, established in 2-15-1781, department of labor and industry shall
  develop and administer an examination for applicants for registration as a process server based on the
  handbook.
          (3)      The department of labor and industry may charge a reasonable examination fee to cover the
  costs of publishing the handbook and administering the examination provided for in this section."
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          Section 2. Section 37-1-401, MCA, is amended to read:
          "37-1-401.   Uniform regulation for licensing programs without boards -- definitions. As used in
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68th Legislature 2023                                                                                                SB 454.1
  this part, the following definitions apply:
          (1)      "Complaint" means a written allegation filed with the department that, if true, warrants an
  injunction, disciplinary action against a licensee, or denial of an application submitted by a license applicant.
          (2)      "Department" means the department of labor and industry provided for in 2-15-1701.
          (3)      "Investigation" means the inquiry, analysis, audit, or other pursuit of information by the
  department, with respect to a complaint or other information before the department, that is carried out for the
  purpose of determining:
          (a)      whether a person has violated a provision of law justifying discipline against the person;
          (b)      the status of compliance with a stipulation or order of the department;
          (c)      whether a license should be granted, denied, or conditionally issued; or
          (d)      whether the department should seek an injunction.
          (4)      "License" means permission in the form of a license, permit, endorsement, certificate,
  recognition, or registration granted by the state of Montana to engage in a business activity or practice at a
  specific level in a profession or occupation governed by:
          (a)      Title 37, chapter 35, 60, 72, or 73; or
          (b)      Title 50, chapter 39, 74, or 76.
          (5)      "Profession" or "occupation" means a profession or occupation regulated by the department
  under the provisions of:
          (a)      Title 37, chapter 35, 49, 60, 72, or 73; or
          (b)      Title 50, chapter 39, 74, or 76."
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          Section 3. Section 37-60-101, MCA, is amended to read:
          "37-60-101. Definitions. As used in this chapter, the following definitions apply:
          (1)   "Alarm response runner" means an individual employed by an electronic security company, a
  contract security company, or a proprietary security organization to respond to security alarm system signals.
          (2)(1)   "Armed" means an individual who at any time wears, carries, or possesses a firearm an
  endorsement authorizing a private investigator or a private security guard to possess and use one or more
  firearms in the performance of professional duties according to training and reporting requirements prescribed
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68th Legislature 2023                                                                                             SB 454.1
  by this chapter and department rule.
          (3)(2)   "Armed carrier service" means any person or security company who transports or offers to
  transport under armed private security guard from one place to another any currency, documents, papers,
  maps, stocks, bonds, checks, or other items of value that require expeditious delivery a private security firm that
  provides the transport or the offer to transport items of value under an armed private security guard.
          (4)   "Armed private investigator" means a private investigator who at any time wears, carries, or
  possesses a firearm in the performance of the individual's duties.
          (5)   "Armed private security guard" means an individual employed by a contract security company or a
  proprietary security organization whose duty or any portion of whose duty is that of a security guard, armored
  car service guard, or carrier service guard and who at any time wears or carries a firearm in the performance of
  the individual's duties.
          (6)   "Armored car service" means any person or security company who transports or offers to transport
  under armed private security guard from one place to another any currency, jewels, stocks, bonds, paintings, or
  other valuables of any kind in a specially equipped motor vehicle that offers a high degree of security.
          (7)   "Board" means the board of private security provided for in 2-15-1781.
          (8)   "Branch office" means any office of a licensee within the state, other than its principal place of
  business within the state.
          (9)   "Contract security company" means any person who undertakes to provide a private security
  guard, alarm response runner, armored car service, street patrol service, or armed carrier service on a
  contractual basis to another person who exercises no direction and control over the performance of the details
  of the services rendered.
          (10)(3) "Department" means the department of labor and industry provided for in 2-15-1701.
          (11)(4) (a) "Electronic security company firm" means a person who sells, installs, services, or
  maintains a security alarm system and who undertakes to hire, employ, and provide alarm response runners
  and employs security alarm installers on a contractual basis to another person who does not exercise direction
  and control over the performance of the services rendered.
          (b)      The term does not include a person whose primary business is that of a locksmith and who
  may also install closed-circuit television cameras and battery-operated door devices.
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68th Legislature 2023                                                                                                SB 454.1
            (12) "Firearms course" means the course approved by the board and conducted by a firearms
  instructor.
            (13) "Firearms instructor" means an individual who has been approved by the board to instruct firearms
  courses in the use of weapons.
            (14) "Insurance adjuster" means a person employed by an insurance company, other than a private
  investigator, who for any consideration conducts investigations in the course of adjusting or otherwise
  participating in the disposal of any claims in connection with a policy of insurance but who does not perform
  surveillance activities or investigate crimes against the United States or any state or territory of the United
  States.
            (15)(5) "Licensee" means a person licensed under this chapter.
            (16) "Paralegal" or "legal assistant" means a person qualified through education, training, or work
  experience to perform substantive legal work that requires knowledge of legal concepts and that is customarily
  but not exclusively performed by a lawyer and who may be retained or employed by one or more lawyers, law
  offices, governmental agencies, or other entities or who may be authorized by administrative, statutory, or court
  authority to perform this work.
            (17) "Person" means an individual, firm, company, association, organization, partnership, or
  corporation.
            (18)(6) "Private investigator" means a person other than an insurance adjuster an individual who for
  any consideration makes or agrees to make any investigation with reference relevant to:
            (a)     crimes against the United States or any state or territory of the United States;
            (b)     the identity, habits, conduct, business, occupation, honesty, integrity, trustworthiness,
  efficiency, loyalty, activity, movement, location, affiliations, associations, transactions, reputation, or character
  of any person;
            (c)     the location, disposition, or recovery of lost or stolen property;
            (d)     the cause of or responsibility for any fires, libels, losses, accidents, or injury to persons or
  property; or
            (e)     gathering evidence to be used before any court, board, officer, or investigating committee.
            (7)     "Private security firearms instructor" means an individual who instructs private investigators and
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68th Legislature 2023                                                                                             SB 454.1
  private security guards in the use of firearms that may be used while performing professional duties.
          (8)        "Private security firm" means a person who provides one or more of the following:
          (a)        private security guard services;
          (b)        armed private security guard services; or
          (c)        armed carrier services.
          (19)(9) "Private security guard" means an individual employed or assigned duties by a private security
  firm to protect a person or property or both a person and property from criminal acts and whose duties or any
  portion of whose duties include but are not limited to the prevention of unlawful entry, theft, criminal mischief,
  arson, or trespass on private property or the direction of the movements of the public persons or property or to
  direct public movement in public areas.
          (20)(10)     "Process Registered process server" means a person described in 25-1-1101(1).
          (21) "Proprietary security organization" means any person who employs a private security guard, alarm
  response runner, armored car service, street patrol service, or armed carrier service on a routine basis solely
  for the purposes of that person and exerts direction and control over the performance of the details of the
  service rendered.
          (22) "Resident manager" means the person appointed to exercise direct supervision, control, charge,
  management, or operation of each office located in this state where the business of the licensee is conducted.
          (23)(11) (a) "Security alarm installer" means an individual who sells, installs, services, or maintains
  employed by an electronic security firm to sell, install, service, or maintain security alarm systems to detect and
  signal unauthorized intrusion, movement, break-in, or criminal acts and is employed by an electronic security
  company.
          (b)        The term does not include a person whose primary business is that of a locksmith and who
  may also install closed-circuit television cameras and battery-operated door devices.
          (24)(12) (a) "Security alarm system" means an assembly of equipment and devices or a single device
  or a portion of a system intended to detect or signal or to both detect and signal unauthorized intrusion,
  movement, or criminal acts at a location.
          (b)        The term does not include systems that monitor temperature, humidity, or any other
  atmospheric condition not directly related to the detection of an unauthorized intrusion or criminal act at a
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68th Legislature 2023                                                                                                SB 454.1
  location.
          (25) "Security company" means an electronic security company, a proprietary security organization, or
  a contract security company.
          (26) "Street patrol service" means a person providing patrols by means of foot, vehicle, or other
  method of transportation using public streets, thoroughfares, or property in the performance of the person's
  duties and responsibilities.
          (27) "Unarmed private investigator" means a private investigator who does not wear, carry, or possess
  a firearm in the performance of the individual's duties.
          (28) "Unarmed private security guard" means an individual who is employed by a contract security
  company or a proprietary security organization, whose duty or any portion of whose duty is that of a private
  security guard, armored car service guard, or alarm response runner, and who does not wear, carry, or possess
  a firearm in the performance of those duties."
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          Section 4. Section 37-60-103, MCA, is amended to read:
          "37-60-103.    Purpose. The purpose of this chapter is to increase the levels of integrity, competency,
  and performance of security companies and their employees who are required to be licensed, firearms
  instructors, private investigators, and process servers to safeguard regulate the qualifications and standards of
  practice of private security firms, electronic security firms, private investigators, private security firearms
  instructors, private security guards, registered process servers, and security alarm installers to protect the
  public health, safety, and welfare against illegal, improper, or incompetent actions committed by security
  companies and their licensed employees, firearms instructors, private investigators, or process servers."
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          Section 5. Section 37-60-104, MCA, is amended to read:
          "37-60-104. Restrictions on contract private security company and proprietary security
  organization firms. An employee of a contract private security company or proprietary security organization
  firm may not make any investigation or investigations except those that are incidental to the theft, loss,
  embezzlement, misappropriation, or concealment of any property or any other thing that the employee has
  been hired or engaged to protect, guard, or watch."
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68th Legislature 2023                                                                                                  SB 454.1
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          Section 6. Section 37-60-105, MCA, is amended to read:
          "37-60-105.       Exemptions. (1) Except as provided in subsection (2), this This chapter does not apply
  to:
          (a)         any one person an individual employed singly and exclusively by any one employer an
  employer other than a private security firm in connection with the affairs of that employer only and when there
  exists an employer-employee relationship and the employee is unarmed, does not wear a uniform, and is
  guarding inside a structure that at the time is not open to the public;
          (b)         a person an individual:
          (i)      employed singly and exclusively by a retail merchant as a private security guard;
          (ii) performing at least some work for the retail merchant as a private security guard; and
          (iii) who has received training as a private security guard from the employer or at the employer's
  direction;
          (c)         an officer or employee of the United States, of this state, or of a political subdivision of the
  United States or this state while the officer or employee is engaged in the performance of official duties;
          (d)         a person engaged exclusively in the business of obtaining and furnishing an individual who
  provides information as to about the financial rating of persons or as to the personal, financial habits, and
  financial responsibility of applicants for insurance, indemnity bonds, or commercial credit;
          (e)         an attorney at law while performing duties as an attorney at engaged in the practice of law;
          (f)         a law student, legal intern, paralegal, or legal assistant employed by under the direction of one
  or more lawyers, law offices, governmental agencies, or other entities attorneys;
          (g)      a law student who is serving a legal internship;
          (h)(g)      a collection agency or finance company licensed to do bus