FILED SENATE
Mar 31, 2021
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 424
SESSION 2021 PRINCIPAL CLERK
S D
SENATE BILL DRS15184-NBf-123
Short Title: Private Protective Srvs. Licensing Mods. (Public)
Sponsors: Senator Daniel (Primary Sponsor).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE VARIOUS CHANGES TO THE PRIVATE PROTECTIVE SERVICES
3 BOARD AND THE PRIVATE PROTECTIVE SERVICES PROFESSION.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. Article 1 of Chapter 74C of the General Statutes reads as rewritten:
6 "Article 1.
7 "Private Protective Services Board.
8 …
9 "§ 74C-3. Private protective services profession defined.
10 (a) As used in this Chapter, the term "private protective services profession" means and
11 includes the following:
12 …
13 (3a) Close personal protection. – Any person, firm, association, or corporation
14 which, for a fee or other valuable consideration, provides or offers to provide
15 security measures to ensure the safety of a business executive, elected or
16 appointed public official, celebrity, or other individuals who may be exposed
17 to elevated personal risk because of the individual's employment, status,
18 wealth, associations, or geographical location.
19 …
20 (5) Detection of deception examiner. – Any person, firm, association, or
21 corporation which which, for a fee or other valuable consideration, uses any
22 device or instrument, regardless of its name or design, for the purpose of the
23 detection of deception or any person who reviews the work product of an
24 examiner including charts, tapes or other methods of record keeping for the
25 purpose of detecting deception or determining accuracy.
26 (5a) Digital forensics examination. – Any individual, firm, association, or
27 corporation which, for a fee or other valuable consideration, provides or offers
28 to provide examination of digitally stored data to recover, image, analyze, or
29 examine the data by using software to determine responsibility or reconstruct
30 usage of the data for use in any criminal, civil, or administrative court
31 proceeding.
32 (5a)(5b) Electronic countermeasures profession. – Any person, firm, association, or
33 corporation which which, for a fee or other valuable consideration
34 consideration, discovers, locates, or disengages by electronic, electrical, or
35 mechanical means any listening of the following:
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1 a. Listening or other monitoring equipment surreptitiously placed to
2 gather information concerning any individual, firm, association, or
3 corporation.
4 b. Any device intended to block the transmission of any electronic signal.
5 …
6 (8) Private detective or private investigator. – Any person who engages in the
7 profession of or accepts employment to furnish, agrees to make, or makes
8 inquiries or investigations concerning any of the following on a contractual
9 basis:
10 …
11 f. Protection of individuals from serious bodily harm or death.
12 …
13 (b) "Private protective services" shall not include any of the following:
14 …
15 (4) An attorney at law licensed to practice in North Carolina while engaged in the
16 practice of law and or the attorney's agent, employee, provided the agent
17 employee is performing duties only in connection with his or her principal's
18 employer's practice of law.
19 …
20 (17) A person engaged in (i) computer or digital forensic services or in the
21 acquisition, review, or analysis of digital or computer-based information,
22 whether for the purposes of obtaining or furnishing information for
23 evidentiary or other purposes, or for providing expert testimony before a
24 court; or (ii) network or system vulnerability testing, including network scans
25 and risk assessment and analysis of computers connected to a
26 network.network, and routine service or repair.
27 (18) A person under contract with an occupational licensing board, as defined by
28 G.S. 93B-1(2), or a State agency licensing board, as defined by G.S. 93B-1(3),
29 while performing an investigation solely for that board.
30 "§ 74C-4. Private Protective Services Board established; members; terms; vacancies;
31 compensation; meetings.
32 …
33 (d) Each member of the Board, before assuming the duties of his or her office, shall take
34 an oath for the faithful performance of his or her duties. A Board member may be removed at the
35 pleasure of the authority making the original appointment or by the Board for misconduct,
36 incompetence, or neglect of duty.
37 …
38 "§ 74C-5. Powers of the Board.
39 In addition to the powers conferred upon the Board elsewhere in this Chapter, the Board shall
40 have the power to do all of the following:
41 …
42 (13) Conduct investigations regarding unlicensed activity and issue cease and
43 desist letters with the concurrence of the Secretary of Public Safety.
44 (14) Acquire, hold, rent, encumber, alienate, and otherwise deal with real property
45 in the same manner as a private person or corporation, subject only to approval
46 of the Governor and Council of State. Collateral pledged by the Board for an
47 encumbrance is limited to the assets, income, and revenues of the Board.
48 (15) Adopt rules establishing standards for the use of any firearm or other weapon
49 approved by the Board.
50 …
51 "§ 74C-7. Investigative powers of the Secretary of Public Safety.
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1 The Secretary of Public Safety for the State of North Carolina shall have has the power to
2 investigate or cause to be investigated any complaints, allegations, or suspicions of wrongdoing
3 or violations of this Chapter involving individuals licensed, unlicensed individuals, licensed
4 individuals, or individuals to be licensed, licensed under this Chapter. The Secretary shall retain
5 the authority to enforce the provisions of this Chapter and impose any penalty authorized by
6 G.S. 74C-12(a) and G.S. 74C-17 against any person or entity who is under investigation for or
7 charged with a violation of this Chapter even if the person or entity's license or registration has
8 been surrendered or has lapsed. Any investigation conducted pursuant to this section is
9 confidential and is not subject to review under G.S. 132-1 until the investigation is complete and
10 a report is presented to the Board. However, the report may be released to the licensee after the
11 investigation is complete but before the report is presented to the Board.
12 "§ 74C-8. License requirements.
13 …
14 (b) Application. – To apply for a license, an applicant must submit a verified application
15 in writing to the Board that includes all of the following:
16 …
17 (7) Accompanying trainee permit applications only, a notarized statement signed
18 by the applicant and his or her employer stating that the trainee applicant will
19 at all times work with and or under the direct supervision of a licensed private
20 detective.
21 (c) Qualifying Agent. – A business entity, other than a sole proprietorship, that engages
22 in private protective services is subject to all of the requirements listed in this subsection with
23 respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent" is an individual
24 in a management position who is licensed under this Chapter and whose name and address have
25 been registered with the Director. The requirements are:
26 …
27 (3) In the event that the qualifying agent upon whom the business entity relies in
28 order to do business ceases to perform his or her duties as qualifying agent,
29 the business entity shall notify the Director within 10 working days. The
30 business entity must obtain a substitute qualifying agent within 30 90 days
31 after the original qualifying agent ceases to serve as qualifying agent unless
32 the Board, in its discretion, extends this the 90-day period, for good cause, for
33 a period of time not to exceed three months.an additional 30 days upon the
34 filing of a petition by the business entity and upon a hearing by the Board. The
35 Board may require the payment of a late fee for a business entity failing to
36 obtain a substitute qualifying agent pursuant to the requirements of this
37 subdivision.
38 …
39 (d) Criminal Record Check. – An applicant must meet all of the following requirements
40 and qualifications determined by a background investigation conducted by the Board in
41 accordance with G.S. 74C-8.1 and upon receipt of an application:
42 …
43 (2) That the applicant is of good moral character and temperate habits. The
44 following shall be prima facie evidence that the applicant does not have good
45 moral character or temperate habits: conviction by any local, State, federal, or
46 military court of any crime involving the illegal use, carrying, or possession
47 of a firearm; firearm or other deadly weapon; conviction of any crime
48 involving the illegal use, possession, sale, manufacture, distribution, or
49 transportation of a controlled substance, drug, narcotic, or alcoholic beverage;
50 conviction of a crime involving felonious assault or an act of violence;
51 conviction of a crime involving unlawful breaking or entering, burglary,
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1 larceny, or any offense involving moral turpitude; or larceny; or a history of
2 addiction to alcohol or a narcotic drug; provided that, for purposes of this
3 subsection, "conviction" means and includes the entry of a plea of guilty or no
4 contest or a verdict rendered in open court by a judge or jury.
5 …
6 (f) Issuance. – Upon a finding that the application is in proper form, the completion of
7 the background investigation, and the completion of an examination required by the Board, the
8 Director shall submit to the Board the application and the Director's recommendations. Upon
9 completion of the background investigation, the Director may issue a temporary license pending
10 approval of the application by the Board at the next regularly scheduled meeting. The Board shall
11 determine whether to approve or deny the application for a license. Upon approval by the Board,
12 a license will be issued to the applicant upon payment by the applicant of the initial license fee
13 and the required contribution to the Private Protective Services Education Fund, and filing of a
14 certificate of liability insurance.insurance with the Board. The applicant must pay the initial
15 license fee and make the required contribution to the Fund within 90 days from the date the
16 applicant receives notice of pending licensure approval, unless the Board, in its discretion,
17 extends the 90-day period for good cause, for an additional 30 days upon the filing of a petition
18 by the applicant and upon a hearing by the Board. The Board may require the payment of a late
19 fee for an applicant failing to pay the initial license fee or failing to make the contribution to the
20 Fund pursuant to the requirements of this subsection.
21 …
22 "§ 74C-9. Form of license; term; renewal; posting; branch offices; not assignable; late
23 renewal fee.
24 …
25 (e) The Board is authorized to charge reasonable application and license fees as follows:
26 …
27 (7) An application fee for a firearm registration permit for all applicants and
28 licensees subject to G.S. 74C-13 not to exceed fifty dollars ($50.00).
29 (8) A new, renewal, replacement, or reissuance fee for a firearm registration
30 permit for all applicants and licensees subject to G.S. 74C-13 not to exceed
31 thirty dollars ($30.00).
32 …
33 (16) A late fee for a business entity subject to G.S. 74C-8(c)(3) or an applicant for
34 licensure under G.S. 74C-8(f) not to exceed one hundred dollars ($100.00).
35 Except as provided in G.S. 74C-13(k), all fees collected pursuant to this section shall be
36 expended, under the direction of the Board, for the purpose of defraying the expenses of
37 administering this Chapter.
38 (f) A license or trainee permit granted under the provisions of this Chapter may be
39 renewed by the Private Protective Services Board upon notification by the licensee or permit
40 holder to the Director of intended renewal, the payment of the proper fee, and evidence of a
41 policy of liability insurance policy as prescribed in G.S. 74C-10(e).
42 The renewal shall be finalized before the expiration date of the license. In no event will
43 renewal be granted more than three months after the date of expiration of a license or trainee
44 permit.
45 …
46 "§ 74C-10. Certificate of liability insurance required; form and approval; suspension for
47 noncompliance.
48 (a) through (d) Repealed by Session Laws 1983, c. 673, s. 4.
49 (e) No security guard and patrol, armored car, or special limited guard and patrol license
50 shall be issued under this Chapter unless the applicant files with the Board evidence of a policy
51 of liability insurance. insurance policy. The policy must provide for the following minimum
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1 coverage: fifty thousand dollars ($50,000) because of bodily injury or death of one person as a
2 result of the negligent act or acts of the principal insured or his or her agents operating in the
3 course and scope of his or her employment; subject to said limit for one person, one hundred
4 thousand dollars ($100,000) because of bodily injury or death of two or more persons as the result
5 of the negligent act or acts of the principal insured or his or her agents operating in the course
6 and scope of his or her agency; twenty thousand dollars ($20,000) because of injury to or
7 destruction of property of others as the result of the negligent act or acts of the principal insured
8 or his agents operating in the course and scope of his or her agency. If the licensee, a licensee or
9 a trainee supervised by a licensee, other than a security guard and patrol, armored car, or special
10 limited guard and patrol licensee, carries a firearm while engaged in private protective services
11 activities, the licensee shall obtain a policy of liability insurance with a minimum coverage as
12 specified above. A licensee or trainee is deemed to be "carrying a firearm" for purposes of this
13 section while engaged in private protective services if the licensee or trainee has a firearm on the
14 licensee's or trainee's person or in the automobile the licensee or trainee is using to perform
15 private protective services. A licensee may provide coverage for a trainee under the licensee's
16 supervision; however, failure of the licensee to provide coverage does not exempt the trainee
17 from the requirements of this section.
18 (e1) The Board shall approve the form, execution, and terms of the liability insurance
19 policy.
20 (f) An insurance carrier shall have has the right to cancel such policy of a liability
21 insurance policy upon giving a 30-day notice to the Boar