§ 74C-1. Title.

This Chapter may be cited as the Private Protective Services Act. The purpose of this act is to increase the level of integrity, competency, and performance of Private Protective Service Professions in order to safeguard the public health, safety, and welfare.

History

(1979, c. 818, s. 2; 1989, c. 759, s. 1.)

Editor's Note. - Session Laws 1983, c. 673, s. 1, designated G.S. 74C-1 through 74C-19 as Article 1 of Chapter 74C and enacted Article 2 thereof.

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s.38.7, is a severability clause.

Legal Periodicals. - For article, "Regulation Without Agency: A Practical Response to Private Policing in United States v. Day," see 89 N.C. L. Rev. 1338 (2011).

§ 74C-2. Licenses required.

1. 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 services profession or activity in this State without having first complied with the provisions of this Chapter. Compliance with the licensing requirements of this Chapter shall not relieve any person, firm, association or corporation from compliance with any other licensing law.
2. An individual in possession of a valid private protective services license or private detective trainee permit issued prior to October 1, 1989, 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.
3. 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.

History

(1973, c. 528, s. 1; 1979, c. 818, s. 1; 1989, c. 759, s. 2.)

§ 74C-3. Private protective services profession defined.

1. As used in this Chapter, the term "private protective services profession" means and includes the following:
   1. Armored car profession. - Any person, firm, association, or corporation which for a fee or other valuable consideration 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. This definition does not include a person operating an armored car business pursuant to a motor carrier certificate or permit issued by the North Carolina Utilities Commission which grants operating rights for such business; however, armed armored car service guards shall be subject to the provisions of G.S. 74C-13.
   2. Repealed by Session Laws 1983, c. 786, s. 2.
   3. Redesignated as subdivision (a)(5a) by the Revisor of Statutes.  See Editor's notes.
   4. Courier service profession. - Any person, firm, association, or corporation which for a fee or other valuable consideration 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 services. Armed courier service guards shall be subject to the provisions of G.S. 74C-13.
   5. Detection of deception examiner. - Any person, firm, association, or corporation which 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.
   6. Electronic countermeasures profession. - Any person, firm, association, or corporation which for a fee or other valuable consideration 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.
   7. Security guard and patrol profession. - Any person, firm, association, or corporation that provides a security guard on a contractual basis for another person, firm, association, or corporation for a fee or other valuable consideration and performs one or more of the following functions:
      1. Prevention or detection of intrusion, entry, larceny, vandalism, abuse, fire, or trespass on private property.
      2. Prevention, observation, or detection of any unauthorized activity on private property.
      3. Protection of patrons and persons lawfully authorized to be on the premises or being escorted between premises of the person, firm, association, or corporation that entered into the contract for security services.
      4. 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.
      5. (Delayed expiration - see note) Security services related to entry and exit, direction and movement of individuals at entry and exit, security working towers, and perimeter security patrols at State prison facilities.
   8. Guard dog service profession. - Any person, firm, association, or corporation which for a fee or other valuable consideration 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.
   9. 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:
      1. Crimes or wrongs done or threatened against the United States or any state or territory of the United States.
      2. 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.
      3. The location, disposition, or recovery of lost or stolen property.
      4. The cause or responsibility for fires, libels, losses, accidents, damages, or injuries to persons or to properties.
      5. Securing evidence to be used before any court, board, officer, or investigative committee.
      6. Protection of individuals from serious bodily harm or death.
   10. Special limited guard and patrol profession. - Any person who is licensed under Chapter 74D of the General Statutes of North Carolina and provides armed alarm responders pursuant to G.S. 74C-13. Applicants for this limited license shall not be required to meet the experience requirements for a security guard and patrol license. Any experience gained under this limited license shall not be counted as experience for a security guard and patrol license.
2. "Private protective services" shall not include any of the following:
   1. Licensed 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 the officer or employee is engaged in the performance of his or her official duties within the course and scope of his or her 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:
      1. Credit transactions involving the consumer on whom the information is to be furnished and involving the extensions of credit to the consumer,
      2. Information for employment purposes,
      3. Information for the underwriting of insurance involving the consumer,
      4. 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
      5. 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 the practice of law and the attorney's agent, provided the agent is performing duties only in connection with his or her principal's practice of law.
   5. The legal owner or lien holder, and his or her 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 the personal property.
   6. Repealed by Session Laws 1989, c. 759, s. 3.
   7. Repealed by Session Laws 1981, c. 807, s. 1.
   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 for that person, firm, association, or corporation and, while performing the job, to act as an undercover operative, employee, or independent contractor of a licensee, but under the supervision of a licensee.
   9. A person who is engaged in an alarm systems business subject to the provisions of Chapter 74D of the General Statutes.
   10. A person who obtains or verifies information regarding applicants for employment, with the knowledge and consent of the applicant, and is (i) engaged in business as a private personnel service as defined in G.S. 95-47.1 or engaged in business as a private employer fee pay personnel service, (ii) engaged in the business of obtaining or verifying information regarding applicants for employment, or (iii) an employer with whom the applicant has applied for employment.
   11. A person who conducts efficiency studies. An efficiency study is an analysis of an employer's business, made at the request of the employer, to determine one or more of the following:
       1. The most efficient procedures by which an employee of the business can perform the employee's assigned duties.
       2. The adequacy of an employee's performance of the employee's assigned duties that require interaction with a client or customer of the business.
   12. Research laboratories and consultants who analyze, test, or in any way apply their expertise to interpreting, evaluating, or analyzing facts or evidence submitted by another in order to determine the cause or effect of physical or psychological occurrences, and give their opinions and findings to the requesting source or to a designee of the requestor.
   13. A person who works regularly and exclusively as an employee of an employer in connection with the business affairs of that employer. If the employee is an armed security guard and wears, carries, or possesses a firearm in the performance of the employee's duties, the provisions of G.S. 74C-13 apply.
   14. An employee of a security department of a private business or other employee whose primary duty involves loss prevention or that conducts investigations on matters internal to the business affairs of the business or related to the location, disposition, or recovery of lost or stolen property reasonably believed to be owned by the business.
   15. Representatives of nonprofit organizations funded all or in part by business improvement districts who provide information and directions to local tourists and residents, engage in street cleaning and beautification services within the business improvement districts, and notify local law enforcement of any illegal activity observed by the representatives within the business improvement districts.
   16. Emergency medical services personnel credentialed under Article 7 of Chapter 131E of the General Statutes who engage in search and rescue activities at the request of either the State, a political subdivision of the State, or one of the following types of facilities: an adult care home licensed under Chapter 131D of the General Statutes, a health care facility or agency licensed under Chapter 131E of the General Statutes, or a facility licensed to offer mental health, developmental disabilities, or substance abuse services under Chapter 122C of the General Statutes. For the purposes of this subdivision, "search and rescue" means activities and documents relating to efforts to locate an individual following the individual's disappearance. This exemption shall not apply if the emergency medical services provider provides services beyond emergency search and rescue and said activities meet the definition of private protective services as defined in G.S. 74C-3.
   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.

If a person making an efficiency study observes an instance of theft or another illegal act committed by an employee of the business, the person may report the instance to the employer without violating G.S. 74C-3(a)(8).

History

(1973, c. 528, s. 1; 1977, c. 481; 1979, c. 818, s. 2; 1981, c. 807, ss. 1-3; 1983, c. 259; c. 786, ss. 2, 3; c. 794, s. 1; 1987, c. 284; c. 657, s. 1; 1989, c. 759, s. 3; 2001-487, s. 64(a); 2006-264, s. 46; 2007-469, s. 6; 2007-511, s. 1; 2009-328, s. 1; 2019-193, s. 1(a); 2020-3, s. 4.15(a); 2020-15, s. 2.)

Editor's Note. - Subdivision (a)(3) has been redesignated as subdivision (a)(5a) at the direction of the Revisor of Statutes in order to maintain the definitions in alphabetical order following the amendment of that subdivision by Session Laws 2007-511, s. 1.

Session Laws 2020-3, s. 4.15(c), as amended by Session Laws 2020-15, s. 2, made sub-subdivision (a)(6)e., as added by Session Laws 2020-3, s. 4.15(a), effective May 4, 2020, and expiring upon the earlier of August 1, 2022, or the date of completion of the Youth Development Center in Rockingham County.

Session Laws 2020-3, s. 5, is a severability clause.

Effect of Amendments. - Session Laws 2006-264, s. 46, effective August 27, 2006, in subsection (b), substituted "; or" for a period at the end of subdivision (b)(14), and added subdivision (b)(15).

Session Laws 2007-469, s. 6, effective August 29, 2007, added "any of the following" in the introductory language of subsection (b), made minor punctuation changes in subdivisions (b)(1) through (b)(15), and added subdivision (b)(16).

Session Laws 2007-511, s.1, effective October 1, 2007, rewrote this section.

Session Laws 2009-328, s. 1, effective October 1, 2009, added subdivision (b)(17).

Session Laws 2019-193, s. 1(a), effective October 1, 2019, rewrote subdivision (b)(14), which formerly read: "An employee of a security department of a private business that conducts investigations exclusively on matters internal to the business affairs of the business."

Session Laws 2020-3, s. 4.15(a), added sub-subdivision (a)(6)e. For effective date and expiration, see editor's note.

Legal Periodicals. - For comment, "The Polygraph: Perceiving or Deceiving Us?," see 13 N.C. Cent. L.J. 84 (1981).

§ 74C-4. Private Protective Services Board established; members; terms; vacancies; compensation; meetings.

1. The Private Protective Services Board is hereby established in the Department of Public Safety to administer the licensing and set educational and training requirements for persons, firms, associations, and corporations engaged in a private protective services profession within this State.
2. The Board shall consist of 14 members: the Secretary of Public Safety or the Secretary's designated representative, seven persons appointed by the Governor, three persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, and three persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives. All appointments by the General Assembly shall be subject to the provisions of G.S. 120-121, and vacancies in the positions filled by those appointments shall be filled pursuant to G.S. 120-122. One of those persons appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, three of the members appointed by the Governor, and all three persons appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives shall be licensees under this Chapter; all other appointees may not be licensees of the Board nor licensed by the Board while serving as Board members. All persons appointed shall serve terms of three years. With the exception of the Secretary of Public Safety or the Secretary's designated representative, no person shall serve more than eight consecutive years on the Board. Board members may continue to serve until their successors have been appointed. The initial terms of three of the members appointed by the Governor shall expire July 1, 2020. The initial terms of one member appointed by each authority making an appointment pursuant to this subsection shall expire July 1, 2021. All other initial terms of members appointed pursuant to this subsection shall expire July 1, 2022.
3. Vacancies on the Board occurring for any reason shall be filled by the authority making the original appointment of the person causing the vacancy.
4. 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.
5. 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.
6. The Board shall elect a Chair, vice-chair, and other officers and committee Chairs from among its members as the Board deems necessary and desirable at the first meeting after July 1 of each year. The Chair and vice-chair 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 Chair 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.
7. 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.
8. The Board shall pay the appropriate State agency for the use of physical facilities and services provided to it by the State.

History

(1973, c. 528, s. 1; 1975, c. 592, ss. 8, 9; 1977, c. 535; 1979, c. 818, s. 2; 1981, c. 148, s. 1; c. 807, s. 7; 1983, c. 794, s. 7; 1985, c. 597, s. 12; 1989, c. 759, s. 4; 1995, c. 490, s. 39; 2000-181, s. 2.3; 2011-145, s. 16.3(a); 2014-100, s. 17.5(c); 2019-32, s. 4.)

Editor's Note. - Session Laws 1989, c. 500, s. 59 provides that the Private Protective Services and Alarm Systems Licensing Boards are responsible for adjusting fees as necessary within the statutory limits to ensure that both boards are operated on a self-supporting fee-funded basis.

Chapter 74B, referred to in this section, was repealed by Session Laws 1979, c. 818, s. 1. See now this chapter.

Session Laws 2014-100, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2014.'"

Session Laws 2014-100, s. 38.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2014-2015 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2014-2015 fiscal year."

Session Laws 2014-100, s. 38.7, is a severability clause.

Session Laws 2019-32, s. 7, provides: "This act becomes effective July 1, 2019. All rules, regulations, and decisions made by the predecessor boards and authorities reconstituted in this act shall remain in full force and effect until and unless duly modified by the successor entities."

Effect of Amendments. - Session Laws 2011-145, s. 16.3(a), effective July 1, 2011, added subsection (h).

Session Laws 2014-100, s. 17.5(c), effective July 1, 2014, substituted "Department of Public Safety" for "Department of Justice" in subsection (a); and rewrote the first and next-to-last sentences in subsection (b).

Session Laws 2019-32, s. 4, in subsection (b), substituted "three" for "five" throughout, substituted "seven persons" for "three persons" in the first sentence, substituted "of the Senate, three of the members appointed by the Governor" for "of the Senate" in the third sentence, and added the last three sentences; in subsection (f), substituted "Chair" or variants, for "chairman" throughout, substituted "Chair, vice-chair" for "chairman, vice-chair", and substituted "vice-chair" for "vice-chairman". For effective date and applicability, see editor's note.

Opinions of Attorney General

Temporary employment agency providing armed guards to its clients on a contractual basis falls within the definition of a contract security company and must be licensed by the Board as a statutory prerequisite to engaging in the private protective services business as defined in G.S. 74C-3. See opinion of Attorney General to Mr. James F. Kirk, Administrator, N.C. Private Protection Services Board, 57 N.C.A.G. 55 (Oct. 16, 1987).

Temporary employment agency under contract to North Carolina Ports Authority to provide armed guards who are certified law-enforcement officers under Chapter 17C must be licensed under this Chapter, even though the Chief of Security for the Ports Authority interviews and selects the officers hired by the agency to provide armed security for the Ports Authority, where the agency places the guards on its payroll, withholds taxes and social security and provides other fringe benefits. See opinion of Attorney General to Mr. James F. Kirk, Administrator, N.C. Private Protection Services Board, 57 N.C.A.G. 55 (Oct. 16, 1987).

§ 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:

1. Adopt 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, establish and require written or oral examinations, 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 or trainee permit issued or to be issued under this Chapter to any applicant, licensee, or permit holder who fails to satisfy the requirements of this Chapter or the rules established by the Board. The denial, suspension, or revocation shall be in accordance with Chapter 150B 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. Chapter 5A, Article 2, 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. Repealed by Session Laws 1989, c. 759, s. 5.
9. Adopt rules governing detection of deception schools, and charge fees for reimbursement of costs incurred pursuant to approval of the schools.
10. Contract for services as necessary to carry out the functions of the Board.
11. Approve training schools, instructors, and course materials for any person, firm, association, or corporation wishing to provide training described in this Chapter.
12. Approve a design for a badge or shield that indicates a person is licensed or registered to engage in private protective services. The badge or shield shall be approved by the North Carolina Sheriffs' Association and the North Carolina Association of Chiefs of Police.

History

(1973, c. 528, s. 1; c. 1331, s. 3; 1979, c. 818, s. 2; 1981 (Reg. Sess., 1982), c. 1359, s. 3; 1983, c. 794, s. 2; c. 810; 1989, c. 759, s. 5; 1999-456, s. 19; 2007-511, s. 2.)

Effect of Amendments. - Session Laws 2007-511, s. 2, effective October 1, 2007, in the introductory paragraph, added "do all of the following"; substituted "Adopt rules" for "Promulgate rules" in subdivision (1); substituted "Adopt rules" for "Establish rules" in subdivision (9); added subdivisions (11) and (12); and made minor stylistic changes throughout the section.

Opinions of Attorney General

Temporary employment agency providing armed guards to its clients on a contractual basis falls within the definition of a contract security company and must be licensed by the Board as a statutory prerequisite to engaging in the private protective services business as defined in G.S. 74C-3. See opinion of Attorney General to Mr. James F. Kirk, Administrator, N.C. Private Protection Services Board, 57 N.C.A.G. 55 (Oct. 16, 1987).

Temporary employment agency under contract to North Carolina Ports Authority to provide armed guards who are certified law-enforcement officers under Chapter 17C must be licensed under this Chapter, even though the Chief of Security for the Ports Authority interviews and selects the officers hired by the agency to provide armed security for the Ports Authority, where the agency places the guards on its payroll, withholds taxes and social security and provides other fringe benefits. See opinion of Attorney General to Mr. James F. Kirk, Administrator, N.C. Private Protection Services Board, 57 N.C.A.G. 55 (Oct. 16, 1987).

The Private Protective Services Board has the authority to inspect the records of all licensees as part of an evaluation conducted pursuant to subdivision (3). See opinion of Attorney General to James F. Kirk, Administrator, N.C. Private Protective Services Board, 60 N.C.A.G. 12 (1990).

The Private Protective Services Board does not have authority to issue temporary private investigator trainee permits and cannot delegate authority to the Administrator to issue such a permit. See opinion of Attorney General to Mr. Wayne Woodard, Administrator, Private Protective Services Board, 1999 N.C. AG LEXIS 29 (11/22/99).

§ 74C-6. Position of Director created.

The position of Director of the Private Protective Services Board is hereby created within the Department of Public Safety. The Secretary of Public Safety shall appoint a person to fill this full-time position. The Director'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.

History

(1973, c. 528, s. 1; 1979, c. 818, s. 2; 1999-456, s. 20; 2001-487, s. 64(b); 2014-100, s. 17.5(b), (d).)

Effect of Amendments. - Session Laws 2014-100, s. 17.5(b), (d), effective July 1, 2014, substituted "Department of Public Safety" for "Department of Justice" in the first sentence; and substituted "Secretary of Public Safety" for "Attorney General" in the second sentence.

Opinions of Attorney General

The Private Protective Services Board cannot delegate its authority to a supervising private investigator to conduct a criminal background check, verify previous employment, check character references, and submit a report that is stapled to the request for a temporary permit. See opinion of Attorney General to Mr. Wayne Woodard, Administrator, Private Protective Services Board, 1999 N.C. AG LEXIS 29 (11/22/99).

§ 74C-7. Investigative powers of the Secretary of Public Safety.

The Secretary of Public Safety 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. 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.

History

(1973, c. 528, s. 1; 1979, c. 818, s. 2; 2009-328, s. 2; 2014-100, s. 17.5(b).)

Effect of Amendments. - Session Laws 2009-328, s. 2, effective October 1, 2009, added the last two sentences.

Session Laws 2014-100, s. 17.5(b), effective July 1, 2014, substituted "Secretary of Public Safety" for "Attorney General" in the section heading, and throughout the section.

§ 74C-8. License requirements.

1. License Required. - Any person, firm, association, or corporation desiring to carry on or engage in the private protective services profession in this State shall be licensed in accordance with this Chapter.
2. Application. - To apply for a license, an applicant must submit a verified application in writing to the Board that includes all of the following:
   1. Full name, home address, post office box, and the actual street address of the applicant's business.
   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. The full name and address of any partners in the business and the principal officers, directors and 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.
   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.
3. 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:
   1. The business entity shall employ a designated resident 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, unless otherwise approved by the Board. Provided however, that this approval shall not be given unless the business entity has and continuously maintains in this State a registered agent who shall be an individual resident in this State. Service upon the registered agent appointed by the business entity of any process, notice, or demand required by or permitted to be served upon the business entity by the Private Protective Services Board shall be binding upon the business entity and the licensee. Nothing herein contained shall limit or affect the right to serve any process, notice, or demand required or permitted by law to be served upon a business entity in any other manner now or hereafter permitted by law.
   2. Repealed by Session Laws 2009-328, s. 3, effective October 1, 2009.
   3. 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 Director 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.
   4. The certificate authorizing the business entity to engage in a private protective services profession shall list the name of at least one designated qualifying agent. No licensee shall serve as the qualifying agent for more than one business entity without prior approval of the Director, subject to the approval of the Board.
   5. Repealed by Session Laws 2009-328, s. 3, effective October 1, 2009.
4. 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:
   1. That the applicant is at least 18 years of age.
   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; 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 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.
   3. Repealed by Session Laws 1989, c. 759, s. 6.
   4. That the applicant has the necessary training, qualifications, and 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.
5. Examination. - The Board may require the applicant to demonstrate the applicant's qualifications by oral or written examination or by successful completion of a Board-approved training program, or all three.
6. 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 certificate of liability insurance.
   1. through (5) Repealed by Session Laws 1989, c. 759, s. 6.
7. Confidentiality. - Except for purposes of administering the provisions of this section and for law enforcement purposes, the home address or telephone number of an applicant, licensee, or the spouse, children, or parents of an applicant or licensee is confidential under G.S. 132-1.2, and the Board shall not disclose this information unless the applicant or licensee consents to the disclosure. The provisions of this subsection shall not apply when a licensee's home address or telephone number is also the licensee's business address and telephone number. Violation of this subsection shall constitute a Class 3 misdemeanor.

History

(1973, c. 47, s. 2; c. 528, s. 1; 1975, c. 592, s. 1; 1977, c. 570, s. 2; 1979, c. 818, s. 2; 1983, c. 673, s. 3; c. 794, ss. 3, 11; 1985, c. 560; 1987, c. 657, ss. 2, 2.1; 1989, c. 759, s. 6; 1999-446, s. 1; 2001-487, s. 64(c); 2002-147, s. 3; 2009-328, s. 3.)

Editor's Note. - Session Laws 2002-147, s. 15, provides: "If the Private Security Officer Employment Standards Act of 2002 [S. 2238, 107th Cong. (2002)] is enacted by the United States Congress, the State of North Carolina declines to participate in the background check system authorized by that act as a result of the enactment of this act."

Effect of Amendments. - Session Laws 2009-327, s. 3, effective October 1, 2009, rewrote the section.

Legal Periodicals. - For comment, "The Polygraph: Perceiving or Deceiving Us?," see 13 N.C. Cent. L.J. 84 (1981).

§ 74C-8.1. Criminal background checks.

1. Authorization. - Upon receipt of an application for a license, registration, certification, or permit, the Board shall conduct a background investigation to determine whether the applicant meets the requirements for a license, registration, certification, or permit set out in G.S. 74C-8(d). The Department of Public Safety may provide a criminal record check to the Board for a person who has applied for a new or renewal license, registration, certification, or permit through the Board. The Board shall provide to the Department of Public Safety, along with the request, the fingerprints of a new applicant, and the Department of Public Safety shall provide a criminal record check based upon the applicant's fingerprints. The Board may request a criminal record check from the Department of Public Safety for a renewal applicant based upon the applicant's fingerprints in accordance with policy adopted by the Board. The Board shall provide any additional information required by the Department of Public Safety and a form signed by the applicant consenting to the check of the criminal record and to the use of the fingerprints and other identifying information required by the State or national repositories. The applicant's fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's criminal history record file, and the State Bureau of Investigation shall forward a set of the fingerprints to the Federal Bureau of Investigation for a national criminal history check. The Department of Public Safety may charge each applicant a fee for conducting the checks of criminal history records authorized by this subsection.
2. Confidentiality. - The Board shall keep all information obtained pursuant to this section confidential in accordance with applicable State law and federal guidelines, and the information shall not be a public record under Chapter 132 of the General Statutes.

The Board may require a new or renewal applicant to obtain a criminal record report from one or more reporting services designated by the Board to provide criminal record reports. Applicants are required to pay the designated reporting service for the cost of these reports.

History

(2009-328, s. 4; 2014-100, s. 17.1(o).)

Effect of Amendments. - Session Laws 2014-100, s. 17.1(o), effective July 1, 2014, substituted "Department of Public Safety" for "Department of Justice" throughout subsection (a).

§ 74C-9. Form of license; term; renewal; posting; branch offices; not assignable; late renewal fee.

1. 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.
2. The license shall be issued for a term of two years. A trainee permit shall be issued for a term of two years. 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 licensee's principal place of business, in North Carolina, unless for good cause exempted by the Director. A license issued under this Chapter is not assignable. The Board may require all licensees to complete continuing education courses approved by the Board before renewal of their licenses.
3. Repealed by Session Laws 1989, c. 759, s. 7.
4. The operator or manager of any branch office shall be properly licensed or registered. The license shall be posted at all times in a conspicuous place in the branch office. This license shall be issued for a term of two years. 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. The Director may, upon the successful completion of an investigation of the application, issue a temporary branch office license pending approval of the application by the Board.
5. 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 one hundred fifty dollars ($150.00).
   2. A new or renewal license fee in an amount not to exceed two hundred fifty dollars ($250.00) per year of the license term.
   3. A new or renewal trainee permit fee in an amount not to exceed two hundred fifty dollars ($250.00) per year of the license term.
   4. A new or renewal fee for each license or duplicate license in addition to the basic license referred to in subsection (2) in an amount not to exceed fifty dollars ($50.00) per year of the license term.
   5. A late renewal fee to be paid within 90 days from the date the license, registration, permit, or certification expires in addition to the renewal fee due in an amount not to exceed one hundred dollars ($100.00), if the license, registration, permit, or certification has not been renewed on or before the expiration date of the license, registration, permit, or certification.
   6. A new, renewal, replacement or reissuance fee for an unarmed registration identification card in an amount not to exceed thirty dollars ($30.00).
   7. An application fee for a firearm registration permit not to exceed fifty dollars ($50.00).
   8. A new, renewal, replacement, or reissuance fee for a firearm registration permit not to exceed thirty dollars ($30.00).
   9. An application fee for certification as a certified trainer not to exceed fifty dollars ($50.00).
   10. A renewal or replacement fee for certified trainer certification not to exceed twenty-five dollars ($25.00).
   11. A new nonresident temporary permit fee not to exceed one hundred dollars ($100.00).
   12. An unarmed registration transfer fee not to exceed fifteen dollars ($15.00).
   13. A branch office license fee not to exceed fifty dollars ($50.00) per year of the license term.
   14. A special limited guard and patrol license fee not to exceed one hundred dollars ($100.00) per year of the license term.
   15. A correctable error fee not to exceed one hundred dollars ($100.00) for each subsequent filing of an application following review and rejection of the initial application.
6. 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 as prescribed in G.S. 74C-10(e).
7. Upon notification of approval of the application by the Board, an applicant must furnish evidence that the applicant has obtained the necessary liability insurance required by G.S. 74C-10 and obtain the license applied for or the application shall lapse.
8. Trainee permits shall not be issued to applicants that qualify for a private detective license. A licensed private detective may supervise no more than five trainees at any given time.

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.

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.

History

(1973, c. 528, s. 1; c. 1428; 1975, c. 592, ss. 2-4; 1979, c. 818, s. 2; 1983, c. 67, s. 1; c. 794, s. 8; 1985, c. 597, ss. 1-7; 1987, c. 657, s. 3; 1989, c. 759, s. 7; 2001-487, s. 64(d); 2007-511, s. 3; 2009-328, ss. 5, 6.)

Effect of Amendments. - Session Laws 2007-511, s. 3, effective October 1, 2007, in subsection (b), substituted "two years" for "one year" in both places it appears, and added the last sentence; in subdivisions (e)(2) and (e)(3) inserted "per year of the license term"; in subdivisions (e)(7) and (e)(8) substituted "fee for a" for "fee for an armed security guard"; and in subsection (g) made stylistic changes.

Session Laws 2009-328, ss. 5 and 6, effective October 1, 2009, in subsection (d), substituted "two years" for "one year" at the end of the third sentence; and in subsection (e), made minor punctuation changes throughout; in subdivisions (e)(4), (e)(13), and (e)(14), added "per year of the license term" at the end; in subdivision (e)(5), inserted "within 90 days from the date the license, registration, permit, or certification expires" once and "registration, permit, or certification" twice; and added subdivision (e)(15).

Opinions of Attorney General

Permit Fees. - The Private Protective Services Board has the authority pursuant to subdivision (e)(8) to charge private investigators a full fee for an armed security guard firearm registration permit. See opinion of Attorney General to James F. Kirk, Administrator, N.C. Private Protective Services Board, 60 N.C.A.G. 12 (1990).

§ 74C-10. Certificate of liability insurance required; form and approval; suspension for noncompliance.

1. through (d) Repealed by Session Laws 1983, c. 673, s. 4.
2. 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. 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 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. If the 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 is deemed to be "carrying a firearm" for purposes of this section while engaged in private protective services if the licensee has a firearm on the licensee's person or in the automobile the licensee is using to perform private protective services.
3. 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.
4. The holder of any trainee permit and persons registered pursuant to G.S. 74C-11 shall not be required to obtain a certificate of liability insurance.
5. Every security guard and patrol licensee, armored car licensee, special limited guard and patrol licensee, or licensee carrying a firearm while engaged in private protective services shall at all times maintain on file with the Board the 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 insurance certificate.
6. 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. Because the applicant engaged in a private protective services profession while the applicant's license was suspended for failure to keep the required liability insurance policy in force.

No cancellation or refusal to renew by an insurer of a licensee under this Chapter shall be effective unless the insurer has given the insured licensee notice of the cancellation or refusal to renew. Upon termination of insurance coverage for said licensee, the insurer shall give notice to the Director of the Board.

History

(1973, c. 528, s. 1; 1979, c. 818, s. 2; 1981, c. 807, ss. 4, 5; 1983, c. 673, ss. 4-6, 8; c. 794, s. 4; 1989, c. 759, s. 8; 2001-487, s. 64(e); 2007-511, ss. 4, 5.)

Effect of Amendments. - Session Laws 2007-511, ss. 4-5, effective October 1, 2007, in subsection (e), inserted "security guard and patrol, armored car, or special limited guard and patrol" in the first sentence, and added the last two sentences; and substituted "Every security guard and patrol licensee, armored car licensee, special limited guard and patrol licensee, or licensee carrying a firearm while engaged in private protective services" for "Every licensee" in subsection (h).

Legal Periodicals. - For article, "In Defense of Occupational Licensing: A Legal Practitioner's Perspective,” see 43 Campbell L. Rev. 423 (2021).

§ 74C-11. Probationary employees and registration of regular employees; unarmed security guard required to have registration card.

1. All licensees may employ unarmed security guards as probationary employees for 20 consecutive calendar days. Upon completion of the probationary period and the desire of the licensee to hire an unarmed security guard as a regular employee, the licensee shall register the employee who will be engaged in providing private protective services covered by this Chapter with the Board within 30 days after the probationary employment period ends, unless the Director, in the Director's discretion, extends the time period, for good cause. Before a probationary employee engages in private protective services, the employee shall complete any training requirements, and the licensee shall conduct a criminal record check on the employee, as the Board deems appropriate. The licensee shall submit a list of the probationary employees to the Director on a monthly basis. The list shall include the name, address, social security number, and dates of employment of the employees.
   1. Set(s) of classifiable fingerprints on standard F.B.I. applicant cards; recent photograph(s) of acceptable quality for identification; and
   2. Statements of any criminal records obtained from the appropriate authority in each area where the employee has resided within the immediately preceding 48 months.
2. A security guard and patrol company may not employ an unarmed security guard in a regular position unless the guard has a registration card issued under subsection (d) of this section. A person engaged in a private protective services profession may not employ an armed security guard unless the guard has a firearm registration permit issued under G.S. 74C-13.
3. The Director shall be notified in writing of the termination of any regular employee registered under subsection (a) of this section within 10 days after the termination.
4. An unarmed security guard shall make application to the Director for an unarmed registration card which the Director shall issue to the applicant after receipt of the information required to be submitted by the applicant's employer pursuant to subsection (a) of this section, and after meeting any additional requirements which the Board, in its discretion, deems to be necessary. The unarmed 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 may have the applicant's photograph affixed to the card. The unarmed security guard registration card shall expire one year after its date of issuance and shall be renewed every year. The Board may require all registration holders to complete continuing education courses approved by the Board before renewal of their registrations. If an unarmed registered security guard is terminated by a licensee and changes employment to another security guard and patrol company, the security guard's registration card shall remain valid, provided the security guard pays the unarmed guard registration transfer fee to the Board and a new unarmed security guard registration card is issued. An unarmed security guard whose transfer registration application and transfer fee have been sent to the Board may work with a copy of the transfer application until the registration card is issued.
5. 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 the licensee, prior to employing the unarmed security guard, submits to the Director the name, address, and social security number of the unarmed guard and the name of the state of current registration or licensing, and the Director approves the employment of the unarmed guard in this State.
6. Repealed by Session Laws 2005-211, s. 1, effective July 20, 2005.

To register an employee after the probationary period ends, a licensee must give the Board the following:

History

(1979, c. 818, s. 2; 1983, c. 67, s. 2; 1985, c. 597, ss. 8, 9; 1987, c. 657, ss. 4, 5; 1989, c. 759, s. 9; 2001-487, s. 64(f); 2005-211, s. 1; 2007-511, s. 6; 2009-328, s. 7.)

Effect of Amendments. - Session Laws 2005-211, s. 1, effective July 20, 2005, in the section heading, substituted "Probationary employees and registration of regular" for "Registration of permanent and temporary"; rewrote subsection (a); in subsection (b), added "in a regular position"; in subsection (c), added "regular" and "of this section" and substituted "the" for "said"; and deleted subsection (f), which read: "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 that employee in accordance with this section; provided that the licensee submits to the Director a quarterly report, within 30 days after the end of the quarter in which the temporary employee worked, which provides the Director with the name, address, social security number, and dates of employment of such employee."

Session Laws 2007-511, s. 6, effective October 1, 2007, in subsection (d), made minor stylistic changes, substituted "the applicant's employer" for "his employer" and inserted "of this section" in the first sentence, substituted "affixed to the card" for "affixed thereto" in the second sentence, and inserted the fourth sentence.

Session Laws 2009-328, s. 7, effective October 1, 2009, inserted "consecutive" in the first sentence of the first paragraph of subsection (a).

§ 74C-12. Denial, suspension, or revocation of license, registration, or permit; duty to report criminal arrests.

1. The Board may, after compliance with Chapter 150B of the General Statutes, deny, suspend or revoke a license, registration, or permit issued under this Chapter if it is determined that the applicant, licensee, 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, or permit or for the renewal or reinstatement of a license, registration, or permit.
   2. Violated any provision of this Chapter.
   3. Violated any rule adopted by the Board pursuant to the authority contained in this Chapter.
   4. Repealed by Session Laws 1989, c. 759, s. 10.
   5. Impersonated or permitted or aided and abetted any other person to impersonate a law enforcement officer of the United States, this State, any other state, or any political subdivision of a state.
   6. Engaged in or permitted any employee to engage in a private protective services profession 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 as agreed between the parties and for which compensation has 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. Repealed by Session Laws 1989, c. 759, s. 10.
   12. Undertaken to give legal advice or counsel or to in any way falsely represent that he or she is representing any attorney or he or she is appearing or will appear as an attorney in any legal proceeding.
   13. Issued, delivered, or uttered any simulation of process of any nature which might lead a person 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. Failed to make the required contribution to the Private Protective Services Education Fund or failed to maintain the certificate of liability insurance required by this Chapter.
   15. Violated the firearm provisions set forth in this Chapter.
   16. Repealed by Session Laws 1989, c. 759, s. 10.
   17. Failed to notify the Director 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. Failed 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. Been judged incompetent by a court having jurisdiction under Chapter 35A or former Chapter 35 of the General Statutes or committed to a mental health facility for treatment of mental illness, as defined in G.S. 122C-3, by a court under G.S. 122C-271.
   20. Failed or refused to offer a report to a client within 30 days of the client's written request after the client has paid for services rendered.
   21. Been previously denied a license, registration, or permit under this Chapter or previously had a license, registration, or permit revoked for cause. The denial or revocation shall include a principal in the applicant's business.
   22. Engaged in a private protective services profession under a name other than the name under which the license was obtained under the provisions of this Chapter.
   23. Divulged to any person, except as required by law, any information acquired by the license holder except at the direction of the employer or client for whom the information was obtained. A licensee may divulge to any law enforcement officer or district attorney or district attorney's representative any information the law enforcement officer may require to investigate a criminal offense with the prior approval and consent of the client.
   24. Fraudulently held himself or herself out as employed by or licensed by the State Bureau of Investigation or any other governmental authority.
   25. Demonstrated intemperate habits or a lack of good moral character. The acts that are prima facie evidence of intemperate habits or lack of good moral character under G.S. 74C-8(d)(2) are prima facie evidence of the same under this subdivision.
   26. Advertised or solicited business using a name other than that in which the license was issued.
   27. Worn, carried, or accepted any badge or shield purporting to indicate that the person is a law enforcement officer while licensed under the provisions of this Chapter as a private investigator.
   28. Possessed or displayed a badge or shield while providing private protective services that was not designed and approved by the Board pursuant to G.S. 74C-5(12).
   29. Failed or refused to reasonably cooperate with the Board or its agents during an investigation of any complaint, allegation, suspicion of wrongdoing, or violation of this Chapter.
   30. Failed to properly make any disclosure to the Board or provide documents or information required by this Chapter or rules adopted by the Board.
   31. Engaged in conduct constituting dereliction of duty or otherwise deceived, defrauded, or harmed the public in the course of professional activities or services.
   32. Demonstrated a lack of financial responsibility.
2. The denial, revocation, or suspension of a license, registration, or permit by the Board shall be in writing, be signed by the Director of the Board, and state the grounds upon which the Board decision is based. The aggrieved person shall have the right to appeal from this decision as provided in Chapter 150B of the General Statutes. The aggrieved person shall file the appeal within 60 days of receipt of the Board's decision.
3. The following persons may not be issued a license under this Chapter:
   1. A sworn court official.
   2. A holder of a company police commission under Chapter 74E of the General Statutes.
4. 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:
   1. Crimes that have as an essential element dishonesty, deceit, fraud, or misrepresentation.
   2. Illegal use, possession, sale, manufacture, distribution, or transportation of a controlled substance, drug, narcotic, or alcoholic beverage.
   3. Illegal use, carrying, or possession of a firearm.
   4. Acts involving assault.
   5. Acts involving unlawful breaking or entering, burglary, or larceny.
   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, 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.

History

(1979, c. 818, s. 2; 1981, c. 807, s. 6; 1987, c. 550, s. 20; c. 657, s. 6; 1989, c. 759, s. 10; 1991 (Reg. Sess., 1992), c. 1043, s. 5; 2001-487, s. 64(g); 2007-511, s. 7; 2009-328, ss. 8, 9.)

Effect of Amendments. - Session Laws 2007-511, s. 7, effective October 1, 2007, added "duty to report criminal arrests" in the section heading; added "done any of the following acts" in subsection (a); substituted "adopted" for "promulgated" in the middle of subdivision (a)(3); added "after the client has paid for services rendered" in subdivision (a)(20); in subdivision (a)(23), substituted "the license holder" for "him" in the first sentence and "district attorney's" for "his" in the second sentence; inserted "or herself" in subdivision (a)(24); substituted "law enforcement officer" for "private detective or private investigator" in subdivision (a)(27); added subdivision (a)(28); added the last sentence in subsection (b); added subsection (d); and made minor stylistic changes throughout the section.

Session Laws 2009-328, ss. 8 and 9, effective October 1, 2009, in subdivision (a)(13), deleted "or persons" following "a person"; in subdivision (a)(14), substituted "Education" for "Recovery"; in subdivision (a)(21), added the last sentence; in subdivision (a)(25), in the first sentence, substituted "Demonstrated intemperate habits or a lack of" for "Intemperate habits or lacks" at the beginning; added subdivisions (a)(29) through (a)(32); and in subsection (c), deleted "registration, or permit" following "license" in the introductory language.

Legal Periodicals. - For article, "In Defense of Occupational Licensing: A Legal Practitioner's Perspective,” see 43 Campbell L. Rev. 423 (2021).

§ 74C-13. Armed licensee or registered employee required to have firearm registration permit; firearms training.

1. 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 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.
2. The following definitions apply in this section:
   1. Armed private investigator. - A licensed private investigator who, at any time, wears, carries, or possesses a firearm in the performance of duty.
   2. Armed security guard. - An individual employed by a contract security company or a proprietary security organization whose principal duty is that of an armed security watchman; armed armored car service guard; armed alarm system company responder; or armed courier service who at any time wears, carries, or possesses a firearm in the performance of duty.
   3. Contract security company. - Any person, firm, association, or corporation engaging in a private protective services profession that provides services on a contractual basis for a fee or other valuable consideration to any other person, firm, association, or corporation.
   4. Proprietary security organization. - Any person, firm, association, or corporation or department thereof which employs security guards, 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 the employer.
3. 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:
   1. A firearm registration permit grants authority to the armed security guard, or armed private investigator, while in the performance of his or her duties or traveling directly to and from work, to carry any 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 guards 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 guard in the performance of his or her duties.
4. The applicant for a firearm registration permit shall submit an application to the Board on a form provided by the Board.
5. 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.
6. 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.
7. If an armed security guard terminates his or her 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.
8. A contract security company or proprietary security organization shall be allowed to employ an individual for 30 days as an armed security guard pending completion of the firearms training required by this Chapter, if the contract security company or proprietary security organization obtains prior approval from the Director. The Board and the Secretary of Public Safety shall provide by rule the procedure by which an armed private investigator, a contract security company, or a proprietary security organization applicant may be issued a temporary firearm registration permit by the Director of the Board pending a determination by the Board of whether to grant or deny an applicant a firearm registration permit.
9. 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 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.
10. 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:
       1. Legal limitations on the use of hand guns and on the powers and authority of an armed security guard.
       2. Familiarity with this section.
       3. Range firing and procedure and hand gun safety and maintenance.
       4. Any other topics of armed security guard training curriculum which the Board deems necessary.
    2. An applicant for a firearm registration permit must fire a minimum qualifying score to be determined by the Board and the Secretary of Public Safety on any approved target course approved by the Board and the Secretary of Public Safety.
    3. A firearms registrant must complete a refresher course and shall requalify on the prescribed target course prior to the renewal of his or her firearm registration permit.
    4. The Board and the Secretary of Public Safety shall have the authority to promulgate all rules necessary to administer the provisions of this section concerning the training requirements of this section.
11. The Board may not issue a firearm registration permit to an applicant until the applicant's employer submits evidence satisfactory to the Board that the applicant:
    1. Has satisfactorily completed an approved training course.
    2. Meets all the qualifications established by this section and by the rules promulgated to implement this section.
    3. Is mentally and physically capable of handling a firearm within the guidelines set forth by the Board and the Secretary of Public Safety.
12. The Board and the Secretary of Public Safety 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 permit by the Board.
13. All fees collected pursuant to G.S. 74C-9(e)(7) and (8) shall be expended, under the direction of the Board, for the purpose of defraying the expense of administering the firearms provisions of this Chapter.
14. The Board and the Secretary of Public Safety shall establish a training program for certified trainers to be conducted by agencies and institutions approved by the Board and the Secretary of Public Safety. The Board or the Secretary of Public Safety shall have the authority to promulgate all rules necessary to administer the provisions of this subsection.
    1. The Board and the Secretary of Public Safety shall also establish renewal requirements for certified trainers. The Board may require all certified trainers to complete continuing education courses approved by the Board before renewal of their certifications.
    2. No certified firearms trainer shall certify a licensee or registrant unless the licensee or registrant has successfully completed the firearms training requirements set out above in subsection (h) of this section.
15. The Board and the Secretary of Public Safety shall establish a training program for unarmed security guards 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 shall have the authority to promulgate all rules necessary to administer the provisions of this subsection.
16. A private investigator shall be permitted to carry a concealed weapon during the performance of his or her duties as a private investigator upon: (i) obtaining a concealed weapon permit issued pursuant to G.S. 14-415.11; (ii) successfully completing the firearms training course approved by the Board and the Secretary of Public Safety; and (iii) having a notation affixed to the face of the firearms registration card designating that the armed private investigator is allowed to carry a concealed weapon. A private investigator who does not carry a weapon during the course of his or her duties as a private investigator but who wishes to carry a concealed weapon while not engaged in private investigative duties shall be permitted to do so upon completion of the requirements set forth in Article 54B of Chapter 14 of the General Statutes.

History

(1979, c. 818, s. 2; 1983, c. 67, s. 3; 1989, c. 759, s. 11; 2001-487, s. 64(h); 2007-511, s. 8; 2009-328, s. 10; 2014-100, s. 17.5(b).)

Effect of Amendments. - Session Laws 2007-511, s. 8, effective October 1, 2007, rewrote this section.

Session Laws 2009-328, s. 10, effective October 1, 2009, added the last two sentences in subsection (a).

Session Laws 2014-100, s. 17.5(b), effective July 1, 2014, substituted "Secretary of Public Safety" for "Attorney General" throughout the section.

Opinions of Attorney General

The definition of an armed security guard as set forth in subdivision (a)(1) includes a private investigator who carries a weapon. See opinion of Attorney General to James F. Kirk, Administrator, N.C. Private Protective Services Board, 60 N.C.A.G. 12 (1990).

§ 74C-14: Repealed by Session Laws 2009-328, s. 11, effective October 1, 2009.

§ 74C-15. Pocket identification cards issued to licensees and trainees.

1. 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 Director of the Board within 10 working days thereafter.
2. Repealed by Session Laws 1989, c. 759, s. 12.

History

(1979, c. 818, s. 2; 1989, c. 759, s. 12; 2001-487, s. 64(i).)

§ 74C-16. Prohibited acts.

1. ,  (b) Repealed by Session Laws 1989, c. 759, s. 13.
2. It shall be unlawful for anyone not licensed 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 when, in fact, the individual is not licensed or registered in accordance with this Chapter.
   3. Repealed by Session Laws 1989, c. 759, s. 13.
3. through (f) Repealed by Session Laws 1989, c. 759, s. 13.

History

(1979, c. 818, s. 2; 1983, c. 794, s. 5; 1987, c. 657, ss. 7, 8; 1989, c. 759, s. 13.)

§ 74C-17. (Effective until December 1, 2021) Enforcement.

1. 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.
2. 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 Class 1 misdemeanor. The Attorney General, or his representative, shall have concurrent jurisdiction with the district attorneys of this State to prosecute violations of this Chapter.
3. 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) 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.
4. Proceedings for the assessment of civil penalties under this section shall be governed by Chapter 150B of the General Statutes. If the person assessed a civil penalty fails to pay the penalty to the Board, the Board may institute an action in the superior court of the county in which the person resides or has his principal place of business to recover the unpaid amount of the penalty. An action to recover a civil penalty under this section shall not relieve any party from any other penalty prescribed by law.

History

(1979, c. 818, s. 2; 1983, c. 794, s. 6; 1989, c. 759, s. 14; 1993, c. 539, s. 557; 1994, Ex. Sess., c. 24, s. 14(c); 1998-215, s. 98.)

Legal Periodicals. - For note, "The Forty-Two Hundred Dollar Question: 'May State Agencies Have Discretion in Setting Civil Penalties Under the North Carolina Constitution?'," see 68 N.C.L. Rev. 1035 (1990).

§ 74C-18. Reciprocity; temporary permit.

1. To the extent that other states which provide for licensing of any private protective services profession provide for similar action for citizens of this State, the Board, in its discretion, may grant a private protective services license to a nonresident who holds a valid private protective services 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.
2. The Director, 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.

History

(1979, c. 818, s. 2; 1983, c. 67, s. 4; 1989, c. 759, s. 15; 2001-487, s. 64(j).)

§ 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.

History

(1979, c. 818, s. 2.)

§ 74C-20: Repealed by Session Laws 1983, c. 673, s. 9.

§ 74C-21. Law enforcement officer provisions.

1. No law enforcement officer of the United States, this State, any other state, or any political subdivision of a state shall be licensed as a private detective or security guard and patrol licensee under this Chapter.
2. An off-duty law enforcement officer may be employed during his 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.
3. A law enforcement officer may provide security guard and patrol services on an individual employer-employee basis to a person, firm, association, or corporation that is not engaged in a security guard and patrol profession.

History

(1989, c. 759, s. 16.)

§ 74C-22. Continuing education.

The Board may require individuals holding a license, registration, certificate, or permit to complete continuing education courses approved by the Board before renewal. The Board shall establish, by rule, the number of hours of continuing education necessary for renewal and any other requirements for completion of continuing education courses. The Board shall have the authority to approve continuing education courses and shall consider the continuing education course criteria, including the course curriculum, the qualifications of the instructor, the potential benefit to the industry, and any other criteria the Board deems appropriate.

History

(2007-511, s. 9.)

§ 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:

1. Notify the Director of the acquisition or change of ownership or control by registered mail within five business days from the date of the transaction.
2. Describe the transaction that has occurred by providing the following information:
   1. The name and address of the registered agent of the party acquiring control or ownership or otherwise succeeding the licensee.
   2. The name and address of the acquiring party, including each individual owner of any interest in the party or, if the party is a corporation, the name and address of each officer of the corporation and member of the board of directors.
   3. Any change in location of any branch office.
   4. Any change in insurance or bonding limits.
3. Return to the Director all licenses held by the licensee within five business days from the date of the transaction if the acquiring party does not continue to operate the business under its previous name and license.
4. Provide to the Director within 60 calendar days from the date of the transaction the following:
   1. A list of all registrants or licensees affected by the transaction.
   2. 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.

History

(2009-328, s. 12.)

§§ 74C-24 through 74C-29: Reserved for future codification purposes.

§ 74C-30. Private Protective Services Education Fund created; payments to Fund; management; use of funds.

1. There is hereby created and established a special fund to be known as the "Private Protective Services Education Fund" (hereinafter Fund) which shall be set aside and maintained in the Office of the State Treasurer. The Fund shall be used in the manner provided in this Article for the education of licensees and registrants as deemed appropriate by the Board.
2. Repealed by Session Laws 2009-328, s. 13, effective October 1, 2009.
3. In addition to the fees provided for elsewhere in this Chapter, the Board shall charge the following fees which shall be deposited into the Fund:
   1. Repealed by Session Laws 2007-511, s. 10.
   2. The Board shall charge each new applicant for a licensee or trainee permit fifty dollars ($50.00), provided that for purposes of this Article a new applicant is hereby defined as an applicant who did not possess a license or trainee permit on July 1, 1983; and
   3. The Board is authorized to charge each licensee and trainee an additional amount, not to exceed fifty dollars ($50.00), on July 1 of any year in which the balance of the Fund is less than twenty-five thousand dollars ($25,000), provided that any amount so assessed will be only so much as is needed to raise the level of the Fund to twenty-five thousand dollars ($25,000).
4. The State Treasurer shall invest and reinvest the moneys in the Fund in a manner provided by law. The Board, in its discretion, may use the Fund for any of the following purposes:
   1. To advance education and research in the private protective services field for the benefit of those licensed or registered under the provisions of this Chapter and for the improvement of the industry.
   2. To underwrite educational seminars, training centers and other educational projects for the use and benefit generally of licensees, registrants, and trainees.
   3. To sponsor, contract for and to underwrite any and all additional educational training and research projects of a similar nature having to do with the advancement of the private protective services field in North Carolina. The Board shall have the authority to sponsor courses given by private individuals, associations, or corporations. However, the Board shall only grant funds as necessary to offset the actual cost of the educational course. Any individual, association, or corporation receiving grant money from the Board shall make the course available to the industry at large. Any individual, association, or corporation receiving grant money from the Board and advertising the course to the industry is required to include in its advertising the following statement: "The course is being given in whole or in part by a grant from the Private Protective Services Board."
5. By a unanimous vote of the Board, funds in the Fund in excess of fifty thousand dollars ($50,000) may be converted to offset the operating expenses of the Board. However, in converting the funds, the Board shall make findings of fact by a written order or resolution supporting the need to make the conversion.

History

(1983, c. 673, s. 2; 1985, c. 597, ss. 10, 11; 2007-511, s. 10; 2009-328, s. 13.)

Effect of Amendments. - Session Laws 2007-511, s. 10, effective October 1, 2007, deleted subdivision (c)(1) which read "(1) On July 1, 1983, the Board shall charge every licensee and trainee possessing a license or trainee permit on that date a fee of fifty dollars ($50.00);"; substituted "twenty-five thousand dollars ($25,000)" for "one hundred thousand dollars ($100,000)" both places it appears in subdivision (c)(3); inserted "or funds that exceed twenty-five thousand dollars ($25,000)" in the third sentence of subsection (d); added the last four sentences in subdivision (d)(3); added subsection (e); and made minor stylistic changes throughout the section.

Session Laws 2009-328, s. 13, effective October 1, 2009, in the section catchline, substituted "Education" for "Recovery"; in subsection (a), in the first sentence, substituted "Education" for "Recovery", and rewrote the second sentence; deleted former subsection (b), which read: "Nothing contained in this Article shall limit the authority of the Board to take disciplinary action against any licensee or trainee under this Chapter, nor shall the repayment in full or all obligations to the Fund by any licensee or trainee nullify or modify the effect of any other disciplinary proceeding brought under this Chapter."; in subsection (d), rewrote the introductory language; in subdivision (d)(1), inserted "or registered"; and, in subdivision (d)(2), inserted "registrants" near the end.

§§ 74C-31 through 74C-33: Repealed by Session Laws 2009-328, s. 14, effective October 1, 2009.