HB-5893, As Passed House, June 29, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5893

                                                                             A bill to amend 1968 PA 330, entitled                                             

"Private security business and security alarm act,"                         

by amending sections 9, 11, and 25 (MCL 338.1059, 338.1061, and             

338.1075), sections 9 and 25 as amended by 2002 PA 473 and                  

section 11 as amended by 2000 PA 411.                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 9.  (1) The department, when satisfied of the good                     

2   character, competence, and integrity of the applicant, or if the            

3   applicant is a firm, company, partnership, limited liability                

4   company, or corporation, of its individual members or officers,             

5   shall issue to the applicant a license.  Beginning October 1,               

6   2004, the issuance of the license is conditioned upon the                   

7   applicant's paying to the department for each license $200.00 if            

8   a sole proprietorship, or $300.00 if a private security guard               

9   firm, company, partnership, limited liability company, or                   

1   corporation, or $500.00 if a security alarm system contractor,              

2   and upon the applicant's executing, delivering, and filing with             

3   the department a bond in the sum of $25,000.00.  Beginning                  

4   October 1, 2002 and until October 1, 2004, the issuance of the              

5   license is conditioned upon the applicant's paying to the                   

6   department for each license $1,000.00 if a sole proprietorship,             

7   or $1,500.00 if a private security firm, company, partnership,              

8   limited liability company, or corporation, or $1,500.00 if a                

9   security alarm system contractor, and upon the applicant's                  

10  executing, delivering, and filing with the department a bond of             

11  $25,000.00.  The bond shall be conditioned upon the faithful and            

12  honest conduct of the business by the applicant and shall be                

13  approved by the department.  In lieu of a bond, the applicant may           

14  furnish a policy of insurance issued by an insurer authorized to            

15  do business in this state naming the licensee and the state as              

16  coinsureds in the amount of $25,000.00 for property damages,                

17  $100,000.00 for injury to or death of 1 person, and $200,000.00             

18  for injuries to or deaths of more than 1 person arising out of              

19  the operation of the licensed activity.  The license is valid for           

20  2 years but is revocable at all times by the department for cause           

21  shown.  The bonds shall be taken in the name of the people of the           

22  state and a person injured by the willful, malicious, and                   

23  wrongful act of the licensee or any of his or her agents or                 

24  employees may bring an action on the bond or insurance policy in            

25  his or her own name to recover damages suffered by reason of the            

26  wrongful act.  The license certificate shall be in a form to be             

27  prescribed by the department.  The fee changes effective                    

1   October 1, 2002 until October 1, 2004 in this section and section           

2   25 are considered necessary to cover the actual costs of the                

3   licensure program under this act and shall only be used for                 

4   administration of that licensure program.  The department and the           

5   department of state police shall each issue a report to the                 

6   appropriations subcommittees having jurisdiction over their                 

7   department not later than April 1, 2003, on whether the fee                 

8   changes in this section and section 25 are adequate to support              

9   the licensure program under this act.                                       

10      (2) If a licensee desires to open a branch office, he or she                

11  may receive a license for that branch following approval as                 

12  required in section 7 and payment to the department of the                  

13  following:                                                                  

14      (a) Beginning October 1, 2004, an additional fee of $50.00                  

15  for each private security guard branch office license and $100.00           

16  for each security alarm system contractor branch office license.            

17      (b) Beginning October 1, 2002 and until October 1, 2004, an                 

18  additional fee of $250.00 for each private security branch office           

19  license and $500.00 for each security alarm system contractor               

20  branch office license.                                                      

21      (3) The additional license issued under subsection (2) shall                

22  be posted in a conspicuous place in the branch office and shall             

23  expire on the same date as the initial license.                             

24      (4)  If Subject to subsection (5), if the license is denied,               

25  revoked, or suspended for cause, no refund shall be made of the             

26  license fees or a part thereof.                                             

27  (5) Beginning the effective date of the amendatory act that                 

1   added this subsection, the department shall issue an initial or             

2   renewal license not later than 180 days after the applicant files           

3   a completed application.  Receipt of the application is                     

4   considered the date the application is received by any agency or            

5   department of the state of Michigan.  If the application is                 

6   considered incomplete by the department, the department shall               

7   notify the applicant in writing, or make the information                    

8   electronically available, within 30 days after receipt of the               

9   incomplete application, describing the deficiency and requesting            

10  the additional information.  The 180-day period is tolled upon              

11  notification by the department of a deficiency until the date the           

12  requested information is received by the department.  The                   

13  determination of the completeness of an application does not                

14  operate as an approval of the application for the license and               

15  does not confer eligibility of an applicant determined otherwise            

16  ineligible for issuance of a license.                                       

17      (6) If the department fails to issue or deny a license within               

18  the time required by this section, the department shall return              

19  the license fee and shall reduce the license fee for the                    

20  applicant's next renewal application, if any, by 15%.  The                  

21  failure to issue a license within the time required under this              

22  section does not allow the department to otherwise delay the                

23  processing of the application, and that application, upon                   

24  completion, shall be placed in sequence with other completed                

25  applications received at that same time.  The department shall              

26  not discriminate against an applicant in the processing of the              

27  application based upon the fact that the license fee was refunded           

1   or discounted under this subsection.                                        

2       (7) Beginning October 1, 2005, the director of the department               

3   shall submit a report by December 1 of each year to the standing            

4   committees and appropriations subcommittees of the senate and               

5   house of representatives concerned with occupational issues.  The           

6   director shall include all of the following information in the              

7   report concerning the preceding fiscal year:                                

8       (a) The number of initial and renewal applications the                      

9   department received and completed within the 180-day time period            

10  described in subsection (5).                                                

11      (b) The number of applications denied.                                      

12      (c) The number of applicants not issued a license within the                

13  180-day time period and the amount of money returned to licensees           

14  and registrants under subsection (6).

15  (8)  (5)  The fees collected by the department under this                   

16  section shall be deposited into the security business fund                  

17  created in subsection  (6) (9).                                            

18  (9)  (6)  The security business fund is created within the                  

19  state treasury.  The department shall deposit all license fees              

20  collected under this act into the fund.  The state treasurer may            

21  receive money or other assets from any source for deposit into              

22  the fund.  The state treasurer shall direct the investment of the           

23  fund.  The state treasurer shall credit to the fund interest and            

24  earnings from fund investments.  Money in the fund at the close             

25  of the fiscal year shall remain in the fund and be available for            

26  appropriation and expenditure by the department in subsequent               

27  fiscal years.  The money in the fund shall not lapse to the                 

1   general fund.  The department shall expend money from the fund,             

2   upon appropriation, only for enforcement and administration of              

3   this act.                                                                   

4   (10) As used in this section, "completed application" means                 

5   an application complete on its face and submitted with any                  

6   applicable licensing fees as well as any other information,                 

7   records, approval, security, or similar item required by law or             

8   rule from a local unit of government, a federal agency, or a                

9   private entity but not from another department or agency of the             

10  state of Michigan.

11      Sec. 11.  The department shall not refund a license or                      

12  application fee unless a showing is made of mistake,                        

13  inadvertence,  or  error in the collection of the fee, or                   

14  noncompliance with the time periods described in section 9(5).              

15      Sec. 25.  (1)  A Subject to section 9(5), a license granted                

16  under this act may be renewed by the department upon application            

17  by the licensee, filing a renewal surety bond in the amount                 

18  specified in section 9, and the payment of the following:                   

19      (a) Beginning October 1, 2004, a renewal fee of $100.00 if a                

20  sole proprietorship, $150.00 if a private security guard firm,              

21  company, partnership, limited liability company, or corporation,            

22  or $250.00 if a security alarm system contractor.                           

23      (b) Beginning October 1, 2002 and until October 1, 2004, a                  

24  renewal fee of $1,000.00 if a sole proprietorship, $1,500.00 if a           

25  private security guard firm, company, partnership, limited                  

26  liability company, or corporation, or $1,500.00 if a security               

27  alarm system contractor.                                                    

1       (2) A renewal license shall be dated as of the expiration                   

2   date of the previously existing license.  For the renewal of a              

3   license, the licensee shall submit an application in such form              

4   provided by the department.  The department may defer the renewal           

5   of license if there is an uninvestigated outstanding criminal               

6   complaint pending against the licensee or a criminal case pending           

7   in any court against the licensee.                                          

8       (3) A person who fails to renew a license on or before the                  

9   expiration date shall not engage in activities regulated by this            

10  act.  A person who fails to renew a license on or before the                

11  expiration date may, within 30 days after the expiration date,              

12  renew the license by payment of the required license fee and a              

13  late renewal fee of $25.00.  An applicant who fails to renew                

14  within the 30-day period must reapply for a license under                   

15  section 7.                                                                  

16      (4) The fees collected by the department under this section                 

17  shall be deposited into the security business fund created in               

18  section  9(6) 9(9).