1     
SECURITY PERSONNEL AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lee B. Perry

5     
Senate Sponsor: Margaret Dayton

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Security Personnel Licensing Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms, including "security service provider," "agreement for services," and
13     "financial responsibility";
14          ▸     modifies the requirements for being the qualifying agent of a licensed contract
15     security company or licensed armored car company; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          58-63-102, as last amended by Laws of Utah 2012, Chapter 41
24          58-63-302, as last amended by Laws of Utah 2016, Chapter 238
25          58-63-304, as last amended by Laws of Utah 2013, Chapter 436
26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 58-63-102 is amended to read:
29          58-63-102. Definitions.
30          In addition to the definitions in Section 58-1-102, as used in this chapter:
31          (1) "Agreement for services" means a written and signed agreement between a security
32     service provider and a client that:
33          (a) contains clear language that addresses and assigns financial responsibility;
34          (b) describes the length, duties, and scope of the security services that will be provided;
35     and
36          (c) describes the compensation that will be paid by the client for the security services,
37     including the compensation for each security officer.
38          [(1)] (2) "Armed courier service" means a person engaged in business as a contract
39     security company who transports or offers to transport tangible personal property from one
40     place or point to another under the control of an armed security officer employed by that
41     service.
42          [(2)] (3) "Armed private security officer" means an individual:
43          (a) employed by a contract security company;
44          (b) whose primary duty is:
45          (i) guarding personal or real property; or
46          (ii) providing protection or security to the life and well being of humans or animals;
47     and
48          (c) who wears, carries, possesses, or has immediate access to a firearm in the
49     performance of the individual's duties.
50          [(3)] (4) "Armored car company" means a person engaged in business under contract to
51     others who transports or offers to transport tangible personal property, currency, valuables,
52     jewelry, SNAP benefits as defined in Section 35A-1-102, or any other high value items, that
53     require secured delivery from one place to another under the control of an armored car security
54     officer employed by the company using a specially equipped motor vehicle offering a high
55     degree of security.
56          [(4)] (5) "Armored car security officer" means an individual:
57          (a) employed by an armored car company;
58          (b) whose primary duty is to guard the tangible property, currency, valuables, jewelry,
59     SNAP benefits as defined in Section 35A-1-102, or other high value items that require secured
60     delivery from one place to another; and
61          (c) who wears, carries, possesses, or has immediate access to a firearm in the
62     performance of the individual's duties.
63          [(5)] (6) "Board" means the Security Services Licensing Board created in Section
64     58-63-201.
65          (7) "Client" means a person, company, or entity that contracts for and receives security
66     services from a contract security company or an armored car company.
67          [(6)] (8) "Contract security company" means a [person engaged in business to provide
68     security or guard services to another person on a contractual basis by assignment of an armed
69     or unarmed private security officer] company that is registered with the Division of
70     Corporations and Commercial Code and is engaged in business to provide security services to
71     another person, business, or entity on a contractual basis by assignment of an armed or
72     unarmed private security officer.
73          (9) "Corporate officer" means an individual who is on file with the Division of
74     Corporations and Commercial Code as:
75          (a) a corporate officer of a contract security company or an armored car company that
76     is a corporation; or
77          (b) a sole proprietor of a contract security company or an armored car company that is
78     not a corporation.
79          (10) "Financial responsibility," when referring to a contract security company, means
80     that a contract security company may only provide security services to a client if the contract
81     security company:
82          (a) enters into an agreement for services with the client;
83          (b) maintains a current general liability insurance policy with:
84          (i) at least an annual $1,000,000 per occurrence limit;
85          (ii) at least an annual $2,000,000 aggregate limit; and
86          (iii) the following riders:
87          (A) general liability;
88          (B) assault and battery;
89          (C) personal injury;
90          (D) false arrest;
91          (E) libel and slander;
92          (F) invasion of privacy;
93          (G) broad form property damage;
94          (H) damage to property in the care, custody, or control of the security service provider;
95     and
96          (I) errors and omissions;
97          (c) maintains a workers' compensation insurance policy with at least a $1,000,000 per
98     occurrence limit and that covers each security officer employed by the contract security
99     company; and
100          (d) maintains a federal employer identification number and an unemployment
101     insurance employer account as required under state and federal law.
102          [(7)] (11) "Identification card" means a personal pocket or wallet size card issued by
103     the division to each armored car and armed or unarmed private security officer licensed under
104     this chapter.
105          (12) "Law enforcement agency" means the same as that term is defined in Section
106     53-1-102.
107          [(8) "Officer" means a president, vice president, secretary, treasurer, or other officer of
108     a corporation or limited liability company listed as an officer in the files with the Division of
109     Corporations and Commercial Code.]
110          [(9) "Owner" means a proprietor or general partner of a proprietorship or partnership, a
111     lessee or assignee of the owner, the manager of the facility, or the event operator.]
112          (13) "Owner" means an individual who is listed with the Division of Corporations and
113     Commercial Code as a majority stockholder of a company, a general partner of a partnership,
114     or the proprietor of a sole proprietorship.
115          [(10)] (14) "Peace officer" means a person who:
116          (a) is a certified peace officer as defined in Title 53, Chapter 13, Peace Officer
117     Classifications; and
118          (b) derives total or special law enforcement powers from, and is an employee of, the
119     federal government, the state, or a political subdivision, agency, department, branch, or service
120     of either, of a municipality, or a unit of local government.
121          [(11)] (15) "Regular basis" means at least 20 hours per month.
122          [(12)] (16) (a) "Security officer" means an individual who is licensed as an armed or
123     unarmed private security officer under this chapter and who:
124          (i) is employed by a contract security company securing, guarding, or otherwise
125     protecting tangible personal property, real property, or the life and well being of human or
126     animal life against:
127          (A) trespass or other unlawful intrusion or entry;
128          (B) larceny;
129          (C) vandalism or other abuse;
130          (D) arson or other criminal activity; or
131          (E) personal injury caused by another person or as a result of an act or omission by
132     another person;
133          (ii) is controlling, regulating, or directing the flow of movements of an individual or
134     vehicle; or
135          (iii) providing street patrol service.
136          [(b) "Security officer" does not include an individual whose duties are limited to
137     custodial or other services even though the presence of that individual may act to provide a
138     service set forth under Subsection (12)(a).]
139          [(c) (i) ] (b) "Security officer" does not include an individual whose duties include
140     taking admission tickets, checking credentials, ushering, or checking bags, purses, backpacks,
141     or other materials [going into a facility as described in Subsection (12)(c)(ii)] of individuals
142     who are entering a sports venue, concert venue, theatrical venue, convention center,
143     fairgrounds, public assembly facility, or mass gathering location if:
144          (A) the individual carries out these duties without the use of specialized equipment;
145          (B) the authority of the individual is limited to denying entry or passage of [a person]
146     another individual into or within the facility; and
147          (C) the individual is not authorized to use physical force in the performance of the
148     individual's duties under this Subsection [(12)(c)] (16)(b).
149          [(ii) As used in this Subsection (12)(c), "facility" means a sports, concert, or theatrical
150     venue, or a convention center, fairgrounds, public assembly facility, or mass gathering
151     location.]
152          (17) "Security service provider" means a contract security company or an armored car
153     company licensed under this chapter.
154          [(13)] (18) "Security system" means equipment, a device, or an instrument installed
155     for:
156          (a) detecting and signaling entry or intrusion by an individual into or onto, or exit from
157     the premises protected by the system; or
158          (b) signaling the commission of criminal activity at the election of an individual having
159     control of the features of the security system.
160          [(14)] (19) "Specialized resource, motor vehicle, or equipment" means an item of
161     tangible personal property specifically designed for use in law enforcement or in providing
162     security or guard services, or that is specially equipped with a device or feature designed for
163     use in providing law enforcement, security, or guard services, but does not include:
164          (a) standardized clothing, whether or not bearing a company name or logo, if the
165     clothing does not bear the words "security" or "guard"; or
166          (b) an item of tangible personal property, other than a firearm or nonlethal weapon, that
167     may be used without modification in providing security or guard services.
168          [(15)] (20) "Street patrol service" means a contract security company that provides
169     patrols by means of foot, vehicle, or other method of transportation using public streets,
170     thoroughfares, or property in the performance of the company's duties and responsibilities.
171          [(16)] (21) "Unarmed private security officer" means an individual:
172          (a) employed by a contract security company;
173          (b) whose primary duty is guarding personal or real property or providing protection or
174     security to the life and well being of humans or animals;
175          (c) who does not wear, carry, possess, or have immediate access to a firearm in the
176     performance of the individual's duties; and
177          (d) who wears clothing of distinctive design or fashion bearing a symbol, badge,
178     emblem, insignia, or other device that identifies the individual as a security officer.
179          [(17)] (22) "Unlawful conduct" [is as] means the same as that term is defined in
180     Sections 58-1-501 and 58-63-501.
181          [(18)] (23) "Unprofessional conduct" [is as] means the same as that term is defined in
182     Sections 58-1-501 and 58-63-502 and as may be further defined by rule.
183          Section 2. Section 58-63-302 is amended to read:
184          58-63-302. Qualifications for licensure.
185          (1) Each applicant for licensure as an armored car company or a contract security
186     company shall:
187          (a) submit an application in a form prescribed by the division;
188          (b) pay a fee determined by the department under Section 63J-1-504;
189          (c) have a qualifying agent who:
190          (i) shall meet with the division and the board and demonstrate that the applicant and
191     the qualifying agent meet the requirements of this section;
192          [(i)] (ii) is a resident of the state and [an officer, director, partner, proprietor, or
193     manager of the applicant] is a corporate officer or owner of the applicant;
194          (iii) exercises material day-to-day authority in the conduct of the applicant's business
195     by making substantive technical and administrative decisions and whose primary employment
196     is with the applicant;
197          (iv) is not concurrently acting as a qualifying agent or employee of another armored car
198     company or contract security company and is not engaged in any other employment on a
199     regular basis;
200          (v) is not involved in any activity that would conflict with the qualifying agent's duties
201     and responsibilities under this chapter to ensure that the qualifying agent's and the applicant's
202     performance under this chapter does not jeopardize the health or safety of the general public;
203          (vi) is not an employee of a government agency;
204          [(ii)] (vii) passes an examination component established by rule by the division in
205     collaboration with the board; and
206          [(iii)] (viii) (A) demonstrates 6,000 hours of compensated experience as a manager,
207     supervisor, or administrator of an armored car company or a contract security company; or
208          (B) demonstrates 6,000 hours of supervisory experience acceptable to the division in
209     collaboration with the board with a federal, United States military, state, county, or municipal
210     law enforcement agency;
211          (d) if a corporation, provide:
212          (i) the names, addresses, dates of birth, and social security numbers of all corporate
213     officers, directors, and those responsible management personnel employed within the state or
214     having direct responsibility for managing operations of the applicant within the state; and
215          (ii) the names, addresses, dates of birth, and social security numbers, of all
216     shareholders owning 5% or more of the outstanding shares of the corporation, unless waived by
217     the division if the stock is publicly listed and traded;
218          (e) if a limited liability company, provide:
219          (i) the names, addresses, dates of birth, and social security numbers of all company
220     officers, and those responsible management personnel employed within the state or having
221     direct responsibility for managing operations of the applicant within the state; and
222          (ii) the names, addresses, dates of birth, and social security numbers of all individuals
223     owning 5% or more of the equity of the company;
224          (f) if a partnership, provide the names, addresses, dates of birth, and social security
225     numbers of all general partners, and those responsible management personnel employed within
226     the state or having direct responsibility for managing operations of the applicant within the
227     state;
228          (g) if a proprietorship, provide the names, addresses, dates of birth, and social security
229     numbers of the proprietor, and those responsible management personnel employed within the
230     state or having direct responsibility for managing operations of the applicant within the state;
231          (h) have good moral character in that officers, directors, shareholders described in
232     Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel have not
233     been convicted of:
234          (i) a felony;
235          (ii) a misdemeanor involving moral turpitude; or
236          (iii) a crime that when considered with the duties and responsibilities of a contract
237     security company or an armored car company by the division and the board indicates that the
238     best interests of the public are not served by granting the applicant a license;
239          (i) document that none of the applicant's officers, directors, shareholders described in
240     Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel:
241          (i) have been declared by a court of competent jurisdiction incompetent by reason of
242     mental defect or disease and not been restored; and
243          (ii) currently suffer from habitual drunkenness or from drug addiction or dependence;
244          (j) file and maintain with the division evidence of:
245          (i) comprehensive general liability insurance in a form and in amounts established by
246     rule by the division in collaboration with the board;
247          (ii) workers' compensation insurance that covers employees of the applicant in
248     accordance with applicable Utah law;
249          (iii) registration with the Division of Corporations and Commercial Code; and
250          (iv) registration as required by applicable law with the:
251          (A) Unemployment Insurance Division in the Department of Workforce Services, for
252     purposes of Title 35A, Chapter 4, Employment Security Act;
253          (B) State Tax Commission; and
254          (C) Internal Revenue Service; and
255          (k) meet with the division and board if requested by the division or board.
256          (2) Each applicant for licensure as an armed private security officer shall:
257          (a) submit an application in a form prescribed by the division;
258          (b) pay a fee determined by the department under Section 63J-1-504;
259          (c) have good moral character in that the applicant has not been convicted of:
260          (i) a felony;
261          (ii) a misdemeanor involving moral turpitude; or
262          (iii) a crime that when considered with the duties and responsibilities of an armed
263     private security officer by the division and the board indicates that the best interests of the
264     public are not served by granting the applicant a license;
265          (d) not be prohibited from possession of a firearm or ammunition under 18 U.S.C. Sec.
266     922(g);
267          (e) not have been declared incompetent by a court of competent jurisdiction by reason
268     of mental defect or disease and not been restored;
269          (f) not be currently suffering from habitual drunkenness or from drug addiction or
270     dependence;
271          (g) successfully complete basic education and training requirements established by rule
272     by the division in collaboration with the board[;], which shall include 24 hours of classroom or
273     online curriculum;
274          (h) successfully complete firearms training requirements established by rule by the
275     division in collaboration with the board;
276          (i) pass the examination requirement established by rule by the division in
277     collaboration with the board; and
278          (j) meet with the division and board if requested by the division or the board.
279          (3) Each applicant for licensure as an unarmed private security officer shall:
280          (a) submit an application in a form prescribed by the division;
281          (b) pay a fee determined by the department under Section 63J-1-504;
282          (c) have good moral character in that the applicant has not been convicted of:
283          (i) a felony;
284          (ii) a misdemeanor involving moral turpitude; or
285          (iii) a crime that when considered with the duties and responsibilities of an unarmed
286     private security officer by the division and the board indicates that the best interests of the
287     public are not served by granting the applicant a license;
288          (d) not have been declared incompetent by a court of competent jurisdiction by reason
289     of mental defect or disease and not been restored;
290          (e) not be currently suffering from habitual drunkenness or from drug addiction or
291     dependence;
292          (f) successfully complete basic education and training requirements established by rule
293     by the division in collaboration with the board[;], which shall include 24 hours of classroom or
294     online curriculum;
295          (g) pass the examination requirement established by rule by the division in
296     collaboration with the board; and
297          (h) meet with the division and board if requested by the division or board.
298          (4) Each applicant for licensure as an armored car security officer shall:
299          (a) submit an application in a form prescribed by the division;
300          (b) pay a fee determined by the department under Section 63J-1-504;
301          (c) have good moral character in that the applicant has not been convicted of:
302          (i) a felony;
303          (ii) a misdemeanor involving moral turpitude; or
304          (iii) a crime that when considered with the duties and responsibilities of an armored car
305     security officer by the division and the board indicates that the best interests of the public are
306     not served by granting the applicant a license;
307          (d) not be prohibited from possession of a firearm or ammunition under 18 U.S.C. Sec.
308     922(g);
309          (e) not have been declared incompetent by a court of competent jurisdiction by reason
310     of mental defect or disease and not been restored;
311          (f) not be currently suffering from habitual drunkenness or from drug addiction or
312     dependence;
313          (g) successfully complete basic education and training requirements established by rule
314     by the division in collaboration with the board;
315          (h) successfully complete firearms training requirements established by rule by the
316     division in collaboration with the board;
317          (i) pass the examination requirements established by rule by the division in
318     collaboration with the board; and
319          (j) meet with the division and board if requested by the division or the board.
320          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
321     division may make a rule establishing when the division shall request a Federal Bureau of
322     Investigation records' review for an applicant.
323          (6) To determine if an applicant meets the qualifications of Subsections (1)(h), (2)(c),
324     (3)(c), and (4)(c), the division shall provide an appropriate number of copies of fingerprint
325     cards to the Department of Public Safety with the division's request to:
326          (a) conduct a search of records of the Department of Public Safety for criminal history
327     information relating to each applicant for licensure under this chapter and each applicant's
328     officers, directors, shareholders described in Subsection (1)(d)(ii), partners, proprietors, and
329     responsible management personnel; and
330          (b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
331     requiring a check of records of the FBI for criminal history information under this section.
332          (7) The Department of Public Safety shall send the division:
333          (a) a written record of criminal history, or certification of no criminal history record, as
334     contained in the records of the Department of Public Safety in a timely manner after receipt of
335     a fingerprint card from the division and a request for review of Department of Public Safety
336     records; and
337          (b) the results of the FBI review concerning an applicant in a timely manner after
338     receipt of information from the FBI.
339          (8) (a) The division shall charge each applicant a fee, in accordance with Section
340     63J-1-504, equal to the cost of performing the records reviews under this section.
341          (b) The division shall pay the Department of Public Safety the costs of all records
342     reviews, and the Department of Public Safety shall pay the FBI the costs of records reviews
343     under this chapter.
344          (9) The division shall use or disseminate the information it obtains from the reviews of
345     criminal history records of the Department of Public Safety and the FBI only to determine if an
346     applicant for licensure under this chapter is qualified for licensure.
347          Section 3. Section 58-63-304 is amended to read:
348          58-63-304. Exemptions from licensure.
349          (1) In addition to the exemptions from licensure in Section 58-1-307, an individual
350     may engage in acts regulated under this chapter without being licensed under this chapter if the
351     individual is:
352          (a) a peace officer employed by[, or licensed as,] a contract security company[,] as
353     provided in Subsection (2); or
354          (b) employed by a contract security company for the sole purpose of operating or
355     staffing security apparatus, including a magnetometer, magnetometer wand, x-ray viewing
356     device, or other device approved by rule of the division.
357          (2) A peace officer may only engage in off-duty employment as a security officer if:
358          (a) the law enforcement agency employing the peace officer has a written policy
359     regarding peace officer employees working while off duty as a security officer and the written
360     policy addresses the issue of financial responsibility;
361          (b) the agency's chief administrative officer, or that officer's designee, provides written
362     authorization for an off-duty peace officer to work as a security officer; and
363          (c) the business or entity employing the off-duty peace officer to work as a security
364     officer complies with state and federal income reporting and withholding requirements
365     regarding the off-duty officer's wages.
366          (3) In addition to the exemptions from licensure in Section 58-1-307, an individual
367     holding a valid license as an armed private security officer under this chapter may also function
368     as an unarmed private security officer without the additional license.
369          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
370     division may make rules approving security apparatus under Subsection (1)(b).