Representative Lee B. Perry proposes the following substitute bill:


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