Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 425 First Substitute (2017GS)

Sponsor

Rep. Perry, L.

Final action

Governor Signed 3/21/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms, including "security service provider," "agreement for services," and "financial responsibility";
• modifies the requirements for being the qualifying agent of a licensed contract security company or licensed armored car company; and
• makes technical changes.

Every vote on this bill

Bill text

SECURITY PERSONNEL AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lee B. Perry
Senate Sponsor: 
Margaret Dayton
LONG TITLE
General Description:
This bill modifies the Security Personnel Licensing Act.
Highlighted Provisions:
This bill:
▸ defines terms, including "security service provider," "agreement for services," and
"financial responsibility";
▸ modifies the requirements for being the qualifying agent of a licensed contract
security company or licensed armored car company; and
▸ makes technical changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
58-63-102
, as last amended by Laws of Utah 2012, Chapter 41
58-63-302
, as last amended by Laws of Utah 2016, Chapter 238
58-63-304
, as last amended by Laws of Utah 2013, Chapter 436
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
58-63-102
 is amended to read:
58-63-102.
Definitions.
In addition to the definitions in Section 
58-1-102
, as used in this chapter:
(1) "Agreement for services" means a written and signed agreement between a security
service provider and a client that:
(a) contains clear language that addresses and assigns financial responsibility;
(b) describes the length, duties, and scope of the security services that will be provided;
and
(c) describes the compensation that will be paid by the client for the security services,
including the compensation for each security officer.
[
(1)
] 
(2)
 "Armed courier service" means a person engaged in business as a contract
security company who transports or offers to transport tangible personal property from one
place or point to another under the control of an armed security officer employed by that
service.
[
(2)
] 
(3)
 "Armed private security officer" means an individual:
(a) employed by a contract security company;
(b) whose primary duty is:
(i) guarding personal or real property; or
(ii) providing protection or security to the life and well being of humans or animals;
and
(c) who wears, carries, possesses, or has immediate access to a firearm in the
performance of the individual's duties.
[
(3)
] 
(4)
 "Armored car company" means a person engaged in business under contract to
others who transports or offers to transport tangible personal property, currency, valuables,
jewelry, SNAP benefits as defined in Section 
35A-1-102
, or any other high value items, that
require secured delivery from one place to another under the control of an armored car security
officer employed by the company using a specially equipped motor vehicle offering a high
degree of security.
[
(4)
] 
(5)
 "Armored car security officer" means an individual:
(a) employed by an armored car company;
(b) whose primary duty is to guard the tangible property, currency, valuables, jewelry,
SNAP benefits as defined in Section 
35A-1-102
, or other high value items that require secured
delivery from one place to another; and
(c) who wears, carries, possesses, or has immediate access to a firearm in the
performance of the individual's duties.
[
(5)
] 
(6)
 "Board" means the Security Services Licensing Board created in Section
58-63-201
.
(7) "Client" means a person, company, or entity that contracts for and receives security
services from a contract security company or an armored car company.
[
(6)
] 
(8)
 "Contract security company" means a [
person engaged in business to provide
security or guard services to another person on a contractual basis by assignment of an armed
or unarmed private security officer
] 
company that is registered with the Division of
Corporations and Commercial Code and is engaged in business to provide security services to
another person, business, or entity on a contractual basis by assignment of an armed or
unarmed private security officer
.
(9) "Corporate officer" means an individual who is on file with the Division of
Corporations and Commercial Code as:
(a) a corporate officer of a contract security company or an armored car company that
is a corporation; or
(b) a sole proprietor of a contract security company or an armored car company that is
not a corporation.
(10) "Financial responsibility," when referring to a contract security company, means
that a contract security company may only provide security services to a client if the contract
security company:
(a) enters into an agreement for services with the client;
(b) maintains a current general liability insurance policy with:
(i) at least an annual $1,000,000 per occurrence limit;
(ii) at least an annual $2,000,000 aggregate limit; and
(iii) the following riders:
(A) general liability;
(B) assault and battery;
(C) personal injury;
(D) false arrest;
(E) libel and slander;
(F) invasion of privacy;
(G) broad form property damage;
(H) damage to property in the care, custody, or control of the security service provider;
and
(I) errors and omissions;
(c) maintains a workers' compensation insurance policy with at least a $1,000,000 per
occurrence limit and that covers each security officer employed by the contract security
company; and
(d) maintains a federal employer identification number and an unemployment
insurance employer account as required under state and federal law.
[
(7)
] 
(11)
 "Identification card" means a personal pocket or wallet size card issued by
the division to each armored car and armed or unarmed private security officer licensed under
this chapter.
(12) "Law enforcement agency" means the same as that term is defined in Section
53-1-102
.
[
(8) "Officer" means a president, vice president, secretary, treasurer, or other officer of
a corporation or limited liability company listed as an officer in the files with the Division of
Corporations and Commercial Code.
]
[
(9) "Owner" means a proprietor or general partner of a proprietorship or partnership, a
lessee or assignee of the owner, the manager of the facility, or the event operator.
]
(13) "Owner" means an individual who is listed with the Division of Corporations and
Commercial Code as a majority stockholder of a company, a general partner of a partnership,
or the proprietor of a sole proprietorship.
[
(10)
] 
(14)
 "Peace officer" means a person who:
(a) is a certified peace officer as defined in Title 53, Chapter 13, Peace Officer
Classifications; and
(b) derives total or special law enforcement powers from, and is an employee of, the
federal government, the state, or a political subdivision, agency, department, branch, or service
of either, of a municipality, or a unit of local government.
[
(11)
] 
(15)
 "Regular basis" means at least 20 hours per month.
[
(12)
] 
(16)
 (a) "Security officer" means an individual who is licensed as an armed or
unarmed private security officer under this chapter and who:
(i) is employed by a contract security company securing, guarding, or otherwise
protecting tangible personal property, real property, or the life and well being of human or
animal life against:
(A) trespass or other unlawful intrusion or entry;
(B) larceny;
(C) vandalism or other abuse;
(D) arson or other criminal activity; or
(E) personal injury caused by another person or as a result of an act or omission by
another person;
(ii) is controlling, regulating, or directing the flow of movements of an individual or
vehicle; or
(iii) providing street patrol service.
[
(b) "Security officer" does not include an individual whose duties are limited to
custodial or other services even though the presence of that individual may act to provide a
service set forth under Subsection (12)(a).
]
[
(c) (i) 
] 
(b)
 "Security officer" does not include an individual whose duties include
taking admission tickets, checking credentials, ushering, or checking bags, purses, backpacks,
or other materials [
going into a facility as described in Subsection (12)(c)(ii)
] 
of individuals
who are entering a sports venue, concert venue, theatrical venue, convention center,
fairgrounds, public assembly facility, or mass gathering location
 if:
(A) the individual carries out these duties without the use of specialized equipment;
(B) the authority of the individual is limited to denying entry or passage of [
a person
]
another individual
 into or within the facility; and
(C) the individual is not authorized to use physical force in the performance of the
individual's duties under this Subsection [
(12)(c)
] 
(16)(b)
.
[
(ii) As used in this Subsection (12)(c), "facility" means a sports, concert, or theatrical
venue, or a convention center, fairgrounds, public assembly facility, or mass gathering
location.
]
(17) "Security service provider" means a contract security company or an armored car
company licensed under this chapter.
[
(13)
] 
(18)
 "Security system" means equipment, a device, or an instrument installed
for:
(a) detecting and signaling entry or intrusion by an individual into or onto, or exit from
the premises protected by the system; or
(b) signaling the commission of criminal activity at the election of an individual having
control of the features of the security system.
[
(14)
] 
(19)
 "Specialized resource, motor vehicle, or equipment" means an item of
tangible personal property specifically designed for use in law enforcement or in providing
security or guard services, or that is specially equipped with a device or feature designed for
use in providing law enforcement, security, or guard services, but does not include:
(a) standardized clothing, whether or not bearing a company name or logo, if the
clothing does not bear the words "security" or "guard"; or
(b) an item of tangible personal property, other than a firearm or nonlethal weapon, that
may be used without modification in providing security or guard services.
[
(15)
] 
(20)
 "Street patrol service" means a contract security company that provides
patrols by means of foot, vehicle, or other method of transportation using public streets,
thoroughfares, or property in the performance of the company's duties and responsibilities.
[
(16)
] 
(21)
 "Unarmed private security officer" means an individual:
(a) employed by a contract security company;
(b) whose primary duty is guarding personal or real property or providing protection or
security to the life and well being of humans or animals;
(c) who does not wear, carry, possess, or have immediate access to a firearm in the
performance of the individual's duties; and
(d) who wears clothing of distinctive design or fashion bearing a symbol, badge,
emblem, insignia, or other device that identifies the individual as a security officer.
[
(17)
] 
(22)
 "Unlawful conduct" [
is as
] 
means the same as that term is
 defined in
Sections 
58-1-501
 and 
58-63-501
.
[
(18)
] 
(23)
 "Unprofessional conduct" [
is as
] 
means the same as that term is
 defined in
Sections 
58-1-501
 and 
58-63-502
 and as may be further defined by rule.
Section 2. Section 
58-63-302
 is amended to read:
58-63-302.
Qualifications for licensure.
(1) Each applicant for licensure as an armored car company or a contract security
company shall:
(a) submit an application in a form prescribed by the division;
(b) pay a fee determined by the department under Section 
63J-1-504
;
(c) have a qualifying agent who:
(i) shall meet with the division and the board and demonstrate that the applicant and
the qualifying agent meet the requirements of this section;
[
(i)
] 
(ii)
 is a resident of the state and [
an officer, director, partner, proprietor, or
manager of the applicant
] 
is a corporate officer or owner of the applicant
;
(iii) exercises material day-to-day authority in the conduct of the applicant's business
by making substantive technical and administrative decisions and whose primary employment
is with the applicant;
(iv) is not concurrently acting as a qualifying agent or employee of another armored car
company or contract security company and is not engaged in any other employment on a
regular basis;
(v) is not involved in any activity that would conflict with the qualifying agent's duties
and responsibilities under this chapter to ensure that the qualifying agent's and the applicant's
performance under this chapter does not jeopardize the health or safety of the general public;
(vi) is not an employee of a government agency;
[
(ii)
] 
(vii)
 passes an examination component established by rule by the division in
collaboration with the board; and
[
(iii)
] 
(viii)
 (A) demonstrates 6,000 hours of compensated experience as a manager,
supervisor, or administrator of an armored car company or a contract security company; or
(B) demonstrates 6,000 hours of supervisory experience acceptable to the division in
collaboration with the board with a federal, United States military, state, county, or municipal
law enforcement agency;
(d) if a corporation, provide:
(i) the names, addresses, dates of birth, and social security numbers of all corporate
officers, directors, and those responsible management personnel employed within the state or
having direct responsibility for managing operations of the applicant within the state; and
(ii) the names, addresses, dates of birth, and social security numbers, of all
shareholders owning 5% or more of the outstanding shares of the corporation, unless waived by
the division if the stock is publicly listed and traded;
(e) if a limited liability company, provide:
(i) the names, addresses, dates of birth, and social security numbers of all company
officers, and those responsible management personnel employed within the state or having
direct responsibility for managing operations of the applicant within the state; and
(ii) the names, addresses, dates of birth, and social security numbers of all individuals
owning 5% or more of the equity of the company;
(f) if a partnership, provide the names, addresses, dates of birth, and social security
numbers of all general partners, and those responsible management personnel employed within
the state or having direct responsibility for managing operations of the applicant within the
state;
(g) if a proprietorship, provide the names, addresses, dates of birth, and social security
numbers of the proprietor, and those responsible management personnel employed within the
state or having direct responsibility for managing operations of the applicant within the state;
(h) have good moral character in that officers, directors, shareholders described in
Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel have not
been convicted of:
(i) a felony;
(ii) a misdemeanor involving moral turpitude; or
(iii) a crime that when considered with the duties and responsibilities of a contract
security company or an armored car company by the division and the board indicates that the
best interests of the public are not served by granting the applicant a license;
(i) document that none of the applicant's officers, directors, shareholders described in
Subsection (1)(d)(ii), partners, proprietors, and responsible management personnel:
(i) have been declared by a court of competent jurisdiction incompetent by reason of
mental defect or disease and not been restored; and
(ii) currently suffer from habitual drunkenness or from drug addiction or dependence;
(j) file and maintain with the division evidence of:
(i) comprehensive general liability insurance in a form and in amounts established by
rule by the division in collaboration with the board;
(ii) workers' compensation insurance that covers employees of the applicant in
accordance with applicable Utah law;
(iii) registration with the Division of Corporations and Commercial Code; and
(iv) registration as required by applicable law with the:
(A) Unemployment Insurance Division in the Department of Workforce Services, for
purposes of Title 35A, Chapter 4, Employment Security Act;
(B) State Tax Commission; and
(C) Internal Revenue Service; and
(k) meet with the division and board if requested by the division or board.
(2) Each applicant for licensure as an armed private security officer shall:
(a) submit an application in a form prescribed by the division;
(b) pay a fee determined by the department under Section 
63J-1-504
;
(c) have good moral character in that the applicant has not been convicted of:
(i) a felony;
(ii) a misdemeanor involving moral turpitude; or
(iii) a crime that when considered with the duties and responsibilities of an armed
private security officer by the division and the board indicates that the best interests of the
public are not served by granting the applicant a license;
(d) not be prohibited from possession of a firearm or ammunition under 18 U.S.C. Sec.
922(g);
(e) not have been declared incompetent by a court of competent jurisdiction by reason
of mental defect or disease and not been restored;
(f) not be currently suffering from habitual drunkenness or from drug addiction or
dependence;
(g) successfully complete basic education and training requirements established by rule
by the division in collaboration with the board[
;
]
, which shall include 24 hours of classroom or
online curriculum;
(h) successfully complete firearms training requirements established by rule by the
division in collaboration with the board;
(i) pass the examination requirement established by rule by the division in
collaboration with the board; and
(j) meet with the division and board if requested by the division or the board.
(3) Each applicant for licensure as an unarmed private security officer shall:
(a) submit an application in a form prescribed by the division;
(b) pay a fee determined by the department under Section 
63J-1-504
;
(c) have good moral character in that the applicant has not been convicted of:
(i) a felony;
(ii) a misdemeanor involving moral turpitude; or
(iii) a crime that when considered with the duties and responsibilities of an unarmed
private security officer by the division and the board indicates that the best interests of the
public are not served by granting the applicant a license;
(d) not have been declared incompetent by a court of competent jurisdiction by reason
of mental defect or disease and not been restored;
(e) not be currently suffering from habitual drunkenness or from drug addiction or
dependence;
(f) successfully complete basic education and training requirements established by rule
by the division in collaboration with the board[
;
]
, which shall include 24 hours of classroom or
online curriculum;
(g) pass the examination requirement established by rule by the division in
collaboration with the board; and
(h) meet with the division and board if requested by the division or board.
(4) Each applicant for licensure as an armored car security officer shall:
(a) submit an application in a form prescribed by the division;
(b) pay a fee determined by the department under Section 
63J-1-504
;
(c) have good moral character in that the applicant has not been convicted of:
(i) a felony;
(ii) a misdemeanor involving moral turpitude; or
(iii) a crime that when considered with the duties and responsibilities of an armored car
security officer by the division and the board indicates that the best interests of the public are
not served by granting the applicant a license;
(d) not be prohibited from possession of a firearm or ammunition under 18 U.S.C. Sec.
922(g);
(e) not have been declared incompetent by a court of competent jurisdiction by reason
of mental defect or disease and not been restored;
(f) not be currently suffering from habitual drunkenness or from drug addiction or
dependence;
(g) successfully complete basic education and training requirements established by rule
by the division in collaboration with the board;
(h) successfully complete firearms training requirements established by rule by the
division in collaboration with the board;
(i) pass the examination requirements established by rule by the division in
collaboration with the board; and
(j) meet with the division and board if requested by the division or the board.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division may make a rule establishing when the division shall request a Federal Bureau of
Investigation records' review for an applicant.
(6) To determine if an applicant meets the qualifications of Subsections (1)(h), (2)(c),
(3)(c), and (4)(c), the division shall provide an appropriate number of copies of fingerprint
cards to the Department of Public Safety with the division's request to:
(a) conduct a search of records of the Department of Public Safety for criminal history
information relating to each applicant for licensure under this chapter and each applicant's
officers, directors, shareholders described in Subsection (1)(d)(ii), partners, proprietors, and
responsible management personnel; and
(b) forward to the Federal Bureau of Investigation a fingerprint card of each applicant
requiring a check of records of the FBI for criminal history information under this section.
(7) The Department of Public Safety shall send the division:
(a) a written record of criminal history, or certification of no criminal history record, as
contained in the records of the Department of Public Safety in a timely manner after receipt of
a fingerprint card from the division and a request for review of Department of Public Safety
records; and
(b) the results of the FBI review concerning an applicant in a timely manner after
receipt of information from the FBI.
(8) (a) The division shall charge each applicant a fee, in accordance with Section
63J-1-504
, equal to the cost of performing the records reviews under this section.
(b) The division shall pay the Department of Public Safety the costs of all records
reviews, and the Department of Public Safety shall pay the FBI the costs of records reviews
under this chapter.
(9) The division shall use or disseminate the information it obtains from the reviews of
criminal history records of the Department of Public Safety and the FBI only to determine if an
applicant for licensure under this chapter is qualified for licensure.
Section 3. Section 
58-63-304
 is amended to read:
58-63-304.
Exemptions from licensure.
(1) In addition to the exemptions from licensure in Section 
58-1-307
, an individual
may engage in acts regulated under this chapter without being licensed under this chapter if the
individual is:
(a) a peace officer employed by[
, or licensed as,
] a contract security company[
,
] as
provided in Subsection (2); or
(b) employed by a contract security company for the sole purpose of operating or
staffing security apparatus, including a magnetometer, magnetometer wand, x-ray viewing
device, or other device approved by rule of the division.
(2) A peace officer may only engage in off-duty employment as a security officer if:
(a) the law enforcement agency employing the peace officer has a written policy
regarding peace officer employees working while off duty as a security officer and the written
policy addresses the issue of financial responsibility;
(b) the agency's chief administrative officer, or that officer's designee, provides written
authorization for an off-duty peace officer to work as a security officer; and
(c) the business or entity employing the off-duty peace officer to work as a security
officer complies with state and federal income reporting and withholding requirements
regarding the off-duty officer's wages.
(3) In addition to the exemptions from licensure in Section 
58-1-307
, an individual
holding a valid license as an armed private security officer under this chapter may also function
as an unarmed private security officer without the additional license.
(4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
division may make rules approving security apparatus under Subsection (1)(b).