Michigan - CHAPTER 338 PROFESSIONS AND OCCUPATIONS
PRIVATE SECURITY GUARDS AND ALARM SYSTEMS

MCLS § 338.1053 (2006)
§ 338.1053. License required; permission for device delivering recorded message to public service, utility, or police agency required; violation; penalty.

Sec. 3. (1) Unless licensed under this act, a sole proprietorship , firm, company, partnership, limited liability company, or corporation shall not engage in the business of security alarm system contractor, private security guard, private security police, patrol service, or an agency furnishing those services. A person, firm, company, partnership, limited liability company, or corporation shall not advertise its business to be that of security alarm system contractor, security alarm system agent, private security guard agency, or an agency furnishing those services without having first obtained from the department a license to do so for each office and branch office to be owned, conducted, managed, or maintained for the conduct of that business.
(2) A person shall not sell, install, operate, adjust, arrange for, or contract to provide a device which upon activation, either mechanically, electronically, or by any other means, initiates the automatic calling or dialing of, or makes a connection directly to, a telephone assigned to a public service, utility, or police agency, for the purpose of delivering a recorded message, without first receiving written permission from that service, utility, or agency.
(3) A person who violates this section is guilty of a felony punishable by imprisonment for not more than 4 years, by a fine of not more than $1,000.00, or both.

MCLS § 338.1055 (2006)
§ 338.1055. Issuance of license; effect; duration.

Sec. 5. The department, upon proper application and upon being satisfied that the applicant is qualified, shall issue the applicant a license to conduct business as an alarm system contractor or a private security guard or agency for a period of 2 years from date of issuance. Upon the issuance of a license to conduct business as an alarm system contractor or a private security guard or agency, the applicant shall not be required to obtain any other license from a municipality or political subdivision of this state.

MCLS § 338.1056 (2006)
§ 338.1056. License; qualifications.

Sec. 6. (1) The department shall issue a license to conduct business as a security alarm system contractor or a private security guard, private security police, or to a private security guard business, if it is satisfied that the applicant is a sole proprietorship , or if a firm, partnership, company, limited liability company, or corporation the sole or principal license holder is an individual , who meets all of the following qualifications:
(a) Is not less than 25 years of age.
(b) Has a high school education or its equivalent.
(c) In the case of a licensee under this section after March 28, 2001 , has not been under any sentence, including parole, probation, or actual incarceration, for the commission of a felony.
(d) In the case of a person licensed under this section on or before March 28, 2001 , has not been under any sentence, including parole, probation, or actual incarceration, for the commission of a felony within 5 years before the date of application.
(e) Has not been convicted of an offense listed in section 10(1)(c) within 5 years before the date of application.
(f) Has not been dishonorably discharged from a branch of the United States military service.
(g) In the case of an applicant for a private security guard or agency license, has been lawfully engaged in 1 or more of the following:
(i) In the private security guard or agency business on his or her own account in another state for a period of not less than 3 years.
(ii) In the private security guard or agency business for a period of not less than 4 years as an employee of the holder of a certificate of authority to conduct a private security guard or agency business and has had experience reasonably equivalent to not less than 4 years of full-time guard work in a supervisory capacity with rank above that of patrolman.
(iii) In law enforcement employment as a certified police officer on a full-time basis for not less than 4 years for a city, county, or state government, or for the United States government.
(iv) In the private security guard or agency business as an employee or on his or her own account or as a security administrator in private business for not less than 2 years on a full-time basis, and is a graduate with a baccalaureate degree or its equivalent in the field of police administration or industrial security from an accredited college or university.
(h) In the case of an applicant for a security alarm system contractor license, has been lawfully engaged in either or both of the following:
(i) The security alarm system contractor business on his or her own account for a period of not less than 3 years.
(ii) The security alarm system contractor business for a period of not less than 4 years as an employee of the holder of a certificate of authority to conduct a security alarm system contractor business, and has had experience reasonably equivalent to at least 4 years of full-time work in a supervisory capacity or passes a written exam administered by the department designed to measure his or her knowledge and training in security alarm systems.
(i) Has posted with the department a bond provided for in this act.
(j) Has not been adjudged insane unless restored to sanity by court order.
(k) Does not have any outstanding warrants for his or her arrest.
(2) In the case of a sole proprietorship , firm, partnership, company, or corporation now doing or seeking to do business in this state, the resident manager shall comply with the applicable qualifications of this section.

MCLS § 338.1057 (2006)
§ 338.1057. License; application; references; investigation; approval; nonrenewable temporary license; fees.

Sec. 7. (1) The department shall prepare a uniform application for the particular license and shall require the person filing the application to obtain reference statements from at least 5 reputable citizens who have known the applicant for a period of at least 5 years, who can attest that the applicant is honest, of good character, and competent, and who are not related or connected to the applicant by blood or marriage.
(2) Upon receipt of the application and application fee , the department shall investigate the applicant's qualifications for licensure .
(3) The application and investigation are not considered complete until the applicant has received the approval of the prosecuting attorney and the sheriff of the county in this state within which the principal office of the applicant is to be located. If the office is to be located in a city, township, or village, the approval of the chief of police may be obtained instead of the sheriff. Branch offices and branch managers shall be similarly approved.
(4) If a person has not previously been denied a license or has not had a previous license suspended or revoked, the department may issue a nonrenewable temporary license to an applicant. If approved by the department, the temporary license is valid until 1 or more of the following occur but not to exceed 120 days:
(a) The completion of the investigations and approvals required under subsections (1), (2), and (3).
(b) The completion of the investigation of the subject matter addressed in section 6.
(c) The completion of the investigation of any employees of the licensee as further described in section 17.
(d) Confirmation of compliance with the bonding or insurance requirements imposed in section 9.
(e) The applicant fails to meet 1 or more of the requirements for licensure imposed under this act.
(5) The fees for a temporary license shall be the applicable fees as described in section 9.


MCLS § 338.1058 (2006)
§ 338.1058. License; application; signature and verification; contents; photographs.

Sec. 8.
(1) Each applicant shall sign and verify the application. Each application shall contain at least all of the following:
(a) The name and principal address where the individual or business entity is located in this state.
(b) The address and location of any branch office of the business.
(c) The certificate of incorporation of the business, if applicable.
(2) Each applicant shall submit 2 passport quality photographs of the applicant with the application. If the applicant is a business entity, the resident manager of the business shall submit 2 passport quality photographs of himself or herself.


MCLS § 338.1059 (2006)
§ 338.1059. License; issuance; fees; bond; insurance; term; form; additional license for branch office; refunds; receipt of completed application; issuance of license within certain time period; report; security business fund; "completed application" defined.

Sec. 9. (1) The department, when satisfied of the good character, competence, and integrity of the applicant, or if the applicant is a firm, company, partnership, limited liability company, or corporation, of its individual members or officers, shall issue to the applicant a license. Beginning October 1, 2004, the issuance of the license is conditioned upon the applicant's paying to the department for each license $200.00 if a sole proprietorship, or $300.00 if a private security guard firm, company, partnership, limited liability company, or corporation, or $500.00 if a security alarm system contractor, and upon the applicant's executing, delivering, and filing with the department a bond in the sum of $25,000.00. Beginning October 1, 2002 and until October 1, 2004, the issuance of the license is conditioned upon the applicant's paying to the department for each license $1,000.00 if a sole proprietorship, or $1,500.00 if a private security firm, company, partnership, limited liability company, or corporation, or $1,500.00 if a security alarm system contractor, and upon the applicant's executing, delivering, and filing with the department a bond of $25,000.00. The bond shall be conditioned upon the faithful and honest conduct of the business by the applicant and shall be approved by the department. In lieu of a bond, the applicant may furnish a policy of insurance issued by an insurer authorized to do business in this state naming the licensee and the state as coinsureds in the amount of $25,000.00 for property damages, $100,000.00 for injury to or death of 1 person, and $200,000.00 for injuries to or deaths of more than 1 person arising out of the operation of the licensed activity. The license is valid for 2 years but is revocable at all times by the department for cause shown. The bonds shall be taken in the name of the people of the state and a person injured by the willful, malicious, and wrongful act of the licensee or any of his or her agents or employees may bring an action on the bond or insurance policy in his or her own name to recover damages suffered by reason of the wrongful act. The license certificate shall be in a form to be prescribed by the department. The fee changes effective October 1, 2002 until October 1, 2004 in this section and section 25 are considered necessary to cover the actual costs of the licensure program under this act and shall only be used for administration of that licensure program. The department and the department of state police shall each issue a report to the appropriations subcommittees having jurisdiction over their department not later than April 1, 2003, on whether the fee changes in this section and section 25 are adequate to support the licensure program under this act.
(2) If a licensee desires to open a branch office, he or she may receive a license for that branch following approval as required in section 7 and payment to the department of the following:
(a) Beginning October 1, 2004, an additional fee of $50.00 for each private security guard branch office license and $100.00 for each security alarm system contractor branch office license.
(b) Beginning October 1, 2002 and until October 1, 2004, an additional fee of $250.00 for each private security branch office license and $500.00 for each security alarm system contractor branch office license.
(3) The additional license issued under subsection (2) shall be posted in a conspicuous place in the branch office and shall expire on the same date as the initial license.
(4) Subject to subsection (5), if the license is denied, revoked, or suspended for cause, no refund shall be made of the license fees or a part thereof.
(5) Beginning the effective date of the amendatory act that added this subsection, the department shall issue an initial or renewal license not later than 180 days after the applicant files a completed application. Receipt of the application is considered the date the application is received by any agency or department of the state of Michigan. If the application is considered incomplete by the department, the department shall notify the applicant in writing, or make the information electronically available, within 30 days after receipt of the incomplete application, describing the deficiency and requesting the additional information. The 180-day period is tolled upon notification by the department of a deficiency until the date the requested information is received by the department. The determination of the completeness of an application does not operate as an approval of the application for the license and does not confer eligibility of an applicant determined otherwise ineligible for issuance of a license.
(6) If the department fails to issue or deny a license within the time required by this section, the department shall return the license fee and shall reduce the license fee for the applicant's next renewal application, if any, by 15%. The failure to issue a license within the time required under this section does not allow the department to otherwise delay the processing of the application, and that application, upon completion, shall be placed in sequence with other completed applications received at that same time. The department shall not discriminate against an applicant in the processing of the application based upon the fact that the license fee was refunded or discounted under this subsection.
(7) Beginning October 1, 2005, the director of the department shall submit a report by December 1 of each year to the standing committees and appropriations subcommittees of the senate and house of representatives concerned with occupational issues. The director shall include all of the following information in the report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the department received and completed within the 180-day time period described in subsection (5).
(b) The number of applications denied.
(c) The number of applicants not issued a license within the 180-day time period and the amount of money returned to licensees and registrants under subsection (6).
(8) The fees collected by the department under this section shall be deposited into the security business fund created in subsection (9) .
(9) The security business fund is created within the state treasury. The department shall deposit all license fees collected under this act into the fund. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments. Money in the fund at the close of the fiscal year shall remain in the fund and be available for appropriation and expenditure by the department in subsequent fiscal years. The money in the fund shall not lapse to the general fund. The department shall expend money from the fund, upon appropriation, only for enforcement and administration of this act.
(10) As used in this section, "completed application" means an application complete on its face and submitted with any applicable licensing fees as well as any other information, records, approval, security, or similar item required by law or rule from a local unit of government, a federal agency, or a private entity but not from another department or agency of the state of Michigan.

MCLS § 338.1060 (2006)
§ 338.1060. License; revocation; grounds; failure to pay fines or fees; surrender of license; misdemeanor.

Sec. 10. (1) The department may revoke any license issued under this act if it determines, upon good cause shown, that the licensee or his or her manager, if the licensee is an individual, or if the licensee is not an individual, that any of its officers, directors, partners or its manager, has done any of the following:
(a) Made any false statements or given any false information in connection with an application for a license or a renewal or reinstatement of a license.
(b) Violated any provision of this act.
(c) Been, while licensed or employed by a licensee, convicted of a felony or a misdemeanor involving any of the following:
(i) Dishonesty or fraud.
(ii) Unauthorized divulging or selling of information or evidence.
(iii) Impersonation of a law enforcement officer or employee of the United States, this state, or a political subdivision of this state.
(iv) Illegally using, carrying, or possessing a dangerous weapon.
(v) Two or more alcohol related offenses.
(vi) Controlled substances under the public health code, 1978 PA 368, MCL 333.1101 to 333.25211.
(vii) An assault.
(d) Knowingly submitted any of the following:
(i) A name other than the true name of a prospective employee.
(ii) Fingerprints not belonging to the prospective employee.
(iii) False identifying information in connection with the application of a prospective employee.
(2) The department shall not renew a license of a licensee who owes any fine or fee to the department at the time for a renewal.
(3) Within 48 hours after notification from the department of the revocation of a license under this act, the licensee shall surrender the license and the identification card issued under section 14. A person who violates this subsection is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.

MCLS § 338.1063 (2006)
§ 338.1063. Change in name or location; report; failure to notify department.

Sec. 13. (1) Any change in the name or location of the agency or of a branch office or subagency shall be reported by the licensee to the department at least 10 days before the change becomes effective, upon receipt of which the department shall prepare and forward a certificate showing the change . The licensee shall return the old certificate within 3 business days after the change.
(2) Failure to notify the department of a change in name or location may result in license suspension.

MCLS § 338.1064 (2006)
§ 338.1064. Identification card; issuance; form; contents; recall; custody; unauthorized use; suspension and reinstatement; duplicates.

Sec. 14. (1) Upon issuing a license, the department shall issue an identification card to the principal license holder, and if the licensee is a partner in a partnership to each partner, and if the license holder is a corporation to each resident officer or manager but only if requested by a resident officer or manager.
(2) The form and contents of the identification card shall be prescribed by the department, and the card shall be recalled by the department if the license is revoked.
(3) Only 1 identification card shall be issued for each person entitled to receive it . The licensee is responsible for the maintenance, custody, and control of the identification card and shall not let, loan, sell, or otherwise permit unauthorized persons or employees to use it. This section does not prevent an agency from issuing its own identification cards to its employees if they are approved as to form and content by the department. The individual card shall not bear the seal of the state, and the employee shall be designated as either security alarm system agent, private security police officer, security guard, or security technician.
(4) The department may suspend a license issued under this act if the licensee fails to comply with any of the requirements of this act. Unless a license is required to be revoked for a violation of this act, the department shall reinstate a suspended license upon the licensee complying with this act and the licensee paying a $100.00 reinstatement fee.
(5) Upon proper application and for sufficient reasons shown, the department may issue duplicates of the original certificate of license or identification card.

MCLS § 338.1065 (2006)
§ 338.1065. License personal, not assignable.

Sec. 15. A license issued under the provisions of this act is not assignable, and is personal to such licensee.


MCLS § 338.1067 (2006)
§ 338.1067. Employees of licensee; conduct and qualifications; personnel information; employee roster to be filed with department; false statements or representations; revocation of license; misdemeanor.

Sec. 17. (1) A licensee may employ as many persons as he or she considers necessary to assist him or her in his or her work of security alarm system contractor, private security police, or private security guard and in the conduct of his or her business, and at all times during the employment is accountable for the good conduct in the business of each person so employed.
(2) Employees in the employ of a licensee after March 28, 2001 shall meet the qualifications outlined in section 6(1)(c), (e), (j), and (k), be at least 18 years of age, and have had at least an eighth grade education or its equivalent. An employee in the employ of a licensee on or before March 28, 2001 shall meet the qualifications outlined in section 6(1)(d), (e), (j), and (k), be at least 18 years of age, and have had at least an eighth grade education or its equivalent. Employees hired by a licensee after the effective date of the amendatory act that added this sentence shall meet the qualifications outlined in section 6(1)(c), (e), (j), and (k), be at least 18 years of age, and have at least a high school diploma, a GED, or its equivalent.
(3) A licensee shall keep and maintain in this state adequate and complete personnel information on all persons employed by him or her. A complete employee roster in a manner described by the department shall be filed with the department by each licensee on a quarterly basis. The rosters must be filed with the department by April 15, July 15, October 15, and January 15 for the preceding quarter. Failure to submit accurate rosters shall be cause for suspension of the license. A renewal application shall not be processed if the quarterly roster has not been received for each quarter of the preceding 2-year license period.
(4) If a licensee falsely states or represents that a person is or has been in his or her employ, the false statement or representation is sufficient cause for the revocation of the license.
(5) A person shall not falsely state or represent that he or she is an agent of a licensed security alarm system contractor, private security police officer, or private security guard. A person who violates this subsection is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.

MCLS § 338.1068 (2006)
§ 338.1068. Employment of unqualified employees; fingerprints; fee; background check of prospective employee; employment application; refusal to surrender identification.

Sec. 18. (1) A licensee shall not knowingly employ any person who fails to meet the requirements of section 17.
(2) The licensee shall cause fingerprints to be taken of all prospective employees who are direct providers of the security business, which fingerprints shall be submitted to the department of state police and the federal bureau of investigation for a state and national criminal history background check. The fingerprints shall be accompanied by a fingerprint processing fee in the amount prescribed by section 3 of 1935 PA 120, MCL 28.273, as well as any fees imposed by the federal bureau of investigation. The results of the national criminal history background check as returned by the federal bureau of investigation to the department of state police shall be used by the department to make a fitness determination. A licensee shall not employ a person who is a direct provider of the security business before submitting fingerprints to the department of state police.
(3) The fingerprints required to be taken under subsection (2) may be taken by a law enforcement agency or any other person determined by the department of state police to be qualified to take fingerprints. If a licensee takes the fingerprints, that licensee shall obtain training in taking fingerprints from the department of state police or a law enforcement agency or other person determined qualified by the department of state police .
(4) A licensee shall request the department of state police to conduct a background check of each prospective employee who is a direct provider of the security business based upon a name check. The licensee shall obtain a complete and signed employment application for all individuals for whom a name check is requested and conducted. The employment application shall be retained for at least 1 year from the date of its submission. The department of state police shall conduct the background check upon a written, electronic, or telephonic request of a licensee accompanied by a fee of $15.00 . The background check shall be conducted not later than 3 days after the date a written request is made and not later than 24 hours after a telephonic or electronic request is made. Provisional clearance based on the name check shall allow the employee to be employed as a security guard , for a period of time not to exceed 90 days, pending final clearance based upon a fingerprint check as provided for in subsection (2) . If an approval is once denied, that individual may not again be employed as a direct provider of the security business by the submitting licensee except upon receipt of an approved fingerprint clearance. A licensee or employee of a licensee who uses a name check or results of a name check for purposes other than prospective employment is guilty of a misdemeanor punishable by imprisonment for not more than 93 days, a fine of not more than $1,000.00, or both.
(5) The department of state police may enter into an agreement with a licensee for the payment of fees imposed pursuant to this act.
(6) Any employee who, upon demand, fails to surrender to the licensee his or her identification card and any other property issued to him or her for use in connection with his or her employer's business is guilty of a misdemeanor.

MCLS § 338.1072 (2006)
§ 338.1072. Advertising.

Sec. 22. (1) Every advertisement by a licensee soliciting or advertising for business shall contain his or her business name and address as they appear in the records of the department.
(2) A licensee shall, upon notice from and order of the department, discontinue any advertising or the use of any advertisement, seal , or card that, in the opinion of the department , may tend to mislead the public. Failure to comply with any such order of the department is cause for revocation or suspension of the license .
(3) A person not licensed under this act who advertises his or her business to be that of a private security guard or security alarm agency, irrespective of the name or title actually used, is guilty of a misdemeanor punishable by imprisonment for not more than 93 days, a fine of not more than $1,000.00, or both .


MCLS § 338.1073 (2006)
§ 338.1073. Trade name or designation; approval.

Sec. 23. No licensee shall use any designation or trade name which has not been first approved by the department, nor shall any licensee use any designation or trade name which implies any association with any municipal, county or state government or the federal government, or agency thereof.