AN ACT Relating to regulation of security agencies and guards; adding a new chapter to Title 19 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds it necessary to protect the general public against some private security activities which are conducted by untrained and unethical persons. The legislature also recognizes that there is a need for a state-wide scheme for the licensing of private security guards and agencies, rather than the current proliferation of local regulation. Thus, the legislature intends by this chapter to establish a uniform licensing and regulatory system for private security guards and agencies throughout the state.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Business" means any sole proprietorship, firm, partnership, trust, joint venture, association, corporation, or other business entity.

(2) "Department" means the department of licensing.

(3) "Director" means the director of licensing.

(4) "Private security services" means those duties performed by private guards or patrol personnel, including but not limited to, prevention of theft, trespass, or vandalism. Private security services do not include those duties normally performed by permanent employees when acting in the course of their employment for a department, division, or other organizational unit of a business, which business itself is not primarily engaged in the provision of private security services, or duties performed by public employees in the course of employment.

(5) "Security agency" means any business whose principal purpose is the provision of private security services by contractual agreement.

(6) "Security guard" means an individual performing private security services.

NEW SECTION. Sec. 3. (1) It is unlawful for any security agency to engage in activities regulated under this chapter in this state without a valid license issued by the director.

(2) It is unlawful for any individual to perform private security services without a valid license issued by the director.

NEW SECTION. Sec. 4. (1) No security agency license or any renewal of a security agency license may be granted to any applicant unless:

(a) An individual applicant is at least eighteen years of age;

(b) The applicant is authorized to do business in this state; and

(c) The application is complete, the fees required by section 20 of this act have been paid, and the surety bond, cash deposit, or other negotiable security and proof of public liability and property damage insurance acceptable to the director and required by section 9 of this act have been filed with the director.

(2) No security agency license or renewal of a security agency license may be granted if a sole proprietor applicant or an owner, officer, director, or managing employee of an applicant not a sole proprietor:

(a) Has knowingly made a false statement of a material fact in the current application or in any data attached to the current application or in any application, or attached data, made under this chapter within the two years prior to the date of the current application;

(b) Has had a license to engage in a business regulated by this chapter and the license was permanently revoked by this state or any other state within the two years prior to the date of the current application for any reason other than the nonpayment of licensing fees or failure to meet bonding requirements;

(d) Has been convicted in any court for the illegal use or possession of a dangerous weapon;

(e) Has had any judgment entered against him or her in any civil action involving forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, or conspiracy to defraud and the application is made within five years of the date of the entry of the final judgment in the action;

(f) Has committed or knowingly permitted any employee to commit any act while the license was expired which would be grounds for the denial, suspension, or revocation of a license;

(g) Has knowingly advised, encouraged, or assisted in the violation of any court order or injunction during the performance of services for which he or she was licensed;

(h) Has committed any act, while performing services for the licensee's business, which constitutes false, deceptive, or misleading representations or fraud upon the licensee's clients or the general public; or

(i) Has accepted employment adverse to the interests of a client or former client which was secured with confidential information obtained from or in the course of employment for another client or former client.

(3) Unless a security agency license is denied under subsection (2) of this section, any business which is engaged in an activity regulated by this chapter as of the effective date of this section, shall, upon filing the application, paying the fees, filing the surety bond, cash deposit, or other negotiable security in lieu of bond, and upon filing satisfactory proof of public liability and property damage insurance, as required by this chapter, be issued a security agency license under this chapter within forty-five days.

NEW SECTION. Sec. 5. (1) Every application for a security agency license shall be in writing, under oath, in the form prescribed by the director, and shall contain the evidence that the director reasonably deems necessary to establish that the requirements for a license have been fulfilled by the applicant.

(2) Every application for a security agency license shall state, at a minimum, the name of the applicant, the name under which the applicant will do business, and the location by street and number, city, and state of each office of the business for which the license is sought.

(3) No security agency license may be issued in any fictitious name which may be confused with or which is similar to the name of any federal, state, county, or municipal governmental unit or agency, or in any name which may tend to describe any business function or enterprise not actually engaged in by the applicant, or in any name which is the same as or is so similar to that of an existing licensee that it would tend to deceive the public, or in any name which would otherwise tend to be deceptive or misleading. However, this does not necessarily preclude the use of a name followed by a geographically descriptive title which distinguishes the name from a similar name licensed but operating in a different geographic area.

NEW SECTION. Sec. 6. Each security agency shall maintain at its principal place of business records which establish:

(1) The name and address of each security guard who is or has, within the two previous years, been in the employment of the licensee;

(2) A description and the license number of each vehicle assigned to or used by a security guard while performing services under a license; and

(3) The current deployment and assignment of all security guards employed or retained by the licensee.

NEW SECTION. Sec. 7. (1) Each security agency license, when issued, shall be in the form and size prescribed by the director and shall state, in addition to any other matter required by the director:

(a) The name of the licensee;

(b) The name under which the licensee will do business;

(d) The number and expiration date of the license.

(2) A licensee shall display the license in a conspicuous place in the licensee's principal place of business.

NEW SECTION. Sec. 8. Whenever a security agency licensee contemplates a change of trade name or a change in the location of the principal place of business, the licensee shall give written notice of the proposed change to the director. Upon the licensee paying a transfer fee and upon compliance by the licensee with all provisions of this chapter, the director shall issue a new license reflecting the change of trade name or location.

NEW SECTION. Sec. 9. (1) When an applicant applies for a security agency license, the applicant shall file a surety bond in the sum of five thousand dollars with the director. The bond is renewable annually at the time of renewal of the license, must be approved by the director as to form and content, and shall be executed by the applicant as principal and by a surety company authorized to do business in this state as surety. The bond shall run to the state of Washington as obligee for the benefit of the state and be conditioned that the licensee shall faithfully and truly perform all agreements entered into with the licensee's clients or customers. The bond required by this section shall remain in effect until canceled by action of the surety, the licensee, or the director.

(2) An applicant for a security agency license under this chapter may furnish, file, and deposit with the director, in lieu of the surety bond, a cash deposit or other negotiable security acceptable to the director. The security deposited with the director in lieu of the surety bond shall be returned to the licensee at the expiration of one year after the license has expired or been revoked if no legal action has been instituted against the licensee or on the security deposit at the expiration of the one-year period.

(3) A surety shall file with the director notice of the surety's withdrawal on the bond of the licensee. Upon filing a new bond, upon the revocation of the license, or upon the expiration of sixty days after the filing of notice of withdrawal as surety by the surety, the liability of the former surety for all future acts of the licensee terminates.

(4) The director shall immediately cancel the bond given by a surety company when informed that the surety company's license to transact business in this state has been revoked.

(5) Upon the filing with the director of notice by a surety of withdrawal as the surety on the bond of a licensee or upon cancellation by the director of the bond of a surety as provided in this section, the director shall immediately give notice to the licensee of the withdrawal or cancellation. The notice shall be sent to the licensee by registered or certified mail with request for a return receipt and addressed to the licensee at the licensee's principal place of business as shown by the records of the director. Upon the expiration of thirty days from the date of mailing the notice, the license of the licensee is terminated, unless the licensee has filed a new bond with a surety satisfactory to the director.

(6) All bonds given under this chapter shall be filed and held in the office of the director.

(7) At the time of application, the applicant for a security agency license shall furnish to the director satisfactory evidence that the applicant has procured and has in effect public liability and property damage insurance covering the applicant's operations for the following sums: (a) Not less than fifty thousand dollars for injury or damage to property; (b) not less than one hundred thousand dollars for injury or damage to any one person, including death to any one person; and (c) not less than three hundred thousand dollars for injury or damage to more than one person, including death to more than one person.

(8) The insurance company of any licensee shall notify the director thirty days before the expiration or cancellation of any public liability and property damage insurance required under subsection (7) of this section. The licensee shall notify the director whenever such insurance ceases to be effective. If the insurance ceases to be effective, an application for a license shall be rejected by the director, or if the license has been granted, the license shall be suspended until the insurance is reinstated.

NEW SECTION. Sec. 10. In addition to all other legal remedies, an action may be brought in any court of competent jurisdiction upon the bond, cash deposit, or security in lieu of a bond or cash deposit, by any person to whom the security agency licensee fails to account and pay as set forth in the bond or by any client or customer of the licensee who has been damaged by the licensee's failure to comply with all agreements entered into with the client or customer. The aggregate liability of the surety to these clients or customers shall not exceed the sum of the bond.

An action upon the bond or security is commenced by serving and filing the complaint within one year from the date of the cancellation of the bond or, in the case of a cash deposit or other security deposited in lieu of the surety bond, within one year of the date of expiration or revocation of the license. An action shall not be maintained upon the bond or the cash deposit or other security for any claim which has been barred by a nonclaim statute or statute of limitation of this state. Two copies of the complaint shall be served by registered or certified mail upon the director at the time the suit is begun. This service constitutes service on the surety. The director shall transmit one of the copies of the complaint served on the director to the surety within forty-eight hours after the complaint is received.

The director shall maintain a record, available for public inspection, of all suits commenced under this chapter upon surety bonds, or the cash or other security deposited in lieu thereof.

If a judgment is entered against the deposit or security under section 9(2) of this act, the director shall, upon receipt of a certified copy of a final judgment, pay the judgment from the amount of the deposit or security.

NEW SECTION. Sec. 11. (1) It is unlawful, either directly, indirectly, or by implication, for a licensee to represent himself or herself or his or her employees as an instrumentality of the federal or state government or of any of their political subdivisions.

(2) It is unlawful for a licensee to use any uniform, insignia, badge or shield, business card, stationary, identification card, initials, business name, or any other device, object, or apparel which may reasonably be interpreted by members of the general public to mean that the licensee represents the federal or state government or a political subdivision. The words "security guard" or "guard" shall conspicuously appear on any badge or shield used by a licensee or an employee of a licensee.

(3) It is unlawful for any licensee to engage in any act which delays or obstructs the operation or activities of public law enforcement or public safety officials of the state.

(4) It is unlawful for a licensee to carry a visible weapon while making a sales presentation to members of the general public.

(5) It is unlawful for a licensee to use sirens, flashing emergency lights, or any other emergency equipment commonly used by public law enforcement agencies, on vehicles owned or subject to the control of the licensee, except as otherwise authorized by law or the state commission on equipment.

NEW SECTION. Sec. 12. An application for a security guard license shall be in writing, in the form prescribed by the director, made by a person eighteen years of age or older, and verified on oath by the applicant. The application shall include:

(1) The name, address, date of birth, and social security number of the applicant;

(2) Three recent photographs of the applicant and a classifiable set of fingerprints;

(3) A list of any criminal convictions;

(4) Whether or not a firearm will be used in connection with the applicant's duties, and any necessary permits required for such use;

(5) The fee required by section 20 of this act;

(6) Proof that the applicant meets the requirements of section 13 of this act; and

(7) Any other information, statements, or documents required by the director.

NEW SECTION. Sec. 13. Prior to issuing a security guard license, the director shall be furnished evidence satisfactory to the director that the security agency employing the applicant has provided the applicant with the following training:

(1) If the applicant will not carry a weapon, the applicant shall receive twenty-four hours of training;

(2) If the applicant's primary duties involve security inside a residential or commercial building, the applicant shall receive forty hours of training; and

(3) If the applicant will carry a weapon, the applicant shall receive eighty hours of training.

The training required by subsection (2) of this section may be substituted for any part of the training required by subsection (1) or (3) of this section.

NEW SECTION. Sec. 14. The director shall grant or deny an application for a security guard license within thirty days following completion of the application. The director may deny a license to any applicant, if the applicant has:

(1) Committed any act resulting in conviction of, or has charges pending for, a felony or a crime which relates directly to the application;

(2) Made any false statements in the application;

(3) Committed any act which, if committed by a licensee, would be grounds for the suspension or revocation of a license under the provisions of this chapter;

(4) While not holding a license, committed or aided and abetted the commission of any act for which a license is required by this chapter; or

(5) Been refused a license or had a license suspended or revoked under this chapter.

Any applicant denied a license under this section may reapply after six months if the basis for the denial has been removed.

NEW SECTION. Sec. 15. The director shall suspend or revoke any license issued pursuant to this chapter if the applicant has:

(1) Made any false statement with regard to an application for a license or for the renewal or reinstatement of a license;

(2) Violated any provision of this chapter;

(3) Been convicted of a felony or any crime relating directly to a security agency license granted under this chapter while in possession of a security guard license issued pursuant to this chapter;

(4) Illegally used, carried, or possessed a dangerous weapon;

(5) Committed any act while the license was expired which would be grounds for the denial, suspension, or revocation of a license;

(6) Knowingly advised, encouraged, or assisted in the violation of any court order or injunction during the performance of services for which he or she has a license; or

(7) Accepted employment adverse to the interests of a client or former client which was secured upon confidential information obtained from or in the course of employment for another client or former client.

NEW SECTION. Sec. 16. Every security guard licensee shall have the license in his or her immediate possession at all times while actively engaged in employment regulated by this chapter and shall display the license upon demand to any law enforcement officer or representative of the department.

NEW SECTION. Sec. 17. (1) Before granting any license under this chapter, the director shall submit the applicant's name, photograph, and fingerprints to the section on identification of the Washington state patrol for the purpose of verifying the applicant's criminal record or lack of a criminal record.

(2) The director may conduct any other investigation necessary to establish that the requirements of a license have been met.

NEW SECTION. Sec. 18. (1) Except as provided in subsection (2) of this section, a license granted under this chapter is not assignable or transferable.

(2) Upon the death of an individual security agency licensee, the director shall have the right to transfer the license of the decedent to the personal representative of the decedent's estate for the period of the unexpired term of the license and additional time, not to exceed one year from the date of death of the licensee, which the personal representative needs to settle the decedent's estate or to sell the business.

NEW SECTION. Sec. 19. A license shall expire one year after it was granted, except that the department may establish staggered expiration dates. Licenses may be renewed upon payment of the established fee.

NEW SECTION. Sec. 20. License fees, renewal fees, transfer fees, and penalty fees shall be established by the director under RCW 43.24.086.

NEW SECTION. Sec. 21. The director shall adopt rules necessary to implement this chapter.

The director shall establish rules and procedures to improve the necessary coordination between public law enforcement and contract security agencies by the notification of local law enforcement authorities whenever private security services are established within their jurisdictions.

NEW SECTION. Sec. 22. (1) Any person wilfully violating or failing to comply with any provision of this chapter shall upon conviction be fined not more than one thousand dollars or imprisoned for not more than one year or both.

(2) Nothing in this chapter limits the power of the state to punish any person for conduct which constitutes a crime by statute or at common law.

NEW SECTION. Sec. 23. The legislature preempts the licensing and regulation by political subdivisions of the state of the occupations and businesses regulated under this chapter. On and after the effective date of this section, all such regulations of political subdivisions are superseded.

NEW SECTION. Sec. 24. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 25. Sections 1 through 23 of this act constitute a new chapter in Title 19 RCW.