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Licensing Requirements of the Private Security Business and Security Alarm Act

The Private Security Business and Security Alarm Act (“Act”), 1968 Public Act 330, MCL 338.1051 et seq., regulates private security guards, private security guard agencies and businesses, and security alarm system contractors within the State of Michigan. The Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau (“Department”) is tasked with the administration of the Act as it pertains to private security guards, private security guard agencies and businesses, and security alarm contractors and businesses. The purpose of this spotlight is to alert licensees and future licensees of what the Act requires of individuals and entities that provide private security guard services or security alarm services in the State of Michigan immediately following licensure. Note: The Department of State Police is tasked with the administration of the Act as it relates to private security police and private college security forces. MCL 338.1052(1)(b).

Definitions

Private Security Guard: A “private security guard” is defined as “an individual or an employee of an employer who offers, for hire, to provide protection of property on the premises of another . . . .”

Security Alarm System Agent: A “security alarm system agent” is defined as “an individual employed by a security alarm system contractor whose duties include the altering, installing, maintaining, moving, repairing, replacing, selling, servicing, monitoring, responding to, or causing others to respond to a security alarm system.”

Security Alarm System Contractor: A “security alarm system contractor” is defined in the Act as “a person engaged in the installation, maintenance, alteration, monitoring, or servicing of security alarm systems or who responds to a security alarm system.”

Security Business: A “security business” is defined in the Act as “a person engaged in offering, arranging, or providing 1 or more of the following services: (i) security alarm system installation, service, maintenance, alteration, or monitoring; (ii) private security guard . . . .”

Note: “Person” includes more than just an individual. Within the Act it means either an individual, a limited liability company, corporation, or other legal entity.

Sections of the Act: MCL 338.1052(1)(g), (1)(j), (1) (k) & (l)(l)(i)-(ii).

Licenses: Requirements & Felony Unlicensed Activity

License Types. Currently, the Department issues either a Security Guard Agency license or a Security Alarm Contractor Agency license and does not issue an individual Security Guard or Security Alarm System Contractor license. If an individual wishes to apply for licensure, they must submit either sole proprietorship or doing business as (“DBA”) documentation that has been filed with the county clerk of the county in which the individual resides along with their application.

License Requirement: A sole proprietorship, firm, company, partnership, limited liability company, or corporation in the business of security system contractor, private security guard, or an agency furnishing those services must obtain a license from the Department. Section of the Act: MCL 338.1053(1).

License Term: A license issued by the Department under the Act is valid for two (2) years from the date it is issued. Licensees are encouraged to mark their calendars to ensure timely license renewal and avoid any possible lapses in their licensed status. Renewal reminders will be sent to the email address and mailing address that is on file with the Department 60 days prior to the expiration of the license. Section of the Act: MCL 338.1055.

Felony: Operating without the proper licensure is a felony punishable by up to 4 years in prison and up to a $1,000.00 fine, or both. While the Department does not have the authority to enforce the criminal provisions of the Act, it routinely makes referrals to law enforcement agencies with that authority when it suspects that a violation of a criminal provision may have occurred. Section of the Act: MCL 338.1053(3). 

Advertising: Requirements & Misdemeanors

Advertising Requirements: Every advertisement that solicits or advertises for security business must contain the licensee’s business name and address as that information appears in the Department’s records.

Misleading Advertising: A licensee may be required to 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. If a licensee fails to comply with an order of the Department to stop advertising or using any advertisement, seal, or card, the licensee’s license may be revoked or suspended.

Misdemeanor: It is a misdemeanor to advertise your services to be those of a private security guard or agency or security alarm agency without a license under the Act. If found guilty, a person may be punished by imprisonment for not more than 93 days, a fine of not more than $1,000.00, or both. Sections of the Act: MCL 338.1072(1)-(3).

Identification Cards

ID Card Issued by the Department: If the licensee is a corporation, then an ID card may be issued by the Department to each resident officer or manager upon request. Only one (1) ID card may be issued to each person entitled to receive it. Once an ID card is issued, the licensee is responsible for maintenance, custody, and control of the ID card, and the licensee cannot let, loan, sell, or permit an unauthorized person or employee to use it. Sections of the Act: MCL 338.1064(1) & (3).

ID Cards Issued to Employees: An agency may issue its own ID card to each of its employees after it receives the Department’s approval of its form and contents. The agency-issued card may not contain the seal of the State of Michigan and must designate the employee as either a security alarm system agent, security guard, or security technician. Section of the Act: MCL 338.1064(3).

Questions regarding ID card issuance or approval may be directed to the Department’s Licensing Division by email at csclonline@michigan.gov or by phone at (517) 241-9221.

Uniforms and Should Patches or Emblems

Department Approval Required: A licensee must obtain approval of its uniforms, insignia, and shoulder patches before they are worn and displayed by the licensee and/or its employees.

Uniforms: The type of uniform and any insignia, including shoulder patches and emblems, worn by a licensee or the licensee’s employees, must be approved by the Department before their use. The uniform cannot deceive or confuse the public or be identical to the uniform of a federal, state, or local law enforcement officer in the community of the license holder. A licensee must ensure that it and/or its employees wear a uniform that has been approved by the Department when the licensee and/or its employees are providing services on behalf of the licensee.

Note: A uniform may not resemble the uniforms of a local police department, a county sheriff, or the Michigan State Police. Section of the Act: MCL 338.1069(1).

Shoulder Patches: A shoulder identification patch must be worn on all uniform jackets, coats, and shirts and must include the licensee or agency’s name. The shoulder patch or emblem must also be at least 3 inches by 5 inches in size. Licensees need to seek the Department’s approval of the shoulder patch before it is worn by the licensee or the licensee’s employees.

Note: When submitting a shoulder patch and/or emblem for approval, please provide a rendering of the shoulder patch and/or emblem showing the dimensions of the proposed shoulder patch and/or emblem meet the size requirement of the Act (3 inches by 5 inches) or provide photo(s) of the proposed shoulder patch and/or emblem with rulers showing the dimensions. Section of the Act: MCL 338.1069(1).

Questions regarding uniform and shoulder patch and/or emblem approval may be directed to the Department’s Licensing Division by email at csclonline@michigan.gov or by phone at (517) 241-9221.

Use of Unapproved Badges/Shields

Department Approval Required: A licensee must obtain approval of its badges or shields before they are used and displayed by the licensee and/or its employees. The Department requires that the badge or shield include the name of the licensee or an abbreviation of the licensee’s name on the badge or shield.

Badges/Shields: A security alarm system agent, an employee or licensee of a security alarm system contractor, or a private security guard is prohibited from wearing or carrying a badge or shield unless the badge or shield was previously approved by the Department.

Note: A badge or shield may not resemble that of a local police department, a county sheriff’s department, or the Michigan State Police. Examples of insignia not to include on a badge or shield include things such as a star, an eagle, or the seal of the State of Michigan.

Misdemeanor: A person who is not employed as a security guard is prohibited from displaying a badge or shield or wearing a uniform of a security guard. A person who ignores this prohibition is guilty of a misdemeanor punishable by imprisonment for no more than 93 days or a fine of no more than $500.00, or both. Sections of the Act: MCL 338.1069(2) & (3). 

Questions regarding badge or shield approval may be directed to the Department’s Licensing Division by email at csclonline@michigan.gov or by phone at (517) 241-9221.

Use of Weapons

Deadly Weapons: A person who is licensed as a security alarm system contractor, security alarm system agent, or a private security guard or private security guard agency may carry a deadly weapon if the person is licensed to do under the laws of the State of Michigan.

Note: Michigan’s Firearm statutes, MCL 28.421, et seq. may be accessed by clicking here.

Tactical Batons: A licensee may authorize their employees to carry any commercially available tactical baton. Sections of the Act: MCL 338.1069(4) & (5).

 

Contact Us

Email: csclonline@michigan.gov

Phone: (517) 241-9221

Fax: (517) 763-0036