North Carolina 2025-2026 Regular Session

North Carolina House Bill H897 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 897
3+H D
4+HOUSE BILL DRH10407-NNf-61
5+
56
67
78 Short Title: DPS Agency Changes.-AB (Public)
89 Sponsors: Representative Carson Smith.
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Judiciary 2, if favorable, Finance, if favorable, Rules, Calendar, and Operations of
11-the House
12-April 14, 2025
13-*H897 -v-1*
10+Referred to:
11+
12+*DRH10407 -NNf-61*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO MODERNIZE THE ALARMS SYSTEMS LICENSING ACT AND MAKE 2
1615 VARIOUS CHANGES TO THE PRIVATE PROTECTIVE SERVICES BOARD LAWS . 3
1716 The General Assembly of North Carolina enacts: 4
1817 5
1918 PART I. ALARMS SYSTEMS LICENSING ACT MODERNIZATION 6
2019 SECTION 1.(a) Chapter 74D of the General Statutes reads as rewritten: 7
2120 "Chapter 74D. 8
2221 "Alarm Security Systems. 9
2322 "Article 1. 10
2423 "Alarm Security Systems Licensing Act. 11
2524 "§ 74D-1. Title. 12
2625 This act may be cited as the "Alarm "Security Systems Licensing Act." 13
2726 "§ 74D-2. License Business and qualifying agent license requirements. 14
2827 (a) License Required. – No person, firm, association, corporation, or department or 15
2928 division of a firm, association or corporation, shall engage in or hold itself out as engaging in an 16
3029 alarm a security systems business without first being licensed in accordance with this Chapter. 17
3130 A department or division of a firm, association, or corporation may be separately licensed under 18
3231 this Chapter if the distinct department or division, as opposed to the firm, association, or 19
3332 corporation as a whole, engages in an alarm a security systems business. The department or 20
3433 division shall ensure strict confidentiality of private security information, and the private security 21
3534 information of the department or division must, at a minimum, be physically separated from other 22
3635 premises of the firm, association, or corporation. For purposes of this Chapter an "alarm a 23
3736 "security systems business" is defined as any person, firm, association or corporation that does 24
3837 any of the following: 25
3938 (1) Sells Unless otherwise exempt, sells or attempts to sell an alarm a security 26
4039 system device by engaging in a any personal solicitation at a residence or 27
4140 business to advise, design, or consult on specific types and specific locations 28
4241 of alarm security system devices. 29
4342 (2) Installs, Unless otherwise exempt, installs, services, monitors, or responds to 30
4443 electrical, wireless or hardwired electronic or mechanical alarm signal 31
4544 devices, devices and security systems, integrated automation of a residence or 32
4645 business that includes a security element, burglar alarms, monitored access 33
47-control, or cameras cameras, analytic capturing devices, systems providing 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 897-First Edition
49-intelligence or other imaging devices used to detect or observe burglary, 1
50-breaking or entering, intrusion, shoplifting, pilferage, theft, or other 2
51-unauthorized or illegal activity. This provision shall not apply to a locking 3
52-device that records entry and exit data and does not transmit the data in real 4
53-time to an on-site or off-site monitoring location, provided the installer is duly 5
54-licensed by the North Carolina Locksmith Licensing Board. 6
55-… 7
56-(c) Qualifying Agent. – A business entity that engages in the alarm systems business is 8
57-required to be licensed under this Chapter is subject to all of the requirements listed in this 9
58-subsection with respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent" 10
59-is an individual who is a full-time employee in a management position who is licensed under this 11
60-Chapter and whose name and address have been registered with the Board. The requirements are: 12
61-(1) The business entity shall employ a designated qualifying agent who meets the 13
62-requirements for a license issued under and who is, in fact, licensed under the 14
63-provisions of this Chapter, unless otherwise approved by the Board. Service 15
64-upon the qualifying agent appointed by the business entity of any process, 16
65-notice or demand required by or permitted by law to be served upon the 17
66-business entity by the Alarm Security Systems Licensing Board shall be 18
67-binding upon the licensed business entity. Nothing herein contained shall limit 19
68-or affect the right to serve any process, notice or demand required or permitted 20
69-by law to be served upon a business entity in any other manner or hereafter 21
70-permitted by law. 22
71-… 23
72-(3) In the event that the qualifying agent upon whom the business entity relies in 24
73-order to do business ceases to perform his duties as qualifying agent, the 25
74-business entity shall notify the board in writing by letter or using the Board's 26
75-online form within 10 working days. The business entity must obtain a 27
76-substitute qualifying agent within 90 days after the original qualifying agent 28
77-ceases to serve as qualifying agent. The Director, in his or her discretion, may 29
78-extend the 90-day period for good cause by an additional 30 days upon a 30
79-written request of an officer of the company. 31
80-(4) The license certificate shall list the name of the qualifying agent. No licensee 32
81-person shall serve as the qualifying agent for more than one business entity 33
82-without the prior approval of the Board. 34
83-… 35
84-(6) The qualifying agent shall be responsible for maintaining a current address 36
85-and other contact information with the Board. 37
86-(d) Criminal Record Check. Minimum Qualifications for Security Systems License. – An 38
87-applicant must for qualifying agent shall meet all of the following requirements and qualifications 39
88-determined by a background investigation conducted by the Board in accordance with 40
89-G.S. 74D-2.1 and upon receipt of an application:qualifications: 41
90-(1) The applicant is at least 18 years of age. 42
91-(2) The applicant is of good moral character and temperate habits. The following 43
92-shall be prima facie evidence that the applicant does not have good moral 44
93-character or temperate habits: conviction by any local, State, federal, or 45
94-military court of any crime involving the illegal use, carrying, or possession 46
95-of a firearm; conviction of any crime involving the illegal use, possession, 47
96-sale, manufacture, distribution or transportation of a controlled substance, 48
97-drug, narcotic, or alcoholic beverages; conviction of a crime involving 49
98-felonious assault or an act of violence; conviction of a crime involving 50
99-unlawful breaking or entering, burglary, larceny, or of any offense involving 51 General Assembly Of North Carolina Session 2025
100-House Bill 897-First Edition Page 3
101-moral turpitude; or a history of addiction to alcohol or a narcotic drug; 1
102-provided that, for purposes of this subsection, "conviction" means and 2
103-includes the entry of a plea of guilty, plea of no contest, or a verdict rendered 3
104-in open court by a judge or jury.jury, including a prayer for judgment 4
105-continued, adjudication withheld, or equivalent. 5
106-(3) The applicant has the necessary training, qualifications and experience to be 6
107-licensed.licensed, or the applicant has successfully completed or kept current 7
108-a Certified Alarm Technician Level I course offered by the Electronic Security 8
109-Association or equivalent course approved by the Board. 9
110-(e) Examination. – The Board may require the applicant to demonstrate the applicant's 10
111-qualifications by examination. 11
46+control, or cameras cameras, analytic capturing devices, systems providing 34
47+intelligence or other imaging devices used to detect or observe burglary, 35
48+breaking or entering, intrusion, shoplifting, pilferage, theft, or other 36
49+H.B. 897
50+Apr 10, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH10407-NNf-61
53+unauthorized or illegal activity. This provision shall not apply to a locking 1
54+device that records entry and exit data and does not transmit the data in real 2
55+time to an on-site or off-site monitoring location, provided the installer is duly 3
56+licensed by the North Carolina Locksmith Licensing Board. 4
57+… 5
58+(c) Qualifying Agent. – A business entity that engages in the alarm systems business is 6
59+required to be licensed under this Chapter is subject to all of the requirements listed in this 7
60+subsection with respect to a qualifying agent. For purposes of this Chapter, a "qualifying agent" 8
61+is an individual who is a full-time employee in a management position who is licensed under this 9
62+Chapter and whose name and address have been registered with the Board. The requirements are: 10
63+(1) The business entity shall employ a designated qualifying agent who meets the 11
64+requirements for a license issued under and who is, in fact, licensed under the 12
65+provisions of this Chapter, unless otherwise approved by the Board. Service 13
66+upon the qualifying agent appointed by the business entity of any process, 14
67+notice or demand required by or permitted by law to be served upon the 15
68+business entity by the Alarm Security Systems Licensing Board shall be 16
69+binding upon the licensed business entity. Nothing herein contained shall limit 17
70+or affect the right to serve any process, notice or demand required or permitted 18
71+by law to be served upon a business entity in any other manner or hereafter 19
72+permitted by law. 20
73+… 21
74+(3) In the event that the qualifying agent upon whom the business entity relies in 22
75+order to do business ceases to perform his duties as qualifying agent, the 23
76+business entity shall notify the board in writing by letter or using the Board's 24
77+online form within 10 working days. The business entity must obtain a 25
78+substitute qualifying agent within 90 days after the original qualifying agent 26
79+ceases to serve as qualifying agent. The Director, in his or her discretion, may 27
80+extend the 90-day period for good cause by an additional 30 days upon a 28
81+written request of an officer of the company. 29
82+(4) The license certificate shall list the name of the qualifying agent. No licensee 30
83+person shall serve as the qualifying agent for more than one business entity 31
84+without the prior approval of the Board. 32
85+… 33
86+(6) The qualifying agent shall be responsible for maintaining a current address 34
87+and other contact information with the Board. 35
88+(d) Criminal Record Check. Minimum Qualifications for Security Systems License. – An 36
89+applicant must for qualifying agent shall meet all of the following requirements and qualifications 37
90+determined by a background investigation conducted by the Board in accordance with 38
91+G.S. 74D-2.1 and upon receipt of an application:qualifications: 39
92+(1) The applicant is at least 18 years of age. 40
93+(2) The applicant is of good moral character and temperate habits. The following 41
94+shall be prima facie evidence that the applicant does not have good moral 42
95+character or temperate habits: conviction by any local, State, federal, or 43
96+military court of any crime involving the illegal use, carrying, or possession 44
97+of a firearm; conviction of any crime involving the illegal use, possession, 45
98+sale, manufacture, distribution or transportation of a controlled substance, 46
99+drug, narcotic, or alcoholic beverages; conviction of a crime involving 47
100+felonious assault or an act of violence; conviction of a crime involving 48
101+unlawful breaking or entering, burglary, larceny, or of any offense involving 49
102+moral turpitude; or a history of addiction to alcohol or a narcotic drug; 50
103+provided that, for purposes of this subsection, "conviction" means and 51 General Assembly Of North Carolina Session 2025
104+DRH10407-NNf-61 Page 3
105+includes the entry of a plea of guilty, plea of no contest, or a verdict rendered 1
106+in open court by a judge or jury.jury, including a prayer for judgment 2
107+continued, adjudication withheld, or equivalent. 3
108+(3) The applicant has the necessary training, qualifications and experience to be 4
109+licensed.licensed, or the applicant has successfully completed or kept current 5
110+a Certified Alarm Technician Level I course offered by the Electronic Security 6
111+Association or equivalent course approved by the Board. 7
112+(e) Examination. – The Board may require the applicant to demonstrate the applicant's 8
113+qualifications by examination. 9
114+… 10
115+(g) An alarm monitoring company located in another state and licensed by that state 11
116+which demonstrates to the Board's satisfaction that it does not conduct any business through a 12
117+personal representative present in this State, but which solicits and conducts business solely 13
118+through interstate communication facilities, such as telephone, the internet, and the United States 14
119+Postal Service, upon receipt by the Board of a certificate of good standing from the state of 15
120+licensure is not required to register employees pursuant to G.S. 74D-8. Out-of-state monitoring 16
121+companies not licensed in any state must be licensed by the Board and must register employees 17
122+pursuant to G.S. 74D-8. 18
123+(h) A security guard and patrol company licensed under Chapter 74C of the General 19
124+Statutes that remotely monitors access control, cameras, analytic capturing devices, systems 20
125+providing intelligence, or other imaging devices shall obtain a separate limited monitoring license 21
126+and may utilize the same qualifying agent for the limited license as utilized for its security guard 22
127+and patrol license and shall not be required to meet the requirements of G.S. 74D-2(d)(3) and (4) 23
128+or hold a low voltage electrical license. The qualifying agent must successfully complete a central 24
129+station monitoring operator course approved by the Board. 25
130+"§ 74D-2.1. Criminal background checks. 26
131+(a) Authorization. – Upon receipt of an application for a license or registration, the Board 27
132+shall conduct a background investigation to determine whether the applicant meets the 28
133+requirements for a license or registration as set out in G.S. 74D-2(d). The Department State 29
134+Bureau of Public Safety Investigation may provide a criminal record check to the Board for a 30
135+person who has applied for a new or renewal license or registration through the Board. The Board 31
136+shall provide to the Department of Public Safety, State Bureau of Investigation, along with the 32
137+request, the fingerprints of a new applicant, and the Department of Public Safety State Bureau of 33
138+Investigation shall provide a criminal record check based upon the applicant's fingerprints. The 34
139+Board may request a criminal record check from the Department of Public Safety State Bureau 35
140+of Investigation for a renewal applicant based upon the applicant's fingerprints in accordance 36
141+with policy adopted by the Board. The Board shall provide any additional information required 37
142+by the Department of Public Safety State Bureau of Investigation and a form signed by the 38
143+applicant consenting to the check of the criminal record and to the use of the fingerprints and 39
144+other identifying information required by the State or national repositories. The applicant's 40
145+fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's 41
146+criminal history record file, and the State Bureau of Investigation shall forward a set of the 42
147+fingerprints to the Federal Bureau of Investigation for a national criminal history check. The 43
148+Department of Public Safety State Bureau of Investigation may charge each applicant a fee to be 44
149+collected by the Board and transmitted to the State Bureau of Investigation for conducting the 45
150+checks of criminal history records authorized by this subsection. 46
151+The Board may require a new or renewal applicant to obtain a criminal record report from 47
152+one or more reporting services designated by the Board to provide criminal record reports. 48
153+Applicants are required to pay the designated reporting service for the cost of these reports. 49
154+(b) Confidentiality. – The Except as necessary to support the denial of an application or 50
155+a disciplinary matter in a contested case, the Board shall keep all information obtained pursuant 51 General Assembly Of North Carolina Session 2025
156+Page 4 DRH10407-NNf-61
157+to this section confidential in accordance with applicable State law and federal guidelines, and 1
158+the information shall not be a public record under Chapter 132 of the General Statutes. 2
159+"§ 74D-3. Exemptions. 3
160+The provisions of this Chapter shall not apply to:to the following: 4
161+(1) A person, firm, association or corporation that sells or manufactures alarm 5
162+security systems, unless the person, firm, association or corporation makes 6
163+personal solicitations at a residence or business to advise, design, or consult 7
164+on specific types and specific locations of alarm security system devices, 8
165+installs, services, monitors, or responds to alarm security systems at or from a 9
166+protected premises or a premises to be protected and thereby obtains 10
167+knowledge of specific application or location of the alarm security system. A 11
168+person licensed under this Chapter may hire a consultant to troubleshoot a 12
169+location or installation for a period of time not to exceed 48 hours in a 13
170+one-month period if the licensee submits a report to the Board within 30 days 14
171+from the date of the consultation designating the consultant as a temporary 15
172+consultant; 16
173+(2) Installation, servicing or responding to fire alarm systems or any alarm device 17
174+which is installed in a motor vehicle, aircraft or boat;boat. 18
175+(3) Installation or service of an alarm electronic security system on property 19
176+owned by or leased to the installer;installer. 20
177+(4) An alarm monitoring company located in another state which demonstrates to 21
178+the Board's satisfaction that it does not conduct any business through a 22
179+personal representative present in this State but which solicits and conducts 23
180+business solely through interstate communication facilities such as telephone 24
181+messages, earth satellite relay stations and the United States postal service; 25
182+and 26
183+(5) A person or business providing alarm systems services to a State agency or 27
184+local government if that person or business has been providing those services 28
185+to the State agency or local government for more than five years prior to the 29
186+effective date of this Chapter, and the State agency or local government joins 30
187+with the person or business in requesting the application of this exemption. 31
188+(6) Installation or service of a locking device that records entry and exit data and 32
189+does not transmit the data in real time to an on-site or off-site monitoring 33
190+location, provided the installer is licensed by the North Carolina Locksmith 34
191+Licensing Board. 35
192+(7) An entity through which a customer accesses marketing or advertising 36
193+material or installation instructions for a security system. 37
194+(b) A person licensed under this Chapter may utilize a consultant or manufacturer's 38
195+representative to troubleshoot a location or installation if accompanied by the licensee and the 39
196+licensee submits a report to the Board within 30 days from the date of the consultation designating 40
197+the consultant as a temporary consultant. 41
198+"§ 74D-4. Alarm Security Systems Licensing Board. 42
199+(a) The Alarm Security Systems Licensing Board is hereby established. 43
200+(b) The Board shall consist of seven members: the Secretary of Public Safety or his or 44
201+her designee; two persons appointed by the Governor, one of whom shall be licensed under this 45
202+Chapter and one of whom shall be a public member; two persons appointed by the General 46
203+Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance 47
204+with G.S. 120-121, one of whom shall be licensed under this Chapter and one of whom shall be 48
205+a public member; and two persons appointed by the General Assembly upon the recommendation 49
206+of the Speaker of the House of Representatives in accordance with G.S. 120-121, one of whom 50
207+shall be licensed under this Chapter and one of whom shall be a public member. 51 General Assembly Of North Carolina Session 2025
208+DRH10407-NNf-61 Page 5
209+(c) Each member shall be appointed for a term of three years and shall serve until a 1
210+successor is installed. No With the exception of the Secretary or his or her designee, no member 2
211+shall serve more than two complete three-year consecutive terms. The term of each member, 3
212+other than the Attorney General or his designee, who is serving on August 7, 1989, shall terminate 4
213+on June 30, 1989. Of the appointments made by the General Assembly upon the recommendation 5
214+of the President of the Senate to begin on July 1, 1989, one member shall be for a term of one 6
215+year and one member shall be for a term of three years. Of the appointments made by the General 7
216+Assembly upon the recommendation of the Speaker of the House of Representatives, one member 8
217+shall be appointed for a term of two years and one member shall be appointed for a term of three 9
218+years. Thereafter all terms shall be for three years. 10
219+… 11
220+(e) Board members who are also State officers or employees shall receive no per diem 12
221+compensation for serving on the Board, and shall only receive the travel allowances set forth in 13
222+G.S. 138-6. All other Board members shall receive reimbursement in accordance with 14
223+G.S. 93B-5(b) and, notwithstanding G.S. 93B-5(a), shall receive as compensation for their 15
224+services per diem not to exceed one hundred dollars ($100.00) for each day during which they 16
225+are engaged in the official business of the Board. The Board shall set the travel allowance and 17
226+per diem compensation of Board members who are not also State officers or employees. 18
227+(f) The Board shall elect a chairman chair and a vice-chairman vice-chair from its 19
228+membership by majority vote at the first meeting of its fiscal year. The vice-chairman vice-chair 20
229+shall serve as chairman chair of the screening committee and shall also serve as chairman chair 21
230+in the chairman's chair's absence. At no time shall both the positions of chairman chair and 22
231+vice-chairman vice-chair be held by either an industry representative or a nonindustry 23
232+representative. 24
233+(g) The Board shall meet at the call of the chairman chair or a majority of the members 25
234+of the Board. The Board shall adopt rules governing the call and conduct of its meetings. A 26
235+majority of the current Board membership constitutes a quorum. 27
236+"§ 74D-5. Powers of the Board. 28
237+(a) In addition to the powers conferred upon the Board elsewhere in this Chapter, the 29
238+Board shall have the power to:to do the following: 30
239+(1) Promulgate rules necessary to carry out and administer the provisions of this 31
240+Chapter including the authority to require the submission of reports and 32
241+information by licensees under this Chapter;Chapter. 33
242+(2) Determine minimum qualifications and establish minimum education, 34
243+experience, and training standards for applicants and licensees applicants, 35
244+licensees, and registrants under this Chapter;Chapter. 36
245+(3) Conduct investigations regarding alleged violations and make evaluations as 37
246+may be necessary to determine if unlicensed individuals or entities are in 38
247+violation of this Chapter and licensees and registrants under this Chapter are 39
248+complying with the provisions of this Chapter;Chapter. The Board shall issue 40
249+cease and desist orders, in writing, for violations of this Chapter with the 41
250+concurrence of the Secretary of Public Safety. 42
251+(4) Adopt and amend bylaws, consistent with law, for its internal management 43
252+and control;control. 44
253+(5) Investigate and approve individual applicants to be licensed or registered 45
254+according to this Chapter;Chapter. 46
255+(6) Deny, suspend, or revoke any license issued or to be issued under this Chapter 47
256+to any applicant or licensee applicant, licensee, or registrant who fails to 48
257+satisfy the requirements of this Chapter or the rules established by the Board. 49
258+The denial, suspension, or revocation of such license or registration shall be 50 General Assembly Of North Carolina Session 2025
259+Page 6 DRH10407-NNf-61
260+in accordance with Chapter 150B of this General Statutes of North 1
261+Carolina;Carolina. 2
262+(7) Issue subpoenas to compel the attendance of witnesses and the production of 3
263+pertinent books, accounts, records, and documents. The district court shall 4
264+have the power to impose punishment pursuant to G.S. 5A-21 et seq. for acts 5
265+occurring in matters pending before the Board which would constitute civil 6
266+contempt if the acts occurred in an action pending in court; andcourt. 7
267+(8) Contract for services as necessary to carry out the functions of the Board. 8
268+(9) Acquire, hold, rent, encumber, alienate, and otherwise deal with real property 9
269+in the same manner as a private person or corporation, subject only to approval 10
270+of the Governor and the Council of State. Collateral pledged by the Board for 11
271+an encumbrance is limited to the assets, income, and revenues of the Board. 12
272+(b) The chairman chair of the Board or his or her representative designated to be a hearing 13
273+officer may conduct any hearing called by the board Board for the purpose of denial, suspension, 14
274+or revocation of a license or registration under this Chapter. 15
275+(c) The regulation of security system businesses shall be exclusive to the Board; however, 16
276+any city or county shall be permitted to require a security business operating within its 17
277+jurisdiction to register and to supply information regarding its license and may adopt an ordinance 18
278+to require users of electronic security systems to obtain revocable permits when alarm usage 19
279+involves automatic signal transmission to a law enforcement agency. 20
280+"§ 74D-5.1. Position of Director created. 21
281+The position of Director of the Alarm Security Systems Licensing Board is hereby created 22
282+within the Department of Public Safety. The Secretary of Public Safety shall appoint a person to 23
283+fill this full-time position. The Director's duties shall be to administer the directives contained in 24
284+this Chapter and the rules promulgated adopted by the Board to implement this Chapter and to 25
285+carry out the administrative duties incident to the functioning of the Board in order to actively 26
286+police the alarm systems security systems industry to insure ensure compliance with the law in 27
287+all aspects. The Director may issue a temporary grant or denial of a request for registration subject 28
288+to final action by the Board at its next regularly scheduled meeting. 29
289+"§ 74D-5.2. Investigative powers of the Secretary of Public Safety. 30
290+The Secretary of Public Safety shall have the power to investigate or cause to be investigated 31
291+any complaints, allegations, or suspicions of wrongdoing or violations of this Chapter involving 32
292+individuals unlicensed, licensed, or to be licensed, under this Chapter. Any investigation 33
293+conducted pursuant to this section is deemed confidential and is not subject to review under 34
294+G.S. 132-1 until the investigation is complete and a report is presented to the Board. However, 35
295+the report may be released to the licensee after the investigation is complete but before the report 36
296+is presented to the Board. 37
297+"§ 74D-6. Denial of a license or registration. 38
298+Upon a finding that the applicant meets the requirements for licensure or receipt of an 39
299+application for licensure or registration under this Chapter, G.S. 74D-8, the Board shall determine 40
300+whether the applicant shall receive the license or registration applied for. The grounds for denial 41
301+include:include all of the following: 42
302+(1) Commission of some act which, if committed by a registrant or licensee, 43
303+would be grounds for the suspension or revocation of a registration or license 44
304+under this Chapter;Chapter. 45
305+(2) Conviction of a crime involving fraud;the illegal use, carrying, or possession 46
306+of a firearm, felonious assault or an act of violence, felonious sexual offense, 47
307+felonious larceny, or felonious fraud. For purposes of this subdivision, 48
308+"conviction" means and includes the entry of a plea of guilty, plea of no 49
309+contest, or a verdict entered in open court by a judge or jury, including a prayer 50
310+for judgment continued, adjudication withheld, or equivalent. 51 General Assembly Of North Carolina Session 2025
311+DRH10407-NNf-61 Page 7
312+(3) Lack of good moral character or temperate habits. The following 1
313+misdemeanor convictions shall be prima facie evidence that the applicant does 2
314+not have good moral character or temperate habits: conviction by any local, 3
315+State, federal, or military court of any crime involving the illegal use, carrying, 4
316+or possession of a firearm; conviction of any crime involving the illegal use, 5
317+possession, sale, manufacture, distribution, or transportation of a controlled 6
318+substance, drug, narcotic, or alcoholic beverages; conviction of a crime 7
319+involving felonious assault or an act of violence; conviction of a crime 8
320+involving unlawful breaking or entering, burglary or larceny or of any offense 9
321+involving moral turpitude; larceny; conviction of a crime involving a sexual 10
322+offense; or a history of addiction to alcohol or a narcotic drug; provided that, 11
323+for purposes of this subsection subdivision, "conviction" means and includes 12
324+the entry of a plea of guilty, plea of no contest, or a verdict rendered in open 13
325+court by a judge or jury;jury, including a prayer for judgment continued, 14
326+adjudication withheld, or equivalent. 15
327+(4) Previous denial under this Chapter or previous revocation for cause;cause. 16
328+(5) Knowingly making any false statement or misrepresentation in an application 17
329+made to the Board for a license or registration. 18
330+(6) Being a registered sex offender in this State or any other state. 19
331+"§ 74D-7. Form of license; term; assignability; renewal; posting; branch offices; fees. 20
332+… 21
333+(c) No licensee shall engage in any business regulated by this Chapter under a name other 22
334+than the licensee licensee's name or names which appear on the certificate issued by the Board. 23
335+(d) Any branch office of an alarm in this State with a security systems business shall 24
336+obtain a branch office certificate. A separate certificate stating the location and licensed 25
337+qualifying agent shall be posted at all times in a conspicuous place in each branch office. Every 26
338+business covered under the provisions of this Chapter shall file in writing with the Board the 27
339+addresses of each of its branch offices. offices in this State. All licensees of with a branch office 28
340+shall notify the Board in writing before the establishment, closing, or changing of the location of 29
341+any branch office. A licensed qualifying agent may be responsible for more than one branch 30
342+office of an alarm systems business with the prior approval of the Board. office in this State. 31
343+Temporary approval may be granted by the Director, upon application of the qualifying agent, 32
344+for a period of time not to exceed 10 working 45 days after the adjournment of the next regularly 33
345+scheduled meeting of the Board unless the Board determines that the application should be 34
346+denied. 35
347+(e) The Board may charge the following fees, which must be expended, under the 36
348+direction of the Board, to defray the expense of administering this Chapter: 37
349+(1) A nonrefundable initial license application fee in an amount not to exceed one 38
350+hundred fifty dollars ($150.00).five hundred dollars ($500.00). 39
351+(2) A new or renewal license fee in an amount not to exceed five hundred dollars 40
352+($500.00).one thousand dollars ($1,000). 41
353+(3) A late license renewal fee to be paid in addition to the renewal fee due in an 42
354+amount not to exceed one hundred dollars ($100.00), five hundred dollars 43
355+($500.00) if the license has not been renewed on or before the expiration date 44
356+of the license. 45
357+(4) A new or renewal registration fee in an amount not to exceed fifty dollars 46
358+($50.00) one hundred dollars ($100.00) plus any fees charged to the board for 47
359+background checks by the State Bureau of Investigation. 48
360+(5) A fee for reregistration of an employee who changes employment to another 49
361+licensee, not to exceed ten dollars ($10.00).twenty-five dollars ($25.00). 50 General Assembly Of North Carolina Session 2025
362+Page 8 DRH10407-NNf-61
363+(6) A branch office certificate fee not to exceed one hundred fifty dollars 1
364+($150.00).three hundred dollars ($300.00). 2
365+(7) A fee not to exceed fifty dollars ($50.00) for each reconsideration of a license 3
366+or registration permit that has been filed or returned to the applicant for 4
367+correctable errors. 5
368+(8) A late registration fee, to be paid in addition to the registration renewal fee, 6
369+not to exceed twenty dollars ($20.00) forty dollars ($40.00) for an application 7
370+submitted no more than 30 days after the expiration of the registration permit. 8
371+A registration application submitted more than 30 days after the registration 9
372+has expired shall be registered as a new applicant. 10
373+"§ 74D-8. Registration of persons employed. 11
374+(a) (1) A licensee of an alarm a security systems business shall register with the 12
375+Board within 30 days after the employment begins, all of the following 13
376+licensee's employees described in subdivision (1a) of this subsection that are 14
377+within the State, unless in the discretion of the Director, the time period is 15
378+extended for good cause:cause. 16
379+(1a) The following employees shall be registered with the Board: 17
380+a. Any employee that has access to confidential any information 18
381+detailing the design, installation, or application of any location specific 19
382+electronic security system or that has access to any code, number, or 20
383+program that would allow the system to be modified, altered, or 21
384+circumvented. 22
385+b. Any employee who conducts personal sales in a private residence or 23
386+who installs or services an electronic a security system in a commercial 24
387+business establishment or a personal residence. 25
388+c. Any employee who remotely monitors a security system, including 26
389+cameras, unless the employee is registered as a security guard with a 27
390+licensed security guard and patrol company under Chapter 74C of the 28
391+General Statutes. 29
392+Employees engaged only in sales or marketing that does not involve any of 30
393+the above are not required to be registered. 31
394+(1a)(1b) To register an employee, a licensee shall submit to the Board as to the 32
395+employee: set(s) of classifiable fingerprints on standard F.B.I. applicant cards; 33
396+recent color photograph(s) of acceptable quality for identification; and 34
397+statements of any criminal records as deemed appropriate by the Board. 35
398+(2) Except during the period allowed for registration in subdivision (a)(1) of this 36
399+section, no alarm security systems business may employ any employee 37
400+required to be registered by this Chapter unless the employee's registration has 38
401+been approved by the Board as set forth in this section. 39
402+(3) A licensee may employ an applicant for registration as a probationary 40
403+employee for 20 consecutive days. Upon completion of the probationary 41
404+period and the desire of the licensee to hire the registration applicant as a 42
405+regular employee, the licensee shall register the employee, as described in this 43
406+subsection, with the Board within 30 days after the probationary employment 44
407+period ends unless the Director, in the Director's discretion, extends the time 45
408+period for good cause. Before a probationary employee engages in systems 46
409+services, the employee shall complete any training requirements and the 47
410+licensee shall conduct a criminal record check on the employee, as the Board 48
411+deems appropriate. The licensee shall submit a list of the probationary 49
412+employees to the Director on a monthly basis. The list shall include the name, 50
413+address, social security number, and dates of employment of the employees. 51 General Assembly Of North Carolina Session 2025
414+DRH10407-NNf-61 Page 9
415+… 1
416+"§ 74D-8.1. Apprenticeship registration permit. 2
417+(a) The Board may issue an apprenticeship registration permit to an applicant who is 16 3
418+or 17 years old and currently enrolled in high school if the applicant holds a valid drivers license 4
419+and submits at least three letters of recommendation stating that the applicant is of good moral 5
420+character as provided in G.S. 74D-2(d)(2). The letters of recommendation shall be from persons 6
421+who are not related to the individual, and at least one of the letters shall be from an official at the 7
422+school where the applicant is currently enrolled.applicant. 8
423+… 9
424+"§ 74D-9. Certificate of liability insurance required; form and approval; suspension for 10
425+noncompliance. 11
112426 … 12
113-(g) An alarm monitoring company located in another state and licensed by that state 13
114-which demonstrates to the Board's satisfaction that it does not conduct any business through a 14
115-personal representative present in this State, but which solicits and conducts business solely 15
116-through interstate communication facilities, such as telephone, the internet, and the United States 16
117-Postal Service, upon receipt by the Board of a certificate of good standing from the state of 17
118-licensure is not required to register employees pursuant to G.S. 74D-8. Out-of-state monitoring 18
119-companies not licensed in any state must be licensed by the Board and must register employees 19
120-pursuant to G.S. 74D-8. 20
121-(h) A security guard and patrol company licensed under Chapter 74C of the General 21
122-Statutes that remotely monitors access control, cameras, analytic capturing devices, systems 22
123-providing intelligence, or other imaging devices shall obtain a separate limited monitoring license 23
124-and may utilize the same qualifying agent for the limited license as utilized for its security guard 24
125-and patrol license and shall not be required to meet the requirements of G.S. 74D-2(d)(3) and (4) 25
126-or hold a low voltage electrical license. The qualifying agent must successfully complete a central 26
127-station monitoring operator course approved by the Board. 27
128-"§ 74D-2.1. Criminal background checks. 28
129-(a) Authorization. – Upon receipt of an application for a license or registration, the Board 29
130-shall conduct a background investigation to determine whether the applicant meets the 30
131-requirements for a license or registration as set out in G.S. 74D-2(d). The Department State 31
132-Bureau of Public Safety Investigation may provide a criminal record check to the Board for a 32
133-person who has applied for a new or renewal license or registration through the Board. The Board 33
134-shall provide to the Department of Public Safety, State Bureau of Investigation, along with the 34
135-request, the fingerprints of a new applicant, and the Department of Public Safety State Bureau of 35
136-Investigation shall provide a criminal record check based upon the applicant's fingerprints. The 36
137-Board may request a criminal record check from the Department of Public Safety State Bureau 37
138-of Investigation for a renewal applicant based upon the applicant's fingerprints in accordance 38
139-with policy adopted by the Board. The Board shall provide any additional information required 39
140-by the Department of Public Safety State Bureau of Investigation and a form signed by the 40
141-applicant consenting to the check of the criminal record and to the use of the fingerprints and 41
142-other identifying information required by the State or national repositories. The applicant's 42
143-fingerprints shall be forwarded to the State Bureau of Investigation for a search of the State's 43
144-criminal history record file, and the State Bureau of Investigation shall forward a set of the 44
145-fingerprints to the Federal Bureau of Investigation for a national criminal history check. The 45
146-Department of Public Safety State Bureau of Investigation may charge each applicant a fee to be 46
147-collected by the Board and transmitted to the State Bureau of Investigation for conducting the 47
148-checks of criminal history records authorized by this subsection. 48
149-The Board may require a new or renewal applicant to obtain a criminal record report from 49
150-one or more reporting services designated by the Board to provide criminal record reports. 50
151-Applicants are required to pay the designated reporting service for the cost of these reports. 51 General Assembly Of North Carolina Session 2025
152-Page 4 House Bill 897-First Edition
153-(b) Confidentiality. – The Except as necessary to support the denial of an application or 1
154-a disciplinary matter in a contested case, the Board shall keep all information obtained pursuant 2
155-to this section confidential in accordance with applicable State law and federal guidelines, and 3
156-the information shall not be a public record under Chapter 132 of the General Statutes. 4
157-"§ 74D-3. Exemptions. 5
158-The provisions of this Chapter shall not apply to:to the following: 6
159-(1) A person, firm, association or corporation that sells or manufactures alarm 7
160-security systems, unless the person, firm, association or corporation makes 8
161-personal solicitations at a residence or business to advise, design, or consult 9
162-on specific types and specific locations of alarm security system devices, 10
163-installs, services, monitors, or responds to alarm security systems at or from a 11
164-protected premises or a premises to be protected and thereby obtains 12
165-knowledge of specific application or location of the alarm security system. A 13
166-person licensed under this Chapter may hire a consultant to troubleshoot a 14
167-location or installation for a period of time not to exceed 48 hours in a 15
168-one-month period if the licensee submits a report to the Board within 30 days 16
169-from the date of the consultation designating the consultant as a temporary 17
170-consultant; 18
171-(2) Installation, servicing or responding to fire alarm systems or any alarm device 19
172-which is installed in a motor vehicle, aircraft or boat;boat. 20
173-(3) Installation or service of an alarm electronic security system on property 21
174-owned by or leased to the installer;installer. 22
175-(4) An alarm monitoring company located in another state which demonstrates to 23
176-the Board's satisfaction that it does not conduct any business through a 24
177-personal representative present in this State but which solicits and conducts 25
178-business solely through interstate communication facilities such as telephone 26
179-messages, earth satellite relay stations and the United States postal service; 27
180-and 28
181-(5) A person or business providing alarm systems services to a State agency or 29
182-local government if that person or business has been providing those services 30
183-to the State agency or local government for more than five years prior to the 31
184-effective date of this Chapter, and the State agency or local government joins 32
185-with the person or business in requesting the application of this exemption. 33
186-(6) Installation or service of a locking device that records entry and exit data and 34
187-does not transmit the data in real time to an on-site or off-site monitoring 35
188-location, provided the installer is licensed by the North Carolina Locksmith 36
189-Licensing Board. 37
190-(7) An entity through which a customer accesses marketing or advertising 38
191-material or installation instructions for a security system. 39
192-(b) A person licensed under this Chapter may utilize a consultant or manufacturer's 40
193-representative to troubleshoot a location or installation if accompanied by the licensee and the 41
194-licensee submits a report to the Board within 30 days from the date of the consultation designating 42
195-the consultant as a temporary consultant. 43
196-"§ 74D-4. Alarm Security Systems Licensing Board. 44
197-(a) The Alarm Security Systems Licensing Board is hereby established. 45
198-(b) The Board shall consist of seven members: the Secretary of Public Safety or his or 46
199-her designee; two persons appointed by the Governor, one of whom shall be licensed under this 47
200-Chapter and one of whom shall be a public member; two persons appointed by the General 48
201-Assembly upon the recommendation of the President Pro Tempore of the Senate in accordance 49
202-with G.S. 120-121, one of whom shall be licensed under this Chapter and one of whom shall be 50
203-a public member; and two persons appointed by the General Assembly upon the recommendation 51 General Assembly Of North Carolina Session 2025
204-House Bill 897-First Edition Page 5
205-of the Speaker of the House of Representatives in accordance with G.S. 120-121, one of whom 1
206-shall be licensed under this Chapter and one of whom shall be a public member. 2
207-(c) Each member shall be appointed for a term of three years and shall serve until a 3
208-successor is installed. No With the exception of the Secretary or his or her designee, no member 4
209-shall serve more than two complete three-year consecutive terms. The term of each member, 5
210-other than the Attorney General or his designee, who is serving on August 7, 1989, shall terminate 6
211-on June 30, 1989. Of the appointments made by the General Assembly upon the recommendation 7
212-of the President of the Senate to begin on July 1, 1989, one member shall be for a term of one 8
213-year and one member shall be for a term of three years. Of the appointments made by the General 9
214-Assembly upon the recommendation of the Speaker of the House of Representatives, one member 10
215-shall be appointed for a term of two years and one member shall be appointed for a term of three 11
216-years. Thereafter all terms shall be for three years. 12
217-… 13
218-(e) Board members who are also State officers or employees shall receive no per diem 14
219-compensation for serving on the Board, and shall only receive the travel allowances set forth in 15
220-G.S. 138-6. All other Board members shall receive reimbursement in accordance with 16
221-G.S. 93B-5(b) and, notwithstanding G.S. 93B-5(a), shall receive as compensation for their 17
222-services per diem not to exceed one hundred dollars ($100.00) for each day during which they 18
223-are engaged in the official business of the Board. The Board shall set the travel allowance and 19
224-per diem compensation of Board members who are not also State officers or employees. 20
225-(f) The Board shall elect a chairman chair and a vice-chairman vice-chair from its 21
226-membership by majority vote at the first meeting of its fiscal year. The vice-chairman vice-chair 22
227-shall serve as chairman chair of the screening committee and shall also serve as chairman chair 23
228-in the chairman's chair's absence. At no time shall both the positions of chairman chair and 24
229-vice-chairman vice-chair be held by either an industry representative or a nonindustry 25
230-representative. 26
231-(g) The Board shall meet at the call of the chairman chair or a majority of the members 27
232-of the Board. The Board shall adopt rules governing the call and conduct of its meetings. A 28
233-majority of the current Board membership constitutes a quorum. 29
234-"§ 74D-5. Powers of the Board. 30
235-(a) In addition to the powers conferred upon the Board elsewhere in this Chapter, the 31
236-Board shall have the power to:to do the following: 32
237-(1) Promulgate rules necessary to carry out and administer the provisions of this 33
238-Chapter including the authority to require the submission of reports and 34
239-information by licensees under this Chapter;Chapter. 35
240-(2) Determine minimum qualifications and establish minimum education, 36
241-experience, and training standards for applicants and licensees applicants, 37
242-licensees, and registrants under this Chapter;Chapter. 38
243-(3) Conduct investigations regarding alleged violations and make evaluations as 39
244-may be necessary to determine if unlicensed individuals or entities are in 40
245-violation of this Chapter and licensees and registrants under this Chapter are 41
246-complying with the provisions of this Chapter;Chapter. The Board shall issue 42
247-cease and desist orders, in writing, for violations of this Chapter with the 43
248-concurrence of the Secretary of Public Safety. 44
249-(4) Adopt and amend bylaws, consistent with law, for its internal management 45
250-and control;control. 46
251-(5) Investigate and approve individual applicants to be licensed or registered 47
252-according to this Chapter;Chapter. 48
253-(6) Deny, suspend, or revoke any license issued or to be issued under this Chapter 49
254-to any applicant or licensee applicant, licensee, or registrant who fails to 50
255-satisfy the requirements of this Chapter or the rules established by the Board. 51 General Assembly Of North Carolina Session 2025
256-Page 6 House Bill 897-First Edition
257-The denial, suspension, or revocation of such license or registration shall be 1
258-in accordance with Chapter 150B of this General Statutes of North 2
259-Carolina;Carolina. 3
260-(7) Issue subpoenas to compel the attendance of witnesses and the production of 4
261-pertinent books, accounts, records, and documents. The district court shall 5
262-have the power to impose punishment pursuant to G.S. 5A-21 et seq. for acts 6
263-occurring in matters pending before the Board which would constitute civil 7
264-contempt if the acts occurred in an action pending in court; andcourt. 8
265-(8) Contract for services as necessary to carry out the functions of the Board. 9
266-(9) Acquire, hold, rent, encumber, alienate, and otherwise deal with real property 10
267-in the same manner as a private person or corporation, subject only to approval 11
268-of the Governor and the Council of State. Collateral pledged by the Board for 12
269-an encumbrance is limited to the assets, income, and revenues of the Board. 13
270-(b) The chairman chair of the Board or his or her representative designated to be a hearing 14
271-officer may conduct any hearing called by the board Board for the purpose of denial, suspension, 15
272-or revocation of a license or registration under this Chapter. 16
273-(c) The regulation of security system businesses shall be exclusive to the Board; however, 17
274-any city or county shall be permitted to require a security business operating within its 18
275-jurisdiction to register and to supply information regarding its license and may adopt an ordinance 19
276-to require users of electronic security systems to obtain revocable permits when alarm usage 20
277-involves automatic signal transmission to a law enforcement agency. 21
278-"§ 74D-5.1. Position of Director created. 22
279-The position of Director of the Alarm Security Systems Licensing Board is hereby created 23
280-within the Department of Public Safety. The Secretary of Public Safety shall appoint a person to 24
281-fill this full-time position. The Director's duties shall be to administer the directives contained in 25
282-this Chapter and the rules promulgated adopted by the Board to implement this Chapter and to 26
283-carry out the administrative duties incident to the functioning of the Board in order to actively 27
284-police the alarm systems security systems industry to insure ensure compliance with the law in 28
285-all aspects. The Director may issue a temporary grant or denial of a request for registration subject 29
286-to final action by the Board at its next regularly scheduled meeting. 30
287-"§ 74D-5.2. Investigative powers of the Secretary of Public Safety. 31
288-The Secretary of Public Safety shall have the power to investigate or cause to be investigated 32
289-any complaints, allegations, or suspicions of wrongdoing or violations of this Chapter involving 33
290-individuals unlicensed, licensed, or to be licensed, under this Chapter. Any investigation 34
291-conducted pursuant to this section is deemed confidential and is not subject to review under 35
292-G.S. 132-1 until the investigation is complete and a report is presented to the Board. However, 36
293-the report may be released to the licensee after the investigation is complete but before the report 37
294-is presented to the Board. 38
295-"§ 74D-6. Denial of a license or registration. 39
296-Upon a finding that the applicant meets the requirements for licensure or receipt of an 40
297-application for licensure or registration under this Chapter, G.S. 74D-8, the Board shall determine 41
298-whether the applicant shall receive the license or registration applied for. The grounds for denial 42
299-include:include all of the following: 43
300-(1) Commission of some act which, if committed by a registrant or licensee, 44
301-would be grounds for the suspension or revocation of a registration or license 45
302-under this Chapter;Chapter. 46
303-(2) Conviction of a crime involving fraud;the illegal use, carrying, or possession 47
304-of a firearm, felonious assault or an act of violence, felonious sexual offense, 48
305-felonious larceny, or felonious fraud. For purposes of this subdivision, 49
306-"conviction" means and includes the entry of a plea of guilty, plea of no 50 General Assembly Of North Carolina Session 2025
307-House Bill 897-First Edition Page 7
308-contest, or a verdict entered in open court by a judge or jury, including a prayer 1
309-for judgment continued, adjudication withheld, or equivalent. 2
310-(3) Lack of good moral character or temperate habits. The following 3
311-misdemeanor convictions shall be prima facie evidence that the applicant does 4
312-not have good moral character or temperate habits: conviction by any local, 5
313-State, federal, or military court of any crime involving the illegal use, carrying, 6
314-or possession of a firearm; conviction of any crime involving the illegal use, 7
315-possession, sale, manufacture, distribution, or transportation of a controlled 8
316-substance, drug, narcotic, or alcoholic beverages; conviction of a crime 9
317-involving felonious assault or an act of violence; conviction of a crime 10
318-involving unlawful breaking or entering, burglary or larceny or of any offense 11
319-involving moral turpitude; larceny; conviction of a crime involving a sexual 12
320-offense; or a history of addiction to alcohol or a narcotic drug; provided that, 13
321-for purposes of this subsection subdivision, "conviction" means and includes 14
322-the entry of a plea of guilty, plea of no contest, or a verdict rendered in open 15
323-court by a judge or jury;jury, including a prayer for judgment continued, 16
324-adjudication withheld, or equivalent. 17
325-(4) Previous denial under this Chapter or previous revocation for cause;cause. 18
326-(5) Knowingly making any false statement or misrepresentation in an application 19
327-made to the Board for a license or registration. 20
328-(6) Being a registered sex offender in this State or any other state. 21
329-"§ 74D-7. Form of license; term; assignability; renewal; posting; branch offices; fees. 22
330-… 23
331-(c) No licensee shall engage in any business regulated by this Chapter under a name other 24
332-than the licensee licensee's name or names which appear on the certificate issued by the Board. 25
333-(d) Any branch office of an alarm in this State with a security systems business shall 26
334-obtain a branch office certificate. A separate certificate stating the location and licensed 27
335-qualifying agent shall be posted at all times in a conspicuous place in each branch office. Every 28
336-business covered under the provisions of this Chapter shall file in writing with the Board the 29
337-addresses of each of its branch offices. offices in this State. All licensees of with a branch office 30
338-shall notify the Board in writing before the establishment, closing, or changing of the location of 31
339-any branch office. A licensed qualifying agent may be responsible for more than one branch 32
340-office of an alarm systems business with the prior approval of the Board. office in this State. 33
341-Temporary approval may be granted by the Director, upon application of the qualifying agent, 34
342-for a period of time not to exceed 10 working 45 days after the adjournment of the next regularly 35
343-scheduled meeting of the Board unless the Board determines that the application should be 36
344-denied. 37
345-(e) The Board may charge the following fees, which must be expended, under the 38
346-direction of the Board, to defray the expense of administering this Chapter: 39
347-(1) A nonrefundable initial license application fee in an amount not to exceed one 40
348-hundred fifty dollars ($150.00).five hundred dollars ($500.00). 41
349-(2) A new or renewal license fee in an amount not to exceed five hundred dollars 42
350-($500.00).one thousand dollars ($1,000). 43
351-(3) A late license renewal fee to be paid in addition to the renewal fee due in an 44
352-amount not to exceed one hundred dollars ($100.00), five hundred dollars 45
353-($500.00) if the license has not been renewed on or before the expiration date 46
354-of the license. 47
355-(4) A new or renewal registration fee in an amount not to exceed fifty dollars 48
356-($50.00) one hundred dollars ($100.00) plus any fees charged to the board for 49
357-background checks by the State Bureau of Investigation. 50 General Assembly Of North Carolina Session 2025
358-Page 8 House Bill 897-First Edition
359-(5) A fee for reregistration of an employee who changes employment to another 1
360-licensee, not to exceed ten dollars ($10.00).twenty-five dollars ($25.00). 2
361-(6) A branch office certificate fee not to exceed one hundred fifty dollars 3
362-($150.00).three hundred dollars ($300.00). 4
363-(7) A fee not to exceed fifty dollars ($50.00) for each reconsideration of a license 5
364-or registration permit that has been filed or returned to the applicant for 6
365-correctable errors. 7
366-(8) A late registration fee, to be paid in addition to the registration renewal fee, 8
367-not to exceed twenty dollars ($20.00) forty dollars ($40.00) for an application 9
368-submitted no more than 30 days after the expiration of the registration permit. 10
369-A registration application submitted more than 30 days after the registration 11
370-has expired shall be registered as a new applicant. 12
371-"§ 74D-8. Registration of persons employed. 13
372-(a) (1) A licensee of an alarm a security systems business shall register with the 14
373-Board within 30 days after the employment begins, all of the following 15
374-licensee's employees described in subdivision (1a) of this subsection that are 16
375-within the State, unless in the discretion of the Director, the time period is 17
376-extended for good cause:cause. 18
377-(1a) The following employees shall be registered with the Board: 19
378-a. Any employee that has access to confidential any information 20
379-detailing the design, installation, or application of any location specific 21
380-electronic security system or that has access to any code, number, or 22
381-program that would allow the system to be modified, altered, or 23
382-circumvented. 24
383-b. Any employee who conducts personal sales in a private residence or 25
384-who installs or services an electronic a security system in a commercial 26
385-business establishment or a personal residence. 27
386-c. Any employee who remotely monitors a security system, including 28
387-cameras, unless the employee is registered as a security guard with a 29
388-licensed security guard and patrol company under Chapter 74C of the 30
389-General Statutes. 31
390-Employees engaged only in sales or marketing that does not involve any of 32
391-the above are not required to be registered. 33
392-(1a)(1b) To register an employee, a licensee shall submit to the Board as to the 34
393-employee: set(s) of classifiable fingerprints on standard F.B.I. applicant cards; 35
394-recent color photograph(s) of acceptable quality for identification; and 36
395-statements of any criminal records as deemed appropriate by the Board. 37
396-(2) Except during the period allowed for registration in subdivision (a)(1) of this 38
397-section, no alarm security systems business may employ any employee 39
398-required to be registered by this Chapter unless the employee's registration has 40
399-been approved by the Board as set forth in this section. 41
400-(3) A licensee may employ an applicant for registration as a probationary 42
401-employee for 20 consecutive days. Upon completion of the probationary 43
402-period and the desire of the licensee to hire the registration applicant as a 44
403-regular employee, the licensee shall register the employee, as described in this 45
404-subsection, with the Board within 30 days after the probationary employment 46
405-period ends unless the Director, in the Director's discretion, extends the time 47
406-period for good cause. Before a probationary employee engages in systems 48
407-services, the employee shall complete any training requirements and the 49
408-licensee shall conduct a criminal record check on the employee, as the Board 50
409-deems appropriate. The licensee shall submit a list of the probationary 51 General Assembly Of North Carolina Session 2025
410-House Bill 897-First Edition Page 9
411-employees to the Director on a monthly basis. The list shall include the name, 1
412-address, social security number, and dates of employment of the employees. 2
413-… 3
414-"§ 74D-8.1. Apprenticeship registration permit. 4
415-(a) The Board may issue an apprenticeship registration permit to an applicant who is 16 5
416-or 17 years old and currently enrolled in high school if the applicant holds a valid drivers license 6
417-and submits at least three letters of recommendation stating that the applicant is of good moral 7
418-character as provided in G.S. 74D-2(d)(2). The letters of recommendation shall be from persons 8
419-who are not related to the individual, and at least one of the letters shall be from an official at the 9
420-school where the applicant is currently enrolled.applicant. 10
427+(d) No license shall be issued under this act unless the applicant files with the Board 13
428+evidence of a policy of liability insurance which policy must provide for the following minimum 14
429+coverage: fifty two hundred fifty thousand dollars ($50,000) ($250,000) because of bodily injury 15
430+or death of one person as a result of the negligent act or acts of the principal insured or his agents 16
431+operating in the course and scope of his employment; subject to said limit for one person, one 17
432+five hundred thousand dollars ($100,000) ($500,000) because of bodily injury or death of two or 18
433+more persons as the result of the negligent act or acts of the principal insured or his agent 19
434+operating in the course and scope of his or her agency; twenty one hundred thousand dollars 20
435+($20,000) ($100,000) because of injury to or destruction of property of others as the result of the 21
436+negligent act or acts of the principal insured or his agents operating in the course and scope of 22
437+his or her agency. 23
438+… 24
439+"§ 74D-10. Suspension or revocation of licenses and registrations; appeal. 25
440+(a) The Board may, after notice and an opportunity for hearing, suspend or revoke a 26
441+license or registration issued under this Chapter if it is determined that the licensee or registrant 27
442+has: 28
443+… 29
444+(3) Violated any rule promulgated adopted by the Board pursuant to the authority 30
445+contained in this Chapter. 31
446+(4) Been convicted of any crime involving moral turpitude or any other crime 32
447+involving violence or the illegal use, carrying, or possession of a dangerous 33
448+weapon.felony as set forth in G.S. 74D-6(2) or any crime as set forth in 34
449+G.S. 74D-6(3). 35
450+… 36
451+(7) Engaged in or permitted any employee to engage in any alarm security 37
452+systems business when not lawfully in possession of a valid license 38
453+registration issued under the provisions of this Chapter. 39
454+(8) Committed an unlawful breaking or entering, burglary, larceny, sexual 40
455+offense, trespass, fraud, assault, battery, or kidnapping. 41
456+(9) Committed any other act which is a ground for the denial of an application for 42
457+a license or registration under this Chapter. 43
458+(10) Failed to maintain the certificate of liability insurance required by this 44
459+Chapter. 45
460+… 46
461+(15) Engaged in the alarm security systems profession under a name other than the 47
462+name under which the license was obtained under the provisions of this 48
463+Chapter. 49
464+… 50 General Assembly Of North Carolina Session 2025
465+Page 10 DRH10407-NNf-61
466+(19) Engaged in conduct that constitutes dereliction of duty or otherwise deceives, 1
467+defrauds, or harms the public in the course of professional activities or 2
468+services.services, including fraudulently claiming a change in business 3
469+ownership, fraudulently claiming dissolution of a competing business, 4
470+fraudulently claiming to be a representative of the consumer's current service 5
471+provider, misrepresentation of employer, or misrepresenting an upgrade of 6
472+equipment as a sales tactic. 7
473+(20) Demonstrated a lack of financial responsibility. 8
474+… 9
475+"§ 74D-11. Enforcement. 10
421476 … 11
422-"§ 74D-9. Certificate of liability insurance required; form and approval; suspension for 12
423-noncompliance. 13
424-… 14
425-(d) No license shall be issued under this act unless the applicant files with the Board 15
426-evidence of a policy of liability insurance which policy must provide for the following minimum 16
427-coverage: fifty two hundred fifty thousand dollars ($50,000) ($250,000) because of bodily injury 17
428-or death of one person as a result of the negligent act or acts of the principal insured or his agents 18
429-operating in the course and scope of his employment; subject to said limit for one person, one 19
430-five hundred thousand dollars ($100,000) ($500,000) because of bodily injury or death of two or 20
431-more persons as the result of the negligent act or acts of the principal insured or his agent 21
432-operating in the course and scope of his or her agency; twenty one hundred thousand dollars 22
433-($20,000) ($100,000) because of injury to or destruction of property of others as the result of the 23
434-negligent act or acts of the principal insured or his agents operating in the course and scope of 24
435-his or her agency. 25
436-… 26
437-"§ 74D-10. Suspension or revocation of licenses and registrations; appeal. 27
438-(a) The Board may, after notice and an opportunity for hearing, suspend or revoke a 28
439-license or registration issued under this Chapter if it is determined that the licensee or registrant 29
440-has: 30
441-… 31
442-(3) Violated any rule promulgated adopted by the Board pursuant to the authority 32
443-contained in this Chapter. 33
444-(4) Been convicted of any crime involving moral turpitude or any other crime 34
445-involving violence or the illegal use, carrying, or possession of a dangerous 35
446-weapon.felony as set forth in G.S. 74D-6(2) or any crime as set forth in 36
447-G.S. 74D-6(3). 37
448-… 38
449-(7) Engaged in or permitted any employee to engage in any alarm security 39
450-systems business when not lawfully in possession of a valid license 40
451-registration issued under the provisions of this Chapter. 41
452-(8) Committed an unlawful breaking or entering, burglary, larceny, sexual 42
453-offense, trespass, fraud, assault, battery, or kidnapping. 43
454-(9) Committed any other act which is a ground for the denial of an application for 44
455-a license or registration under this Chapter. 45
456-(10) Failed to maintain the certificate of liability insurance required by this 46
457-Chapter. 47
458-… 48
459-(15) Engaged in the alarm security systems profession under a name other than the 49
460-name under which the license was obtained under the provisions of this 50
461-Chapter. 51 General Assembly Of North Carolina Session 2025
462-Page 10 House Bill 897-First Edition
463-… 1
464-(19) Engaged in conduct that constitutes dereliction of duty or otherwise deceives, 2
465-defrauds, or harms the public in the course of professional activities or 3
466-services.services, including fraudulently claiming a change in business 4
467-ownership, fraudulently claiming dissolution of a competing business, 5
468-fraudulently claiming to be a representative of the consumer's current service 6
469-provider, misrepresentation of employer, or misrepresenting an upgrade of 7
470-equipment as a sales tactic. 8
471-(20) Demonstrated a lack of financial responsibility. 9
472-… 10
473-"§ 74D-11. Enforcement. 11
474-… 12
475-(b) Any person, firm, association, corporation, or department or division of a firm, 13
476-association or corporation, or their agents and employees violating any of the provisions of this 14
477-Chapter or knowingly violating any rule promulgated to implement this Chapter shall be guilty 15
478-of a Class 1 misdemeanor. The Attorney General, or his or her representative, shall have 16
479-concurrent jurisdiction with the district attorneys of this State to prosecute violations of this 17
480-Chapter. 18
481-(c) The regulation of alarm systems businesses shall be exclusive to the Board; however, 19
482-any city or county shall be permitted to require an alarm systems business operating within its 20
483-jurisdiction to register and to supply information regarding its license, and may adopt an 21
484-ordinance to require users of alarm systems to obtain revocable permits when alarm usage 22
485-involves automatic signal transmission to a law-enforcement agency. 23
486-(d) In lieu of revocation of suspension of a license or registration under G.S. 74D-10, a 24
487-civil penalty of not more than two thousand dollars ($2,000) per violation may be assessed by 25
488-the Board against any person that violates any provision of this Chapter or any rule of the Board 26
489-adopted pursuant to this Chapter. In determining the amount of any penalty, the Board shall 27
490-consider the degree and extent of harm caused by the violation. The clear proceeds of all penalties 28
491-collected under this section shall be remitted to the Civil Penalty and Forfeiture Fund in 29
492-accordance with G.S. 115C-457.2. 30
493-(e) Proceedings for the assessment of civil penalties shall be governed by Chapter 150B 31
494-of the General Statutes. If the person assessed a penalty fails to pay the penalty to the Board, the 32
495-Board may institute an action in the superior court of the county in which the person resides or 33
496-has his or her principal place of business to recover the unpaid amount of the penalty. An action 34
497-to recover a civil penalty under this section shall not relieve any party from any other penalty 35
498-prescribed by law. 36
499-(f) The sale, installation, or service of an alarm a security system by an unlicensed or 37
500-unregistered person shall constitute a threat to the public safety, and any contract for the sale, 38
501-installation, or service of an alarm a security system shall be deemed void and unenforceable. 39
502-… 40
503-"§ 74D-13. Transfer of funds. 41
504-All fees collected pursuant to Chapter 74C of the General Statutes from alarm systems 42
505-businesses which have not been expended upon January 1, 1984, shall be transferred to the Board 43
506-by the Private Protective Services Board for the purpose of defraying the expenses of 44
507-administering this act. 45
508-"§ 74D-14. Proof of licensure to maintain or commence action. 46
509-An alarm A security systems business may not maintain any action in any court of the State 47
510-for the collection of compensation for performing an act for which a license or registration is 48
511-required by this Chapter without alleging and proving that the alarm security systems business is 49
512-appropriately licensed and the employee or agent of the alarm security systems business is 50
513-appropriately registered upon entering into a contract with the consumer. An alarm A security 51 General Assembly Of North Carolina Session 2025
514-House Bill 897-First Edition Page 11
515-systems installation, maintenance, or monitoring contract entered into with a consumer shall be 1
516-void if the consumer confirms through records maintained by the Board that the alarm security 2
517-systems business is not properly licensed or the consumer establishes through records maintained 3
518-by the Board that the person enticing the consumer to enter into the contract is not properly 4
519-registered by the Board. The sale, installation, or service of an alarm A security system by an 5
520-unlicensed entity or unregistered employee shall be deemed an unfair and deceptive trade practice 6
521-and shall be actionable under Chapter 75 of the General Statutes. 7
522-…." 8
523-SECTION 1.(b) Article 2 of Chapter 74D of the General Statutes reads as rewritten: 9
524-"Article 2. 10
525-"Alarm Security Systems Education Fund. 11
526-"§ 74D-30. Alarm Security Systems Education Fund created; payment to Fund; 12
527-management; use of funds. 13
528-(a) There is hereby created and established a special fund to be known as the "Alarm 14
529-"Security Systems Education Fund" (hereinafter Fund) which shall be set aside and maintained 15
530-in the office of the State Treasurer. The Fund shall be used in the manner provided in this Article 16
531-for the education of licensees and registrants. 17
532-… 18
533-(c) In addition to the fees provided for elsewhere in this Chapter, the Board shall charge 19
534-the following fees which shall be deposited into the Fund: 20
535-(1) On July 1, 1985, the Board shall charge every licensee on that date a fee of 21
536-fifty dollars ($50.00); 22
537-(2) The Board shall charge each new applicant for a license fifty dollars ($50.00), 23
538-provided that for purposes of this Article a new applicant is hereby defined as 24
539-an applicant who did not possess a license on July 1, 1985; andfifty dollars 25
540-($50.00). 26
541-(3) The Board is authorized to charge each licensee an additional amount, not to 27
542-exceed fifty dollars ($50.00), on July 1 of any year in which the balance of the 28
543-Fund is less than twenty-five thousand dollars ($25,000). 29
544-(d) The State Treasurer shall invest and reinvest the moneys in the Fund in a manner 30
545-provided by law. The Board in its discretion, may use the Fund for any of the following purposes: 31
546-(1) To advance education and research in the alarm security systems field for the 32
547-benefit of those licensed under the provisions of this Chapter and for the 33
548-improvement of the industry,industry. 34
549-(2) To underwrite educational seminars, training centers and other educational 35
550-projects for the use and benefit generally of licensees, andlicensees. 36
551-(3) To sponsor, contract for and to underwrite any and all additional educational 37
552-training and research projects of a similar nature having to do with the 38
553-advancement of the alarm security systems field in North Carolina." 39
554-SECTION 1.(c) The Alarm Systems Licensing Board may adopt rules to implement 40
555-the provisions of this Part. 41
556-SECTION 1.(d) This Part becomes effective October 1, 2025. 42
557- 43
558-PART II. PRIVATE PROTECTIVE SERVICES BOA RD LAWS AMENDMENTS 44
559-SECTION 2.(a) G.S. 74C-2 reads as rewritten: 45
560-"§ 74C-2. Licenses required. 46
561-(a) No private person, firm, association, or corporation shall engage in, perform any 47
562-services as, or in any way represent or hold itself out as engaging in a private protective services 48
563-profession or activity in this State without having first complied with the provisions of this 49
564-Chapter. Compliance with the licensing requirements of this Chapter shall not relieve any person, 50
565-firm, association or corporation from compliance with any other licensing law. 51 General Assembly Of North Carolina Session 2025
566-Page 12 House Bill 897-First Edition
477+(b) Any person, firm, association, corporation, or department or division of a firm, 12
478+association or corporation, or their agents and employees violating any of the provisions of this 13
479+Chapter or knowingly violating any rule promulgated to implement this Chapter shall be guilty 14
480+of a Class 1 misdemeanor. The Attorney General, or his or her representative, shall have 15
481+concurrent jurisdiction with the district attorneys of this State to prosecute violations of this 16
482+Chapter. 17
483+(c) The regulation of alarm systems businesses shall be exclusive to the Board; however, 18
484+any city or county shall be permitted to require an alarm systems business operating within its 19
485+jurisdiction to register and to supply information regarding its license, and may adopt an 20
486+ordinance to require users of alarm systems to obtain revocable permits when alarm usage 21
487+involves automatic signal transmission to a law-enforcement agency. 22
488+(d) In lieu of revocation of suspension of a license or registration under G.S. 74D-10, a 23
489+civil penalty of not more than two thousand dollars ($2,000) per violation may be assessed by 24
490+the Board against any person that violates any provision of this Chapter or any rule of the Board 25
491+adopted pursuant to this Chapter. In determining the amount of any penalty, the Board shall 26
492+consider the degree and extent of harm caused by the violation. The clear proceeds of all penalties 27
493+collected under this section shall be remitted to the Civil Penalty and Forfeiture Fund in 28
494+accordance with G.S. 115C-457.2. 29
495+(e) Proceedings for the assessment of civil penalties shall be governed by Chapter 150B 30
496+of the General Statutes. If the person assessed a penalty fails to pay the penalty to the Board, the 31
497+Board may institute an action in the superior court of the county in which the person resides or 32
498+has his or her principal place of business to recover the unpaid amount of the penalty. An action 33
499+to recover a civil penalty under this section shall not relieve any party from any other penalty 34
500+prescribed by law. 35
501+(f) The sale, installation, or service of an alarm a security system by an unlicensed or 36
502+unregistered person shall constitute a threat to the public safety, and any contract for the sale, 37
503+installation, or service of an alarm a security system shall be deemed void and unenforceable. 38
504+… 39
505+"§ 74D-13. Transfer of funds. 40
506+All fees collected pursuant to Chapter 74C of the General Statutes from alarm systems 41
507+businesses which have not been expended upon January 1, 1984, shall be transferred to the Board 42
508+by the Private Protective Services Board for the purpose of defraying the expenses of 43
509+administering this act. 44
510+"§ 74D-14. Proof of licensure to maintain or commence action. 45
511+An alarm A security systems business may not maintain any action in any court of the State 46
512+for the collection of compensation for performing an act for which a license or registration is 47
513+required by this Chapter without alleging and proving that the alarm security systems business is 48
514+appropriately licensed and the employee or agent of the alarm security systems business is 49
515+appropriately registered upon entering into a contract with the consumer. An alarm A security 50
516+systems installation, maintenance, or monitoring contract entered into with a consumer shall be 51 General Assembly Of North Carolina Session 2025
517+DRH10407-NNf-61 Page 11
518+void if the consumer confirms through records maintained by the Board that the alarm security 1
519+systems business is not properly licensed or the consumer establishes through records maintained 2
520+by the Board that the person enticing the consumer to enter into the contract is not properly 3
521+registered by the Board. The sale, installation, or service of an alarm A security system by an 4
522+unlicensed entity or unregistered employee shall be deemed an unfair and deceptive trade practice 5
523+and shall be actionable under Chapter 75 of the General Statutes. 6
524+…." 7
525+SECTION 1.(b) Article 2 of Chapter 74D of the General Statutes reads as rewritten: 8
526+"Article 2. 9
527+"Alarm Security Systems Education Fund. 10
528+"§ 74D-30. Alarm Security Systems Education Fund created; payment to Fund; 11
529+management; use of funds. 12
530+(a) There is hereby created and established a special fund to be known as the "Alarm 13
531+"Security Systems Education Fund" (hereinafter Fund) which shall be set aside and maintained 14
532+in the office of the State Treasurer. The Fund shall be used in the manner provided in this Article 15
533+for the education of licensees and registrants. 16
534+… 17
535+(c) In addition to the fees provided for elsewhere in this Chapter, the Board shall charge 18
536+the following fees which shall be deposited into the Fund: 19
537+(1) On July 1, 1985, the Board shall charge every licensee on that date a fee of 20
538+fifty dollars ($50.00); 21
539+(2) The Board shall charge each new applicant for a license fifty dollars ($50.00), 22
540+provided that for purposes of this Article a new applicant is hereby defined as 23
541+an applicant who did not possess a license on July 1, 1985; andfifty dollars 24
542+($50.00). 25
543+(3) The Board is authorized to charge each licensee an additional amount, not to 26
544+exceed fifty dollars ($50.00), on July 1 of any year in which the balance of the 27
545+Fund is less than twenty-five thousand dollars ($25,000). 28
546+(d) The State Treasurer shall invest and reinvest the moneys in the Fund in a manner 29
547+provided by law. The Board in its discretion, may use the Fund for any of the following purposes: 30
548+(1) To advance education and research in the alarm security systems field for the 31
549+benefit of those licensed under the provisions of this Chapter and for the 32
550+improvement of the industry,industry. 33
551+(2) To underwrite educational seminars, training centers and other educational 34
552+projects for the use and benefit generally of licensees, andlicensees. 35
553+(3) To sponsor, contract for and to underwrite any and all additional educational 36
554+training and research projects of a similar nature having to do with the 37
555+advancement of the alarm security systems field in North Carolina." 38
556+SECTION 1.(c) The Alarm Systems Licensing Board may adopt rules to implement 39
557+the provisions of this Part. 40
558+SECTION 1.(d) This Part becomes effective October 1, 2025. 41
559+ 42
560+PART II. PRIVATE PROTECTIVE SERVICES BOARD LAWS AMENDMENTS 43
561+SECTION 2.(a) G.S. 74C-2 reads as rewritten: 44
562+"§ 74C-2. Licenses required. 45
563+(a) No private person, firm, association, or corporation shall engage in, perform any 46
564+services as, or in any way represent or hold itself out as engaging in a private protective services 47
565+profession or activity in this State without having first complied with the provisions of this 48
566+Chapter. Compliance with the licensing requirements of this Chapter shall not relieve any person, 49
567+firm, association or corporation from compliance with any other licensing law. 50 General Assembly Of North Carolina Session 2025
568+Page 12 DRH10407-NNf-61
567569 (b) An individual in possession of a valid private protective services license or private 1
568570 detective trainee permit issued prior to October 1, 1989, shall not be subject to forfeiture of such 2
569571 license by virtue of this Chapter. Such license shall, however, remain subject to suspension, 3
570572 denial, or revocation in the same manner in which all other licenses issued pursuant to this 4
571573 Chapter are subject to suspension, denial, or revocation. 5
572574 (c) In its discretion, the Private Protective Services Board may issue a trainee permit in 6
573575 lieu of a private investigator investigator, polygraph examiner, electronic countermeasures, or 7
574576 digital forensic examiner license provided that the applicant works under the direct supervision 8
575577 of a licensee." 9
576578 SECTION 2.(b) G.S. 74C-3 reads as rewritten: 10
577579 "§ 74C-3. Private protective services profession defined. 11
578580 (a) As used in this Chapter, the term "private protective services profession" means and 12
579581 includes the following: 13
580582 … 14
581583 (6) Security guard and patrol profession. – Any person, firm, association or 15
582584 corporation that provides a security guard on a contractual basis for another 16
583585 person, firm, association, or corporation corporation, or unit of government 17
584586 for a fee or other valuable consideration and performs one or more of the 18
585587 following functions: 19
586588 a. Prevention or detection of intrusion, entry, larceny, vandalism, abuse, 20
587589 fire or trespass on private property. 21
588590 b. Prevention, observation, or detection of any unauthorized activity on 22
589591 public or private property. 23
590592 c. Protection of patrons and persons lawfully authorized to be on the 24
591593 premises or being escorted between premises of the person, firm, 25
592594 association, or corporation corporation, or unit of government that 26
593595 entered into the contract for security services. 27
594596 d. Control, regulation, or direction of the flow or movement of the public, 28
595597 whether by vehicle or otherwise, only to the extent and for the time 29
596598 directly and specifically required to assure the protection of properties. 30
597599 … 31
598600 (7) Guard dog service profession. – Any person, firm, association or corporation 32
599601 which for a fee or other valuable consideration contracts with another person, 33
600602 firm, association, or corporation corporation, law enforcement agency, or unit 34
601603 of government to place, lease, rent, or sell a trained dog for the purpose of 35
602604 protecting lives or property. 36
603605 …." 37
604606 SECTION 2.(c) G.S. 74C-9 reads as rewritten: 38
605607 "§ 74C-9. Form of license; term; renewal; posting; branch offices; not assignable; late 39
606608 renewal fee. 40
607609 … 41
608610 (e) The Board is authorized to charge reasonable application and license fees as follows: 42
609611 … 43
610612 (17) An application for approval of a continuing legal education course not to 44
611613 exceed one hundred dollars ($100.00). 45
612614 Except as provided in G.S. 74C-13(k), all fees collected pursuant to this section shall be 46
613615 expended, under the direction of the Board, for the purpose of defraying the expenses of 47
614616 administering this Chapter. 48
615617 … 49
616618 (h) Trainee permits shall not be issued to applicants that qualify for a private detective 50
617619 investigator license. 51 General Assembly Of North Carolina Session 2025
618-House Bill 897-First Edition Page 13
620+DRH10407-NNf-61 Page 13
619621 (i) A licensed private detective investigator, polygraph examiner, electronic 1
620622 countermeasures professional, or digital forensic examiner may supervise no more than five 2
621623 trainees at any given time." 3
622624 SECTION 2.(d) G.S. 74C-11 reads as rewritten: 4
623625 "§ 74C-11. Probationary employees and registration of regular employees; unarmed 5
624626 security guard guards and unarmed armored car guards required to have 6
625627 registration card. 7
626628 (a) All licensees A security guard and patrol company or armored car company may 8
627629 employ unarmed security guards as probationary employees for 20 consecutive calendar days. 9
628630 Upon completion of the probationary period and the desire of the licensee security guard and 10
629631 patrol company or armored car company to hire an unarmed security guard as a regular employee, 11
630632 the licensee security guard and patrol company or armored car company shall register the 12
631633 employee who will be engaged in providing private protective services covered by this Chapter 13
632634 with the Board within 30 days after the probationary employment period ends, unless the 14
633635 Director, in the Director's discretion, extends the time period, for good cause. Before a 15
634636 probationary employee engages in private protective services, the employee shall complete any 16
635637 training requirements, and the licensee shall conduct a criminal record check on the employee, 17
636638 as the Board deems appropriate. The licensee security guard and patrol company or armored car 18
637639 company shall submit a list of the probationary employees to the Director on a monthly basis. 19
638640 The list shall include the name, address, social security number, and dates of employment of the 20
639641 employees. 21
640642 To register an employee after the probationary period ends, a licensee security guard and 22
641643 patrol company or armored car company must give the Board the following: 23
642644 (1) Set(s) of classifiable fingerprints on standard F.B.I. applicant cards; recent 24
643645 photograph(s) of acceptable quality for identification; and 25
644646 (2) Statements of any criminal records obtained from the appropriate authority in 26
645647 each area where the employee has resided within the immediately 48 27
646648 preceding months. 28
647649 (b) A security guard and patrol company or armored car company may not employ an 29
648650 unarmed security guard in a regular position unless the guard has a registration card issued under 30
649651 subsection (d) of this section. A person engaged in a private protective services profession section 31
650652 and may not employ an armed security guard unless the guard has a firearm registration permit 32
651653 issued under G.S. 74C-13. 33
652654 (c) The Director shall be notified in writing of the termination of any regular employee 34
653655 registered under subsection (a) of this section within 10 days after the termination. 35
654656 (d) An unarmed security guard shall make application to the Director for an unarmed 36
655657 registration card which the Director shall issue to the applicant after receipt of the information 37
656658 required to be submitted by the applicant's employer pursuant to subsection (a) of this section, 38
657659 and after meeting any additional requirements which the Board, in its discretion, deems to be 39
658660 necessary. The unarmed security guard registration card shall be in the form of a pocket card 40
659661 designed by the Board, shall be issued in the name of the applicant, and may have the applicant's 41
660662 photograph affixed to the card. The unarmed security guard registration card shall expire one 42
661663 year after its date of issuance and shall be renewed every year. The Board may require all 43
662664 registration holders to complete continuing education courses approved by the Board before 44
663665 renewal of their registrations. If an unarmed registered security guard is terminated by a licensee 45
664666 security guard and patrol company or armored car company and changes employment to another 46
665667 security guard and patrol company, company or armored car company, the security guard's 47
666668 registration card shall remain valid, provided the security guard pays the unarmed guard 48
667669 registration transfer fee to the Board and a new unarmed security guard registration card is issued. 49
668670 An unarmed security guard whose transfer registration application and transfer fee have been 50 General Assembly Of North Carolina Session 2025
669-Page 14 House Bill 897-First Edition
671+Page 14 DRH10407-NNf-61
670672 sent to the Board may work with a copy of the transfer application until the registration card is 1
671673 issued. 2
672674 (e) Notwithstanding the provisions of this section, a licensee security guard and patrol 3
673675 company or armored car company may employ a person properly registered or licensed as an 4
674676 unarmed security guard in another state for a period not to exceed 10 days in any given month; 5
675677 provided the licensee, security guard and patrol company or armored car company, prior to 6
676678 employing the unarmed security guard, submits to the Director the name, address, and social 7
677679 security number of the unarmed guard and the name of the state of current registration or 8
678680 licensing, and the Director approves the employment of the unarmed guard in this State. 9
679681 (f) Repealed by Session Laws 2005-211, s. 1, effective July 20, 2005. 10
680682 (g) Notwithstanding the provisions of this section, during a disaster declaration or state 11
681683 of emergency declared by the Governor pursuant to Article 1A of Chapter 166A of the General 12
682684 Statutes, a licensee security guard and patrol company or armored car company may employ a 13
683685 person properly registered or licensed as an armed security guard in another state, provided that 14
684686 the licensee, security guard and patrol company or armored car company prior to deploying the 15
685687 armed security guard in this State, submit to the Director all of the following: 16
686688 (1) The name, address, and social security number of the armed security guard. 17
687689 (2) The name of the state of current registration or licensing of the armed security 18
688690 guard. 19
689691 (3) Proof of completion of the 4-hour training course mandated by 20
690692 G.S. 74C-13(h)(1)a. and 14B NCAC 116 .0807(c)(1), administered by a North 21
691693 Carolina certified trainer. 22
692694 (4) Qualification by a firearms instructor certified by the North Carolina Private 23
693695 Protective Services Board, based on the firearm the armed security guard 24
694696 intends to carry, meeting the qualification requirements approved by the 25
695697 Board and the Secretary of Public Safety for each firearm. 26
696698 (h) The Director may approve the employment of the armed security guard in this State, 27
697699 if the person meets all of the requirements of subsection (g) of this section. Qualification under 28
698700 subsection (g) of this section shall be valid for a 12-month period. The duration of the deployment 29
699701 of an armed security guard from another state by a licensee security guard and patrol company 30
700702 or armored car company shall not exceed the length of the disaster declaration or state of 31
701703 emergency." 32
702704 SECTION 2.(e) G.S. 74C-12 reads as rewritten: 33
703705 "§ 74C-12. Denial, suspension, or revocation of license, registration, or permit; duty to 34
704706 report criminal arrests. 35
705707 (a) The Board may, after compliance with Chapter 150B of the General Statutes, deny, 36
706708 suspend or revoke a license, certification, registration or permit issued under this Chapter if it is 37
707709 determined that the applicant, licensee, trainee, registrant or permit holder has done any of the 38
708710 following acts: 39
709711 (1) Made any false statement or given any false information in connection with 40
710712 any application for a license, registration, certification, or permit permit, or 41
711713 audit or for the renewal or reinstatement of a license, certification, registration 42
712714 or permit. 43
713715 … 44
714716 (9) Committed an unlawful larceny, burglary, breaking or entering, assault, 45
715717 battery, sexual offense, kidnapping, forgery, or violated any State or federal 46
716718 firearms law. 47
717719 … 48
718720 (27) Worn, carried, or accepted any badge or shield purporting to indicate that the 49
719721 person is a law enforcement officer while licensed or registered under the 50
720722 provisions of this Chapter as a private investigator.Chapter. 51 General Assembly Of North Carolina Session 2025
721-House Bill 897-First Edition Page 15
723+DRH10407-NNf-61 Page 15
722724 …." 1
723725 SECTION 2.(f) G.S. 74C-13 reads as rewritten: 2
724726 "§ 74C-13. Armed licensee or registered employee required to have firearm registration 3
725727 permit; firearms training. 4
726728 … 5
727729 (b) It shall be unlawful for any person, firm, association, or corporation and its agents 6
728730 and employees to hire an armed security guard or an armed private investigator licensee and 7
729731 knowingly authorize or permit the armed security guard or armed private investigator licensee to 8
730732 carry a firearm during the course of performing his or her duties as an armed security guard or 9
731733 an armed private investigator if the Board has not issued him or her a firearm registration permit 10
732734 under this section, or if the person, firm, association, or corporation permits an armed security 11
733735 guard or an armed private investigator licensee to carry a firearm during the course of performing 12
734736 his or her duties whose firearm registration permit has been suspended, revoked, or has otherwise 13
735737 expired: 14
736738 (1) A firearm registration permit grants authority to the armed security guard 15
737739 or armed private investigator, guard or licensee, while in the performance 16
738740 of his or her duties or traveling directly to and from work, to carry any 17
739741 firearm approved by the Board and not otherwise prohibited by law. The 18
740742 use of any firearm not approved by the Board is prohibited. 19
741743 (2) All firearms carried by authorized armed security guards or armed 20
742744 licensees in the performance of their duties shall be owned or leased by 21
743745 the employer. Personally owned firearms not leased to the employer shall 22
744746 not be carried by an armed security guard or armed licensee in the 23
745747 performance of his or her duties. 24
746748 (c) The applicant for a firearm registration permit shall submit an application to the Board 25
747749 on a form provided by the Board. 26
748750 (d) Each firearm registration permit issued under this section to an armed security guard 27
749751 shall be in the form of a pocket card designed by the Board and shall identify the contract security 28
750752 company, company, armored car company, or proprietary security organization by whom the 29
751753 holder of the firearm registration permit is employed. A firearm registration permit issued to an 30
752754 armed security guard expires one year after the date of its issuance and must be renewed annually 31
753755 unless the permit holder's employment terminates before the expiration of the permit. The Board 32
754756 may require all permit holders to complete continuing education courses approved by the Board 33
755757 before renewal of their permits. 34
756758 (d1) Each firearm registration permit issued under this section to an armed private 35
757759 investigator licensee shall be in the form of a pocket card designed by the Board and shall identify 36
758760 the name of the armed private investigator licensee. While carrying a firearm and engaged in 37
759761 private protective services, the armed private investigator licensee shall carry the firearms 38
760762 registration permit issued by the Board, together with valid identification, and shall disclose to 39
761763 any law enforcement officer that the person holds a valid permit and is carrying a firearm, 40
762764 whether concealed or in plain view, when approached or addressed by the law enforcement 41
763765 officer, and shall display both the permit and the proper identification upon the request of a law 42
764766 enforcement officer. A private investigator licensee's firearm registration permit expires one year 43
765767 from the date of issuance and shall be renewed annually. The Board may require all permit 44
766768 holders to complete continuing education courses approved by the Board before renewal of their 45
767769 permits. 46
768770 (d2) A proprietary security organization that employs an armed security guard shall submit 47
769771 an application to the Board for a license on a form, provided by the Board. A proprietary security 48
770772 organization shall renew its license every two years. 49
771773 (e) If an armed security guard terminates his or her employment with the contract security 50
772774 company company, armored car company, or proprietary security organization, the firearm 51 General Assembly Of North Carolina Session 2025
773-Page 16 House Bill 897-First Edition
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774776 registration permit expires and must be returned to the Board within 15 working days of the date 1
775777 of termination of the employee. 2
776778 (f) A contract security company company, armored car company, or proprietary security 3
777779 organization shall be allowed to employ an individual for 30 days as an armed security guard 4
778780 pending completion of the firearms training required by this Chapter, if the contract security 5
779781 company company, armored car company, or proprietary security organization obtains prior 6
780782 approval from the Director. The Board and the Secretary of Public Safety shall provide by rule 7
781783 the procedure by which an armed private investigator, licensee, a contract security company, 8
782784 armored car company, or a proprietary security organization applicant may be issued a temporary 9
783785 firearm registration permit by the Director of the Board pending a determination by the Board of 10
784786 whether to grant or deny an applicant a firearm registration permit. 11
785787 (g) The Board may suspend, revoke, or deny a firearm registration permit if the holder or 12
786788 applicant has been convicted of any crime set forth in G.S. 74C-8(d) or for violation of this 13
787789 section or rules promulgated by the Board to implement this section. The Director may 14
788790 summarily suspend a firearm registration permit pending resolution of charges for any of the 15
789791 offenses set forth in G.S. 74C-12 or any crime set forth in G.S. 74C-8(d). 16
790792 (h) The Board and the Secretary of Public Safety shall establish a firearms training 17
791793 program for licensees and registered employees to be conducted by agencies and institutions 18
792794 approved by the Board and the Secretary of Public Safety. The Board and the Secretary of Public 19
793795 Safety may approve training programs conducted by a contract security company company, 20
794796 armored car company, and the security department of a proprietary security organization, if the 21
795797 contract security company company, armored car company, or security department of a 22
796798 proprietary security organization offers the courses listed in subdivision (1) of this subsection 23
797799 and if the instructors of the training program are certified trainers approved by the Board and the 24
798800 Secretary of Public Safety. 25
799801 (1) The basic training course approved by the Board and the Secretary of Public 26
800802 Safety shall consist of a minimum of four hours of classroom training which 27
801803 shall include all of the following: 28
802804 (a) Legal limitations on the use of firearms and on the powers and 29
803805 authority of an armed security guard.guards and licensees. 30
804806 (b) Familiarity with this section. 31
805807 (c) Range firing and procedure and firearm safety and maintenance. 32
806808 (d) Any other topics of armed security guard firearms training curriculum 33
807809 which the Board deems necessary. 34
808810 (2) An applicant for a firearm registration permit must fire a minimum qualifying 35
809811 score to be determined by the Board and the Secretary of Public Safety on any 36
810812 approved target course approved by the Board and the Secretary of Public 37
811813 Safety. 38
812814 (3) A firearms registrant must complete a refresher course and shall requalify on 39
813815 the prescribed target course prior to the renewal of his or her firearm 40
814816 registration permit. 41
815817 (4) The Board and the Secretary of Public Safety shall have the authority to 42
816818 promulgate all rules necessary to administer the provisions of this section 43
817819 concerning the training requirements of this section. 44
818820 (i) The Board may not issue a firearm registration permit to an applicant until the 45
819821 applicant's employer submits evidence satisfactory to the Board that the applicant: 46
820822 (1) Has satisfactorily completed an approved training course. 47
821823 (2) Meets all the qualifications established by this section and the rules 48
822824 promulgated to implement this section. 49
823825 (3) Is mentally and physically capable of handling a firearm within the guidelines 50
824826 set forth by the Board and the Secretary of Public Safety. 51 General Assembly Of North Carolina Session 2025
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826828 (j) The Board and the Secretary of Public Safety are authorized to prescribe reasonable 1
827829 rules to implement this section, including rules for periodic requalification with the firearm and 2
828830 for the maintenance of records relating to persons issued a firearm registration permit by the 3
829831 Board. 4
830832 (k) All fees collected pursuant to G.S. 74C-9(e)(7) and (8) shall be expended, under the 5
831833 direction of the Board, for the purpose of defraying the expense of administering the firearms 6
832834 provisions of this Chapter. 7
833835 (l) The Board and the Secretary of Public Safety shall establish a training program for 8
834836 certified trainers to be conducted by agencies and institutions approved by the Board and the 9
835837 Secretary of Public Safety. The Board or the Secretary of Public Safety shall have the authority 10
836838 to promulgate all rules necessary to administer the provisions of this subsection. 11
837839 (1) The Board and the Secretary of Public Safety shall also establish renewal 12
838840 requirements for certified trainers. The Board may require all certified trainers 13
839841 to complete continuing education courses approved by the Board before 14
840842 renewal of their certifications. 15
841843 (2) No certified firearms trainer shall certify a licensee or registrant unless the 16
842844 licensee or registrant has successfully completed the firearms training 17
843845 requirements set out above in subsection (h) of this section. 18
844846 (m) The Board and the Secretary of Public Safety shall establish a training program for 19
845847 unarmed security guards to be conducted by agencies and institutions approved by the Board and 20
846848 the Secretary of Public Safety. The Board and the Secretary of Public Safety shall have the 21
847849 authority to promulgate all rules necessary to administer the provisions of this subsection. 22
848850 (n) A private investigator licensee shall be permitted to carry a concealed weapon during 23
849851 the performance of his or her duties as a private investigator private protective services duties 24
850852 upon: (i) obtaining a concealed weapon handgun permit issued pursuant to G.S. 14-415.11; (ii) 25
851853 successfully completing the firearms training course approved by the Board and the Secretary of 26
852854 Public Safety; and (iii) having a notation affixed to the face of the firearms registration card 27
853855 designating that the armed private investigator licensee is allowed to carry a concealed weapon. 28
854856 handgun. A private investigator licensee who does not carry a weapon handgun during the course 29
855857 of his or her duties as a private investigator private protective services duties but who wishes to 30
856858 carry a concealed weapon handgun while not engaged in private investigative private protective 31
857859 service duties shall be permitted to do so upon completion of the requirements set forth in Article 32
858860 54B of Chapter 14 of the General Statutes. 33
859861 (o) The Board shall not knowingly issue a firearm registration permit to an individual 34
860862 who is prohibited by federal or State law from possessing a firearm. 35
861863 (p) Notwithstanding subsection (n) of this section, a licensee who is authorized pursuant 36
862864 to section 926B or 926C of the United States Code to carry a concealed handgun and is in 37
863865 compliance with the requirements of those sections is exempt from obtaining the permit 38
864866 described in G.S. 14-415.11." 39
865867 SECTION 2.(g) The Private Protective Services Board may adopt rules to implement 40
866868 the provisions of this Part. 41
867869 SECTION 2.(h) This Part becomes effective October 1, 2025. 42
868870 43
869871 PART III. ENHANCE BACKGROUND CHECK ABILITIES OF PRIVATE 44
870872 PROTECTIVE SERVICES BOARD AND ALARM SYSTEMS LICENSING BOARD 45
871873 SECTION 3.(a) G.S. 14-415.12(a) reads as rewritten: 46
872874 "§ 14-415.12. Criteria to qualify for the issuance of a permit. 47
873875 (a) The sheriff shall issue a permit to an applicant if the applicant qualifies under the 48
874876 following criteria: 49
875877 (1) The applicant is a citizen of the United States or has been lawfully admitted 50
876878 for permanent residence as defined in 8 U.S.C. § 1101(a)(20), and has been a 51 General Assembly Of North Carolina Session 2025
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878880 resident of the State 30 days or longer immediately preceding the filing of the 1
879881 application. 2
880882 (2) The applicant is 21 years of age or older. 3
881883 (3) The applicant does not suffer from a physical or mental infirmity that prevents 4
882884 the safe handling of a handgun. 5
883885 (4) The applicant has successfully completed an approved firearms safety and 6
884886 training course which involves the actual firing of handguns and instruction 7
885887 in the laws of this State governing the carrying of a concealed handgun and 8
886888 the use of deadly force. The North Carolina Criminal Justice Education and 9
887889 Training Standards Commission shall prepare and publish general guidelines 10
888890 for courses and qualifications of instructors which would satisfy the 11
889891 requirements of this subdivision. An approved course shall be any course 12
890892 which satisfies the requirements of this subdivision and is certified or 13
891893 sponsored by any of the following: 14
892894 a. The North Carolina Criminal Justice Education and Training 15
893895 Standards Commission. 16
894896 b. The National Rifle Association. 17
895897 b1. The United States Concealed Carry Association. 18
896898 c. A law enforcement agency, college, private or public institution or 19
897899 organization, or firearms training school, taught by instructors 20
898900 certified by the North Carolina Criminal Justice Education and 21
899901 Training Standards Commission, the United States Concealed Carry 22
900902 Association, or the National Rifle Association. 23
901903 d. The North Carolina Private Protective Services Board and Secretary 24
902904 of Public Safety pursuant to G.S. 74C-13. 25
903905 Every instructor of an approved course shall file a copy of the firearms course 26
904906 description, outline, and proof of certification annually, or upon modification 27
905907 of the course if more frequently, with the North Carolina Criminal Justice 28
906908 Education and Training Standards Commission." 29
907909 SECTION 3.(b) G.S. 15A-151(a) reads as rewritten: 30
908910 "§ 15A-151. Confidential agency files; exceptions to expunction. 31
909911 (a) The Administrative Office of the Courts shall maintain a confidential file for 32
910912 expungements containing the petitions granted under this Article and the names of those people 33
911913 for whom it received a notice under G.S. 15A-150. The information contained in the file may be 34
912914 disclosed only as follows: 35
913915 … 36
914916 (10) Upon request of the North Carolina Private Protective Services Board or the 37
915917 North Carolina Alarm Systems Licensing Board, if the criminal record was 38
916918 expunged under this Chapter for licensure or registration purposes only." 39
917919 SECTION 3.(c) G.S. 93B-8.1 reads as rewritten: 40
918920 "§ 93B-8.1. Use of criminal history records. 41
919921 … 42
920922 (d) This section does not apply to the North Carolina Criminal Justice Education and 43
921923 Training Standards Commission and Commission, the North Carolina Sheriff's Education and 44
922924 Training Standards Commission. Commission, and the North Carolina Private Protective 45
923925 Services Board, and the North Carolina Alarm Systems Licensing Board." 46
924926 SECTION 3.(d) The Alarm Systems Licensing Board and the Private Protective 47
925927 Services Board may adopt rules to implement the provisions of this Part. 48
926928 SECTION 3.(e) This Part becomes effective October 1, 2025. 49
927929 50
928930 PART IV. EFFECTIVE DATE 51 General Assembly Of North Carolina Session 2025
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930932 SECTION 4. Except as otherwise provided, this act is effective when it becomes 1
931933 law. 2