10/20/10

DropZone Security: Licenses, We Don't Need No Stinking Licenses. We're a "Contract Agency", Not a "Security Agency".

Gryphen posted information on his blog, Immoral Minority that demonstrates the owner of The Drop Zone did not have a business license. This does not come as a surprise to me because I have reported a lack of business licenses to the mayor of the Kenai Borough a couple years ago and then to the state and no one cared. I guess nothing has changed. I spent some time last night going over the statutes that regulate the security business.
I have assumed previously that the “security guards” who handcuffed Mr. Hopfinger were licensed by the state of Alaska, especially after viewing a picture of them working in the capacity of bounty hunters. Of course I should know better than to assume anything in Alaska. I also assumed that an attorney who had worked as a magistrate, judge and borough attorney would know to check credentials before hiring a security crew. Do these thugs even have licenses as security guards? According to the Alaska Dispatch the DPS said Drop Zone is not licensed as a security agent, therefore according to the statutes below it should not be possible for an employee to get a license as a "security guard". For that to happen the DPS would have had to ignore their own regulations and requirements. I know that could also have happened. From the statutes below there appears to be a requirement for a license from the DPS to be a security agency as well as a business license for them to be in operation. Since this business has been around for quite a while it seems hard to believe the DPS did not know about them. There are many parts of the statues regulating security guards the DropZone violated even if they were licensed.

The primary activity code 561612 indicates the business is primarily for providing security and security patrol services. The line of business is "Administrative, Support, Waste Management and Remediation Services". It sounds like they provide secretarial services and collect garbage. What would they be remediating? Remediation services are generally companies that clean toxins up. Weird. Does the Department of Commerce look at the business licenses before they issue them? There is no mention on the license of a retail business, guess that is why they only deal in cash. This looks like deception on the part of Bill Fulton.

From Alaska Dispatch:

On Tuesday, Fulton told Alaska Dispatch he is not a security guard and that Drop Zone is not a security guard agency, which is why neither he nor his employees are licensed by the state. He said the company is instead a "contract agency" and that he and his people are considered "security agents," not guards.

By definition a company that provides security guards or even bodyguards is a contract agency, they all are. He thinks that by changing the terminology from "security guard agency" to "contract agency" that provides security services using "security agents" instead of "security guards" he does not have to be licensed and follow the laws.  That makes about as much sense as a medical doctor changing his title to health care agent and practicing unlicensed.

Well Bill then why is the code 561612 on your expired business license? Someone must have been given the idea you were going to be a security agency. There is no mention of a contract agency on the business license. It does not seem there is any such category for security in Alaska.

The Department of Public Safety Security Guard page provides links to requirements and regulations.


Let’s go over some of the state regs for this line of work:

Sec. 18.65.400. License as security guard.
A person may not be employed as a security guard or security guard agency until the person has obtained a license from the commissioner of public safety under AS 18.65.400 - 18.65.490.

Sec. 18.65.410. Applications.

(a) Application for a license as a security guard must be made on forms provided by the commissioner. The application must require the furnishing of information reasonably required by the commissioner to carry out the provisions of AS 18.65.400 - 18.65.490, including classifiable fingerprints and the fees required under AS 12.62.160 for criminal justice information under AS 12.62 and a national criminal history record check under AS 12.62.400 to determine if the applicant has a criminal record. The application must be accompanied by a nonrefundable application fee of $50 for a security guard and $200 for a security guard agency.

(b) Upon request, the commissioner shall provide a social security number provided under (a) of this section to the child support services agency created in AS 25.27.010 , or the child support enforcement agency of another state, for child support purposes authorized under law.

Sec. 18.65.420. Bonding and insurance.

As a condition to issuance of a license, the applicant or the applicant's employer must furnish a bond or proof of a policy of insurance to protect the state and its residents from damages arising out of the acts of the licensee.

Proof of insurance is required for a license to be issued. I don't see how insurance would have been obtained by a business without a license.

Sec. 18.65.430. Duration of license.

A security guard license issued under AS 18.65.400 - 18.65.490 is valid for a period of two years and may be renewed for additional two-year terms. A renewal fee of $50 shall be paid for each renewal.

Sec. 18.65.440. Revocation of license.

A security guard license issued under AS 18.65.400 - 18.65.490 is subject to revocation in accordance with AS 44.62 (Administrative Procedure Act) for the following reasons:

(1) false statements in an application issued under AS 18.65.400 - 18.65.490;

(2) violation of a provision of AS 18.65.400 - 18.65.490 or a regulation adopted under AS 18.65.450 ;

(3) conviction of a felony or a crime involving moral turpitude while licensed;

(4) knowing impersonation of a law enforcement officer; or

(5) knowingly continuing the employment of an individual as a security guard who has been convicted of a felony or a crime involving moral turpitude, or who has impersonated a law enforcement officer while employed by the licensee.

Is there any penalty for impersonating a security guard? There are penalties for working as a bodyguard without being sanctioned by the DPS.

Sec. 18.65.450. Regulations.

The commissioner shall adopt regulations necessary to implement AS 18.65.400 - 18.65.490, including provisions specifying the amount of bond or insurance required and the types of uniforms, badges, and insignia that may be used.

Sec. 18.65.460. Exceptions to licensure.

An employer is not required to seek licensure for the employer's employees who provide unarmed plant security on that employer's premises.

Sec. 18.65.470. Firearms training.

Security guards licensed under AS 18.65.400 - 18.65.490 may not be armed with a firearm for the purpose of protecting property until they have completed firearms training acceptable to the commissioner.

Did any of them have guns on them?

Sec. 18.65.480. Penalty.

A violation of a provision of AS 18.65.400 - 18.65.490 or a regulation adopted under AS 18.65.450 is a misdemeanor and upon conviction is punishable by imprisonment for not more than 60 days, or by a fine of not more than $1,000, or by both.

Sec. 18.65.490. Definitions.

In AS 18.65.400 - 18.65.490,

(1) "commissioner" means the commissioner of public safety;

(2) "security guard" means a person in the business of being a private watchman, providing patrol services, or providing other services designed to prevent the theft, misappropriation, or concealment of goods, money, or valuable documents;

The actions of the Drop Zone employees at the "town meeting" are not defined by the parameters of security guard actions according to this statute.

(3) "security guard agency" means a person in the business of furnishing for hire private watchmen, patrol services, or other services designed to prevent the theft, misappropriation, or concealment of goods, money, or valuable documents.

Article 06. BODYGUARDS
Sec. 18.65.500. Use of armed bodyguards.

A person who, in this state, hires another person to guard a person in this state with arms or deadly weapons, or a person who comes into this state armed with deadly weapons for the purpose of guarding a person, without a written permit from the commissioner of public safety, is guilty of a misdemeanor and upon conviction is punishable by imprisonment for not more than 60 days, or by a fine of not more than $1,000, or by both.

The role they played at the "town meeting" was more along the lines of bodyguards. Did they have weapons? It seems the definition of a bodyguard in Alaska includes the use of arms or deadly weapons.

13 AAC 60.010. Agency license qualifications

(a) In order to be eligible to receive a license as a security guard agency, each applicant or each partner of a partnership and the qualified agent employed by an agency must be

(1) a United States citizen or resident alien with work permit;

(2) repealed 12/21/2002;

(3) at least 18 years of age;

(4) neither addicted to nor dependent on alcohol, narcotics, or other drugs;

(5) not suffering from any psychopathic condition or mental illness impairing the powers of memory, reason, judgment or perception; and

Clearly there were reasoning and judgement issues. The main malady was most likely militia wingnut mentality, immaturity, incompetence and inexperience fueled by suggestions from the Miller camp.

(6) an individual without a conviction, within 10 years before the date of application, for any crime classified as a felony in this state or another jurisdiction at the time the crime was committed, unless a full pardon has been granted.

(b) All applicant agencies must possess a valid Alaska business license in addition to any other corporate or municipally required license or registration.

We know they did not have a valid business license and since that is required to obtain a license as a security agent something is wrong.


(c) Corporate officers and persons with more than 20 percent financial interest in the agency must not have been convicted of a felony within 10 years of application, unless a full pardon has been granted.

(d) Applicants must meet insurance or bond requirements specified in 13 AAC 60.120.

(e) Applicants under (a) of this section must meet the requirements specified in 13 AAC

13 AAC 60.100. Uniforms and equipment
(a) The word "security" must be clearly visible on all uniforms. The word "security" may be displayed on a cloth or metal badge, shoulder patch, or name tag.

(b) The agency name must be clearly visible on all uniforms.

(c) Patrol vehicles must be clearly marked with the agency name and the designation "security."

(d) A security guard agency may issue its own company identification card to its employees. The company identification card may not contain any indication that the holder or the agency is licensed by the State of Alaska.

(e) A licensee authorized to carry a firearm must be in company uniform while on duty and carrying the firearm.

(f) A licensee authorized to carry a firearm may not conceal the firearm on the licensee's person unless the licensee holds a valid concealed handgun permit issued by this state, another state, or a political subdivision of another state.

Not only were the employees of the Drop Zone not wearing proper attire, they probably had no identification. Mr. Hopfinder asked them for some and did not get any.

13 AAC 60.110. Training required
(a) All security guard applicants, before issuance of a temporary permit or submission of an application to the department, must have received at least eight hours of general preassignment training relating to their duties and responsibilities as a guard.

(b) All security guards are required to complete satisfactorily at least 40 hours of inservice training within 180 days after employment. Training must include, but need not be limited to

Did they seem like they had any training?

 (1) law of arrest;

(2) law of search and seizure;

(3) duties and responsibilities to the employer and client;

(4) fire prevention;

(5) first aid; and

(6) patrol techniques.

(c) All security guards must pass an annual refresher course of at least eight hours on the topics in (b) of this section. Failure to pass the refresher course may be grounds for revocation of a security guard license.

(d) Repealed 12/21/2002.

(e) Repealed 12/21/2002.

(f) Firearms training required under 13 AAC 60.085(2) may only be administered by

(1) a person certified as a qualified firearms trainer by a federal, military, state, county, or municipal law enforcement agency; or

(2) an employee of a security guard agency who has certification from a nationally recognized organization attesting to his qualifications as an instructor.

(g) Renewal applications must contain a certification stating that the required training has been successfully completed.

13 AAC 60.120. Insurance and bond requirements

(a) Each applicant for a security guard license and each applicant for a security guard agency license must file with the department a certificate of insurance or bond evidencing comprehensive liability coverage for death, injury, false arrest, detention or imprisonment, malicious prosecution, libel, slander, defamation of character and violation of right to privacy in the minimum amount of $100,000 per person and $200,000 per occurrence. Each applicant must also file a certificate of property damage insurance or bond in the amount of $100,000 per occurrence. The certificate must provide that the insurance or bond may not be modified or cancelled unless 30 days' notice of cancellation has been given to the department. Failure to maintain insurance or bond is grounds for revocation of a security guard license or a security guard agency license.

(b) If required insurance or bond is provided by an employer, a certificate of proof must be filed with each employee's application for license. If a licensed security guard is no longer covered by employer-provided insurance or bond,

(1) the employer shall immediately notify the department in writing; if non-eligibility for employer-provided insurance or bond or employee termination is due to a violation of law that would be cause for license revocation, this information must be included in the notification required by this paragraph; and

(2) the security guard shall return the license identification card to the department within 30 days after termination of coverage, unless the security guard is covered by personal insurance or bond that satisfies the requirements in (a) of this section; an individual who is required to return a license identification card under this paragraph may re-obtain the license identification card from the department upon submission of proof of insurance or bond that satisfies the requirements in (a) of this section.
 
13 AAC 60.140. Records and reports

(a) A complete security guard employee list for the previous six months shall be submitted to the department by each agency no later than March 31st and September 30th of each year. The employee report will be a confidential document. Falsification of the employee report may be sufficient cause for revocation of the agency license.

(b) A licensed security guard shall report any change of employer to the department within five days after the change, unless the change of employer occurs as a consequence of a change in the ownership of the security guard agency.

(c) Each agency shall maintain an up-to-date record of all agency-owned firearms stored or issued to security guards. If the agency allows the use of personally owned firearms, the same records shall be maintained for these weapons.

(1) The firearm record must include make, model, caliber, serial number and to whom issued or by whom used.

(2) Firearm records must be available for inspection by members of the department at any reasonable time.
Since the business was not licensed and did not follow the statutes for a security business or security guards I doubt the "security guards" have licenses or Drop Zone had a license as a security agent. If they do this is a major DPS fail.

13 AAC 60.010. Agency license qualifications

(a) In order to be eligible to receive a license as a security guard agency, each applicant or each partner of a partnership and the qualified agent employed by an agency must be

(1) a United States citizen or resident alien with work permit;

(2) repealed 12/21/2002;

(3) at least 18 years of age;

(4) neither addicted to nor dependent on alcohol, narcotics, or other drugs;

(5) not suffering from any psychopathic condition or mental illness impairing the powers of memory, reason, judgment or perception; and

(6) an individual without a conviction, within 10 years before the date of application, for any crime classified as a felony in this state or another jurisdiction at the time the crime was committed, unless a full pardon has been granted.

(b) All applicant agencies must possess a valid Alaska business license in addition to any other corporate or municipally required license or registration.

So, the business license was a requirement for the security agent license. He needed a business license and and a security agent license from DPS.

(c) Corporate officers and persons with more than 20 percent financial interest in the agency must not have been convicted of a felony within 10 years of application, unless a full pardon has been granted.

(d) Applicants must meet insurance or bond requirements specified in 13 AAC 60.120.

(e) Applicants under (a) of this section must meet the requirements specified in 13 AAC 60.110.

(b) A renewal application must be received by the department at least 30 days before expiration of the license to assure the processing and return of the renewed license before expiration.

(c) The following items must accompany the renewal application:

(1) a copy of the agency bond or proof of insurance;

(2) a non-refundable renewal application fee of $50;

(3) a copy of the agency's valid business license issued under AS 43.70.

1 comment:

Anonymous said...

In addition at www.palingates.blogspot.com they have taken screen shots of conversations between militia members. This is a HUGE story and needs to go viral.