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House Bill 63 was passed in Virginia earlier this month, and it includes the repeal of a surety bond private security businesses could opt to use. The bill and bond repeal take effect on July 1, 2018.
What surety bond is being repealed?
The Virginia Department of Criminal Justice Services requires those providing private security services to become licensed. The Department offers seventeen different types of security services licenses, including:
- Private security services business
- Personal protection specialist
- Armed security officer
- Private investigator
While many of these are individual licenses, private security services businesses are businesses that offer the services of any of the license classifications. HB 63 applies to business licenses, not individual licenses, and to certified private security services training schools.
Before HB 63’s passage, private security services business licensees could submit a surety bond in lieu of submitting proof of liability insurance coverage. HB 63 is removing that option, meaning licensees now need liability insurance. Check with the Department to ensure you obtain coverage in the proper amount.
If you maintained this bond previously, cancel the bond and obtain the required liability insurance. Failing to obtain proper insurance could result in fines of up to $2,500 per day, and the Department could suspend or revoke your license.
What else does HB 63 do?
HB 63 is not only a surety bond repeal. It also eliminates an experience requirement for private security business’ compliance agents. Compliance agents are individuals designated to ensure the business’s compliance with all state laws that apply to their license. Starting in July, compliance agents will no longer need to have either:
- Three years’ managerial experience at a private security services business or law enforcement agency
- Five years’ experience at a private security services business or law enforcement agency
If you have more questions about this surety bond repeal, contact the Department of Criminal Justice Services. If you need a different surety bond, get in touch with Single Source Insurance today!