(1) The Department of Public Safety Standards and Training shall establish by rule standards and procedures for the licensing of private security entities.

(2) Rules adopted under this section must require that an applicant for a private security entity license:

(a) Submit a written application to the Department of Public Safety Standards and Training on a form approved by the department;

(b) Register the entity as a business with the Secretary of State;

(c) Be the principal owner or principal partner who exercises operational control over the entity;

(d) Designate an executive manager licensed by the department;

(e) Be covered by a general liability insurance policy for which the applicant is a primary insured that includes public liability, personal injury and property damage insurance covering all aspects of the private security services being provided;

(f) Maintain and make available to the department upon request records of the training hours completed by each private security provider employed by the entity;

(g) Demonstrate the existence of use of force and citizen arrest policies, unless the private security entity exclusively monitors alarm systems; and

(h) Provide the following information to the department:

(A) The names and addresses of all persons financially interested, whether as partners, shareholders, associates or profit-sharers, in the applicant’s proposed operations as a private security entity, together with the amount of their respective interests, and whether or not, to the best of the applicant’s knowledge, any of these persons was ever denied a certificate or a license under ORS § 181A.870 within the preceding three years, or had a certificate or license suspended or revoked within the preceding three years;

(B) Proof of the existence of adequate insurance under rules issued by the department;

(C) Proof of compliance with business tax requirements;

(D) Any claims for unpaid wages that have been made against the applicant within the preceding two years;

(E) The physical address of the work location or locations at which private security services are provided by private security professionals employed by or pursuant to a contract or subcontract with the applicant; and

(F) For each work location at which private security services are provided by private security professionals pursuant to a contract or subcontract with the applicant, the names of the private security entity or entities contracted or subcontracted with the applicant.

(3) Each applicant shall submit with the application for a private security entity license, proof of financial ability to promptly pay the wages of executive managers, private security professionals and supervisory managers employed by or who contract with the private security entity. The proof required in this subsection shall be in an amount and form as established by the department by rule, including but not limited to, a corporate surety bond, a cash deposit or a deposit the equivalent of cash.

(4) The department shall establish fees for issuing licenses to private security entities. The fees may not exceed the prorated direct costs of administering:

(a) The licensing program required by this section;

(b) The license examinations required by ORS § 181A.904; and

(c) The investigations required by ORS § 181A.902. [2021 c.618 § 3]