A licensed security guard agency is responsible for the acts of each of its employees while the employee is conducting the business of the agency.

The offices of each security guard agency shall be supervised by an individual who: holds, as an individual, the license of the security guard agency; or is the representative member of the security guard agency appointed under § 19-302(b) of this title; and has been investigated and approved by the Secretary under this title. If a security guard agency is a firm, the agency shall notify the Secretary about: the identity of the individual serving as the representative member of the agency; and each vacancy in that position. Except as provided in paragraph (2) of this subsection, a security guard agency shall appoint a representative member within 90 days after a vacancy occurs in the position. If the vacancy is caused by the death of or an incapacitating injury to the representative member, the security guard agency shall appoint a replacement within 180 days after the vacancy occurs. If a licensed security guard agency fails to appoint a representative member as required under subsection (c) of this section, the license of the security guard agency: is suspended automatically; and shall remain suspended until the agency complies with the requirements. The Secretary may adopt regulations to carry out this section.

A security guard agency or security guard employer that employs five or more individuals as security guards shall: maintain commercial general liability insurance, including errors and omissions and completed operations with a $1,000,000 total aggregate minimum; and submit proof of the required insurance to the Secretary. A security guard agency or security guard employer that employs fewer than five individuals as security guards shall: maintain commercial general liability insurance, including errors and omissions and completed operations with a $500,000 total aggregate minimum; and submit proof of the required insurance to the Secretary. If an applicant for a license or a security guard employer intends to employ one or more individuals as security guards, the applicant shall submit proof of the liability insurance required under subsection (a) of this section to the Secretary with the license application. The Secretary may not issue a license to an applicant to whom the insurance requirements of this section would apply unless the applicant submits proof of the insurance. The Secretary may not authorize the certification of a security guard for a security guard employer unless the security guard employer submits proof of applicable insurance under subsection (a) of this section. If the insurance required for a security guard agency or security guard employer under this section is canceled, forfeited, or otherwise terminated, both the security guard agency or the security guard employer and the insurer shall notify the Secretary. If a security guard agency fails to maintain the liability insurance required under this section, the license of the security guard agency: is suspended automatically; shall remain suspended until the agency complies with the requirements; and may not be reinstated until the agency submits proof of the required insurance to the Secretary. If a security guard employer fails to maintain the liability insurance required under this section, the Secretary may prohibit a security guard employer from employing a certified security guard until the security guard employer: complies with the applicable insurance requirements under subsection (a) of this section; and submits proof of the required insurance to the Secretary.

A nonresident applicant for a license shall submit to the Secretary of State a consent, as provided under this section. The consent required under this section shall: specify that service of process on the Secretary of State shall bind the applicant in any action, suit, or proceeding brought against the applicant; specify that an action, suit, or proceeding may be brought against the applicant in any county where: the cause of action arose; or the plaintiff resides; and be signed by the representative member of the applicant. In addition to submitting a consent, a nonresident applicant shall submit to the Secretary of State a certified copy of a resolution adopted by the firm that confirms that the firm members, board of directors, or other managing board of the firm authorized the representative member to execute and submit the consent on behalf of the firm. An applicant who is required under this section to submit a consent or a consent and authorization to the Secretary of State shall submit copies of the signed documents to the Secretary. The Secretary may not issue a license to a nonresident applicant, unless the nonresident applicant complies with the requirements of subsections (a) through (d) of this section. Subject to paragraph (2) of this subsection, service of process on the Secretary of State binds a person who has submitted a consent to the Secretary of State, as required under this section. If service of process is made on the Secretary of State as authorized under this section, the person initiating the action, suit, or proceeding immediately shall send a copy, by certified mail, return receipt requested, to the principal office in the State of the person against whom the action, suit, or proceeding is directed. As to any person who submits a consent as required under this section, any action, suit, or proceeding may be brought in any county where: the cause of action arose; or the plaintiff resides.

A security guard agency may not divulge information obtained while providing services unless: directed by the client for whom the services are provided; authorized by subsection (b) of this section; or required by law. If, while providing services, a security guard agency obtains any information about a criminal offense, the agency may divulge the information to: a law enforcement officer; the Attorney General or a representative of the Attorney General; or a State’s Attorney or a representative of a State’s Attorney. Except as provided in subsection (d) of this section, an individual who is employed by a security guard agency may not divulge to anyone other than to authorized staff of the agency any information that: was acquired by the employee or other agency staff while providing services for the agency; and relates to the assignment in which services are provided. An employee of a security guard agency may divulge information that is restricted under subsection (c) of this section: as directed by the security guard agency; or on a request made by the Secretary in the course of an investigation by the Secretary.

In this section, “agency equipment” means a badge, clothing, or other equipment that: belongs to a security guard agency; and bears the name, trade name, or trademark of the security guard agency. If a security guard agency issues agency equipment for use by an individual who is associated with or employed by the agency, the individual shall return the agency equipment to the agency within 10 days after: the termination of the individual’s association or employment with the agency; or the written request of an authorized representative of the agency.

If a certified security guard loses a certification card, the security guard immediately shall give the Secretary notice of the loss and the circumstances regarding the loss.