Surety Bond Encyclopedia

Private Detective and Security Guard ($2,000) Bond - City of Tuscaloosa, AL in Alabama

Brief Summary

Tuscaloosa's city code still carries a $2,000 indemnity bond for anyone granted a private detective permit under Article VI, and the permit is automatically revoked if the bond lapses. State law now limits what a city can require of state licensed investigators and security officers, so check with the city before you buy and you will post exactly what Tuscaloosa asks for.

Tuscaloosa Code Section 7-103 requires each person granted a permit under Article VI, Private Detectives and Security Guards, to file and maintain a $2,000 indemnity bond with the city revenue director. The bond is payable to the City of Tuscaloosa and gives anyone injured by the principal's wrongful acts in the business a right of direct action against the principal, the surety or both.

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How to Apply for a Private Detective and Security Guard ($2,000) Bond:

  • Ask the Tuscaloosa Revenue Division whether the city still requests this bond from your license type, given Ala. Code 34-25B-19 and 34-27C-18.
  • Have your name or business name exactly as it appears on your city permit application.
  • Complete the bond application and review the quoted premium.
  • Pay the premium and receive the executed $2,000 indemnity bond payable to the City of Tuscaloosa.
  • File the bond with the Tuscaloosa revenue director and keep it in force for as long as you hold the permit.

Detailed Information About the Alabama Private Detective and Security Guard ($2,000) Bond:

What the city code says

Article VI of Chapter 7 of the Tuscaloosa Code makes it unlawful to engage in the business of a private detective, detective or investigation bureau without a city license. Applicants apply to the chief of police, provide affidavits from three people who have known them for two years, and pay a $125 nonrefundable fee to the revenue director for each operative beyond clerical staff. Section 7-103 then requires every person granted a permit to file and maintain a $2,000 indemnity bond with the revenue director, written by a surety company authorized in Alabama. The permit is automatically revoked if the bond is not kept in force.

State law has changed since the bond was written

The bond language dates to 1985. Since then Alabama has adopted statewide licensing for both professions. Alabama Code Section 34-25B-19, part of the Alabama Private Investigation Regulatory Act, provides that no licensee or applicant shall be required to obtain any authorization or license from, pay any other fee to, or post a bond in any municipality to engage in activity regulated under that chapter. A city may still impose a bona fide occupational tax or business license fee. For security officers and contract security companies, Alabama Code Section 34-27C-18 bars cities from adopting ordinances on their licensing, training or regulation other than a bona fide business or occupational tax, and supersedes conflicting local provisions.

If you hold a state private investigator license, or work as a security officer under the Alabama Security Regulatory Board, ask the Tuscaloosa Revenue Division whether the city still requests this bond from you before you buy it. If the city confirms the bond, it is a $2,000 indemnity bond payable to the City of Tuscaloosa.

What the bond guarantees

Any person injured by a wrongful act of the bonded principal, arising out of the business the permit covers, has a right of direct action against the principal, the surety or both. If the surety pays a claim, it will look to the principal for repayment.

What it costs

You pay a premium to the surety rather than the $2,000 face amount. The surety sets the premium after reviewing the applicant.

Eligibility and Requirements for a Alabama Private Detective and Security Guard ($2,000) Bond:

  • Bond amount of $2,000, payable to the City of Tuscaloosa.
  • Surety company authorized to do business in Alabama.
  • Direct action right for any person injured by the principal's wrongful acts in the business.
  • Filed and maintained with the Tuscaloosa revenue director.
  • Continuous coverage. Under Section 7-103 the permit is automatically revoked if the bond lapses.

Alabama Private Detective and Security Guard ($2,000) Bond FAQs:

I hold an Alabama private investigator license. Does Tuscaloosa still need this bond from me?

Alabama Code 34-25B-19 says a state licensee cannot be required to post a bond in any municipality to engage in activity regulated under the Private Investigation Regulatory Act, although a city may still charge a business license fee or occupational tax. Ask the Tuscaloosa Revenue Division how the city applies Section 7-103 to state licensees before you buy the bond.

What about security officers?

Alabama Code 34-27C-18 bars cities from regulating the licensing, training or regulation of contract security companies and security officers, other than a bona fide business or occupational tax. Confirm with the city whether any bond is requested for your security operation.

Who can claim on the bond?

Any person injured by a wrongful act of the principal arising out of the business covered by the permit. They can bring a direct action against the principal, the surety or both.

Where is the bond filed?

With the Tuscaloosa revenue director. The Revenue Division is at Annex 3, 2230 6th Street, 3rd Floor, phone 205-248-5200.

Official and Additional Resources for the Alabama Private Detective and Security Guard ($2,000) Bond:

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