What you need to know
Michigan’s Security Alarm Systems Act, 2012 PA 580, requires system providers to register with LARA and post a $25,000 bond or required insurance, fingerprint-check workers who enter customer premises, and bar people with disqualifying convictions. It excludes contractors licensed under the 1968 alarm act and preempts local licensing of alarm providers.
Potentially affected
Michigan businesses that buy alarm, video monitoring or access control services from registered system providers, and the providers themselves.
DSE recommendation
DSE recommends asking any registered alarm or monitoring provider for its registration and its background-check practice for technicians before granting site access.
Michigan’s Security Alarm Systems Act, 2012 PA 580, requires system providers to register with LARA and post a $25,000 bond or required insurance, fingerprint-check workers who enter customer premises, and bar people with disqualifying convictions. It excludes contractors licensed under the 1968 alarm act and preempts local licensing of alarm providers.
Source facts
Under MCL 338.2183, a person may not act as a system provider in Michigan without filing a registration statement with the Department of Licensing and Regulatory Affairs and either a $25,000 bond, insurance of $25,000 for property damage, $100,000 for injury to one person and $200,000 for more than one, or proof that it or an affiliate is a licensed basic local exchange provider or has annual revenue of $10 million or more. The definitions cover systems that transmit signals to a central monitoring station, including intrusion detection, video monitoring, access control and audio monitoring, but not fire alarm systems, and exclude contractors required to be licensed under the 1968 private security business and security alarm act.
MCL 338.2184 requires the registration to describe training for installers and monitors and to be updated annually, and requires a fingerprint-based background check of each employee or contractor who enters a customer’s premises to provide a security alarm system. Providers may not use such a person who is under 18, lacks a high school diploma or GED, has a felony conviction, has certain misdemeanors in the prior 5 years, such as fraud, assault or two or more alcohol-related offenses, or has an outstanding arrest warrant.
MCL 338.2186 preempts local rules on registering system providers and bars local licenses or permits for alarm services, except ordinances on audible alarm limits, automated calls to public safety, permits for high-voltage electrical or plumbing work, and rights-of-way.
Applicability
Use this when choosing or auditing a Michigan alarm or monitoring provider that is registered under the 2012 act. Contractors licensed under the 1968 act follow that act instead.
DSE recommendation
DSE recommends asking any registered alarm or monitoring provider for its registration and its background-check practice for technicians before granting site access. Confirm technicians who enter your premises were fingerprint-checked, keep the provider’s bond or insurance details on file, and match the provider name on contracts to its registration.
Verification
Record each provider’s registration status, review its background-check attestation yearly, and confirm technician names on work orders match the provider’s cleared staff.
Official references
Michigan Legislature — MCL 338.2183, Security Alarm Systems Act (2012 PA 580), system provider requirements. Michigan Legislature — MCL 338.2182, Definitions. Michigan Legislature — MCL 338.2184, Registration statement and background checks. Michigan Legislature — MCL 338.2186, Preemption of local requirements. Reviewed October 19, 2026.
Review the official source
Michigan Legislature — MCL 338.2183, Security Alarm Systems Act (2012 PA 580), system provider requirements · Verified October 19, 2026
Need help applying this guidance safely?
DSE can help confirm applicability, protect service continuity, and validate the result across physical security and IT systems.
Talk with DSE