Amended in Senate August 13, 2014

Amended in Senate July 1, 2014

Amended in Assembly March 18, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1608


Introduced by Assembly Member Olsen

(Coauthor: Senator Vidak)

February 5, 2014


An act to amend, repeal, and add Sections 7512.3, 7525.1, 7529,begin insert 7530,end insert7538, 7538.5,begin delete andend delete 7539begin insert, and 7570end insert of, and to add and repeal Section 7520.3 of, the Business and Professions Code, relating to private investigators.

LEGISLATIVE COUNSEL’S DIGEST

AB 1608, as amended, Olsen. Private investigators: limited liability companies.

Existing law, the Private Investigator Act, provides for the licensure and regulation of private investigators by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of the licensing requirements a crime. Existing law defines a person, for purposes of the act, to include any individual, firm, company, association, organization, partnership, and corporation.begin insert Under existing law, a license is not assignable.end insert

Existing law, the California Revised Uniform Limited Liability Company Act, governs the formation and operation of limited liability companies. The act authorizes a limited liability company to engage in any lawful business activity, except as specified, but prohibits construing the act to permit a limited liability company to render professional services, as defined. Existing law authorizes a limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the provisions of that code authorize a limited liability company to hold that license, certificate, or registration.

This bill, until January 1, 2018, would authorize the bureau to issue a private investigator license to a limited liability company and would make related conforming changes. The bill would require a limited liability company applicant for a private investigator license to provide specified information to the bureau, including the true name and complete residence address of each of the managing members and any other officers or members who will be active in the business. The bill would require a limited liability company, as a condition of licensure, to maintain liability insurance, as specified, for damages arising out of claims based on acts, errors, or omissions arising out of the private investigator services it provides. The bill would require a Certificate of Liability Insurance, as specified, to be submitted to the bureau, and would require the insurer issuing the certificate to report specified information to the bureau related to the policy. The bill would authorize suspensionbegin insert, as provided,end insert of the license of a licensee that fails to maintain sufficient insurancebegin delete pursuant to these provisionsend deletebegin insert, or fails to provide proof of the required insurance upon request by the bureau,end insert and would render each member of the limited liability company personally liable, up to $1,000,000 dollars each, for damages resulting to 3rd parties in connection with the company’s performance during the period of suspension, as specified. By expanding the scope of an existing crime, the bill would create a state-mandated local program.

begin insert

This bill would authorize a licensee to apply to the Chief of the Bureau of Security and Investigative Services to assign a license, as provided, to another business entity, upon receipt of consent by the chief and the payment of a processing fee not to exceed $125.

end insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 7512.3 of the Business and Professions
2Code
is amended to read:

3

7512.3.  

(a) As used in this chapter, “person” includes any
4individual, firm, company, limited liability company, association,
5organization, partnership, and corporation.

6(b) This section shall remain in effect only until January 1, 2018,
7and as of that date is repealed, unless a later enacted statute, that
8is enacted before January 1, 2018, deletes or extends that date.

9

SEC. 2.  

Section 7512.3 is added to the Business and Professions
10Code
, to read:

11

7512.3.  

(a) As used in this chapter, “person” includes any
12individual, firm, company, association, organization, partnership,
13and corporation.

14(b) This section shall become operative on January 1, 2018.

15

SEC. 3.  

Section 7520.3 is added to the Business and Professions
16Code
, to read:

17

7520.3.  

(a) As a condition of the issuance, reinstatement,
18reactivation, or continued valid use of a license under this chapter,
19a limited liability company shall, in accordance with this section,
20maintain a policy or policies of insurance against liability imposed
21on or against it by law for damages arising out of claims based
22upon acts, errors, or omissions arising out of the private investigator
23services it provides.

24(b) The total aggregate limit of liability under the policy or
25policies of insurance required under this section shall be as follows:

26(1) For a limited liability company licensee with five or fewer
27persons named as managing members pursuant to subdivision (i)
28of Section 7525.1, the aggregate limit shall not be less than one
29million dollars ($1,000,000).

30(2) For a limited liability company licensee with more than five
31persons named as managing members pursuant to subdivision (i)
32of Section 7525.1, an additional one hundred thousand dollars
33($100,000) of insurance shall be obtained for each person named
34as managing members of the licensee except that the maximum
35amount of insurance is not required to exceed five million dollars
36($5,000,000) in any one designated period, less amounts paid in
37defending, settling, or discharging claims as set forth under this
38section.

P4    1(c) Prior to the issuance, reinstatement, or reactivation of a
2limited liability company license as provided under this chapter,
3the applicant or licensee shall, in the manner prescribed by the
4bureau, submit the information and documentation required by
5this section and requested by the bureau, demonstrating compliance
6with the financial security requirements specified by this section.

7(d) For any insurance policy secured by a licensee in satisfaction
8of this section, a Certificate of Liability Insurance, signed by an
9authorized agent or employee of the insurer, shall be submitted
10electronically or otherwise to the bureau. The insurer issuing the
11certificate shall report to the bureau the following information for
12any policy required under this section: name, license number,
13policy number, dates that coverage is scheduled to commence and
14lapse, the date and amount of any payment of claims, and
15cancellation date if applicable.

16(e) begin insert(1)end insertbegin insertend insert If a licensee fails to maintain sufficient insurance as
17required by this section,begin delete the license is subject to suspension.end deletebegin insert or
18fails to provide proof of the required insurance upon request by
19the bureau, the license is subject to suspension and shall be
20automatically suspended pursuant to this subdivision until the date
21that the licensee provides proof to the bureau of compliance with
22the insurance coverage requirement.end insert

begin insert

23(2) Prior to an automatic suspension, the bureau shall notify
24the licensee, in writing, that it has 30 days to provide proof to the
25bureau of having the required insurance or the license shall be
26automatically suspended.

end insert
begin insert

27(3) If the licensee fails to provide proof of insurance coverage
28within this period, the bureau may automatically suspend the
29license.

end insert

30(f) If the license of a limited liability company is suspended
31pursuant to subdivision (e), each member of the limited liability
32company shall be personally liable up to one million dollars
33($1,000,000) each for damages resulting to third parties in
34connection with the company’s performance, during the period of
35suspension, of any act or contract when a license is required by
36this chapter.

37(g) This section shall remain in effect only until January 1, 2018,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2018, deletes or extends that date.

P5    1

SEC. 4.  

Section 7525.1 of the Business and Professions Code
2 is amended to read:

3

7525.1.  

An application shall be verified and shall include:

4(a) The full name and business address of the applicant.

5(b) The name under which the applicant intends to do business.

6(c) A statement as to the general nature of the business in which
7the applicant intends to engage.

8(d) A verified statement of his or her experience qualifications.

9(e) (1) If the applicant is an individual, a qualified manager, a
10partner of a partnership, an officer of a corporation designated in
11subdivision (h), or a managing member of a limited liability
12company designated in subdivision (i), one personal identification
13form provided by the bureau upon which shall appear a photograph
14taken within one year immediately preceding the date of the filing
15of the application together with two legible sets of fingerprints,
16one set of which shall be forwarded to the Federal Bureau of
17Investigation for purposes of a background check, on a form
18approved by the Department of Justice, and a personal description
19of each person, respectively. The identification form shall include
20residence addresses and employment history for the previous five
21years and be signed under penalty of perjury.

22(2) The bureau may impose a fee not to exceed three dollars
23($3) for processing classifiable fingerprint cards submitted by
24applicants, excluding those submitted into an electronic fingerprint
25system using electronic fingerprint technology.

26(f) In addition, if the applicant for a license is an individual, the
27application shall list all other names known as or used during the
28past 10 years and shall state that the applicant is to be personally
29and actively in charge of the business for which the license is
30sought. If any other qualified manager is to be actively in charge
31of the business, the application shall be subscribed, verified, and
32signed by the applicant, under penalty of perjury. If any other
33person is to be actively in charge of the business, the application
34shall also be subscribed, verified, and signed by that person under
35penalty of perjury.

36(g) If the applicants for a license are copartners, the application
37shall state the true names and addresses of all partners and the
38name of the partner to be actively in charge of the business for
39which the license is sought and list all other names known as or
40used during the past 10 years. If a qualified manager other than a
P6    1partner is to be actively in charge of the business, then the
2application shall be subscribed, verified, and signed by all of the
3partners under penalty of perjury. If any other person is to be
4actively in charge of the business, the application shall also be
5subscribed, verified, and signed by that person, under penalty of
6 perjury, under penalty of perjury by all of the partners and the
7qualified manager, or by all of the partners or the qualified
8manager.

9(h) If the applicant for a license is a corporation, the application
10shall state the true names and complete residence addresses of the
11chief executive officer, secretary, chief financial officer, and any
12other corporate officer who will be active in the business to be
13licensed. The application shall also state the name and address of
14the designated person to be actively in charge of the business for
15which the license is sought. The application shall be subscribed,
16verified, and signed by a duly authorized officer of the applicant
17and by the qualified manager thereof, under penalty of perjury.

18(i) If the applicant for a license is a limited liability company,
19the application shall state the true name and complete residence
20address of each managing member and any other officer or member
21who will be active in the business to be licensed. A copy of the
22 most recent articles of organization, as filed by the Secretary of
23State, shall be supplied to the bureau upon request. The application
24shall also state the name and residence address of the designated
25person to be actively in charge of the business for which the license
26is sought. The application shall be subscribed, verified, and signed
27by a duly authorized member of the applicant under penalty of
28perjury.

29(j) Any other information, evidence, statements, or documents
30as may be required by the director.

31(k) This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.

34

SEC. 5.  

Section 7525.1 is added to the Business and Professions
35Code
, to read:

36

7525.1.  

An application shall be verified and shall include:

37(a) The full name and business address of the applicant.

38(b) The name under which the applicant intends to do business.

39(c) A statement as to the general nature of the business in which
40the applicant intends to engage.

P7    1(d) A verified statement of his or her experience qualifications.

2(e) (1) If the applicant is an individual, a qualified manager, a
3partner of a partnership, or an officer of a corporation designated
4in subdivision (h), one personal identification form provided by
5the bureau upon which shall appear a photograph taken within one
6year immediately preceding the date of the filing of the application
7together with two legible sets of fingerprints, one set of which
8shall be forwarded to the Federal Bureau of Investigation for
9purposes of a background check, on a form approved by the
10Department of Justice, and a personal description of each person,
11respectively. The identification form shall include residence
12addresses and employment history for the previous five years and
13be signed under penalty of perjury.

14(2) The bureau may impose a fee not to exceed three dollars
15($3) for processing classifiable fingerprint cards submitted by
16applicants, excluding those submitted into an electronic fingerprint
17system using electronic fingerprint technology.

18(f) In addition, if the applicant for a license is an individual, the
19application shall list all other names known as or used during the
20past 10 years and shall state that the applicant is to be personally
21and actively in charge of the business for which the license is
22sought. If any other qualified manager is to be actively in charge
23of the business, the application shall be subscribed, verified, and
24signed by the applicant, under penalty of perjury. If any other
25person is to be actively in charge of the business, the application
26shall also be subscribed, verified, and signed by that person under
27penalty of perjury.

28(g) If the applicants for a license are copartners, the application
29shall state the true names and addresses of all partners and the
30name of the partner to be actively in charge of the business for
31which the license is sought and list all other names known as or
32used during the past 10 years. If a qualified manager other than a
33partner is to be actively in charge of the business, then the
34application shall be subscribed, verified, and signed by all of the
35partners under penalty of perjury. If any other person is to be
36actively in charge of the business, the application shall also be
37subscribed, verified, and signedbegin insert under penalty of perjuryend insert by that
38person,begin delete under penalty ofend deletebegin deleteperjury, under penalty of perjuryend delete by all of
39the partners andbegin insert theend insert qualified manager, or by all of the partners or
40the qualified manager.

P8    1(h) If the applicant for a license is a corporation, the application
2shall state the true names and complete residence addresses of the
3chief executive officer, secretary, chief financial officer, and any
4other corporate officer who will be active in the business to be
5licensed. The application shall also state the name and address of
6the designated person to be actively in charge of the business for
7which the license is sought. The application shall be subscribed,
8verified, and signed by a duly authorized officer of the applicant
9and by the qualified manager thereof, under penalty of perjury.

10(i) Any other information, evidence, statements, or documents
11as may be required by the director.

12(j) This section shall become operative on January 1, 2018.

13

SEC. 6.  

Section 7529 of the Business and Professions Code is
14amended to read:

15

7529.  

(a) Upon the issuance of a license, a pocket card of the
16size, design, and content as may be determined by the director
17shall be issued by the bureau to each licensee, if an individual, or
18if the licensee is a person other than an individual, to its managing
19member or manager and to each of its officers and partners. The
20pocket card is evidence that the licensee is licensed pursuant to
21this chapter. The card shall contain the signature of the licensee,
22signature of the chief, and a photograph of the licensee, or bearer
23of the card, if the licensee is other than an individual. The card
24shall clearly state that the person is licensed as a private
25investigator or is the manager or officer of the licensee. The pocket
26card is to be composed of a durable material and may incorporate
27technologically advanced security features. The bureau may charge
28a fee sufficient to reimburse the department’s costs for furnishing
29the pocket card. The fee chargedbegin delete mayend deletebegin insert shallend insert not exceed the actual
30direct costs for system development, maintenance, and processing
31necessary to provide this service, and shall not exceed sixteen
32dollars ($16). When a person to whom a card is issued terminates
33his or her position, office, or association with the licensee, the card
34shall be surrendered to the licensee and within five days thereafter
35shall be mailed or delivered by the licensee to the bureau for
36cancellation. Every person, while engaged in any activity for which
37licensure is required, shall display his or her valid pocket card as
38provided by regulation.

P9    1(b) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

4

SEC. 7.  

Section 7529 is added to the Business and Professions
5Code
, to read:

6

7529.  

(a) Upon the issuance of a license, a pocket card of the
7size, design, and content as may be determined by the director
8shall be issued by the bureau to each licensee, if an individual, or
9if the licensee is a person other than an individual, to its manager
10and to each of its officers and partners. The pocket card is evidence
11that the licensee is licensed pursuant to this chapter. The card shall
12contain the signature of the licensee, signature of the chief, and a
13photograph of the licensee, or bearer of the card, if the licensee is
14other than an individual. The card shall clearly state that the person
15is licensed as a private investigator or is the manager or officer of
16the licensee. The pocket card is to be composed of a durable
17material and may incorporate technologically advanced security
18features. The bureau may charge a fee sufficient to reimburse the
19department’s costs for furnishing the pocket card. The fee charged
20shall not exceed the actual direct costs for system development,
21maintenance, and processing necessary to provide this service, and
22shall not exceed sixteen dollars ($16). When a person to whom a
23card is issued terminates his or her position, office, or association
24with the licensee, the card shall be surrendered to the licensee and
25within five days thereafter shall be mailed or delivered by the
26licensee to the bureau for cancellation. Every person, while engaged
27in any activity for which licensure is required, shall display his or
28her valid pocket card as provided by regulation.

29(b) This section shall become operative on January 1, 2018.

30begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 7530 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert is
31amended to read:end insert

32

7530.  

begin deleteA end deletebegin insert(a)end insertbegin insertend insertbegin insertExcept as provided in this section, a end insertlicense issued
33under this chapter is not assignable.

begin insert

34(b) A licensee may apply to the chief for consent, and upon
35receipt of the consent and payment of the processing fee authorized
36by Section 7570, may assign a license to another business entity
37if the direct and indirect owners of the assignor acquire all, or
38substantially all, of the assets of the assignee, contemporaneously
39with the assignment.

end insert
begin insert

P10   1(c) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

end insert
4begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 7530 is added to the end insertbegin insertBusiness and Professions
5Code
end insert
begin insert, to read:end insert

begin insert
6

begin insert7530.end insert  

(a) A license issued under this chapter is not assignable.

7(b) This section shall become operative on January 1, 2018.

end insert
8

begin deleteSEC. 8.end delete
9begin insertSEC. 10.end insert  

Section 7538 of the Business and Professions Code
10 is amended to read:

11

7538.  

(a) After a hearing the director may deny a license unless
12the applicant makes a showing satisfactory to the director that the
13applicant, if an individual, hasbegin delete not, orend deletebegin insert not, or,end insert if the applicant is a
14person other than an individual, that its manager and each of its
15officers have not:

16(1) Committed anybegin delete act, which,end deletebegin insert act that,end insert if committed by a
17licensee, would be a ground for the suspension or revocation of a
18license under this chapter.

19(2) Committed any act constituting dishonesty or fraud.

20(3) Committed any act or crime constituting grounds for denial
21of licensure under Section 480, including illegally using, carrying,
22or possessing a deadly weapon.

23(4) Been refused a license under this chapter or had a license
24revoked.

25(5) Been an officer, partner, managing member, or manager of
26any person who has been refused a license under this chapter or
27whose license has been revoked.

28(6) While unlicensed committed, or aided and abetted the
29commission of, any act for which a license is required by this
30chapter.

31(7) Knowingly made any false statement in his or her
32application.

33(b) This section shall remain in effect only until January 1, 2018,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2018, deletes or extends that date.

36

begin deleteSEC. 9.end delete
37begin insertSEC. 11.end insert  

Section 7538 is added to the Business and Professions
38Code
, to read:

39

7538.  

(a) After a hearing the director may deny a license unless
40the applicant makes a showing satisfactory to the director that the
P11   1applicant, if an individual, hasbegin delete not, orend deletebegin insert not, or,end insert if the applicant is a
2person other than an individual, that its manager and each of its
3officers have not:

4(1) Committed anybegin delete act, which,end deletebegin insert act that,end insert if committed by a
5licensee, would be a ground for the suspension or revocation of a
6license under this chapter.

7(2) Committed any act constituting dishonesty or fraud.

8(3) Committed any act or crime constituting grounds for denial
9 of licensure under Section 480, including illegally using, carrying,
10 or possessing a deadly weapon.

11(4) Been refused a license under this chapter or had a license
12revoked.

13(5) Been an officer, partner, or manager of any person who has
14been refused a license under this chapter or whose license has been
15revoked.

16(6) While unlicensed committed, or aided and abetted the
17commission of, any act for which a license is required by this
18chapter.

19(7) Knowingly made any false statement in his or her
20application.

21(b) This section shall become operative on January 1, 2018.

22

begin deleteSEC. 10.end delete
23begin insertSEC. 12.end insert  

Section 7538.5 of the Business and Professions Code
24 is amended to read:

25

7538.5.  

(a) The director may refuse to issue any license
26provided for in this chapter to any of the following:

27(1) A person who has had any license revoked, has a license
28currently under suspension, or failed to renew his or her license
29while under suspension.

30(2) A person who, while acting as a member of a partnership,
31an officer or director of a corporation, an officer or person acting
32in a managerial capacity of a firm or association, or a managing
33member of a limited liability company, had his or her license
34revoked, has a license currently under suspension, or failed to
35renew his or her license while under suspension.

36(3) A person who, while acting as a member of the partnership,
37an officer or director of the corporation, or an officer or person
38acting in a managerial capacity of the firm or association, meets
39both of the following conditions:

P12   1(A) He or she was a member of any partnership, an officer or
2director of any corporation, an officer or person acting in a
3managerial capacity of any firm or association, or a managing
4member of any limited liability company whose license was
5revoked, is currently under suspension, or was not renewed while
6 under suspension.

7(B) While acting as a member, officer, director, or person acting
8in a managerial capacity in any corporation, firm, association, or
9limited liability company, he or she participated in any of the
10prohibited acts for which the license was revoked or suspended.

11(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

begin deleteSEC. 11.end delete
15begin insertSEC. 13.end insert  

Section 7538.5 is added to the Business and
16Professions Code
, to read:

17

7538.5.  

(a) The director may refuse to issue any license
18provided for in this chapter to any of the following:

19(1) A person who has had any license revoked, has a license
20currently under suspension, or failed to renew his or her license
21while under suspension.

22(2) A person who, while acting as a member of a partnership,
23an officer or director of a corporation, or an officer or person acting
24in a managerial capacity of a firm or association, had his or her
25license revoked, has a license currently under suspension, or failed
26to renew his or her license while under suspension.

27(3) A person who, while acting as a member of the partnership,
28an officer or director of the corporation, or an officer or person
29acting in a managerial capacity of the firm or association, meets
30both of the following conditions:

31(A) He or she was a member of any partnership, an officer or
32director of any corporation, or an officer or person acting in a
33managerial capacity of any firm or association, whose license was
34revoked, is currently under suspension, or was not renewed while
35under suspension.

36(B) He or she, while acting as a member, officer, director, or
37person acting in a managerial capacity in any corporation, firm,
38or association, participated in any of the prohibited acts for which
39the license was revoked or suspended.

40(b) This section shall become operative on January 1, 2018.

P13   1

begin deleteSEC. 12.end delete
2begin insertSEC. 14.end insert  

Section 7539 of the Business and Professions Code
3 is amended to read:

4

7539.  

(a) Any licensee or officer, director, partner, managing
5member, or manager of a licensee may divulge to any law
6enforcement officer or district attorney, or his or her representative,
7any information he or she may acquire as to any criminal offense,
8but he or she shall not divulge to any other person, except as
9otherwise required by law, any information acquired by him or
10her except at the direction of the employer or client for whom the
11information was obtained.

12(b) A licensee or officer, director, partner, manager, managing
13member, or employee of a licensee shall not knowingly make any
14false report to his or her employer or client for whom information
15was being obtained.

16(c) A written report shall not be submitted to a client except by
17the licensee, qualifying manager, managing member, or a person
18authorized by one or either of them, and the person submitting the
19report shall exercise diligence in ascertaining whether or not the
20facts and information in the report are true and correct.

21(d) A licensee, or officer, director, partner, manager, managing
22member, or employee of a licensee shall not use a badge in
23connection with the official activities of the licensee’s business.

24(e) A licensee, or officer, director, partner, manager, managing
25member, or employee of a licensee, shall not use a title, or wear a
26uniform, or use an insignia, or use an identification card, or make
27any statement with the intent to give an impression that he or she
28is connected in any way with the federal government, a state
29government, or any political subdivision of a state government.

30(f) A licensee, or officer, partner, qualified manager, managing
31member, or employee of a licensee shall not use any identification
32to indicate that he or she is licensed as a private investigator other
33than the official identification card issued by the bureau or the
34business card regularly used by the business. However, a licensee
35may issue an employer identification card.

36(g) A licensee, or officer, director, partner, manager, managing
37member, or employee of a licensee, shall not enter any private
38building or portion thereof, except premises commonly accessible
39to the public, without the consent of the owner or of the person in
40legal possession thereof.

P14   1(h) A licensee shall not permit an employee or agent in his or
2her own name to advertise, engage clients, furnish reports or
3present bills to clients, or in any manner conduct business for which
4a license is required under this chapter. All business of the licensee
5shall be conducted in the name of and under the control of the
6licensee.

7(i) A licensee, officer, director, partner, manager, managing
8member, or employee of a licensee shall not knowingly and directly
9solicit employment from any person who has directly sustained
10bodily injury or from that person’s spouse or other family member
11to obtain authorization on behalf of the injured person as an
12investigator to investigate the accident or act that resulted in injury
13or death to that person or damage to the property of that person.
14Nothing in this subdivision shall prohibit the soliciting of
15employment from that injured person’s attorney, insurance
16company, self-insured administrator, insurance adjuster, employer,
17or any other person having an indirect interest in the investigation
18of the injury. This subdivision shall not apply to any business agent
19or attorney employed by a labor organization. A licensee, officer,
20director, partner, managing member, or manager of a licensee shall
21not pay or compensate any of his or her employees or agents on
22the basis of a bonus, bounty, or quota system whereby a premium
23is placed on the number of employer or client rule violations or
24infractions purportedly discovered as a result of any investigation
25made by a licensee.

26(j) A licensee shall not use a fictitious business name in
27connection with the official activities of the licensee’s business,
28except as provided by the bureau.

29(k) This section shall remain in effect only until January 1, 2018,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2018, deletes or extends that date.

32

begin deleteSEC. 13.end delete
33begin insertSEC. 15.end insert  

Section 7539 is added to the Business and Professions
34Code
, to read:

35

7539.  

(a) Any licensee or officer, director, partner, or manager
36of a licensee may divulge to any law enforcement officer or district
37attorney, or his or her representative, any information he or she
38may acquire as to any criminal offense, but he or she shall not
39divulge to any other person, except as otherwise required by law,
P15   1any information acquired by him or her except at the direction of
2the employer or client for whom the information was obtained.

3(b) A licensee or officer, director, partner, manager, or employee
4of a licensee shall not knowingly make any false report to his or
5her employer or client for whom information was being obtained.

6(c) A written report shall not be submitted to a client except by
7the licensee, qualifying manager, or a person authorized by one
8or either of them, and the person submitting the report shall
9exercise diligence in ascertaining whether or not the facts and
10information in the report are true and correct.

11(d) A licensee, or officer, director, partner, manager, or
12employee of a licensee shall not use a badge in connection with
13the official activities of the licensee’s business.

14(e) A licensee, or officer, director, partner, manager, or employee
15of a licensee, shall not use a title, or wear a uniform, or use an
16insignia, or use an identification card, or make any statement with
17the intent to give an impression that he or she is connected in any
18way with the federal government, a state government, or any
19political subdivision of a state government.

20(f) A licensee, or officer, partner, qualified manager, or
21employee of a licensee shall not use any identification to indicate
22that he or she is licensed as a private investigator other than the
23official identification card issued by the bureau or the business
24card regularly used by the business. However, a licensee may issue
25an employer identification card.

26(g) A licensee, or officer, director, partner, manager, or
27employee of a licensee, shall not enter any private building or
28portion thereof, except premises commonly accessible to the public,
29without the consent of the owner or of the person in legal
30possession thereof.

31(h) A licensee shall not permit an employee or agent in his or
32her own name to advertise, engage clients, furnish reports or
33present bills to clients, or in any manner conduct business for which
34a license is required under this chapter. All business of the licensee
35shall be conducted in the name of and under the control of the
36licensee.

37(i) A licensee, officer, director, partner, manager, or employee
38of a licensee shall not knowingly and directly solicit employment
39from any person who has directly sustained bodily injury or from
40that person’s spouse or other family member to obtain authorization
P16   1on behalf of the injured person as an investigator to investigate
2the accident or act that resulted in injury or death to that person or
3damage to the property of that person. Nothing in this subdivision
4shall prohibit the soliciting of employment from that injured
5person’s attorney, insurance company, self-insured administrator,
6insurance adjuster, employer, or any other person having an indirect
7interest in the investigation of the injury. This subdivision shall
8not apply to any business agent or attorney employed by a labor
9organization. A licensee, officer, director, partner, or manager of
10a licensee shall not pay or compensate any of his or her employees
11or agents on the basis of a bonus, bounty, or quota system whereby
12a premium is placed on the number of employer or client rule
13violations or infractions purportedly discovered as a result of any
14investigation made by a licensee.

15(j) A licensee shall not use a fictitious business name in
16connection with the official activities of the licensee’s business,
17except as provided by the bureau.

18(k) This section shall become operative on January 1, 2018.

19begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 7570 of the end insertbegin insertBusiness and Professions Codeend insert
20begin insert is amended to read:end insert

21

7570.  

The fees prescribed by this chapter are as follows:

22(a) The application and examination fee for an original license
23begin delete mayend deletebegin insert shallend insert not exceed fifty dollars ($50).

24(b) The application fee for an original branch office certificate
25begin delete mayend deletebegin insert shallend insert not exceed thirty dollars ($30).

26(c) The fee for an original license for a private investigatorbegin delete mayend delete
27begin insert shallend insert not exceed one hundred seventy-five dollars ($175).

28(d) The renewal fee is as follows:

29(1) For a license as a private investigator, the feebegin delete mayend deletebegin insert shallend insert not
30exceed one hundred twenty-five dollars ($125).

31(2) For a combination license as a private investigator and
32private patrol operator under Chapter 11.5 (commencing with
33Section 7580), AC or DC prefix, the feebegin delete mayend deletebegin insert shallend insert not exceed six
34hundred dollars ($600).

35(3) For a branch office certificate for a private investigator, the
36feebegin delete mayend deletebegin insert shallend insert not exceed thirty dollars ($30), and for a combination
37private investigator and private patrol operator under Chapter 11.5
38(commencing with Section 7580), the feebegin delete mayend deletebegin insert shallend insert not exceed
39forty dollars ($40).

P17   1(e) The delinquency fee is 50 percent of the renewal fee in effect
2on the date of expiration.

3(f) A reinstatement fee is equal to the amount of the renewal
4fee plus the regular delinquency fee.

5(g) The fee for reexamination of an applicant or his or her
6managerbegin delete mayend deletebegin insert shallend insert not exceed fifteen dollars ($15).

begin insert

7(h) The processing fee for the assignment of a license pursuant
8to Section 7530 shall not exceed one hundred twenty-five dollars
9($125).

end insert
begin insert

10(i) This section shall remain in effect only until January 1, 2018,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2018, deletes or extends that date.

end insert
13begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 7570 is added to the end insertbegin insertBusiness and Professions
14Code
end insert
begin insert, to read:end insert

begin insert
15

begin insert7570.end insert  

The fees prescribed by this chapter are as follows:

16(a) The application and examination fee for an original license
17shall not exceed fifty dollars ($50).

18(b) The application fee for an original branch office certificate
19shall not exceed thirty dollars ($30).

20(c) The fee for an original license for a private investigator
21shall not exceed one hundred seventy-five dollars ($175).

22(d) The renewal fee is as follows:

23(1) For a license as a private investigator, the fee shall not
24exceed one hundred twenty-five dollars ($125).

25(2) For a combination license as a private investigator and
26private patrol operator under Chapter 11.5 (commencing with
27Section 7580), AC or DC prefix, the fee shall not exceed six
28hundred dollars ($600).

29(3) For a branch office certificate for a private investigator, the
30fee shall not exceed thirty dollars ($30), and for a combination
31private investigator and private patrol operator under Chapter
3211.5 (commencing with Section 7580), the fee shall not exceed
33forty dollars ($40).

34(e) The delinquency fee is 50 percent of the renewal fee in effect
35on the date of expiration.

36(f) A reinstatement fee is equal to the amount of the renewal fee
37plus the regular delinquency fee.

38(g) The fee for reexamination of an applicant or his or her
39manager shall not exceed fifteen dollars ($15).

40(h) This section shall become operative on January 1, 2018.

end insert
P18   1

begin deleteSEC. 14.end delete
2begin insertSEC. 18.end insert  

No reimbursement is required by this act pursuant to
3Section 6 of Article XIII B of the California Constitution because
4the only costs that may be incurred by a local agency or school
5district will be incurred because this act creates a new crime or
6infraction, eliminates a crime or infraction, or changes the penalty
7for a crime or infraction, within the meaning of Section 17556 of
8the Government Code, or changes the definition of a crime within
9the meaning of Section 6 of Article XIII B of the California
10Constitution.



O

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