Amended in Senate August 20, 2015

Amended in Senate July 14, 2015

Amended in Senate June 24, 2015

Amended in Assembly April 27, 2015

Amended in Assembly April 20, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 921

Introduced by Assembly Member Jones

February 26, 2015

An act to amend begin delete Section 7525.1 end delete begin insert Sections 7525.1, 7541, and 7541.1 end insert of, and to add Sections 7519.1, 7519.2, 7519.3, and 7519.4 to, the Business and Professions Code, relating to private investigators.

LEGISLATIVE COUNSEL’S DIGEST

AB 921, as amended, Jones. Private investigators: Disciplinary Review begin delete Committee. end delete begin insert Committee: licensure. end insert

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 requires the Director of Consumer Affairs to administer and enforce the act. The act authorizes the director to deny, suspend, or revoke a license if the director determines, among other things, that any provision of the act was violated by the licensee. The act also authorizes the director to impose a civil penalty of no greater than $500 instead of suspending or revoking a license issued under the act for the violation of specified provisions if the director determines that the imposition of the civil penalty better serves the purposes of the act. The act requires an application for a license to be verified and include certain information, including, but not limited to, the full name and business address of the applicant.

This bill would require the Governor to appoint a Private Investigator Disciplinary Review Committee, and would authorize the Governor to remove any member of the committee for misconduct, incompetency, or neglect of duty. The bill would require the committee to consist of 3 members actively engaged in the business of a licensed private investigator and 2 public begin delete members, as specified, end delete begin insert members end insert and would require members to be appointed for a term of 4 years. The bill would require the committee to meet every 60 days or more or less frequently as may be required, and would require that the members be paid per begin delete diem, as specified, end delete begin insert diem end insert and be reimbursed for actual travel expenses. The bill would require the committee to perform certain functions, including affirming, rescinding, or modifying all appealed decisions concerning administrative fines, or denial, suspension, or revocation of licenses, as specified. The bill would authorize the committee to grant a probationary license, certificate, registration, or permit with respect to appealed decisions, as specified. The bill would authorize a person licensed under the act to appeal the assessment of an administrative fine to the committee, and would authorize a person denied, suspended of, or revoked of a license begin delete under the act end delete to appeal to the committee, except as specified, if the appeal is in writing and made within 30 days of the assessment of the fine or denial, suspension, or revocation of the license. The bill would require the committee to notify the appellant in writing, by regular mail, of the committee’s decision within 30 days of that decision. The bill would also authorize the appellant to request a hearing, as specified, if, among other things, the appellant disagrees with the committee’s decision regarding the appeal. begin delete The bill would make the above provisions operative on July 1, 2017. end delete The bill would require that all evidence used by the bureau be provided to the committee prior to hearing an appeal. begin delete The end delete begin insert The bill would make the above provisions operative on July 1, 2017. end insert

begin insert This end insert bill would also authorize an applicant to, at his or her discretion, include a valid email address on the application.

begin insert

Existing law requires an applicant, or his or her manager, for a license as a private investigator to have had at least 3 years’ experience in investigation work. Existing law requires an applicant to substantiate the claimed years of qualifying experience and the exact details as to the character and nature thereof by written certifications from the employer, subject to independent verification by the Director of Consumer Affairs as he or she may determine. Under existing law, the business of each licensee is required to be operated under the active direction, control, charge, or management, in this state, of the licensee, if he or she is qualified, or the person who is qualified to act as the licensee’s manager, if the licensee is not qualified. Existing law prohibits a person from acting as a qualified manager of a licensee until he or she has complied with certain requirements.

end insert begin insert

This bill would additionally authorize that written certification to be from a qualified manager, as specified.

end insert begin insert

Existing law requires experience for purposes of taking the examination for licensure as a private investigator to be limited to those activities actually performed in connection with investigations, as defined, and only if those activities are performed by persons who are employed in certain specified capacities.

end insert begin insert

This bill would additionally authorize such activities to be performed by persons who are managed, as specified, in those capacities.

end insert

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

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

SECTION 1.  

Section 7519.1 is added to the Business and
Professions Code, immediately following Section 7519, to read:

7519.1.  

(a) The Governor shall appoint a Private Investigator
Disciplinary Review Committee, and may remove any member of
the committee for misconduct, incompetency, or neglect of duty.

(b) The committee shall consist of three members actively
engaged in the business of a licensed private investigator and two
public members. The public members shall not be licensees or
registrants, or engage in any business or profession in which any
part of the fees, compensation, or revenue thereof, is derived from
any licensee.

(c) The committee shall meet every 60 days or more or less
frequently as may be required. The members shall be paid per diem
pursuant to Section 103 and shall be reimbursed for actual travel
expenses. The members shall be appointed for a term of four years.

(d) This section shall become operative on July 1, 2017.

SEC. 2.  

Section 7519.2 is added to the Business and Professions
Code, to read:

7519.2.  

(a) The Private Investigator Disciplinary Review
Committee shall perform the following functions:

(1) Affirm, rescind, or modify all appealed decisions concerning
administrative fines assessed by the bureau against private
investigators.

(2) Affirm, rescind, or modify all appealed decisions concerning
denial, suspension, or revocation of licenses, and certificates,
registrations, or permits issued by the bureau, except begin delete denials end delete
begin insert denials, end insert suspensions, or revocations ordered by the director in
accordance with Chapter 5 (commencing with Section 11500) of
begin insert Part 1 of end insert Division 3 of Title 2 of the Government Code.

(b) The committee may grant a probationary license, certificate,
registration, or permit with respect to the appealed decisions
described in subdivision (a).

(c) This section shall become operative on July 1, 2017.

SEC. 3.  

Section 7519.3 is added to the Business and Professions
Code, to read:

7519.3.  

(a) (1) A person licensed with the department under
this chapter may appeal the assessment of an administrative fine
to the Private Investigator Disciplinary Review Committee. A
person denied, suspended of, or revoked of a license under this
chapter may appeal to the committee, unless the denial, suspension,
or revocation of the license is ordered by the director in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.

(2) A request for an appeal to the committee shall be made in
a written notice to the department within 30 days of the assessment
of an administrative fine or denial, suspension, or revocation of a
license.

(3) Following review by the committee of the appeal, the
appellant shall be notified in writing, by regular mail, within 30
days of the committee’s decision on the appeal.

(4) If the appellant disagrees with the decision made by the
committee, the appellant may request a hearing as described in
subdivision (b). A request for a hearing following a decision by
the committee shall be made by written notice to the department
within 30 days following notice of the committee’s decision.

(5) If the appellant does not request a hearing within those 30
days, the committee’s decision shall become final.

(b) (1) A person licensed with the department under this chapter
may request a hearing in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code if he or she contests an assessment of an
administrative fine, or to appeal a denial, suspension, or revocation
of a license. A hearing may also be requested, if the appellant
disagrees with the decision made by the committee.

(2) A request for a hearing shall be made by written notice to
the department within 30 days following the issuance of the
decision by the committee. A hearing pursuant to this subdivision
shall be available only after a review by the committee.

(c) This section shall become operative on July 1, 2017.

SEC. 4.  

Section 7519.4 is added to the Business and Professions
Code, to read:

7519.4.  

(a) The Private Investigator Disciplinary Review
Committee shall be provided all evidence used by the bureau in
reaching its decision prior to hearing an appeal.

(b) This section shall become operative on July 1, 2017.

SEC. 5.  

Section 7525.1 of the Business and Professions Code,
as amended by Section 4 of Chapter 669 of the Statutes of 2014,
is amended to read:

7525.1.  

An application shall be verified and shall include:

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

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

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

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

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

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

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

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

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

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

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

(k) At the discretion of the applicant, a valid email address.

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

SEC. 6.  

Section 7525.1 of the Business and Professions Code,
as added by Section 5 of Chapter 669 of the Statutes of 2014, is
amended to read:

7525.1.  

An application shall be verified and shall include:

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

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

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

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

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

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

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

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

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

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

(j) At the discretion of the applicant, a valid email address.

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

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 7541 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7541.  

Except as otherwise provided by this section, an
applicant, or his or her manager, for a license as a private
investigator shall have had at least three years’ experience in
investigation work.

A year’s experience shall consist of not less than 2,000 hours of
actual compensated work performed by each applicant preceding
the filing of an application.

An applicant who holds a law degree or who has completed a
four-year course in police science, criminal justice, criminal law,
or the equivalent thereof shall be required to have had two years’
experience in investigation work.

An applicant shall substantiate the claimed years of qualifying
experience and the exact details as to the character and nature
thereof by written certifications from the begin delete employer, end delete begin insert employer or
qualified manager, end insert subject to independent verification by the
director as he or she may determine.

Notwithstanding any other begin delete provision of end delete law, only an begin delete employer end delete
begin insert employer, qualified manager, end insert or his or her designated agent may
certify experience for purposes of this section. For purposes of
this section, the term “employer” shall mean only those persons,
corporations, partnerships, proprietorships, or other associations
which, in the employ of the designated individual, regularly and
routinely withheld income taxes and other payroll deductions for
direct forwarding to governmental taxing authorities. begin insert For the
purposes of this section, the term “qualified manager” shall mean
only a manager who has qualified pursuant to Section 7536. end insert

An employer who is a licensee begin insert or qualified manager end insert shall
respond in writing within 30 days to an applicant’s written request
for certifications of the applicant’s work experience as an employee
and either provide the certifications or the reasons for denial. If
the applicant notifies the director in writing, under penalty of
perjury, that the applicant is unable to obtain the required written
response from a licensee or provides the licensee’s written denial
and states, under penalty of perjury, that the licensee’s reasons for
denial are invalid or insufficient and the director concurs, the
director may require the licensee to provide the bureau with all
relevant employment records maintained pursuant to Section
7531.5 regarding the applicant for evaluation in substantiating the
applicant’s employment experience.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 7541.1 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7541.1.  

(a) Notwithstanding any other begin delete provision of end delete law,
experience for purposes of taking the examination for licensure as
a private investigator shall be limited to those activities actually
performed in connection with investigations, as defined in Section
7521, and only if those activities are performed by persons who
are employed begin insert or managed end insert in the following capacities:

(1) Sworn law enforcement officers possessing powers of arrest
and employed by agencies in the federal, state, or local government.

(2) Military police of the armed forces of the United States or
the begin delete national guard. end delete begin insert National Guard. end insert

(3) An insurance adjuster or their employees subject to Chapter
1 (commencing with Section 14000) of Division 5 of the Insurance
Code.

(4) Persons employed by a private investigator who are duly
licensed in accordance with this begin delete chapter. end delete begin insert chapter, or managed by
a qualified manager in accordance with Section 7536. end insert

(5) Persons employed by repossessors duly licensed in
accordance with Chapter 11 (commencing with Section 7500),
only to the extent that those persons are routinely and regularly
engaged in the location of debtors or the location of personal
property utilizing methods commonly known as “skip tracing.”
For purposes of this section, only that experience acquired in that
skip tracing shall be credited toward qualification to take the
examination.

(6) Persons duly trained and certified as an arson investigator
and employed by a public agency engaged in fire suppression.

(7) Persons trained as investigators and employed by a public
defender to conduct investigations.

(b) For purposes of Section 7541, persons possessing an
associate of arts degree in police science, criminal law or justice
from an accredited college shall be credited with 1,000 hours of
experience in investigative activities.

(c) The following activities shall not be deemed to constitute
acts of investigation for purposes of experience toward licensure:

(1) The serving of legal process or other documents.

(2) Activities relating to the search for heirs or similar searches
which involve only a search of public records or other reference
sources in the public domain.

(3) The transportation or custodial attendance of persons in the
physical custody of a law enforcement agency.

(4) The provision of bailiff or other security services to a court
of law.

(5) The collection or attempted collection of debts by telephone
or written solicitation after the debtor has been located.

(6) The repossession or attempted repossession of personal
property after that property has been located and identified.

(d) Where the activities of employment of an applicant include
those which qualify as bona fide experience as stated in this section
as well as those which do not qualify, the director may, by
delegation to the bureau, determine and apportion that percentage
of experience for which any applicant is entitled to credit.