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H.B. 368






Sponsor: Susan J. Koehn

10    This act affects sections of Utah Code Annotated 1953 as follows:
11    AMENDS:
12         53-9-102, as enacted by Chapter 314, Laws of Utah 1995
13         53-9-103, as enacted by Chapter 314, Laws of Utah 1995
14         53-9-104, as last amended by Chapter 243, Laws of Utah 1996
15         53-9-105, as enacted by Chapter 314, Laws of Utah 1995
16         53-9-107, as enacted by Chapter 314, Laws of Utah 1995
17         53-9-108, as enacted by Chapter 314, Laws of Utah 1995
18         53-9-109, as enacted by Chapter 314, Laws of Utah 1995
19         53-9-110, as enacted by Chapter 314, Laws of Utah 1995
20         53-9-111, as enacted by Chapter 314, Laws of Utah 1995
21         53-9-112, as enacted by Chapter 314, Laws of Utah 1995
22         53-9-113, as enacted by Chapter 314, Laws of Utah 1995
23         53-9-115, as enacted by Chapter 314, Laws of Utah 1995
24         53-9-116, as enacted by Chapter 314, Laws of Utah 1995
25         53-9-117, as enacted by Chapter 314, Laws of Utah 1995
26         53-9-118, as enacted by Chapter 314, Laws of Utah 1995
27         53-9-119, as enacted by Chapter 314, Laws of Utah 1995

2         53-9-114, as enacted by Chapter 314, Laws of Utah 1995
3         53-9-120, as enacted by Chapter 314, Laws of Utah 1995
4    Be it enacted by the Legislature of the state of Utah:
5        Section 1. Section 53-9-102 is amended to read:
6         53-9-102. Definitions.
7        In this chapter, unless otherwise stated:
8        (1) "Adequate records" means records containing, at a minimum, sufficient information
9    to identify the client, the dates of service, the fee for service, the payments for service, the type of
10    service given, and copies of any reports that may have been made.
11        (2) "Advertising" means the submission of bids, contracting or making known by any
12    public notice, publication, or solicitation of business, directly or indirectly, that services regulated
13    under this chapter are available for consideration.
14        (3) "Agency" means a person who [is licensed] holds an agency license pursuant to this
15    chapter, and includes one who employs an individual for wages and salary, and withholds all
16    legally required deductions and contributions, or contracts with a [registered private investigator]
17    registrant or an apprentice on a part-time or case-by-case basis to conduct an investigation on
18    behalf of the employer.
19        (4) "Applicant" means any person who has submitted a completed application and all
20    required fees.
21        (5) "Apprentice" means [any individual who holds an apprentice registration card] a person
22    who holds an apprentice license pursuant to this chapter, has not met the requirements for
23    registration, and works under the direct supervision and guidance of [a licensed private investigator
24    or registrant] an agency.
25        (6) "Board" means the Private Investigator Hearing and Licensure Board created in Section
26    53-9-104.
27        (7) "Commissioner" means the commissioner of the Department of Public Safety.
28        (8) "Conviction" means an adjudication of guilt by a federal, state, or local court resulting
29    from trial or plea, including a plea of no contest, regardless of whether the imposition of sentence
30    was suspended.
31        (9) "Department" means the Department of Public Safety.

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1        (10) "Direct supervision" means that the agency or employer is responsible for, and
2    authorizes, the type and extent of work assigned; reviews and approves all work produced by the
3    apprentice before it goes to the client; and closely supervises and provides direction and guidance
4    to the apprentice in the performance of his assigned work.
5        [(10)] (11) "Emergency action" means a summary suspension of a license pending
6    revocation, suspension, or probation in order to protect the public health, safety, or welfare.
7        [(11)] (12) "Employee" means an individual who works for an agency or other employer,
8    is listed on the agency's or employer's payroll records, and is under the agency's or employer's
9    direction and control. An employee is not an independent contractor.
10        [(12)] (13) "Identification card" means a card issued by the commissioner to a qualified
11    applicant for [a private investigator] an agency, registrant, or apprentice license[, and partners or
12    corporate associates working under the license, or a registration card issued to an employee,
13    apprentice, or registrant].
14        [(13)] (14) "Letter of concern" means an advisory letter to notify a [private investigator]
15    licensee that while there is insufficient evidence to support probation, suspension, or revocation
16    of a license, the department [believes] informs the [private investigator should] licensee of the
17    need to modify or eliminate certain practices and that continuation of the activities that led to the
18    information being submitted to the department may result in further disciplinary action against the
19    [private investigator's] license [or registration].
20        [(14)] (15) "Licensee" means a person to whom [a private investigator] an agency,
21    registrant, or apprentice license is issued [and who is authorized to be an agency] by the
22    department.
23        [(15)] (16) (a) "Private investigator or private detective" means any person [licensed under
24    this section], except collection agencies and credit reporting agencies, who, for consideration,
25    engages in business or accepts employment to conduct any investigation for the purpose of
26    obtaining information with reference to:
27        (i) crime, [wrongs done] wrongful acts, or threats against the United States or any state or
28    territory of the United States;
29        (ii) the identity, reputation, character, habits, conduct, business occupation, honesty,
30    integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movements,
31    whereabouts, affiliations, associations, or transactions, [reputation, or character] of any person or

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1    group of persons;
2        (iii) the credibility of witnesses or other persons;
3        (iv) the whereabouts of missing persons or owners of abandoned property;
4        (v) the causes and origin of, or responsibility for a fire, libel, slander, a loss, an accident,
5    damage, or an injury to real or personal property;
6        (vi) the business of securing evidence to be used before investigating committees or boards
7    of award or arbitration or in the trial of civil or criminal cases and the trial preparation;
8        (vii) the prevention, detection, and removal of installed devices for eavesdropping or
9    observation;
10        (viii) the business of "skip tracing" persons who have become delinquent in their lawful
11    debts, either when hired by an individual, collection agency, or through the direct purchase of the
12    debt from a financial institution or entity owning the debt or judgment; or
13        (ix) serving civil process.
14        (b) "Private investigator or private detective" does not include:
15        (i) any person or employee conducting an investigation on [their] the person's or
16    employee's own behalf or on behalf of [their] the employer if the employer is not a private
17    investigator under this chapter; or
18        (ii) an employee of an attorney licensed to practice law in this state.
19        [(16)] (17) "Qualifying party" means the individual meeting the qualifications under this
20    chapter for a private investigator license.
21        [(17)] (18) "Registrant" means any [individual who has met the requirements for
22    registration in the private investigator profession] person who holds a registrant license pursuant
23    to this chapter. The registrant performs private investigative work either as an employee on an
24    employer's payroll or, on a contract with an agency, part-time, or case-by-case basis, with a
25    minimum amount of direction.
26        [(18)] (19) "Restructuring" means any change in [a business'] the legal status of a business.
27        [(19)] (20) "Unprofessional conduct" means any of the following:
28        (a) engaging or offering to engage by fraud or misrepresentation in any activities regulated
29    by this chapter;
30        (b) aiding or abetting a person who is not licensed pursuant to this chapter in representing
31    that person as a private investigator or registrant in this state;

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1        (c) gross negligence in the practice of a private investigator or registrant;
2        (d) failing or refusing to maintain adequate records and investigative findings on a subject
3    of investigation or a client;
4        (e) committing a felony or a misdemeanor involving any crime that is grounds for denial,
5    suspension, or revocation of [a private investigator license or registrant card] an agency, registrant,
6    or apprentice license. In all cases, conviction by a court of competent jurisdiction or a plea of no
7    contest is conclusive evidence of the commission of the crime; or
8        (f) making a fraudulent or untrue statement to the board, department, or its investigators,
9    staff, or consultants.
10        Section 2. Section 53-9-103 is amended to read:
11         53-9-103. Commissioner of Public Safety to administer -- Duties -- Records -- Bonds
12     -- Rulemaking.
13        (1) The commissioner of the Department of Public Safety shall administer this chapter.
14        (2) The commissioner shall keep records of:
15        (a) all applications for licenses under this chapter; and
16        (b) all bonds and proof of workers' compensation required to be filed.
17        (3) [Records] The records shall include statements as to whether a license or renewal
18    license has been issued for each application and bond.
19        (4) If a license is revoked, suspended, canceled, or denied or if a licensee is placed on
20    probation, the date of filing the order for revocation, suspension, cancellation, denial, or probation
21    shall be included.
22        (5) The commissioner shall maintain a list of all [individuals, firms, partnerships,
23    associations, or corporations] licensees that have had a license revoked, suspended, placed on
24    probation, or canceled and a written record of complaints filed against licensees [and registrants].
25        (6) The commissioner may make rules in accordance with Title 63, Chapter 46a, Utah
26    Administrative Rulemaking Act, necessary to administer this chapter.
27        Section 3. Section 53-9-104 is amended to read:
28         53-9-104. Board -- Creation-- Qualifications -- Appointments -- Terms -- Immunity.
29        (1) There is established a Private Investigator Hearing and Licensure Board consisting of
30    five members appointed by the commissioner.
31        (2) Each member of the board shall be a citizen of the United States and a resident of this

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1    state at the time of appointment.
2        (a) Two members shall be qualifying parties who are licensed as provided in this chapter.
3        (b) One member shall be a supervisory investigator from the commissioner's office.
4        (c) One member shall be a chief of police or sheriff.
5        (d) One member shall be a public member who shall not have a financial interest in a
6    private investigative agency and shall not have an immediate family member or a household
7    member or friend who is licensed or registered under this chapter.
8        [(3) (a) Except as required by Subsection (b), as terms of current board members expire,
9    the commissioner shall appoint each new member or reappointed member to a four-year term.]
10        [(b) Notwithstanding the requirements of Subsection (a), the commissioner shall, at the
11    time of appointment or reappointment, adjust the length of terms to ensure that the terms of board
12    members are staggered so that approximately half of the board is appointed every two years.]
13        (3) (a) Each member of the board shall serve four-year staggered terms beginning and
14    ending on January 1.
15        (b) Notwithstanding the term requirements of Subsection (3)(a), the commissioner may
16    adjust the length of terms to ensure the terms of board members are staggered so that
17    approximately one member of the board is appointed every year.
18        (4) When a vacancy occurs in the membership for any reason, the replacement shall be
19    appointed for the unexpired term.
20        (5) At its first meeting every year, the board shall elect a chair, vice chair, and secretary
21    from its membership.
22        (6) (a) (i) Members who are not government employees shall receive no compensation or
23    benefits for their services, but may receive per diem and expenses incurred in the performance of
24    the member's official duties at the rates established by the Division of Finance under Sections
25    63A-3-106 and 63A-3-107.
26        (ii) Members may decline to receive per diem and expenses for their service.
27        (b) (i) State government officer and employee members who do not receive salary, per
28    diem, or expenses from their agency for their service may receive per diem and expenses incurred
29    in the performance of their official duties from the board at the rates established by the Division
30    of Finance under Sections 63A-3-106 and 63A-3-107.
31        (ii) State government officer and employee members may decline to receive per diem and

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1    expenses for their service.
2        (7) A member shall not serve more than one term, except that a member appointed to fill
3    a vacancy or appointed for an initial term of less than four years [under Subsection (3)] may be
4    reappointed for one full term.
5        (8) The commissioner, after a board hearing and recommendation, may remove any
6    member of the board for misconduct, incompetency, or neglect of duty.
7        (9) Members of the board are immune from suit with respect to all acts done and actions
8    taken in good faith in furtherance of the purposes of this chapter.
9        Section 4. Section 53-9-105 is amended to read:
10         53-9-105. Powers and duties of the board.
11        (1) The board shall:
12        (a) review all applications for [licensing, registration,] licenses and renewals of licenses
13    for private investigators [and agencies] and make recommendations to the commissioner for
14    approval or disapproval; and
15        (b) review all complaints and make recommendations to the commissioner regarding
16    disciplinary action.
17        (2) The board may take and hear evidence, administer oaths and affirmations, and compel
18    by subpoena the attendance of witnesses and the production of books, papers, records, documents,
19    and other information relating to a formal complaint against or department investigation of a
20    private investigator.
21        Section 5. Section 53-9-107 is amended to read:
22         53-9-107. Classification of licenses -- License required to act.
23        (1) Every person applying for a license under this chapter shall indicate on the application
24    which of the following licenses he is applying for:
25        (a) an agency license shall be issued to [applicants] an applicant who [meet] meets the
26    requirements of [Section] Subsection 53-9-108(1) and Section 53-9-109;
27        (b) a [person] registrant license shall be issued [a registration if he meets] to an applicant
28    who meets the requirements of [Subsection 53-9-110(1)] Subsection 53-9-108(2) and Section
29    53-9-110; or
30        (c) [a person meeting the requirements of Subsection 53-9-110(2)] an apprentice license
31    shall be issued [an apprentice registration card] to an applicant who meets the requirements of

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1    Subsection 53-9-108(3) and Section 53-9-110.
2        (2) A person may not act or assume to act as, or represent himself to be[,] a licensee [or
3    registrant] unless [he] the person is licensed [or registered] under this chapter, and a person may
4    not falsely represent [that he is] to be employed by [a licensee or] an agency.
5        (3) Unless licensed under this chapter, a person may not act or assume to act, or represent
6    himself to be a private investigator or private detective as defined in Subsection 53-9-102(16) or
7    conduct any investigation as provided in Subsection 53-9-102(16).
8        Section 6. Section 53-9-108 is amended to read:
9         53-9-108. Qualifications for licensure.
10        (1) (a) An applicant for an agency license [or registration] under this chapter shall be at
11    least 21 years of age, a citizen or legal resident of the United States, of good moral character[,
12    and].
13        (b) An applicant may not have been:
14        (i) [have been] convicted of a felony;
15        (ii) [have been] convicted of any act involving illegally using, carrying, or possessing a
16    dangerous weapon;
17        (iii) [have been] convicted of any act of personal violence or force on any person or
18    convicted of threatening to commit any act of personal violence or force against another person;
19        (iv) [have been] convicted of any act constituting dishonesty or fraud;
20        (v) [have been] convicted of any act involving moral turpitude;
21        (vi) [be] placed on probation[,] or parole[, or];
22        (vii) named in an outstanding arrest warrant; or
23        (viii) convicted of illegally obtaining or disclosing private, controlled, or protected records
24    as provided in Section 63-2-801.
25        [(b)] (c) If previously or currently licensed in another state or jurisdiction, the applicant
26    shall be in good standing within that state or jurisdiction.
27        [(c)] (d) [All applicants] An applicant shall have [had] completed a minimum of two years,
28    or 2,000 hours, of investigative experience that consists of actual work performed as [an
29    investigator] a private investigator for a private agency, the federal government, or a state, county,
30    or municipal government.
31        [(d)] (e) Applicants for an agency license shall substantiate investigative work experience

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1    claimed as years of qualifying experience and provide the exact details as to the character and
2    nature of the experience on a form prescribed by the department and certified by the applicant's
3    employers. This certification is subject to independent verification by the board. If applicants are
4    unable to supply written certification from an employer in whole or in part, applicants may offer
5    written certification from persons other than an employer covering the same subject matter for
6    consideration by the board. The [burden of proving] applicant shall prove completion of the
7    required experience [is on the applicant].
8        (2) An applicant for [registration] a registrant license shall meet all [of the above]
9    qualification standards of this section, except Subsection[(c)] (1)(d). An applicant [must] shall
10    have [had] a minimum of one year, or 1,000 hours, of investigative experience that consists of
11    actual work performed as [an investigator] a private investigator for a private agency, the federal
12    government, a state, county, or municipal government. A licensed registrant may not advertise his
13    services or conduct investigations for the general public, may not employ other private
14    investigators or hire them as independent contractors, and shall only work as an employee of, or
15    an independent contractor with, licensed agencies as provided in Subsection 53-9-102(17).
16        (3) An applicant for an apprentice [registration] license, lacking the experience required
17    for a [registration, must] registrant license, shall meet all of the qualification standards in
18    Subsection (1), except Subsection (1)(d) and complete an [apprenticeship] apprentice application
19    [and]. An apprentice shall work under the [close] direct supervision and guidance of a licensed
20    [Private Investigative Agency] agency, full-time for one year, or 1,000 hours, prior to [being
21    eligible] eligibility for [registration to work alone as a registered employee or contract] a registrant
22    license. [After completing the requirements, the apprentice will be eligible to apply for
23    registration.] A licensed apprentice may not advertise his services or conduct investigations for
24    the general public, may not employ other private investigators, and shall only work under the
25    direction of a licensed agency as provided in Subsection 53-9-102(5).
26        (4) [An applicant having a law-enforcement degree or POST certification may apply to
27    the board for registration. The decision of the board is final.] An applicant for an agency,
28    registrant, or apprentice license may be eligible for a license without meeting all or part of the
29    investigative work experience required by this section if the applicant:
30        (a) has a criminal justice degree from an accredited college or university;
31        (b) is certifiable by Peace Officer Standards and Training; or

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1        (c) can substantiate other similar law enforcement or investigative training in the areas
2    set forth in Subsection 53-9-102(16). The board shall determine whether or not training may
3    replace the work experience requirement and to what extent.
4        Section 7. Section 53-9-109 is amended to read:
5         53-9-109. Application for agency license -- Bond -- Workers' compensation.
6        (1) Every application for an agency license to engage in the private investigative business
7    shall set forth information to assist the commissioner in determining the applicant's ability to meet
8    the requirements prescribed in this chapter and contain the following:
9        (a) the full name and business address of the applicant;
10        (b) two passport-size color photographs of the applicant;
11        (c) the name under which the applicant intends to do business;
12        (d) a statement that the applicant intends to engage in the private investigative business;
13        [(e) if the applicant is other than an individual, the full name and business address of each
14    of its associates;]
15        [(f)] (e) a verified statement of the applicant's experience and qualifications; and
16        [(g)] (f) the fee prescribed in Section 53-9-111. [Only one agency fee is required for the
17    licensee, associates and noninvestigative employees of each licensed agency.]
18        (2) Before the issuance of an original or renewal agency license, the applicant shall
19    provide to the department:
20        (a) a surety bond in the amount of $10,000; and
21        (b) a certificate of workers' compensation insurance, if applicable.
22        (3) The bond shall be executed and acknowledged by the applicant as principal and by a
23    corporation licensed to transact fidelity and surety business in this state as surety. The bond shall
24    be continuous in form and shall run concurrently with the license period. The bond required by
25    this chapter shall be in favor of the state for the benefit of any person injured by any acts of a
26    private investigator, his agency, or his employees and is subject to claims by any person who is
27    injured by those acts.
28        (4) The commissioner shall cancel the agency license of any licensed agency on the
29    cancellation of the surety bond. The qualifying party may reinstate the license on filing:
30        (a) a surety bond that is concurrent with the remainder of the license period; and
31        (b) payment of the reinstatement fee prescribed under Section 53-9-111.

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1        Section 8. Section 53-9-110 is amended to read:
2         53-9-110. Application for registrant and apprentice licenses.
3        (1) Every application for [registration] a registrant or apprentice license shall provide
4    information to assist the commissioner in determining the applicant's ability to meet the
5    requirements prescribed in this chapter and contain the following:
6        (a) the full name and address of the applicant;
7        (b) two passport-size color photographs of the applicant;
8        (c) the name of the licensed agency for which the applicant will be an employee,
9    apprentice, or contract registrant, if applicable;
10        (d) authorization of the [qualifying party] licensed agency or his designee to [issue an
11    employee, apprentice, or contract registration] employ the apprentice or contract with the
12    registrant, if applicable; and
13        (e) a verified statement of the applicant's experience and qualifications.
14        (2) An application for [an employee, apprentice, or contract registration] a registrant or
15    apprentice license or renewal shall be accompanied by:
16        (a) the fee prescribed in Section 53-9-111; and
17        (b) a surety bond in the amount of $10,000.
18        [(3) An original employee, apprentice, or contract registration is valid from the date of
19    issuance to the date of expiration of the agency license under which the employee, apprentice, or
20    contract registrant is employed. The renewal period of an employee, apprentice, or contract
21    registration runs concurrently with the agency license. An employee, apprentice, or contract
22    registration may be denied as described in Subsections 58-9-113(2) and (3) and shall be canceled
23    upon the cancellation, termination, or revocation of the agency license under which the employee
24    or contract registration is issued.]
25        [(4) An employee or apprentice registration or renewal shall not be issued to an applicant
26    unless the employer has on file with the department evidence of current workers' compensation
27    coverage and may be reinstated only on verification of the reinstatement of workers' compensation
28    coverage and payment of the reinstatement fee prescribed in Section 53-9-111. This does not
29    apply to the contract registrant.]
30        Section 9. Section 53-9-111 is amended to read:
31         53-9-111. License and registration fees -- Deposit in General Fund.

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1        (1) Fees for licensure[, registration,] and renewal shall be as follows:
2        (a) for an original agency license application, and license, $200, plus an additional fee for
3    the costs of fingerprint processing and background investigation;
4        (b) for the renewal of an agency license, $100;
5        (c) for an original registrant or apprentice license application [for registration,] and license,
6    $100 plus an additional fee for the costs of fingerprint processing and background investigation;
7        (d) for the renewal of [each registration] a registrant or apprentice license, $50;
8        [(e) for an original application for an apprentice registration, $100 plus an additional fee
9    for the costs of fingerprint processing and background investigation;]
10        [(f) for the renewal of each apprentice registration, if necessary due to lack of required
11    hours, $50;]
12        [(g)] (e) for filing an agency renewal application more than 30 days after the expiration
13    date of the license, a delinquency fee of $50;
14        [(h)] (f) for filing a registrant or apprentice renewal application more than 30 days after
15    the expiration date of the registration, a delinquency fee of $30;
16        [(i) for filing an apprentice renewal application more than 30 days after the expiration date
17    of the apprentice license, a delinquency fee of $30;]
18        [(j)] (g) for the reinstatement of [an agency] any license, $50;
19        [(k)] (h) for a duplicate identification card, $10; and
20        [(l) for reinstatement of an identification card, $10; and]
21        [(m)] (i) for the fingerprint processing fee, an amount that does not exceed the cost to the
22    department charged by the Federal Bureau of Investigation for fingerprint processing for the
23    purpose of obtaining federal criminal history record information.
24        (2) The commissioner may renew a license [or registration] granted under this chapter
25    upon receipt of an application on forms as prescribed by the commissioner and upon receipt of the
26    fees prescribed in Subsection (1). The renewal of [an agency] a license [or registration] requires
27    the filing of a surety bond as described in Subsections 53-9-109(2) and (3). Renewal of a license
28    [or registration] shall not be granted more than 90 days after expiration. A licensee [or registrant]
29    may not engage in any activity subject to this chapter during any period between the date of
30    expiration of the license [or registration] and the renewal of the license [or registration].
31        (3) The commissioner shall renew a suspended license [or registration] as provided in this

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1    chapter. Renewal of the license [or registration] does not entitle the licensee [or registrant,] while
2    the license [or registration] remains suspended and until it is reinstated, to engage in any activity
3    regulated by this chapter, or in any other activity or conduct in violation of the order or judgment
4    by which the license [or registration] was suspended.
5        (4) The commissioner shall not reinstate a revoked license [or registration] or accept an
6    application for a license [or registration] from a person whose license [or registration] has been
7    revoked for at least one year from the date of revocation.
8        (5) All fees, except the fingerprint processing fee, collected by the department under this
9    section shall be deposited in the General Fund.
10        Section 10. Section 53-9-112 is amended to read:
11         53-9-112. Issuance of license and identification card to applicant -- License period
12     -- Expiration of application -- Transfer of license prohibited.
13        (1) The commissioner shall issue [an agency] a license to an applicant who complies with
14    the provisions of this chapter. Each license issued under this chapter shall:
15        (a) contain the name and address of the licensee and the number of the license;
16        (b) its agency, registrant, or apprentice license designation; and [shall]
17        (c) be issued for a period of two years.
18        (2) On the issuance of a license, an identification card of dimensions 2-1/2 x 4-1/2 inches
19    will be issued without charge to the licensee [if an individual, or if the licensee is other than an
20    individual, to each of its associates, and is evidence the licensee and his associates are licensed
21    pursuant to this chapter]. The card shall state on its face whether the bearer holds an agency,
22    registrant, or apprentice license.
23        (3) [If a person to whom the card of a licensee other than an individual is issued terminates
24    his position, office, or association with the licensee, he shall surrender the card to the licensee and
25    within five days thereafter the licensee shall mail or deliver the card to the commissioner for
26    cancellation.] A registrant identification card shall state that the licensee is under the direction of
27    a licensed agency and may not do investigative work independently for the public. An apprentice
28    identification card shall state that the licensee is under the direct supervision of a licensed agency,
29    and may not do investigative work independently for the public. Upon request, the licensee shall
30    immediately identify the name, business address, and phone number of the licensed agency for
31    which the licensee is an employee or independent contractor.

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1        (4) On notification by the commissioner to an applicant that the [agency] license is not
2    complete, or is not ready for issuance pending additional information, the applicant shall complete
3    the application process and provide the additional information within 90 days. Failure to complete
4    the process shall result in the application being cancelled and all fees forfeited. Subsequent
5    application by the same applicant requires the payment of all application and license fees
6    prescribed in Section 53-9-111.
7        (5) A licensee shall notify the commissioner of any change in the name or address of his
8    business [and of any change of associates] within [30] 60 days of the change. Failure to so notify
9    the commissioner of any change in name or address will result in the automatic suspension of the
10    license. To relieve the suspension, the licensee must apply for reinstatement and pay the fee
11    prescribed in Subsection 53-9-111(1)(g).
12        [(6) All new associates shall submit applications on forms prescribed by the commissioner.
13    Upon board approval, identification cards will be issued without charge.]
14        [(7)] (6) A license issued under this chapter is not transferable or assignable.
15        Section 11. Section 53-9-113 is amended to read:
16         53-9-113. Grounds for denial of a license -- Appeal.
17        (1) The board may deny [an agency] a license or the renewal of [an agency] a license if
18    the applicant has:
19        (a) committed an act that, if committed by a licensee, would be grounds for probation,
20    suspension, or revocation of a license under this chapter;
21        (b) [has] employed [a business associate that is] or contracted with a person who has been
22    refused a license under this chapter or who has had a license revoked;
23        (c) while not licensed under this chapter, committed, or aided and abetted the commission
24    of, any act for which a license is required by this chapter; or
25        (d) knowingly made a material misstatement in connection with an application for a
26    license or renewal of a license.
27        [(2) The board may deny the issuance of an identification card to an applicant for an
28    agency, associate, or employee or contract registrant if the applicant fails to meet the qualifications
29    in Section 53-9-108.]
30        [(3)] (2) The denial of the issuance of [an identification card or] a license under this
31    chapter shall be in writing and describe the basis for the denial. The denial shall inform the

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1    applicant that if the applicant desires a hearing to contest the denial, he shall submit a request in
2    writing to the board within 30 days after the issuance of the denial. The board shall schedule a
3    hearing for the next board meeting[, but not later than 60 days after receipt of the request].
4        [(4)] (3) The decision of the board may be appealed to the commissioner, who may:
5        (a) return the case to the board for reconsideration;
6        (b) modify the board's decision; or
7        (c) reverse the board's decision.
8        [(5)] (4) The department shall promptly issue a final order of the commissioner and send
9    the order to the applicant. Decisions of the commissioner are subject to judicial review pursuant
10    to Section 63-46b-15.
11        Section 12. Section 53-9-115 is amended to read:
12         53-9-115. Business name and address -- Posting of license -- Advertising.
13        (1) [An agency] Subject to the provisions of this chapter, a licensee may conduct an
14    investigative business under a name other than the licensee's by complying with the requirements
15    of Title 42, Chapter 2, Conducting Business Under Assumed Name, and providing a copy of the
16    filed certificate to the commissioner. Failure to comply with this provision shall result in the
17    suspension of the license.
18        (2) Each [licensed agency] licensee shall have at least one physical location from which
19    the normal business of the agency is conducted. The address of this location shall be on file with
20    the commissioner at all times. This is not a public record pursuant to Subsection
21    63-2-301(1)(b)(ii).
22        (3) The license certificate issued by the commissioner shall be posted in a conspicuous
23    place in the principal office of the [private investigative agency] licensee.
24        (4) [A] Subject to the provisions of this chapter, a licensee may solicit business through
25    any accepted form of advertising.
26        (a) [All advertisements] Any advertisement shall contain the licensee's name and license
27    number as it appears on the license certificate.
28        (b) A licensee may not use false, deceptive, or misleading advertising.
29        Section 13. Section 53-9-116 is amended to read:
30         53-9-116. Divulging investigative information -- False reports prohibited.
31        (1) Except as otherwise provided by this chapter, a licensee[, associate, registrant, or

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1    apprentice of a licensee] may not divulge or release to anyone other than his client or employer the
2    contents of an investigative file acquired in the course of licensed investigative activity. However,
3    the board shall have access to investigative files if the client for whom the information was
4    acquired, or his lawful representative, alleges a violation of this chapter by the licensee [or a
5    registrant, the licensed agency or any employee] or if the prior written consent of the client to
6    divulge or release the information has been obtained.
7        (2) A licensee[, associate, registrant, apprentice, or employee of a licensee] may not
8    willfully make a false statement or report to a client, employer, the board, or any authorized
9    representative of the department, concerning information acquired in the course of activities
10    regulated by this chapter.
11        (3) The licensee shall submit investigative reports to a client at times and in the manner
12    agreed upon between the licensee and the client. Upon demand by the client, the licensee shall
13    divulge to the client the results of an investigation if payment in full has been tendered for the
14    charges levied. The licensee has full right to withdraw from any case and refund any portion of
15    a retainer for which investigative work has not been completed.
16        Section 14. Section 53-9-117 is amended to read:
17         53-9-117. Authority to investigate complaint -- Filing of complaints -- Response --
18     Retention of records.
19        (1) The commissioner or board may initiate an investigation of any [licensee, associate,
20    registrant, apprentice, employee, or] person [if they are] advertising [their] services or engaged in
21    performing services that require [licensure or registration] a license under this chapter and shall
22    investigate if a licensee or registrant is engaged in activities that do not comply with or are
23    prohibited by this chapter.
24        (2) The commissioner shall enforce the provisions of this chapter without regard to the
25    place or location in which a violation may have occurred, and on the complaint of any person, may
26    investigate any alleged violation of this chapter or the business and business methods of any
27    licensee, [registrant, or employee of a licensee] or applicant for licensure [or registration] under
28    this chapter.
29        (3) Complaints against any licensee[, associate, registrant, apprentice, or employee of a
30    licensee] shall be filed with the commissioner in writing on prescribed forms.
31        (a) Upon receipt of a complaint, the commissioner shall assign it to the board.

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1        (b) The board, through the department, will provide a copy of the complaint to the licensee
2    [and associate, registrant, apprentice, or employee and they] who shall answer the complaint in
3    writing within 15 working days of the date it is mailed by the department.
4        (4) In any investigation undertaken by the board or commissioner, each licensee[,]
5    [associate, registrant, apprentice, applicant, agency, or employee,] on request[,] shall provide
6    records and truthfully respond to questions concerning activities regulated under this chapter.
7        (a) These records shall be maintained for five years at the principal place of business of
8    the licensee or at another location approved by the board for a person whose license has been
9    terminated, canceled, or revoked.
10        (b) On request by the board during normal business hours or other time acceptable to the
11    parties, the records shall be made available immediately to the board unless the board determines
12    that an extension may be granted. The licensee shall provide copies of any business records
13    requested by the board or commissioner.
14        Section 15. Section 53-9-118 is amended to read:
15         53-9-118. Grounds for disciplinary action -- Types of action.
16        (1) The following constitute grounds for which disciplinary action may be taken against
17    a licensee[, associate, registrant, apprentice, or employee of the licensee] engaged in activities
18    regulated under this chapter:
19        (a) fraud or willful misrepresentation in applying for an original license or [registration]
20    renewal of an existing license [or registration];
21        (b) using any letterhead, advertising or other printed matter in any manner representing
22    that he is an instrumentality of the federal government, a state, or any political subdivision of a
23    state;
24        (c) using a name different from that under which he is currently licensed for any
25    advertising, solicitation, or contract to secure business unless the name is an authorized fictitious
26    name;
27        (d) impersonating, permitting, or aiding and abetting an employee [or registrant] to
28    impersonate a law enforcement officer or employee of the United States, any state, or a political
29    subdivision of a state;
30        (e) knowingly violating, advising, encouraging, or assisting the violation of any statute,
31    court order, or injunction in the course of a business regulated under this chapter;

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1        (f) falsifying fingerprints or photographs while operating under this chapter;
2        (g) conviction of a felony;
3        (h) conviction of any act involving illegally using, carrying, or possessing a dangerous
4    weapon;
5        (i) conviction of any act involving moral turpitude;
6        (j) conviction of any act of personal violence or force against any person or conviction of
7    threatening to commit any act of personal violence or force against any person;
8        (k) soliciting business for an attorney in return for compensation;
9        (l) conviction of any act constituting dishonesty or fraud;
10        (m) being placed on probation, parole, or named in an outstanding arrest warrant;
11        (n) committing, or permitting any [associate, registrant, or] employee or independent
12    contractor to commit any act during the period between the expiration of a license [or registration]
13    for failure to renew within the time fixed by this chapter, and the reinstatement of the license or
14    registration, that would be cause for the suspension or revocation of the license [or registration]
15    or grounds for denial of the application for the license [or registration];
16        (o) willfully neglecting to render to a client services or a report as agreed between the
17    parties and for which compensation has been paid or tendered in accordance with the agreement
18    of the parties. However, if the [investigator] licensee chooses to withdraw from the case and
19    returns the funds for work not yet [done] completed, no violation of this section exists;
20        (p) the unauthorized release of information acquired on behalf of a client by a licensee,
21    [associate, or registrant] its employee, an independent contractor, or an apprentice as a result of
22    activities regulated under this chapter;
23        (q) failing or refusing to cooperate with, misrepresenting to, or refusing access to the board
24    or an authorized representative of the department engaged in an official investigation pursuant to
25    this chapter;
26        (r) employing or contracting with any [unregistered or improperly registered person or]
27    unlicensed or improperly licensed person or agency to conduct activities regulated under this
28    chapter if the licensure [or registration] status was known or could have been ascertained by
29    reasonable inquiry;
30        (s) permitting, authorizing, aiding, or in any way assisting [a registered] an employee to
31    conduct services as described in this chapter on an independent contractor basis and not under the

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1    authority of the licensed agency;
2        (t) failure to maintain in full force and effect workers' compensation insurance, if
3    applicable;
4        (u) conducting private investigation services regulated by this chapter on a revoked or
5    suspended license [or registration];
6        (v) accepting employment, contracting, or in any way engaging in employment that has
7    an adverse impact on investigations being conducted on behalf of clients;
8        (w) advertising in a false, deceptive, or misleading manner;
9        (x) refusing to display the identification card issued by the department to any person
10    having reasonable cause to verify the validity of the license [or registration]; [or]
11        (y) committing any act of unprofessional conduct;
12        (z) conviction of any act of illegally obtaining or disseminating private, controlled, or
13    protected records under Section 63-2-801; or
14        (aa) engaging in any other conduct prohibited by this chapter.
15        (2) On completion of an investigation, the board may:
16        (a) dismiss the case;
17        (b) take emergency action;
18        (c) issue a letter of concern, if applicable;
19        (d) impose a fine not to exceed $500; or
20        (e) place all records, evidence findings, and conclusions and any other information
21    pertinent to the investigation in the confidential and protected records section of the file
22    maintained at the department.
23        (3) A letter of concern is a document that is retained and may be used in future disciplinary
24    actions against a licensee.
25        (4) If the board finds, based on its investigation, that the public health, safety, or welfare
26    requires emergency action, the board may order a summary suspension of a license [or registration]
27    pending proceedings for revocation or other action. If the board issues this order, the
28    commissioner shall issue to the licensee[, registrant, apprentice, or employee] a written notice of
29    complaint and formal hearing, setting forth the charges made against the licensee[, registrant,
30    apprentice, or employee and their] and the licensee's right to a formal hearing before the board
31    [within 60 days] at the next regularly scheduled board meeting.

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1        (5) If the board finds, based on the investigation, that a violation [of] under Subsection (1)
2    has occurred, notice will be sent to the licensee[, registrant, apprentice, or employee] of the results
3    of the hearing by mailing a true copy to the licensee's[, registrant's, apprentice's, or employee's]
4    last-known address in the department's files by certified mail, return receipt requested.
5        (6) Based on information the Private Investigator Hearing Board receives during a hearing
6    it may:
7        (a) dismiss the complaint if the board believes it is without merit;
8        (b) fix a period and terms of probation best adapted to educate the licensee[, registrant,
9    apprentice, or employee];
10        (c) place the license [or registration] on suspension for a period of not more than 12
11    months;
12        (d) revoke the license or registration; or
13        (e) impose a civil fine not to exceed $500.
14        [(7) On a finding by the board that a licensee committed a violation of Subsection (1), the
15    probation, suspension, or revocation applies to all licenses, registrations, or employees under the
16    agency license. If a registrant or apprentice committed a violation of Subsection (1), the probation,
17    suspension, or revocation applies only to the license or registrations held by an apprentice
18    registrant or registrant under this chapter.]
19        [(8)] (7) Appeal of the board's decision shall be made in writing to the commissioner
20    within 15 days of the date of issuance of the board's decision. The commissioner shall review the
21    finding by the board and may affirm, return to the board for reconsideration, reverse, adopt,
22    modify, supplement, amend, or reject the recommendation of the board.
23        [(9) A person may appeal the commissioner's decision to the district court pursuant to
24    Section 63-46b-15.]
25        (8) The department shall issue a final written order within 30 days outlining the
26    commissioner's decision on the appeal. The final order is final agency action for purposes of
27    judicial review under Section 63-46b-15.
28        [(10)] (9) All fines collected under this section shall be deposited in the General Fund.
29        Section 16. Section 53-9-119 is amended to read:
30         53-9-119. Violation -- Penalty.
31        [A licensee, registrant, or employee] Any person who violates any provision of this chapter

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1    is guilty of a class A misdemeanor.
2        Section 17. Repealer.
3        This act repeals:
4        Section 53-9-114, Duty of employer to issue identification card to registrant --
5     Temporary registration -- Denial -- Form of identification card.
6        Section 53-9-120, Grandfather provision.

Legislative Review Note
    as of 2-11-97 3:47 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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