S.B. 177 Enrolled

1

SECURITY AGENCY QUALIFICATION AMENDMENTS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Margaret Dayton
5 House Sponsor: Keith Grover
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Public Safety Code regarding licensure qualifications and
10 discipline of private investigators and exempts certified public accountants.
11 Highlighted Provisions:
12 This bill:
13 . modifies the licensure requirements for a private investigator agency and for a
14 private investigator registrant;
15 . increases the number of hours of experience required for licensure in each category;
16 . allows credit toward required hours of experience for certain educational degrees;
17 . requires a certificate of liability insurance for an agency and a surety bond for a
18 registrant or an apprentice; and
19 . clarifies that certified public accountants are exempted from licensure as a private
20 investigator.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 AMENDS:
27 53-9-102, as last amended by Laws of Utah 2003, Chapter 330
28 53-9-103, as last amended by Laws of Utah 2008, Chapter 382
29 53-9-105, as last amended by Laws of Utah 2003, Chapter 330

30 53-9-107, as last amended by Laws of Utah 1998, Chapter 212
31 53-9-108, as last amended by Laws of Utah 2008, Chapter 382
32 53-9-109, as last amended by Laws of Utah 1998, Chapter 212
33 53-9-110, as last amended by Laws of Utah 1998, Chapter 212
34 53-9-111, as last amended by Laws of Utah 1998, Chapter 212
35 53-9-113, as last amended by Laws of Utah 2008, Chapter 382
36 53-9-117, as last amended by Laws of Utah 1998, Chapter 212
37 53-9-118, as last amended by Laws of Utah 2008, Chapter 382
38 53-11-115, as enacted by Laws of Utah 1998, Chapter 257
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 53-9-102 is amended to read:
42 53-9-102. Definitions.
43 In this chapter, unless otherwise stated:
44 (1) "Adequate records" means records containing, at a minimum, sufficient information
45 to identify the client, the dates of service, the fee for service, the payments for service, the type
46 of service given, and copies of any reports that may have been made.
47 (2) "Advertising" means the submission of bids, contracting or making known by any
48 public notice, publication, or solicitation of business, directly or indirectly, that services
49 regulated under this chapter are available for consideration.
50 (3) "Agency" means a person who holds an agency license pursuant to this chapter, and
51 includes one who employs an individual for wages and salary, and withholds all legally
52 required deductions and contributions, or contracts with a registrant or an apprentice on a
53 part-time or case-by-case basis to conduct an investigation on behalf of the agency.
54 (4) "Applicant" means any person who has submitted a completed application and all
55 required fees.
56 (5) "Apprentice" means a person who holds an apprentice license pursuant to this
57 chapter, has not met the requirements for registration, and works under the direct supervision

58 and guidance of an agency.
59 (6) "Board" means the Private Investigator Hearing and Licensure Board created in
60 Section 53-9-104 .
61 (7) "Bureau" means the Bureau of Criminal Identification created in Section
62 53-10-201 .
63 (8) "Commissioner" means the commissioner of the Department of Public Safety.
64 (9) "Conviction" means an adjudication of guilt by a federal, state, or local court
65 resulting from trial or plea, including a plea of no contest, regardless of whether the imposition
66 of sentence was suspended.
67 (10) "Department" means the Department of Public Safety.
68 (11) "Direct supervision" means that the agency or employer:
69 (a) is responsible for, and authorizes, the type and extent of work assigned;
70 (b) reviews and approves all work produced by the apprentice before it goes to the
71 client;
72 (c) closely supervises and provides direction and guidance to the apprentice in the
73 performance of his assigned work; and
74 (d) is immediately available to the apprentice for verbal contact, including by
75 electronic means.
76 (12) "Emergency action" means a summary suspension of a license pending revocation,
77 suspension, or probation in order to protect the public health, safety, or welfare.
78 (13) "Employee" means an individual who works for an agency or other employer, is
79 listed on the agency's or employer's payroll records, and is under the agency's or employer's
80 direction and control. An employee is not an independent contractor.
81 (14) "Identification card" means a card issued by the commissioner to a qualified
82 applicant for an agency, registrant, or apprentice license.
83 (15) "Letter of concern" means an advisory letter to notify a licensee that while there is
84 insufficient evidence to support probation, suspension, or revocation of a license, the
85 department informs the licensee of the need to modify or eliminate certain practices and that

86 continuation of the activities that led to the information being submitted to the department may
87 result in further disciplinary action against the licensee.
88 (16) "Licensee" means a person to whom an agency, registrant, or apprentice license is
89 issued by the department.
90 (17) (a) "Private investigator or private detective" means any person, except collection
91 agencies and credit reporting agencies, who, for consideration, engages in business or accepts
92 employment to conduct any investigation for the purpose of obtaining information with
93 reference to:
94 (i) crime, wrongful acts, or threats against the United States or any state or territory of
95 the United States;
96 (ii) the identity, reputation, character, habits, conduct, business occupation, honesty,
97 integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movements,
98 whereabouts, affiliations, associations, or transactions of any person or group of persons;
99 (iii) the credibility of witnesses or other persons;
100 (iv) the whereabouts of missing persons or owners of abandoned property;
101 (v) the causes and origin of, or responsibility for a fire, libel, slander, a loss, an
102 accident, damage, or an injury to real or personal property;
103 (vi) the business of securing evidence to be used before investigating committees or
104 boards of award or arbitration or in the trial of civil or criminal cases and the trial preparation;
105 (vii) the prevention, detection, and removal of installed devices for eavesdropping or
106 observation;
107 (viii) the business of "skip tracing" persons who have become delinquent in their
108 lawful debts, either when hired by an individual, collection agency, or through the direct
109 purchase of the debt from a financial institution or entity owning the debt or judgment; or
110 (ix) serving civil process.
111 (b) "Private investigator or private detective" does not include:
112 (i) any person or employee conducting an investigation on the person's or employee's
113 own behalf or on behalf of the employer if the employer is not a private investigator under this

114 chapter; [or]
115 (ii) an employee of an attorney licensed to practice law in this state[.]; or
116 (iii) a currently licensed certified public accountant or CPA as defined in Section
117 58-26a-102 .
118 (18) "Qualifying party" means the individual meeting the qualifications under this
119 chapter for a private investigator license.
120 (19) "Registrant" means any person who holds a registrant license pursuant to this
121 chapter. The registrant performs private investigative work either as an employee on an
122 employer's payroll or, on a contract with an agency, part-time, or case-by-case basis, with a
123 minimum amount of direction.
124 (20) "Restructuring" means any change in the legal status of a business.
125 (21) "Unprofessional conduct" means any of the following:
126 (a) engaging or offering to engage by fraud or misrepresentation in any activities
127 regulated by this chapter;
128 (b) aiding or abetting a person who is not licensed pursuant to this chapter in
129 representing that person as a private investigator or registrant in this state;
130 (c) gross negligence in the practice of a private investigator or registrant;
131 (d) failing or refusing to maintain adequate records and investigative findings on a
132 subject of investigation or a client;
133 (e) committing a felony or a misdemeanor involving any crime that is grounds for
134 denial, suspension, or revocation of an agency, registrant, or apprentice license. In all cases,
135 conviction by a court of competent jurisdiction or a plea of no contest is conclusive evidence of
136 the commission of the crime; or
137 (f) making a fraudulent or untrue statement to the bureau, board, department, or its
138 investigators, staff, or consultants.
139 Section 2. Section 53-9-103 is amended to read:
140 53-9-103. Commissioner of Public Safety to administer -- Bureau to issue licenses
141 -- Records -- Bonds -- Rulemaking.

142 (1) The commissioner [of the Department of Public Safety] shall administer this
143 chapter.
144 (2) (a) The bureau, acting at the direction of the commissioner, shall issue a private
145 investigator license to any applicant [who] whom the board finds meets the qualifications for
146 licensure under [Section 53-9-108 ] this chapter.
147 (b) The bureau shall issue a license to [a qualified] an apprentice applicant who meets
148 the qualifications for licensure under this chapter within five business days of receipt of the
149 application.
150 (3) (a) The bureau shall keep records of:
151 (i) all applications for licenses under this chapter; and
152 (ii) all bonds and proof of certificates of liability and workers' compensation insurance
153 required to be filed.
154 (b) The records shall include statements as to whether a license or renewal license has
155 been issued for each application [and bond].
156 (4) If a license is revoked, suspended, canceled, or denied or if a licensee is placed on
157 probation, the date of filing the order for revocation, suspension, cancellation, denial, or
158 probation shall be included in the records.
159 (5) The bureau shall maintain:
160 (a) a list of all licensees whose license has been revoked, suspended, placed on
161 probation, or canceled; and
162 (b) a written record of complaints filed against licensees.
163 (6) The commissioner may make rules in accordance with Title 63G, Chapter 3, Utah
164 Administrative Rulemaking Act, as necessary to administer this chapter.
165 Section 3. Section 53-9-105 is amended to read:
166 53-9-105. Powers and duties of the board.
167 (1) The board shall:
168 (a) review [all] applications for licenses and renewals of licenses for private
169 investigators and [make recommendations to the commissioner for approval or disapproval]

170 approve or deny the applications;
171 (b) upon receiving a timely filed petition, review within a reasonable time the denial,
172 suspension, or revocation of a private investigator license; and
173 (c) review all complaints and make recommendations to the commissioner regarding
174 disciplinary action.
175 (2) The board may take and hear evidence, administer oaths and affirmations, and
176 compel by subpoena the attendance of witnesses and the production of books, papers, records,
177 documents, and other information relating to a formal complaint against or [department]
178 bureau investigation of a private investigator.
179 Section 4. Section 53-9-107 is amended to read:
180 53-9-107. Classification of licenses -- License required to act.
181 (1) Every person applying for a license under this chapter shall indicate on the
182 application which of the following licenses the applicant is applying for:
183 (a) an agency license shall be issued to an applicant who meets the agency
184 requirements of [Subsection] Sections 53-9-108 [(1)] and [Section] 53-9-109 ;
185 (b) a registrant license shall be issued to an applicant who meets the registrant
186 requirements of [Subsection] Sections 53-9-108 [(2)] and [Section] 53-9-110 ; or
187 (c) an apprentice license shall be issued to an applicant who meets the apprentice
188 requirements of [Subsection] Sections 53-9-108 [(3)] and [Section] 53-9-110 .
189 (2) Unless licensed under this chapter, a person may not:
190 (a) act or assume to act as, or represent himself to be:
191 (i) a licensee; or
192 (ii) a private investigator or private detective as defined in Subsection 53-9-102 (16) or
193 conduct any investigation as provided in Subsection 53-9-102 (16); or
194 (b) falsely represent to be employed by or for an independent contractor for an agency.
195 (3) A licensed registrant, as defined in Section 53-9-102 , may only work as an
196 employee of, or as an independent contractor for, an agency licensed under this chapter, and
197 may not:

198 (a) advertise the licensed registrant's services or conduct investigations for the general
199 public; or
200 (b) employ other private investigators or hire them as independent contractors.
201 (4) (a) A licensed apprentice, as defined in Section 53-9-102 , may only work under the
202 direct supervision and guidance of an agency licensed under this chapter, and may not:
203 (i) advertise the licensed apprentice's services or conduct investigations for the general
204 public;
205 (ii) employ other private investigators; or
206 (iii) obtain information from the Utah State Tax Commission Motor Vehicle Division
207 or Driver License Division within the Department of Public Safety, except the apprentice may
208 utilize information from these agencies for a legitimate business need and under the direct
209 supervision and guidance of a licensed agency.
210 (b) A registrant or apprentice whose license has been suspended or revoked shall
211 immediately notify the agency which supervises the registrant or apprentice of the action.
212 Section 5. Section 53-9-108 is amended to read:
213 53-9-108. Qualifications for licensure.
214 (1) (a) An applicant [for an agency license] under this chapter shall be at least 21 years
215 of age[, a citizen or] and a legal resident of [the United States, and of good moral character]
216 this state.
217 (b) An applicant may not have been:
218 (i) convicted of a felony;
219 (ii) convicted of an act involving illegally using, carrying, or possessing a dangerous
220 weapon;
221 (iii) convicted of an act of personal violence or force on any person or convicted of
222 threatening to commit an act of personal violence or force against another person;
223 (iv) convicted of an act constituting dishonesty or fraud;
224 (v) convicted of an act involving moral turpitude;
225 (vi) placed on probation or parole;

226 (vii) named in an outstanding arrest warrant; or
227 (viii) convicted of illegally obtaining or disclosing private, controlled, or protected
228 records as provided in Section 63G-2-801 .
229 (c) If previously or currently licensed in another state or jurisdiction, the applicant shall
230 be in good standing within that state or jurisdiction.
231 [(c)] (2) In assessing [good moral character] if an applicant meets the requirements
232 under Subsection (1)(b), the board shall consider mitigating circumstances presented by an
233 applicant [regarding information under Subsections (1)(b)(vi) and (viii)].
234 [(d) If previously or currently licensed in another state or jurisdiction, the applicant
235 shall be in good standing within that state or jurisdiction.]
236 [(e)] (3) (a) An applicant for an agency license shall have completed a minimum of
237 [two years, or 2,000] 10,000 hours[,] of investigative experience that consists of actual work
238 performed as a licensed private investigator [for a private agency,] or [2,000 hours of work
239 performed in an investigative capacity] as an investigator for the federal government, or for a
240 state, county, or municipal government.
241 (b) An applicant for a registrant license shall have completed a minimum 2,000 hours
242 of investigative experience that consists of actual work performed as a licensed private
243 investigator or as an investigator for the federal government, or for a state, county, or municipal
244 government.
245 (c) Investigative experience required under this Subsection (3) shall have been
246 performed within 10 years immediately prior to the application.
247 [(f) (i)] (d) An applicant [for an agency license] shall substantiate investigative work
248 experience [claimed as years of qualifying experience and provide] required under this
249 Subsection (3) by providing the exact details as to the character and nature of the [experience]
250 investigative work on a form prescribed by the [department] bureau and certified by the
251 applicant's employers.
252 [(ii) If the applicant is unable to supply written certification from an employer in whole
253 or in part, the applicant may offer written certification from persons other than an employer

254 covering the same subject matter for consideration by the board.]
255 [(iii)] (e) (i) The applicant shall prove completion of the [required] experience required
256 under this Subsection (3) to the satisfaction of the board and the board may independently
257 verify the certification offered on behalf of the applicant.
258 (ii) The board may independently confirm the claimed investigative experience and the
259 verification of the applicant's employers.
260 [(2) (a) (i) An applicant for a registrant license shall meet all qualification standards of
261 this section, except Subsection (1)(d).]
262 [(ii) An applicant shall have a minimum of one year, or 1,000 hours, of investigative
263 experience that consists of actual work performed as a private investigator for a private agency,
264 the federal government, a state, county, or municipal government.]
265 [(b) A licensed registrant, as defined in Section 53-9-102 , shall only work as an
266 employee of, or as an independent contractor with, an agency licensed in Utah and physically
267 located within Utah, and may not:]
268 [(i) advertise the licensed registrant's services or conduct investigations for the general
269 public; or]
270 [(ii) employ other private investigators or hire them as independent contractors.]
271 [(3) (a)] (4) An applicant for an apprentice license, lacking the experience required for
272 a registrant license, shall meet all of the qualification standards in Subsection (1) [except
273 Subsection (1)(d)], and shall complete an apprentice application.
274 [(b) (i) An apprentice, as defined in Section 53-9-102 , shall work under the direct
275 supervision and guidance of an agency licensed in Utah and located within Utah, full-time for
276 one year or for 1,000 hours, prior to acquiring eligibility for a registrant license.]
277 [(ii) A licensed apprentice shall only work under the direction of a licensed agency and
278 may not:]
279 [(A) advertise the licensed apprentice's services or conduct investigations for the
280 general public;]
281 [(B) employ other private investigators; or]

282 [(C) obtain information from the Utah State Tax Commission Motor Vehicle Division
283 or Driver License Division within the Department of Public Safety, except the apprentice may
284 utilize this information for a legitimate business need and under the direct supervision of a
285 licensed agency.]
286 [(4) (a)] (5) An applicant for an agency[,] or registrant[, or apprentice] license may [be
287 eligible for a license without meeting all or part of the investigative work experience required
288 by this section if the applicant] receive credit toward the hours of investigative experience
289 required under Subsection (3) as follows:
290 (a) an applicant may receive credit for 2,000 hours of investigative experience if the
291 applicant:
292 (i) has [a] an associate's degree in criminal justice [degree] or police science from an
293 accredited college or university; or
294 (ii) is certified [by Peace Officer Standards and Training; or] as a peace officer; and
295 [(iii) can substantiate other similar law enforcement or investigative training in the
296 areas set forth in Subsection 53-9-102 (17).]
297 (b) an applicant may receive credit for 4,000 hours of investigative experience if the
298 applicant has a bachelor's degree in criminal justice or police science from an accredited
299 college or university.
300 [(b)] (6) The board shall determine [whether or not training] if the applicant may
301 [replace the work experience requirement and to what extent] receive credit under Subsection
302 (5) toward the investigative experience requirements under Subsection (3).
303 Section 6. Section 53-9-109 is amended to read:
304 53-9-109. Application for agency license -- Liability insurance -- Workers'
305 compensation.
306 (1) Every application for an agency license to engage in the private investigative
307 business shall [set forth information to assist the commissioner in determining the applicant's
308 ability to meet the requirements prescribed in this chapter and contain the following] provide to
309 the bureau:

310 (a) the full name and business address of the applicant;
311 (b) [two] one passport-size color [photographs] photograph of the applicant;
312 (c) the name under which the applicant intends to do business;
313 (d) a statement that the applicant intends to engage in the private investigative
314 business;
315 (e) a verified statement of the applicant's experience and qualifications as provided in
316 Section 53-9-108 ; and
317 (f) the fee prescribed in Section 53-9-111 .
318 (2) Before the issuance [of an original] or renewal of an agency license, the applicant
319 shall provide to the [department] bureau:
320 [(a) a surety bond in the amount of $10,000; and]
321 (a) a certificate of liability insurance; and
322 (b) a certificate of workers' compensation insurance, if applicable.
323 (3) The [bond] liability insurance required by this section shall [be]:
324 [(a) executed and acknowledged by the applicant as principal and by a corporation
325 licensed to transact fidelity and surety business in this state as surety;]
326 (a) protect against liability to third persons;
327 (b) contain a limit of liability in an amount of not less than $500,000;
328 [(b)] (c) be continuous in form and run concurrently with the license period; and
329 (d) provide for notice to the bureau in the event of cancellation of the liability
330 insurance.
331 [(c) in favor of the state for the benefit of any person injured by any acts of a private
332 investigator, his agency, or his employees; and]
333 [(d) subject to claims by any person who is injured by those acts.]
334 [(4) (a) The commissioner shall cancel the agency license of any licensed agency on the
335 cancellation of the surety bond.]
336 [(b) The license may be reinstated when the qualifying party:]
337 [(i) files a surety bond that is concurrent with the remainder of the license period; and]

338 [(ii) pays the reinstatement fee prescribed in Section 53-9-111 .]
339 (4) (a) The bureau shall cancel a license when it receives notice from the insurer that
340 liability insurance required under Subsection (2) has expired or been canceled.
341 (b) The licensee shall be notified by the bureau when a license has been cancelled
342 under this Subsection (4).
343 (c) The license may be reinstated when the licensee:
344 (i) files proof of liability insurance for the remainder of the license period; and
345 (ii) pays the reinstatement fee prescribed in Section 53-9-111 .
346 Section 7. Section 53-9-110 is amended to read:
347 53-9-110. Application for registrant or apprentice license.
348 (1) Every application for a registrant or apprentice license shall provide [information to
349 assist the commissioner in determining the applicant's ability to meet the requirements
350 prescribed in this chapter and contain the following] to the bureau:
351 (a) the full name and address of the applicant;
352 (b) [two] one passport-size color [photographs] photograph of the applicant;
353 (c) the name of the licensed agency for which the applicant will be an employee,
354 apprentice, or contract registrant, if applicable;
355 (d) authorization of the licensed agency or its designee to employ the apprentice or
356 contract with the registrant, if applicable;
357 (e) a verified statement of the applicant's experience and qualifications as provided in
358 Section 53-9-108 ; and
359 (f) the fee prescribed in Section 53-9-111 .
360 (2) An application for a registrant or apprentice license or renewal shall be
361 accompanied by a surety bond in the amount of $10,000.
362 (3) The surety bond required by this section shall:
363 (a) protect against liability to third persons;
364 (b) be continuous in form and run concurrently with the license period; and
365 (c) provide for notice to the bureau in the event of cancellation of the surety bond.

366 (4) (a) The bureau shall cancel a license when it receives notice from the insurer that
367 the bond required in Subsection (2) has expired or been canceled.
368 (b) The licensee shall be notified by the bureau when a license has been cancelled
369 under this Subsection (4).
370 (c) The license may be reinstated when the licensee:
371 (i) files proof of a bond for the remainder of the license period; and
372 (ii) pays the reinstatement fee prescribed in Section 53-9-111 .
373 Section 8. Section 53-9-111 is amended to read:
374 53-9-111. License and registration fees -- Deposit in General Fund.
375 (1) Fees for licensure and renewal shall be as follows:
376 (a) for an original agency license application and license, $200, plus an additional fee
377 for the costs of fingerprint processing and background investigation;
378 (b) for the renewal of an agency license, $100;
379 (c) for an original registrant or apprentice license application and license, $100, plus an
380 additional fee for the costs of fingerprint processing and background investigation;
381 (d) for the renewal of a registrant or apprentice license, $50;
382 (e) for filing an agency renewal application more than 30 days after the expiration date
383 of the license, a delinquency fee of $50;
384 (f) for filing a registrant or apprentice renewal application more than 30 days after the
385 expiration date of the registration, a delinquency fee of $30;
386 (g) for the reinstatement of any license, $50;
387 (h) for a duplicate identification card, $10; and
388 (i) for the fingerprint processing fee, an amount that does not exceed the cost to the
389 [department] bureau charged by the Federal Bureau of Investigation for fingerprint processing
390 for the purpose of obtaining federal criminal history record information.
391 (2) (a) The [commissioner] bureau may renew a license granted under this chapter
392 upon receipt of a renewal application on forms as prescribed by the [commissioner] bureau and
393 upon receipt of the fees prescribed in Subsection (1).

394 (b) The renewal of a license requires the filing of [a surety bond as described in
395 Subsections 53-9-109 (2) and (3)] all certificates of insurance or proof of surety bond as
396 required by this chapter. Renewal of a license [shall] may not be granted more than 90 days
397 after expiration.
398 (c) A licensee may not engage in any activity subject to this chapter during any period
399 between the date of expiration of the license and the renewal of the license.
400 (3) (a) The [commissioner] bureau shall renew a suspended license if:
401 (i) the period of suspension has been completed;
402 (ii) the [commissioner] bureau has received a renewal application from the applicant
403 on forms prescribed by the [commissioner] bureau; and
404 (iii) the applicant has:
405 (A) filed [a surety bond as described by Subsections 53-9-109 (2) and (3)] all
406 certificates of insurance or proof of surety bond as required by this chapter; and
407 (B) paid the fees required by this section for renewal, including a delinquency fee if the
408 application is not received by the [commissioner] bureau within 30 days of the termination of
409 the suspension.
410 (b) Renewal of the license does not entitle the licensee, while the license remains
411 suspended and until it is reinstated, to engage in any activity regulated by this chapter, or in any
412 other activity or conduct in violation of the order or judgment by which the license was
413 suspended.
414 (4) The [commissioner shall] bureau may not reinstate a revoked license or accept an
415 application for a license from a person whose license has been revoked for at least one year
416 from the date of revocation.
417 (5) All fees, except the fingerprint processing fee, collected by the [department] bureau
418 under this section shall be deposited in the General Fund.
419 Section 9. Section 53-9-113 is amended to read:
420 53-9-113. Grounds for denial of a license -- Appeal.
421 (1) The board may deny a license or the renewal of a license if the applicant has:

422 (a) committed an act that, if committed by a licensee, would be grounds for probation,
423 suspension, or revocation of a license under this chapter;
424 (b) employed or contracted with a person who has been refused a license under this
425 chapter or who has had a license revoked;
426 (c) while not licensed under this chapter, committed, or aided and abetted the
427 commission of, any act for which a license is required by this chapter; or
428 (d) knowingly made a material misstatement in connection with an application for a
429 license or renewal of a license.
430 (2) (a) The board's denial of a license under this chapter shall:
431 (i) be in writing;
432 (ii) describe the basis for the denial; and
433 (iii) inform the applicant that if the applicant desires a hearing to contest the denial, the
434 applicant shall submit a request in writing to the board within 30 days after the denial has been
435 sent [by the department] by certified mail to the applicant.
436 (b) The board shall schedule a hearing on the denial for the next board meeting after
437 the applicant's request for a hearing has been received by the board.
438 (3) The decision of the board may be appealed to the commissioner, who may:
439 (a) return the case to the board for reconsideration;
440 (b) modify the board's decision; or
441 (c) reverse the board's decision.
442 (4) The [department] commissioner shall promptly issue a final order [of the
443 commissioner] and send the order by mail to the applicant.
444 (5) Decisions of the commissioner are subject to judicial review pursuant to Section
445 63G-4-402 .
446 Section 10. Section 53-9-117 is amended to read:
447 53-9-117. Authority to investigate complaint -- Filing of complaints -- Response --
448 Retention of records -- Appeal -- Penalties collected.
449 (1) The [commissioner] bureau or board may initiate an investigation of any person

450 advertising services or engaged in performing services that require a license under this chapter
451 and shall investigate if a licensee is engaged in activities that do not comply with or are
452 prohibited by this chapter.
453 (2) The [commissioner] bureau shall enforce the provisions of this chapter without
454 regard to the place or location in which a violation may have occurred, and on the complaint of
455 any person, may investigate any alleged violation of this chapter or the business and business
456 methods of any licensee or applicant for licensure under this chapter.
457 (3) Complaints against any licensee shall be filed with the [commissioner] bureau in
458 writing on forms prescribed by the [commissioner] bureau.
459 (a) Upon receipt of a complaint, or at the request of the board, the [commissioner]
460 bureau shall assign the complaint to an investigator within the [department] bureau.
461 (b) The [department] bureau will provide a copy of the complaint to the licensee who
462 shall answer the complaint in writing within 15 working days of the date the complaint is sent
463 [by the department] to the licensee by certified mail.
464 (4) In any investigation undertaken by the [department] bureau, each licensee on
465 request shall provide records and truthfully respond to questions concerning activities regulated
466 under this chapter.
467 (a) These records shall be maintained for five years at the principal place of business of
468 the licensee or at another location approved by the board for a person whose license has been
469 terminated, canceled, or revoked.
470 (b) On request by the [department] bureau the licensee shall:
471 (i) during normal business hours or other time acceptable to the parties, make its
472 records available immediately to the [department] bureau unless the [department] bureau
473 determines that an extension may be granted; and
474 (ii) provide copies of any business records requested by the [department] bureau.
475 (5) Upon completion of the investigation, the [department] bureau shall report its
476 findings of fact to the board, and shall make a recommendation as to whether disciplinary
477 action is warranted under [Subsection] Section 53-9-118 [(1)], including whether emergency

478 action should be taken under Subsection [ 53-9-118 (2)] (8).
479 (6) (a) If the [department] bureau recommends disciplinary action, a notice of the
480 recommendations in Subsection (5) shall be sent by the [department] bureau to the licensee by
481 certified mail.
482 (b) The notice shall include the [right to request a hearing before the board, and require
483 that any such request shall be in writing and received by the board within 30 working days of
484 the date the notice of recommendations was sent by the department to the licensee by certified
485 mail] date and time of the meeting where the board will consider the bureau's recommendation.
486 (c) The board shall give the licensee an opportunity at the meeting to present testimony
487 and evidence in response to the bureau's recommendation.
488 (7) If the board finds, based on the investigation or hearing, that a violation of Section
489 53-9-118 has occurred, notice of the board's decision shall be sent to the licensee at the
490 licensee's most recent address in the bureau's files by certified mail, return receipt requested.
491 (8) Based on information the board receives from the investigation or during a hearing,
492 the board may:
493 (a) dismiss the complaint if the board finds it is without merit;
494 (b) take emergency action;
495 (c) issue a letter of concern, if applicable;
496 (d) impose a civil penalty not to exceed $500;
497 (e) place the license on suspension for a period of not more than 12 months;
498 (f) revoke the license; and
499 (g) place all records, evidence findings, and conclusion, and any other information
500 pertinent to the investigation, in a confidential and protected records section of the licensee's
501 file maintained at the bureau.
502 (9) A letter of concern issued for a violation of Section 53-9-118 is a document that is
503 retained by the bureau and may be used in future disciplinary actions against a licensee.
504 (10) (a) Appeal of the board's decision shall be made in writing to the commissioner
505 within 15 days from the date the board's decision is mailed to the licensee.

506 (b) The commissioner shall review the board's finding and may affirm, return to the
507 board for reconsideration, reverse, adopt, modify, supplement, amend, or reject the
508 recommendation of the board.
509 (11) (a) The commissioner shall issue a final written order within 30 days outlining the
510 decision on appeal.
511 (b) The final order is final agency action for purposes of judicial review under Section
512 63G-4-402 .
513 (12) (a) If the board finds, based on the bureau's investigation, that the public health,
514 safety, or welfare requires emergency action, the board may order a summary suspension of a
515 license pending proceedings for revocation or other action.
516 (b) If the board issues a summary suspension order, the board shall issue to the licensee
517 a written notice of the order and indicate the licensee's right to request a formal hearing before
518 the board. The notice shall be mailed to the licensee by certified mail, return receipt requested.
519 (c) The licensee's request for a formal hearing shall be in writing and mailed to the
520 bureau within 30 working days of the date the summary suspension was mailed to the licensee.
521 (13) All penalties collected under this section shall be deposited in the General Fund.
522 Section 11. Section 53-9-118 is amended to read:
523 53-9-118. Grounds for disciplinary action.
524 [(1)] The board may suspend or revoke a license or registration or deny an application
525 for a license if a person engages in [any of the following]:
526 [(a)] (1) fraud or willful misrepresentation in applying for an original license or
527 renewal of an existing license;
528 [(b)] (2) using any letterhead, advertising, or other printed matter in any manner
529 representing that the licensee is an instrumentality of the federal government, a state, or any
530 political subdivision of a state;
531 [(c)] (3) using a name different from that under which the licensee is currently licensed
532 for any advertising, solicitation, or contract to secure business unless the name is an authorized
533 fictitious name;

534 [(d)] (4) impersonating, permitting, or aiding and abetting an employee or independent
535 contractor to impersonate a peace officer or employee of the United States, any state, or a
536 political subdivision of a state;
537 [(e)] (5) knowingly violating, advising, encouraging, or assisting the violation of any
538 statute, court order, or injunction in the course of a business regulated under this chapter;
539 [(f)] (6) falsifying fingerprints or photographs while operating under this chapter;
540 [(g)] (7) conviction of a felony;
541 [(h)] (8) conviction of any act involving illegally using, carrying, or possessing a
542 dangerous weapon;
543 [(i)] (9) conviction of any act involving moral turpitude;
544 [(j)] (10) conviction of any act of personal violence or force against any person or
545 conviction of threatening to commit any act of personal violence or force against any person;
546 [(k)] (11) soliciting business for an attorney in return for compensation;
547 [(l)] (12) conviction of any act constituting dishonesty or fraud;
548 [(m)] (13) being placed on probation, parole, or named in an outstanding arrest
549 warrant;
550 [(n)] (14) committing or permitting any employee or independent contractor to commit
551 any act during the period when the license is expired or suspended;
552 [(o)] (15) willfully neglecting to render to a client services or a report as agreed
553 between the parties and for which compensation has been paid or tendered in accordance with
554 the agreement of the parties unless the licensee chooses to withdraw from the case and returns
555 the funds for work not yet completed;
556 [(p)] (16) the unauthorized release of information acquired on behalf of a client by a
557 licensee, or its employee or contract agent as a result of activities regulated under this chapter;
558 [(q)] (17) failing to cooperate with, misrepresenting to, or refusing access to business
559 or investigative records requested by the board or an authorized representative of the
560 [department] bureau engaged in an official investigation pursuant to this chapter;
561 [(r)] (18) employing or contracting with any unlicensed or improperly licensed person

562 or agency to conduct activities regulated under this chapter if the licensure status was known or
563 could have been ascertained by reasonable inquiry;
564 [(s)] (19) permitting, authorizing, aiding, or in any way assisting an employee to
565 conduct services as described in this chapter on an independent contractor basis and not under
566 the authority of the licensed agency;
567 [(t)] (20) failure to maintain in full force and effect liability or workers' compensation
568 insurance, or a surety bond, if applicable;
569 [(u)] (21) conducting private investigation services regulated by this chapter on a
570 revoked or suspended license;
571 [(v)] (22) accepting employment, contracting, or in any way engaging in employment
572 that has an adverse impact on investigations being conducted on behalf of clients;
573 [(w)] (23) advertising in a false, deceptive, or misleading manner;
574 [(x)] (24) refusing to display the identification card issued by the [department] bureau
575 to any person having reasonable cause to verify the validity of the license;
576 [(y)] (25) committing any act of unprofessional conduct;
577 [(z)] (26) conviction of any act of illegally obtaining or disseminating private,
578 controlled, or protected records under Section 63G-2-801 ; or
579 [(aa) engaging in] (27) any other conduct prohibited by this chapter.
580 [(2) (a) If the board finds, based on the investigation, that the public health, safety, or
581 welfare requires emergency action, the board may order a summary suspension of a license
582 pending proceedings for revocation or other action.]
583 [(b) If the board issues a summary suspension order, the commissioner shall issue to
584 the licensee a written notice of the order and indicate the licensee's right to request a formal
585 hearing before the board.]
586 [(c) The licensee's request for a formal hearing shall be in writing and received by the
587 department within 30 working days of the date the summary suspension was sent by the
588 department to the licensee by certified mail.]
589 [(3) If the board finds, based on the investigation or hearing, that a violation under

590 Subsection (1) has occurred, notice will be sent to the licensee of the board's decision by
591 mailing a true copy to the licensee's last-known address in the department's files by certified
592 mail, return receipt requested.]
593 [(4) Based on information the board receives from the investigation or during a
594 hearing, it may do any of the following:]
595 [(a) dismiss the complaint if the board believes it is without merit;]
596 [(b) take emergency action;]
597 [(c) issue a letter of concern, if applicable;]
598 [(d) impose a civil fine not to exceed $500;]
599 [(e) place the license on suspension for a period of not more than 12 months;]
600 [(f) revoke the license or registration; and]
601 [(g) place all records, evidence findings, and conclusion, and any other information
602 pertinent to the investigation, in a confidential and protected records section of the file
603 maintained at the department.]
604 [(5) A letter of concern issued pursuant to Section 53-9-118 is a document that is
605 retained by the department and may be used in future disciplinary actions against a licensee.]
606 [(6) Appeal of the board's decision shall be made in writing to the commissioner within
607 15 days of the date of issuance of the board's decision. The commissioner shall review the
608 finding by the board and may affirm, return to the board for reconsideration, reverse, adopt,
609 modify, supplement, amend, or reject the recommendation of the board.]
610 [(7) The department shall issue a final written order within 30 days outlining the
611 commissioner's decision on the appeal. The final order is final agency action for purposes of
612 judicial review under Section 63G-4-402 .]
613 [(8) All fines collected under this section shall be deposited in the General Fund.]
614 Section 12. Section 53-11-115 is amended to read:
615 53-11-115. License fees -- Deposit in General Fund.
616 (1) Fees for licensure, registration, and renewal are:
617 (a) for an original bail enforcement agent license application and license, $250, which

618 shall include the costs of fingerprint processing and background investigation;
619 (b) for the renewal of a bail enforcement agent or bail bond recovery agency license,
620 $150;
621 (c) for an original bail recovery agent license application and license, $150, which shall
622 include the costs of fingerprint processing and background investigation;
623 (d) for the renewal of each bail recovery agent license, $100;
624 (e) for an original bail recovery apprentice license application and license, $150, which
625 shall include the costs of fingerprint processing and background investigation;
626 (f) for the renewal of each bail recovery apprentice license, $100;
627 (g) for filing a renewal application under Subsection (1)(b) more than 30 days after the
628 expiration date of the license, a delinquency fee of $50;
629 (h) for filing a renewal application under Subsection (1)(d) more than 30 days after the
630 expiration date of the registration, a delinquency fee of $30;
631 (i) for filing a renewal application under Subsection (1)(f) more than 30 days after the
632 expiration date of the apprentice license, a delinquency fee of $30;
633 (j) for the reinstatement of a bail enforcement agent or bail bond recovery agency
634 license, $50;
635 (k) for a duplicate identification card, $10; and
636 (l) for reinstatement of an identification card, $10.
637 (2) (a) The board may renew a license granted under this chapter upon receipt of an
638 application on forms as prescribed by the board and upon receipt of the fees prescribed in
639 Subsection (1).
640 (b) The renewal of a bail enforcement agent, bail recovery agent, or bail recovery
641 apprentice license requires the filing of a liability insurance policy as [described] required in
642 Subsections [ 53-9-109 ] 53-9-110 (2) and (3).
643 (c) A license may not be renewed more than 90 days after its expiration.
644 (d) A licensee may not engage in any activity subject to this chapter during any period
645 between the date of expiration of the license and the renewal of the license.

646 (3) (a) The board may reinstate a suspended license upon completion of the term of
647 suspension.
648 (b) Renewal of the license does not entitle the licensee, while the license remains
649 suspended and until it is reinstated, to engage in any activity regulated by this chapter, or in any
650 other activity or conduct in violation of the order or judgment by which the license was
651 suspended.
652 (4) The board may not reinstate a revoked license or accept an application for a license
653 from a person whose license has been revoked for at least one year after the date of revocation.
654 (5) All fees collected by the department under this section shall be deposited in the
655 General Fund.