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[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

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.


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