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

S.B. 177

             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.
             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      and
             18          .    requires a certificate of liability insurance for an agency and a surety bond for a
             19      registrant or an apprentice.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          None
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          53-9-103, as last amended by Laws of Utah 2008, Chapter 382
             27          53-9-105, as last amended by Laws of Utah 2003, Chapter 330


             28          53-9-107, as last amended by Laws of Utah 1998, Chapter 212
             29          53-9-108, as last amended by Laws of Utah 2008, Chapter 382
             30          53-9-109, as last amended by Laws of Utah 1998, Chapter 212
             31          53-9-110, as last amended by Laws of Utah 1998, Chapter 212
             32          53-9-111, as last amended by Laws of Utah 1998, Chapter 212
             33          53-9-113, as last amended by Laws of Utah 2008, Chapter 382
             34          53-9-117, as last amended by Laws of Utah 1998, Chapter 212
             35          53-9-118, as last amended by Laws of Utah 2008, Chapter 382
             36          53-11-115, as enacted by Laws of Utah 1998, Chapter 257
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 53-9-103 is amended to read:
             40           53-9-103. Commissioner of Public Safety to administer -- Bureau to issue licenses
             41      -- Records -- Bonds -- Rulemaking.
             42          (1) The commissioner [of the Department of Public Safety] shall administer this
             43      chapter.
             44          (2) (a) The bureau, acting at the direction of the commissioner, shall issue a private
             45      investigator license to any applicant [who] whom the board finds meets the qualifications for
             46      licensure under [Section 53-9-108 ] this chapter.
             47          (b) The bureau shall issue a license to [a qualified] an apprentice applicant who meets
             48      the qualifications for licensure under this chapter within five business days of receipt of the
             49      application.
             50          (3) (a) The bureau shall keep records of:
             51          (i) all applications for licenses under this chapter; and
             52          (ii) all bonds and proof of certificates of liability and workers' compensation insurance
             53      required to be filed.
             54          (b) The records shall include statements as to whether a license or renewal license has
             55      been issued for each application [and bond].
             56          (4) If a license is revoked, suspended, canceled, or denied or if a licensee is placed on
             57      probation, the date of filing the order for revocation, suspension, cancellation, denial, or
             58      probation shall be included in the records.


             59          (5) The bureau shall maintain:
             60          (a) a list of all licensees whose license has been revoked, suspended, placed on
             61      probation, or canceled; and
             62          (b) a written record of complaints filed against licensees.
             63          (6) The commissioner may make rules in accordance with Title 63G, Chapter 3, Utah
             64      Administrative Rulemaking Act, as necessary to administer this chapter.
             65          Section 2. Section 53-9-105 is amended to read:
             66           53-9-105. Powers and duties of the board.
             67          (1) The board shall:
             68          (a) review [all] applications for licenses and renewals of licenses for private
             69      investigators and [make recommendations to the commissioner for approval or disapproval]
             70      approve or deny the applications;
             71          (b) upon receiving a timely filed petition, review within a reasonable time the denial,
             72      suspension, or revocation of a private investigator license; and
             73          (c) review all complaints and make recommendations to the commissioner regarding
             74      disciplinary action.
             75          (2) The board may take and hear evidence, administer oaths and affirmations, and
             76      compel by subpoena the attendance of witnesses and the production of books, papers, records,
             77      documents, and other information relating to a formal complaint against or [department]
             78      bureau investigation of a private investigator.
             79          Section 3. Section 53-9-107 is amended to read:
             80           53-9-107. Classification of licenses -- License required to act.
             81          (1) Every person applying for a license under this chapter shall indicate on the
             82      application which of the following licenses the applicant is applying for:
             83          (a) an agency license shall be issued to an applicant who meets the agency
             84      requirements of [Subsection] Sections 53-9-108 [(1)] and [Section] 53-9-109 ;
             85          (b) a registrant license shall be issued to an applicant who meets the registrant
             86      requirements of [Subsection] Sections 53-9-108 [(2)] and [Section] 53-9-110 ; or
             87          (c) an apprentice license shall be issued to an applicant who meets the apprentice
             88      requirements of [Subsection] Sections 53-9-108 [(3)] and [Section] 53-9-110 .
             89          (2) Unless licensed under this chapter, a person may not:


             90          (a) act or assume to act as, or represent himself to be:
             91          (i) a licensee; or
             92          (ii) a private investigator or private detective as defined in Subsection 53-9-102 (16) or
             93      conduct any investigation as provided in Subsection 53-9-102 (16); or
             94          (b) falsely represent to be employed by or for an independent contractor for an agency.
             95          (3) A licensed registrant, as defined in Section 53-9-102 , may only work as an
             96      employee of, or as an independent contractor for, an agency licensed under this chapter, and
             97      may not:
             98          (a) advertise the licensed registrant's services or conduct investigations for the general
             99      public; or
             100          (b) employ other private investigators or hire them as independent contractors.
             101          (4) (a) A licensed apprentice, as defined in Section 53-9-102 , may only work under the
             102      direct supervision and guidance of an agency licensed under this chapter, and may not:
             103          (i) advertise the licensed apprentice's services or conduct investigations for the general
             104      public;
             105          (ii) employ other private investigators; or
             106          (iii) obtain information from the Utah State Tax Commission Motor Vehicle Division
             107      or Driver License Division within the Department of Public Safety, except the apprentice may
             108      utilize information from these agencies for a legitimate business need and under the direct
             109      supervision and guidance of a licensed agency.
             110          (b) A registrant or apprentice whose license has been suspended or revoked shall
             111      immediately notify the agency which supervises the registrant or apprentice of the action.
             112          Section 4. Section 53-9-108 is amended to read:
             113           53-9-108. Qualifications for licensure.
             114          (1) (a) An applicant [for an agency license] under this chapter shall be at least 21 years
             115      of age[, a citizen or] and a legal resident of [the United States, and of good moral character]
             116      this state.
             117          (b) An applicant may not have been:
             118          (i) convicted of a felony;
             119          (ii) convicted of an act involving illegally using, carrying, or possessing a dangerous
             120      weapon;


             121          (iii) convicted of an act of personal violence or force on any person or convicted of
             122      threatening to commit an act of personal violence or force against another person;
             123          (iv) convicted of an act constituting dishonesty or fraud;
             124          (v) convicted of an act involving moral turpitude;
             125          (vi) placed on probation or parole;
             126          (vii) named in an outstanding arrest warrant; or
             127          (viii) convicted of illegally obtaining or disclosing private, controlled, or protected
             128      records as provided in Section 63G-2-801 .
             129          (c) If previously or currently licensed in another state or jurisdiction, the applicant shall
             130      be in good standing within that state or jurisdiction.
             131          [(c)] (2) In assessing [good moral character] if an applicant meets the requirements
             132      under Subsection (1)(b), the board shall consider mitigating circumstances presented by an
             133      applicant [regarding information under Subsections (1)(b)(vi) and (viii)].
             134          [(d) If previously or currently licensed in another state or jurisdiction, the applicant
             135      shall be in good standing within that state or jurisdiction.]
             136          [(e)] (3) (a) An applicant for an agency license shall have completed a minimum of
             137      [two years, or 2,000] 10,000 hours[,] of investigative experience that consists of actual work
             138      performed as a licensed private investigator [for a private agency,] or [2,000 hours of work
             139      performed in an investigative capacity] as an investigator for the federal government, or for a
             140      state, county, or municipal government.
             141          (b) An applicant for a registrant license shall have completed a minimum 2,000 hours
             142      of investigative experience that consists of actual work performed as a licensed private
             143      investigator or as an investigator for the federal government, or for a state, county, or municipal
             144      government.
             145          (c) Investigative experience required under this Subsection (3) shall have been
             146      performed within 10 years immediately prior to the application.
             147          [(f) (i)] (d) An applicant [for an agency license] shall substantiate investigative work
             148      experience [claimed as years of qualifying experience and provide] required under this
             149      Subsection (3) by providing the exact details as to the character and nature of the [experience]
             150      investigative work on a form prescribed by the [department] bureau and certified by the
             151      applicant's employers.


             152          [(ii) If the applicant is unable to supply written certification from an employer in whole
             153      or in part, the applicant may offer written certification from persons other than an employer
             154      covering the same subject matter for consideration by the board.]
             155          [(iii)] (e) (i) The applicant shall prove completion of the [required] experience required
             156      under this Subsection (3) to the satisfaction of the board and the board may independently
             157      verify the certification offered on behalf of the applicant.
             158          (ii) The board may independently confirm the claimed investigative experience and the
             159      verification of the applicant's employers.
             160          [(2) (a) (i) An applicant for a registrant license shall meet all qualification standards of
             161      this section, except Subsection (1)(d).]
             162          [(ii) An applicant shall have a minimum of one year, or 1,000 hours, of investigative
             163      experience that consists of actual work performed as a private investigator for a private agency,
             164      the federal government, a state, county, or municipal government.]
             165          [(b) A licensed registrant, as defined in Section 53-9-102 , shall only work as an
             166      employee of, or as an independent contractor with, an agency licensed in Utah and physically
             167      located within Utah, and may not:]
             168          [(i) advertise the licensed registrant's services or conduct investigations for the general
             169      public; or]
             170          [(ii) employ other private investigators or hire them as independent contractors.]
             171          [(3) (a)] (4) An applicant for an apprentice license, lacking the experience required for
             172      a registrant license, shall meet all of the qualification standards in Subsection (1) [except
             173      Subsection (1)(d)], and shall complete an apprentice application.
             174          [(b) (i) An apprentice, as defined in Section 53-9-102 , shall work under the direct
             175      supervision and guidance of an agency licensed in Utah and located within Utah, full-time for
             176      one year or for 1,000 hours, prior to acquiring eligibility for a registrant license.]
             177          [(ii) A licensed apprentice shall only work under the direction of a licensed agency and
             178      may not:]
             179          [(A) advertise the licensed apprentice's services or conduct investigations for the
             180      general public;]
             181          [(B) employ other private investigators; or]
             182          [(C) obtain information from the Utah State Tax Commission Motor Vehicle Division


             183      or Driver License Division within the Department of Public Safety, except the apprentice may
             184      utilize this information for a legitimate business need and under the direct supervision of a
             185      licensed agency.]
             186          [(4) (a)] (5) An applicant for an agency[,] or registrant[, or apprentice] license may [be
             187      eligible for a license without meeting all or part of the investigative work experience required
             188      by this section if the applicant] receive credit toward the hours of investigative experience
             189      required under Subsection (3) as follows:
             190          (a) an applicant may receive credit for 2,000 hours of investigative experience if the
             191      applicant:
             192          (i) has [a] an associate's degree in criminal justice [degree] or police science from an
             193      accredited college or university; or
             194          (ii) is certified [by Peace Officer Standards and Training; or] as a peace officer; and
             195          [(iii) can substantiate other similar law enforcement or investigative training in the
             196      areas set forth in Subsection 53-9-102 (17).]
             197          (b) an applicant may receive credit for 4,000 hours of investigative experience if the
             198      applicant has a bachelors degree in criminal justice or police science from an accredited college
             199      or university.
             200          [(b)] (6) The board shall determine [whether or not training] if the applicant may
             201      [replace the work experience requirement and to what extent] receive credit under Subsection
             202      (5) toward the investigative experience requirements under Subsection (3).
             203          Section 5. Section 53-9-109 is amended to read:
             204           53-9-109. Application for agency license -- Liability insurance -- Workers'
             205      compensation.
             206          (1) Every application for an agency license to engage in the private investigative
             207      business shall [set forth information to assist the commissioner in determining the applicant's
             208      ability to meet the requirements prescribed in this chapter and contain the following] provide to
             209      the bureau:
             210          (a) the full name and business address of the applicant;
             211          (b) [two] one passport-size color photographs of the applicant;
             212          (c) the name under which the applicant intends to do business;
             213          (d) a statement that the applicant intends to engage in the private investigative


             214      business;
             215          (e) a verified statement of the applicant's experience and qualifications as provided in
             216      Section 53-9-108 ; and
             217          (f) the fee prescribed in Section 53-9-111 .
             218          (2) Before the issuance [of an original] or renewal of an agency license, the applicant
             219      shall provide to the [department] bureau:
             220          [(a) a surety bond in the amount of $10,000; and]
             221          (a) a certificate of liability insurance; and
             222          (b) a certificate of workers' compensation insurance, if applicable.
             223          (3) The [bond] liability insurance required by this section shall [be]:
             224          [(a) executed and acknowledged by the applicant as principal and by a corporation
             225      licensed to transact fidelity and surety business in this state as surety;]
             226          (a) protect against liability to third persons;
             227          (b) contain a limit of liability in an amount of not less than $500,000;
             228          [(b)] (c) be continuous in form and run concurrently with the license period; and
             229          (d) provide for notice to the bureau in the event of cancellation of the liability
             230      insurance.
             231          [(c) in favor of the state for the benefit of any person injured by any acts of a private
             232      investigator, his agency, or his employees; and]
             233          [(d) subject to claims by any person who is injured by those acts.]
             234          [(4) (a) The commissioner shall cancel the agency license of any licensed agency on the
             235      cancellation of the surety bond.]
             236          [(b) The license may be reinstated when the qualifying party:]
             237          [(i) files a surety bond that is concurrent with the remainder of the license period; and]
             238          [(ii) pays the reinstatement fee prescribed in Section 53-9-111 .]
             239          (4) (a) The bureau shall cancel a license when it receives notice from the insurer that
             240      liability insurance required under Subsection (2) has expired or been canceled.
             241          (b) The licensee shall be notified by the bureau when a license has been cancelled
             242      under this Subsection (4).
             243          (c) The license may be reinstated when the licensee:
             244          (i) files proof of liability insurance for the remainder of the license period; and


             245          (ii) pays the reinstatement fee prescribed in Section 53-9-111 .
             246          Section 6. Section 53-9-110 is amended to read:
             247           53-9-110. Application for registrant or apprentice license.
             248          (1) Every application for a registrant or apprentice license shall provide [information to
             249      assist the commissioner in determining the applicant's ability to meet the requirements
             250      prescribed in this chapter and contain the following] to the bureau:
             251          (a) the full name and address of the applicant;
             252          (b) [two] one passport-size color photographs of the applicant;
             253          (c) the name of the licensed agency for which the applicant will be an employee,
             254      apprentice, or contract registrant, if applicable;
             255          (d) authorization of the licensed agency or its designee to employ the apprentice or
             256      contract with the registrant, if applicable;
             257          (e) a verified statement of the applicant's experience and qualifications as provided in
             258      Section 53-9-108 ; and
             259          (f) the fee prescribed in Section 53-9-111 .
             260          (2) An application for a registrant or apprentice license or renewal shall be
             261      accompanied by a surety bond in the amount of $10,000.
             262          (3) The surety bond required by this section shall:
             263          (a) protect against liability to third persons;
             264          (b) be continuous in form and run concurrently with the license period; and
             265          (c) provide for notice to the bureau in the event of cancellation of the surety bond.
             266          (4) (a) The bureau shall cancel a license when it receives notice from the insurer that
             267      the bond required in Subsection (2) has expired or been canceled.
             268          (b) The licensee shall be notified by the bureau when a license has been cancelled
             269      under this Subsection (4).
             270          (c) The license may be reinstated when the licensee:
             271          (i) files proof of a bond for the remainder of the license period; and
             272          (ii) pays the reinstatement fee prescribed in Section 53-9-111 .
             273          Section 7. Section 53-9-111 is amended to read:
             274           53-9-111. License and registration fees -- Deposit in General Fund.
             275          (1) Fees for licensure and renewal shall be as follows:


             276          (a) for an original agency license application and license, $200, plus an additional fee
             277      for the costs of fingerprint processing and background investigation;
             278          (b) for the renewal of an agency license, $100;
             279          (c) for an original registrant or apprentice license application and license, $100, plus an
             280      additional fee for the costs of fingerprint processing and background investigation;
             281          (d) for the renewal of a registrant or apprentice license, $50;
             282          (e) for filing an agency renewal application more than 30 days after the expiration date
             283      of the license, a delinquency fee of $50;
             284          (f) for filing a registrant or apprentice renewal application more than 30 days after the
             285      expiration date of the registration, a delinquency fee of $30;
             286          (g) for the reinstatement of any license, $50;
             287          (h) for a duplicate identification card, $10; and
             288          (i) for the fingerprint processing fee, an amount that does not exceed the cost to the
             289      [department] bureau charged by the Federal Bureau of Investigation for fingerprint processing
             290      for the purpose of obtaining federal criminal history record information.
             291          (2) (a) The [commissioner] bureau may renew a license granted under this chapter
             292      upon receipt of a renewal application on forms as prescribed by the [commissioner] bureau and
             293      upon receipt of the fees prescribed in Subsection (1).
             294          (b) The renewal of a license requires the filing of [a surety bond as described in
             295      Subsections 53-9-109 (2) and (3)] all certificates of insurance or proof of surety bond as
             296      required by this chapter. Renewal of a license [shall] may not be granted more than 90 days
             297      after expiration.
             298          (c) A licensee may not engage in any activity subject to this chapter during any period
             299      between the date of expiration of the license and the renewal of the license.
             300          (3) (a) The [commissioner] bureau shall renew a suspended license if:
             301          (i) the period of suspension has been completed;
             302          (ii) the [commissioner] bureau has received a renewal application from the applicant
             303      on forms prescribed by the [commissioner] bureau; and
             304          (iii) the applicant has:
             305          (A) filed [a surety bond as described by Subsections 53-9-109 (2) and (3)] all
             306      certificates of insurance or proof of surety bond as required by this chapter; and


             307          (B) paid the fees required by this section for renewal, including a delinquency fee if the
             308      application is not received by the [commissioner] bureau within 30 days of the termination of
             309      the suspension.
             310          (b) Renewal of the license does not entitle the licensee, while the license remains
             311      suspended and until it is reinstated, to engage in any activity regulated by this chapter, or in any
             312      other activity or conduct in violation of the order or judgment by which the license was
             313      suspended.
             314          (4) The [commissioner shall] bureau may not reinstate a revoked license or accept an
             315      application for a license from a person whose license has been revoked for at least one year
             316      from the date of revocation.
             317          (5) All fees, except the fingerprint processing fee, collected by the [department] bureau
             318      under this section shall be deposited in the General Fund.
             319          Section 8. Section 53-9-113 is amended to read:
             320           53-9-113. Grounds for denial of a license -- Appeal.
             321          (1) The board may deny a license or the renewal of a license if the applicant has:
             322          (a) committed an act that, if committed by a licensee, would be grounds for probation,
             323      suspension, or revocation of a license under this chapter;
             324          (b) employed or contracted with a person who has been refused a license under this
             325      chapter or who has had a license revoked;
             326          (c) while not licensed under this chapter, committed, or aided and abetted the
             327      commission of, any act for which a license is required by this chapter; or
             328          (d) knowingly made a material misstatement in connection with an application for a
             329      license or renewal of a license.
             330          (2) (a) The board's denial of a license under this chapter shall:
             331          (i) be in writing;
             332          (ii) describe the basis for the denial; and
             333          (iii) inform the applicant that if the applicant desires a hearing to contest the denial, the
             334      applicant shall submit a request in writing to the board within 30 days after the denial has been
             335      sent [by the department] by certified mail to the applicant.
             336          (b) The board shall schedule a hearing on the denial for the next board meeting after
             337      the applicant's request for a hearing has been received by the board.


             338          (3) The decision of the board may be appealed to the commissioner, who may:
             339          (a) return the case to the board for reconsideration;
             340          (b) modify the board's decision; or
             341          (c) reverse the board's decision.
             342          (4) The [department] commissioner shall promptly issue a final order [of the
             343      commissioner] and send the order by mail to the applicant.
             344          (5) Decisions of the commissioner are subject to judicial review pursuant to Section
             345      63G-4-402 .
             346          Section 9. Section 53-9-117 is amended to read:
             347           53-9-117. Authority to investigate complaint -- Filing of complaints -- Response --
             348      Retention of records -- Appeal -- Penalties collected.
             349          (1) The [commissioner] bureau or board may initiate an investigation of any person
             350      advertising services or engaged in performing services that require a license under this chapter
             351      and shall investigate if a licensee is engaged in activities that do not comply with or are
             352      prohibited by this chapter.
             353          (2) The [commissioner] bureau shall enforce the provisions of this chapter without
             354      regard to the place or location in which a violation may have occurred, and on the complaint of
             355      any person, may investigate any alleged violation of this chapter or the business and business
             356      methods of any licensee or applicant for licensure under this chapter.
             357          (3) Complaints against any licensee shall be filed with the [commissioner] bureau in
             358      writing on forms prescribed by the [commissioner] bureau.
             359          (a) Upon receipt of a complaint, or at the request of the board, the [commissioner]
             360      bureau shall assign the complaint to an investigator within the [department] bureau.
             361          (b) The [department] bureau will provide a copy of the complaint to the licensee who
             362      shall answer the complaint in writing within 15 working days of the date the complaint is sent
             363      [by the department] to the licensee by certified mail.
             364          (4) In any investigation undertaken by the [department] bureau, each licensee on
             365      request shall provide records and truthfully respond to questions concerning activities regulated
             366      under this chapter.
             367          (a) These records shall be maintained for five years at the principal place of business of
             368      the licensee or at another location approved by the board for a person whose license has been


             369      terminated, canceled, or revoked.
             370          (b) On request by the [department] bureau the licensee shall:
             371          (i) during normal business hours or other time acceptable to the parties, make its
             372      records available immediately to the [department] bureau unless the [department] bureau
             373      determines that an extension may be granted; and
             374          (ii) provide copies of any business records requested by the [department] bureau.
             375          (5) Upon completion of the investigation, the [department] bureau shall report its
             376      findings of fact to the board, and shall make a recommendation as to whether disciplinary
             377      action is warranted under [Subsection] Section 53-9-118 [(1)], including whether emergency
             378      action should be taken under Subsection [ 53-9-118 (2)] (8).
             379          (6) (a) If the [department] bureau recommends disciplinary action, a notice of the
             380      recommendations in Subsection (5) shall be sent by the [department] bureau to the licensee by
             381      certified mail.
             382          (b) The notice shall include the [right to request a hearing before the board, and require
             383      that any such request shall be in writing and received by the board within 30 working days of
             384      the date the notice of recommendations was sent by the department to the licensee by certified
             385      mail] date and time of the meeting where the board will consider the bureau's recommendation.
             386          (c) The board shall give the licensee an opportunity at the meeting to present testimony
             387      and evidence in response to the bureau's recommendation.
             388          (7) If the board finds, based on the investigation or hearing, that a violation of Section
             389      53-9-118 has occurred, notice of the board's decision shall be sent to the licensee at the
             390      licensee's most recent address in the bureau's files by certified mail, return receipt requested.
             391          (8) Based on information the board receives from the investigation or during a hearing,
             392      the board may:
             393          (a) dismiss the complaint if the board finds it is without merit;
             394          (b) take emergency action;
             395          (c) issue a letter of concern, if applicable;
             396          (d) impose a civil penalty not to exceed $500;
             397          (e) place the license on suspension for a period of not more than 12 months;
             398          (f) revoke the license; and
             399          (g) place all records, evidence findings, and conclusion, and any other information


             400      pertinent to the investigation, in a confidential and protected records section of the licensee's
             401      file maintained at the bureau.
             402          (9) A letter of concern issued for a violation of Section 53-9-118 is a document that is
             403      retained by the bureau and may be used in future disciplinary actions against a licensee.
             404          (10) (a) Appeal of the board's decision shall be made in writing to the commissioner
             405      within 15 days from the date the board's decision is mailed to the licensee.
             406          (b) The commissioner shall review the board's finding and may affirm, return to the
             407      board for reconsideration, reverse, adopt, modify, supplement, amend, or reject the
             408      recommendation of the board.
             409          (11) (a) The commissioner shall issue a final written order within 30 days outlining the
             410      decision on appeal.
             411          (b) The final order is final agency action for purposes of judicial review under Section
             412      63G-4-402 .
             413          (12) (a) If the board finds, based on the bureau's investigation, that the public health,
             414      safety, or welfare requires emergency action, the board may order a summary suspension of a
             415      license pending proceedings for revocation or other action.
             416          (b) If the board issues a summary suspension order, the board shall issue to the licensee
             417      a written notice of the order and indicate the licensee's right to request a formal hearing before
             418      the board. The notice shall be mailed to the licensee by certified mail, return receipt requested.
             419          (c) The licensee's request for a formal hearing shall be in writing and mailed to the
             420      bureau within 30 working days of the date the summary suspension was mailed to the licensee.
             421          (13) All penalties collected under this section shall be deposited in the General Fund.
             422          Section 10. Section 53-9-118 is amended to read:
             423           53-9-118. Grounds for disciplinary action.
             424          [(1)] The board may suspend or revoke a license or registration or deny an application
             425      for a license if a person engages in [any of the following]:
             426          [(a)] (1) fraud or willful misrepresentation in applying for an original license or
             427      renewal of an existing license;
             428          [(b)] (2) using any letterhead, advertising, or other printed matter in any manner
             429      representing that the licensee is an instrumentality of the federal government, a state, or any
             430      political subdivision of a state;


             431          [(c)] (3) using a name different from that under which the licensee is currently licensed
             432      for any advertising, solicitation, or contract to secure business unless the name is an authorized
             433      fictitious name;
             434          [(d)] (4) impersonating, permitting, or aiding and abetting an employee or independent
             435      contractor to impersonate a peace officer or employee of the United States, any state, or a
             436      political subdivision of a state;
             437          [(e)] (5) knowingly violating, advising, encouraging, or assisting the violation of any
             438      statute, court order, or injunction in the course of a business regulated under this chapter;
             439          [(f)] (6) falsifying fingerprints or photographs while operating under this chapter;
             440          [(g)] (7) conviction of a felony;
             441          [(h)] (8) conviction of any act involving illegally using, carrying, or possessing a
             442      dangerous weapon;
             443          [(i)] (9) conviction of any act involving moral turpitude;
             444          [(j)] (10) conviction of any act of personal violence or force against any person or
             445      conviction of threatening to commit any act of personal violence or force against any person;
             446          [(k)] (11) soliciting business for an attorney in return for compensation;
             447          [(l)] (12) conviction of any act constituting dishonesty or fraud;
             448          [(m)] (13) being placed on probation, parole, or named in an outstanding arrest
             449      warrant;
             450          [(n)] (14) committing or permitting any employee or independent contractor to commit
             451      any act during the period when the license is expired or suspended;
             452          [(o)] (15) willfully neglecting to render to a client services or a report as agreed
             453      between the parties and for which compensation has been paid or tendered in accordance with
             454      the agreement of the parties unless the licensee chooses to withdraw from the case and returns
             455      the funds for work not yet completed;
             456          [(p)] (16) the unauthorized release of information acquired on behalf of a client by a
             457      licensee, or its employee or contract agent as a result of activities regulated under this chapter;
             458          [(q)] (17) failing to cooperate with, misrepresenting to, or refusing access to business
             459      or investigative records requested by the board or an authorized representative of the
             460      [department] bureau engaged in an official investigation pursuant to this chapter;
             461          [(r)] (18) employing or contracting with any unlicensed or improperly licensed person


             462      or agency to conduct activities regulated under this chapter if the licensure status was known or
             463      could have been ascertained by reasonable inquiry;
             464          [(s)] (19) permitting, authorizing, aiding, or in any way assisting an employee to
             465      conduct services as described in this chapter on an independent contractor basis and not under
             466      the authority of the licensed agency;
             467          [(t)] (20) failure to maintain in full force and effect liability or workers' compensation
             468      insurance, or a surety bond, if applicable;
             469          [(u)] (21) conducting private investigation services regulated by this chapter on a
             470      revoked or suspended license;
             471          [(v)] (22) accepting employment, contracting, or in any way engaging in employment
             472      that has an adverse impact on investigations being conducted on behalf of clients;
             473          [(w)] (23) advertising in a false, deceptive, or misleading manner;
             474          [(x)] (24) refusing to display the identification card issued by the [department] bureau
             475      to any person having reasonable cause to verify the validity of the license;
             476          [(y)] (25) committing any act of unprofessional conduct;
             477          [(z)] (26) conviction of any act of illegally obtaining or disseminating private,
             478      controlled, or protected records under Section 63G-2-801 ; or
             479          [(aa) engaging in] (27) any other conduct prohibited by this chapter.
             480          [(2) (a) If the board finds, based on the investigation, that the public health, safety, or
             481      welfare requires emergency action, the board may order a summary suspension of a license
             482      pending proceedings for revocation or other action.]
             483          [(b) If the board issues a summary suspension order, the commissioner shall issue to
             484      the licensee a written notice of the order and indicate the licensee's right to request a formal
             485      hearing before the board.]
             486          [(c) The licensee's request for a formal hearing shall be in writing and received by the
             487      department within 30 working days of the date the summary suspension was sent by the
             488      department to the licensee by certified mail.]
             489          [(3) If the board finds, based on the investigation or hearing, that a violation under
             490      Subsection (1) has occurred, notice will be sent to the licensee of the board's decision by
             491      mailing a true copy to the licensee's last-known address in the department's files by certified
             492      mail, return receipt requested.]


             493          [(4) Based on information the board receives from the investigation or during a
             494      hearing, it may do any of the following:]
             495          [(a) dismiss the complaint if the board believes it is without merit;]
             496          [(b) take emergency action;]
             497          [(c) issue a letter of concern, if applicable;]
             498          [(d) impose a civil fine not to exceed $500;]
             499          [(e) place the license on suspension for a period of not more than 12 months;]
             500          [(f) revoke the license or registration; and]
             501          [(g) place all records, evidence findings, and conclusion, and any other information
             502      pertinent to the investigation, in a confidential and protected records section of the file
             503      maintained at the department.]
             504          [(5) A letter of concern issued pursuant to Section 53-9-118 is a document that is
             505      retained by the department and may be used in future disciplinary actions against a licensee.]
             506          [(6) Appeal of the board's decision shall be made in writing to the commissioner within
             507      15 days of the date of issuance of the board's decision. The commissioner shall review the
             508      finding by the board and may affirm, return to the board for reconsideration, reverse, adopt,
             509      modify, supplement, amend, or reject the recommendation of the board.]
             510          [(7) The department shall issue a final written order within 30 days outlining the
             511      commissioner's decision on the appeal. The final order is final agency action for purposes of
             512      judicial review under Section 63G-4-402 .]
             513          [(8) All fines collected under this section shall be deposited in the General Fund.]
             514          Section 11. Section 53-11-115 is amended to read:
             515           53-11-115. License fees -- Deposit in General Fund.
             516          (1) Fees for licensure, registration, and renewal are:
             517          (a) for an original bail enforcement agent license application and license, $250, which
             518      shall include the costs of fingerprint processing and background investigation;
             519          (b) for the renewal of a bail enforcement agent or bail bond recovery agency license,
             520      $150;
             521          (c) for an original bail recovery agent license application and license, $150, which shall
             522      include the costs of fingerprint processing and background investigation;
             523          (d) for the renewal of each bail recovery agent license, $100;


             524          (e) for an original bail recovery apprentice license application and license, $150, which
             525      shall include the costs of fingerprint processing and background investigation;
             526          (f) for the renewal of each bail recovery apprentice license, $100;
             527          (g) for filing a renewal application under Subsection (1)(b) more than 30 days after the
             528      expiration date of the license, a delinquency fee of $50;
             529          (h) for filing a renewal application under Subsection (1)(d) more than 30 days after the
             530      expiration date of the registration, a delinquency fee of $30;
             531          (i) for filing a renewal application under Subsection (1)(f) more than 30 days after the
             532      expiration date of the apprentice license, a delinquency fee of $30;
             533          (j) for the reinstatement of a bail enforcement agent or bail bond recovery agency
             534      license, $50;
             535          (k) for a duplicate identification card, $10; and
             536          (l) for reinstatement of an identification card, $10.
             537          (2) (a) The board may renew a license granted under this chapter upon receipt of an
             538      application on forms as prescribed by the board and upon receipt of the fees prescribed in
             539      Subsection (1).
             540          (b) The renewal of a bail enforcement agent, bail recovery agent, or bail recovery
             541      apprentice license requires the filing of a bond or liability insurance policy as [described]
             542      required in Subsections 53-9-109 (2) and (3).
             543          (c) A license may not be renewed more than 90 days after its expiration.
             544          (d) A licensee may not engage in any activity subject to this chapter during any period
             545      between the date of expiration of the license and the renewal of the license.
             546          (3) (a) The board may reinstate a suspended license upon completion of the term of
             547      suspension.
             548          (b) Renewal of the license does not entitle the licensee, while the license remains
             549      suspended and until it is reinstated, to engage in any activity regulated by this chapter, or in any
             550      other activity or conduct in violation of the order or judgment by which the license was
             551      suspended.
             552          (4) The board may not reinstate a revoked license or accept an application for a license
             553      from a person whose license has been revoked for at least one year after the date of revocation.
             554          (5) All fees collected by the department under this section shall be deposited in the


             555      General Fund.




Legislative Review Note
    as of 2-10-11 1:53 PM


Office of Legislative Research and General Counsel


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