Bill Text: CA SB1271 | 2019-2020 | Regular Session | Amended
Bill Title: Private investigator Act: licensure: limited liability companies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-06-29 - Referred to Com. on B. & P. [SB1271 Detail]
Download: California-2019-SB1271-Amended.html
|
Amended
IN
Senate
May 19, 2020 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Senate Bill
No. 1271
| Introduced by Senator Morrell |
February 21, 2020 |
An act to amend Sections 7512.3, 7512.14, 7512.15, 7520.3, 7525.1, 7529, 7533.5, 7538, 7538.5, 7539, and 7570 and 7539 of the Business and Professions Code, relating to professions and vocations.
LEGISLATIVE COUNSEL'S DIGEST
SB 1271, as amended, Morrell.
Private investigator Act: licensure: limited liability companies.
Existing law, the Private Investigator Act, provides for the licensure and regulation of private investigators by the Bureau of Security and Investigative Services. Existing law, until January 1, 2021, authorizes the bureau to issue a private investigator license to a limited liability company. A violation of the act is a crime.
This bill would extend the authority for the bureau to issue a private investigator license to a limited liability company until January 1, 2024. The bill would make conforming and other nonsubstantive changes. By extending the operation of these provisions, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 7512.3 of the Business and Professions Code, as amended by Section 1 of Chapter 569 of the Statutes of 2017, is amended to read:7512.3.
(a) As used in this chapter, “person” includes any individual, firm, company, limited liability company, association, organization, partnership, and corporation.(b) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 2.
Section 7512.3 of the Business and Professions Code, as amended by Section 2 of Chapter 569 of the Statutes of 2017, is amended to read:7512.3.
(a) As used in this chapter, “person” includes any individual, firm, company, association, organization, partnership, and corporation.(b) This section shall become operative on January 1, 2024.
SEC. 3.
Section 7512.14 of the Business and Professions Code is amended to read:7512.14.
(a) As used in this chapter, “member” means an individual who is a member of a limited liability company as specified in Section 17704.01 of the Corporations Code.(b) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 4.
Section 7512.15 of the Business and Professions Code is amended to read:7512.15.
(a) As used in this chapter, “manager” means an individual designated under an operating agreement of a manager-managed limited liability company who is responsible for performing the management functions for the limited liability company specified in subdivision (c) of Section 17704.07 of the Corporations Code.(b) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 5.
Section 7520.3 of the Business and Professions Code is amended to read:7520.3.
(a) As a condition of the issuance, reinstatement, reactivation, or continued valid use of a license under this chapter, a limited liability company shall, in accordance with this section, maintain a policy or policies of insurance against liability imposed on or against it by law for damages arising out of claims based upon acts, errors, or omissions arising out of the private investigator services it provides.(b) The total aggregate limit of liability under the policy or policies of insurance required under this section shall be as follows:
(1) For a limited liability company licensee with five or fewer persons named as
members pursuant to subdivision (i) of Section 7525.1, the aggregate limit shall not be less than one million dollars ($1,000,000).
(2) For a limited liability company licensee with more than five persons named as members pursuant to subdivision (i) of Section 7525.1, an additional one hundred thousand dollars ($100,000) of insurance shall be obtained for each person named as members of the licensee except that the maximum amount of insurance is not required to exceed five million dollars ($5,000,000) in any one designated period, less amounts paid in defending, settling, or discharging claims as set forth under this section.
(c) Prior to the issuance, reinstatement, or reactivation of a limited liability company license as provided under this chapter, the applicant or licensee
shall, in the manner prescribed by the bureau, submit the information and documentation required by this section and requested by the bureau, demonstrating compliance with the financial security requirements specified by this section.
(d) For any insurance policy secured by a licensee in satisfaction of this section, a Certificate of Liability Insurance, signed by an authorized agent or employee of the insurer, shall be submitted electronically or otherwise to the bureau. The insurer issuing the certificate shall report to the bureau the following information for any policy required under this section: name, license number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable. The insurer shall list the bureau as the certificate holder for the purposes of receiving notifications related to
the policy’s status.
(e) (1) If a licensee fails to maintain sufficient insurance as required by this section, or fails to provide proof of the required insurance upon request by the bureau, the license is subject to suspension and shall be automatically suspended pursuant to this subdivision until the date that the licensee provides proof to the bureau of compliance with the insurance coverage requirement.
(2) Prior to an automatic suspension, the bureau shall notify the licensee, in writing, that it has 30 days to provide proof to the bureau of having the required insurance or the license shall be automatically suspended.
(3) If the licensee fails to provide proof of insurance coverage within this
period, the bureau may automatically suspend the license.
(f) If the license of a limited liability company is suspended pursuant to subdivision (e), each member of the limited liability company shall be personally liable up to one million dollars ($1,000,000) each for damages resulting to third parties in
connection with the company’s performance, during the period of suspension, of any act or contract when a license is required by this chapter.
(g) On and after July 1, 2018, a licensee organized as a limited liability company shall report a paid or pending claim against its liability insurance to the bureau, which shall post a notice of the claim on the Department of Consumer Affairs BreEZe License Verification Internet Web page.
(h) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 6.
Section 7525.1 of the Business and Professions Code, as amended by Section 11 of Chapter 569 of the Statutes of 2017, is amended to read:7525.1.
An application shall be verified and shall include:(a) The full name and business address of the applicant.
(b) The name under which the applicant intends to do business.
(c) A statement as to the general nature of the business in which the applicant intends to engage.
(d) A verified statement of their experience qualifications.
(e) (1) If the applicant is an individual, a qualified manager, a partner of a partnership, an officer of a corporation
designated in subdivision (h), or a member, officer, or manager of a limited liability company designated in subdivision (i), one personal identification form provided by the bureau upon which shall appear a photograph taken within one year immediately preceding the date of the filing of the application together with two legible sets of fingerprints, one set of which shall be forwarded to the Federal Bureau of Investigation for purposes of a background check, on a form approved by the Department of Justice, and a personal description of each person, respectively. The identification form shall include residence addresses and employment history for the previous five years and be signed under penalty of perjury.
(2) The bureau may impose a fee not to exceed three dollars ($3) for processing classifiable fingerprint cards submitted by applicants,
excluding those submitted into an electronic fingerprint system using electronic fingerprint technology.
(f) In addition, if the applicant for a license is an individual, the application shall list all other names known as or used during the past 10 years and shall state that the applicant is to be personally and actively in charge of the business for which the license is sought. If any other qualified manager is to be actively in charge of the business, the application shall be subscribed, verified, and signed by the applicant, under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed by that person under penalty of perjury.
(g) If the applicants for a license are copartners, the application shall
state the true names and addresses of all partners and the name of the partner to be actively in charge of the business for which the license is sought and list all other names known as or used during the past 10 years. If a qualified manager other than a partner is to be actively in charge of the business, then the application shall be subscribed, verified, and signed by all of the partners under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed by that person, under penalty of perjury, under penalty of perjury by all of the partners and the qualified manager, or by all of the partners or the qualified manager.
(h) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of the chief
executive officer, secretary, chief financial officer, and any other corporate officer who will be active in the business to be licensed. The application shall also state the name and address of the designated person to be actively in charge of the business for which the license is sought. The application shall be subscribed, verified, and signed by a duly authorized officer of the applicant and by the qualified manager thereof, under penalty of perjury.
(i) If the applicant for a license is a limited liability company, the application shall state the true name and complete residence address of each member, manager, and any officer who will be active in the business to be licensed. A certified copy of the articles of organization, as filed by the Secretary of State, shall be supplied to the bureau upon request. In the case of a manager-managed limited
liability company, the application shall be subscribed, verified, and signed by a manager; otherwise, in the case of a member-managed limited liability company, the application shall be subscribed, verified, and signed by a duly authorized member of the applicant and by the qualified manager thereof. The application shall also state whether any of the members, managers, officers, or the qualified manager has ever used an alias.
(j) Any other information, evidence, statements, or documents as may be required by the director.
(k) At the discretion of the applicant, a valid email address.
(l) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 7.
Section 7525.1 of the Business and Professions Code, as amended by Section 12 of Chapter 569 of the Statutes of 2017, is amended to read:7525.1.
An application shall be verified and shall include:(a) The full name and business address of the applicant.
(b) The name under which the applicant intends to do business.
(c) A statement as to the general nature of the business in which the applicant intends to engage.
(d) A verified statement of their experience qualifications.
(e) (1) If the applicant is an individual, a qualified manager, a partner of a partnership, or an officer of a
corporation designated in subdivision (h), one personal identification form provided by the bureau upon which shall appear a photograph taken within one year immediately preceding the date of the filing of the application together with two legible sets of fingerprints, one set of which shall be forwarded to the Federal Bureau of Investigation for purposes of a background check, on a form approved by the Department of Justice, and a personal description of each person, respectively. The identification form shall include residence addresses and employment history for the previous five years and be signed under penalty of perjury.
(2) The bureau may impose a fee not to exceed three dollars ($3) for processing classifiable fingerprint cards submitted by applicants, excluding those submitted into an electronic fingerprint system using
electronic fingerprint technology.
(f) In addition, if the applicant for a license is an individual, the application shall list all other names known as or used during the past 10 years and shall state that the applicant is to be personally and actively in charge of the business for which the license is sought. If any other qualified manager is to be actively in charge of the business, the application shall be subscribed, verified, and signed by the applicant, under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed by that person under penalty of perjury.
(g) If the applicants for a license are copartners, the application shall state the true names and addresses of all partners and the name
of the partner to be actively in charge of the business for
which the license is sought and list all other names known as or used during the past 10 years. If a qualified manager other than a partner is to be actively in charge of the business, then the application shall be subscribed, verified, and signed by all of the partners under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed under penalty of perjury by that person, by all of the partners and the qualified manager, or by all of the partners or the qualified manager.
(h) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of the chief executive officer, secretary, chief financial officer, and any other corporate officer who will be active in the business to be licensed.
The application shall also state the name and address of the designated person to be actively in charge of the business for which the license is sought. The application shall be subscribed, verified, and signed by a duly authorized officer of the applicant and by the qualified manager thereof, under penalty of perjury.
(i) Any other information, evidence, statements, or documents as may be required by the director.
(j) At the discretion of the applicant, a valid email address.
(k) This section shall become operative on January 1, 2024.
SEC. 8.
Section 7529 of the Business and Professions Code, as amended by Section 2 of Chapter 326 of the Statutes of 2019, is amended to read:7529.
(a) (1) Upon the issuance of a license, a pocket card of the size, design, and content as may be determined by the director or the director’s designee shall be issued by the bureau to each licensee, as follows:(A) If the licensee is an individual, the pocket card shall be issued to the licensee and to the licensee’s qualified manager.
(B) If the licensee is a partnership, the pocket card shall be issued to each partner of the partnership licensee active in the business and to the licensee’s qualified manager.
(C) If the licensee is a corporation, the
pocket card shall be issued to each officer active in the business and to the licensee’s qualified manager.
(D) If the licensee is a limited liability company, the pocket card shall be issued to each member, officer, and manager of the licensee active in the business and to the licensee’s qualified manager.
(2) The pocket card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain a photograph of the licensee, or bearer of the card, if the licensee is other than an individual. The card shall clearly state that the person is licensed as a private investigator or is the qualified manager, officer, member, or manager of the licensee. The pocket card is to be composed of a durable material and may incorporate technologically advanced
security features. The bureau may charge a fee sufficient to reimburse the department’s costs for furnishing the pocket card. The fee charged shall not exceed the actual direct costs for system development, maintenance, and processing necessary to provide this service and shall not exceed sixteen dollars ($16). When the position, office, or association with a licensee belonging to a person to whom a card is issued is terminated, the person shall surrender the card to the licensee and, within five days thereafter, the licensee shall mail or deliver the card to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display the person’s valid pocket card as provided by regulation.
(3) This subdivision shall become inoperative on January 1, 2024.
(b) (1) Upon the issuance of and with each biennial renewal of a license, a license in the form of an enhanced photo identification card of the size, design, and content as may be determined by the director or the director’s designee shall be issued by the bureau to each licensee, as follows:
(A) If the licensee is an individual, the enhanced photo identification card shall be issued to the licensee and to the licensee’s qualified manager.
(B) If the licensee is a partnership, the enhanced photo identification card shall be issued to each partner of the partnership licensee active in the business and to the licensee’s qualified manager.
(C) If the licensee is a corporation, the enhanced photo identification
card shall be issued to each officer active in the business and to the licensee’s qualified manager.
(D) If the licensee is a limited liability company, the enhanced photo identification card shall be issued to each member, officer, and manager of the licensee active in the business and to the licensee’s qualified manager.
(2) The enhanced photo identification card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain the name of the licensee, license expiration date, and a photograph of the licensee. The enhanced photo identification card shall clearly state that the person is licensed as a private investigator or is the qualified manager or officer of the licensee. The enhanced photo identification card is to be composed of a durable material and may
incorporate technologically advanced security features. The bureau may recover its costs in an amount sufficient to reimburse the department’s costs for furnishing the enhanced photo identification card. The fee charged shall not exceed the actual direct costs for system development, maintenance, and processing necessary to provide this service. The total amount of costs shall be recovered by including that amount in the fee charged for the initial application of and renewal of licensure. When the position, office, or association with a licensee belonging to a person to whom a card is issued is terminated, the person shall surrender the card to the licensee and, within five days thereafter, the licensee shall mail or deliver the card to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display the person’s valid enhanced photo identification
card as provided by regulation.
(3) This subdivision shall become operative only if the January 1, 2024, repeal date for this section established in subdivision (c) is deleted or extended, and in that event shall become operative on January 1, 2024.
(c) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted statute deletes or extends that date.
SEC. 9.
Section 7529 of the Business and Professions Code, as amended by Section 3 of Chapter 326 of the Statutes of 2019, is amended to read:7529.
(a) Upon the issuance of and with each biennial renewal of a license, a license in the form of an enhanced photo identification card of the size, design, and content as may be determined by the director or the director’s designee shall be issued by the bureau to each licensee, as follows:(1) If the licensee is an individual, the enhanced photo identification card shall be issued to the licensee and to the licensee’s qualified manager.
(2) If the licensee is a partnership, the enhanced photo identification card shall be issued to each partner of the partnership licensee active in the business and to the licensee’s qualified manager.
(3) If the licensee is a corporation, the enhanced photo identification card shall be issued to each officer active in the business and to the licensee’s qualified manager.
(b) The enhanced photo identification card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain the name of the licensee, license expiration date, and a photograph of the licensee. The enhanced photo identification card shall clearly state that the person is licensed as a private investigator or is the qualified manager or officer of the licensee. The enhanced photo identification card is to be composed of a durable material and may incorporate technologically advanced security features. The bureau may recover its costs in an amount sufficient to reimburse the department’s
costs for furnishing the enhanced photo identification card. The fee charged shall not exceed the actual direct costs for system development, maintenance, and processing
necessary to provide this service. The total amount of costs shall be recovered by including that amount in the fee charged for the initial application of and renewal of licensure. When the position, office, or association with a licensee belonging to a person to whom a card is issued is terminated, the person shall surrender the card to the licensee and, within five days thereafter, the licensee shall mail or deliver the card to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display the person’s valid enhanced photo identification card as provided by regulation.
(c) This section shall become operative on January 1, 2024.
SEC. 10.
Section 7533.5 of the Business and Professions Code, as amended by Section 21 of Chapter 569 of the Statutes of 2017, is amended to read:7533.5.
(a) A licensee shall notify the bureau within 30 days of any change in its corporate officers required to be named pursuant to subdivision (h) of Section 7525.1 or members or managers required to be named pursuant to subdivision (i) of Section 7525.1, and of any addition of a new partner.(b) Applications, on forms prescribed by the director, shall be submitted by all new officers, members or managers, and partners. The director may suspend or revoke a license issued under this chapter if the director determines that the new officer, member or manager, or partner of a licensee has committed any of the acts constituting grounds to deny an application for a license or to take disciplinary
action against a licensee pursuant to Section 7538 or 7538.5, respectively.
(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 11.
Section 7533.5 of the Business and Professions Code, as amended by Section 22 of Chapter 569 of the Statutes of 2017, is amended to read:7533.5.
(a) A licensee shall notify the bureau within 30 days of any change in its corporate officers required to be named pursuant to subdivision (h) of Section 7525.1, and of any addition of a new partner.(b) Applications, on forms prescribed by the director, shall be submitted by all new officers and partners. The director may suspend or revoke a license issued under this chapter if the director determines that the new officer or partner of a licensee has committed any of the acts constituting grounds to deny an application for a license or to take disciplinary action against a licensee pursuant to Section 7538 or 7538.5, respectively.
(c) This section shall become operative on January 1,
2024.
SEC. 12.
Section 7538 of the Business and Professions Code, as amended by Section 25 of Chapter 569 of the Statutes of 2017, is amended to read:7538.
(a) After a hearing the director may deny a license unless the applicant makes a showing satisfactory to the director that the applicant, if an individual, and the applicant’s qualified manager have not, or, if the applicant is a person other than an individual, that its qualified manager and each of its officers, partners, members, or managers have not:(1) Committed any act that, if committed by a licensee, would be a ground for the suspension or revocation of a license under this chapter.
(2) Committed any act constituting dishonesty or fraud.
(3) Committed any
act or crime constituting grounds for denial of licensure under Section 480, including illegally using, carrying, or possessing a deadly weapon.
(4) Been refused a license under this chapter or had a license revoked.
(5) Been an officer, partner, qualified manager, member, or manager of any person who has been refused a license under this chapter or whose license has been revoked.
(6) While unlicensed committed, or aided and abetted the commission of, any act for which a license is required by this chapter.
(7) Knowingly made any false statement in their application.
(b) This
section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 13.
Section 7538 of the Business and Professions Code, as amended by Section 26 of Chapter 569 of the Statutes of 2017, is amended to read:7538.
(a) After a hearing the director may deny a license unless the applicant makes a showing satisfactory to the director that the applicant, if an individual, and the applicant’s qualified manager have not, or, if the applicant is a person other than an individual, that its qualified manager and each of its officers and partners have not:(1) Committed any act that, if committed by a licensee, would be a ground for the suspension or revocation of a license under this chapter.
(2) Committed any act constituting dishonesty or fraud.
(3) Committed any act or crime
constituting grounds for denial of licensure under Section 480, including illegally using, carrying, or possessing a deadly weapon.
(4) Been refused a license under this chapter or had a license revoked.
(5) Been an officer, partner, or qualified manager of any person who has been refused a license under this chapter or whose license has been revoked.
(6) While unlicensed committed, or aided and abetted the commission of, any act for which a license is required by this chapter.
(7) Knowingly made any false statement in their application.
(b) This section shall become operative on January
1, 2024.
SEC. 14.
Section 7538.5 of the Business and Professions Code, as amended by Section 27 of Chapter 569 of the Statutes of 2017, is amended to read:7538.5.
(a) The director may refuse to issue any license provided for in this chapter to any of the following:(1) An individual who has had any license revoked, has a license currently under suspension, or failed to renew their license while under suspension.
(2) An individual who, while acting as a partner of a partnership, an officer or director of a corporation, or a member, manager, or officer of a limited liability company, had their license revoked, has a license currently under suspension, or failed to renew their license while under suspension.
(3) An
individual who, while acting as a partner of the partnership, an officer, director of the corporation, or a member, manager, or officer of a limited liability company meets both of the following conditions:
(A) The individual was a partner of any partnership, an officer or director of any corporation, or a member, manager, or officer of any limited liability company whose license was revoked, is currently under suspension, or was not renewed while under suspension.
(B) While acting as a partner, officer, director, member, or manager, they participated in any of the prohibited acts for which the license was revoked or suspended.
(4) An individual who is serving or has served as the qualified manager for any licensee
that has had its license revoked, is currently under suspension, or failed to renew while under suspension.
(b) This section shall remain in effect only until January 1,
2024, and as of that date is repealed.
SEC. 15.
Section 7538.5 of the Business and Professions Code, as amended by Section 8 of Chapter 92 of the Statutes of 2018, is amended to read:7538.5.
(a) The director may refuse to issue any license provided for in this chapter to any of the following:(1) An individual who has had any license revoked, has a license currently under suspension, or failed to renew their license while under suspension.
(2) An individual who, while acting as a partner of a partnership, or an officer or director of a corporation, had their license revoked, has a license currently under suspension, or failed to renew their license while under suspension.
(3) An individual, who, while acting as a partner of the partnership, or an
officer or director of the corporation, meets both of the following conditions:
(A) The individual was a partner of any partnership, or an officer or director of any corporation, whose license was revoked, is currently under suspension, or was not renewed while under suspension.
(B) The individual, while acting as a partner, officer, or director, participated in any of the prohibited acts for which the license was revoked or suspended.
(4) An individual who is serving or has served as the qualified manager for any licensee that has had its license revoked, is currently under suspension, or failed to renew while under suspension.
(b) This section shall
become operative on January 1, 2024.
SEC. 16.
Section 7539 of the Business and Professions Code, as amended by Section 29 of Chapter 569 of the Statutes of 2017, is amended to read:7539.
(a) Any licensee or officer, director, partner, member, manager, or qualified manager of a licensee may divulge to any law enforcement officer or district attorney, or their representative, any information they may acquire as to any criminal offense, but they shall not divulge to any other person, except as otherwise required by law, any information acquired by them except at the direction of the employer or client for whom the information was obtained.(b) A licensee or officer, director, partner, member, manager, qualified manager, or employee of a licensee shall not knowingly make any false report to their employer or client for whom information was being obtained.
(c) A written report shall not be submitted to a client except by the licensee, qualified manager, or a person authorized by one or either of them, and the person submitting the report shall exercise diligence in ascertaining whether or not the facts and information in the report are true and correct.
(d) A licensee, or officer, director, partner, manager, member, qualified manager, or employee of a licensee shall not use a badge in connection with the official activities of the licensee’s business.
(e) A licensee, or officer, director, partner, manager, member, qualified manager, or employee of a licensee, shall not use a title, or wear a uniform, or use an insignia, or use an identification card, or make any statement with
the intent to give an impression that
they are connected in any way with the federal government, a state government, or any political subdivision of a state government.
(f) A licensee, or officer, partner, manager, member, qualified manager, or employee of a licensee shall not use any identification to indicate that they are licensed as a private investigator other than the official identification card issued by the bureau or the business card regularly used by the business. However, a licensee may issue an employer identification card.
(g) A licensee, or officer, director, partner, manager, member, qualified manager, or employee of a licensee, shall not enter any private building or portion thereof, except premises commonly accessible to the public, without the consent of the owner or of the person
in legal possession thereof.
(h) A licensee shall not permit an employee or agent in
their own name to advertise, engage clients, furnish reports or present bills to clients, or in any manner conduct business for which a license is required under this chapter. All business of the licensee shall be conducted in the name of and under the control of the licensee.
(i) A licensee, or officer, director, partner, manager, member, qualified manager, or employee of a licensee shall not knowingly and directly solicit employment from any person who has directly sustained bodily injury or from that person’s spouse or other family member to obtain authorization on behalf of the injured person as an investigator to investigate the accident or act that resulted in injury or death to that person or damage to the property of that person. Nothing in this subdivision shall prohibit the soliciting of employment from that injured
person’s attorney, insurance company, self-insured administrator, insurance adjuster, employer, or any other person having an indirect interest in the investigation of the injury. This subdivision shall not apply to any business agent or attorney employed by a labor organization. A licensee, or officer, director, partner, manager, member, or qualified manager of a licensee shall not pay or compensate any of their employees or agents on the basis of a bonus, bounty, or quota system whereby a premium is placed on the number of employer or client rule violations or infractions purportedly discovered as a result of any investigation made by a licensee.
(j) A licensee shall not use a fictitious business name in connection with the official activities of the licensee’s business, except as provided by the bureau.
(k) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 17.
Section 7539 of the Business and Professions Code, as amended by Section 9 of Chapter 92 of the Statutes of 2018, is amended to read:7539.
(a) A licensee or officer, director, partner, or qualified manager of a licensee may divulge to any law enforcement officer or district attorney, or their representative, any information they may acquire as to any criminal offense, but they shall not divulge to any other person, except as otherwise required by law, any information acquired by them except at the direction of the employer or client for whom the information was obtained.(b) A licensee or officer, director, partner, qualified manager, or employee of a licensee shall not knowingly make any false report to their employer or client for whom information was being obtained.
(c) A written report shall not be submitted to a client except by the licensee, qualified manager, or a person authorized by one or either of them, and the person submitting the report shall exercise diligence in ascertaining whether or not the facts and information in the report are true and correct.
(d) A licensee, or officer, director, partner, qualified manager, or employee of a licensee shall not use a badge in connection with the official activities of the licensee’s business.
(e) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not use a title, or wear a uniform, or use an insignia, or use an identification card, or make any statement with the intent to give an impression that they are connected in any way with the federal
government, a state government, or any political subdivision of a state government.
(f) A licensee, or officer, partner, qualified manager, or employee of a licensee shall not use any identification to indicate that they are licensed as a private investigator other than the official identification card issued by the bureau or the business card regularly used by the business. However, a licensee may issue an employer identification card.
(g) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not enter any private building or portion thereof, except premises commonly accessible to the public, without the consent of the owner or of the person in legal possession thereof.
(h) A licensee shall not permit an employee or agent in
their own name to advertise, engage clients, furnish reports or present bills to clients, or in any manner conduct business for which a license is required under this chapter. All business of the licensee shall be conducted in the name of and under the control of the licensee.
(i) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not knowingly and directly solicit employment from any person who has directly sustained bodily injury or from that person’s spouse or other family member to obtain authorization on behalf of the injured person as an investigator to investigate the accident or act that resulted in injury or death to that person or damage to the property of that person. This subdivision does not prohibit the soliciting of employment from that injured person’s attorney,
insurance company, self-insured administrator, insurance adjuster, employer, or any
other person having an indirect interest in the investigation of the injury. This subdivision does not apply to any business agent or attorney employed by a labor organization. A licensee, officer, director, partner, or qualified manager of a licensee shall not pay or compensate any of their employees or agents on the basis of a bonus, bounty, or quota system whereby a premium is placed on the number of employer or client rule violations or infractions purportedly discovered as a result of any investigation made by a licensee.
(j) A licensee shall not use a fictitious business name in connection with the official activities of the licensee’s business, except as provided by the bureau.
(k) This section shall become operative on January 1,
2024.
The fees prescribed by this chapter are as follows:
(a)The application and examination fee for an original license shall not exceed fifty dollars ($50).
(b)The application fee for an original branch office certificate shall not exceed thirty dollars ($30).
(c)The fee for an original license for a private investigator shall not exceed one hundred seventy-five dollars ($175).
(d)The renewal fee is as follows:
(1)For a license as a private investigator, the fee shall not exceed one hundred twenty-five dollars ($125).
(2)For a branch office certificate for a private investigator, the fee shall not exceed thirty dollars ($30).
(e)The delinquency fee is 50 percent of the renewal fee in effect on the date of expiration.
(f)A reinstatement fee is equal to the amount of the renewal fee plus the regular delinquency fee.
(g)The fee for reexamination of an applicant or the applicant’s qualified manager shall not exceed fifteen dollars ($15).
(h)The processing fee for the assignment of a license pursuant to Section 7530 shall not exceed one hundred twenty-five dollars ($125).
(i)The firearms permit fee shall be at least one hundred dollars
($100), but shall not exceed one hundred ten dollars ($110).
(j)The firearms permit renewal fee shall be at least eighty dollars ($80), but shall not exceed eighty-eight dollars ($88).
(k)The replacement fee for a lost or destroyed registration card, license, certificate, or permit authorized by this chapter shall be twenty-five dollars ($25). A request to replace a lost or destroyed registration card, license, certificate, or permit shall be made in the manner prescribed by the board.
(l)This section shall remain in effect only until July 1, 2024, and as of that date is repealed.
The fees prescribed by this chapter are as follows:
(a)The application and examination fee for an original license shall be at least three hundred forty dollars ($340) and may be increased to not more than three hundred seventy-four dollars ($374).
(b)The application fee for an original branch office certificate shall be at least ninety dollars ($90) and may be increased to not more than ninety-nine dollars ($99).
(c)The fee for an original license for a private investigator shall be at least three hundred eighty-five dollars ($385) and may be increased to not more than four hundred twenty-four dollars ($424).
(d)The renewal fee is as follows:
(1)For a license as a private investigator, the fee shall be at least two hundred sixty-five dollars ($265) and may be increased to not more than two hundred ninety-two dollars ($292).
(2)For a branch office certificate for a private investigator, the fee shall be at least sixty-five dollars ($65) and may be increased to not more than seventy-two dollars ($72).
(e)The delinquency fee is 50 percent of the renewal fee in effect on the date of expiration.
(f)A reinstatement fee is equal to the amount of the renewal fee plus the regular delinquency fee.
(g)The fee for reexamination of an
applicant or their qualified manager shall be at least sixty dollars ($60) and may be increased to not more than sixty-six dollars ($66).
(h)The processing fee for the assignment of a license pursuant to Section 7530 shall be at least four hundred dollars ($400) and may be increased to not more than four hundred forty dollars ($440).
(i)The firearms permit fee shall be at least one hundred dollars ($100), but shall not exceed one hundred ten dollars ($110).
(j)The firearms permit renewal fee shall be at least eighty dollars ($80), but shall not exceed eighty-eight dollars ($88).
(k)The replacement fee for a lost or destroyed registration card, license, certificate, or permit authorized by this chapter shall be twenty-five dollars ($25). A request to
replace a lost or destroyed registration card, license, certificate, or permit shall be made in the manner prescribed by the bureau.
(l)The fee for a Certificate of Licensure, as specified in Section 7528, shall be twenty-five dollars ($25).
(m)The fee for an endorsed verification of licensure, certification, or permit shall be twenty-five dollars ($25). The verification document shall include the history and current status of the license, certificate, or permit number, the date of the endorsement, an embossed seal, and the signature of the chief.
(n)The reinstatement fee following a suspension pursuant to subdivision (e) of Section 7520.3 shall be no more than 50 percent of the renewal fee.
(o)This section shall become operative on July 1,
2024.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
