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SB-559 Private Investigator Act: license: limited liability company.(2017-2018)

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Date Published: 04/24/2017 02:24 PM
SB559:v96#DOCUMENT

Amended  IN  Senate  April 24, 2017
Amended  IN  Senate  April 06, 2017
Amended  IN  Senate  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 559


Introduced by Senator Morrell

February 16, 2017


An act to amend Sections 7512.3, 7520.3, 7525.1, 7529, 7530, 7533.5, 7538, 7538.5, 7539, 7541, 7541.1, and 7570 of of, and to add Section 7533.2 to, the Business and Professions Code, relating to professions and vocations.


LEGISLATIVE COUNSEL'S DIGEST


SB 559, as amended, Morrell. Private Investigator Act: license: limited liability company.
Existing law, the Private Investigator Act, provides for the licensure and regulation of private investigators by the Bureau of Security and Investigative Services.
(1) Existing law, until January 1, 2018, authorizes the bureau to issue a private investigator license to a limited liability company.
Existing law, the California Revised Uniform Limited Liability Company Act, authorizes a limited liability company to have any lawful purpose, except as specified, and authorizes a domestic or foreign limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the provisions of that code authorize a limited liability company or foreign limited liability company to hold that license, certificate, or registration.
This bill, until January 1, 2021, would extend the authority for the bureau to issue a private investigator license to a limited liability company and make related conforming changes.
(2) Existing law requires an applicant, or his or her manager, for a license as a private investigator to have had at least three years’ experience in investigation work. Under existing law, a year’s experience is required to consist of not less than 2,000 hours of actual compensated work performed by each applicant preceding the filing of an application. Under existing law, an applicant who holds a law degree or who has completed a four-year course in police science, criminal justice, criminal law, or the equivalent is required to have had 2 years’ experience in investigation work.
This bill would revise and recast these provisions by requiring an applicant with a law degree or bachelor’s degree in police science, criminal justice, criminal law, or the equivalent to be credited with 2,000 hours of experience in investigation work. The bill would require an applicant with an associate degree in police science, criminal justice, criminal law, or the equivalent to be credited with 1,000 hours of experience in investigation work. The bill would prohibit the total amount of time credited to an applicant for these degrees from exceeding 2,000 hours of experience in investigation work.
(3) This bill would make various other conforming changes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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 669 of the Statutes of 2014, 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, 2021, and as of that date is repealed.

SEC. 2.

 Section 7512.3 of the Business and Professions Code, as added by Section 2 of Chapter 669 of the Statutes of 2014, 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, 2021.

SEC. 3.

 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 managing members or managers 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 managing members or managers 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 managing members or managers 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) A licensee organized as a limited liability company shall report a paid or pending claim against its liability insurance to the bureau. The bureau shall post a notice of a claim on the Department of Consumer Affairs BreEZe License Verification Internet Web page.

(g)

(h) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 4.

 Section 7525.1 of the Business and Professions Code, as amended by Section 11 of Chapter 800 of the Statutes of 2016, 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 his or her 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 managing member 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 managing member or manager and any other officer or member 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. The application shall also state the name and residence 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 member of the applicant and by the qualified manager thereof under penalty of perjury.
(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, 2021, and as of that date is repealed.

SEC. 5.

 Section 7525.1 of the Business and Professions Code, as amended by Section 6 of Chapter 635 of the Statutes of 2015, 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 his or her 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, 2021.

SEC. 6.

 Section 7529 of the Business and Professions Code, as amended by Section 6 of Chapter 669 of the Statutes of 2014, is amended to read:

7529.
 (a) Upon the issuance of a license, a pocket card of the size, design, and content as may be determined by the director shall be issued by the bureau to each licensee, if an individual, or if the licensee is a person other than an individual, to its managing member or manager and to each of its officers and partners. The pocket card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain the signature of the licensee, signature of the chief, and 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 manager or officer 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 a person to whom a card is issued terminates his or her position, office, or association with the licensee, the card shall be surrendered to the licensee and within five days thereafter shall be mailed or delivered by the licensee to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display his or her valid pocket card as provided by regulation.
(b) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 7.

 Section 7529 of the Business and Professions Code, as added by Section 7 of Chapter 669 of the Statutes of 2014, is amended to read:

7529.
 (a) Upon the issuance of a license, a pocket card of the size, design, and content as may be determined by the director shall be issued by the bureau to each licensee, if an individual, or if the licensee is a person other than an individual, to its manager and to each of its officers and partners. The pocket card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain the signature of the licensee, signature of the chief, and 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 manager or officer 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 a person to whom a card is issued terminates his or her position, office, or association with the licensee, the card shall be surrendered to the licensee and within five days thereafter shall be mailed or delivered by the licensee to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display his or her valid pocket card as provided by regulation.
(b) This section shall become operative on January 1, 2021.

SEC. 8.

 Section 7530 of the Business and Professions Code, as amended by Section 8 of Chapter 669 of the Statutes of 2014, is amended to read:

7530.
 (a) Except as provided in this section, a license issued under this chapter is not assignable.
(b) A licensee may apply to the chief for consent, and upon receipt of the consent and payment of the processing fee authorized by Section 7570, may assign a license to another business entity as long as the direct and indirect owners of the assignor own all of the assignee immediately after the assignment.
(c) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 9.

 Section 7530 of the Business and Professions Code, as added by Section 9 of Chapter 669 of the Statutes of 2014, is amended to read:

7530.
 (a) A license issued under this chapter is not assignable.
(b) This section shall become operative on January 1, 2021.

SEC. 10.

 Section 7533.2 is added to the Business and Professions Code, to read:

7533.2.
 At the time of an initial application for licensure or renewal, an applicant for an initial license or a licensee applying for renewal of the license shall notify the bureau if the applicant or licensee is a limited liability company or intends to organize as a limited liability company for the purposes of this chapter during the period of licensure. The bureau shall include this information on the Department of Consumer Affairs BreEZe License Verification Internet Web page.

SEC. 10.SEC. 11.

 Section 7533.5 of the Business and Professions Code, as amended by Section 12 of Chapter 800 of the Statutes of 2016, is amended to read:

7533.5.
 (a) A licensee shall notify the bureau within 30 days of any change in its corporate officers, or members required to be named pursuant to subdivision (h) or (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, managing 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, managing 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, 2021, and as of that date is repealed.

SEC. 11.SEC. 12.

 Section 7533.5 of the Business and Professions Code, as added by Section 13 of Chapter 800 of the Statutes of 2016, is amended to read:

7533.5.
 (a) A licensee shall notify the bureau within 30 days of any change in its corporate officers, or members 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, 2021.

SEC. 12.SEC. 13.

 Section 7538 of the Business and Professions Code, as amended by Section 10 of Chapter 669 of the Statutes of 2014, 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, has not, or, if the applicant is a person other than an individual, that its manager and each of its officers 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, managing 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 his or her application.
(b) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 13.SEC. 14.

 Section 7538 of the Business and Professions Code, as added by Section 11 of Chapter 669 of the Statutes of 2014, 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, has not, or, if the applicant is a person other than an individual, that its manager and each of its officers 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 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 his or her application.
(b) This section shall become operative on January 1, 2021.

SEC. 14.SEC. 15.

 Section 7538.5 of the Business and Professions Code, as amended by Section 12 of Chapter 669 of the Statutes of 2014, 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) A person who has had any license revoked, has a license currently under suspension, or failed to renew his or her license while under suspension.
(2) A person who, while acting as a member of a partnership, an officer or director of a corporation, an officer or person acting in a managerial capacity of a firm or association, or a managing member or manager of a limited liability company, had his or her license revoked, has a license currently under suspension, or failed to renew his or her license while under suspension.
(3) A person who, while acting as a member of the partnership, an officer or director of the corporation, or an officer or person acting in a managerial capacity of the firm or association, meets both of the following conditions:
(A) He or she was a member of any partnership, an officer or director of any corporation, an officer or person acting in a managerial capacity of any firm or association, or a managing member or manager 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 member, officer, director, or person acting in a managerial capacity in any corporation, firm, association, or limited liability company, he or she participated in any of the prohibited acts for which the license was revoked or suspended.
(b) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 15.SEC. 16.

 Section 7538.5 of the Business and Professions Code, as added by Section 13 of Chapter 669 of the Statutes of 2014, 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) A person who has had any license revoked, has a license currently under suspension, or failed to renew his or her license while under suspension.
(2) A person who, while acting as a member of a partnership, an officer or director of a corporation, or an officer or person acting in a managerial capacity of a firm or association, had his or her license revoked, has a license currently under suspension, or failed to renew his or her license while under suspension.
(3) A person who, while acting as a member of the partnership, an officer or director of the corporation, or an officer or person acting in a managerial capacity of the firm or association, meets both of the following conditions:
(A) He or she was a member of any partnership, an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license was revoked, is currently under suspension, or was not renewed while under suspension.
(B) He or she, while acting as a member, officer, director, or person acting in a managerial capacity in any corporation, firm, or association, participated in any of the prohibited acts for which the license was revoked or suspended.
(b) This section shall become operative on January 1, 2021.

SEC. 16.SEC. 17.

 Section 7539 of the Business and Professions Code, as amended by Section 14 of Chapter 669 of the Statutes of 2014, is amended to read:

7539.
 (a) Any licensee or officer, director, partner, managing member, or manager of a licensee may divulge to any law enforcement officer or district attorney, or his or her representative, any information he or she may acquire as to any criminal offense, but he or she shall not divulge to any other person, except as otherwise required by law, any information acquired by him or her except at the direction of the employer or client for whom the information was obtained.
(b) A licensee or officer, director, partner, manager, managing member or manager of a limited liability company, or employee of a licensee shall not knowingly make any false report to his or her employer or client for whom information was being obtained.
(c) A written report shall not be submitted to a client except by the licensee, qualifying manager, managing member or manager of a limited liability company, 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, managing member, 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, managing member or manager of a limited liability company, 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 he or she is 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, managing member or manager of a limited liability company, or employee of a licensee shall not use any identification to indicate that he or she is 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, managing member or manager of a limited liability company, 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 his or her 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, officer, director, partner, manager, managing member or manager of a limited liability company, 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, officer, director, partner, managing member, or manager of a licensee shall not pay or compensate any of his or her 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, 2021, and as of that date is repealed.

SEC. 17.SEC. 18.

 Section 7539 of the Business and Professions Code, as added by Section 15 of Chapter 669 of the Statutes of 2014, is amended to read:

7539.
 (a) Any licensee or officer, director, partner, or manager of a licensee may divulge to any law enforcement officer or district attorney, or his or her representative, any information he or she may acquire as to any criminal offense, but he or she shall not divulge to any other person, except as otherwise required by law, any information acquired by him or her except at the direction of the employer or client for whom the information was obtained.
(b) A licensee or officer, director, partner, manager, or employee of a licensee shall not knowingly make any false report to his or her employer or client for whom information was being obtained.
(c) A written report shall not be submitted to a client except by the licensee, qualifying 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, 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, 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 he or she is 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 he or she is 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, 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 his or her 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, officer, director, partner, 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, officer, director, partner, or manager of a licensee shall not pay or compensate any of his or her 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, 2021.

SEC. 18.SEC. 19.

 Section 7541 of the Business and Professions Code is amended to read:

7541.
 (a) Except as otherwise provided by this section, an applicant, or his or her manager, for a license as a private investigator shall have had at least three years’ experience in investigation work. One year’s experience shall consist of not less than 2,000 hours of actual compensated work performed by each applicant preceding the filing of an application.
(1) An applicant who holds a law degree or bachelor’s degree in police science, criminal justice, criminal law, or the equivalent thereof from an accredited college shall be credited with 2,000 hours of experience in investigation work.
(2) An applicant who holds an associate degree in police science, criminal justice, criminal law, or the equivalent thereof from an accredited college shall be credited with 1,000 hours of experience in investigation work.
(3) The total amount of time credited to an applicant for degrees described in this subdivision shall not exceed 2,000 hours of experience in investigation work.
(b) An applicant shall substantiate the claimed years of qualifying experience and the exact details as to the character and nature thereof by written certifications from the employer or qualified manager, subject to independent verification by the director as he or she may determine.
(1) Notwithstanding any other law, only an employer, qualified manager, or his or her designated agent may certify experience for purposes of this section.
(2) For purposes of this section, the term “employer” shall mean only those persons, corporations, partnerships, proprietorships, or other associations which, in the employ of the designated individual, regularly and routinely withheld income taxes and other payroll deductions for direct forwarding to governmental taxing authorities.
(3) For the purposes of this section, the term “qualified manager” shall mean only a manager who has qualified pursuant to Section 7536, who has directly overseen the work and experience of the applicant, and is under an employment or contractual arrangement to provide primary supervision of the applicant.
(c) An employer who is a licensee or qualified manager shall respond in writing within 30 days to an applicant’s written request for certifications of the applicant’s work experience as an employee and either provide the certifications or the reasons for denial. If the applicant notifies the director in writing, under penalty of perjury, that the applicant is unable to obtain the required written response from a licensee or qualified manager, or provides the licensee’s or qualified manager’s written denial and states, under penalty of perjury, that the licensee’s or qualified manager’s reasons for denial are invalid or insufficient and the director concurs, the director may require the licensee or qualified manager to provide the bureau with all relevant employment records maintained pursuant to Section 7531.5 regarding the applicant for evaluation in substantiating the applicant’s employment experience.

SEC. 19.SEC. 20.

 Section 7541.1 of the Business and Professions Code is amended to read:

7541.1.
 (a) Notwithstanding any other law, experience for purposes of taking the examination for licensure as a private investigator shall be limited to those activities actually performed in connection with investigations, as defined in Section 7521, and only if those activities are performed by persons who are employed or managed in the following capacities:
(1) Sworn law enforcement officers possessing powers of arrest and employed by agencies in the federal, state, or local government.
(2) Military police of the armed forces of the United States or the National Guard.
(3) An insurance adjuster or their employees subject to Chapter 1 (commencing with Section 14000) of Division 5 of the Insurance Code.
(4) Persons employed by a private investigator who are duly licensed in accordance with this chapter, or managed by a qualified manager in accordance with Section 7536.
(5) Persons employed by repossessors duly licensed in accordance with Chapter 11 (commencing with Section 7500), only to the extent that those persons are routinely and regularly engaged in the location of debtors or the location of personal property utilizing methods commonly known as “skip tracing.” For purposes of this section, only that experience acquired in that skip tracing shall be credited toward qualification to take the examination.
(6) Persons duly trained and certified as an arson investigator and employed by a public agency engaged in fire suppression.
(7) Persons trained as investigators and employed by a public defender to conduct investigations.
(8) (A) Persons trained as investigative reporters and employed by a media source, as defined in Section 1070 of the Evidence Code, whose investigative journalism experience is comprised of conducting primary investigations and producing investigative projects.
(B) For purposes of this paragraph “primary investigation” means original and in-depth research and analysis involving multiple sources, including, but not limited to, public records, databases, archives, published and unpublished documents, witnesses, informers, whistleblowers, public officials, and experts, to produce investigative projects.
(b) The following activities shall not be deemed to constitute acts of investigation for purposes of experience toward licensure:
(1) The serving of legal process or other documents.
(2) Activities relating to the search for heirs or similar searches which involve only a search of public records or other reference sources in the public domain.
(3) The transportation or custodial attendance of persons in the physical custody of a law enforcement agency.
(4) The provision of bailiff or other security services to a court of law.
(5) The collection or attempted collection of debts by telephone or written solicitation after the debtor has been located.
(6) The repossession or attempted repossession of personal property after that property has been located and identified.
(c) Where the activities of employment of an applicant include those which qualify as bona fide experience as stated in this section as well as those which do not qualify, the director may, by delegation to the bureau, determine and apportion that percentage of experience for which any applicant is entitled to credit.

SEC. 20.SEC. 21.

 Section 7570 of the Business and Professions Code, as amended by Section 17 of Chapter 800 of the Statutes of 2016, is amended to read:

7570.
 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 his or her 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) This section shall remain in effect only until January 1, 2021, and as of that date is repealed.

SEC. 21.SEC. 22.

 Section 7570 of the Business and Professions Code, as amended by Section 18 of Chapter 800 of the Statutes of 2016, is amended to read:

7570.
 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 his or her manager shall not exceed fifteen dollars ($15).
(h) This section shall become operative on January 1, 2021.