security guards; private
investigators
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Committee on Commerce and Economic Development |
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Caucus and COW |
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Third Read |
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As Passed the House |
HB 2540 is the result of the Private Investigator and Security Guard Study Committee. The bill expands regulation for the industry on a statewide basis by encompassing proprietary security guards. The bill makes further changes to the law by conforming qualifications for private investigators and security guards throughout the regulatory statutes, including licensing/certification, disciplinary actions.
History
The Arizona Department of Public Safety
(DPS) regulates private investigators and security guards by issuing licenses,
keeping records of licenses, investigating complaints, and maintaining records
relating to bonding and insurance policies.
The five-member Private
Investigator and Security Guard Hearing Board conducts investigations and
hearings relating to disciplinary actions or denial of licenses of private
investigators and security guards. Two
years ago, the Private Investigator
Hearing Board was expanded to include investigations and hearings relating
to security guards. The law modified
the qualifications for obtaining an agency license from one year to three
years' full-time experience as manager of a security guard agency/law
enforcement/military. There was also a
change in the qualifications for a security guard registration certificate (no
felonies, mental illness or adjudication of mentally incompetent).
A separate license was
established for armed security guards, which requires an applicant to meet
several additional criteria, including:
ü Cannot
be a prohibited possessor (been found to constitute a danger to self or to
others; must not have been convicted of a felony/adjudicated delinquent and
whose civil right to possess or carry a gun or firearm has not been restored).
ü Cannot
have received a dishonorable discharge from U.S. armed forces.
ü Cannot
have a domestic violence conviction.
Laws 2001, Chapter 49,
created the Private Investigator and Security Guard Study Committee, increased
the amount of firearms training for security guards from eight hours to 16
hours, required DPS to adopt rules for a firearms training curriculum, and required
a security guard to notify the security guard’s employer and DPS within 48
hours of being arrested. The employer
is also required to notify DPS within 24 hours of learning of the arrest.
HB 2540 addresses the
additional changes to legislation that regulate this industry.
· Strikes references to the director of DPS and changes them to Department.
· Repeals the requirement that all fees collected by the licensing bureau be deposited in the General Fund.
· Creates an alternate member position on the Private Investigator & Security Guard Hearing Board. The alternate member serves a five-year term.
· Authorizes the Licensing Bureau to charge and collect reasonable fees to cover the operational and equipment costs of regulating private investigators and security guards.
· Establishes the DPS licensing fund to be administered by the Director. Provides that any amount greater than $500,000 at the end of the fiscal year reverts to the General Fund.
· Authorizes political subdivisions to regulate private investigators and security guards but prohibits them from imposing an additional fee.
· Prohibits impersonation of a private investigator or security guard. This is a Class 6 felony (one year incarceration/up to $150,000 fine).
· Adds a provision for private investigators and security guards about what procedure will be followed if an application for agency license is incomplete. Authorizes the Licensing Bureau to request additional information from a qualifying party if necessary to make a decision on the application. Provides that if the qualifying party fails to respond within 45 days, the application and certificate issued are suspended.
· Adds the requirement that an applicant for an agency license for either a private investigation or security guard firm have a qualifying party. Defines qualifying party.
· Reduces the license issue period for private investigators and security guards from three to two years.
· Makes numerous clarifying, technical and conforming changes.
Private Investigators
· Defines agency license and registration certificate. Specifies the meaning of adequate records.
· Adds fingerprint processing fees to required application fees.
Agency License
· Adds qualifications required of an applicant for an agency license, including:
1. Authorization to work in the U.S.
2. Prohibition on applicants who are on community supervision.
3. Prohibition on applicants who have a mental illness.
4. Prohibition on applicants who have been adjudicated mentally incompetent.
5. Includes authorization for the Licensing Bureau to deny an application if the applicant is unfit based on statutory violations.
· Adds items required to accompany an application for an agency license, including:
1. Photos of the applicant of a number and type prescribed by the Licensing Bureau.
2. One set of fingerprints.
· Provides that if an individual’s employment relationship with an agency licensee is terminated, the licensee must notify the director within five business days even if the individual fails to return the identification card to the licensee.
· Specifies that a branch office certificate authorizes a qualifying party to conduct the business of private investigations at a site other than the principal place of business reflected on the agency license.
Registration Certificate
· Establishes qualifications for applicants for associate or employee registration certificates:
1. Must be at least 18 years old.
2. Must be a U.S. citizen or legal resident authorized to work.
3. Prohibits applicants convicted of a felony
4. Prohibits applicants convicted of a misdemeanor if the conviction was within five years immediately preceding the application.
5. Prohibits applicants who are on probation, parole, community supervision or who have an outstanding warrant.
6. Prohibits applicants who have a current mental illness.
7. Prohibits applicants who have been adjudicated mentally incompetent.
· Adds items required to accompany an application for registration certificate, including:
1. Photos of the applicant of a number and type prescribed by the Licensing Bureau.
2. One set of fingerprints.
Private Investigator
Discipline
· Modifies grounds for disciplinary action for a person operating under the regulation of the Licensing Bureau as follows:
1. Prohibits falsifying any documents (retains prohibition on falsifying fingerprints or photos).
2. Narrows grounds of conviction of any act involving illegally using, carrying or possessing a dangerous weapon by specifying the grounds only include a conviction pursuant to A.R.S. §13-3101 (misconduct involving weapons).
3. Adds community supervision for conviction of any crime as a prohibited status.
4. Prohibits committing or permitting an employee to commit any violation of the private investigator regulations.
5. Adds failing to comply with several particular sections of the private investigator regulatory statutes.
· Changes a violation of the private investigator statutes from a Class 1 misdemeanor (up to 6 months jail/up to $2,500 fine) to a Class 6 felony (one year incarceration/$150,000 fine).
· Broadens grounds for refusal to issue agency license to include failure to meet statutory qualifications as specified, acting as a private investigator without a license, past denial of an agency license and past employment by an agency whose license was revoked.
· Specifies grounds for denial of applicant’s identification card to include failure to meet statutory qualifications as specified, commission of an act that is grounds for suspension/revocation or knowingly making a false statement on the application.
· Specifies form of identification card.
Security Guards
· Defines advertising, agency license, conviction, emergency action, identification card, proprietary company, qualifying party, registrant and unprofessional conduct. Redefines registration certificate.
· Specifies that all records kept pursuant to this section are public (except the financial statements of licensees) and must be maintained at least five years.
· Exempts officers and employees of the federal government, the state or a political subdivision from regulation.
· Prohibits the Licensing Bureau from issuing a registration certificate more than 90 days after expiration of the provisional certificate. The Bureau is also prohibited from renewing an agency license or registration more than 90 days after expiration. No person or agency may engage in regulated activity without a current registration certificate, agency license or registration.
· Authorizes the Licensing Bureau to renew a suspended agency license or registration certificate.
· Prohibits the Licensing Bureau from accepting an application for a license or registration certificate from a person whose license or registration certificate was revoked for at least one year from the date of revocation.
· Repeals the section of law that prohibits a person from acting as a security guard without proper licensure (a new section provides this same prohibition with a criminal penalty).
· Authorizes the Licensing Bureau to adopt rules regarding the type of uniform and insignia for a security guard or armed security guard.
Agency License
· Prohibits applicants convicted of a felony or misdemeanor if the conviction was within five years immediately preceding the application.
· Requires an applicant for an agency license to substantiate managerial work experience claimed as part of the minimum three years qualifying experience by providing details of the work and a certification by the employer. Requires the employer to submit the certification to the applicant upon written request within 30 calendar days. Requires an employer who goes out of business to provide its employees with a complete and accurate record of their work history. Authorizes an applicant to submit certification from third parties if the employer certification is unavailable. The burden of proof is on the applicant.
· Includes authorization for the Licensing Bureau to deny an application for agency license if the applicant is unfit based on statutory violations.
· Adds provision requiring an applicant to complete the application within 90 calendar days upon notification from the Licensing Bureau that the license is ready for issuance (conforming with language of private investigator statutes).
· Increases time for an agency licensee to notify the department of an address change from 15 to 30 calendar days (conforms with 30 days allowed for private investigator agency licensee address change notification).
· Adds provision authorizing a branch office for licensees after issuance of a branch office certificate from the Licensing Bureau. Specifies that a branch office certificate authorizes a qualifying party to conduct the business of security guard at a site other than the principal place of business reflected on the agency license.
Registration and Provisional
Certificates
· Requires photographs to be included with the application for a registration certificate.
· Changes validity of provisional certificate from 180 to 90 days.
· Specifies that an armed security guard registration certificate’s expiration date will coincide with the expiration of the sponsoring agency license. Further requires that an employee must obtain an armed security guard registration certificate for each sponsoring agency licensee.
· Requires eight hours of pre-assignment training for all security guards employed by the agency licensee.
· Requires renewal applicants to complete eight hours of training within 90 days prior to submitting the renewal application.
· Requires the Licensing Bureau to establish a training curriculum for security guards.
· Requires sixteen hours initial firearms training and eight hours annual training for armed security guards.
Security Guard Discipline
· Broadens grounds for disciplinary action for a person operating under the regulation of the Licensing Bureau.
· Grants broad authority to the Licensing Bureau to investigate a complaint against a security guard.
· Broadens grounds for refusal to issue agency license to include denial of an application, revocation of a license or registration certificate, committing any act while not licensed as a security guard that requires a registration certificate or license and failure to provide adequate verification of required experience.