ARIZONA STATE SENATE
Phoenix, Arizona
security guards;
private investigators
Purpose
Makes various
changes to statutes on private investigators and security guards to facilitate,
clarify and strengthen the regulatory authority, compliance and enforcement
process and procedures of the Department of Public Safety. Contains a
Proposition 108 clause.
Background
The Department of Public Safety (Department) 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.
Last legislative session, the Private Investigator and Security Guard Study Committee was established to examine issues affecting security guards and private investigators, including standards for hiring and training, uniform and insignia, fees for licensure and registration, regulation of in-house security and the problems and benefits of provisional certificates (Laws 2000, Chapter 49). During the 2001 interim, the study committee recommended various changes to statutes relating to private investigators and security guards in order to bring uniformity among the two industries and strengthen regulations governing the two industries.
Based on the recommendations of the study committee, S.B. 1176 expands the qualifications required of applicants for agency licenses and registration certificates, reduces the license issue period from three years to two years, expands the grounds for disciplinary action and broadens the regulatory authority of the Department.
According to the fiscal note prepared by the Joint Legislative Budget Committee, this legislation will have a general fund savings of $51,000 in each of FY 2003 and FY 2004 by eliminating the need for a general fund subsidy for the Private Investigator and Security Guard Licensing Unit. S.B. 1176 directs revenue from license and permit fees be deposited in the Department of Public Safety Licensing Fund to cover expenses of the unit. Fees are now deposited into the state general fund and the program is funded from the general fund. Under S.B. 1176, the program would become self-funded and any amount greater than $500,000 at the end of each fiscal year would revert to the state general fund.
Private Investigators
1. Adds fingerprint processing fees to required private investigator application fees.
2. Expands the items required to accompany an application for an agency license to include photographs and fingerprints of the applicant.
3. Requires the Department to keep a record of registration certificates.
4. Authorizes political subdivisions to regulate private investigators, but prohibits them from imposing an additional fee.
5. Specifies the form of the identification card.
6. Clarifies and expands qualifications required of an applicant for an agency license, as follows:
a) removes the legal residency status requirement.
b) removes the requirement that an applicant be of good moral character.
c) prohibits applicants who are currently under indictment for a felony.
d) prohibits applicants who have been convicted of a specified misdemeanor act within five years immediately preceding the application.
e) prohibits applicants who are on community supervision, work furlough, home arrest or release on any other basis.
f) prohibits applicants who are serving probation on a conviction for personal violence or domestic violence or a similar offense.
g) prohibits applicants who are suffering from mental illness, defect or disability.
h) prohibits applicants who have been adjudicated mentally incompetent.
i) prohibits applicants who have been convicted of acting as a private investigator without a license.
7. Clarifies that the notification to the director of any change in the name or address of the licensee’s business must be in writing.
8. Provides that if an individual’s employment relationship with an agency 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.
9. Specifies that a branch office certificate authorizes a qualifying party to conduct the business of private investigation services at a site other than the principal place reflected on the agency license.
10. Establishes qualifications for applicants for an associate or employee registration certificate, as follows:
a) requires applicants to be at least 18 years of age.
b) requires applicants to be a U.S. citizen.
c) prohibits applicants who have been convicted of a felony or are currently under indictment for a felony.
d) prohibits applicants who have been convicted of a specified misdemeanor act within five years immediately preceding the application.
e) prohibits applicants who are on parole, community supervision, work furlough, home arrest or release on any other basis or have an outstanding arrest warrant against them.
f) prohibits applicants who are serving probation on a conviction for personal violence or domestic violence or a similar offense.
g) prohibits applicants who are suffering from mental illness, defect or disability.
h) prohibits applicants who have been adjudicated mentally incompetent.
i) prohibits applicants who have been convicted of acting as a private investigator without a license.
11. Expands the grounds for disciplinary action against a private investigator or the qualifying party or its associates, directors or managers, as follows:
a) falsifying any documents.
b) conviction of any misconduct involving weapons.
c) being placed on community supervision for any crime.
d) committing or knowingly permitting any employee to commit any violation of the private investigator regulations or rules.
e) conducting private investigator services on an expired license or registration.
12. Changes, from a class 1 misdemeanor to a class 6 felony, a violation of the private investigator statutes.
13. Clarifies that the impersonation of a private investigator is prohibited.
14. Requires the Department to send by certified mail, return receipt requested to the licensee or registrant a notice of a hearing regarding a violation that warrants disciplinary action.
15. Broadens grounds for refusal to issue an agency license to include:
a) failure to meet qualifications.
b) acting or attempting to act as a private investigator without a license.
c) previous denial of an agency license.
d) previous employment by an agency whose license was revoked.
16. Specifies grounds for denial of an applicant’s identification card to include:
a) failure to meet qualifications.
b) commission of an act that would be grounds for suspension or revocation of registration.
c) knowingly making a false statement on the application.
17. Specifies that all records are open to public inspection except for financial statement of licenses.
18. Prohibits the Department from issuing a registration certificate more than 90 days after expiration of the provisional certificate.
19. Prohibits the Department from renewing an agency license or registration certificate more than 90 days after expiration.
20. Prohibits a licensee or registrant from engaging in any regulated activity without a current agency license or registration certificate.
21. Allows the Department to renew a suspended license or registration.
22. Prohibits the Department from accepting an application for a license or registration from a person whose license or registration has been revoked until at least one year after the date of revocation.
23. Expands the required training for all security guards, as follows:
a) eight hours of pre-assignment training for all security guards.
b) eight hours of refresher training for all renewal applicants within 90 days prior to submitting the renewal application. Requires the Department to establish the required training curriculum.
c) eight hours of annual continuing firearms instruction for armed security guards.
24. Authorizes the Department to adopt rules regarding the type of uniform and insignia for a security guard or armed security guard.
25. Specifies that the security guard statutes do not apply to the following:
a) an officer or employee of the federal government, this state or a political subdivision of this state while performing official duties.
b) an individual who performs security related work at a commercial nuclear generating state subject to federal regulatory requirements.
c) an individual who performs security related work at a company subject to Department of Defense regulatory requirements.
Agency Licenses
26. Expands qualifications required of an applicant for an agency license, as follows:
a) removes the legal residency status requirement.
b) prohibits applicants who have been convicted of a felony or are currently under indictment for a felony.
c) prohibits applicants who have been convicted of a specified misdemeanor act within five years immediately preceding the application.
d) prohibits applicants who are on parole, community supervision, work furlough, home arrest or release on any other basis or have an outstanding arrest warrant against them.
e) prohibits applicants who are serving probation on a conviction for personal violence or domestic violence or a similar offense.
f) prohibits applicants who are suffering from mental illness, defect or disability.
g) prohibits applicants who have been adjudicated mentally incompetent.
h) prohibits applicants who have been convicted of acting as a security guard without a license.
27. Requires an applicant for an agency license to substantiate managerial work experience in detail and certified by the employer.
28. Requires the employer, on written request, to submit to the employee a written certification of prior work experience within 30 days. Allows an applicant to submit certification from third parties if the employer certification is unavailable.
29. Requires the employer who goes out of business to provide registered employees with a complete and accurate record of their work history.
30. Increases, from 15 days to 30 days, the time for an agency licensee to notify the Director of any change in the name or address of the licensee’s business.
31. Requires an applicant to complete the application within 90 days upon notification from the Department that the license is ready for issuance.
32. Prohibits a licensee from establishing a branch office of a licensed agency unless the Department has issued a branch office certificate. Specifies that a branch office certificate authorizes a qualifying party to conduct the business of security guard services at a site other than the principal place reflected on the agency license.
33. Provides that if an individual’s employment relationship with an agency 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.
34. Clarifies and expands qualifications required of an applicant for an associate or security guard registration certificate, as follows:
a) requires applicants to be at least 18 years of age.
b) removes the legal residency status requirement.
c) prohibits applicants who have been convicted of a felony or are currently under indictment for a felony.
d) prohibits applicants who have been convicted of a specified misdemeanor act within five years immediately preceding the application.
e) prohibits applicants who are on parole, community supervision, work furlough, home arrest or release on any other basis or have an outstanding arrest warrant against them.
f) prohibits applicants who are serving probation on a conviction for personal violence or domestic violence or a similar offense.
g) prohibits applicants who are suffering from mental illness, defect or disability.
h) prohibits applicants who have been adjudicated mentally incompetent.
i) prohibits applicants who have been convicted of acting as an associate security guard or armed security guard without a license.
35. Expands the items required to accompany an application for an employee registration certificate to include photographs of the applicant.
36. Decreases, from 180 days to 90 days, the validity of a provisional certificate.
37. Specifies that an armed security guard registration certificate’s expiration date must coincide with the expiration of the sponsoring agency license.
38. Requires an employee to obtain an armed security guard registration certificate and an identification card for each sponsoring agency licensee.
39. Allows the Department to deny the issuance of an identification card to an applicant for a security guard provisional certificate or registration certificate.
40. Specifies that final decisions of the Director with respect to refusal to issue or renew an agency license or refusal to issue a security guard provisional certificate or registration certificate are subject to judicial review.
41. Specifies that a person, except for a regularly commissioned peace officer, is prohibited from acting or attempting to act as a security guard without proper licensure. A violation constitutes a class 6 felony.
42. Expands the grounds for disciplinary action against a licensee or registrant or the qualifying party or its associates. (see 32-2636)
43. Grants authority to the Department to investigate complaints against a security guard. Requires the licensee to make records available to the Department in an investigation.
44. Broadens grounds for refusal to issue or renew an agency license to include:
a) denial of an application.
b) revocation of a license or registration certificate.
c) commission of any act while not licensed as a security guard that requires a license.
d) failure to provide adequate verification of required experience.
45. Reduces the license issue period for a private investigator and a security guard from three years to two years.
46. Authorizes the Department to carry out responsibilities regarding private investigators and security guards that are currently carried out by the Director.
47. Requires the Department to maintain all required records for at least five years.
48. Expands the private investigator and security guard hearing board to include an alternate member. Specifies the qualifications and length of term. Expands the duties of the board to include submittal of recommendations to the Director regarding denial of registrations.
49. Requires an applicant for an agency license for either a private investigation or security guard firm to have a qualifying party. Identifies the qualifying party. Requires the qualifying party to maintain workers’ compensation insurance if required.
50. Provides for a procedure to follow if an application for an agency license or registration for either a private investigator or security guard is incomplete. Authorizes the Department to request additional information from the applicant if necessary to make a decision on the application. Provides that if the applicant fails to respond within 45 days, the application and any certificates issued are suspended.
51. Allows the Department to deny an agency license for a private investigator or security guard if the applicant is unfit based on statutory violations.
Department of Public Safety
Licensing Fund
52. Eliminates the requirement that all fees collected relating to private investigator and security guard regulation by the Department be deposited into the state general fund.
53. Eliminates the existing licensure and renewal fee structure for private investigators and security guards.
54. Requires the Director to determine reasonable fees to cover the operational and equipment costs of regulating the private investigator and security guard industries.
55. Establishes the Department of Pubic Safety licensing fund consisting of all fees collected by the Department with respect to private investigators and security guards, to be administered by the Director.
56. Authorizes the Department to administer the fund as a continuing appropriation to the Director.
57. Stipulates any amount greater than $500,000 at the end of each fiscal year reverts to the general fund.
58. Changes heading titles, transfers and renumbers sections of statute.
59. Defines and redefines terms.
60. Makes numerous clarifying, technical and conforming changes.
61. Becomes effective upon signature of the Governor.
Amendments
Adopted by Committee
· Removes the exemption relating to proprietary security guards.
Senate Action
COM 2/6/02 DPA 4-1-1
February 25, 2002