Bill Text: CA AB1608 | 2013-2014 | Regular Session | Chaptered
Bill Title: Private investigators: limited liability companies.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2014-09-27 - Chaptered by Secretary of State - Chapter 669, Statutes of 2014. [AB1608 Detail]
Download: California-2013-AB1608-Chaptered.html
BILL NUMBER: AB 1608 CHAPTERED
BILL TEXT
CHAPTER 669
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY AUGUST 27, 2014
AMENDED IN SENATE AUGUST 20, 2014
AMENDED IN SENATE AUGUST 13, 2014
AMENDED IN SENATE JULY 1, 2014
AMENDED IN ASSEMBLY MARCH 18, 2014
INTRODUCED BY Assembly Member Olsen
(Coauthor: Senator Vidak)
FEBRUARY 5, 2014
An act to amend, repeal, and add Sections 7512.3, 7525.1, 7529,
7530,7538, 7538.5, 7539, and 7570 of, and to add and repeal Section
7520.3 of, the Business and Professions Code, relating to private
investigators.
LEGISLATIVE COUNSEL'S DIGEST
AB 1608, Olsen. Private investigators: 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 within the Department of Consumer
Affairs and makes a violation of the licensing requirements a crime.
Existing law defines a person, for purposes of the act, to include
any individual, firm, company, association, organization,
partnership, and corporation. Under existing law, a license is not
assignable.
Existing law, the California Revised Uniform Limited Liability
Company Act, governs the formation and operation of limited liability
companies. The act authorizes a limited liability company to engage
in any lawful business activity, except as specified, but prohibits
construing the act to permit a limited liability company to render
professional services, as defined. Existing law authorizes a 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 to hold that license,
certificate, or registration.
This bill, until January 1, 2018, would authorize the bureau to
issue a private investigator license to a limited liability company
and would make related conforming changes. The bill would require a
limited liability company applicant for a private investigator
license to provide specified information to the bureau, including the
true name and complete residence address of each of the managing
members and any other officers or members who will be active in the
business. The bill would require a limited liability company, as a
condition of licensure, to maintain liability insurance, as
specified, for damages arising out of claims based on acts, errors,
or omissions arising out of the private investigator services it
provides. The bill would require a Certificate of Liability
Insurance, as specified, to be submitted to the bureau, and would
require the insurer issuing the certificate to report specified
information to the bureau related to the policy. The bill would
authorize suspension, as provided, of the license of a licensee that
fails to maintain sufficient insurance, or fails to provide proof of
the required insurance upon request by the bureau, and would render
each member of the limited liability company personally liable, up to
$1,000,000 each, for damages resulting to 3rd parties in connection
with the company's performance during the period of suspension, as
specified. By expanding the scope of an existing crime, the bill
would create a state-mandated local program.
This bill would authorize a licensee to apply to the Chief of the
Bureau of Security and Investigative Services to assign a license, as
provided, to another business entity, upon receipt of consent by the
chief and the payment of a processing fee not to exceed $125.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7512.3 of the Business and Professions Code 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 2. Section 7512.3 is added to the Business and Professions
Code, 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, 2018.
SEC. 3. Section 7520.3 is added to the Business and Professions
Code, 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 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 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 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, the
date and amount of any payment of claims, and cancellation date if
applicable.
(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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 4. Section 7525.1 of the Business and Professions Code 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 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 and any other officer or member who
will be active in the business to be licensed. A copy of the most
recent 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 under penalty of perjury.
(j) Any other information, evidence, statements, or documents as
may be required by the director.
(k) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 5. Section 7525.1 is added to the Business and Professions
Code, 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) This section shall become operative on January 1, 2018.
SEC. 6. Section 7529 of the Business and Professions Code 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 7. Section 7529 is added to the Business and Professions
Code, 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, 2018.
SEC. 8. Section 7530 of the Business and Professions Code 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 9. Section 7530 is added to the Business and Professions
Code, to read:
7530. (a) A license issued under this chapter is not assignable.
(b) This section shall become operative on January 1, 2018.
SEC. 10. Section 7538 of the Business and Professions Code 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 11. Section 7538 is added to the Business and Professions
Code, 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, 2018.
SEC. 12. Section 7538.5 of the Business and Professions Code 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
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
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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 13. Section 7538.5 is added to the Business and Professions
Code, 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, 2018.
SEC. 14. Section 7539 of the Business and Professions Code 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 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 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 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 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 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 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 15. Section 7539 is added to the Business and Professions
Code, 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, 2018.
SEC. 16. Section 7570 of the Business and Professions Code 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 combination license as a private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), AC or DC prefix, the fee shall not exceed six hundred dollars
($600).
(3) For a branch office certificate for a private investigator,
the fee shall not exceed thirty dollars ($30), and for a combination
private investigator and private patrol operator under Chapter 11.5
(commencing with Section 7580), the fee shall not exceed forty
dollars ($40).
(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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 17. Section 7570 is added to the Business and Professions
Code, 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 combination license as a private investigator and
private patrol operator under Chapter 11.5 (commencing with Section
7580), AC or DC prefix, the fee shall not exceed six hundred dollars
($600).
(3) For a branch office certificate for a private investigator,
the fee shall not exceed thirty dollars ($30), and for a combination
private investigator and private patrol operator under Chapter 11.5
(commencing with Section 7580), the fee shall not exceed forty
dollars ($40).
(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, 2018.
SEC. 18. 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.
