Bill Text: CA AB1608 | 2013-2014 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
BILL NUMBER: AB 1608 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Olsen
FEBRUARY 5, 2014
An act to amend, repeal, and add Sections 7512.3, 7525.1, 7529,
7538, 7538.5, and 7539 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, as introduced, 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.
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, 2020, 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 of the license of a licensee that fails to
maintain sufficient insurance pursuant to these provisions and would
render each member of the limited liability company personally
liable, up to $1,000,000 dollars 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, this bill would create a state-mandated local
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
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,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, 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, 2020.
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) If a licensee fails to maintain sufficient insurance as
required by this section, the license is subject to suspension.
(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,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, 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 or
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, or 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, and 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 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, or 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, and 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
qualified manager, or by all of the partners or the qualified
manager.
(h) If the applicant for 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 articles
of organization issued 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.
(i)
(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,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, 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, or 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, and 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 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, or 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, and 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
qualified manager, or by all of the partners or the qualified
manager.
(h) If the applicant for 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, 2020.
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 may not exceed
the actual direct costs for system development, maintenance, and
processing necessary to provide this service, and may
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,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, 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, 2020.
SEC. 8. 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:
(a)
(1) Committed any act, which, if committed by a
licensee, would be a ground for the suspension or revocation of a
license under this chapter.
(b)
(2) Committed any act constituting dishonesty or fraud.
(c)
(3) Committed any act or crime constituting grounds for
denial of licensure under Section 480, including illegally using,
carrying, or possessing a deadly weapon.
(d)
(4) Been refused a license under this chapter or had a
license revoked.
(e)
(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.
(f)
(6) While unlicensed committed, or aided and abetted
the commission of, any act for which a license is required by this
chapter.
(g)
(7) Knowingly made any false statement in his or her
application.
(b) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 9. 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, which, 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, 2020.
SEC. 10. 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 person
of the following :
(a) Who
(1) A person who has had any license
revoked, or whose license is has a license
currently under suspension, or has failed to
renew his or her license while it was under
suspension.
(b) If any
(2) A person who, while acting as a member
of any a partnership, or any
an officer or director of any
a corporation, or any an
officer or person acting in a managerial capacity of any
a firm or association has had any
license issued to him or her revoked, or whose license is
association, or a managing member of a limited liability
company, had his or her license revoked, has a license currently
under suspension, or who has failed to renew
his or her license while it was under suspension.
(c) If any
(3) A person who, while acting as a member
of the partnership, or any an officer
or director of the corporation, or any an
officer or person acting in a managerial capacity of the firm
or association, was either a meets both of
the following conditions:
(A) He or she was a member of any
partnership, or an officer or director of any
corporation, or 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
has been was revoked, or whose license
is currently under suspension, or
failed to renew a license who was
not renewed while it was under suspension, and while
acting under suspension.
(B) While acting as such
a member, officer, director, or person acting
in a managerial capacity capacity in any
corporation, firm, association, or limited liability company, he or
she participated in any of the prohibited acts for which
any such the license was revoked or
suspended.
(b) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 11. 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, 2020.
SEC. 12. 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 he or she may be otherwise
required by law so to do, law,
any information acquired by him or her except at the direction of the
employer or client for whom the information was obtained.
(b) No 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) No 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) No 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) No 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) No 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) No 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) No 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 whatever 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) No 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 which 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.
No 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) No 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,
2020, and as of that date is repealed, unless a later
enacted statute, that is enacted
before January 1, 2020, deletes or extends that date.
SEC. 13. 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, 2020.
SEC. 14. 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.
