HB 455-FN – AS INTRODUCED
2005 SESSION
08/10
HOUSE BILL 455-FN
AN ACT relative to establishing a board of private investigation and security services.
SPONSORS: Rep. Dumaine, Rock 3; Rep. Ulery, Hills 27
COMMITTEE: Executive Departments and Administration
This bill establishes a board of private investigation and security services.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05-0260
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Five
AN ACT relative to establishing a board of private investigation and security services.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Private Detectives; Hearings. Amend RSA 21-P:13, II to read as follows:
II. The bureau of hearings shall be responsible for holding all hearings on licenses, permits, and registrations issued by any division of the department pursuant to title XXI[, RSA 106-F,] and RSA 158. The bureau of hearings shall have authority to take disciplinary action in the name of such division against any holder of such license, permit or registration in accordance with law. Unless otherwise provided by law, all rehearings and appeals shall be held in accordance with RSA 541.
2 Name Change From Detective to Investigation. Amend the chapter heading of RSA 106-F to read as follows:
[DETECTIVE] INVESTIGATION AGENCIES AND SECURITY SERVICES
3 Name Change. Amend RSA 106-F:1, I to read as follows:
I. Provide reasonable supervision and control of private [detective] investigation agencies and their employees, security guard services and their employees, and individuals licensed as private [detectives] investigators and security guards doing business in this state.
4 New Sections; Board Established. Amend RSA 106-F by inserting after section 1 the following new sections:
106-F:1-a Board of Private Investigation Agencies and Security Services.
I. There shall be a board of private investigation agencies and security services. The board shall consist of 7 members appointed by the governor: 2 shall be providers of private investigation services who are members of The New Hampshire League of Investigators, Inc. and shall have been licensed and actively engaged in the practice of private investigation for at least 7 years prior to appointment; 2 shall be providers of private security services and shall have been licensed and actively engaged in the practice of private security services for at least 7 years prior to appointment; one shall be a public member who has no financial interest in either service other than as a consumer or potential consumer; one shall be a member of the New Hampshire Bar Association; and the remaining member shall be a provider of private investigative services or a provider of private security services, or a provider of both types of services.
II. The board members shall not serve more than 2 consecutive 3-year terms.
III. The board shall be responsible for licensing and regulation of private investigation agencies and security services under this chapter.
106-F:1-b Organization and Meetings. The board shall meet monthly, and special meetings may be held at such times as the business of the board may require. Notice of all meetings shall be given in such manner as the rules of the board may provide. The board shall annually elect a chairperson and a vice-chairperson from among its members. A quorum of the board shall consist of not less than 4 members, at least one of whom shall be a public member.
5 Exclusions. Amend RSA 106-F:2, I to read as follows:
I. Insurance adjusters licensed as such, who are engaged solely in the business of insurance adjusting.
6 Name Change. Amend RSA 106-F:2-a to read as follows:
106-F:2-a Prohibition. No person who is a sworn law enforcement officer employed by the state of New Hampshire or any of its political subdivisions shall be issued or hold a private [detective’s] investigator’s license under this chapter.
7 Rulemaking. Amend RSA 106-F:3 to read as follows:
106-F:3 Rulemaking; Enforcement.
I. The [commissioner of safety] board shall adopt rules, pursuant to RSA 541-A, relative to:
(a) Form of licenses and applications therefor;
(b) Examination procedures for license applications;
(c) Requisite standards of integrity and reputation for honesty;
(d) Use of fees for administration and enforcement of this chapter; and
(e) Revocation of licenses.
II. The [commissioner of safety] board shall have the authority to enforce the provisions of this chapter[, which authority shall not be restricted by RSA 106-B:15].
8 Definitions; Name Change and Expanded Definition. RSA 106-F:4 is repealed and reenacted to read as follows:
106-F:4 Definitions. In this chapter:
I. “Applicant” means any person who makes application to engage in any activity regulated under this chapter.
II. “Board” means the board of private investigation agencies and security services established in RSA 106-F:1-a.
III. “Employee” means an individual employed by a private investigation agency or an individual employed by a security guard service performing the duties of a private investigator or a security guard for the said private investigation agency or security guard service.
IV. “Individual” means an individual licensed as a private investigator or security guard who is not an employee and who has no employees.
V. “License holder” means an employee of a licensee.
VI. “Licensee” means a licensed private investigation agency or security guard service.
VII. “Private investigation agency” means the business of collecting for a fee, hire or reward information on the identity, conduct, movements, whereabouts, affiliations, associations, transactions, reputation or character of any person, or otherwise doing investigative work for a private rather than a public interest, either in the field or by computer research.
VIII. “Private investigator” means a person engaged in conducting investigations involving, but not limited to:
(a) Unsolved crimes.
(b) Insurance.
(c) Clandestine surveillance.
(d) Missing persons.
(e) Lost, concealed, or stolen property.
(f) Escaped felons or wanted persons subject to reward for capture.
(g) Polygraphs.
(h) Accident reconstruction.
IX. “Security guard service” means any business entity, except as provided in RSA 106-F:2, that furnishes or employs persons for the protection of individuals or their property from injury or theft and includes, but is not limited to, services providing for the safe transport of money or valuable documents and security patrols of homes, businesses or industrial plants.
X. “Unprofessional conduct” means:
(a) Failing to make available, upon request of a client, copies of documents that have been prepared for the client.
(b) General unfitness to practice the occupation.
(c) Employing any person who is not a license holder, or who is employed by any other licensee.
(d) Disclosing confidential information about a client or a client’s case, except:
(1) With the client’s permission.
(2) In response to a subpoena or court order.
(3) When necessary to collect a fee from the client.
(4) To prevent a criminal act.
(e) Knowingly accepting a client that would result in a conflict of interest.
(f) Providing false or misleading reports to a client, or omitting material facts from reports to a client.
9 Name Change. Amend RSA 106-F:5, I–II to read as follows:
I. No person shall engage in the business of a private [detective] investigation agency without obtaining a private [detective] investigation agency license from the [commissioner of safety] board and no person shall engage in the business of a security guard service without obtaining a security guard service license from the [commissioner of safety] board.
II. No person shall become an employee of a private [detective] investigation agency or a security guard agency without first obtaining a license to do so from the [commissioner of safety] board.
10 Confidentiality of License Applications; Employer Access. Amend the introductory paragraph of RSA 106-F:6 to read as follows:
All information provided by an applicant for a license under this chapter, other than the application date and the business address of the applicant, shall be kept confidential, unless such information is requested by a law enforcement agent engaged in the performance of his or her authorized duties, or by the licensee’s employer if also licensed under this chapter. An applicant for any license issued under this chapter shall include the following in his application:
11 Application; Name Change and Expanded Qualifications. Amend RSA 106-F:6, VI-VIII to read as follows:
VI. In the case of an applicant for an armed security guard or armed private [detective] investigator license, 2 sets of the applicant’s fingerprints taken at state police headquarters.
VII. Two photographs of the applicant taken at state police headquarters to be used for a photo license card issued by the commissioner of safety identifying the private [detective] investigator or security guard holder and by whom he or she is employed.
VIII. In addition to the requirements of paragraphs I-VII, applicants for private [detective] investigator licenses shall meet the following qualifications:
(a) Be a [resident] citizen of the United States.
(b) Be at least [18] 21 years of age.
(c) Have no record of [violent misdemeanors, or theft, fraud, or] felony convictions.
(d) Except for employees, possess:
(1) A minimum of [4] 5 years’ experience as a full-time law enforcement officer with a federal, state, county or municipal police department; [or]
(2) An associate of science degree or bachelor of science degree in criminal justice or fire service from an accredited college or university, and employment as a full-time investigator for a private [detective] investigation agency for at least 2 years; [or]
(3) A minimum of 4 years’ employment as a full-time investigator for a licensed private [detective] investigator or private [detective] investigation agency; [or]
(4) A minimum of 4 years’ experience as a full-time firefighter and certification by the International Association of Arson Investigators[.] ;
(5) A diploma from an accredited school of polygraph science and 4 years’ employment with a law enforcement agency; or
(6) A 2 or 4 year degree in criminal justice, a diploma from an accredited school of polygraph science, and 2 years’ employment with a law enforcement agency or licensed private investigation agency.
(e) Provide verifiable documentation of his or her qualifications at the time of application for a license.
12 Name Change. Amend RSA 106-F:7, I to read as follows:
I. Following review of the application, the applicant’s references, and investigation into the character, competency and integrity of the applicant, the [commissioner] board shall as soon as practicable issue a license or renewal license in the form prescribed by [him] the board to the applicant, or notify the applicant of denial of the application. Prior to approval of any armed [detective] investigator or security license issued under this chapter, the applicant shall submit to a fingerprint examination conducted by the Federal Bureau of Investigation, and the [department of safety] board shall be authorized to use the records of the Federal Bureau of Investigation in the screening of applicants. The applicant shall be responsible for the cost of any background investigation or criminal records check required under this section.
13 Name Change. Amend RSA 106-F:8 to read as follows:
106-F:8 License Application and Renewal; Fees.
I. The fee for a private [detective] investigation agency license or a security guard service license shall be $100 for an agency or service employing one person licensed under this chapter and $400 for an agency or service employing more than one such person. A person may hold one or more types of license at any given time, provided that a separate fee shall be paid for each license so held. Licenses shall be valid for [2] 4 years after the date of issue and shall be renewed every [2] 4 years thereafter, upon application and payment of the fee and submission of certified evidence that the surety bond remains in force. The application for renewal shall be submitted at least 15 days before the expiration of the previously granted license.
II. There shall be a nonrefundable fee of $5 for a license issued by the commissioner of safety to an employee as defined in RSA 106-F:4, [IV] III. Such fee shall be paid by the service or agency employing such employee and shall be paid before the license is issued. Such licenses shall be valid for 2 years after the date of issue and shall be renewed upon the completion and filing of an application for renewal which meets the requirements of this chapter submitted at least 15 days before the expiration of the previously granted license.
III. The [commissioner of safety] board shall set a reasonable fee, which [he] shall [adopt] be adopted by rule under RSA 541-A, to cover the expenses of the record check and investigation provided in RSA 106-F:7. The fee shall be charged to the applicant.
14 Name Change. Amend the introductory paragraph of RSA 106-F:8-a, I to read as follows:
I. All armed security guards and armed private [detectives] investigators shall meet minimum requirements in the proficiency in the use of firearms at least once per year. The requirements shall be as follows:
15 Firearms Proficiency; Authority Change. Amend RSA 106-F:8-a, II(e) to read as follows:
(e) Equivalent courses as determined by the commissioner of safety on an individual basis.
16 Surety Bonds and Insurance. Amend RSA 106-F:9 to read as follows:
106-F:9 Surety Bond.
I. The surety bond required by this [section] paragraph shall be so conditioned that the person bonded shall conduct his or her business in a lawful and honest manner without committing, compounding, aiding or abetting the commission of any criminal offense. Said bond shall be filed with and kept by the secretary of state and shall be subject to being sued upon by the attorney general of the state in the name of the state or sued upon by any person injured by a breach of any condition of such bond designed to protect such person. The principal sum of the bond shall be [$50,000, which shall be increased by $50, 000 for each additional type of license held by any person licensed under this chapter] determined by the board.
II. A person with multiple licenses issued under this chapter shall not be required to post more than one bond.
III. A surety bond shall not be required for licensees who provide proof of, and maintain, liability insurance in an amount equal to a surety bond required under paragraph I.
17 Employees Covered by Insurance Added. Amend RSA 106-F:11 to read as follows:
I. A person licensed under this chapter may employ agents or guards as he or she deems necessary. The licensee shall be responsible for the conduct of any such employees who shall be covered under the licensee’s surety bond, or insurance policy, as applicable.
II. The [commissioner of safety] board may disapprove the employment of any individual for just cause. Appeal from such decision shall be permitted as set forth in RSA 106-F:15.
18 Change of Corporate Name Included. Amend RSA 106-F:12 to read as follows:
I. A licensee shall notify the [commissioner of safety] board of the discharge or termination of any employee licensed under the provisions of this chapter and also any change in the membership of the firm or in the officers or directors of any association or corporation, or a change of the business name, or any change in the address of any office or the location of such business, within 10 business days after such change. Failure to give such notification shall be sufficient cause for suspension of the licensee’s license.
II. Any license holder who changes his place of employment from one agency to another shall within 10 business days notify the [commissioner of safety] board in person as to the identity of his new employer, and a new photo license shall be issued at no cost to license holder.
19 Restrictions; Authority Change. Amend RSA 106-F:13, II(d) to read as follows:
(d) Engage in advertising or the use of any seal or card which, in the opinion of the [commissioner] board, may tend to mislead the public.
20 Obligation to Report Certain Criminal Violations. RSA 106-F:13-a is repealed and reenacted to read as follows:
106-F:13-a Obligation to Report Certain Criminal Violations.
I. All felonies observed or discovered by persons licensed under this chapter shall be immediately reported to the state police or to the local police department in the municipality in which the felony occurred, except:
(a) When a licensee is under the direction and control of a law enforcement agency; or
(b) When a licensee is acting as an agent of an attorney, and such information is protected as work product.
II. All activity that is regulated by this chapter conducted by an unlicensed person observed or discovered by persons licensed under this chapter shall be immediately reported to the New Hampshire state police.
III. No licensee shall be held liable for reports made under this section.
IV. Reports made under this section shall not be public records and the identity of the licensee making the report shall remain confidential.
21 Suspension or Revocation. Amend RSA 106-F:14 to read as follows:
106-F:14 Suspension or Revocation; Cessation of Operation.
I. The [commissioner of safety] board may revoke or suspend a license issued under this chapter, after a hearing, if the licensee:
(a) Violates any provision of this chapter or any rules adopted under this chapter.
(b) Is convicted of fraud, deceit or misrepresentation.
(c) Makes a material misstatement in a license application or application for license renewal.
II. Unless a license revocation or suspension issued under this section is appealed, the licensee shall immediately cease operations for the time period ordered in the suspension notice, or permanently if his license has been revoked. The licensee shall immediately notify all its clients of such revocation or suspension. The licensee shall forward a copy of each such notification to the [commissioner] board, and keep a copy of each such notification in its business records.
III. Any license suspended or revoked under this section shall be surrendered to the [commissioner] board within 72 hours of receipt of the notice of suspension or revocation by the licensee, subject to the provisions of RSA 106-F:15.
22 New Paragraph; Suspension and Revocation. Amend RSA 106-F:14 by inserting after paragraph III the following new paragraph:
IV. Any suspension or revocation of a license under paragraph I shall be for the following periods:
(a) Two years for a first offense.
(b) Four years for a second offense.
(c) Lifetime for a third offense.
23 Appeal. Amend RSA 106-F:15 to read as follows:
106-F:15 Appeal. All decisions by the [commissioner of safety] board affecting licensing shall be mailed by certified mail to the applicant’s last known address. Appeals from such decisions to the superior court shall be permitted as a matter of right, if taken within 30 days after the date received. In any such appeal the right to trial by jury shall be obtained, if requested in advance. No appeal taken from a decision of the [commissioner of safety] board shall suspend the operation or effect of such decision unless so ordered by a justice of the superior court.
24 Exemptions. Amend RSA 106-F:15-a to read as follows:
106-F:15-a Exemptions. Nothing in this chapter shall require the licensure of persons employed by any federal or state agency or any city or town as an investigator. Nothing in this chapter shall be construed to require licensure [under this chapter for persons engaged in interviewing parties or witnesses in any legal matter] of an attorney in the practice of law, or a person engaged in genealogical research.
25 Repeal. The following are repealed:
I. RSA 21-P:7, I(d), relative to regulation of detective agencies and security services by the department of safety.
II. RSA 21-P:7, II(d), relative to regulation of detective agencies and security services by the department of safety.
III. RSA 106-F:2, V, relative to private investigation licensing exclusions.
26 Administrative Rules Transition. Administrative rules adopted by the department of safety prior to the effective date of this act, under RSA 106-F:3 shall remain in effect until amended, replaced, expired, or repealed through adoption of rules by the board of private investigation agencies and security services under RSA 106-F:3 as amended by this act.
27 Effective Date. This act shall take effect January 1, 2006.
LBAO
05-0260
1/27/05
HB 455-FN - FISCAL NOTE
AN ACT relative to establishing a board of private investigation and security services.
FISCAL IMPACT:
The Department of Safety indicates state revenue will decrease by $13,750 in FY 2006 and by $27,500 each year thereafter. There will be no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
The Department states this legislation establishes a board of private investigation and security services. This bill makes various name changes and moves the functional responsibilities from the Commissioner of Safety to the new board. The Department believes that the state expenditures related to licensing and monitoring private investigators will not change; however the licensing period is proposed to change from two years to four, which, on average, should reduce annual general fund revenue for licenses of around $55,000. Since the effective date of this bill is January 1, 2006, then FY 2006 revenue should decrease by $13,750 ($55,000 / 4) and other years should decrease by $27,500 ($55,000 / 2). There will be no fiscal impact on county or local governments.