HB776 (2008) Detail

Establishing the licensure and regulation of private investigators.


HB 776-FN – AS INTRODUCED

2007 SESSION

07-0047

10/05

HOUSE BILL 776-FN

AN ACT establishing the licensure and regulation of private investigators.

SPONSORS: Rep. Ulery, Hills 27

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill establishing a board of private investigation for the licensure and regulation of private investigators.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-0047

10/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT establishing the licensure and regulation of private investigators.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Chapter; Private Investigators. Amend RSA by inserting after chapter 106-K the following new chapter:

CHAPTER 106-L

PRIVATE INVESTIGATORS

106-L:1 Purpose. The purpose of this chapter is to provide for the public safety by ensuring the honesty, character, and integrity of all persons licensed under this chapter and assuring the businesslike and ethical conduct of their operations, and providing a process for the suspension or revocation of licenses for unprofessional conduct.

106-L:2 Scope of Private Investigating. The activity of private investigation is defined as the collecting for a fee, hire, or reward information on the identity, conduct, movements, whereabouts, affiliations, associations, transactions, reputation, general background, or character of any person or business, or otherwise doing investigative work, in any legal manner whatsoever and by any legal means whatsoever, either directly through in-person contact or by electronic, computer, or database research.

106-L:3 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.

III. “Employee” means an individual employed by a private investigation agency performing the duties of a private investigator for the private investigation agency and who does not hold a license independent of the employer.

IV. “License holder” or “licensee” means an individual or agency licensed as a private investigator who is not an employee.

V. “Permissible purpose” means any investigative activity associated with an actual or proposed legal action.

VI. “Private investigation” means any person, real or otherwise, engaged in conducting investigations involving, but not limited to:

(a) 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.

(i) Honesty testing, so-called mystery shopping or covert employment.

(j) Service of process of any type.

(k) Pre-employment screening.

(l) Repossession investigation.

VII. “Registered employee” means an employee of a licensee who is not eligible to practice without supervision and who is registered with the board.

106-L:4 Penalty for Practice Without a License. Any person who shall practice or attempt to practice as a private investigator in this state without a license shall be guilty of a class A misdemeanor if a natural person or guilty of a felony if any other person.

106-L:5 Exclusions. The following are excluded from the provisions of this chapter:

I. Public or private insurance adjusters licensed as such and only when performing services as an adjuster.

II. Consumer reporting agencies and their employees who are engaged solely in the business of assembling or evaluating consumer credit information for a consumer reporting agency as defined in RSA 359-B:3, VI.

III. Police officers, except as provided in RSA 106-L:6, or fire investigators of the United States and the state, county, city, or town, while assigned to duty by and performing as officers of their respective law enforcement or fire service agencies.

IV. Towing or wrecking companies engaged in the transportation of repossessed vehicles, but no exclusion applies for those companies engaged in determining the whereabouts, activities or any person or secured property.

106-L:6 Prohibition. No person who is a sworn law enforcement officer employed by the state of New Hampshire, or any other state, the federal government or any political subdivisions shall be issued or hold a private investigator’s license under this chapter. This prohibition shall not extend to investigative employees of any agency of the state, the federal government, or any political subdivisions who are not sworn law enforcement officers.

106-L:7 Board Established. There is hereby established a board of private investigation which shall be responsible for the licensing, regulation, and discipline for private investigators in New Hampshire.

106-L:8 Membership.

I. The board shall consist of the following members who shall be appointed by the governor and approved by the council:

(a) Three members representing New Hampshire League of Investigators who are licensed in New Hampshire as investigators.

(b) Two members of the general public who shall be persons who have not, and never were, a member of the private investigation profession or the spouse of any such persons, and who do not have and never have had, a material financial interest in either the provision of private investigation services or an activity directly related to private investigation, including the representation of the board or profession for a fee at any time during the 5 years preceding appointment.

(c) One member of law enforcement.

(d) A licensed private investigator at large.

II. Each member of the board shall be reimbursed for actual and necessary expenses incurred in the discharge of official duties, including travel at the state employee mileage rate.

III. All members of the board shall be New Hampshire residents and citizens of the United States, or resident aliens authorized to work in the United States.

106-L:9 Terms of Appointment; Organization; Meetings.

I. The term of office shall be for 3 years. Any person appointed to fill a vacancy shall fill the unexpired term of office, a member shall continue to serve until a successor has been appointed and qualified. No person shall be appointed for more than 2 consecutive 3-year terms. Provided, however, that the initial appointments be made as follows:

(a) One member representing New Hampshire League of Investigators, one public member and the member representing law enforcement shall be appointed to a 3-year term.

(b) One member representing the New Hampshire League of Investigators and one public member shall be appointed to a 2-year term.

(c) One member representing New Hampshire League of Investigators and the at-large investigator shall be appointed for a one-year term.

II. Vacancies in board membership shall be filled in the same manner as the original appointment.

III. All initial appointments to the board shall be made within 6 months of the effective date of this chapter.

IV. The board shall annually elect a chairperson and vice chairperson from among its members.

V. The board shall meet no less than once each calendar quarter and more often on the call of the chair to conduct its business, or when the chairperson is requested by 4 or more members.

VI. A quorum of the board shall consist of not less than 4 members and at least one of whom shall be a public member.

106-L:10 Duties of the Board.

I. The board shall:

(a) Compile and maintain a list of those investigators statewide who are licensed and in good standing and make such list available to the general public online through the official Internet site for the state of New Hampshire, maintained by the state library or its designee.

(b) Establish the make-up of testing, set fees for the licensure, re-licensure, reinstatement, and renewal of licensure of investigators, and establish fines and penalties.

(c) Determine the number of hours of educational and continuing educational training required for licensure and renewal of licensure.

(d) Issue a separate license endorsement for armed private investigators.

(e) Issue a separate license endorsement for fugitive recovery or bail enforcement.

(f) Investigate and resolve complaints against licensed private investigators. The board may, upon the filing of a complaint against a licensed private investigator refer to the appropriate law enforcement agency for that matter for appropriate investigation and resolution. Such referral may be in lieu of, or in addition to the investigatory or disciplinary procedures of the board. The board may further informally resolve complaints by agreement.

(g) Adopt ethical standards and standards of practice for the licensed private investigator.

II. The board may:

(a) Commission the participation of appropriate secondary learning institutions, the community-technical college system, or other appropriate instate educational institutions to provide education, training, or continuing education for private investigators on a tuition basis and itself provide training or continuing education on a tuition basis.

(b) Disclose to and communicate with New Hampshire courts or adjudicatory boards, before which a licensed private investigator may appear, disciplinary action imposed upon the investigator on a “by name” basis. The content of any of the board’s files or records on licensed private investigators, applicants for licensure, and formerly licensed private investigators, and other activities of the board shall be public records, except as otherwise exempted by this chapter or other law.

(c) Charge reasonable fees to cover the cost of providing information, the processing of changes to licensee information or records, the provision of training programs, and the provision of course material.

(d) Administer oaths or affirmations, preserve testimony, and, on approval of the attorney general, issue subpoenas for witnesses and for documents relative to formal investigations or adjudicatory hearings held by the board.

106-L:11 Rulemaking Authority. The board shall adopt rules for licensed private investigators, pursuant to RSA 541-A, relative to the following:

I. The application process for licensure, renewal of licensure, and reinstatement of license.

II. The content of all application forms which may gather, in addition to other information, information that will assist in making an informed decision on whether or not to grant a license.

III. Fees for licensure, renewal, and reinstatement of license.

IV. The ethical standards and standards of practice for licensed private investigators.

V. Procedures for conducting investigations and hearings conducted by the board under this chapter.

VI. Procedures for reporting of illegal activities or misconduct by licensed private investigators in New Hampshire.

VII. The administration of oaths or affirmations, the preservation of testimony, and the issuance of subpoenas for witnesses and for documents, on the approval of the attorney general, relative to formal investigations or adjudicatory hearings held by the board.

VIII. Procedures for informal resolution or referral of complaints.

IX. Procedures for processing complaints and addressing disciplinary issues handled by the board under this chapter, including the issuance of appropriate penalties or sanctions.

X. Issuance of a fugitive recovery endorsement under RSA 106-L:16.

106-L:12 Administrative Attachment. The board shall be administratively attached to the department of safety.

106-L:13 Licensing. A license issued by the board shall be required to engage in the business of private investigation in New Hampshire. The minimum requirements for licensure shall be:

I. Not less than 4 years verified experience working as an employee for a licensed agency; or verified and documented equivalent experience in investigative work in law enforcement, insurance, military, federal or state agency, or similar endeavors.

II. Hold at least an associate degree for independent or agency licensure.

III. Complete and submit with fees an application form as devised by the board.

IV. Provide evidence of a bond made payable to the state of New Hampshire for no less than $50,000.

V. Successfully pass a comprehensive proctored examination approved by the board regarding federal laws and rules, New Hampshire laws and rules, ethical questions, business practice and reporting requirements.

VI. Be a citizen of the United States or legally authorized to work in New Hampshire.

VII. Be at least 21 years of age.

VIII. Have no record, in any jurisdiction, of misdemeanors for theft, fraud, perjury, assaults, drug offenses, or sex crimes, or of any felony convictions.

IX. Complete 20 hours per license period of continuing education on state laws, federal laws, field craft, interviewing, verbal de-escalation, database utilization, forensic techniques, firearms familiarity or usage, ethics, or business practice as allowed or approved by the board. Such training shall include no more than 10 hours of conferences and consortia. Such continuing education may include no more than 5 hours of verified computer-based training. Attendance at, or instruction at, legal, law, or insurance continuing education seminars may be accepted by the board for this requirement. Not less than 5 hours in a license period shall be devoted to ethics. The publication of an educational or instructive article in any nationally recognized journal or other publication may be substituted for up to 10 hours of continuing education, as approved by the board.

106-L:14 Armed Endorsements. In the event a license holder wishes to carry a concealed or exposed weapon as part of his or her work, a separate endorsement shall be required. This endorsement is in addition to a concealed carry permit issued by the city of residence of the licensee or by the state police in the case of a nonresident. Qualification for such endorsement shall include annually the successful completion of the following:

I. A tactical revolver course, with a minimum qualification score of 75 percent.

II. Shotgun, rifle, semiautomatic, or automatic weapons familiarization course required for all license holders whose employees are issued, or have as part of their equipment, such weapons.

III. No less than 4 hours of instruction, to include firearms techniques and safety, laws on the use of deadly force, and the moral and ethical use of force. Only qualified firearms instructors shall be used to certify the successful completion of the requirements.

(a) Instructors shall be qualified if they successfully complete one of the following courses:

(1) Council Firearms Instructor School.

(2) F.B.I. Firearms Instructor School.

(3) Smith and Wesson Firearms Instructor School.

(4) National Rifle Association Police Firearms Instructor Course.

(5) Equivalent courses as determined by the board on an individual basis.

(b) Instructors are required to present to the applicant that includes a statement under oath that they have completed and are currently qualified to instruct from one of the above schools or training courses in subparagraph (a).

(c) Instructors are required to present to the applicant a certificate of course completion with an expiration date of no less than 12 months from date of course completion. Said certificate may be combined with the statement required in subparagraph (b).

IV. Biannual submission of 2 photographs of the applicant taken at state police headquarters to be used for a photo identity card issued by the board identifying the private investigator, at the applicant’s expense.

V. Submission of one set of the applicant’s fingerprints, taken at state police headquarters, at the applicant’s expense. The director of state police shall maintain said fingerprints and is authorized to place said fingerprints in the automated fingerprint identification system.

106-L:15 Employee Registration. In the event a person wishes to work as an employee of the licensee, the person shall be registered with the board and issued an identity card approved by the board. This card shall prominently display the word “employee” thereon. Each applicant for such card shall sign a sworn statement that states that the registered person is not allowed to advertise on his or her own behalf, accept work in his or her own name, or engage in an activity on his or her own behalf. Each registration applicant shall:

I. Be a citizen of the United States or legally authorized to work in New Hampshire.

II. Be at least 21 years of age.

III. Have no record, in any jurisdiction, of misdemeanors for theft, fraud, perjury, assaults, drug offenses, or sex crimes, or of any felony convictions.

IV. Complete and submit with fees an application form as devised by the board.

V. Provide evidence of a bond made payable to the state of New Hampshire for no less than $50,000 with the bond to be paid by the registrant’s employer.

VI. Successfully pass a proctored employee test devised by the board which encompasses the basic areas of privacy, field craft, laws and professional conduct.

VII. Complete the minimum number of hours of continuing education on forensic techniques, firearms familiarity and usage, ethics and business practices as required by the board. Such training shall include no more than 10 hours of conferences and consortia. Such continuing education may include no more than 5 hours of verified computer-based training. Attendance at, or instruction at, legal, law, or insurance continuing education seminars are acceptable for this requirement. No less than 5 hours in a license period shall be devoted to ethics. The publication of an educational or instructive article in any nationally recognized journal or other publication may be substituted for up to 10 hours of continuing education, as approved by the board.

106-L:16 Fugitive Recovery and Bail Enforcement. In the event a license holder advertises or solicits business in the field of fugitive recovery or bail enforcement, the licensee holder shall obtain a separate endorsement issued by the board.

I. Nothing in this section shall prevent any licensee from engaging in the occasional or incidental capture of a fugitive for reward.

II. Compliance with RSA 597:7-b shall satisfy the requirement for this endorsement.

106-L:17 Confidentiality Privilege. A licensed private investigator shall be granted authority to secure for a demonstrable and permissible purpose in an ongoing or anticipated investigation otherwise restricted records, including criminal history, driver accident reports, driver record reports, motor vehicle registration data, driver license data, or vital statistics. Such requests may be subject to verification by the applicable agencies. Verification shall be limited to a statement that the purpose for the request is for a permissible purpose. Requests not verifiable shall result in criminal penalties of the applicable statutes and disciplinary proceedings for permanent revocation of license. Any data thus secured shall be held confidential.

106-L:18 Licensure Renewals. Licenses and employee registrations issued by the board shall be valid for 2 years from the date of issuance and shall expire 2 years from the date of issuance, unless renewed or reissued pursuant to rules adopted by, and upon payment of fees established in, the rules of the board.

I. Sixty days before the day of expiration the board shall mail a letter by pre-paid first class mail a letter informing the license holder of the expiration and a notice of license renewal.

II. Each person registered as an employee or licensed by the board shall notify the board promptly of any change of his or her business or residential address which may occur during the period between biennial registration or licensure.

III. Any person registered as an employee or licensed by the board who wishes to renew his or her license or registration shall, on or before the expiration date, submit an application for renewal, pay the renewal fee, and submit evidence of completing the number of continuing education units required.

IV. Any person licensed or registered as an employee whose license has expired shall be prohibited from the practice of private investigation in New Hampshire until such time as a reinstatement application is granted by the board.

106-L:19 Renewal Exemption. The board may by rule waive the payment of the registration renewal fee and continuing education hours of any registered employee or license holder when such person is on active duty with any branch of the armed services or uniformed services of New Hampshire or of the United States, not to exceed 3 years or for the duration of a national emergency, whichever is greater.

106-L:20 Unprofessional Conduct. It shall be considered unprofessional conduct for a private investigator to do any of the following:

I. Hold oneself out to the public as qualified to provide investigative services when no such legal qualification exists, regardless of actual skill or ability. A person violating this paragraph shall be guilty of a misdemeanor if a natural person and a felony if any other person and shall be subject to prosecution under RSA 638-A. The board shall act upon any such case based upon a preponderance of evidence.

II. Hold themselves out to the pubic by way of any advertisement, web site, yellow pages listing, business card, or any other method as performing services regulated in this chapter without first obtaining a license from the board. The board shall act upon any such case based upon a preponderance of the evidence.

III. Reveal the nature of their work, assignment, parties involved, clients, or any other data associated with their actions except before a judicial body or adjudicatory body of competent jurisdiction. The work of the private investigator is considered confidential and, if assigned a task by an attorney, is work product of that attorney. If revealed to the board, the information shall not be subject to disclosure under RSA 91-A in order to protect the privacy of the parties and protect attorney/client privilege.

(a) Any person who demands, intimidates, or requires under penalty of official action such confidential information shall be guilty of a Class B misdemeanor in the first instance and a Class A misdemeanor in the second and subsequent instances.

(b) Any person or entity who reveals such information shall be guilty of a Class B misdemeanor for the first offense and a Class A misdemeanor for any subsequent offense.

106-L:21 Disciplinary Actions.

I. The board may undertake disciplinary proceedings:

(a) Upon its own initiative; or

(b) Upon the written, sworn, complaint of any person which charges that a person licensed by the board has committed conduct under paragraph III of this section and which sets out the specific grounds for such allegations.

(c) If after reviewing a complaint and holding a hearing under the rules of the board, action other than dismissal of the complaint is taken, the licensee shall be subject to the following penalties or sanctions:

(1) Revocation of license permanently.

(2) Revocation of license for up to 5 years.

(3) Suspension of license until completion of mandatory training in an area determined by the board.

(4) Requiring the licensee to submit to the care, counseling or treatment of a physician, counseling service, health care facility, professional assistance, or any comparable person or facility, for treatment, including, but not limited to, alcohol and drug abuse counseling, anger management counseling, or other addiction treatment.

(5) Mandatory purchasing of error and omissions insurance as a condition of continued licensure.

(6) Imposition of a fine in the amount established by the board which shall not exceed $2,000 per offense, or in the case of a continuing offense, $250 for each day the offense continues.

(7) Written reprimand.

(8) Confidential informal resolution by consent of parties.

II. The board may also make referral to the attorney general or county attorney for criminal prosecution.

III. Misconduct sufficient to support disciplinary proceedings under this section shall include, but are not limited to:

(a) Violation of any provision of this chapter or any rule adopted under this chapter.

(b) Engaging in an action that endangers, or is likely to endanger, or should have been known likely to endanger the public health, safety, or welfare.

(c) Knowingly making any false statement in procuring or attempting to procure a license under this chapter.

(d) Practicing the profession in a grossly or repeatedly negligent manner.

(e) Being guilty of unprofessional, dishonest, or unethical conduct following a hearing of the board.

(f) Being convicted of a criminal offense which indicates to the board that the licensee cannot be entrusted to serve the public as a professional.

(g) Suspension or revocation of a license, similar to one issued under this chapter, in any other jurisdiction, without reinstatement.

(h) Violating the confidential nature of the records to which the licensee gained access.

IV. If the license holder or registered employee sustains a mental or physical injury which renders the registered employee or license holder incompetent to practice under this chapter the board may take action. All proceedings under this category shall be confidential and not subject to RSA 91-A.

V. The board shall take no action without a hearing. At least 14 days prior to the hearing, both parties to a disciplinary proceeding shall be served, either in person or by certified mail, with a written copy of the complaint filed and notice of the time and place of hearing. All complaints shall be fairly heard by the board, but no complaint shall be acted upon unless written and sworn to. A hearing shall be held on all complaints received by the board unless such hearing is waived by agreement of the board and registered employee or license holder. Written notice of all disciplinary decisions made by the board shall be given to both parties to the proceeding upon their issuance. Board decisions, except those associated with health issues, shall be public records. All pre-decision actions and deliberations of the board are confidential. Both parties are entitled to the benefit of counsel. Rehearings and appeals are subject to RSA 541.

106-L:22 Confidentiality of Information.

I. Unless waived by the person to whom the information pertains, the following information relative to a licensed private investigator, applicants for licensure and formerly licensed private investigators, if such information is in the possession of the board, shall be confidential and shall not be subject to disclosure, except as provided in paragraph II, absent an order of the court:

(a) The person’s date of birth, social security number, residence address, and home telephone number.

(b) The addresses and telephone numbers of the individuals who have submitted letters of reference in support of any application for licensure as a licensed private investigator.

(c) Any photograph identification card or other document issued by a United States governmental agency submitted in support of an application that includes an applicant’s date of birth, social security number, residence address, or home telephone number.

(d) Any information deemed confidential under RSA 91-A or other applicable law.

II. Notwithstanding paragraph I and the provisions of RSA 91-A, the board may disclose to any New Hampshire court or adjudicatory board before whom a licensed private investigator may appear or the parties to the action before that court or board, any records, documents or information in the possession of the board relating to a licensed private investigator, an applicant for licensure, or a formerly licensed private investigator.

106-L:23 Immunity From Civil Action.

I. No civil action shall be maintained against the board or any member of the board or its agents or employees, by any organization or its members, or by any other person for, or by reason of any statement, report, communication, or testimony to the board or any determination, action, statement, report, communication, disclosure, or testimony by the board in relation to any proceeding or communication under this chapter.

II. No civil action shall be maintained against any licensed private investigator who, in the course of his or her work and in good faith, reports a crime to law enforcement authorities.

III. No civil action shall be maintained against any person who makes a good faith report to the board of any violation of this chapter or rules of the board.

106-L:24 Obligation to Report Certain Criminal Violations.

I. Any perceived felonies, or personal injury crimes, observed or discovered by persons licensed under this chapter shall be immediately reported to the New Hampshire state police, the sheriff of the county in which the incident was observed, or to the local police department in the municipality in which the incident occurred.

II. Nothing in this section shall be construed to require the reporting of any offense discovered by a licensee, when that information is protected by attorney-client privilege, and the licensee is acting as an agent of the attorney.

III. Nothing in this section shall be construed to make the person reporting an agent of law enforcement unless, at the time of the act, he or she was acting under the direction and control of a law enforcement agency for the purposes of a criminal investigation.

106-L:25 Obligation to Report Unlicensed Activity.

I. A licensee shall be required to report:

(a) Any unlicensed activity under this chapter, by any person or entity to the board.

(b) Any illegal activity on the part of a licensee, observed or discovered by persons licensed under this chapter immediately to law enforcement as required in this chapter.

II. If, after a report and investigation, the board determines that any person or entity may be engaging in conduct requiring a license, the board shall forward a complaint to the attorney general’s office for criminal prosecution under this chapter or other applicable law.

III. The identity of the reporting individuals herein shall not be considered a public record under RSA 91-A and shall be kept confidential.

2 Application of Chapter. Any person licensed under RSA 106-F by the department of safety prior to the effective date of this act shall continue to hold their license until it expires or until the board of private investigation adopts rules under RSA 541-A and begins to issue licenses.

3 Reference to Detective Agencies Removed. Amend RSA 21-P:7, I(d) to read as follows:

(d) Regulation of [detective agencies and] security services under RSA 106-F.

4 Detective Agency License Reference Removed. Amend RSA 21-P:14, II(d) to read as follows:

(d) Licensing [detective agencies and] security guard services, as authorized by RSA 106-F:3.

5 Chapter Heading Changed. Amend the chapter heading preceding RSA 106-F to read as follows:

CHAPTER 106-F

[DETECTIVE AGENCIES AND] SECURITY SERVICES

6 Definitions. Amend RSA 106-F:4, IV through VII to read as follows:

IV. “Employee” means an individual employed by a [private detective agency or an individual employed by a] security guard service performing the duties of a [private detective or a] security guard for the said [private detective agency or] security guard service.

V. “Licensee” means a licensed [private detective agency or] security guard service.

VI. “License holder” means an employee of a licensee.

VII. “Individual” means an individual licensed as a [private detective or] security guard who is not an employee and who has no employees.

7 Detective License References. Amend RSA 106-F:6, VI and VII to read as follows:

VI. In the case of an applicant for an armed security guard [or armed private detective 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 or] security guard holder and by whom he or she is employed.

8 Detective License Reference. 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 shall as soon as practicable issue a license or renewal license in the form prescribed by him or her to the applicant, or notify the applicant of denial of the application. Prior to approval of any armed [detective 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 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.

9 Detective Fee. Amend RSA 106-F:8, I to read as follows:

I. The fee for a [private detective agency license or a] security guard service license shall be $100 for [an agency or] a service employing one person licensed under this chapter and $400 for [an agency or] a 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 years after the date of issue and shall be renewed every 2 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.

10 Repeal. The following are repealed:

I. RSA 106-F:4, I-b and II, relative to definition of private detective and agency.

II. RSA 106-F:6, VIII, relative to detective license application.

11 Effective Date. This act shall take effect January 1, 2008.

LBAO

07-0047

Revised 03/15/07

HB 776 FISCAL NOTE

AN ACT establishing the licensure and regulation of private investigators.

FISCAL IMPACT:

      The Department of Safety, Department of Justice, Judicial Branch, Judicial Council, and Association of Counties state that this bill may increase state general fund and county expenditures by an indeterminable amount in FY 2008 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or local expenditures.

METHODOLOGY:

    The Department of Safety states this bill establishes a board of private investigation for the licensure and regulation of private investigators. The board would be administratively attached to the Department and the Department assumes it would be funded with appropriations from the general fund and all revenue derived by the board would be credited to the general fund. Currently the Department licenses between 450 to 500 private investigators. This bill requires re-licensing every two years and that continuing education documentation be submitted during re-licensing. The Department cannot estimate the fiscal impact on state revenue as the new board would be tasked with determining the appropriate fines, fees, and penalties. The additional workload created by the board and the requirements of this bill would require a counter clerk IV at labor grade 11 with benefits at 48.3% to handle the filing, record keeping, and general interaction with the public. It would also require two plainclothes state police lieutenants at labor grade 26 with benefits at 48.3% to monitor licenses through on-site inspections, agency/individual reviews, and compliance inspections. These personnel could also administer proctored testing required by this bill. The Department further assumes the cost of these positions at 50% in FY 2008 due to the effective date on this bill of January 1, 2008. Based on these assumptions, the Department estimates general fund expenditures will increase as follows:

    The Department of Justice states this bill establishes a board for the licensure, regulation, and discipline of private investigators. Reports of unlicensed activity are to be referred to the Attorney General’s Office for criminal prosecution. This would impact the Department by increasing the number of criminal prosecutions. It is not possible to determine how much additional lawyer time will be needed to prosecute violations of this act. Under this bill the Department will also be responsible for providing legal council to the newly established board. It is estimated that the legal council role will require the use of 15% of an assistant attorney general and 5% of a paralegal. The equivalent cost of 15% of an assistant attorney general is $14,483 in FY 2008, $15,340 in FY 2009, $15,800 in FY 2010, and $16,274 in FY 2011. The equivalent cost of a paralegal at 5% is $2,390 in FY 2008, $2,497 in FY 2009, $2,601 in FY 2010, and $2,715 in FY 2011. Additionally, the newly created board will be required to promulgate rules in the first year of operation, FY 2008. It is estimated that the process of drafting and adopting rules for the committee would require approximately 200 hours of attorney time. It is expected that an attorney will need to be hired on a temporary basis to complete the rulemaking. The equivalent cost of 200 hours of attorney time is approximately $9,929.

    The Judicial Branch states this bill establishes both class A and class B misdemeanors, and felony offenses. The Branch calculates the judicial and clerical cost of a class A misdemeanor at $50 per charge and a class B misdemeanor at $37 per charge using current salary levels. The Branch calculates the judicial, clerical, jury, and bailiff cost of an average felony case at $296.88 using current salary levels. Misdemeanors and felonies can also involve appeals, resulting in additional costs. The Branch is unable to predict the number of prosecutions that will be brought pursuant to the proposed statute.

    The Judicial Council assumes that any cases arising from the enactment of this bill, for which the Indigent Defense Fund may be liable, will in the first instance be handled by the public defender or a contract attorney on a fixed fee basis of $250 per misdemeanor charged. If an assigned counsel attorney must be used, the hourly rate of $60 with a fee cap of $1,000 will apply. If a motion to exceed the fee cap is approved and/or “services other than counsel” are approved, these will also be chargeable to the Indigent Defense Fund. Any case where a defendant has been found guilty may also result in appeals to the Supreme Court which would have a cost implication for Indigent Defense expenditures made by the State. The Council is unable to predict the number of cases that may result from the passage of this bill, and is unable to determine the exact fiscal impact at this time. The other charges under this bill will not have an impact on the indigent defense fund as there is no right to council for a class B misdemeanor or for a felony charge against an entity other than a natural person.

    The Association of Counties states to the extent individuals are prosecuted under this new law, the county may incur the cost of pre-trial detainment at the county department of corrections, as well as the cost of sentenced inmates under the new law. The average annual cost for counties to incarcerate inmates is $22,889. The Association states the total exposure to the counties would be dependent on the number of individuals convicted and sentenced under the new law, which cannot be determined at this time.