Chapter 0142 - 472R - S Ver of HB2754

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 32-2402, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2402. Administration by director; duty to keep records; rules; criminal history records checks

A. The director of the department of public safety shall administer this chapter.

B. The department shall keep a record of:

1. All applications for licenses or registrations under this chapter.

2. All bonds and proof of workers' compensation required to be filed.

3. A statement as to Whether a license, registration certificate, renewal license or renewal registration certificate has been issued under each application and bond.

4. If a license or registration certificate is revoked, suspended, cancelled or denied or if a licensee or registrant is placed on probation, the date of filing the order for revocation, suspension, cancellation, denial or probation.

5. All individuals, firms, partnerships, associations or corporations that have had a license or registration revoked, suspended or cancelled or that have been placed on probation and a written record of complaints filed against licensees and registrants.

C. The department shall maintain all records kept pursuant to subsection B of this section for at least five years. The records, except the financial statement of licensees, are open to inspection as public records.

D. The director shall adopt and enforce rules that are not in conflict with the laws of this state and that are necessary to enforce this chapter.

E. The director may conduct periodic criminal history records checks pursuant to section 41-1750 for the purpose of updating the licensing and registration status of current license and registration holders. END_STATUTE

Sec. 2. Section 32-2404, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2404. Private investigator and security guard hearing board; qualifications; appointments; terms; compensation; immunity

A. The private investigator and security guard hearing board is established consisting of five seven members and an alternate member who are appointed by the director.

B. Each member of the board shall be a citizen of the United States and a resident of this state at the time of appointment. One member Two members shall be a qualifying party parties who is are licensed as provided in this chapter. One member Two members shall be a qualifying party parties who is are licensed as provided in chapter 26 of this title. Two members shall be certified peace officers with a rank of at least lieutenant who are not employees of the department. One member shall be a public member who shall not have a financial interest in a private investigation or security guard agency and shall not have an immediate family member or a household member who is licensed or registered under this chapter or chapter 26 of this title or who is a certified peace officer. The alternate member shall be a public member who does not have a financial interest in a private investigation or security guard agency and does not have an immediate family member or a household member who is licensed or registered under this chapter or chapter 26 of this title or who is a certified peace officer.

C. Each member of the board shall serve for a staggered term of five years beginning and ending on the third Monday in January. The alternate member shall serve a five year term beginning and ending on the third Monday in January. A member, including the alternate member, shall not serve more than one term, except that a member appointed to fill a vacancy may be reappointed for one full term. If a qualified replacement has not been found by the end of the member's term, the director may extend the member's term for no more than six months or until a replacement is found, whichever occurs first.

D. The director shall fill a vacancy on the board occurring other than by the expiration of term by appointment of a member for the unexpired term as provided in subsection C of this section. The director, after a hearing, may remove any member of the board for misconduct, incompetency or neglect of duty.

E. Members of the board, including the alternate member, are eligible to receive compensation pursuant to section 38‑611 for each day actually and necessarily spent in the performance of their duties.

F. Members of the board, including the alternate member, are personally immune from suit with respect to all acts done and actions taken in good faith and in furtherance of the purposes of this chapter. END_STATUTE

Sec. 3. Title 32, chapter 24, article 1, Arizona Revised Statutes, is amended by adding section 32-2413, to read:

START_STATUTE32-2413. Reciprocal agreements

A. The department may enter into a reciprocal agreement with a state that has private investigator qualification laws substantially similar to this chapter to allow a private investigator license or registration to be used by the licensee or registrant within the jurisdiction of either this state or the other state. The department may enter into the agreement if the issuing authority for the other state meets all of the following conditions:

1. Issues a private investigator identification card with an expiration date printed on the card.

2. Is available to verify the license or registration status for law enforcement purposes within three business days after a request for verification.

3. Has disqualification, suspension and revocation requirements for licenses and registrations.

4. Requires that the applicant for a license or registration submit to a criminal history records check pursuant to section 41-1750 and applicable federal law.

B. The reciprocal agreement shall be limited and is intended only to allow private investigators to continue investigations that originate in the investigator’s home state and that require investigation in another state. The reciprocal agreement shall include the following provisions:

1. The private investigator shall possess a private investigator license or registration in good standing.

2. The private investigator shall spend no more than thirty days per case while conducting an investigation in this state.

3. The private investigator shall provide written notification to the department describing the case and the dates to be worked in this state on the case.

4. The private investigator shall not solicit any business while in this state. END_STATUTE

Sec. 4. Section 32-2602, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2602. Administration by director; duty to keep records; rules; criminal history records checks

A. The director of the department of public safety shall administer this chapter.

B. The department shall keep a record of:

1. All applications for licenses or registration under this chapter.

2. Whether a license, registration certificate, renewal license or renewal registration certificate has been issued under each application.

3. If a license or registration certificate is revoked or suspended, the date of filing the order for revocation or suspension.

4. A list of all individuals, qualifying parties, firms, partnerships, associations or corporations that have had licenses or registrations revoked or suspended and a written record of complaints filed against any licensees or registrants.

5. All insurance policies required to be filed under this chapter.

D. The department shall adopt and enforce rules that are not in conflict with the laws of this state and that are necessary to enforce this chapter.

Sec. 5. Section 32-2606, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2606. Exceptions

This chapter does not apply to:

1. An officer or employee of the federal government, this state or a political subdivision of this state while the officer or employee is performing official duties.

2. An individual who performs security related work at:

(a) A commercial nuclear generating station that is subject to federal regulatory requirements.

(b) A company that is subject to department of defense regulatory requirements.

3. A company that employs security guards solely for use of and service to itself and not for others and that complies with the following requirements:

(a) If the company’s security guards are armed, each guard must complete sixteen hours of firearms training initially and complete an additional eight hours of refresher training each year thereafter.

(b) If the security guard wears a uniform or badge, the uniform or badge must strictly conform to the standards established by the department pursuant to this chapter.

(c) The company must annually submit an affidavit to the department that attests to the company’s compliance with its internal procedures that require a background investigation for each of its security guards.

4. the Arizona rangers organization as identified in section 41-4201, or authorized persons performing official Arizona ranger duties when in the service of a nonprofit organization recognized under section 501(c)(3) of the internal revenue code. END_STATUTE

Sec. 6. Title 32, chapter 26, article 1, Arizona Revised Statutes, is amended by adding section 32-2610, to read:

START_STATUTE32-2610. Reciprocal agreements; recognition

A. The department may enter into a reciprocal agreement with a state that has security guard qualification laws substantially similar to this chapter to allow a security guard registration to be used by the registrant within the jurisdiction of either this state or the other state. The department may enter into the agreement if the issuing authority for the other state meets all of the following conditions:

1. Issues a Security Guard identification card with an expiration date printed on the card.

2. Is available to verify the registration status for law enforcement purposes within three business days after a request for verification.

3. Has disqualification, suspension and revocation requirements for registrations.

4. Requires that the applicant for a registration submit to a criminal history records check pursuant to section 41-1750 and applicable federal law.

b. The department may recognize security guard registrations from states that have security guard qualification laws substantially similar to this chapter if the issuing authority for the other state meets all of the conditions prescribed in subsection A, paragraphs 1 through 4 of this section.

C. The reciprocal agreement or recognition shall be limited and is intended only to allow security guard agencies that maintain business operations in multiple states to use their security guards to meet temporary demands. For a security guard from another state to work in this state, the department shall set appropriate restrictions that shall include the following provisions:

1. The security guard shall possess a security guard registration in good standing from another state.

2. The security guard shall be employed by a security guard agency licensed in this state that possesses a security guard agency license in both states in good standing.

3. The security guard shall work no more than thirty days in a calendar year in this state.

4. The security guard agency shall provide written notification to the department on a form provided by the department.

5. Security guards who possess only a temporary or provisional registration shall not be permitted to work in this state. END_STATUTE

Sec. 7. Section 32-2636, Arizona Revised Statutes, is amended to read:

START_STATUTE32-2636. Grounds for disciplinary action; emergency summary suspension; judicial review

A. The following constitute grounds for disciplinary action against a licensee or registrant, or if the licensee is other than an individual, against its qualifying party or any of its associates, directors or managers:

1. Using any letterhead, advertisement or other printed matter to represent, or in any other manner representing, that the licensee, registrant, qualifying party or associate, director or manager is an instrumentality of the federal government or any state or political subdivision of a state.

2. Using a name that is different from that under which the licensee, registrant, qualifying party or associate, director or manager is currently licensed or registered for any advertisement, solicitation or contract to secure business under this chapter unless the name is an authorized fictitious name.

3. Falsifying fingerprints, photographs or other documents while operating pursuant to this chapter.

4. Impersonating, or permitting or aiding and abetting an employee to impersonate, a law enforcement officer or employee of the United States or any state or political subdivision of a state.

5. Knowingly violating, or advising, encouraging or assisting in the violation of, any statute, court order, warrant or injunction in the course of business as a licensee or registrant under this chapter.

6. Committing or knowingly permitting any employee to commit any violation of this chapter or rules adopted pursuant to this chapter.

7. Committing an act of misconduct involving a weapon pursuant to section 13‑3102.

8. Conviction of a felony.

9. Conviction of any act of personal violence or force against any person or conviction of threatening to commit any act of personal violence or force against any person.

10. Fraud or wilful misrepresentation in applying for an original license or registration or the renewal of an existing license or registration.

11. Soliciting business for an attorney in return for compensation.

12. Conviction of any act constituting fraud.

13. Being on parole, on community supervision, on work furlough, on home arrest, on release on any other basis or named in an outstanding arrest warrant.

14. Serving a term of probation pursuant to a conviction for any act of personal violence or domestic violence as defined in section 13‑3601 or an offense that has the same elements as a domestic violence offense listed in section 13‑3601, subsection A.

15. Wilfully failing or refusing to render client services or a report as agreed between the parties and for which compensation has been paid or tendered pursuant to the agreement of the parties.

16. The unauthorized release of information acquired on behalf of a client by a licensee, associate or registrant as a result of activities regulated under this chapter.

17. Failing or refusing to cooperate with or refusing access to an authorized representative of the department engaged in an official investigation pursuant to this chapter.

18. Employing or contracting with any unregistered or improperly registered person or unlicensed or improperly licensed person or agency to conduct activities regulated under this chapter if the licensure or registration status was known or could have been ascertained by reasonable inquiry.

19. Permitting, authorizing, aiding or in any way assisting a registered employee to conduct services as described in this chapter on an independent contractor basis and not under the authority of the licensed agency.

20. Failing to maintain in full force and effect workers' compensation insurance, if applicable.

21. Conducting security guard services regulated by this chapter on an expired, revoked or suspended license or registration.

22. Accepting employment, contracting or in any way engaging in employment that has an adverse impact on security guard services being conducted on behalf of clients.

23. Advertising in a false, deceptive or misleading manner.

24. Failing to display on request the identification card issued by the department pursuant to section 32‑2624.

25. Committing any act of unprofessional conduct.

26. Being arrested for any offense listed in this chapter that would disqualify the licensee, registrant, qualifying party or any of its associates, directors or managers from obtaining a license or registration.

B. An officer, director, associate, partner, qualifying party, employee or manager of the holder of an agency license issued pursuant to this chapter who is found in violation of this chapter shall be denied the privilege of operating under such a license. The remaining officers, directors, associates, partners, employees or managers of such licensee who are innocent of such violations may carry on the business.

C. Any person aggrieved by a decision of the director may request a hearing pursuant to title 41, chapter 6, article 10. Except as provided in section 41‑1092.08, subsection H, final decisions of the director are subject to judicial review pursuant to title 12, chapter 7, article 6.

D. On completion of an investigation, the director:

1. May dismiss the case.

2. May take emergency action.

3. May issue a letter of concern, if applicable.

4. May forward the findings to the board for review and possible disciplinary action.

5. Shall place all records, evidence, findings and conclusions and any other information pertinent to the investigation in the public records section of the file maintained at the department.

6. Shall suspend the license or registration of a person who is arrested for an offense listed in this chapter that would disqualify the person from obtaining a license or registration.

E. A letter of concern is a public document and may be used in future disciplinary actions against a licensee or registrant.

F. If the department finds, based on its investigation, that the public health, safety or welfare requires emergency action, the director may order a summary suspension of a license or registration pending proceedings for revocation or other action. If the director issues this order, the department shall serve the licensee or registrant with a written notice of complaint and formal hearing, setting forth the charges made against the licensee or registrant and the licensee's or registrant's right to a formal hearing before the board pursuant to title 41, chapter 6, article 10.

G. If the department finds, based on its investigation, that a violation of subsection A of this section occurred, a hearing by the board may be scheduled pursuant to title 41, chapter 6, article 10. Notice of the hearing shall be sent by certified mail, return receipt requested, to the licensee’s or registrant's last known address in the department's files.

H. Based on information the board receives during a hearing pursuant to title 41, chapter 6, article 10, it may recommend to the director that the director:

1. Dismiss the complaint if the board believes it is without merit.

2. Fix a period and terms of probation best adapted to protect the public health and safety and to rehabilitate or educate the licensee or registrant.

3. Place the license or registration on suspension for a period of not more than twelve months.

4. Revoke the license or registration.

I. The director shall review the records of a finding by the board involving a disciplinary action and may affirm, reverse, adopt, modify, supplement, amend or reject the recommendation of the board. On a finding by the board and review and concurrence by the director that a licensee or registrant committed a violation of subsection A of this section, the probation, suspension or revocation applies to all licenses or registrations held by a licensee or registrant under this chapter. END_STATUTE