Assigned to CED                                                                                                         AS PASSED BY THE SENATE

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

AMENDED

FACT SHEET FOR H.B. 2754

security guards; private investigators; reciprocity

Purpose

            Allows the Department of Public Safety to enter into reciprocal agreements with other states that have substantially similar laws as Arizona to allow security guards and private investigators to work in Arizona on a temporary basis and makes other changes to the private investigator and security guard statutes.

Background

            The Department of Public Safety (DPS) regulates private investigators and security guards by issuing licenses and registrations, keeping records of licenses, investigating complaints and maintaining records relating to bonding and insurance policies. The five-member Private Investigator and Security Guard Hearing Board (Board) is required to submit recommendations to the Director of DPS regarding disciplinary actions or the denial of licenses or registrations. 

            In order to receive a license or registration as a private investigator or security guard, the qualifying party or employee cannot have been convicted of a felony or currently be under indictment for a felony.  Additionally, they cannot have been convicted of a misdemeanor act involving crimes such as misconduct involving a deadly weapon, fraud, theft, domestic violence, sexual misconduct and drug offenses within the five years prior to applying for licensure or registration. DPS may deny a license or renewal of a license if an applicant has committed any of the above.  

            H.B. 2754 allows DPS to enter into reciprocal agreements with other states that have substantially similar licensing laws as Arizona for security guards and private investigators.  According to DPS, H.B. 2754 will allow security guards to be brought in to work in Arizona for no longer than 30 days in a calendar year to cover large events such as the Super Bowl.  According to DPS, it will also allow private investigators from out of state to conduct any necessary work in Arizona instead of hiring a licensed private investigator in Arizona.  Private investigators cannot work any longer than 30 days in Arizona per case.

            There is a potential cost to DPS to administer the new reciprocal agreement program.  H.B. 2754 adds two additional members to the Board, which are reimbursed for their services on the Board.  DPS reports that these costs can be absorbed by the agency, and therefore there is no anticipated fiscal impact to the state General Fund associated with this measure.

Provisions

Private Investigators Reciprocal Agreements

1. Allows DPS to enter into a reciprocal agreement with a state that has private investigator qualification laws substantially similar to Arizona’s laws if the issuing authority in the other state meets the following conditions:

a) issues a private investigator card with the expiration date printed on the card.

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

c) has disqualification, suspension and revocation requirements for licenses and registrations.

d) requires that the applicant for a license or registration submit to a criminal history records check.

2. Requires the reciprocal agreement to be limited and to only allow private investigators to continue investigations that originate in the investigator’s home state that require an investigation in another state. 

3. States a private investigator subject to a reciprocal agreement:

a) must possess a private investigator license or registration in good standing.

b) cannot spend more than 30 days per case while conducting an investigation in Arizona.

c) must provide written notification to DPS describing the case and the dates to be worked in Arizona on the case.

d) is prohibited from soliciting any business while in Arizona.

Security Guards Reciprocal Agreements

4. Allows DPS to enter into a reciprocal agreement with a state that has security guard qualification laws substantially similar to Arizona’s laws if the issuing authority in the other state meets all of the following conditions:

a) issues a security guard identification card with an expiration date printed on the card.

b) is available to verify the registration status for law enforcement purposes within three business day after a request for verification.

c) has disqualification, suspension and revocation requirements for registrations.

d) requires that the applicant for a registration submit to a criminal history records check.

5. Allows DPS to recognize, without a reciprocity agreement, security guard registrations from states that have security guard qualification laws substantially similar to Arizona’s if the issuing authority meets all of the conditions described above.

6. Requires the reciprocal agreement or recognition to be limited and to only allow security guard agencies that maintain business operations in multiple states to use their security guards to meet temporary demands. 

7. Requires DPS to set restrictions for a security guard from another state to work in Arizona, including the requirements that the security guard:

a) possess a security guard registration in good standing from another state.

b) is employed by a licensed security guard agency that possesses a security guard agency license in both states that is in good standing.

c) works no more than 30 days in a calendar year in this state.

d) is not permitted to work in Arizona if the security guard only possesses a temporary or provisional registration.

8. Requires the out-of-state security guard’s agency to provide written notification to DPS that the security guard is working in Arizona.

Miscellaneous

9. Allows the Director of DPS to conduct periodic criminal history records checks for the purpose of updating the licensing and registration status of current private investigator and security guard license and registration holders.

10. Adds a licensed private investigator and a licensed security guard as members of the Board.

11. Allows the Director of DPS to extend a member of the Board’s term if a qualified replacement has not been found, up to six months or until a replacement is found, whichever is less.

12. Adds being arrested for any offense that would disqualify a security guard licensee or registrant, qualifying party or any of its associates, directors or managers from obtaining a license, to constitute grounds for disciplinary action.

13. Requires the Director of DPS to suspend the license or registration of a person who is arrested for any offense that would disqualify the person from obtaining a license or registration as a security guard.

14. Exempts the Arizona Rangers or other persons performing official Arizona Ranger duties, when in the service of a nonprofit entity, from security guard licensing requirements.

15. Makes technical changes.

16. Becomes effective on the general effective date.

Amendments Adopted by Committee of the Whole

· Exempts the Arizona Rangers from security guard licensing requirements.

House Action Senate Action

COM               2/15/06     DP      8-0-0-1-0                 CED                3/22/06     DP     7-0-1-0

GRGFA          2/21/06     W/D                                   3^rd Read           4/5/06                 27-0-3-0

3^rd Read           3/9/06                  50-7-3-0

Prepared by Senate Research

April 6, 2006

BP/HG/jas