SB94 By Senator Waggoner RFD Governmental Affairs Rd 1 04-FEB-20

SYNOPSIS: Under existing law, the Alabama Private Investigation Board licenses private investigators.

This bill would further establish education and work experience requirements for applicants in order to qualify for a private investigator license.

This bill would create a private investigator apprentice license that would allow apprentices to gain work experience through an internship.

This bill would authorize the board to issue a private investigator license to a licensed private investigator apprentice who successfully completes an internship in a specified time and passes an examination.

This bill would require private investigation agencies that do business within the state to be licensed by the board and meet certain requirements.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT

Relating to private investigation licensure; to designate as Article 1, Sections 34-25B-1 to 34-25B-29, inclusive, Code of Alabama 1975; to amend Sections 34-25B-2, 34-25B-3, 34-25B-10, 34-25B-12, 34-25B-14, 34-25B-17, 34-25B-22, and 34-25B-26, Code of Alabama 1975; to add Section 34-25B-12.1 and add a new Article 2, commencing with Section 34-25B-40 to Title 34, Chapter 25B of the Code of Alabama 1975; to require applicants for private investigator licenses to complete education and work experience; to license private investigator apprentices and allow apprentices to gain work experience through an internship; to provide for licensure of apprentices as private investigators after completing certain requirements; and to provide for licensure of private investigation agencies that do business in the state; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. An article heading is added before Section 34-25B-1 of the Code of Alabama 1975, to read as follows:

ARTICLE 1. Private Investigator Licenses and Private Investigation Board.Section 2. Sections 34-25B-2, 34-25B-3, 34-25B-10, and 34-25B-12 of the Code of Alabama 1975, are amended to read as follows:

§34-25B-2.

"As used in this chapter, the following terms shall have the following meanings:

"(1) BOARD. The Alabama Private Investigation Board.

"(1)(2) FELONY. A criminal offense that is defined and punishable under the laws of this state, or an offense committed outside the State of Alabama, which if committed in this state, would constitute a felony under Alabama law; a crime in any other state or a crime against the United States which is designated as a felony; or an offense in any other state, territory, or country punishable by imprisonment for a term exceeding one year.

"(2)(3) PRIVATE INVESTIGATION. The compensated act of any individual or company engaging in the business of obtaining or furnishing information with reference to any of the following:

"a. A crime committed or threatened against the United States or any state or territory of the United States.

"b. The identity, habits, conduct, business, occupation, honesty, integrity, credibility, including, but not limited to, the credibility of a person an individual giving testimony in a criminal or civil proceeding, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputations, or character of any person.

"c. The location, disposition, or recovery of lost or stolen property.

"d. The cause or responsibility for fires, losses, accidents, damages, or injuries to persons or to property.

"(4) PRIVATE INVESTIGATION AGENCY. A corporation, firm, partnership, or other business entity that, for compensation, practices private investigation in this state and that employs licensed private investigators. The term does not include a business entity that practices private investigation through licensed private investigators who are solely independent contractors rather than employees.

"(3)(5) PRIVATE INVESTIGATOR. a. A person An individual who, for compensation, performs one or more of the private investigation services defined and regulated by this chapter.

"b. A person An individual who, for consideration, advertises as providing or performing private investigation. The term does not include an informant who, on a one time or limited basis, as a result of a unique expertise, ability, or vocation, and who provides information or services while under the direction and control of a licensee of the board, that would otherwise be included in the definition of private investigation.

"c. A person An individual who is engaged in private investigation as defined herein and who is licensed in accordance with this chapter article.

"(6) PRIVATE INVESTIGATOR APPRENTICE. An individual who is engaged in private investigation under the supervision of a licensed private investigator and who is licensed in accordance with this article.

§34-25B-3.

"(a) An individual may not No person shall practice private investigation or hold himself or herself out to the public as a private investigator or private investigator apprentice or use any term, title, or abbreviation that expresses, infers, or implies that the person individual is licensed as a private investigator or private investigator apprentice unless the person individual at the time holds a valid license to practice private investigation as provided in this chapter article. All applicants shall pass a criminal background check based on criteria established pursuant to Section 34-25B-4.

"(b)(1) A licensed private investigator practicing as a solo practitioner may use the term "agency" in title or name and need not be licensed as a private investigation agency under Article 2, provided the solo practitioner does not employ licensed private investigators. However, if the solo practitioner employs any licensed private investigators, the solo practitioner must be licensed as a private investigation agency under Article 2.

"(2) This subsection does not prohibit a solo practitioner who subcontracts other licensed private investigators from using the term "agency" in title or name, and does not require the solo practitioner to be licensed as a private investigation agency under Article 2.

§34-25B-10.

"(a) Except as otherwise provided in this chapter, it It shall be unlawful for any person individual to act as a private investigator or private investigator apprentice without first obtaining a license from the board. For prosecution purposes, a violation of this chapter is classified as section is a Class A misdemeanor.

"(b) Each person individual licensed in accordance with this chapter article shall designate to the board a physical address where his or her records are to be kept.

§34-25B-12.

"(a) Each individual applicant for a private investigator license shall meet all of the following criteria that he or she in order to obtain a license:

"(1) Is at least 21 years of age.

"(2) Has passed a criminal background check based on criteria established by the board.

"(2)(3) Has not been declared by any court of competent jurisdiction incompetent by reason of mental defect or disease unless a court of competent jurisdiction has subsequently declared the applicant competent.

"(3)(4) Has not been convicted of a crime of moral turpitude, with the board having the final determination on the interpretation of moral turpitude.

"(4)(5) Has not been convicted of a felony crime.

"(5)(6) Has passed an examination to be administered twice annually by the board designed to measure knowledge and competence in the investigation field and in state civil and criminal privacy laws.

"(7) Has a minimum of two years' experience, education, or training, or a combination thereof, directly related to the field of private investigation in any of the following areas, calculated in one-year increments:

"a. Special Investigations. Investigative experience at the special investigation unit (SIU) level in insurance, fire investigation, banking, a law firm, or a similar setting, or other experience determined by the board as suitable experience relating to private investigation.

"b. Law Enforcement. Experience as a sworn law enforcement officer, or investigative experience as a detective or investigator at the federal, state, or local level.

"c. Education. A minimum of a two-year degree in a field of study directly related to private investigation, including, but not limited to, criminal justice, political science, criminology, or law enforcement; provided, however, the education component may only count for a maximum of one year of credit toward the two-year requirement of this subdivision.

"d. Internship. Successfully completed an internship as a private investigator apprentice as provided in Section 34-25B-12.1.

"(b) A study guide shall be provided to any applicant seeking to obtain an initial or renewal license under this chapter.

"(c) Any investigator currently holding a business license in the State of Alabama shall not have to meet the initial application requirements of this chapter, but shall be issued a license pursuant to this chapter upon application."

Section 3. Section 34-25B-12.1 is added to the Code of Alabama 1975, to read as follows:

§34-25B-12.1

(a) An individual may obtain a license as a private investigator apprentice and work under the supervision of a licensed private investigator as provided in this section.

(b) An applicant for a private investigator apprentice license shall meet all of the following criteria in order to obtain a license:

(1) Be at least 18 years of age.

(2) Graduated from high school or earned a GED certification.

(3) Meet the requirements of subdivisions (2) through (5) of Section 34-25B-12(a).

(c) An individual issued a private investigator apprentice license shall successfully pass the examination required by the board, which must be taken within 90 days of license issuance. Before taking the exam, an apprentice licensee may begin working as an intern.

(d) An apprentice licensee shall be trained under the supervision of a sponsor private investigator who has at least two years' experience as a licensed private investigator in this state. Supervision may be in person or by telephone or by other form of electronic communication and oversight. The sponsoring private investigator trainer or private investigation agency shall maintain records of training activities as required by the board, by rule, and shall make these records available to the board upon request. Failure by a sponsoring private investigator to maintain records may result in disqualification as a sponsor.

(e) An apprentice licensee shall do all of the following within a three-year period to successfully complete an internship:

(1) Complete a minimum of 2,000 hours of training which shall include training in the field and in the classroom, and shall cover administrative functions including report writing and research.

(2) Complete a minimum of 24 hours of continuing education credit administered by the Alabama Private Investigators Association or other certified provider of continuing education approved by the board. The coursework must cover investigations, three hours of business operations, and a minimum of three hours of ethics training.

(f) An apprentice licensee shall submit proof of successfully completing an internship under this section to qualify for licensure as a private investigator. An apprentice licensee who successfully completes an internship, upon payment of the license fee and satisfactory proof, as required by the board, by rule, of successful completion of an internship pursuant to this section, shall be granted a license as a private investigator without having to fulfill the examination requirements.

(g) An apprentice licensee who fails to successfully complete an internship within three years of being issued an apprentice license shall be required to reapply for a new apprentice license. Any education and training experience completed during the previous internship shall be credited toward completing a new internship. The board, by rule, shall establish documentation requirements of the previous internship training records. The sponsoring private investigator trainer or private investigation agency shall maintain training records and make the records available for inspection by the board upon request. An apprentice licensee shall be permitted to obtain a copy of his or her training records from the sponsoring private investigator trainer or private investigation agency.Section 4. Sections 34-25B-14, 34-25B-17, 34-25B-22, and 34-25B-26, Code of Alabama 1975, are amended to read as follows:

§34-25B-14.

"(a) The board shall issue to every private investigator licensee and private investigator apprentice licensee an identification card, which shall be issued in credit card size, be permanently laminated, and contain the following information of the licensee:

"(1) Name.

"(2) Photograph.

"(3) Physical characteristics.

"(4) Private investigator's license number.

"(5) Expiration date of license.

"(b) The identification card shall be carried on the person of the licensee when engaged in the activities of the licensee.

§34-25B-17.

"(a) All private investigator licenses and private investigation agency licenses issued or renewed under this chapter article shall be valid for a period of two years from the date of issuance. The board shall provide each licensee with a renewal application 60 days prior to the expiration of the license.

"(b) Each application for renewal shall be reviewed for criminal convictions and civil fraud findings.

"(c) An administrative late fee not exceeding two hundred dollars ($200) as prescribed by the board shall be assessed on any renewal application postmarked after the expiration date of the license.

"(d) No renewal application may be accepted more than 30 days after the expiration date of the license.

§34-25B-22.

"(a) The following acts when committed by an individual licensed as a private investigator in Alabama a licensed private investigator or by an individual employed by or contracting with a licensed private investigation agency shall constitute a violation punishable as a Class A misdemeanor:

"(1) To knowingly make a material misrepresentation as to the ability of the individual to perform the investigation required by a potential client in order to obtain employment.

"(2) To make unsubstantiated monetary charges to a client for services not rendered or transportation not utilized.

"(3) To knowingly make a false report to a client in relation to the investigation performed for a client.

"(4) To continue an investigation for a client when it becomes obvious to the investigator that a successful completion of an investigation is unlikely without first advising the client and obtaining the approval of the client for continuation of the investigation.

"(5) To reveal information obtained for a client during an investigation to another individual except as required by law.

"(b) Persons licensed pursuant to this chapter shall report any suspected instances of child abuse or neglect to a local law enforcement agency or the Department of Human Resources, or both.

§34-25B-26.

"(a) Each private investigator licensee shall complete eight hours of continuing professional education acceptable to the board in each calendar year.

"(b) The board shall make every effort to ensue at least one seminar per year will be held in each congressional district of the state providing an opportunity to fulfill the continuing professional education requirements of this section, which shall include at least one hour per year on ethics.

"(c) The board shall promulgate adopt rules necessary to carry out this section."

Section 5. Article 2, commencing with Section 34-25B-40, is added to Chapter 25B of Title 34 of the Code of Alabama 1975, to read as follows:

ARTICLE 2. Private Investigation Agencies.

§34-25B-40.

(a)(1) A business entity, regardless of whether the business entity is domiciled within or outside the state, that employs licensed private investigators may not practice private investigation or advertise or hold itself out to the public in this state as a private investigation agency, company, or other business entity without first being licensed by the board pursuant to this article. A violation of this section is a Class A misdemeanor.

(2) An individual solo practitioner licensed as a private investigator under Article 1 who does not employ any licensed private investigators may use the term "agency" in title or name without being licensed under this article.

(3) An individual solo practitioner licensed as a private investigator under Article 1 who subcontracts licensed private investigators may use the term "agency" in title or name without being licensed under this article.

(b) A business entity that employs licensed private investigators and practices private investigation in the state on July 1, 2020, may continue to practice private investigation until the board establishes a licensure process, but in no event may the business entity practice private investigation in the state without a license pursuant to the article after January 1, 2021.

§34-25B-41.

(a) Application for licensure under this article shall be made in writing to the board on forms prescribed by the board and shall include all of the following:

(1) The name of the applicant.

(2) The business, physical, and email address of the applicant.

(3) A telephone number and other contact information for the applicant.

(4) If the applicant is not an Alabama domestic business entity, the name and contact information for the registered agent of the applicant for service of process in this state.

(5) The name, address, and contact information of a principal contact for the applicant.

(6) Certification that the applicant verifies that a corporate officer or principal of the applicant holds a private investigator license in good standing in this state pursuant to Article 1.

(7) An irrevocable uniform consent to service of process.

(8) Any other information required by the board and reasonably necessary to grant licensure.

(b) Upon receipt of a properly completed application and payment of a license fee as provided in this subsection, the board shall issue a license authorizing the licensee to do business as a private investigation agency in this state.

(1) For Alabama domestic business entities, the license fee shall be one hundred dollars ($100).

(2) For all business entitities domiciled outside of the state, the license fee shall be five hundred dollars ($500).

(c) A private investigation agency license shall be valid for two years and may be renewed upon payment of the license fee described in subsection (b) and meeting any other reasonable requirements established by rule by the board.

(d) Each business entity licensed in accordance with this article shall designate to the board a physical address where the entity's records are to be kept.

§34-25B-42.

(a) The board shall issue to every private investigation agency licensee a certification which shall be at least 8 inches by 10 inches in size and contain the following information of the licensee:

(1) Name of the business.

(2) Address of the business.

(3) The license number.

(4) Expiration date of the license.

(b) The certification card shall be posted in a conspicuous area of the licensee's business.

(c) A licensee shall display the agency's license number on all advertisements, brochures, stationary, letterhead, case reports, business cards, and promotional items distributed or used by the licensee.

§34-25B-43.

(a) All private investigation agency licenses issued or renewed under this article shall be valid for a period of two years from the date of issuance. The board shall provide each licensee with a renewal application 60 days prior to the expiration of the license.

(b) Each application for renewal shall be reviewed for criminal convictions and civil fraud findings.

(c) An administrative late fee not exceeding two hundred dollars ($200) as prescribed by the board shall be assessed on any renewal application postmarked after the expiration date of the license.

(d) No renewal application may be accepted more than 30 days after the expiration date of the license.

§34-25B-44.

(a) A licensed private investigation agency shall ensure that at least one officer or principal of the company holds a private investigator license in good standing in this state pursuant to Article 1 and that at least one officer or principal of the company is domiciled in the state.

(b) A licensed private investigation agency shall be responsible for the actions of its employees and contractors while acting in the scope of employment of the company.

§34-25B-45.

The board may adopt rules to implement this article.

Section 6. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 7. This act shall become effective July 1, 2020, following its passage and approval by the Governor, or its otherwise becoming law.

Private Investigators

Private Investigation Board

Boards and Commissions

Code Added

Code Amended