HB 9: "An Act providing for the licensing and regulation of private investigators and private investigator agencies; and providing for an effective date."

00 HOUSE BILL NO. 9 01 "An Act providing for the licensing and regulation of private investigators and private 02 investigator agencies; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.01.010 is amended by adding a new paragraph to read: 05 (42) regulation of private investigators under AS 08.85. 06 * Sec. 2. AS 08 is amended by adding a new chapter to read: 07 Chapter 85. Private Investigators and Private Investigator Agencies. 08 Sec. 08.85.100. License required. (a) A person may not practice as a private 09 investigator unless the person is licensed under this chapter or exempt from licensure 10 under AS 08.85.300. 11 (b) A person may not use the title "private investigator," or any variation of 12 the title, or hold out publicly as a private investigator unless the person is licensed 13 under this chapter. 14 (c) A person may not practice as a private investigator unless the person is

01 employed by a private investigator agency. 02 (d) A person who knowingly violates this section is guilty of a class A 03 misdemeanor and may be punished as provided in AS 12.55. 04 Sec. 08.85.110. Scope of practice. A private investigator licensed under this 05 chapter may engage in business or accept employment to furnish, agree to conduct, or 06 conduct an investigation for the purpose of obtaining information about 07 (1) criminal offenses; 08 (2) the identity, habits, conduct, business, occupation, honesty, 09 integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, 10 movement, whereabouts, affiliations, associations, transactions, acts, reputation, or 11 character of a person, entity, or thing; 12 (3) the location, disposition, or recovery of lost or stolen property; 13 (4) the cause or responsibility for fires, libels, losses, accidents, or 14 damage or injury to persons or property; 15 (5) evidence to be used before a court, board, officer, or investigative 16 committee; 17 (6) the presence of electronic eavesdropping devices; or 18 (7) the truth or falsity of a statement or representation. 19 Sec. 08.85.120. General requirements for private investigators. To obtain a 20 private investigator license, an applicant 21 (1) must be a citizen or resident alien of the United States; 22 (2) may not have been convicted of a felony in any jurisdiction in the 23 10 years preceding the application for a license; 24 (3) may not have been convicted in this or another jurisdiction of a 25 crime of moral turpitude or sexual misconduct, as defined by the department, that the 26 department determines 27 (A) directly relates to the applicant's capacity to perform the 28 duties of a private investigator; and 29 (B) provides grounds for denying licensure under this chapter 30 to protect the citizens of the state; 31 (4) may not be on probation, on parole, or named on an outstanding

01 arrest warrant; 02 (5) may not have been dishonorably discharged from the armed forces 03 of the United States; 04 (6) may not have been declared by a court of competent jurisdiction to 05 be mentally incompetent unless a court has since declared the person to be competent; 06 and 07 (7) may not be currently employed 08 (A) as a peace officer; 09 (B) by an agency of the United States or a state or local 10 government if the position held involves the enforcement of law or provides 11 access to police or intelligence information or files generally considered to be 12 restricted to law enforcement or investigative personnel only; or 13 (C) in a position the department determines to represent a 14 conflict of interest for the prospective licensee. 15 Sec. 08.85.130. Classes of licenses. (a) The department shall issue a class A 16 license under this chapter to an individual who qualifies under AS 08.85.120 and 17 08.85.140. A class A license entitles an individual to operate a private investigator 18 agency as an individual, partner, or chief executive officer of a corporation. 19 (b) The department shall issue a class B license under this chapter to an 20 individual who qualifies under AS 08.85.120 and 08.85.150. A class B license entitles 21 an individual to be employed by a private investigator agency to perform private 22 investigations. 23 Sec. 08.85.140. Private investigator class A license; qualifications. (a) The 24 department shall issue a private investigator class A license to an individual who, in 25 addition to meeting the requirements of AS 08.85.120, 26 (1) is at least 21 years of age; 27 (2) pays the required fee; and 28 (3) has provided evidence satisfactory to the department of work 29 experience and education or their equivalent of one of the following: 30 (A) a high school diploma or equivalent and three or more 31 years of experience in investigative work;

01 (B) an associate's degree from an accredited college or 02 university and two or more years of experience in investigative work; or 03 (C) a bachelor's, master's, or doctorate degree from an 04 accredited college or university and one or more years of experience in 05 investigative work. 06 (b) In this section, a year's experience means 1,500 hours or more of actual 07 compensated work performed before the filing of an application. An applicant shall 08 substantiate the experience by providing written certifications from previous 09 employers. If an applicant is unable to supply written certifications from previous 10 employers, an applicant may offer written certifications from people other than 11 employers who, based on personal knowledge, can substantiate the applicant's 12 employment. 13 Sec. 08.85.150. Private investigator class B license; qualifications. The 14 department shall issue a class B license under this chapter to an applicant who, in 15 addition to meeting the general requirements of AS 08.85.120, 16 (1) is at least 18 years of age; 17 (2) pays the required fee; 18 (3) has a high school diploma or equivalent; and 19 (4) is employed by or has an offer of employment from a private 20 investigator agency licensed under this chapter. 21 Sec. 08.85.160. License application. (a) An applicant for a license under this 22 chapter shall submit an application to the department on a form and in a manner 23 provided by the department. 24 (b) An application must include the following information about an applicant: 25 (1) the applicant's full name; 26 (2) the applicant's business name; 27 (3) the applicant's residence address; 28 (4) the applicant's residential telephone number; 29 (5) the applicant's residential mailing address; 30 (6) the applicant's residence history for the five years immediately 31 preceding the application;

01 (7) the applicant's business address; 02 (8) the applicant's business telephone number; 03 (9) the applicant's sex; 04 (10) the applicant's height and weight; 05 (11) the applicant's hair and eye color; 06 (12) the applicant's date of birth; 07 (13) the applicant's social security number; 08 (14) the applicant's driver's license number and expiration date; 09 (15) the applicant's citizenship; 10 (16) the applicant's criminal history and conviction record; 11 (17) the applicant's employment history for the five years preceding 12 the date of application, including reasons for termination and the applicant's eligibility 13 for rehire; 14 (18) the name and address of all business entities in which the 15 applicant has a vested interest or a close economic association. 16 (c) The application must include the applicant's 17 (1) statement that the applicant is free from any mental illness or 18 disability that may adversely affect the applicant's performance as a private 19 investigator; 20 (2) statement that the applicant has read and understands AS 08.85.100 21 - 08.85.310; 22 (3) statement that the information contained in the application is true; 23 and 24 (4) notarized signature. 25 (d) The applicant shall submit with the application 26 (1) fingerprints and the fees required by the Department of Public 27 Safety under AS 12.62.160 for criminal justice information and a national criminal 28 history record check; the department shall submit the fingerprints and fees to the 29 Department of Public Safety for a report of criminal justice information under 30 AS 12.62 and a national criminal history record check under AS 12.62.400; 31 (2) two photographs of the applicant in a form required by the

01 department; 02 (3) letters of recommendation from three citizens with no prior felony 03 convictions, at least one of whom is a resident of the state, attesting to the good 04 character of the applicant; and 05 (4) documentation required by the department to substantiate that the 06 applicant meets the applicable requirements of this chapter. 07 (e) On receipt of an application for a license, the department shall conduct an 08 investigation to determine whether the facts set out in the application are accurate. 09 (f) The department shall require that an application for a license issued under 10 this chapter be submitted under oath or affirmation or with notice that false statements 11 made are punishable as unsworn falsification in the second degree under 12 AS 11.56.210. 13 Sec. 08.85.170. Investigation of applicants. (a) When investigating an 14 applicant for licensure or certification under this chapter, the department may require 15 any information and documentation that reasonably relates to the need to determine 16 whether the applicant meets the criteria for a license or certificate. 17 (b) The department may forward to an applicant's employer a summary of the 18 information acquired under this section, to the extent that it is public information. 19 Sec. 08.85.200. Reciprocity. The department may grant a private investigator 20 license under this chapter to a person who 21 (1) applies on a form prescribed by the department; 22 (2) pays the appropriate application fee; and 23 (3) holds a valid license, registration, identification, or similar card 24 issued by a state that 25 (A) recognizes and accepts licenses issued under this chapter in 26 a reciprocal manner; and 27 (B) the department determines has selection, training, and other 28 requirements at least as stringent as those required by this chapter. 29 Sec. 08.85.210. License cards. (a) The department shall issue a class A license 30 card to each individual licensed as a class A private investigator under this chapter and 31 a class B license card to each individual licensed as a class B private investigator

01 under this chapter. 02 (b) The license cards shall bear the name, license number, class of license, 03 photograph, signature, and identifying data of the licensee, and the signature of the 04 commissioner. 05 (c) A licensed private investigator shall carry the license card while 06 performing the duties of a private investigator and shall produce the card within 72 07 hours on request of an employee of the department. 08 (d) A licensed private investigator whose license is suspended or revoked shall 09 return the license card to the department within 10 days after the date of notification of 10 the suspension or revocation of the license. 11 (e) In the event of loss or destruction of a license card, the licensee may apply 12 to the department for a replacement card. 13 Sec. 08.85.220. Private investigator agency certificate. (a) A person may not 14 operate a private investigator agency without a private investigator agency certificate 15 issued under this section. 16 (b) The department shall issue to each private investigator agency that 17 qualifies under this section a certificate bearing the name of each of the agency's 18 licensees, the license numbers, the business name under which the agency is operating, 19 the authorized operating location of the business, the expiration date, and the signature 20 of the commissioner. An individual is not eligible for a certificate unless the individual 21 holds a class A license under this chapter. A partnership is not eligible for a certificate 22 unless each partner holds a class A license under this chapter. A corporation is not 23 eligible for a certificate unless the chief executive officer holds a class A license under 24 this chapter. To qualify for a certificate, the agency shall provide evidence satisfactory 25 to the department of the agency's possession of 26 (1) a current business license issued by the department and a municipal 27 license, if required; and 28 (2) either 29 (A) errors and omissions insurance of $100,000 or more; or 30 (B) possession of a corporate surety bond for not less than 31 $15,000.

01 (c) A private investigator agency certificate holder 02 (1) shall post and display the certificate in a conspicuous place in the 03 principal office of the certificate holder in the state; 04 (2) may not post the certificate on premises other than those described 05 in the certificate; 06 (3) may not materially alter a certificate; 07 (4) shall include the agency's certificate number in any advertisement 08 by the agency; and 09 (5) shall notify the department within 30 days after a change in the 10 agency's officers, directors, or partners, or a material change in the information 11 furnished to the department. 12 (d) A certificate issued under this section may not be assigned or transferred 13 without prior written approval of the department. 14 (e) A person who knowingly violates (a) or (c) of this section is guilty of a 15 class A misdemeanor. 16 Sec. 08.85.230. License renewal; nontransferability. (a) A license issued 17 under this chapter is nontransferable and, unless revoked or suspended, may be 18 renewed on a date set by the department upon proof of the licensee's continued 19 competency. 20 (b) A licensee shall apply for renewal and pay the renewal fee as established 21 by the department on or before the renewal date of the license. A licensee who fails to 22 pay the renewal fee by the renewal date set by the department may, within 30 days, 23 pay the renewal fee plus a penalty in an amount to be established by the department 24 that is not more than twice the amount of the renewal fee. 25 (c) If a licensee fails to pay the renewal fee, with accrued penalty, within 30 26 days after the renewal date, the license terminates. The person may reapply under 27 AS 08.85.140 or 08.85.150. 28 (d) Before renewing a license, the department may request criminal history 29 information from the Department of Public Safety. Every third time a licensee applies 30 for renewal, the department shall require the licensee to submit the fingerprints and 31 fees required by AS 12.62.160 for criminal justice information and a national criminal

01 history record check. The department may not renew the license of a licensee who 02 does not meet the requirements of AS 08.85.120. 03 Sec. 08.85.240. Firearms training. A licensee may not carry a firearm while 04 practicing as a private investigator unless the licensee provides proof to the 05 department that the licensee 06 (1) has successfully completed firearms training acceptable to the 07 department; 08 (2) has successfully completed a handgun course approved by the 09 Department of Public Safety under AS 18.65.715; and 10 (3) maintains a permit to carry a concealed handgun under 11 AS 18.65.700 - 18.65.790. 12 Sec. 08.85.250. Confidentiality of licensee's personal identifying 13 information. A licensee's residential address, residential telephone number, electronic 14 mail address, social security number, photograph, and other personal identifying 15 information disclosed under AS 08.85.160 are confidential and not subject to 16 disclosure under AS 40.25.110 - 40.25.220 unless written consent is provided by the 17 licensee. 18 Sec. 08.85.260. Prohibited practices. The department may impose the 19 disciplinary sanctions authorized for boards under AS 08.01.075 or refuse to issue a 20 license under this chapter when it finds that the licensee or the applicant 21 (1) knowingly violated a provision of this chapter or a regulation 22 adopted under this chapter; 23 (2) accepted employment that the licensee under this chapter knows to 24 include gathering information intended for illegal purposes; 25 (3) knowingly made a material misstatement or omission in the 26 application for or renewal of a license, including falsifying requested identification 27 information; 28 (4) violated AS 11.56.827 or 11.56.830 or otherwise caused another 29 person to reasonably believe that the private investigator is an agent or employee of 30 the state, the United States, or a political subdivision of the state or United States by 31 (A) wearing a uniform or presenting or displaying a badge or

01 credentials that would cause a reasonable person to believe that the person has 02 official authority as a state, federal, or municipal representative or law 03 enforcement officer; 04 (B) displaying warning or flashing vehicle lights; or 05 (C) committing an act or making a statement intended to 06 convey official status; 07 (5) has been convicted of a crime that directly relates to the business 08 for which the license is held or sought, regardless of whether a sentence was 09 suspended; a conviction based on a plea of nolo contendere creates a rebuttable 10 presumption of guilt as to the underlying charges, and the department shall allow the 11 individual being disciplined or denied a license under this chapter to present any 12 mitigating evidence relevant to the reason for or circumstances surrounding the plea; 13 (6) solicited business for an attorney in return for compensation; 14 (7) failed to cooperate with the department by 15 (A) not furnishing necessary papers or documents requested for 16 purposes of conducting an investigation for disciplinary action, denial, 17 suspension, or revocation of a license under this chapter; 18 (B) not furnishing in writing a full and complete explanation 19 covering the matter contained in a complaint filed with the department; or 20 (C) not responding to a subpoena issued by the department, 21 regardless of whether the recipient of the subpoena is the accused in the 22 proceeding; or 23 (8) failed to comply with an order issued by the department. 24 Sec. 08.85.270. Immunity for complainants. An action may not be brought 25 against a person for damages resulting from a complaint filed in good faith with the 26 department about a person licensed or certified under this chapter. 27 Sec. 08.85.280. Administrative Procedure Act. AS 44.62 (Administrative 28 Procedure Act) governs regulations and proceedings under this chapter. 29 Sec. 08.85.300. Exemptions. The licensing requirements of this chapter do not 30 apply to 31 (1) a person who is employed exclusively or regularly by one

01 employer that is not a private investigator agency and who performs investigations 02 solely in connection with the affairs of that employer; 03 (2) an officer or employee of the United States, a political subdivision 04 of the United States, this state, or a political subdivision of this state, while engaged in 05 the performance of the officer's or employee's official duties; 06 (3) a person engaged exclusively in the business of obtaining and 07 furnishing information about the financial rating of persons; 08 (4) an attorney, while performing duties as an attorney; 09 (5) a licensed collection agency, or its employee while acting within 10 the scope of that person's employment and making an investigation incidental to the 11 business of the agency; 12 (6) an insurer, insurance agent, or insurance broker licensed by the 13 state, while performing duties in connection with insurance transacted by the insurer, 14 insurance agent, or insurance broker; 15 (7) an employee of a bank subject to the jurisdiction of the department 16 or the United States Comptroller of the Currency, or a savings and loan association 17 subject to the jurisdiction of this state or the Federal Home Loan Bank Board while 18 acting within the scope of that person's employment; 19 (8) a licensed insurance adjuster performing the adjuster's duties within 20 the scope of the adjuster's license; 21 (9) a secured creditor engaged in the repossession of the creditor's 22 collateral or a lessor engaged in the repossession of leased property in which the lessor 23 claims an interest; 24 (10) a forensic scientist or an accident reconstructionist who is 25 engaged exclusively in collecting and analyzing physical evidence and data relating to 26 an accident or other matter and compiling the evidence or data to render an opinion of 27 likely cause, fault, or circumstance of the accident or matter, and who does not hold 28 out to be an investigator in any other capacity; 29 (11) a person solely engaged in the business of securing information 30 about persons or property from public records; 31 (12) a person solely engaged in the business of pre-employment

01 background screenings; 02 (13) a member or employee of the news media, while engaged in 03 obtaining information for the purpose of disseminating news to the public; 04 (14) a person who has a private investigator license or the equivalent 05 from another jurisdiction who 06 (A) registers with the department before acting as a private 07 investigator in the state; 08 (B) acts as a private investigator in the state for less than 30 09 days in a calendar year; 10 (C) demonstrates to the satisfaction of the department that the 11 license requirements of the other jurisdiction are at least as restrictive as this 12 state's requirements; and 13 (D) demonstrates to the satisfaction of the department that the 14 other jurisdiction allows licensees from this state to operate in the other 15 jurisdiction; 16 (15) a private process server who is licensed in this state and is 17 performing duties under the Alaska Rules of Court; 18 (16) a paralegal in the employ of an attorney or law firm, while 19 performing paralegal services on behalf of the attorney or law firm; 20 (17) a person who, for hire, or otherwise, conducts genealogical 21 research and does not represent that the person is a private investigator; and 22 (18) a person conducting an investigation to determine the cause of a 23 fire, explosion, or accident. 24 Sec. 08.85.310. Definitions. In this chapter, 25 (1) "commissioner" means the commissioner of commerce, 26 community, and economic development; 27 (2) "department" means the Department of Commerce, Community, 28 and Economic Development. 29 * Sec. 3. AS 12.62.400 is amended by adding a new paragraph to read: 30 (18) licensure as a private investigator under AS 08.85. 31 * Sec. 4. AS 44.62.330(a) is amended by adding a new paragraph to read:

01 (46) Department of Commerce, Community, and Economic 02 Development concerning the licensing and regulation of private investigators under 03 AS 08.85. 04 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITIONAL PROVISIONS. (a) An individual who, before July 1, 2015, was 07 licensed as a private investigator or private investigator agency by a political subdivision of 08 this state or who, before July 1, 2015, held a current business license from the state for a 09 private investigator business shall be issued a private investigator class A license by the 10 department if the person 11 (1) meets the qualifications of AS 08.85.120, enacted by sec. 2 of this Act; 12 (2) provides evidence satisfactory to the department that the person has 13 performed 1,500 hours or more of private investigation work in the business for which the 14 person holds a license; 15 (3) completes the application process required under AS 08.85.160, enacted 16 by sec. 2 of this Act; and 17 (4) pays the required fees. 18 (b) A person who does not meet the requirements of (a) of this section and, before 19 July 1, 2015, was a private investigator employed by a person who satisfied the requirements 20 of (a) of this section shall be issued a private investigator class B license by the department if 21 the person 22 (1) meets the qualifications of AS 08.85.120, enacted by sec. 2 of this Act; 23 (2) completes the application process required under AS 08.85.160, enacted 24 by sec. 2 of this Act; and 25 (3) pays the required fees. 26 (c) A person licensed under this section shall comply with license renewal 27 requirements under AS 08.85.230, enacted by sec. 2 of this Act. 28 (d) In this section, "department" means the Department of Commerce, Community, 29 and Economic Development. 30 * Sec. 6. This Act takes effect July 1, 2015.