AN ACT Relating to private detective agencies, their principals, and private detective operatives; adding a new chapter to Title 19 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise:

(1) "Private detective agency" means the business of or the representation of being engaged in the making of any investigation with reference to:

(a) Detecting, discovering, or revealing crime or criminals, or secured information relating thereto;

(b) The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of any person, firm, corporation, or thing;

(d) The cause or responsibility for fires, libels, losses, accidents, or damage or injury to persons or to property;

(e) Securing evidence to be used before any court, board, officer, or investigative committee;

(f) The truth or falsity of any statement or representation.

(2) "The principal of a private detective agency" means the owner or manager appointed by a corporation.

(3) "Private detective operative" means any person employed by any detective agency for the purpose of investigation.

(4) "Director" means the director of licensing.

(5) "Board" means the board of registration and control of private detectives.

NEW SECTION. Sec. 2. (1) It shall be unlawful for any person who has not been licensed according to this chapter to engage in, or advertise, or hold himself out as being a private detective.

(2) Any person who engages in any business regulated by this chapter, who acts as or represents himself to be a licensee under this chapter, who falsely represents that the person is employed by a licensee, or who carries a badge, identification card, or business card, or uses a letterhead or advertises that the person is a licensee under this chapter, is guilty of a misdemeanor and shall be punishable by a fine of one thousand dollars, or by imprisonment in the county jail for a period of not more than one year, or both such fine and imprisonment.

(3) The director shall investigate to obtain evidence of violations of this chapter and of any rule or regulation established pursuant to this chapter by persons engaged in the business of private investigator who fail to obtain licenses. The director shall furnish such evidence to prosecuting officers of any county or city for the purpose of prosecuting all violations occurring within their jurisdiction.

(4) This chapter does not apply to:

(a) A person employed exclusively and regularly by one employer who performs investigations in connection with the affairs of such employer;

(b) An officer or employee of the United States, or of this state, or a political subdivision thereof, while such officer or employee is engaged in the performance of the officer's official duties;

(c) A person engaged exclusively in the business of obtaining and furnishing information as to the financial rating of persons;

(d) An attorney at law in performing the attorney's duties as such;

(e) A licensed collection agency or an employee thereof while acting within the scope of that person's employment, while making an investigation incidental to the business of the agency;

(f) Insurers and agents and insurance brokers licensed by the state, performing duties in connection with insurance transacted by them;

(g) Any bank subject to the jurisdiction of the Washington state banking commission or the comptroller of currency of the United States, or any savings and loan association subject to the jurisdiction of this state or the federal home loan bank board;

(h) A licensed insurance adjuster in performing the adjuster's duties within the scope of the adjuster's license as an insurance adjuster;

(i) Any secured creditor engaged in the repossession of such creditor's collateral and any lessor engaged in the repossession of leased property in which it claims an interest;

(j) A peace officer of this state or a political subdivision thereof while such peace officer is employed by a private employer to engage in off-duty employment approved by the chief law enforcement officer of the jurisdiction where the employment takes place, provided that the officer is in a uniform of a public law enforcement agency. However, nothing herein shall exempt such peace officer who contracts for the officer's services or the services of others as a private investigator;

(k) A person solely engaged in the business of securing information about persons or property from public records;

(l) Private patrol services, private security agencies, or private guards who are in the business or occupation of preventing theft or the unlawful taking of goods, wares, and merchandise, by patrolling one or more premises or business houses on foot or by vehicle.

NEW SECTION. Sec. 3. There is hereby established a board of registration and control of private detectives consisting of three members to be appointed by the governor. The first member shall be a member of the Washington state bar association presently engaged in private practice; the second shall be selected from the private sector at large; and the third from the Washington state professional organization representing licensed private investigators. For the initial board, the first appointee shall serve for a period of one year, the second appointee shall serve for a period of two years, and the third appointee for a period of three years. Thereafter, members shall each serve a three-year term. The governor shall designate the chairman, and may remove any member of the board for cause. Any vacancy on the board shall be filled by the governor for the unexpired term. Members of the board shall be reimbursed for actual necessary travel expenses as provided in RCW 43.03.050 and 43.03.060 and other necessary expenses incurred in the performance of their official duties but shall receive no compensation for services. The board shall meet in March and September of each year on dates designated by the chairman and at such other times as a majority of the board shall request. Meetings shall be held in Olympia unless the majority of the board shall designate another place. The board may call a special meeting for the initial organization of the board. A majority of the board shall constitute a quorum for the transaction of any business. The board shall have the right to implement this chapter by adoption of rules and regulations as deemed necessary to facilitate the general purposes of this chapter. The board shall exercise general supervision over the administration of this chapter by the director who shall have administrative responsibilities for its enforcement. The board shall have the authority to adopt codes of ethical conduct for licensees.

NEW SECTION. Sec. 4. Every application for a detective agency license, private detective operative license, or for renewal thereof shall be made upon blanks furnished by the director in such form as the board shall require and shall include the following information:

(1) The full name and business address of the applicant.

(2) The name under which the applicant intends to do business.

(3) A statement as to the classification or classifications under which the applicant desires to be qualified.

(4) A verified statement of the applicant's experience qualifications.

(5) If the applicant is an individual, a qualified manager, partner of a partnership, or officer of a corporation designated in subsection (8) of this section, a personal identification form provided by the board shall be included in the application. The personal identification form shall contain: (a) A photograph taken within one year immediately preceding the date of the filing of the application; (b) a full set of fingerprints, on a form approved by the department of corrections; (c) a personal description of the applicant; (d) the residence addresses and employment history for the previous five years; and (e) the signature of the applicant verifying the truth of the information provided under penalty of perjury.

(6) If the applicant is an individual, the application shall list all other names known as or used by the applicant during the past ten years, and state that the applicant is to be personally and actively in charge of the business for which the license is sought. If any other qualified manager is to be actively in charge of the business, the application shall be verified and signed by the applicant and any other person who is to be actively in charge of the business verifying the truth of the information provided under penalty of perjury.

(7) If the applicants for a license are copartners, the application shall state the true names and addresses of all partners and the name of the partner to be actively in charge of the business for which the license is sought. The application shall list all other names known as or used by the applicants during the past ten years, and be signed by all of the partners verifying the truth of the information provided under penalty of perjury. If any person is to be actively in charge of the business other than a partner, the application shall also be signed by that person.

(8) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of the chief executive officer, chief operating officer, and chief financial officer of the corporation. The application shall also state the name and address of the designated person to be actively in charge of the business for which the license is sought. The application shall be signed by a duly authorized officer verifying the truth of the information provided of the applicant and by the qualified manager thereof, under penalty of perjury.

(9) Such additional information, evidence, statements, or documents as may be required by the director.

NEW SECTION. Sec. 5. Before a license is granted for a private detective agency, the applicant or the applicant's manager, shall meet all of the following:

(1) Be at least twenty-one years of age;

(2) Have not been convicted of any felony;

(3) Pass an examination conducted by the board; and

(4) Have had at least three years' experience in investigative work or the equivalent thereof as determined by the board. A year's experience shall consist of not less than two thousand hours of actual compensated work performed by each applicant preceding the filing of an application. An applicant shall substantiate the claimed years of qualifying experience and the exact details as to the character and nature thereof by written certifications from the employer, subject to independent verification by the board as the board may determine. In the event of inability of an applicant to supply the written certifications from the employer in whole or in part, applicants may offer other written certifications from other than employers substantiating employment for consideration by the board.

NEW SECTION. Sec. 6. Before a license is granted for a private detective operative, the applicant shall meet all of the following:

(1) Be at least eighteen years of age;

(2) Have not been convicted of any felony; and

(3) Have been employed by a licensed investigative agency.

NEW SECTION. Sec. 7. Every detective agency application shall be forwarded in writing to the director who shall notify each member of the board of the application. The board may request from the applicant such additional information as it may deem necessary to reach a decision on the applicant's eligibility for a license. Upon receipt of the application from the director, the board shall investigate the applicant's character and background and a majority of the board shall personally interview each applicant for the purpose of evaluating the applicant's skill, ability, experience, and integrity as a prospective licensee. The board shall advise any applicant within sixty days of receipt of an application of its approval or disapproval. If the application is accepted the board shall notify the director of such acceptance and the director, upon receipt of the proper fee shall issue a detective agency license as indicated by the board. The director shall, upon receipt of the proper fees, automatically without review issue yearly renewal of the license unless notified by the board that such license has been denied, suspended, or revoked by the board.

NEW SECTION. Sec. 8. Examinations for private detective agency licenses shall be conducted by the board on dates and at locations to be designated by the board at least thirty days in advance. Applications for examinations must be on file at least fifteen days prior to the examination date and shall be accompanied by an application fee of twenty dollars. Examination may be either written or oral or a combination of both and shall be practical in nature. Examinations shall be devised to determine that the applicant is reasonably conversant in subjects related to the satisfactory conduct of the private detective business.

NEW SECTION. Sec. 9. The private detective operative shall not be allowed under this license to solicit, for the operative, business for the purpose of investigation. Each and any private detective agency employing the private detective operative shall be responsible for the operative's actions while actively employed by the agency.

NEW SECTION. Sec. 10. No examination or interview of the private detective operative will be made by the board, unless the board requests an examination of the applicant.

NEW SECTION. Sec. 11. The fee prescribed under section 13 of this act for all licenses shall be the same for the entire year or a fraction thereof and no other investigative license or fee shall be required of a licensee by any city, county, town, or political subdivision.

NEW SECTION. Sec. 12. All sums received from licenses, applications, registration fees, and other sources shall be transmitted to the state treasurer for deposit into the state general fund. All costs related to the administration of this chapter shall be appropriated from the state general fund pursuant to RCW 19.02.080.

NEW SECTION. Sec. 13. Annual license fees for private detective agencies and private detective operatives shall be set by the board in an amount sufficient to administer this chapter.

NEW SECTION. Sec. 14. No license issued under this chapter shall be assignable.

NEW SECTION. Sec. 15. Licenses once issued may be renewed upon payment of the required annual license fee, except that whenever any license shall not be renewed for two successive years, the board may require the applicant to become licensed only after examination.

NEW SECTION. Sec. 16. The director or the board may, upon their own motion, and shall upon the complaint of any person, investigate the actions of any licensee claimed to be in violation of any provision of this chapter. No complaints shall be held to be sufficient basis for the denial, revocation, or suspension unless it is specified in detail the charge made against the licensee. After determining that there has been a wilful violation of this chapter, the attorney general may at the request of the board institute injunction proceedings to prevent the licensee from continuing to operate.

NEW SECTION. Sec. 17. The board may suspend, revoke, or refuse to renew or grant any license issued or applied for after a hearing. The board shall before denying for cause any application for license or renewal or before suspending or revoking any license, give to the applicant or licensee an opportunity to be heard. Hearings shall be conducted pursuant to chapter 34.04 RCW.

NEW SECTION. Sec. 18. It shall be unlawful for any person who is or has been an employee of any detective agency to divulge to any person other than the person's employer, except as the employer may direct or as required by law, any information acquired by the person during such employment with respect to any work to which the person or any other employees of the agency shall be then assigned by such company, with respect to any of the work, business, or affairs of the agency.

NEW SECTION. Sec. 19. The board may deny, suspend, or revoke any license on the following grounds:

(1) Knowingly make a false statement relating to evidence or information obtained in the course of employment or knowingly publish a slander or libel in the course of business;

(2) Use of illegal means in the collection or attempted collection of a debt or obligation;

(3) Manufacture of evidence;

(4) Acceptance of employment adverse to a client or from a client relating to the matter with respect to which a licensee has obtained confidential information by reason of or in the course of the licensee's employment by such client or former client;

(5) Material misstatement in the application for a license or the application for a renewal license;

(6) Conviction of a felony or a misdemeanor involving moral turpitude;

(7) Wilful misrepresentations or printing of any false or misleading advertisements for the purpose of directly or indirectly obtaining business;

(8) Allowing one's license to be used by an unlicensed person.

NEW SECTION. Sec. 20. (1) Any private detective agency principal or duly authorized manager, who upon proof within thirty days of the effective date of this section, has actually engaged in the occupation, business, or profession as a private detective agency for a period of at least eighteen consecutive months prior to and including the date of application, shall upon application and payment of the required license fee, be issued a license without completion of the formal requirements set forth in this chapter.

(2) Proof as required by subsection (1) of this section shall be valid by filing a copy of a detective agency license and bond as required by the municipality or county of the applicant. Applicants with agencies based in counties, cities, towns, or municipalities without current detective agency licensing requirements may provide proof in the form of state of Washington department of revenue registration certificates.

NEW SECTION. Sec. 21. Every advertisement by a licensee soliciting or advertising business shall contain his or her name, address, and license number as they appear in the records of the board. The director may adopt regulations defining the term "advertisement" as used in this section.

NEW SECTION. Sec. 22. (1) Every licensee and qualified manager who in the course of his or her employment or business who carries a deadly weapon shall complete a course of training in the carrying and use of firearms.

(2) Firearms instructors must meet the minimum qualifications as set by the Washington state criminal justice training commission.

NEW SECTION. Sec. 23. (1) No private detective agency license shall be issued under the provisions of this chapter unless the applicant files with the director a surety bond executed by a surety company authorized to do business in this state in the sum of five thousand dollars conditioned to recover against the principal, its servants, officers, agents, and employees by reason of its wrongful or illegal acts in conducting business licensed under the provisions of this chapter. The bond required by this chapter shall be made payable to the state of Washington, and anyone so injured by the principal, its servants, officers, agents, and employees, shall have the right and shall be permitted to sue directly upon this obligation in their own names. This obligation shall be subject to successive suits for recovery until complete exhaustion of the face amount thereof.

(2) Every licensee shall at all times maintain on file with the director the surety bond required by this chapter in full force and effect and upon failure to do so, the license of such licensee shall be suspended and shall not be reinstated until this requirement is met.

NEW SECTION. Sec. 24. Sections 1 through 23 of this act shall constitute a new chapter in Title 19 RCW.