SENATE BILL REPORT

HB 2534

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Commerce & Labor, February 28, 2014

Title: An act relating to fingerprint-based background checks for licensing of vehicle dealers and security guards.

Brief Description: Requiring fingerprint background checks for the licensing of vehicle dealers and security guards.

Sponsors: Representative Kirby; by request of Department of Licensing.

Brief History: Passed House: 2/17/14, 59-37.

Committee Activity: Commerce & Labor: 2/24/14, 2/28/14 [DP, DNP].

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report: Do pass.

Signed by Senators Braun, Vice Chair; Conway, Ranking Member; Hasegawa, Hewitt, King and Kohl-Welles.

Minority Report: Do not pass.

Signed by Senator Holmquist Newbry, Chair.

Staff: Jessica Stevenson (786-7465)

Background: The Department of Licensing (DOL) regulates licenses for security guards, security companies, and vehicle dealers.

An applicant for a private security license must:

An applicant for an armed private security guard license must:

The director of DOL must investigate whether the information in an application is true. For private security guard and armed private security guard licenses, the director must ask the Washington State Patrol (WSP) to compare the applicant's fingerprints to WSP's fingerprint records. For armed private security guard licenses, WSP must forward the applicant's fingerprints to the Federal Bureau of Investigation (FBI) for a national criminal history records check.

An application for a vehicle dealer license must contain the following:

Applications for manufacturer licenses must contain the following:

Vehicle dealer and manufacturer licenses expire 12 months after issuance, and the licensee must annually renew the license by filing an application for renewal.

Summary of Bill: WSP must forward the fingerprints of applicants for any private security guard license to the Federal Bureau of Investigation (FBI) for a national criminal history records check.

As of January 1, 2015, applicants for an initial vehicle dealer or manufacturer license must have a fingerprint-based background checks through the WSP Criminal Identification System and the FBI. The director of DOL may require all current vehicle dealer and manufacturer licensees to have fingerprint-based background checks through the WSP Criminal Identification System and the FBI when the licensee applies for renewal on or after January 1, 2015. Upon renewal, the director may require all licensees to submit proof of identity, including fingerprints, with their renewal application.

The director may periodically check the background of licensees. The applicant must pay the current federal and state fees for fingerprint-based criminal history background checks.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: The bill was requested by DOL. There are new federal requirements for fingerprints in background checks, but DOL does not have the statutory authority to do it. In July 2012, the FBI in an audit told DOL that they did not have the proper statutory authority to do national security checks for unarmed security guards, but did have the authority for armed security guards. Applicants for security guard licenses would not have to pay an additional fee for the background check because it is included in the current application fee. Fingerprints are already collected for vehicle dealer licenses, but DOL does not have the statutory authority to submit them for the national background check. The auto dealer association is supportive, and DOL has reached out to the security guard industry.

Persons Testifying: PRO: Representative Kirby, prime sponsor; Tony Sermonti, DOL.