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

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 an individual, partnership, or corporation in the business of the making of, or representing being engaged in the making of, any investigation. Activities of a private detective agency include the following functions:

(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" and "private investigator" mean any person employed by any detective agency for the purpose of investigation.

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

(5) "Board" means the advisory board regulating private detectives.

(6) "Department" means the department of licensing.

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

(2) Any unlicensed person who acts as or represents himself or herself to be a licensee under this chapter, who falsely represents employment by a licensee, or who misrepresents himself or herself by use of a misleading badge, identification card, business card, letterhead, or advertisements, is guilty of a misdemeanor 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 under this chapter by unlicensed persons. The director shall furnish such evidence to prosecuting officers of the appropriate county or city for the purpose of prosecution.

NEW SECTION. Sec. 3. This chapter does not apply to:

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

(2) 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;

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

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

(5) 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;

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

(7) 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;

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

(9) 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;

(10) 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, if 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;

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

(12) 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. 4. There is hereby established an advisory board regulating private detectives consisting of three members to be appointed by the director. One member unaffiliated with the private detective industry shall be selected to represent the public. Two members shall be members of a Washington state professional organization of private investigators with a minimum of five years' experience in investigation for the initial appointments; thereafter, the professional positions will be filled by the appointment of licensed private detectives having a minimum of five years' experience in investigations. 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. No member shall serve for more than two terms. The director may remove any member of the board for cause. Any vacancy on the board shall be filled by the director for the unexpired term. Members of the board shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060. The board shall meet at the request of the director to advise the director on the implementation and administration of this chapter. The director shall have the authority to adopt regulations and codes of ethical conduct for licensees which may include proof of competency in areas of practice.

NEW SECTION. Sec. 5. Every application for a detective agency license, private detective license, or for renewal thereof, shall be made upon forms furnished by the director which 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 verified statement of the applicant's experience qualifications.

(4) If the applicant is an individual, a qualified manager, partner of a partnership, or officer of a corporation, a personal identification form provided by the director shall be completed. 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; (c) a physical 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.

(5) If the applicant for an agency license is a sole proprietor, the application shall list all other names by which the applicant was known or which were used by the applicant during the past ten years, and identify if the applicant is to be personally and actively in charge of the business for which the license is sought or if any other 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.

(6) If the applicants for an agency 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 by which the applicants were known or which were 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.

(7) If the applicant for an agency 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 manager thereof, under penalty of perjury.

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

NEW SECTION. Sec. 6. The private detective agency license will license the agency owner, manager, partners, or corporation officers and no private detective license will be required for these persons. 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 in the last ten years consistent with RCW 9.96A.020;

(3) Have had at least three years' experience in investigative work or the equivalent thereof as determined by the director. A year's experience shall consist of not less than two thousand hours of actual compensated work performed by each applicant. 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 verification as required by the director. 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 director; and

(4) Meet the surety bond requirements under section 22 of this act.

NEW SECTION. Sec. 7. Before a license is granted for a private detective, the applicant shall meet all of the following:

(1) Be at least eighteen years of age;

(2) Be a resident of the state of Washington, and either be a United States citizen or be in possession of documentation issued by the immigration and naturalization service that he or she is legally able to be employed in the United States;

(3) Have not been convicted of any felony in the last ten years consistent with RCW 9.96A.020; and

(4) Be employed by a licensed investigative agency.

NEW SECTION. Sec. 8. Every detective agency and private detective application shall be submitted in writing to the director. The director may request from the applicant such additional information as necessary to determine the applicant's eligibility for a license.

NEW SECTION. Sec. 9. The private detective employee shall not solicit business other than on behalf of the employing private detective agency.

NEW SECTION. Sec. 10. (1) The provisions of this chapter relating to the licensing and regulation of private detectives shall be exclusive and no county, city, or other political subdivision of this state shall enact any laws or rules and regulations licensing or regulating private detectives or private detective agencies.

(2) This section shall not be construed to prevent a political subdivision of this state from levying a business and occupation tax upon detective agencies maintaining an office within that political subdivision if a business and occupation tax is levied by it upon other types of businesses within its boundaries.

NEW SECTION. Sec. 11. Fees shall be set in accordance with RCW 43.24.086 and all sums received from the administration of this chapter shall be transmitted to the state treasurer for deposit into the state general fund.

NEW SECTION. Sec. 12. All fees related to the licensure of private detective agencies and private detectives shall be set by the director in amounts sufficient to administer this chapter under RCW 43.24.086.

NEW SECTION. Sec. 13. (1) No license issued under this chapter shall be assignable.

(2) The department shall issue laminated photo identification to each licensee. Such cards shall include: (a) The seal of the state of Washington; (b) the licensee's photograph; (c) a license or other unique number; (d) the licensee's signature; and (e) the license expiration date.

NEW SECTION. Sec. 14. Private detective agency licenses shall expire on December 31 of each year. Private detective licenses shall expire on the birth dates of the individuals holding such licenses. Licenses may be renewed upon payment of the required annual license fee, except that whenever any license shall not be renewed before the expiration date, the applicant may become licensed only after payment of all fees and penalties accrued for each year unlicensed. Failure to renew shall invalidate the license and all privileges granted by the license.

NEW SECTION. Sec. 15. 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 detective agency 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. 16. The director may take disciplinary action against any licensee 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 with a client for whom 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) Willful 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. 17. (1) The director may initiate and conduct investigations as may be reasonably necessary to establish the existence of any alleged violations of or noncompliance with the provisions of this chapter or any rules and regulations issued hereunder. For the purpose of any investigation or proceeding under this chapter, the director or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the director deems relevant or material to the inquiry.

(2) If any individual fails to obey a subpoena or obeys a subpoena but refuses to give evidence, any court of competent jurisdiction, upon application by the director, may issue to that person an order requiring the individual to appear before the court, to show cause why he or she should not be compelled to obey the subpoena, and give evidence material to the matter under investigation. The failure to obey an order of the court may be punishable as contempt.

NEW SECTION. Sec. 18. If, following a hearing, the director finds that an applicant or licensee has violated any provision of this chapter or any rule adopted under it, the director may impose one or more of the following penalties:

(1) Denial of a license or renewal;

(2) Revocation or suspension of a license;

(3) A fine of not more than five hundred dollars per violation;

(4) Issuance of a reprimand or letter of censure;

(5) Placement of the licensee on probation for a fixed period of time;

(6) Restriction of the licensee's authorized scope of practice;

(7) Requiring the licensee to make restitution or a refund as determined by the director to any individual injured by the violation; or

(8) Requiring the licensee to obtain additional training or instruction.

NEW SECTION. Sec. 19. The director, members of the board, and individuals acting on their behalf are immune from suit in any action, civil or criminal, based on any acts performed in the course of their duties.

NEW SECTION. Sec. 20. (1) Any private detective agency principal or duly authorized manager, who upon proof of actual engagement in the occupation, business or profession as a private detective agency on the effective date of this section, and who otherwise meets the requirements for licensure under this chapter shall, upon application and payment of the required license fee, be issued a license. Applications filed under this section must be submitted to the department within six months of the effective date of this section.

(2) Proof as required by subsection (1) of this section shall be made 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 department. The director may adopt regulations defining the term "advertisement" as used in this section.

NEW SECTION. Sec. 22. Every licensee and manager who in the course of his or her employment or business carries a firearm shall complete a course of training in the carrying and safe use of firearms taught by a firearms instructor who meets the minimum qualifications as set by the Washington state criminal justice training commission.

NEW SECTION. Sec. 23. (1) Each agency applicant shall, at the time of applying for a license, file with the director a surety bond in the sum of five thousand dollars. The bond shall be annually renewable on January first of each year, shall be approved by the director as to form and content, and shall be executed by the applicant as principal and by a surety company authorized to do business in this state as surety. Such bond shall run to the state of Washington as obligee for the benefit of the state and conditioned that the licensee shall faithfully and truly perform all agreements entered into with the licensee's clients or customers and shall, within thirty days after the close of each calendar month, account to and pay to his client or customer the net proceeds of all collections made during the preceding calendar month and due to each client or customer less any offsets due licensee under RCW 19.16.210 and 19.16.220. The bond required by this section shall remain in effect until canceled by action of the surety or the licensee or the director.

(2) An agency applicant for a license under this chapter may furnish, file, and deposit with the director, in lieu of the surety bond provided for herein, a cash deposit or other negotiable security acceptable to the director. The security deposited with the director in lieu of the surety bond shall be returned to the licensee at the expiration of one year after the agency's license has expired or been revoked if no legal action has been instituted against the licensee or on said security deposit at the expiration of said one year.

(3) A surety may file with the director notice of his or its withdrawal on the bond of the licensee. Upon filing a new bond or upon the revocation of the agency license or upon the expiration of sixty days after the filing of notice of withdrawal as surety by the surety, the liability of the former surety for all future acts of the licensee shall terminate.

(4) The director shall immediately cancel the bond given by a surety company upon being advised that the surety company's license to transact business in this state has been revoked.

(5) Upon the filing with the director of notice by a surety of his withdrawal as the surety on the bond of a licensee or upon the cancellation by the director of the bond of a surety as provided in this section, the director shall immediately give notice to the licensee of the withdrawal or cancellation. The notice shall be sent to the licensee by registered or certified mail with request for a return receipt and addressed to the licensee at his or its main office as shown by the records of the director. At the expiration of thirty days from the date of mailing the notice, the license of the licensee shall be terminated, unless the licensee has filed a new bond with a surety satisfactory to the director.

(6) All bonds given under this chapter shall be filed and held in the office of the director.

(7) In addition to all other legal remedies, an action may be brought in any court of competent jurisdiction upon the bond or cash deposit or security in lieu thereof, required by this section, by any person to whom the licensee fails to account and pay as set forth in such bond or by any client or customer of the licensee who has been damaged by failure of the licensee to comply with all agreements entered into with such client or customer: PROVIDED, That the aggregate liability of the surety to all such clients or customers shall in no event exceed the sum of such bond.

An action upon such bond or security shall be commenced by serving and filing of the complaint within one year from the date of the cancellation of the bond or, in the case of a cash deposit or other security deposited in lieu of the surety bond, within one year of the date of expiration or revocation of license: PROVIDED, That no action shall be maintained upon such bond or such cash deposit or other security for any claim which has been barred by any nonclaim statute or statute of limitations of this state. Two copies of the complaint shall be served by registered or certified mail upon the director at the time the suit is started. Such service shall constitute service on the surety. The director shall transmit one of said copies of the complaint served on him to the surety within forty-eight hours after it shall have been received.

The director shall maintain a record, available for public inspection, of all suits commenced under this chapter upon surety bonds, or the cash or other security deposited in lieu thereof.

In the event of a judgment being entered against the deposit or security referred to in this section, the director shall, upon receipt of a certified copy of a final judgment, pay said judgment from the amount of the deposit or security.

NEW SECTION. Sec. 24. The provisions of this chapter are cumulative and nonexclusive and shall not affect any other remedy available at law.

NEW SECTION. Sec. 25. This chapter may be known and cited as the private investigators act.

NEW SECTION. Sec. 26. Sections 1 through 25 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 27. There is appropriated from the general fund to the department of licensing for the biennium ending June 30, 1991, the sum of eighty-one thousand five hundred sixty-seven dollars, or as much thereof as may be necessary, to carry out the purposes of this act.

NEW SECTION. Sec. 28. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 29. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.