H 4446 Session 109 (1991-1992)
H 4446 General Bill, By T.F. Rogers
A Bill to amend Title 40, Code of Laws of South Carolina, 1976, by adding
Chapter 16 so as to provide for the regulation of private investigators, to
create a State Board of Investigators and provide for its powers and duties,
to provide for the qualification of applicants and requirements of application
for private investigators, require a bond, provide for the issuance of
licenses and fees, registration and fees for employees of the private
investigator business, suspension and revocation of licenses, for reciprocity
agreements, and to provide penalties for violations; to amend Sections
40-17-20, 40-17-30, 40-17-70, and 40-17-120, all as amended, and Act 78 of
1991, relating to the regulation of private detective and private security
businesses, so as to delete all references to private detectives and private
detective businesses; provide for the continuation of licenses; to authorize
the existence of the State Board of Private Investigators for six years; and
to repeal Sections 40-17-55, 40-17-75, and 40-17-145 of the 1976 Code relating
to the regulation of a private detective.
02/25/92 House Introduced and read first time HJ-9
02/25/92 House Referred to Committee on Labor, Commerce and
Industry HJ-9
A BILL
TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING CHAPTER 16 SO AS TO PROVIDE FOR THE
REGULATION OF PRIVATE INVESTIGATORS, TO CREATE A
STATE BOARD OF INVESTIGATORS AND PROVIDE FOR ITS
POWERS AND DUTIES, TO PROVIDE FOR THE QUALIFICATION
OF APPLICANTS AND REQUIREMENTS OF APPLICATION FOR
PRIVATE INVESTIGATORS, REQUIRE A BOND, PROVIDE FOR
THE ISSUANCE OF LICENSES AND FEES, REGISTRATION AND
FEES FOR EMPLOYEES OF THE PRIVATE INVESTIGATOR
BUSINESS, SUSPENSION AND REVOCATION OF LICENSES, FOR
RECIPROCITY AGREEMENTS, AND TO PROVIDE PENALTIES
FOR VIOLATIONS; TO AMEND SECTIONS 40-17-20, 40-17-30,
40-17-70, AND 40-17-120, ALL AS AMENDED, AND ACT 78 OF
1991, RELATING TO THE REGULATION OF PRIVATE
DETECTIVE AND PRIVATE SECURITY BUSINESSES, SO AS TO
DELETE ALL REFERENCES TO PRIVATE DETECTIVES AND
PRIVATE DETECTIVE BUSINESSES; PROVIDE FOR THE
CONTINUATION OF LICENSES; TO AUTHORIZE THE
EXISTENCE OF THE STATE BOARD OF PRIVATE
INVESTIGATORS FOR SIX YEARS; AND TO REPEAL SECTIONS
40-17-55, 40-17-75, AND 40-17-145 OF THE 1976 CODE RELATING
TO THE REGULATION OF A PRIVATE DETECTIVE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 40 of the 1976 Code is amended by adding:
"CHAPTER 16
Private Investigators
Section 40-16-10. This chapter is known and may be cited as the
`South Carolina Private Investigators Act'.
Section 40-16-20. As used in this chapter, unless the context
otherwise requires:
(1) `Board' means the South Carolina Private Investigators
Board.
(2) `Operators' or `assistants' means persons employed by a
private investigator business to do work as a private investigator for his
employer.
(3) `Private investigator business' means engaging in the
business of or accepting employment to obtain or furnish information
with reference to:
(a) the identity, habits, conduct, business, occupation, honesty,
integrity, credibility, knowledge, trustworthiness, efficiency, loyalty,
activity, movement, whereabouts, affiliations, associations, transactions,
acts, reputation, or character of a person; or
(b) location, disposition, or recovery of lost or stolen
property; or
(c) cause or responsibility for fires, libels, losses, accidents,
damage, or injury to person or property; or
(d) securing evidence to be used before a civil or criminal
court, a board, an officer, or an investigating committee. Evidence of
criminal action or involvement must be reported by the registered private
investigator to the Chief of the South Carolina Law Enforcement
Division unless the information is protected as provided by law;
(e) private investigator business does not include persons
employed exclusively and regularly by only one employer in connection
with the affairs of the employer only and where there exists an
employer-employee relationship unless the employer is in the
investigator business.
Section 40-16-30. The board may:
(1) establish and enforce rules and regulations pertaining to
private investigator licensees and private investigator operators and
assistants;
(2) determine the qualifications of applicants for licenses or
registration under this chapter;
(3) investigate alleged violations of this chapter and
regulations promulgated by the board;
(4) regulate and oversee the conduct of private investigators;
(5) establish and enforce standards governing the safety and
conduct of persons licensed and registered under this chapter;
(6) provide training seminars for the purposes of training
individuals on the laws governing private investigators and the
responsibilities for private investigators and their employees and other
rules and requirements the board may establish by regulation;
(7) approve the curriculum for the training seminars;
(8) conduct background and criminal history investigations of
applicants through the proper authorities of this State;
(9) promulgate regulations necessary to carry out this chapter.
Section 40-16-40. The State Board of Private Investigators is
established. It shall consist of five members appointed by the Governor
for terms of four years, staggered for the first term, appointees to be
appointed for one-year, two-year, three-year, and four-year intervals
until successors are appointed and qualify. Successors are then
appointed for four-year intervals. The board members shall consist of
four private investigators, having each a minimum of five years
investigative experience, and one licensed staff investigator, having a
minimum of five years' experience. The appointees must be
representative of the Piedmont, Midland, and Coastal areas of the State.
The Governor may remove any member for good cause shown and
appoint a member to fill the unexpired term.
Section 40-16-50. Each board member shall receive for each day
actually engaged in the duties of his office a per diem not to exceed fifty
dollars plus actual expense for food and lodging and his actual mileage
at the rate prescribed for members of state boards, commissions, and
committees payable from revenues collected pursuant to the provisions
of this chapter.
Section 40-16-60. The board shall maintain a suitable office in
Columbia and shall adopt and use a common seal for the authentication
of its orders and records.
Section 40-16-70. (A) The board shall elect its own officers and
a full-time executive director. The executive director shall receive an
annual salary as well as all other expenses of the board, and must be paid
only out of the revenues collected under the provisions of this chapter.
The executive director shall keep and preserve all records of the board,
issue all necessary notices to the private investigators of the State, and
perform such other duties, clerical and otherwise, as may be imposed
upon the executive director by the board. The executive director shall
turn over, as required by law, all monies collected and render full,
itemized, and detailed reports as required by law. The executive director
shall, before entering the duties of his office, execute to the State a
satisfactory bond, with a duly licensed bonding company in this State,
as surety or with other acceptable surety, such bond to be in the penal
sum of not less than ten thousand dollars and conditioned upon the
faithful performance of the duties of his office.
(B) The board may employ such staff as it considers necessary to
carry out its functions as prescribed in this chapter subject to funds
available to the board.
Section 40-16-80. (A) A person or corporation desiring to carry
on a private investigator business in this State must obtain a license and
make a verified application in writing to the board for a license.
(B) The board may grant a license to a person who or corporation
who:
(1) is at least twenty-one years of age;
(2) is a citizen of the United States;
(3) has not been convicted of a felony or crime involving
moral turpitude;
(4) has not committed an act constituting dishonesty or fraud;
(5) who has not been convicted of driving under the influence
within the past five years, or is not a person with a record of mental
illness and has not been restored to legal capacity, or has not been
discharged from the military service under other than honorable
conditions.
(6) has had at least five years' experience as a private
investigator or with a licensed private investigative agency, or as a staff
legal investigator, or as an investigator of any federal, state, county, or
municipal law enforcement agency. This item is satisfied if he complies
with other requirements the board may establish by regulation.
(C) The application for a license must be made in writing, under
oath, on a form furnished by the board. It must state the applicant's full
name, age, date, place of birth, residences, and employment within the
past five years and his present occupation with the names and addresses
of employers, the date and place of conviction of a crime, and additional
information the board requires to investigate the qualification,
competency, and integrity of the applicant. The applicant shall submit
with the application one set of fingerprints on forms specified and
furnished by the board and a photograph in color, two inches wide by
three inches high, taken within six months before the application. The
application must contain additional information and documentation the
board may require by regulation.
Section 40-16-90. An applicant for a license to operate a private
investigator business shall post with the board a bond in favor of the
State with a minimum surety of fifty thousand dollars. All private
investigator agencies shall post this bond for each operator or assistant
employed by the agency. No bond may be accepted for filing unless it
is with a surety company authorized to do business in this State and
conditioned that the principal may not do an act meriting suspension or
revocation of his license under this chapter. In lieu of a bond, a cash
deposit, or general liability insurance, or other securities acceptable to
the board of fifty thousand dollars must be accepted. A person
aggrieved by an act of the principal named in the bond in violation of
this chapter may proceed on the bond against the principal or the surety,
or both, to recover damages. The aggregate liability of the surety for
breaches of the conditions of the bond may not exceed the amount of the
bond. The surety on the bond may cancel the bond upon giving thirty
days' notice to the board and is relieved of the liability for a breach of
condition after the effective date of cancellation.
Section 40-16-100. (A) Upon being satisfied, after investigation,
of the competency and integrity of an applicant or, if the applicant is an
association, partnership, or corporation, of the officers and certain
stockholders, the board shall grant a license to conduct the private
investigator business stated in the application. The license is for one
year and application for renewal must be on a form furnished by the
board.
(B) The initial and annual renewal license fee for conducting a
private investigator business must be promulgated by the board by
regulation.
(C) Immediately upon receipt of a license certificate issued by the
board pursuant to this chapter, the private investigator business licensee
shall post and at all times display the certificate in a conspicuous place
at his place of business. A copy or duplicate of the certificate must be
posted conspicuously at each branch office.
(D) A private investigator or a private investigator agency licensed
under the provisions of this chapter, shall provide the board the address
of each business location and branch office and notify the board of any
change of business address within thirty days of any change of address.
Section 40-16-110. (A)(1) Licensees may employ as many
operators and assistants considered necessary for the conduct of
business. The employees must be citizens of the United States and at
least eighteen years of age. Immediately upon hiring operators and
assistants, the licensee shall make application to register the employee
with the board. The application must be made on forms furnished by the
board under oath, the employee shall give his name, address, date and
place of birth, employment for the past five years, experience in the
position applied for, and convictions for violation of the law, and other
information the board may require by regulation, to investigate properly
the competency and integrity of the employee. The application for
registration must be accompanied by one set of fingerprints of the
employee and one photograph of the employee in color, two inches wide
by three inches high, full face, without head covering, taken within six
months before the application.
(2) No person may be approved for employment who has been
convicted of a crime involving moral turpitude that would tend to
question his honesty and integrity, who has been convicted of driving
under the influence within the past five years, or a person with a record
of mental illness and who has not been restored to legal capacity, has
been discharged from the military service under other than honorable
conditions, or has been refused a license under this chapter for other
than minimum experience, or whose license has been revoked or is
under suspension. Upon being satisfied of the suitability of the applicant
for employment and that the applicant has completed an acceptable
training program, the board shall register the employee and notify the
licensee. The licensee shall notify the board within five days of the
termination of employment of registered employees. The board may
waive the submission of fingerprints and photographs for an employee
who has been employed by a person licensed under this chapter within
the previous six months. Registration is for one year and application for
renewal must be on a form furnished by the board.
(B) The initial and annual renewal registration fee for an
employee registered in accordance with this section is fifty dollars.
(C) In order to insure compliance with this section, licensees shall
make employment records available for inspection by the board during
normal business hours.
Section 40-16-120. The board shall issue three types of licenses
which are:
(1) a private investigator license for an individual in the
private investigator business;
(2) a private investigator agency license for a private
investigator agency employing one or more employees;
(3) a private investigator agency employee registration for
private investigators employed by a private investigator agency on a
temporary or permanent basis.
Section 40-16-130. (A) The board, after hearing, may suspend or
permanently revoke a license or registration issued under this chapter if
it determines that the holder of the license or registration has:
(1) made a false statement or given false information in
connection with an application or renewal or reinstatement of a license
or registration;
(2) violated this chapter;
(3) violated a regulation promulgated by the board pursuant
to the authority in this chapter;
(4) been convicted of a felony or a crime involving moral
turpitude or involving the illegal use, carrying, or possession of a
dangerous weapon since becoming licensed or registered;
(5) committed an act in the course of the business constituting
dishonesty or fraud;
(6) impersonated or permitted or aided and abetted a person
to impersonate a law enforcement officer or employee of the United
States, this State, or its political subdivisions, or municipal corporations
since becoming licensed or registered;
(7) engaged in or permitted an employee to engage in the
private investigator business when not lawfully in possession of a valid
license or registration issued under this chapter;
(8) wilfully failed or refused to provide a written contract
outlining services to be provided and fees charged, or to render a client
service as agreed upon, or to provide a written report detailing
investigative hours worked and results of the investigation;
(9) convicted of an unlawful breaking or entering, assault,
battery, or kidnapping since becoming licensed or registered;
(10) knowingly violated or advised, encouraged, or assisted the
violation of a court order or injunction in the course of business;
(11) committed an act which is a ground for denial of an
application for license or registration under this chapter;
(12) undertake to give legal advice or counsel or to represent
that he is representing an attorney unless he is working directly with, and
for such an attorney in the investigation of a specific case and under
contract with such an attorney, and with the attorney's consent in
accordance with the rules and regulations governing attorneys of this
State.
(B) Pending the hearing in subsection (A), the board may revoke
or suspend a license or registration issued under this chapter when it has
good reason to believe that grounds for revocation exist.
(C) The revocation or suspension of a license or registration as in
subsection (A) must be in writing, signed by the chairman of the board,
stating the grounds upon which the revocation or suspension order is
based. The revocation or suspension by the board is conclusive and
binding as to all questions of fact. However, either party to the dispute,
within thirty days from the date of the revocation or suspension or
within thirty days after receipt of notice to be sent by registered mail of
the revocation or suspension, but not thereafter, may appeal from the
decision of the board to the court of common pleas of the county in
which the private investigator resides or has his principal office for
errors of law under the same terms and conditions as govern appeals in
ordinary civil actions.
Section 40-16-140. A private investigator registered under the
provisions of this chapter shall maintain copies of all written contracts
outlining services to be rendered for three years. These copies must be
available for inspection by the board during regular business hours.
Section 40-16-150. All proceeds received by the board as provided
for in this chapter must be used in the administration of the provisions
of it. If the board determines that more proceeds are collected than are
necessary for the administration of this chapter, it shall pay this surplus
fund to the State Treasurer to be deposited in the general fund of the
State.
Section 40-16-160. A person holding a valid private investigator's
license issued by a proper authority of a state, territory, or possession of
the United States or the District of Columbia, based on requirements and
qualifications similar to the requirements of this chapter, may be issued
a temporary permit to operate in this State for a period not to exceed
ninety days, provided that the person's licensing jurisdiction extends by
reciprocity similar privileges to a private investigator licensed by this
State. Any reciprocity agreement approved by the board shall provide
that any misconduct in the state issuing the temporary permit must be
dealt with in the licensing jurisdiction as though the violation occurred
in that jurisdiction. The board shall charge a fee not to exceed one
hundred dollars to cover the cost of administering this section.
Section 40-16-170. A person violating the provisions of this chapter
is guilty of a misdemeanor and, upon conviction, must be fined in an
amount not to exceed five thousand dollars or imprisoned for a term not
to exceed one year, or both."
SECTION 2. Section 40-17-20 of the 1976 Code, as last amended by
Act 78 of 1991, is further amended to read:
"Section 40-17-20. As used in this chapter, unless the context
otherwise requires:
(1) `Private detective business' means engaging in the business
of or accepting employment to obtain or furnish information with
reference to the:
(a) identity, habits, conduct, business, occupation, honesty,
integrity, credibility, knowledge, trustworthiness, efficiency, loyalty,
activity, movement, whereabouts, affiliations, associations,transactions,
acts, reputation, or character of a person;
(b) location, disposition, or recovery of lost or stolen
property;
(c) cause or responsibility for fires, libels, losses, accidents,
damage, or injury to persons or property; or
(d) securing evidence to be used before a civil court, a
board, an officer, or an investigating committee. Evidence of criminal
action or involvement must be reported by the registered private
detective to the Chief of the South Carolina Law Enforcement Division.
Private detective business does not include persons employed
exclusively and regularly by only one employer in connection with the
affairs of the employer only and where there exists an
employer-employee relationship unless the employer is in the detective
business.
(2)(1) `Private security business' means engaging in the
business as or accepting employment as a private patrol, watchman, or
guard service for consideration on a private contractual basis and not as
an employee. Private security business does not include persons
employed exclusively and regularly by only one employer in connection
with the affairs of the employer only and where there exists an
employer-employee relationship unless the employer is in the private
security business.
(3)(2) `Division' means the South Carolina Law
Enforcement Division."
SECTION 3. Section 40-17-30 of the 1976 Code, as last amended by
Act 78 of 1991, is further amended to read:
"Section 40-17-30. (A) The chief of the division has the
following powers and duties as they relate to the practice of private
security businesses:
(1) determine the qualifications of applicants for licenses or
registration under this chapter;
(2) investigate alleged violations of this chapter and
regulations promulgated by the division;
(3) promulgate regulations necessary in carrying out this
chapter;
(4) establish and enforce standards governing the safety and
conduct of persons licensed and registered under this chapter.
(5) provide training seminars for the purposes of training
individuals to be training officers and to train employees of or applicants
for employment with licenses to ensure that they have requisite
knowledge and skills necessary to the private security business. The fee
for attending such seminars shall be set by the designated training
facility and retained by that facility for the purpose of defraying the
costs of conducting the seminars;
(6) certify and register company training officers prior to their
training for private security agencies; and
(7) approve, with the advice and consent of the South Carolina
Criminal Justice Academy, the curriculum for the training seminars.
(B) Individuals who engage in the private detective business
are not required to be licensed but shall register with the division as
provided by this chapter. The chief of the division has the following
powers and duties as they relate to the practice of private detective
businesses:
(1) determine the eligibility of applicants for registration under
this chapter;
(2) investigate alleged violations of this chapter and
regulations promulgated by the division;
(3) promulgate regulations necessary to carry out this chapter.
(C)(B) All company training officers certified prior to
October 3, 1986, shall be are required to be recertified
within one year of enactment of this amendment."
SECTION 4. Section 40-17-70 of the 1976 Code, as last amended by
Act 78 of 1991, is further amended to read:
"Section 40-17-70. (A) Upon being satisfied, after
investigation, of the competency and integrity of an applicant or, if the
applicant is an association, partnership, or corporation, of the officers
and certain stockholders, the division may grant a license to conduct the
private security business stated in the application. However, this section
does not apply to persons licensed in accordance with Section 40-17-40.
The license is for one year and application for renewal must be on a
form furnished by the division.
(B) After investigation, if the division is satisfied with an
applicant's integrity, it shall register him to conduct a private detective
business. The initial and annual renewal registration fee for a private
detective must be set by the division by regulation.
(C)(B) The initial and annual renewal license fee for
conducting a private security business must be set by the division by
regulation.
(D)(C) Immediately upon the receipt of a license
certificate issued by the division pursuant to this chapter, the private
security business licensee shall post and at all times display the
certificate in a conspicuous place at his place of business. A copy or
duplicate of the certificate must be posted conspicuously at each branch
office."
SECTION 5. Section 40-17-120 of the 1976 Code, as last amended
by Act 78 of 1991, is further amended to read:
"Section 40-17-120. (A) Except as provided in
subsection (D), the The division may grant to a person
licensed or registered in accordance with this chapter a permit to carry
a pistol, revolver, or other firearm. Application for the permit must be
made on forms provided by the division, and the fee is twenty dollars a
year. The permit is for one year and application for renewal must be on
a form furnished by the division. The permit is not transferable.
(B) No person may be issued a permit until he has presented to
the division proof that he is proficient in the use of firearms and has
received a minimum of four hours' classroom instruction.
(C) A person engaged in the private security business or
registered in accordance with Section 40-17-80 and issued a permit in
accordance with this section may carry a firearm in an open and
fully-exposed manner only while on duty, in uniform, and going to and
from work. However, the division in its discretion may issue an
additional written permit to the person to carry the firearm about his
person, concealed or not, even though he is not in uniform nor on duty
if the division determines that the additional permit will enable the
permittee to perform his assigned duties better. No additional permit
may be issued to a permittee to be effective in a place where alcoholic
beverages, beer, or wine are sold or consumed.
(D) Permits for carrying firearms must not be issued to
persons registered as private detectives."
SECTION 6. In accordance with Section 1-20-60 of the 1976 Code,
the existence of the State Board of Private Investigators is authorized for
six years.
SECTION 7. A person currently registered as a private investigator
on the effective date of this act may continue to operate until the
expiration of his license. At that time he shall register pursuant to
Section 40-16-80 of the 1976 Code added by Section 1 of this act.
SECTION 8. Section 13 of Act 78 of 1991 and Sections 40-17-55,
40-17-75, and 40-17-145 of the 1976 Code are repealed.
SECTION 9. This act takes effect one hundred eighty days after
approval by the Governor.
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