By Oakley                                              H.B. No. 713
       74R1166 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of private investigators and private
    1-3  security agencies; creating a criminal penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 3(a), Private Investigators and Private
    1-6  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
    1-7  Statutes), is amended to read as follows:
    1-8        (a)  This Act does not apply to:
    1-9              (1)  a person employed exclusively and regularly by one
   1-10  employer in connection with the affairs of an employer only and
   1-11  where there exists an employer-employee relationship; provided,
   1-12  however, any person who shall carry a firearm in the course of his
   1-13  employment shall be required to obtain a private security officer
   1-14  commission under the provisions of this Act;
   1-15              (2)  except as provided by Subsection (d) of this
   1-16  Section, an officer or employee of the United States of America, or
   1-17  of this State or political subdivision of either, while the
   1-18  employee or officer is engaged in the performance of official
   1-19  duties;
   1-20              (3)  a person who has full-time employment as a peace
   1-21  officer as defined by Article 2.12, Code of Criminal Procedure, who
   1-22  receives compensation for private employment on an individual or an
   1-23  independent contractor basis as a patrolman, guard, or watchman if
   1-24  such person is:
    2-1                    (A)  employed in an employee-employer
    2-2  relationship; or
    2-3                    (B)  employed on an individual contractual basis;
    2-4                    (C)  not in the employ of another peace officer;
    2-5  and
    2-6                    (D)  not a reserve peace officer;
    2-7              (4)  a person engaged exclusively in the business of
    2-8  obtaining and furnishing information for purposes of credit
    2-9  worthiness or collecting debts or ascertaining the financial
   2-10  responsibility of applicants for property insurance and for
   2-11  indemnity or surety bonds, with respect to persons, firms, and
   2-12  corporations;
   2-13              (5)  an attorney engaged in the practice of law or an
   2-14  employee of the attorney or the attorney's law firm who is employed
   2-15  and paid only by the attorney or law firm <attorney-at-law in
   2-16  performing his duties>;
   2-17              (6)  admitted insurers, insurance adjusters, agents,
   2-18  and insurance brokers licensed by the State, performing duties in
   2-19  connection with insurance transacted by them;
   2-20              (7)  a person who engages exclusively in the business
   2-21  of repossessing property that is secured by a mortgage or other
   2-22  security interest;
   2-23              (8)  a locksmith who does not install or service
   2-24  detection devices, does not conduct investigations, and is not a
   2-25  security service contractor;
   2-26              (9)  a person who owns and installs burglar detection
   2-27  or alarm devices on his own property or, if he does not charge for
    3-1  the device or its installation, installs it for the protection of
    3-2  his personal property located on another's property, and does not
    3-3  install the devices as a normal business practice on the property
    3-4  of another;
    3-5              (10)  an employee of a cattle association who is
    3-6  engaged in inspection of brands of livestock under the authority
    3-7  granted to that cattle association by the Packers and Stockyards
    3-8  Division of the United States Department of Agriculture;
    3-9              (11)  the provisions of this Act shall not apply to
   3-10  common carriers by rail engaged in interstate commerce and
   3-11  regulated by state and federal authorities and transporting
   3-12  commodities essential to the national defense and to the general
   3-13  welfare and safety of the community;
   3-14              (12)  a registered professional engineer practicing in
   3-15  accordance with the provisions of the Texas Engineering Practice
   3-16  Act  that does not install or service detection devices, does not
   3-17  conduct investigations, and is not a security services contractor;
   3-18              (13)  a person whose sale of burglar alarm signal
   3-19  devices, burglary alarms, television cameras, still cameras, or
   3-20  other electrical, mechanical, or electronic devices used for
   3-21  preventing or detecting burglary, theft, shoplifting, pilferage, or
   3-22  other losses is exclusively over-the-counter or by mail order;
   3-23              (14)  a person who holds a license or other form of
   3-24  permission issued by an incorporated city or town to practice as an
   3-25  electrician and who installs fire or smoke detectors in no building
   3-26  other than a single family or multifamily residence;
   3-27              (15)  a person or organization in the business of
    4-1  building construction that installs electrical wiring and devices
    4-2  that may include in part the installation of a burglar alarm or
    4-3  detection device if:
    4-4                    (A)  the person or organization is a party to a
    4-5  contract that provides that the installation will be performed
    4-6  under the direct supervision of and inspected and certified by a
    4-7  person or organization licensed to install and certify such an
    4-8  alarm or detection device and that the licensee assumes full
    4-9  responsibility for the installation of the alarm or detection
   4-10  device; and
   4-11                    (B)  the person or organization does not service
   4-12  or maintain burglar alarms or detection devices;
   4-13              (16)  a reserve peace officer while the reserve officer
   4-14  is performing guard, patrolman, or watchman duties for a county and
   4-15  is being compensated solely by that county;
   4-16              (17)  response to a burglar alarm or detection device
   4-17  by a law enforcement agency or by a law enforcement officer acting
   4-18  in an official capacity;
   4-19              (18)  a person who, by education, experience, or
   4-20  background has specialized expertise or knowledge such as that
   4-21  which would qualify or tend to qualify such person as an expert
   4-22  witness, authorized to render opinions in proceedings conducted in
   4-23  a court, administrative agency, or governing body of this state or
   4-24  of the United States, in accordance with applicable rules and
   4-25  regulations and who does not perform any other service for which a
   4-26  license is required by provisions of this Act;
   4-27              (19)  an officer, employee, or agent of a common
    5-1  carrier, as defined by Section 153(h), Communications Act of 1934
    5-2  (47 U.S.C.A. Sec. 151 et seq.), while protecting the carrier or a
    5-3  user of the carrier's long-distance services from a fraudulent,
    5-4  unlawful, or abusive use of those long-distance services;
    5-5              (20)  a person who sells or installs automobile burglar
    5-6  alarm devices;
    5-7              (21)  a manufacturer, or a manufacturer's authorized
    5-8  distributor, who sells to the holder of a license under this Act
    5-9  equipment used in the operations for which the holder is required
   5-10  to be licensed;
   5-11              (22)  a person employed as a noncommissioned security
   5-12  officer by a political subdivision of this state;
   5-13              (23)  a person whose activities are regulated under
   5-14  Article 5.43-2, Insurance Code, except to the extent that those
   5-15  activities are specifically regulated under this Act;
   5-16              (24)  a landman performing activities in the course and
   5-17  scope of the landman's business;
   5-18              (25)  a hospital or a wholly owned subsidiary or
   5-19  affiliate of a hospital that provides medical alert services for
   5-20  persons who are sick or disabled, if the hospital, subsidiary, or
   5-21  affiliate is licensed under Chapter 241, Health and Safety Code,
   5-22  and the hospital does not perform any other service that requires a
   5-23  license under this Act;
   5-24              (26)  a charitable, nonprofit organization that
   5-25  provides medical alert services for persons who are sick or
   5-26  disabled, if the organization:
   5-27                    (A)  is exempt from taxation under Section
    6-1  501(c)(3), Internal Revenue Code of 1986;
    6-2                    (B)  has its monitoring services provided by a
    6-3  licensed person or hospital or a wholly owned subsidiary or
    6-4  affiliate of a hospital licensed under Chapter 241, Health and
    6-5  Safety Code; and
    6-6                    (C)  does not perform any other service that
    6-7  requires a license under this Act;
    6-8              (27)  a person engaged in the business of electronic
    6-9  monitoring of a person as a condition of that person's probation,
   6-10  parole, mandatory supervision, or release on bail, if the person
   6-11  does not perform any other service that requires a license under
   6-12  this Act;
   6-13              (28)  a nonprofit business or civic organization that:
   6-14                    (A)  employs one or more peace officers meeting
   6-15  the qualifications of Subdivision (3) of this subsection as
   6-16  patrolmen, guards, or watchmen;
   6-17                    (B)  provides the services of these peace
   6-18  officers only to:
   6-19                          (i)  its members; or
   6-20                          (ii)  if the organization does not have
   6-21  members, the members of the communities served by the organization
   6-22  as described in its articles of incorporation or other
   6-23  organizational documents;
   6-24                    (C)  devotes the net receipts from all charges
   6-25  for the services exclusively to the cost of providing the services
   6-26  or to the costs of other services for the enhancement of the
   6-27  security or safety of:
    7-1                          (i)  its members; or
    7-2                          (ii)  if the organization does not have
    7-3  members, the members of the communities served by the organization
    7-4  as described in its articles of incorporation or other
    7-5  organizational documents; and
    7-6                    (D)  does not perform any other service that
    7-7  requires a license under this Act;
    7-8              (29)  a charitable, nonprofit organization that
    7-9  maintains a system of records to aid in the location of missing
   7-10  children if the organization:
   7-11                    (A)  is exempt from federal taxation under
   7-12  Section 501(c)(3), Internal Revenue Code of 1986, and its
   7-13  subsequent amendments;
   7-14                    (B)  exclusively provides services related to
   7-15  locating missing children; and
   7-16                    (C)  does not perform any other service that
   7-17  requires a license under this Act; or
   7-18              (30)  a person engaged in the business of psychological
   7-19  testing or other testing and interviewing services (to include but
   7-20  not limited to attitudes, honesty, intelligence, personality, and
   7-21  skills) for preemployment purposes, if the person does not perform
   7-22  any other service that requires a license under this Act.
   7-23        SECTION 2.  Section 11(d), Private Investigators and Private
   7-24  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   7-25  Statutes), is amended to read as follows:
   7-26        (d)  The board shall <may> recognize, prepare, or administer
   7-27  continuing education programs for persons regulated by the board
    8-1  under this Act.  The board shall set the minimum number of hours
    8-2  that must be completed and the types of programs that may be
    8-3  offered for persons regulated by the board.  A person regulated by
    8-4  the board shall submit evidence of compliance with the board's
    8-5  continuing education requirements in a manner prescribed by the
    8-6  board.  <Participation in the programs is voluntary.>
    8-7        SECTION 3.  Section 44, Private Investigators and Private
    8-8  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
    8-9  Statutes), is amended by amending Subsection (c) and adding
   8-10  Subsection (f) to read as follows:
   8-11        (c)  Any person who violates any provision of this Act for
   8-12  which a specific penalty is not prescribed commits an offense.  An
   8-13  offense under this subsection is a Class A misdemeanor.  If it is
   8-14  shown at the trial of an offense under this subsection that the
   8-15  defendant has been previously convicted of an offense under this
   8-16  subsection, the offense is a felony of the third degree.
   8-17        (f)  A person commits an offense if the person knowingly
   8-18  hires, contracts with, or employs a person who is required to hold
   8-19  a registration, certificate, license, or commission under this Act
   8-20  but does not hold the required registration, certificate, license,
   8-21  or commission or who otherwise, at the time of hire, contract, or
   8-22  employment, is in violation of this Act.  An offense under this
   8-23  subsection is a Class A misdemeanor.
   8-24        SECTION 4.  This Act takes effect September 1, 1995.
   8-25        SECTION 5.  (a)  The change in law made by this Act applies
   8-26  only to the punishment of an offense committed on or after the
   8-27  effective date of this Act.  For purposes of this section, an
    9-1  offense is committed before the effective date of this Act if any
    9-2  element of the offense occurs before the effective date.
    9-3        (b)  An offense committed before the effective date of this
    9-4  Act is covered by the law in effect when the offense was committed,
    9-5  and the former law is continued in effect for that purpose.
    9-6        SECTION 6.  The Texas Board of Private Investigators and
    9-7  Private Security Agencies shall adopt rules relating to required
    9-8  continuing education programs not later than March 1, 1996.
    9-9        SECTION 7.  The importance of this legislation and the
   9-10  crowded condition of the calendars in both houses create an
   9-11  emergency and an imperative public necessity that the
   9-12  constitutional rule requiring bills to be read on three several
   9-13  days in each house be suspended, and this rule is hereby suspended.