74R9208 CAG-F
          By Carter                                             H.B. No. 2958
          Substitute the following for H.B. No. 2958:
          By Driver                                         C.S.H.B. No. 2958
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to regulation of private investigators and private
    1-3  security agencies; providing a criminal penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 2, Private Investigators and Private
    1-6  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
    1-7  Statutes), is amended by amending Subdivisions (3), (5), and (31)
    1-8  and by adding Subdivisions (34) and (35) to read as follows:
    1-9              (3)  "Investigations company" means any person who
   1-10  engages in the business or accepts employment to obtain or furnish
   1-11  information with reference to:
   1-12                    (a)  crime or wrongs done or threatened against
   1-13  the United States of America or any state or territory of the
   1-14  United States of America;
   1-15                    (b)  the identity, habits, conduct, business,
   1-16  occupation, honesty, integrity, credibility, knowledge,
   1-17  trustworthiness, efficiency, loyalty, activity, movement,
   1-18  whereabouts, affiliations, associations, transactions, acts,
   1-19  reputation, or character of any person;
   1-20                    (c)  the location, disposition, or recovery of
   1-21  lost or stolen property;
   1-22                    (d)  the cause or responsibility for fires,
   1-23  libels, losses, accidents, damages or injuries to persons or to
    2-1  property; <or>
    2-2                    (e)  the securing of evidence to be used before
    2-3  any court, board, officer, or investigating committee; or
    2-4                    (f)  the electronic tracking of the location of
    2-5  an individual or motor vehicle.
    2-6              (5)  "Alarm systems company" means any person that
    2-7  sells, installs, services, monitors, or responds to burglar alarm
    2-8  signal devices, detection devices, burglar alarms, robbery alarms,
    2-9  television cameras, still cameras or any other electrical,
   2-10  mechanical, or electronic device used:
   2-11                    (A)  to prevent or detect burglary, theft,
   2-12  robbery, shoplifting, pilferage, shrinkage, or other losses of that
   2-13  type;
   2-14                    (B)  to prevent or detect intrusion; or
   2-15                    (C)  primarily to detect or summon aid for other
   2-16  emergencies.
   2-17              (31)  "Alarm systems monitor" means an individual who
   2-18  monitors burglar alarm signal devices, detection devices, burglar
   2-19  alarms, robbery alarms, television cameras, still cameras, or any
   2-20  other electrical, mechanical, or electronic device used to prevent
   2-21  or detect burglary, theft, robbery, shoplifting, pilferage,
   2-22  shrinkage, or similar losses, used to prevent or detect intrusion,
   2-23  or used primarily to summon aid for other emergencies.  The term
   2-24  does not include a person employed exclusively and regularly by an
   2-25  employer other than a licensee in connection with the affairs of
    3-1  that employer, and with whom the person has an employee-employer
    3-2  relationship.
    3-3              (34)  "Detection device" means an electronic device
    3-4  that is part of a burglar or holdup alarm, including a control or
    3-5  communication device, door or window switch, motion, sound, or
    3-6  vibration detector, light beam, pressure mat, wiring or similar
    3-7  device, or any other electronic device used to limit access by a
    3-8  person to a building, gate, or other structure, including a card or
    3-9  proximity reader, push button key pad entry or gate entry device,
   3-10  door exit button, or other similar device.
   3-11              (35)  "Animal cruelty investigator" means an individual
   3-12  who investigates animal cruelty and related offenses and who is
   3-13  certified by the board under Section 14C of this Act.
   3-14        SECTION 2.  Section 3(a), Private Investigators and Private
   3-15  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   3-16  Statutes), is amended to read as follows:
   3-17        (a)  This Act does not apply to:
   3-18              (1)  a person employed exclusively and regularly by one
   3-19  employer in connection with the affairs of an employer only and
   3-20  where there exists an employer-employee relationship; provided,
   3-21  however, any person who shall carry a firearm in the course of his
   3-22  employment shall be required to obtain a private security officer
   3-23  commission under the provisions of this Act;
   3-24              (2)  except as provided by Subsection (d) of this
   3-25  Section, an officer or employee of the United States of America, or
    4-1  of this State or political subdivision of either, while the
    4-2  employee or officer is engaged in the performance of official
    4-3  duties;
    4-4              (3)  a person who has full-time employment as a peace
    4-5  officer as defined by Article 2.12, Code of Criminal Procedure, who
    4-6  receives compensation for private employment on an individual or an
    4-7  independent contractor basis as a patrolman, guard, or watchman if
    4-8  such person is:
    4-9                    (A)  employed in an employee-employer
   4-10  relationship; or
   4-11                    (B)  employed on an individual contractual basis;
   4-12                    (C)  not in the employ of another peace officer;
   4-13  and
   4-14                    (D)  not a reserve peace officer;
   4-15              (4)  a person engaged exclusively in the business of
   4-16  obtaining and furnishing information for purposes of credit
   4-17  worthiness or collecting debts or ascertaining the financial
   4-18  responsibility of applicants for property insurance and for
   4-19  indemnity or surety bonds, with respect to persons, firms, and
   4-20  corporations;
   4-21              (5)  an attorney-at-law in performing his duties;
   4-22              (6)  admitted insurers, insurance adjusters, agents,
   4-23  and insurance brokers licensed by the State, performing duties in
   4-24  connection with insurance transacted by them;
   4-25              (7)  a person who engages exclusively in the business
    5-1  of repossessing property that is secured by a mortgage or other
    5-2  security interest;
    5-3              (8)  a locksmith who does not install or service
    5-4  detection devices, does not conduct investigations, and is not a
    5-5  security service contractor;
    5-6              (9)  a person who owns and installs burglar detection
    5-7  or alarm devices on his own property or, if he does not charge for
    5-8  the device or its installation, installs it for the protection of
    5-9  his personal property located on another's property, and does not
   5-10  install the devices as a normal business practice on the property
   5-11  of another;
   5-12              (10)  an employee of a cattle association who is
   5-13  engaged in inspection of brands of livestock under the authority
   5-14  granted to that cattle association by the Packers and Stockyards
   5-15  Division of the United States Department of Agriculture;
   5-16              (11)  the provisions of this Act shall not apply to
   5-17  common carriers by rail engaged in interstate commerce and
   5-18  regulated by state and federal authorities and transporting
   5-19  commodities essential to the national defense and to the general
   5-20  welfare and safety of the community;
   5-21              (12)  a registered professional engineer practicing in
   5-22  accordance with the provisions of the Texas Engineering Practice
   5-23  Act  that does not install or service detection devices, does not
   5-24  conduct investigations, and is not a security services contractor;
   5-25              (13)  a person whose sale of burglar alarm signal
    6-1  devices, burglary alarms, television cameras, still cameras, or
    6-2  other electrical, mechanical, or electronic devices used for
    6-3  preventing or detecting burglary, theft, shoplifting, pilferage, or
    6-4  other losses is exclusively over-the-counter or by mail order;
    6-5              (14)  a person who holds a license or other form of
    6-6  permission issued by an incorporated city or town to practice as an
    6-7  electrician and who installs fire or smoke detectors in no building
    6-8  other than a single family or multifamily residence;
    6-9              (15)  a person or organization in the business of
   6-10  building construction that installs electrical wiring and devices
   6-11  that may include in part the installation of a burglar alarm or
   6-12  detection device if:
   6-13                    (A)  the person or organization is a party to a
   6-14  contract that provides that the installation will be performed
   6-15  under the direct supervision of and inspected and certified by a
   6-16  person or organization licensed to install and certify such an
   6-17  alarm or detection device and that the licensee assumes full
   6-18  responsibility for the installation of the alarm or detection
   6-19  device; and
   6-20                    (B)  the person or organization does not service
   6-21  or maintain burglar alarms or detection devices;
   6-22              (16)  a reserve peace officer while the reserve officer
   6-23  is performing guard, patrolman, or watchman duties for a county and
   6-24  is being compensated solely by that county;
   6-25              (17)  response to a burglar alarm or detection device
    7-1  by a law enforcement agency or by a law enforcement officer acting
    7-2  in an official capacity;
    7-3              (18)  a person who, by education, experience, or
    7-4  background has specialized expertise or knowledge such as that
    7-5  which would qualify or tend to qualify such person as an expert
    7-6  witness, authorized to render opinions in proceedings conducted in
    7-7  a court, administrative agency, or governing body of this state or
    7-8  of the United States, in accordance with applicable rules and
    7-9  regulations and who does not perform any other service for which a
   7-10  license is required by provisions of this Act;
   7-11              (19)  an officer, employee, or agent of a common
   7-12  carrier, as defined by Section 153(h), Communications Act of 1934
   7-13  (47 U.S.C.A. Sec. 151 et seq.), while protecting the carrier or a
   7-14  user of the carrier's long-distance services from a fraudulent,
   7-15  unlawful, or abusive use of those long-distance services;
   7-16              (20)  a person who sells or installs automobile burglar
   7-17  alarm devices and who does not perform any other act requiring a
   7-18  license under this Act;
   7-19              (21)  a manufacturer, or a manufacturer's authorized
   7-20  distributor, who sells to the holder of a license under this Act
   7-21  equipment used in the operations for which the holder is required
   7-22  to be licensed;
   7-23              (22)  a person employed as a noncommissioned security
   7-24  officer by a political subdivision of this state;
   7-25              (23)  a person whose activities are regulated under
    8-1  Article 5.43-2, Insurance Code, except to the extent that those
    8-2  activities are specifically regulated under this Act;
    8-3              (24)  a landman performing activities in the course and
    8-4  scope of the landman's business;
    8-5              (25)  a hospital or a wholly owned subsidiary or
    8-6  affiliate of a hospital that provides medical alert services for
    8-7  persons who are sick or disabled, if the hospital, subsidiary, or
    8-8  affiliate is licensed under Chapter 241, Health and Safety Code,
    8-9  and the hospital does not perform any other service that requires a
   8-10  license under this Act;
   8-11              (26)  a charitable, nonprofit organization that
   8-12  provides medical alert services for persons who are sick or
   8-13  disabled, if the organization:
   8-14                    (A)  is exempt from taxation under Section
   8-15  501(c)(3), Internal Revenue Code of 1986;
   8-16                    (B)  has its monitoring services provided by a
   8-17  licensed person or hospital or a wholly owned subsidiary or
   8-18  affiliate of a hospital licensed under Chapter 241, Health and
   8-19  Safety Code; and
   8-20                    (C)  does not perform any other service that
   8-21  requires a license under this Act;
   8-22              (27)  a person engaged in the business of electronic
   8-23  monitoring of a person as a condition of that person's probation,
   8-24  parole, mandatory supervision, or release on bail, if the person
   8-25  does not perform any other service that requires a license under
    9-1  this Act;
    9-2              (28)  a nonprofit business or civic organization that:
    9-3                    (A)  employs one or more peace officers meeting
    9-4  the qualifications of Subdivision (3) of this subsection as
    9-5  patrolmen, guards, or watchmen;
    9-6                    (B)  provides the services of these peace
    9-7  officers only to:
    9-8                          (i)  its members; or
    9-9                          (ii)  if the organization does not have
   9-10  members, the members of the communities served by the organization
   9-11  as described in its articles of incorporation or other
   9-12  organizational documents;
   9-13                    (C)  devotes the net receipts from all charges
   9-14  for the services exclusively to the cost of providing the services
   9-15  or to the costs of other services for the enhancement of the
   9-16  security or safety of:
   9-17                          (i)  its members; or
   9-18                          (ii)  if the organization does not have
   9-19  members, the members of the communities served by the organization
   9-20  as described in its articles of incorporation or other
   9-21  organizational documents; and
   9-22                    (D)  does not perform any other service that
   9-23  requires a license under this Act;
   9-24              (29)  a charitable, nonprofit organization that
   9-25  maintains a system of records to aid in the location of missing
   10-1  children if the organization:
   10-2                    (A)  is exempt from federal taxation under
   10-3  Section 501(c)(3), Internal Revenue Code of 1986, and its
   10-4  subsequent amendments;
   10-5                    (B)  exclusively provides services related to
   10-6  locating missing children; and
   10-7                    (C)  does not perform any other service that
   10-8  requires a license under this Act; or
   10-9              (30)  a person engaged in the business of psychological
  10-10  testing or other testing and interviewing services (to include but
  10-11  not limited to attitudes, honesty, intelligence, personality, and
  10-12  skills) for preemployment purposes, if the person does not perform
  10-13  any other service that requires a license under this Act.
  10-14        SECTION 3.  Sections 3A(a) and (c), Private Investigators and
  10-15  Private Security Agencies Act (Article 4413(29bb), Vernon's Texas
  10-16  Civil Statutes), are amended to read as follows:
  10-17        (a)  Except as provided by Subsection (c) of this section,
  10-18  the provisions of this Act do not apply to a person who sells
  10-19  detection devices <burglar alarms> or other devices for preventing
  10-20  or detecting burglary in a person's residence if:
  10-21              (1)  the person does not install, service, or maintain
  10-22  the detection devices <burglar alarms> or other devices;
  10-23              (2)  the person holds a valid seller's certificate
  10-24  issued by the board;
  10-25              (3)  the person has, as a precedent for obtaining a
   11-1  seller's certificate, submitted to the board an application for a
   11-2  seller's certificate which shall include the person's full name,
   11-3  residence telephone number, date and place of birth, and Social
   11-4  Security number, together with two color photographs taken within
   11-5  the past six months that show a facial likeness of the person and
   11-6  two sets of classifiable fingerprints;
   11-7              (4)  the person has paid to the board a seller's
   11-8  certificate fee as established by the board, but not to exceed $25,
   11-9  which certificate shall be valid for a period of two years;
  11-10              (5)  there is filed with the board, either by the
  11-11  manufacturer, distributor, or sellers of such devices, a
  11-12  certificate evidencing insurance for liability for bodily injury or
  11-13  property damage arising from faulty or defective products in an
  11-14  amount not less than $1 million combined single limit, provided
  11-15  that such policy of insurance need not relate exclusively to
  11-16  burglary devices;
  11-17              (6)  there has been filed with the board, either by the
  11-18  manufacturer, distributor, or sellers of such devices, a surety
  11-19  bond executed by a surety company authorized to do business in this
  11-20  state in the sum of $10,000 in favor of the State of Texas, and any
  11-21  customer purchasing such devices in his home who does not receive
  11-22  delivery of the devices in accordance with the contract or
  11-23  agreement may bring an action against the bond to recover the down
  11-24  payment or purchase price actually paid; and
  11-25              (7)  the person is not employed by a security services
   12-1  contractor.
   12-2        (c)  It shall be unlawful and punishable as provided in
   12-3  Section 44 of this Act for any person who holds a current seller's
   12-4  certificate to install, service, monitor, or respond to detection
   12-5  devices <burglar alarms> or other devices used to prevent or detect
   12-6  burglary or other similar losses.
   12-7        SECTION 4.  Section 11B(a), Private Investigators and Private
   12-8  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   12-9  Statutes), is amended to read as follows:
  12-10        (a)  The board shall revoke or suspend any registration,
  12-11  license, or security officer commission, reprimand any registrant,
  12-12  licensee, or commissioned security officer, or deny an application
  12-13  for a registration, license, or security officer commission, or
  12-14  renewal thereof, or may place on probation a person whose
  12-15  registration, license, or security officer commission has been
  12-16  suspended, on proof:
  12-17              (1)  that the applicant, licensee, commissioned
  12-18  security officer, or registrant has violated any provisions of this
  12-19  Act or of the rules and regulations promulgated under this Act;
  12-20              (2)  that the applicant, licensee, commissioned
  12-21  security officer, or registrant has committed any act resulting in
  12-22  conviction of a felony;
  12-23              (3)  that the applicant, licensee, commissioned
  12-24  security officer, or registrant has committed an act after the date
  12-25  of application for a registration, license, or security officer
   13-1  commission that results in a conviction of a misdemeanor involving
   13-2  moral turpitude;
   13-3              (4)  that the applicant, licensee, commissioned
   13-4  security officer, or registrant has practiced fraud, deceit, or
   13-5  misrepresentation; <or>
   13-6              (5)  that the applicant, licensee, commissioned
   13-7  security officer, or registrant has made a material misstatement in
   13-8  the application for or renewal of a license, registration, or
   13-9  security officer commission; or
  13-10              (6)  submitted by a licensee that a commissioned
  13-11  security officer or registrant employed by the licensee committed
  13-12  fraud, deceit, or theft while working as a commissioned security
  13-13  officer or registrant for the licensee.
  13-14        SECTION 5.  Section 14B, Private Investigators and Private
  13-15  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
  13-16  Statutes), is amended to read as follows:
  13-17        Sec. 14B.  RESTRICTIONS ON USE OF GUARD DOGS BY CERTAIN
  13-18  PERSONS. A person who has been convicted of cruelty to animals is
  13-19  ineligible for a license as a guard dog company under this Act,
  13-20  <and is also ineligible> for registration as a dog trainer, or for
  13-21  certification as an animal cruelty investigator.  Such a person may
  13-22  not be employed to work with dogs as a security officer by a
  13-23  security services contractor or security department of a private
  13-24  business that uses dogs to protect individuals or property or to
  13-25  conduct investigations.
   14-1        SECTION 6.  The Private Investigators and Private Security
   14-2  Agencies Act (Article 4413(29bb), Vernon's Texas Civil Statutes),
   14-3  is amended by adding Section 14C to read as follows:
   14-4        Sec. 14C.  ANIMAL CRUELTY INVESTIGATOR CERTIFICATE.  (a) An
   14-5  applicant for certification as an animal cruelty investigator must:
   14-6              (1)  meet the qualifications of Section 14(a) of this
   14-7  Act;
   14-8              (2)  complete training approved by the board that is
   14-9  equivalent to training received in levels one and two of the
  14-10  Association of Certified Cruelty Investigators training course; and
  14-11              (3)  submit a written application for certification on
  14-12  a form adopted by the board that includes:
  14-13                    (A)  two sets of fingerprints;
  14-14                    (B)  two color photographs of the applicant's
  14-15  face;
  14-16                    (C)  proof of completion of the training
  14-17  requirement of Subsection (b) of this section; and
  14-18                    (D)  any certification fee.
  14-19        (b)  The board, after consulting recognized animal cruelty
  14-20  organizations, shall adopt rules relating to the training
  14-21  requirements, certification, and practice of animal cruelty
  14-22  investigators.
  14-23        (c)  A certificate issued under this section expires on the
  14-24  first anniversary after the date the certificate is issued. The
  14-25  certificate may be renewed by submitting an application for renewal
   15-1  to the board, paying any renewal fee set by the board, and
   15-2  submitting proof of completion of 12 or more hours of continuing
   15-3  education approved by the board that is equivalent to continuing
   15-4  education provided by the Association of Certified Cruelty
   15-5  Investigators.
   15-6        SECTION 7.  Section 17(a), Private Investigators and Private
   15-7  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   15-8  Statutes), is amended to read as follows:
   15-9        (a)  If the General Appropriations Act does not specify the
  15-10  amount of the fee, the board by rule shall establish reasonable and
  15-11  necessary fees that produce funds sufficient for the administration
  15-12  of this Act but that do not produce unnecessary fund balances and
  15-13  do not exceed the following amounts:
  15-14        Class A license                                          $225
  15-15        (original and renewal)
  15-16        Class B license                                           225
  15-17        (original and renewal)
  15-18        Class C license                                           340
  15-19        (original and renewal)
  15-20        Reinstate suspended license                               150
  15-21        Assignment of license                                     150
  15-22        Change name of license                                     75
  15-23        Delinquency fee                                         _____
  15-24        Branch office certificate and renewal                     150
  15-25        Registration fee for private investigators, managers,      20
   16-1        branch office managers, and alarm systems installers
   16-2        (original and renewal)
   16-3        Registration fee for noncommissioned security officer      35
   16-4        Registration fee for security sales person                 20
   16-5        Registration fee for alarm systems monitor                 20
   16-6        Registration fee for dog trainer                           20
   16-7        Registration fee for owner, officer, partner, or           20
   16-8        shareholder of a licensee
   16-9        Registration fee for security consultants                  55
  16-10        Security officer commission fee                            35
  16-11        (original and renewal)
  16-12        School instructor fee                                     100
  16-13        (original and renewal)
  16-14        School approval fee                                       250
  16-15        (original and renewal)
  16-16        Letter of authority fee for private businesses and        225
  16-17        political subdivisions
  16-18        (original and renewal)
  16-19        FBI fingerprint check                                      25
  16-20        Duplicate pocket card                                      10
  16-21        Employee information update fee                            15
  16-22        Burglar alarm sellers renewal fee                          25
  16-23        Animal cruelty investigator certificate                    50
  16-24        SECTION 8.  Sections 28(a) and (e), Private Investigators and
  16-25  Private Security Agencies Act (Article 4413(29bb), Vernon's Texas
   17-1  Civil Statutes), are amended to read as follows:
   17-2        (a)  Any licensee or officer, director, partner, or manager
   17-3  of a licensee shall divulge to any law enforcement officer or a
   17-4  district attorney, or his representative, any information he may
   17-5  acquire as to any criminal offense, but he shall not divulge to any
   17-6  other person except as he may be required by state law or a court
   17-7  order <so to do>, any information acquired by him except at the
   17-8  direction of the employer or client for whom the information was
   17-9  obtained.
  17-10        (e)  Information that is contained in alarm systems records
  17-11  held by a governmental body and that concerns the location of an
  17-12  alarm system, the name of the occupant of an alarm system location,
  17-13  or the type of alarm system used is confidential and may be
  17-14  disclosed only to the board or as otherwise required by state law
  17-15  or court order.
  17-16        SECTION 9.  Section 44, Private Investigators and Private
  17-17  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
  17-18  Statutes),  is amended by amending Subsection (c) and by adding
  17-19  Subsection (f) to read as follows:
  17-20        (c)  Any person who violates any provision of this Act for
  17-21  which a specific penalty is not prescribed commits an offense.  An
  17-22  offense under this subsection is a Class A misdemeanor, except that
  17-23  the offense is a felony of the third degree if the person has
  17-24  previously been convicted of an offense under this Act and the
  17-25  offense consists of the person's failure to hold a registration,
   18-1  certificate, license, or commission the person is required to hold
   18-2  by this Act.
   18-3        (f)  A person commits an offense if the person knowingly
   18-4  hires, contracts with, or employs another person to perform a
   18-5  service or function for which a registration, certificate, license,
   18-6  or commission is required under this Act and the other person does
   18-7  not hold the registration, certificate, license, or commission or
   18-8  is otherwise, at the time the person was hired, contracted with, or
   18-9  employed, in violation of this Act. An offense under this
  18-10  subsection is a Class A misdemeanor.
  18-11        SECTION 10.  This Act takes effect September 1, 1995.
  18-12        SECTION 11.  (a)  The change in law made by this Act applies
  18-13  only to an offense committed on or after the effective date of this
  18-14  Act. For the purposes of this section, an offense is committed
  18-15  before the effective date of this Act if any element of the offense
  18-16  occurs before the effective date of this Act.
  18-17        (b)  An offense committed before the effective date of this
  18-18  Act is covered by the law in effect when the offense was committed,
  18-19  and the former law is continued in effect for that purpose.
  18-20        SECTION 12.  The Texas Board of Private Investigators and
  18-21  Private Security Agencies shall adopt rules relating to required
  18-22  continuing education programs not later than March 1, 1996.
  18-23        SECTION 13.  The importance of this legislation and the
  18-24  crowded condition of the calendars in both houses create an
  18-25  emergency and an imperative public necessity that the
   19-1  constitutional rule requiring bills to be read on three several
   19-2  days in each house be suspended, and this rule is hereby suspended.