By Carter                                             H.B. No. 2958
                                 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 2, Private Investigators and Private
    1-6  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
    1-7  Statutes), is amended by amending Subsections (3), (5) and (31) and
    1-8  adding Subsection (33) to read as follows:
    1-9        (3)  "Investigations company" means any person who engages in
   1-10  the business or accepts employment to obtain or furnish information
   1-11  with reference to:
   1-12              (a)  a crime or wrongs done or threatened against the
   1-13  United States of America or any state or territory of the United
   1-14  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 lost or
   1-21  stolen property;
   1-22              (d)  the cause or responsibility for fires, libels,
   1-23  losses, accidents, damages, or injuries to persons or to property;
    2-1  <or>
    2-2              (e)  the securing of evidence to be used before any
    2-3  court, board, officer, or investigating committee ; or
    2-4              (f)  the electronic tracking of the location of any
    2-5  individual or motor vehicle.
    2-6        (5)  "Alarm systems company" means any person that sells,
    2-7  installs, services, monitors or responds to burglar alarm signal
    2-8  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, robbery,
   2-12  shoplifting, pilferage, shrinkage, or other losses of that type;
   2-13              (b)  to prevent or detect intrusion; or
   2-14              (c)  primarily to detect or summon aid for other
   2-15  emergencies.
   2-16        (31)  "Alarm system monitor" means an individual who monitors
   2-17  burglar alarm signal devices, detection devices, burglar alarms,
   2-18  robbery alarms, television cameras, still cameras, or any other
   2-19  electrical, mechanical, or electronic device used to prevent or
   2-20  detect burglary, theft, shoplifting, pilferage, shrinkage, or
   2-21  similar losses, used to prevent or detect intrusion, or used
   2-22  primarily to summon aid for other emergencies.  The term does not
   2-23  include a person employed exclusively and regularly by an employer
   2-24  other than a licensee in connection with the affairs of that
   2-25  employer, and with whom the person has an employer-employee
    3-1  relationship.
    3-2        (33)  "Detection device" means an electronic device used as a
    3-3  part of a burglar or hold-up alarm including any control,
    3-4  communications, motion detector, door or window switch, sound
    3-5  detector, vibration detector, light beam, pressure mat, wiring or
    3-6  similar device; or any electronic device used to limit access by
    3-7  persons into building structures or gate compounds, including any
    3-8  control, communications, motion detector, door or window switch,
    3-9  card or proximity readers, push-button key pad entry, gate entry
   3-10  device, door exit buttons, or similar device.
   3-11        SECTION 2.  Section 3(a), Private Investigators and Private
   3-12  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   3-13  Statutes), is amended to read as follows:
   3-14        (a)  This Act does not apply to:
   3-15              (1)  a person employed exclusively and regularly by one
   3-16  employer in connection with the affairs of an employer only and
   3-17  where there exists an employer-employee relationship; provided,
   3-18  however, any person who shall carry a firearm in the course of his
   3-19  employment shall be required to obtain a private security officer
   3-20  commission under the provisions of this Act;
   3-21              (2)  except as provided by Subsection (d) of this
   3-22  Section, an officer or employee of the United States of America, or
   3-23  of this State or political subdivision of either, while the
   3-24  employee or officer is engaged in the performance of official
   3-25  duties;
    4-1              (3)  a person who has full-time employment as a peace
    4-2  officer as defined by Article 2.12, Code of Criminal Procedure, who
    4-3  receives compensation for private employment on an individual or an
    4-4  independent contractor basis as a patrolman, guard, or watchman if
    4-5  such person is:
    4-6                    (A)  employed in an employee-employer
    4-7  relationship; or
    4-8                    (B)  employed on an individual contractual basis;
    4-9                    (C)  not in the employ of another peace officer;
   4-10  and
   4-11                    (D)  not a reserve peace officer;
   4-12              (4)  a person engaged exclusively in the business of
   4-13  obtaining and furnishing information for purposes of credit
   4-14  worthiness or collecting debts or ascertaining the financial
   4-15  responsibility of applicants for property insurance and for
   4-16  indemnity or surety bonds, with respect to persons, firms, and
   4-17  corporations;
   4-18              (5)  an attorney-at-law in performing his duties;
   4-19              (6)  admitted insurers, insurance adjusters, agents,
   4-20  and insurance brokers licensed by the State, performing duties in
   4-21  connection with insurance transacted by them;
   4-22              (7)  a person who engages exclusively in the business
   4-23  of repossessing property that is secured by a mortgage or other
   4-24  security interest;
   4-25              (8)  a locksmith who does not install or service
    5-1  detection devices, does not conduct investigations, and is not a
    5-2  security service contractor;
    5-3              (9)  a person who owns and installs burglar detection
    5-4  or alarm devices on his own property or, if he does not charge for
    5-5  the device or its installation, installs it for the protection of
    5-6  his personal property located on another's property, and does not
    5-7  install the devices as a normal business practice on the property
    5-8  of another;
    5-9              (10)  an employee of a cattle association who is
   5-10  engaged in inspection of brands of livestock under the authority
   5-11  granted to that cattle association by the Packers and Stockyards
   5-12  Division of the United States Department of Agriculture;
   5-13              (11)  the provisions of this Act shall not apply to
   5-14  common carriers by rail engaged in interstate commerce and
   5-15  regulated by state and federal authorities and transporting
   5-16  commodities essential to the national defense and to the general
   5-17  welfare and safety of the community;
   5-18              (12)  a registered professional engineer practicing in
   5-19  accordance with the provisions of the Texas Engineering Practice
   5-20  Act  that does not install or service detection devices, does not
   5-21  conduct investigations, and is not a security services contractor;
   5-22              (13)  a person whose sale of burglar alarm signal
   5-23  devices, burglary alarms, television cameras, still cameras, or
   5-24  other electrical, mechanical, or electronic devices used for
   5-25  preventing or detecting burglary, theft, shoplifting, pilferage, or
    6-1  other losses is exclusively over-the-counter or by mail order;
    6-2              (14)  a person who holds a license or other form of
    6-3  permission issued by an incorporated city or town to practice as an
    6-4  electrician and who installs fire or smoke detectors in no building
    6-5  other than a single family or multifamily residence;
    6-6              (15)  a person or organization in the business of
    6-7  building construction that installs electrical wiring and devices
    6-8  that may include in part the installation of a burglar alarm or
    6-9  detection device if:
   6-10                    (A)  the person or organization is a party to a
   6-11  contract that provides that the installation will be performed
   6-12  under the direct supervision of and inspected and certified by a
   6-13  person or organization licensed to install and certify such an
   6-14  alarm or detection device and that the licensee assumes full
   6-15  responsibility for the installation of the alarm or detection
   6-16  device; and
   6-17                    (B)  the person or organization does not service
   6-18  or maintain burglar alarms or detection devices;
   6-19              (16)  a reserve peace officer while the reserve officer
   6-20  is performing guard, patrolman, or watchman duties for a county and
   6-21  is being compensated solely by that county;
   6-22              (17)  response to a burglar alarm or detection device
   6-23  by a law enforcement agency or by a law enforcement officer acting
   6-24  in an official capacity;
   6-25              (18)  a person who, by education, experience, or
    7-1  background has specialized expertise or knowledge such as that
    7-2  which would qualify or tend to qualify such person as an expert
    7-3  witness, authorized to render opinions in proceedings conducted in
    7-4  a court, administrative agency, or governing body of this state or
    7-5  of the United States, in accordance with applicable rules and
    7-6  regulations and who does not perform any other service for which a
    7-7  license is required by provisions of this Act;
    7-8              (19)  an officer, employee, or agent of a common
    7-9  carrier, as defined by Section 153(h), Communications Act of 1934
   7-10  (47 U.S.C.A. Sec. 151 et seq.), while protecting the carrier or a
   7-11  user of the carrier's long-distance services from a fraudulent,
   7-12  unlawful, or abusive use of those long-distance services;
   7-13              (20)  a person who sells or installs automobile burglar
   7-14  alarm devices and that does not perform any other act that requires
   7-15  a license under this Act;
   7-16              (21)  a manufacturer, or a manufacturer's authorized
   7-17  distributor, who sells to the holder of a license under this Act
   7-18  equipment used in the operations for which the holder is required
   7-19  to be licensed;
   7-20              (22)  a person employed as a noncommissioned security
   7-21  officer by a political subdivision of this state;
   7-22              (23)  a person whose activities are regulated under
   7-23  Article 5.43-2, Insurance Code, except to the extent that those
   7-24  activities are specifically regulated under this Act;
   7-25              (24)  a landman performing activities in the course and
    8-1  scope of the landman's business;
    8-2              (25)  a hospital or a wholly owned subsidiary or
    8-3  affiliate of a hospital that provides medical alert services for
    8-4  persons who are sick or disabled, if the hospital, subsidiary, or
    8-5  affiliate is licensed under Chapter 241, Health and Safety Code,
    8-6  and the hospital does not perform any other service that requires a
    8-7  license under this Act;
    8-8              (26)  a charitable, nonprofit organization that
    8-9  provides medical alert services for persons who are sick or
   8-10  disabled, if the organization:
   8-11                    (A)  is exempt from taxation under Section
   8-12  501(c)(3), Internal Revenue Code of 1986;
   8-13                    (B)  has its monitoring services provided by a
   8-14  licensed person or hospital or a wholly owned subsidiary or
   8-15  affiliate of a hospital licensed under Chapter 241, Health and
   8-16  Safety Code; and
   8-17                    (C)  does not perform any other service that
   8-18  requires a license under this Act;
   8-19              (27)  a person engaged in the business of electronic
   8-20  monitoring of a person as a condition of that person's probation,
   8-21  parole, mandatory supervision, or release on bail, if the person
   8-22  does not perform any other service that requires a license under
   8-23  this Act;
   8-24              (28)  a nonprofit business or civic organization that:
   8-25                    (A)  employs one or more peace officers meeting
    9-1  the qualifications of Subdivision (3) of this subsection as
    9-2  patrolmen, guards, or watchmen;
    9-3                    (B)  provides the services of these peace
    9-4  officers only to:
    9-5                          (i)  its members; or
    9-6                          (ii)  if the organization does not have
    9-7  members, the members of the communities served by the organization
    9-8  as described in its articles of incorporation or other
    9-9  organizational documents;
   9-10                    (C)  devotes the net receipts from all charges
   9-11  for the services exclusively to the cost of providing the services
   9-12  or to the costs of other services for the enhancement of the
   9-13  security or safety of:
   9-14                          (i)  its members; or
   9-15                          (ii)  if the organization does not have
   9-16  members, the members of the communities served by the organization
   9-17  as described in its articles of incorporation or other
   9-18  organizational documents; and
   9-19                    (D)  does not perform any other service that
   9-20  requires a license under this Act;
   9-21              (29)  a charitable, nonprofit organization that
   9-22  maintains a system of records to aid in the location of missing
   9-23  children if the organization:
   9-24                    (A)  is exempt from federal taxation under
   9-25  Section 501(c)(3), Internal Revenue Code of 1986, and its
   10-1  subsequent amendments;
   10-2                    (B)  exclusively provides services related to
   10-3  locating missing children; and
   10-4                    (C)  does not perform any other service that
   10-5  requires a license under this Act; or
   10-6              (30)  a person engaged in the business of psychological
   10-7  testing or other testing and interviewing services (to include but
   10-8  not limited to attitudes, honesty, intelligence, personality, and
   10-9  skills) for preemployment purposes, if the person does not perform
  10-10  any other service that requires a license under this Act.
  10-11        SECTION 3.  Section 3A (a) and (c), Private Investigators and
  10-12  Private Security Agencies Act (Article 4413(29bb), Vernon's Texas
  10-13  Civil Statutes), are amended to read as follows:
  10-14        Section 3A.  (a)  Except as provided by Subsection (c) of
  10-15  this section, the provisions of this Act do not apply to a person
  10-16  who sells <burglar alarms> detection devices or other devices for
  10-17  preventing or detecting burglary in a person's residence if:
  10-18              (1)  the person does not install, service, or maintain
  10-19  <the burglar alarms or other> detection devices;
  10-20              (2)  the person holds a valid seller's certificate
  10-21  issued by the board;
  10-22              (3)  the person has, as a precedent for obtaining a
  10-23  seller's certificate, submitted to the board an application for a
  10-24  seller's certificate which shall include the person's full name,
  10-25  residence telephone number, date and place of birth, and Social
   11-1  Security number, together with two color photographs taken within
   11-2  the past six months that show a facial likeness of the person and
   11-3  two sets of classifiable fingerprints;
   11-4              (4)  the person has paid to the board a seller's
   11-5  certificate fee as established by the board, but not to exceed $25,
   11-6  which certificate shall be valid for a period of two years;
   11-7              (5)  there is filed with the board, either by the
   11-8  manufacturer, distributor, or sellers of such devices, a
   11-9  certificate evidencing insurance for liability for bodily injury or
  11-10  property damage arising from faulty or defective products in an
  11-11  amount not less than $1 million combined single limit, provided
  11-12  that such policy of insurance need not relate exclusively to
  11-13  burglary devices;
  11-14              (6)  there has been filed with the board, either by the
  11-15  manufacturer, distributor, or sellers of such devices, a surety
  11-16  bond executed by a surety company authorized to do business in this
  11-17  state in the sum of $10,000 in favor of the State of Texas, and any
  11-18  customer purchasing such devices in his home who does not receive
  11-19  delivery of the devices in accordance with the contract or
  11-20  agreement may bring an action against the bond to recover the down
  11-21  payment or purchase price actually paid; and
  11-22              (7)  the person is not employed by a security services
  11-23  contractor.
  11-24        (c)  It shall be unlawful and punishable as provided in
  11-25  Section 44 of this Act for any person who holds a current seller's
   12-1  certificate to install, service, monitor, or respond to <burglar
   12-2  alarms or other> detection devices used to prevent or detect
   12-3  burglary or other losses of that type.
   12-4        SECTION 4.  Section 11B (a), Subsection (a) Private
   12-5  Investigators and Private Security Agencies Act (Article
   12-6  4413(29bb), Vernon's Texas Civil Statutes), is amended to read as
   12-7  follows:
   12-8        Section 11B.  (a)  The board shall revoke or suspend any
   12-9  registration, license, or security officer commission, reprimand
  12-10  any registrant, licensee, or commissioned security officer, or deny
  12-11  an application for a registration, license, or security officer
  12-12  commission, or renewal thereof, or may place on probation a person
  12-13  whose registration, license, or security officer commission has
  12-14  been suspended, on proof:
  12-15              (1)  that the applicant, licensee, commissioned
  12-16  security officer, or registrant has violated any provisions of this
  12-17  Act or of the rules and regulations promulgated under this Act;
  12-18              (2)  that the applicant, licensee, commissioned
  12-19  security officer, or registrant has committed any act resulting in
  12-20  conviction of a felony;
  12-21              (3)  that the applicant, licensee, commissioned
  12-22  security officer, or registrant has committed an act after the date
  12-23  of application for a registration, license, or security officer
  12-24  commission that results in a conviction of a misdemeanor involving
  12-25  moral turpitude;
   13-1              (4)  that the applicant, licensee, commissioned
   13-2  security officer, or registrant has practiced fraud, deceit, or
   13-3  misrepresentation; <or>
   13-4              (5)  that the applicant, licensee, commissioned
   13-5  security officer, or registrant has made a material misstatement in
   13-6  the application for or renewal of the license, registration, or
   13-7  security officer commission<.>; or
   13-8              (6)  that the licensee of the commissioned security
   13-9  officer or registrant has submitted to the board sufficient
  13-10  evidence that a commissioned security officer or registrant, while
  13-11  in the employ of the licensee, practiced fraud or deceit, or
  13-12  committed theft while performing work as a commissioned security
  13-13  officer or registrant.
  13-14        SECTION 5.  Section 28, Subsections (a) and (e) Private
  13-15  Investigators and Private Security Agencies Act (Article
  13-16  4413(29bb), Vernon's Texas Civil Statutes), are amended to read as
  13-17  follows:
  13-18        (a)  Any licensee or officer, director, partner, or manager
  13-19  of a licensee shall divulge to any law enforcement officer or
  13-20  district attorney, or his representative, any information he may
  13-21  acquire as to any criminal offense, but he shall not divulge to any
  13-22  other person except as he may be required by state law or court
  13-23  order so to do, any information acquired by him except at the
  13-24  direction of the employer or client for whom information was
  13-25  obtained.
   14-1        (e)  Information that is contained in alarm records held by a
   14-2  governmental body and that concerns the location of an alarm
   14-3  system, the name of the occupant of an alarm system location, or
   14-4  the type of alarm system used is confidential and may be disclosed
   14-5  only to the board or as otherwise by state law or court order.
   14-6        SECTION 6.  Section 44, Private Investigators and Private
   14-7  Security Agencies Act (Article 4413(29bb), Vernon's Texas Civil
   14-8  Statutes), is amended by amending Subsection (c) and adding
   14-9  Subsection (f) to read as follows:
  14-10        (c)  Any person who violates any provision of this Act for
  14-11  which a specific penalty is not prescribed commits an offense.  An
  14-12  offense under this subsection is a Class A misdemeanor.  If it is
  14-13  shown at the trial of an offense under this subsection that a
  14-14  defendant, who is not required to hold a registration, certificate,
  14-15  license, or commission under this Act, has been previously
  14-16  convicted of an offense under this subsection, the offense is a
  14-17  felony of the third degree.
  14-18        (f)  A person commits an offense if the person knowingly
  14-19  hires, contracts with, or employs a person who is required to hold
  14-20  a registration, certificate, license, or commission under this Act
  14-21  but does not hold the required registration, certificate, license,
  14-22  or commission or who otherwise, at the time of hire, contract, or
  14-23  employment, is in violation of this Act.  An offense under this
  14-24  subsection is a Class A misdemeanor.
  14-25        SECTION 7.  This Act takes effect September 1, 1995.
   15-1        SECTION 8.  (a)  The change in law made by this Act applies
   15-2  only to the punishment of an offense committed on or after the
   15-3  effective date of this Act.  For purposes of this section, an
   15-4  offense is committed before the effective date of this Act if any
   15-5  element of the offense occurs before the effective date.
   15-6        (b)  An offense committed before the effective date of this
   15-7  Act is covered by the law in effect when the offense was committed,
   15-8  and the former law is continued in effect for that purpose.
   15-9        SECTION 9.  The Texas Board of Private Investigators and
  15-10  Private Security Agencies shall adopt rules relating to required
  15-11  continuing education programs not later than March 1, 1996.
  15-12        SECTION 10.  The importance of this legislation and the
  15-13  crowded condition of the calendars in both houses create an
  15-14  emergency and an imperative public necessity that the
  15-15  constitutional rule requiring bills to be read on three several
  15-16  days in each house be suspended, and this rule is hereby suspended.