Committee Substitute for SB0621PAS

SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

SENATE BILL 621

48th legislature - STATE OF NEW MEXICO - first session, 2007

AN ACT

RELATING TO LICENSING; RENAMING AND REVISING THE PRIVATE INVESTIGATORS AND POLYGRAPHERS ACT; IDENTIFYING REGULATED PERSONS; CREATING THE PRIVATE INVESTIGATIONS ADVISORY BOARD; CHANGING THE NAME OF THE PRIVATE INVESTIGATOR AND POLYGRAPHER FUND; PROVIDING PENALTIES; PROVIDING FEE LIMITATIONS; PROVIDING FOR A TRANSITION PERIOD; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 61-27A-1 NMSA 1978 (being Laws 1993, Chapter 212, Section 1, as amended) is amended to read:

"61-27A-1. SHORT TITLE.--Chapter 61, Article 27A NMSA 1978 may be cited as the "Private [Investigators and Polygraphers] Investigations Act"."

Section 2. Section 61-27A-2 NMSA 1978 (being Laws 1993, Chapter 212, Section 2, as amended) is amended to read:

"61-27A-2. DEFINITIONS.--As used in the Private [Investigators and Polygraphers] Investigations Act:

[A. "alarm company" means a company that installs burglar or security alarms in a facility and responds with guards when the alarm is sounded;

B.] A. "armored car company" means a company that knowingly and willingly transports money and other negotiables for a fee or other remuneration;

[C.] B. "bodyguard" means [a person] an individual who physically performs the mission of personal security [of] for another individual;

[D.] C. "branch office" means an office of a private investigation company or a private patrol company physically located in New Mexico and managed, controlled or directed by a private investigations manager or private patrol operations manager;

[E.] D. "client" means an individual or legal entity having a contract that authorizes services to be provided in return for financial or other consideration;

[F.] E. "conviction" means any final adjudication of guilty, whether pursuant to a plea of guilty or nolo contendere or otherwise and whether or not the sentence is deferred or suspended;

[G.] F. "department" means the regulation and licensing department;

G. "individual" means a single human being;

H. "legal business entity" means a sole proprietorship, corporation, partnership, limited liability company, limited liability partnership or other entity formed for business purposes;

[H.] I. "licensee" means a person licensed [as a:

(1) private investigator;

(2) private patrol operator; or

(3) polygraph examiner;

I. "manager" means an individual who:

(1) has the qualifications required of a licensee; and

(2) directs, controls or manages a private investigator or private patrol operator business for the owner of the business when the owner does not qualify for a license under the Private Investigators and Polygraphers Act;

J. "person" means any individual, firm, company, association, organization, partnership or corporation] pursuant to the Private Investigations Act;

J. "polygraph examiner" means an individual licensed by the department to engage in the practice of polygraphy;

K. "polygraphy" means [the employment of] the process of employing an instrument designed to graphically record simultaneously the physiological changes in human respiration, cardiovascular activity, galvanic skin resistance or reflex for the purpose of lie detection and includes the reading and interpretation of polygraphic records and results;

L. "private investigation company" means a legal business entity that provides private investigation services, the location of which may be within or outside of the state, provided that the private investigation services are preformed within New Mexico;

[L.] M. "private investigator" means [a person who for any consideration whatsoever engages in business or accepts employment to conduct an investigation for the purpose of obtaining information with reference to] an individual who is licensed by the department to engage in business or who accepts employment to conduct an investigation pursuant to the Private Investigations Act to obtain information regarding:

(1) crime or wrongs done or threatened against the United States or any state or territory of the United States;

(2) [the identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliation, association, transactions, acts, reputation or character of any] a person;

(3) the location, disposition or recovery of lost or stolen property;

(4) the cause or responsibility for fires, losses, accidents or damage or injury to persons or properties; or

(5) the securing of evidence to be used before [any] a court, administrative tribunal, board [officer] or investigating committee or for a law enforcement officer;

[M. "private investigator employee" means an individual who is working under the license and bond of a private investigator;]

N. "private investigations employee" means an individual who is registered by the department to work under the direct control and supervision of a private investigator for a private investigation company;

O. "private investigations manager" means an individual who:

(1) is licensed as a private investigator and is issued a license by the department as a private investigations manager;

(2) directs, controls or manages a private investigation company for the owner of the company; and

(3) is assigned to and operates from the private investigation company that the private investigations manager is licensed to manage or from a branch office of that private investigation company;

P. "private patrol company" means a legal business entity, the location of which may be within or outside of the state, including an independent or proprietary commercial organization that provides private patrol operator services that are performed in New Mexico and the activities of which include employment of licensed private patrol operators or security guards;

Q. "private patrol employee" means an individual who is registered by the department to work under the direct control and supervision of a private patrol operator for a private patrol company;

R. "private patrol operations manager" means an individual who:

(1) is licensed as a private patrol operator or registered as a level three security guard and is issued a license by the department as a private patrol operations manager;

(2) directs, controls or manages a private patrol company for the owner of the company; and

(3) is assigned to and operates from the private patrol company that the private patrol operations manager is licensed to manage or from a branch office of that private patrol company;

[N.] S. "private patrol operator" [or "operator of a private patrol service"] means [a person who for any consideration whatsoever agrees] an individual who is licensed by the department to:

(1) [furnish or furnishes a] conduct uniformed or nonuniformed services as a watchman, security guard or patrolman [or other person] to protect property and [any] persons on or in the property;

(2) prevent the theft, unlawful taking, loss, embezzlement, misappropriation or concealment of [any] goods, wares, merchandise, money, bonds, stocks, notes, documents, papers or property of any kind; or

(3) perform the [service of] services required of a security guard [armored car company] or security dog [company] handler or provide security services for an armored car company;

[A private patrol operator may not make any investigation except those that are incidental to the theft, loss, embezzlement, misappropriation or concealment of any property or any other item enumerated in the Private Investigators and Polygraphers Act that he has been hired or engaged to protect, guard or watch;

O. "security dog company" means a company that uses trained dogs with handlers to perform a security mission at a location; and]

T. "proprietary commercial organization" means an organization or division of an organization that provides full- or part-time security guard services solely for itself;

U. "registrant" means an individual registered as a private investigations employee, a private patrol operations employee or a security guard at any level;

V. "security dog handler" means an individual who trains or patrols with dogs to detect illegal substances or explosives;

[P.] W. "security guard" means [any] an individual who is [an employee of a private patrol operator and employed] registered to engage in uniformed or nonuniformed services under the direct control and supervision of a licensed private patrol operator or a private patrol operations manager to perform such security missions as watchman, fixed post guard, dog handler, patrolman or other person to protect property or prevent thefts; and

X. "special event" means a parade or other public or private event of short duration requiring security."

Section 3. Section 61-27A-3 NMSA 1978 (being Laws 1993, Chapter 212, Section 3) is amended to read:

"61-27A-3. LICENSE REQUIRED.--It is unlawful for [any person] an individual to:

A. act as a private investigator, [a] private patrol operator, security guard, private investigations employee, private investigations manager or [a] private patrol operations manager or to [represent himself to be] make any representation as being a licensee or [a manager] registrant unless [he] the individual is licensed [under] by the department pursuant to the Private [Investigators and Polygraphers] Investigations Act;

B. render physical protection for remuneration as a bodyguard unless [he] the individual is licensed as a private investigator or a private patrol operator;

C. continue to act as a private investigator, private patrol operator, security guard, private investigations employee, private investigations manager or private patrol operations manager if [his] the individual's license issued pursuant to [that] the Private Investigations Act has expired;

D. falsely represent that [he] the individual is employed by a licensee; or

E. practice polygraphy for any remuneration without a license issued by the department in accordance with the Private [Investigators and Polygraphers] Investigations Act."

Section 4. Section 61-27A-4 NMSA 1978 (being Laws 1993, Chapter 212, Section 4) is amended to read:

"61-27A-4. PERSONS EXEMPTED.--The Private [Investigators and Polygraphers] Investigations Act does not apply to:

[A. attorneys;

[B. a person employed exclusively and regularly by one employer in connection with the affairs of such employer only where there exists an employer-employee relationship;]

A. an attorney licensed in New Mexico conducting private investigations while engaged in the practice of law;

C.] B. an officer or employee of the United States or this state or a political subdivision of the United States or this state while that officer or employee is engaged in the performance of [his] the officer's or employee's official duties;

[D.] C. a person engaged exclusively in the business of obtaining and furnishing information concerning the financial rating of persons;

[E.] D. a charitable philanthropic society or association duly incorporated under the laws of this state that is organized and maintained for the public good and not for private profit;

[F.] E. a licensed collection agency or an employee [thereof] of the agency while acting within the scope of [his] employment while making an investigation incidental to the business of the agency, including an investigation of the location of a debtor or [his] the debtor's property;

[G.] F. admitted insurers, adjusters, agents and insurance brokers licensed by the state performing duties in connection with insurance transactions by them; or

[H. any] G. an institution subject to the jurisdiction of the director of the financial institutions division of the department or the comptroller of currency of the United States."

Section 5. Section 61-27A-5 NMSA 1978 (being Laws 1993, Chapter 212, Section 5) is amended to read:

"61-27A-5. ADMINISTRATION OF ACT--RULES [AND

REGULATIONS].--

A. The department shall enforce and administer the provisions of the Private [Investigators and Polygraphers] Investigations Act.

[B. The department shall appoint an advisory board to assist in the conduct of the examination process for licensure and in any other manner to aid in the administration of that act. The advisory board shall consist of two licensed private investigators, one licensed private patrol operator, one licensed polygraph examiner and one member of the public. Members of the board shall be reimbursed as provided in the Per Diem and Mileage Act.

C.] B. The department shall keep a record of each individual licensee. [and each employee of a private investigator or private patrol operator.

D.] C. The department shall adopt and enforce rules [and regulations] necessary to carry out the provisions of the Private [Investigators and Polygraphers] Investigations Act, including [requirements for continuing education] establishing professional ethical standards.

D. The department shall adopt rules regarding:

(1) licensing private investigators, private investigations managers, private investigation companies, private patrol operators, private patrol operations managers, private patrol employees and polygraph examiners;

(2) registering private investigations employees, security guards and private patrol employees;

(3) establishing minimum training and educational standards for licensure and registration;

(4) establishing continuing education requirements;

(5) establishing and operating a branch office;

(6) creating a policy on reciprocity with other states and territories of the United States;

(7) providing permits for security guards for special events; and

(8) conducting background investigations."

Section 6. A new section of the Private Investigations Act, Section 61-27A-5.1 NMSA 1978, is enacted to read:

"61-27A-5.1. [NEW MATERIAL] PRIVATE INVESTIGATIONS ADVISORY BOARD--CREATED--MEMBERS.--

A. The "private investigations advisory board" is created.

B. The superintendent of regulation and licensing shall appoint members to the advisory board to assist in the conduct of the examination process for licensees and registrants and to assist the department in other manners as requested by the superintendent or provided for in rules of the department.

C. The advisory board members shall consist of at least the following:

(1) two private investigators;

(2) one private patrol operator;

(3) one polygraph examiner; and

(4) one member of the public.

D. Members of the advisory board shall be reimbursed pursuant to the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance for each day spent in the discharge of their duties.

E. The public member of the advisory board or the public member's spouse shall not:

(1) have been licensed pursuant to the Private Investigations Act, the Private Investigators and Polygraphers Act or any prior similar statutory provisions; or

(2) have a direct or indirect financial interest in a private investigation company, private patrol company, polygraph business or a related business."

Section 7. Section 61-27A-6 NMSA 1978 (being Laws 1993, Chapter 212, Section 6, as amended) is amended to read:

"61-27A-6. REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license [for] as a private investigator to [a person] an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant has met all requirements set forth by the department in rule, including that the applicant:

(1) is at least [eighteen] twenty-one years of age;

(2) is of good moral character;

(3) has successfully passed [a written] an examination as [prescribed] required by [the] department rule;

[(4) has at least three years' experience within the last five years in investigative work or a level of experience determined to be sufficient by the department; and

(5)] (4) has not been convicted of a felony offense or [a criminal offense involving moral turpitude or the illegal use or possession of a deadly weapon] an offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards; and

[B. The department shall issue a license for a private investigator manager to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) has passed a written examination as prescribed by the department;

(3) has at least three years' experience within the last five years in investigative work or a level of experience determined to be sufficient by the department;

(4) is of good moral character; and

(5) has not been convicted of a felony offense or a criminal offense involving moral turpitude or the illegal use or possession of a deadly weapon.

C. The department shall issue a license for a private patrol operator to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) is of good moral character;

(3) has passed a written examination as prescribed by the department;

(4) has at least three years' experience within the last five years in security work or a level of experience determined to be sufficient by the department; and

(5) has not been convicted of a felony offense or a criminal offense involving moral turpitude or the illegal use or possession of a deadly weapon.

D. The department shall issue a license for a private patrol operator manager to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) has passed a written examination as prescribed by the department;

(3) has at least three years' experience within the last five years in security work or a level of experience determined to be sufficient by the department;

(4) is of good moral character; and

(5) has not been convicted of a felony offense or a criminal offense involving moral turpitude or the illegal use or possession of a deadly weapon.

E. A manager's license is required when the owner of a private investigator or private patrol operator business does not qualify for a license under the Private Investigators and Polygraphers Act.

F. The department shall issue a security guard pocket card to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age; and

(2) is of good moral character.

G. The department shall issue a license for polygrapher to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) possesses a high school diploma or its equivalent;

(3) has not been convicted of a felony or misdemeanor involving moral turpitude; and

(4) has graduated from a polygraph examiners course approved by the department and:

(a) has completed a probationary operational competency period and passed an examination of ability to practice polygraphy; or

(b) has submitted proof of holding, for a minimum of two years immediately prior to the date of application, a current license to practice polygraphy in another jurisdiction whose standards equal or surpass those of New Mexico]

(5) has at least three years' experience that has been acquired within the five years preceding the filing of the application with the department, consisting of not less than six thousand hours of actual work performed in:

(a) investigation for the purpose of obtaining information with reference to a crime or wrongs done or threatened against the United States;

(b) investigation of persons;

(d) the cause or responsibility for fire, losses, accidents or damage or injury to persons or property; or

(e) securing evidence to be used before a court, administrative tribunal, board or investigating committee or for a law enforcement officer.

B. Years and hours of qualifying experience and the precise nature of that experience shall be substantiated by written certification from employers and shall be subject to independent verification by the department as it deems warranted. The burden of proving necessary experience is on the applicant."

Section 8. A new section of the Private Investigations Act, Section 61-27A-6.1 NMSA 1978, is enacted to read:

"61-27A-6.1. [NEW MATERIAL] PRIVATE INVESTIGATION COMPANY--REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license for a private investigation company to a person that files a completed application accompanied by the required fees and that submits satisfactory evidence that the applicant:

(1) if an individual, is of good moral character; or if a legal business entity, the owners, officer or directors of the entity are of good moral character;

(2) if an individual, has not been convicted of a felony offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards; or if a legal business entity, the owners, officers or directors of the entity have not been convicted of felony offenses involving intentional violent acts or the illegal use or possession of deadly weapons and have not been found to have violated professional ethical standards;

(3) maintains a surety bond in the amount of ten thousand dollars ($10,000); however, private investigators who provide personal protection or bodyguard services shall maintain general liability insurance as specified in the Private Investigations Act in lieu of the surety bond required by the provisions of this paragraph;

(4) has an owner or a licensed private investigations manager who is licensed as a private investigator and who manages the daily operations of the private investigation company;

(5) maintains a physical location in New Mexico where records are maintained and made available for department inspection;

(6) maintains a New Mexico registered agent if the applicant is a private investigation company located outside of New Mexico; and

(7) meets all other requirements set forth in the rules of the department.

B. The owner or the chief executive officer of a private investigation company that provides personal protection or bodyguard services shall maintain a general liability certificate of insurance in an amount required by the department. The department shall suspend the license issued pursuant to this section of a private investigation company that fails to maintain an effective general liability certificate of insurance as required. The department shall not reinstate the license of a private investigation company that has had its license suspended pursuant to this subsection until an application is submitted to the department with the necessary fees and a copy of the private investigation company's general liability certificate of insurance newly in effect. The department may deny an application for reinstatement of a private investigation company's license, notwithstanding the applicant's compliance with this subsection for:

(1) a reason that would justify a denial to issue a new private investigation company license or that would be cause for a suspension or revocation of a private investigation company's license; or

(2) the performance by the applicant of an act requiring a license issued pursuant to the Private Investigations Act while the applicant's license is under suspension for failure to maintain the applicant's general liability certificate of insurance in effect."

Section 9. A new section of the Private Investigations Act, Section 61-27A-6.2 NMSA 1978, is enacted to read:

"61-27A-6.2. [NEW MATERIAL] PRIVATE INVESTIGATIONS MANAGER--REQUIREMENTS FOR LICENSURE--NOTIFICATION OF DEPARTMENT IN EVENT OF TERMINATION OF EMPLOYMENT.--

A. The department shall issue a license for a private investigations manager to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) possesses a current license in good standing as a private investigator;

(2) has successfully passed an examination required by department rules;

(3) is employed by the private investigation company that the applicant is being licensed to manage; and

(4) meets other requirements set forth in the rules of the department.

B. A private investigations manager who ceases to be employed by the private investigation company that the manager is licensed to manage, before leaving the company, shall surrender the private investigations manager's license to the owner, officer or director who is required to temporarily take over the management of the private investigation company. The owner, officer or director who temporarily takes over managing the private investigation company within thirty days of the termination from employment of the private investigations manager shall:

(1) notify the department of the termination of the employment of the private investigations manager;

(2) submit the surrendered license; and

(3) submit an application to the department naming a new private investigations manager, who shall not begin to perform the duties of a private investigations manager until and unless the department grants the applicant a private investigations manager's license.

C. Failure to notify the department within thirty days of the private investigations manager's termination from employment subjects the license of the private investigation company to suspension or revocation by the department.

D. Reinstatement of the private investigation company's license may occur only upon the filing of an application for reinstatement and payment of the reinstatement fee."

Section 10. A new section of the Private Investigations Act, Section 61-27A-6.3 NMSA 1978, is enacted to read:

"61-27A-6.3. [NEW MATERIAL] PRIVATE PATROL OPERATOR--REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license for a private patrol operator to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least twenty-one years of age;

(2) is of good moral character;

(3) has successfully passed an examination as required by department rules;

(4) has not been convicted of a felony offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards;

(5) has at least three years' experience of not less than six thousand hours of actual work performed as a security guard or an equivalent position, one year of which shall have been in a supervisory capacity. The experience shall have been acquired within five years preceding the filing of the application with the department. Years and hours of qualifying experience and the precise nature of that experience shall be substantiated by written certification from the applicant's employers and shall be subject to independent verification by the department as it determines is warranted. The burden of proving necessary experience is on the applicant;

(6) is firearm certified, if the position will require being armed with a firearm; and

(7) meets other requirements set forth in rules of the department.

B. A private patrol operator may not investigate acts except those that are incidental to a theft, embezzlement, loss, misappropriation or concealment of property or other item that the private patrol operator has been engaged or hired to protect, guard or watch."

Section 11. A new section of the Private Investigations Act, Section 61-27A-6.4 NMSA 1978, is enacted to read:

"61-27A-6.4. [NEW MATERIAL] PRIVATE PATROL COMPANY--REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license for a private patrol company to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) if an individual, is of good moral character; or if a legal business entity, the owners, officers or directors of the entity are of good moral character;

(2) if an individual, has not been convicted of a felony offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards, or if a legal business entity, the owners, officers or directors of the entity have not been convicted of felony offenses involving an intentional violent act or the illegal use or possession of a deadly weapon and have not been found to have violated professional ethical standards;

(3) has an owner or a licensed private patrol operations manager who manages the daily operations of the private patrol company;

(4) maintains a physical location in New Mexico where records are maintained and made available for department inspection;

(5) maintains a New Mexico registered agent if the applicant is a private patrol company located outside of New Mexico; and

(6) meets all other requirements set forth in the rules of the department.

B. The owner or the chief executive officer of a private patrol company shall maintain a general liability certificate of insurance in an amount required by the department. The department shall suspend the license issued pursuant to this section of a private patrol company that fails to maintain an effective general liability certificate of insurance as required. The department shall not reinstate the license of a private patrol company that has had its license suspended pursuant to this subsection until an application is submitted to the department with the necessary fees and a copy of the private patrol company's general liability certificate of insurance newly in effect. The department may deny an application for reinstatement of a private patrol company's license, notwithstanding the applicant's compliance with this subsection for:

(1) a reason that would justify a denial to issue a new private patrol company license or that would be cause for a suspension or revocation of a private patrol company's license; or

Section 12. A new section of the Private Investigations Act, Section 61-27A-6.5 NMSA 1978, is enacted to read:

"61-27A-6.5. [NEW MATERIAL] PRIVATE PATROL OPERATIONS MANAGER--REQUIREMENT FOR LICENSURE--NOTIFICATION OF DEPARTMENT IN EVENT OF TERMINATION OF EMPLOYMENT.--

A. The department shall issue a license for a private patrol operations manager to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) possesses a current license in good standing as a private patrol operator or a registration as a level three security guard;

(2) has successfully passed an examination required by department rule;

(3) is employed by the private patrol company that the applicant is being licensed to manage; and

(4) meets other requirements set forth in the rules of the department.

B. A private patrol operations manager who ceases to be employed by the private patrol company that the manger is licensed to manage, before leaving the company, shall surrender the private patrol operations manager's license to the owner, officer or director who is required to temporarily take over the management of the private patrol company. The owner, officer or director who temporarily takes over managing the private patrol company within thirty days of the termination from employment of the private patrol operations manager shall:

(1) notify the department of the termination of the employment of the private patrol operations manager;

(2) submit the surrendered license; and

(3) submit an application to the department naming a new private patrol operations manager, who shall not begin to perform the duties of a private patrol operations manager until the department grants the applicant a private patrol operations manager's license.

C. Failure to notify the department within thirty days of the private patrol operations manager's termination from employment subjects the license of the private patrol company to suspension or revocation by the department.

D. Reinstatement of the private patrol company's license may occur only upon the filing of an application for reinstatement and payment of the reinstatement fee."

Section 13. A new section of the Private Investigations Act, Section 61-27A-6.6 NMSA 1978, is enacted to read:

"61-27A-6.6. [NEW MATERIAL] POLYGRAPH EXAMINER.--The department shall issue a license as a polygraph examiner to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

A. is at least eighteen years of age;

B. is of good moral character;

C. possesses a high school diploma or its equivalent;

D. has not been convicted of a felony involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards;

E. has graduated from an accredited polygraph examiners course approved by the department;

F. has:

(1) completed a probationary operational competency period and passed an examination of ability approved by the department to practice polygraphy; or

(2) submitted proof of holding, for a minimum of two years immediately preceding the date of application, a current license to practice polygraphy in another jurisdiction whose standards are equal to or greater than those in New Mexico; and

G. meets other requirements set forth in the rules of the department."

Section 14. A new section of the Private Investigations Act, Section 61-27A-6.7 NMSA 1978, is enacted to read:

"61-27A-6.7. [NEW MATERIAL] PRIVATE INVESTIGATIONS EMPLOYEE--REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2007, every individual who seeks employment or is currently employed as a private investigations employee shall file an application for registration with the department.

B. The department shall issue a registration for a private investigations employee to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) is of good moral character;

(3) possesses a high school diploma or its equivalent;

(4) has successfully completed an examination as required by department rule;

(5) has not been convicted of a felony involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards;

(6) shall be employed by a private investigation company, under the direct control and supervision of a private investigator; and

(7) meets other requirements set forth in rules of the department.

C. If the employment of a private investigations employee with a private investigation company terminates for any reason, the registration of the individual as a private investigations employee immediately terminates. The private investigations employee shall turn over the employee's registration to the private investigation company upon ceasing employment with that company.

D. A private investigation company shall notify the department within thirty days from the date of termination of employment of a private investigations employee of the employment termination and return the employee's registration to the department."

Section 15. A new section of the Private Investigations Act, Section 61-27A-6.8 NMSA 1978, is enacted to read:

"61-27A-6.8. [NEW MATERIAL] SECURITY GUARD--LEVELS OF REGISTRATION.--

A. A security guard shall be registered at one of the three levels enumerated in this section that are based on experience, age and other qualifications of the registrant:

(1) level one is the entry level registration for security guards who will be working in a position not requiring the registrant to carry arms;

(2) level two is the intermediate level registration for security guards who are required to be armed but not with firearms; and

(3) level three is the advanced level registration for security guards who may be required to be armed with a firearm.

B. Each security guard shall receive a card issued by the department in the security guard's name with a definite expiration date that shall be carried by the security guard at all times when the security guard is performing duties that require the security guard to be registered pursuant to the provisions of this section. A security guard is not required to obtain a new card each time the security guard changes employment."

Section 16. A new section of the Private Investigations Act, Section 61-27A-6.9 NMSA 1978, is enacted to read:

"61-27A-6.9. [NEW MATERIAL] SECURITY GUARD--LEVEL ONE-- REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2007, every individual seeking employment or employed as a level one security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level one security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) is of good moral character;

(3) possesses a high school diploma or its equivalent;

(4) has successfully completed an examination as required by department rule;

(5) has not been convicted of a felony or an offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards;

(6) has completed a curriculum approved in department rule consisting of at least sixteen hours of level one security guard training prior to being placed on a guard post for the first time as a level one security guard; that training may be provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) an in-house training program provided by a licensed private patrol company using a curriculum approved by the department; or

(c) any other department-approved educational institution using a curriculum approved by the department and complying with department standards set forth in department rules;

(7) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, a level three security guard or a private patrol operations manager; and

(8) meets other requirements set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of termination of a level one security guard of the employment termination."

Section 17. A new section of the Private Investigations Act, Section 61-27A-6.10 NMSA 1978, is enacted to read:

"61-27A-6.10. [NEW MATERIAL] SECURITY GUARD--LEVEL TWO-- REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2007, every individual seeking employment or employed as a level two security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level two security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) meets the requirements to be granted registration as a level one security guard and maintains in good standing a current registration as a level one security guard;

(2) has successfully completed an examination as required by department rule;

(3) in addition to the training required to be registered as a level one security guard, has completed a curriculum approved in department rule consisting of at least sixteen additional hours of level two security guard training prior to being placed on a guard post for the first time as a level two security guard; that training may be provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) the New Mexico law enforcement academy; or

(c) any other department-approved educational institution using a curriculum approved by the department and complying with department standards set forth in department rules;

(4) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, a level three security guard or a private patrol operations manager; and

(5) meets other requirements set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of termination of a level two security guard of the employment termination."

Section 18. A new section of the Private Investigations Act, Section 61-27A-6.11 NMSA 1978, is enacted to read:

"61-27A-6.11. [NEW MATERIAL] SECURITY GUARD--LEVEL THREE--REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2007, every individual seeking employment or employed as a level three security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level three security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least twenty-one years of age;

(2) meets the requirements to be granted registration as a level two security guard and maintains in good standing a current registration as a level two security guard;

(3) has successfully completed an examination as required by department rule;

(4) in addition to the training required to be registered as a level two security guard and before the applicant shall be placed for the first time at a guard post as a level three security guard, has completed a curriculum approved by the department consisting of the minimum training for firearm certification prescribed by the New Mexico law enforcement academy or the national rifle association, and when combined with other training required by the department totals at least twenty-four hours; provided that the additional training required by the department is provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) the New Mexico law enforcement academy; or

(c) any other department-approved educational institution using a curriculum approved by the department and complying with department standards set forth in department rules;

(5) is firearm certified;

(6) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, another level three security guard or a private patrol operations manager; and

(7) meets other requirements set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of termination of a level two security guard of the employment termination."

Section 19. A new section of the Private Investigations Act, Section 61-27A-6.12 NMSA 1978, is enacted to read:

"61-27A-6.12. [NEW MATERIAL] SPECIAL EVENT PERMIT--NONRESIDENT SECURITY GUARD PROCEDURE--QUALIFICATIONS--PROHIBITED USE.--

A. A private patrol company employing a nonresident security guard temporarily for a special event shall apply to the department for and may be issued a special event permit for each nonresident security guard qualified to be employed at the special event.

B. A special event permit is issued for a specific nonresident security guard and a specific special event and shall not be transferred to another security guard or used for a special event other than for the special event for which the permit is issued.

C. To be issued a special event permit, a private patrol company shall provide the department with a description of the special event, its location and the dates on which the temporary nonresident security guard will be employed to provide services at the special event. A special event permit shall bear the name of the private patrol company and contact information, the name of the nonresident security guard, the name of the special event for which it is issued, the dates of the special event and other pertinent information required by the department.

D. A special event permit shall be issued only to an individual who qualifies for a level one or higher security guard registration and who:

(1) is not a resident of New Mexico;

(2) does not hold a registration as a security guard in New Mexico; and

(3) meets other requirements specified by the department.

E. A special event permit requiring a security guard to carry a firearm shall only be issued to an individual who is qualified to be registered as a level three security guard.

F. It is a violation of the Private Investigations Act for a private patrol company to circumvent the registration process for permanent or long-term part-time employment of security guards through use of the provisions of this section."

Section 20. A new section of the Private Investigations Act, Section 61-27A-7.1 NMSA 1978, is enacted to read:

"61-27A-7.1. [NEW MATERIAL] FEES.--The department shall establish a schedule of reasonable fees for the following:

A. an application fee, not to exceed one hundred dollars ($100);

B. a license fee, not to exceed five hundred dollars ($500);

C. a registration fee, not to exceed two hundred fifty dollars ($250);

D. a renewal fee, not to exceed five hundred dollars ($500);

E. a reinstatement fee, not to exceed five hundred dollars ($500);

F. a late fee, not to exceed one hundred dollars ($100); and

G. an administrative fee, not to exceed two hundred dollars ($200)."

Section 21. A new section of the Private Investigations Act, Section 61-27A-8.1 NMSA 1978, is enacted to read:

"61-27A-8.1. [NEW MATERIAL] LICENSE AND REGISTRATION RENEWAL.--

A. A license or registration granted pursuant to the provisions of the Private Investigations Act shall be renewed by the department annually unless the term of the license is set by the department in rule to be a longer period.

B. A licensee or registrant with an expired license or registration shall not perform an activity for which a license or registration is required pursuant to the Private Investigations Act until the license or registration has been renewed or reinstated.

C. The department may require proof of continuing education credits or other proof of competency as a requirement of renewal or reinstatement of a license or registration.

D. A license or registration issued to a person pursuant to the Private Investigations Act shall not be transferred or assigned."

Section 22. Section 61-27A-9 NMSA 1978 (being Laws 1993, Chapter 212, Section 9) is amended to read:

"61-27A-9. DISPLAY OF LICENSE--NOTIFICATION OF CHANGES.--

A. A license shall at all times be posted in a conspicuous place in the principal place of business in New Mexico of the licensee.

[B. A licensee shall notify the department within thirty days after any change in his address, in the name under which he does business or in the officers or partners of the business.]

B. A copy of the registration of each registrant employed by a private investigation company or a private patrol company shall be maintained in the main New Mexico office of the company and in the branch office in which the registrant works.

C. A registration card issued by the department shall at all times be in the possession of and located on the person of a registrant.

D. A security guard shall wear the registration card on the outside of the guard's uniform so that the card is visible to others.

E. A licensee, including owners, officers or directors of a private investigation company or a private patrol company, or a registrant shall notify the department immediately in writing of a change in the mailing or contact address of the licensee or registrant.

F. Failure to notify the department within thirty days of changes required to be reported pursuant to this section or failure to carry or display a registration as required is grounds for suspension of a license or registration."

Section 23. A new section of the Private Investigations Act, Section 61-27A-10.1 NMSA 1978, is enacted to read:

"61-27A-10.1. [NEW MATERIAL] GENERAL OPERATIONS PROVISIONS OF COMPANIES--MANAGEMENT--LIABILITY FOR EMPLOYEES' CONDUCT--MAINTENANCE OF RECORDS REQUIRED--REQUIRED AND PERMITTED ACTIVITIES--ALLOWED CATEGORIES OF UNLICENSED EMPLOYEES.--

A. An owner of a private investigation company providing services in New Mexico shall operate, direct, control and manage that company provided that the owner is licensed as a private investigator. An owner of a private investigation company who is not licensed as a private investigator shall employ a private investigator as a private investigations manager and shall turn over the operation, direction, control and management of the private investigation company to that manager.

B. An owner of a private patrol company providing services in New Mexico shall operate, direct, control and manage that company, provided that the owner is licensed as a private patrol operator or registered as a level three security guard. An owner of a private patrol company who is not licensed as a private patrol operator or registered as a level three security guard shall employ a private patrol operations manager and shall turn over the operation, direction, control and management of the private patrol company to that manager.

C. A private investigation company or a private patrol company shall not conduct business under a fictitious name until the company has obtained the authorization for use of the name from the department. The department shall not authorize the use of a fictitious name that may generate public confusion with the name of a public officer or agency or the name of an existing private investigation company or private patrol company.

D. A private investigation company is liable for the conduct of the company's employees, including the conduct of its private investigations manager.

E. A private patrol company is liable for the conduct of the company's employees, including the conduct of its private patrol operations manager.

F. A private investigation company or a private patrol company shall maintain records of the qualifications, performance and training of all of its current and former employees as required by the department. The records are subject to inspection by the department upon reasonable notice to the owner or private investigations manager or private patrol operations manager.

G. Except as otherwise provided in this section, every employee of a licensed private investigation company or private patrol company shall be licensed or registered by the department as employees of the company with which the employee is employed; provided, however, that a licensee or registrant may work for more than one company concurrently.

H. A licensee or registrant shall notify the department in writing within thirty days of each change in the licensee's or registrant's employment by filing an amendment to the licensee's or registrant's application obtained from the department. If a licensee or registrant ceases to be employed by a private investigation company or a private patrol company, the licensee or registrant shall notify the department in writing within thirty days from the date the licensee or registrant ceases employment with that company.

I. A private investigation company or a private patrol company shall notify the department within thirty days of a change in ownership structure or, if a corporation, a change in the membership of the board of directors.

J. Employees of a private investigation company or a private patrol company who are engaged exclusively to perform stenographic, typing, word processing, secretarial, receptionist, accounting, bookkeeping, information technology or other business applications or support functions and who do not perform the work of a private investigator, a private patrol operator or a security guard are not required to be licensed or registered pursuant to the Private Investigations Act.

K. An individual who is not licensed or qualified to be employed as a private investigations manager or a private patrol operations manager shall not be employed to perform the duties required of those managers."

Section 24. Section 61-27A-11 NMSA 1978 (being Laws 1993, Chapter 212, Section 11) is amended to read:

"61-27A-11. BOND REQUIRED.--

A. A [license, except a manager's license and polygraph examiner's license, shall not be issued under the Private Investigators and Polygraphers Act unless the applicant files] private investigation company shall file with the department [(1)] a surety bond executed by a surety company authorized to do business in this state. [or

(2) a certificate of deposit in the sum of two thousand dollars ($2,000), conditioned for the faithful and lawful conduct of business by the applicant.

The form of bond, its execution and the sufficiency of the surety shall be verified by the department.

B. A licensee shall maintain the surety bond, and, upon failure to do so, the license of the licensee shall be suspended and shall not be reinstated until an application in the form prescribed by the department is filed, together with a proper surety bond. The department may deny the application, notwithstanding the applicant's compliance with this section:

(1) for any reason that would justify a refusal to issue or a suspension or a revocation of a license; or

(2) for the performance by the applicant of any practice while under suspension for failure to keep his bond in force for which a license under the Private Investigators and Polygraphers Act is required.]

B. The owner or the chief executive officer of a private investigation company that provides personal protection or bodyguard services or the owner or the chief executive office of a private patrol company shall maintain a general liability certificate of insurance in an amount required by the department.

C. [Bonds] A surety bond or a general liability certificate of insurance executed and filed with the department pursuant to the Private [Investigators and Polygraphers] Investigations Act shall remain in force until the surety company issuing the bond or the certificate has terminated future [liability] indemnity by [thirty-day] notice to the department."

Section 25. Section 61-27A-12 NMSA 1978 (being Laws 1993, Chapter 212, Section 12) is amended to read:

"61-27A-12. PROHIBITED ACTS.--

A. [Any] A licensee or [manager for the licensee] registrant may divulge to [any] a law enforcement officer or district attorney, the attorney general or [his] the attorney general's representatives [any] information [he] the licensee or registrant acquires concerning [any] a criminal offense, but [he] the licensee or registrant shall not divulge to any other person, except as [he] the licensee or registrant is required by law, [any] information acquired by [him] the licensee or registrant except at the direction of [his] the licensee's or registrant's employer or the client for whom the information was obtained.

B. No licensee [manager or employee of a licensee] or registrant shall knowingly make [any] a false report to [his] the licensee's or registrant's employer or the client for whom the information was being obtained.

C. No written report shall be submitted to a client except by the licensee, [the] private investigations manager or private patrol operations manager or a person authorized by either of them, and the person submitting the report shall exercise diligence in ascertaining whether the facts and information of the report are true and correct.

D. No [licensee, manager or employee of a] private investigator, private investigations manager or private investigations employee shall use a badge in connection with the official activities of the licensee's [business] or employee's employment for a private investigation company.

E. No licensee [manager or employee of a licensee] or registrant shall use a title or wear a uniform, use an insignia, use an identification card or make [any] a statement with the intent to give an impression that [he] the licensee or registrant is connected in any way with the federal or state government or [any] a political subdivision of either.

F. No private patrol operator licensee, [manager or employee of a private patrol operator licensee] private patrol operations manager or level three security guard shall use a badge except when engaged in guard or patrol work and while wearing a uniform.

G. No licensee or registrant shall appear as an assignee party in [any] a proceeding involving a claim and delivery [replevin or other possessory] action to recover or possess property or action for foreclosing a chattel mortgage, mechanic's lien, materialman's lien or any other lien.

H. A polygraph examiner shall not ask questions during the course of a polygraph examination relative to sexual affairs of an examinee, the examinee's race, creed, religion or union affiliation or [any] an activity not previously and specifically agreed to by written consent."

Section 26. Section 61-27A-13 NMSA 1978 (being Laws 1993, Chapter 212, Section 13) is amended to read:

"61-27A-13. DENIAL, SUSPENSION OR REVOCATION OF LICENSE OR REGISTRATION.--In accordance with procedures contained in the Uniform Licensing Act, the department may deny, suspend or revoke [any] a license or registration held or applied for under the Private [Investigators and Polygraphers] Investigations Act or reprimand or place on probation a licensee or registrant upon grounds that the licensee, registrant or applicant:

A. made a false statement or gave false information in connection with an application for a license or registration or renewal or reinstatement of a license or registration;

B. violated [any] a provision of the Private [Investigators and Polygraphers] Investigations Act;

C. violated [any] a rule of the department adopted pursuant to [that] the Private Investigations Act;

D. has been convicted of a felony or any crime involving moral turpitude or illegally using, carrying or possessing a deadly weapon;

E. impersonated or permitted or aided and abetted an employee of a private investigation company or private patrol company to impersonate a law enforcement officer or employee of the United States or of [any] a state or political subdivision of either;

F. committed or permitted [any] an employee of a private investigation company or a private patrol company to commit [any] an act while the license or registration of the person licensed or registered pursuant to the Private Investigations Act was expired that would be cause for the suspension or revocation of a license or registration or grounds for the denial of an application for a license or registration;

G. willfully failed or refused to render to a client services or a report as agreed between the parties, for which compensation has been paid or tendered in accordance with the agreement of the parties;

H. committed assault, battery or kidnapping or used force or violence on [any] a person without [proper] justification;

I. knowingly violated or advised, encouraged or assisted the violation of [any] a court order or injunction in the course of business of the licensee or registrant;

J. knowingly issued a worthless or otherwise fraudulent payroll check that is not redeemed within two days of denial of payment [of any] by a bank;

K. has been chronically or persistently inebriated or addicted to the illegal use of dangerous or narcotic drugs;

L. has been adjudged mentally incompetent or insane by regularly constituted authorities; [or]

M. while unlicensed, committed or aided and abetted the commission of any act for which a license is required under the Private [Investigators and Polygraphers] Investigations Act; or

N. has been found to have violated the requirements of a state or federal labor, tax or employee benefit law or rule."

Section 27. Section 61-27A-14 NMSA 1978 (being Laws 1993, Chapter 212, Section 14) is amended to read:

"61-27A-14. HEARING--PENALTIES.--[Every]

A. A person who is denied a license or [employee] registration or who has [his] a license or [employee] registration suspended or revoked shall be entitled to a hearing before the department if within twenty days after the denial, suspension or revocation a request for a hearing is [served on] received by the department. The procedures [outlined in] of the Uniform Licensing Act shall be followed pertaining to the hearing [insofar as] to the extent that they do not conflict with the provisions of the Private [Investigators and Polygraphers] Investigations Act.

B. In accordance with the provisions of the Uniform Licensing Act, and in addition to other penalties provided by law, the department may impose the following:

(1) for a violation of the Private Investigations Act, a civil penalty not to exceed one thousand dollars ($1,000) for each violation; and

(2) against a person who is found by the department to be engaging in a practice regulated by the department without an appropriate license or registration, civil penalties not to exceed one thousand dollars ($1,000)."

Section 28. Section 61-27A-16 NMSA 1978 (being Laws 1993, Chapter 212, Section 16) is amended to read:

"61-27A-16. LICENSE NOT TRANSFERABLE.--

A. A license or registration issued [under] pursuant to the Private [Investigators and Polygraphers] Investigations Act [is] shall not [transferable or reassignable] be transferred or assigned.

B. The department shall adopt by rule procedures for changes in the name or management of a private investigation company or private patrol company. If the private investigation company or private patrol company fails to comply with the procedures established by department rule, the private investigation company or private patrol company shall be considered to be operating without a license."

Section 29. Section 61-27A-17 NMSA 1978 (being Laws 1993, Chapter 212, Section 17) is amended to read:

"61-27A-17. LOCAL REGULATIONS.--The provisions of the Private [Investigators and Polygraphers] Investigations Act shall not prevent the local authorities of [any] a city [county or city and] or county by ordinance and within the exercise of the police power of [such city, county or] the city [and] or county from imposing local ordinances upon [any] a street patrol special officer or [upon any] on a person licensed [within the scope of] or registered pursuant to the Private [Investigators and Polygraphers] Investigations Act if the ordinances are consistent with that act."

Section 30. Section 61-27A-18 NMSA 1978 (being Laws 1993, Chapter 212, Section 18) is amended to read:

"61-27A-18. FUND ESTABLISHED.--[There]

A. The "private investigations fund" is created in the state treasury [the "private investigator and polygrapher fund"].

B. All license and registration fees received by the department pursuant to the Private [Investigators and Polygraphers] Investigations Act shall be deposited in the fund and [shall] are appropriated to the department to be used for the administration and implementation of that act.

C. The state treasurer shall invest the fund as other state funds are invested, and all income derived from investment of the fund shall be credited to the fund.

D. All balances in the fund shall remain in the fund and shall not revert to the general fund.

E. The department shall administer the fund, and money in the fund shall be expended by warrant issued by the secretary of finance and administration on vouchers signed by the superintendent of regulation and licensing.

F. No more than five percent of the fund shall be used by the department for administration of the fund."

Section 31. A new section of the Private Investigations Act, Section 61-27A-19.1 NMSA 1978, is enacted to read:

"61-27A-19.1. [NEW MATERIAL] FIREARMS.--A private investigator, a private patrol operator, a private investigations employee, a level three security guard or a private patrol operations employee may carry a firearm upon successful completion of the mandatory firearm training required by rules of the department."

Section 32. Section 61-27A-20 NMSA 1978 (being Laws 1993, Chapter 212, Section 20) is amended to read:

"61-27A-20. PENALTIES.--

A. A person who engages in a business regulated [under] by the Private [Investigators and Polygraphers] Investigations Act who fraudulently [represents himself to be] makes a representation as being a licensee or [registered employee] registrant is guilty of a misdemeanor and if convicted shall be [punished by a term of imprisonment less than one year or a fine of not more than one thousand dollars ($1,000) or both. A person] sentenced pursuant Section 31-19-1 NMSA 1978.

B. An individual who fraudulently represents that [he] the individual is employed by a licensee is guilty of a petty misdemeanor and if convicted shall be [punished by a term of imprisonment less than six months or a fine of not more than five hundred dollars ($500) or both] sentenced pursuant to Section 31-19-1 NMSA 1978.

[B.] C. A person who violates [a provision] a mandatory requirement, as set forth by the department in rule, of the Private [Investigators and Polygraphers] Investigations Act, [except as provided for in Subsection A of this section] is guilty of a petty misdemeanor except as provided in Subsection A of this section and if convicted shall be [punished by a fine of not more than five hundred dollars ($500) or by imprisonment for not more than six months or both] sentenced pursuant to Section 31-19-1 NMSA 1978."

Section 33. A new section of the Private Investigations Act is enacted to read:

"[NEW MATERIAL] RECIPROCITY.--

A. The department may enter into a reciprocity agreement with another state for the purpose of licensing or registering applicants to perform activities regulated by the Private Investigations Act.

B. An applicant from another state at the time of application for licensure or registration in New Mexico shall be licensed or registered in that other state to perform the services for which the applicant is seeking a New Mexico license or registration.

C. The department may develop rules that allow for reciprocity on a temporary or limited basis without requiring an applicant licensed or registered in another state subject to a reciprocity agreement to be licensed or registered in New Mexico; provided that the state of licensure or registration:

(1) has licensure or registration requirements that meet or exceed those of New Mexico;

(2) has no record of disciplinary action taken against the applicant in the last year; and

(3) can verify that the applicant has engaged in activities for at least one year in the state with reciprocity that are required to be licensed or registered pursuant to the Private Investigations Act."

Section 34. A new section of the Private Investigations Act is enacted to read:

"[NEW MATERIAL] BACKGROUND INVESTIGATIONS.--

A. The department shall adopt rules that:

(1) are developed in conjunction with the department of public safety that require background investigations of all persons licensed or registered pursuant to the Private Investigations Act to determine if the person has a criminal history;

(2) require all applicants for licensure or registration to be fingerprinted on two fingerprint cards or electronically as required for submission to the federal bureau of investigation to conduct a national criminal history investigation and for submission to the department of public safety to conduct a state criminal history investigation;

(3) provide for an applicant to inspect or challenge the validity of the record developed by the background investigation if the applicant is denied a license or registration; and

(4) establish a fee for fingerprinting and conducting a background investigation for an applicant.

B. Arrest record information received from the federal bureau of investigation and department of public safety shall be privileged and shall not be disclosed to individuals not directly involved in the decision affecting the specific applicant or employee.

C. The applicant shall pay the cost of obtaining criminal history information from the federal bureau of investigation and the department of public safety.

D. Electronic live scans may be used for conducting criminal history investigations."

Section 35. A new section of the Private Investigations Act is enacted to read:

"[NEW MATERIAL] TERMINATION OF AGENCY LIFE--DELAYED REPEAL.--The private investigations advisory board is terminated on July 1, 2011 pursuant to the Sunset Act. The board shall continue to operate according to the provisions of the Private Investigations Act until July 1, 2012. Effective July 1, 2012, Chapter 61, Article 27A NMSA 1978 is repealed."

Section 36. TEMPORARY PROVISION--TRANSITION.--

A. A security guard, watchman, loss prevention officer or patrolman licensed pursuant to the Private Investigators and Polygraphers Act prior to July 1, 2007 shall apply for registration pursuant to the Private Investigations Act prior to October 31, 2007 to receive registration without meeting the examination or educational requirements of the Private Investigations Act.

B. Between July 1, 2007 and October 31, 2007, an individual shall be registered as a level three security guard without examination or further qualification by the regulation and licensing department if the individual:

(1) worked as a security guard, watchman, loss prevention officer or patrolman for the five years immediately preceding July 1, 2007 and was licensed by the regulation and licensing department to perform that work; and

(2) was authorized pursuant to the Private Investigators and Polygraphers Act prior to July 1, 2007 to carry a firearm in the course of the individual's employment.

C. A security guard, watchman, loss prevention officer or patrolman who is not qualified pursuant to Subsection B of this section to be registered as a level three security guard shall be registered by the regulation and licensing department as a level one security guard if the individual applies for registration pursuant to the Private Investigations Act between July 1, 2007 and October 31, 2007, except as provided in Subsection D of this section.

D. If the regulation and licensing department finds, upon application by a security guard, watchman, loss prevention officer or patrolman who is employed in that capacity prior to July 1, 2007, that the applicant has applied in a timely manner and presents exceptional circumstances, as determined by the regulation and licensing department, in which the applicant demonstrates cause for that applicant to be registered as a level two security guard, the department in its discretion may register the security guard applicant as a level two security guard without examination or further qualification.

E. A private investigator or private patrol operator holding a certificate of deposit or surety bond in the sum of two thousand dollars ($2,000) shall be exempt from the bond provisions of the Private Investigations Act, provided that the private investigator's or private patrol operator's license remains current and the holder remains in good standing with the regulation and licensing department.

F. A rule adopted by the regulation and licensing department pursuant to the Private Investigators and Polygraphers Act shall remain in effect until the regulation and licensing department adopts rules to implement the Private Investigations Act.

G. The regulation and licensing department shall continue to register and license individuals pursuant to the Private Investigators and Polygraphers Act until July 1, 2007, or, if rules are not adopted by the regulation and licensing department to implement the Private Investigations Act by July 1, 2007, until the regulation and licensing department adopts rules to implement the Private Investigations Act. However, rules shall be adopted and the regulation and licensing department shall begin to license and register applicants pursuant to the Private Investigations Act no later than September 1, 2007.

H. Money in the private investigator and polygrapher fund is transferred on July 1, 2007 to the private investigations fund.

Section 37. REPEAL.--Sections 61-27A-7, 61-27A-8, 61-27A-10, 61-27A-19 and 61-27A-21 NMSA 1978 (being Laws 1993, Chapter 212, Sections 7, 8, 10 and 19 and Laws 2000, Chapter 4, Section 16, as amended) are repealed.

Section 38. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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