Regulation, Licensing, And Registration - Private Investigators - CA Business And Professions

Section § 7520

This law says that if a business is regulated by this chapter, you can't run it or pretend to be licensed unless you actually have the proper license. Also, you can't lie about working for someone who is licensed.

No person shall engage in a business regulated by this chapter; act or assume to act as, or represent himself or herself to be, a licensee unless he or she is licensed under this chapter; and no person shall falsely represent that he or she is employed by a licensee.

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(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7520.3

This law sets forth the insurance requirements for limited liability companies that hold a private investigator license. It mandates that these companies maintain liability insurance to cover claims resulting from their services. The minimum insurance amount varies based on the number of company members, with limits ranging from $1 million to $5 million. Companies must provide proof of insurance to the bureau, and failure to do so could lead to license suspension. During any suspension, each company member could be held personally liable for up to $1 million. Additionally, companies must report any claims paid out annually to the bureau, and these regulations remain effective until January 1, 2030.

(a) As a condition of the issuance, reinstatement, reactivation, or continued valid use of a license under this chapter, a limited liability company shall, in accordance with this section, maintain a policy or policies of insurance against liability imposed on or against it by law for damages arising out of claims based upon acts, errors, or omissions arising out of the private investigator services it provides.

(b) The total aggregate limit of liability under the policy or policies of insurance required under this section shall be as follows:

(1) For a limited liability company licensee with five or fewer persons named as members pursuant to subdivision (i) of Section 7525.1, the aggregate limit shall not be less than one million dollars ($1,000,000).

(2) For a limited liability company licensee with more than five persons named as members pursuant to subdivision (i) of Section 7525.1, an additional one hundred thousand dollars ($100,000) of insurance shall be obtained for each person named as members of the licensee except that the maximum amount of insurance is not required to exceed five million dollars ($5,000,000) in any one designated period, less amounts paid in defending, settling, or discharging claims as set forth under this section.

(c) Prior to the issuance, reinstatement, or reactivation of a limited liability company license as provided under this chapter, the applicant or licensee shall, in the manner prescribed by the bureau, submit the information and documentation required by this section and requested by the bureau, demonstrating compliance with the financial security requirements specified by this section.

(d) For any insurance policy secured by a licensee in satisfaction of this section, a Certificate of Liability Insurance, signed by an authorized agent or employee of the insurer, shall be submitted electronically or otherwise to the bureau. The insurer issuing the certificate shall report to the bureau the following information for any policy required under this section: name, license number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable. The insurer shall list the bureau as the certificate holder for the purposes of receiving notifications related to the policy’s status.

(e)

(1) If a licensee fails to maintain sufficient insurance as required by this section, or fails to provide proof of the required insurance upon request by the bureau, the license is subject to suspension and shall be automatically suspended pursuant to this subdivision until the date that the licensee provides proof to the bureau of compliance with the insurance coverage requirement.

(2) Prior to an automatic suspension, the bureau shall notify the licensee, in writing, that it has 30 days to provide proof to the bureau of having the required insurance or the license shall be automatically suspended.

(3) If the licensee fails to provide proof of insurance coverage within this period, the bureau may automatically suspend the license.

(f) If the license of a limited liability company is suspended pursuant to subdivision (e), each member of the limited liability company shall be personally liable up to one million dollars ($1,000,000) each for damages resulting to third parties in connection with the company’s performance, during the period of suspension, of any act or contract when a license is required by this chapter.

(g) A licensee organized as a limited liability company shall report annually to the bureau the date and amount of any claims paid during the prior calendar year from any general liability insurance policy held pursuant to this section. The licensee shall report the information on a form provided by the bureau. The licensee shall report the claim information no later than March 1. The creation of the form shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(h) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

liability insurance private investigator license limited liability company license suspension personal liability insurance coverage requirement claims reporting proof of insurance financial security requirements bureau notification aggregate insurance limit insurance policy documentation automatic suspension claims paid reporting policy compliance

(Amended by Stats. 2024, Ch. 484, Sec. 11. (SB 1454) Effective January 1, 2025. Repealed as of January 1, 2030, by its own provisions.)

Section § 7520.5

If a private investigator from another state wants to continue an investigation in California that started in their home state, they can do so for up to 60 days. This is allowed only if their state allows California investigators the same privilege. The investigator must inform the California Department in writing when they begin working in the state and follow all relevant rules. An investigation is considered to have 'originated' when investigative work starts after making a deal to carry out an investigation.

The director may authorize a licensed private investigator from another state to continue in this state for 60 days an investigation that originated in the state which is the location of the private investigator’s principal place of business if that state provides reciprocal authority for California’s licensees. The private investigator shall notify the department in writing upon entering the state for the purpose of continuing an investigation and shall be subject to all provisions of this chapter. For purposes of this section, “originated” means investigatory activities conducted subsequent to an agreement to conduct an investigation.

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(Amended by Stats. 2000, Ch. 216, Sec. 1. Effective January 1, 2001.)

Section § 7521

This law defines what a private investigator is and what they can do. It explains that a private investigator is someone who is not an insurance adjuster, and who is hired to find out information about crimes, people's habits or conduct, lost property, causes of losses or damages, or gather evidence for court cases. It clarifies that private investigators can also check on employees' integrity and honesty for their employers. However, this law does not apply to people working for public utilities regulated by the Public Utilities Commission.

A private investigator within the meaning of this chapter is a person, other than an insurance adjuster subject to the provisions of Chapter 1 (commencing with Section 14000) of Division 5 of the Insurance Code, who, for any consideration whatsoever engages in business or accepts employment to furnish or agrees to furnish any person to protect persons pursuant to Section 7521.5, or engages in business or accepts employment to furnish, or agrees to make, or makes, any investigation for the purpose of obtaining, information with reference to:

(a) Crime or wrongs done or threatened against the United States of America or any state or territory of the United States of America.

(b) The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of any person.

(c) The location, disposition, or recovery of lost or stolen property.

(d) The cause or responsibility for fires, libels, losses, accidents, or damage or injury to persons or to property.

(e) Securing evidence to be used before any court, board, officer, or investigating committee.

For the purposes of this section, a private investigator is any person, as defined in Section 7512.3, acting for the purpose of investigating, obtaining, and reporting to any employer, or an agent designated by the employer, information concerning the employer’s employees involving questions of integrity, honesty, breach of rules, or other standards of performance of job duties.

This section does not apply to a public utility regulated by the Public Utilities Commission, or its employees.

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(Amended by Stats. 2018, Ch. 92, Sec. 6. (SB 1289) Effective January 1, 2019.)

Section § 7521.5

This law explains that a private investigator can offer protection services for people, not property, as part of their investigative services. They must follow specific rules if they carry firearms, ensuring they have a valid firearms qualification. They also need to meet insurance requirements. If someone else works for the private investigator to provide these services, they need to be an official employee and follow the same rules.

(a) A private investigator may provide services to protect a person, but not property, which is incidental to an investigation for which the private investigator has been previously hired to perform.

(b) If the private investigator provides those services, he or she shall comply with the requirements of Article 4 (commencing with Section 7540), as those provisions relate to the carrying of firearms and the receipt of a valid firearms qualification card from the bureau.

(c) If the private investigator provides those services, he or she shall comply with the requirements of Sections 7583.39, 7583.40, and 7583.41, as those provisions relate to the maintenance of an insurance policy.

(d) If a person acts for, or on behalf of a private investigator in providing those services, that person shall be an employee of the private investigator, as defined by Section 7512.11, and there shall be an employer-employee relationship, as defined in Section 7512.12, and that person shall comply with the requirements of this section, except as provided in subdivisions (b) and (c).

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(Amended by Stats. 2017, Ch. 569, Sec. 10. (SB 559) Effective January 1, 2018.)

Section § 7522

This section outlines various exceptions to a particular chapter of law. It doesn't apply to people who work for a company that doesn't offer contract security services and don't use weapons. It also excludes federal and state officers doing official duties, people gathering financial ratings or public record information, nonprofit charities, attorneys, and insurance professionals while performing their duties. Banks, savings associations, and secured creditors, along with those repossessing property or serving legal documents, are also exempt. Furthermore, it includes consumer observation businesses using questionnaires merely for product or service feedback, not for employee evaluation or discipline, unless specific procedures are followed. Finally, joint labor-management committees monitoring compliance with public works laws are exempt too.

This chapter does not apply to:

(a) A person employed exclusively and regularly by any employer who does not provide contract security services for other entities or persons, in connection with the affairs of that employer only and where there exists an employer-employee relationship if that person at no time carries or uses any deadly weapon in the performance of that person’s duties. For purposes of this subdivision, “deadly weapon” is defined to include any instrument or weapon of the kind commonly known as a blackjack, slungshot, billy, sandclub, sandbag, metal knuckles, any dirk, dagger, pistol, revolver, or any other firearm, any knife having a blade longer than five inches, any razor with an unguarded blade and any metal pipe or bar used or intended to be used as a club.

(b) An officer or employee of the United States, or of this state or a political subdivision thereof, while the officer or employee is engaged in the performance of that officer’s or employee’s official duties, including uniformed peace officers employed part time by a public agency pursuant to a written agreement between a chief of police or sheriff and the public agency, provided the part-time employment does not exceed 50 hours in any calendar month.

(c) A person engaged exclusively in the business of obtaining and furnishing information as to the financial rating of persons.

(d) A charitable philanthropic society or association duly incorporated under the laws of this state which is organized and maintained for the public good and not for private profit.

(e) An attorney at law in performing the attorney’s duties as an attorney at law.

(f) Admitted insurers and agents and insurance brokers licensed by the state, performing duties in connection with insurance transacted by them.

(g) Any bank subject to the jurisdiction of the Commissioner of Financial Protection and Innovation under Division 1 (commencing with Section 99) of the Financial Code or the Comptroller of the Currency of the United States.

(h) A person engaged solely in the business of securing information about persons or property from public records.

(i) A peace officer of this state or a political subdivision thereof while the peace officer is employed by a private employer to engage in off-duty employment in accordance with Section 1126 of the Government Code. However, nothing herein shall exempt a peace officer who either contracts for the peace officer’s services or the services of others as a private investigator or contracts for the peace officer’s services as or is employed as an armed private investigator. For purposes of this subdivision, “armed private investigator” means an individual who carries or uses a firearm in the course and scope of that contract or employment.

(j) A licensed insurance adjuster in performing the adjuster’s duties within the scope of the adjuster’s license as an insurance adjuster.

(k) Any savings association subject to the jurisdiction of the Commissioner of Financial Protection and Innovation or the Comptroller of the Currency.

(l) Any secured creditor engaged in the repossession of the creditor’s collateral and any lessor engaged in the repossession of leased property in which it claims an interest.

(m) The act of serving process by an individual who is registered as a process server pursuant to Section 22350.

(n)

(1) A person or business engaged in conducting objective observations of consumer purchases of products or services in the public environments of a business establishment by the use of a preestablished questionnaire, provided that person or business entity does not engage in any other activity that requires licensure pursuant to this chapter. The questionnaire may include objective comments.

(2) If a preestablished questionnaire is used as a basis, but not the sole basis, for disciplining or discharging an employee, or for conducting an interview with the employee that might result in the employee being terminated, the employer shall provide the employee with a copy of that questionnaire using the same procedures that an employer is required to follow under Section 2930 of the Labor Code for providing an employee with a copy of a shopping investigator’s report. This subdivision does not exempt from this chapter a person or business described in paragraph (1) if a preestablished questionnaire of that person or business is used as the sole basis for evaluating an employee’s work performance.

(o) Any joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (Section 175a of Title 29 of the United States Code), or its employees, where either the committee or employee is performing a function authorized by the federal Labor Management Cooperation Act of 1978, which includes, but is not limited to, monitoring public works projects to ensure that employers are complying with federal and state public works laws.

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(Amended by Stats. 2022, Ch. 452, Sec. 4. (SB 1498) Effective January 1, 2023.)

Section § 7523

This law makes it clear that if you want to work as a private investigator in California, you must have a proper license unless you are specifically exempted. If you break this rule, or help someone else break it, you're committing a misdemeanor, which can result in a fine up to $5,000, up to one year in jail, or both. Pretending to be a licensed private investigator when you're not is even more serious, with potential fines up to $10,000 and similar jail time. Fines collected from these violations are allocated to local government funds or the Private Security Services Fund, depending on who prosecutes the case. Those convicted of violations will not be eligible for a private investigator license for one year after a first conviction and five years after subsequent convictions. The law also states that officials have a duty to investigate these violations and prosecute them when they occur.

(a) Unless specifically exempted by Section 7522, no person shall engage in the business of private investigator, as defined in Section 7521, unless that person has applied for and received a license to engage in that business pursuant to this chapter.

(b) Any person who violates any provision of this chapter or who conspires with another person to violate any provision of this chapter, relating to private investigator licensure, or who knowingly engages a nonexempt unlicensed person is guilty of a misdemeanor punishable by a fine of five thousand dollars ($5,000) or by imprisonment in the county jail not to exceed one year, or by both that fine and imprisonment.

(c) A proceeding to impose the fine specified in subdivision (b) may be brought in any court of competent jurisdiction in the name of the people of the State of California by the Attorney General or by any district attorney or city attorney, or with the consent of the district attorney, the city prosecutor in any city or city and county having a full-time city prosecutor for the jurisdiction in which the violation occurred. If the action is brought by the district attorney, the penalty collected shall be paid to the treasurer of the county in which the judgment is entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered and one-half to the treasurer of the county in which the judgment was entered. If the action is brought by the Attorney General, all of the penalties collected shall be deposited in the Private Security Services Fund.

(d) Any person who: (1) acts as or represents themselves to be a private investigator licensee under this chapter when they are not a licensee under this chapter; (2) falsely represents that they are employed by a licensee under this chapter when they are not employed by a licensee under this chapter; (3) carries a badge, identification card, or business card, indicating that they are a licensee under this chapter when they are not a licensee under this chapter; (4) uses a letterhead or other written or electronically generated materials indicating that they are a licensee under this chapter when they are not a licensee under this chapter; or (5) advertises that they are a licensee under this chapter when they are not a licensee, is guilty of a misdemeanor that is punishable by a fine of ten thousand dollars ($10,000) or by imprisonment in a county jail for not more than one year, or by both that fine and imprisonment.

(e) A proceeding to impose the fine specified in subdivision (d) may be brought in any court of competent jurisdiction in the name of the people of the State of California by the Attorney General or by any district attorney or city attorney, or with the consent of the district attorney, the city prosecutor in any city or city and county having a full-time city prosecutor for the jurisdiction in which the violation occurred. If the action is brought by the district attorney, the penalty collected shall be paid to the treasurer of the county in which the judgment is entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered and one-half to the treasurer of the county in which the judgment was entered. If the action is brought by the Attorney General, all of the penalty collected shall be deposited in the Private Security Services Fund.

(f) Any person who is convicted of a violation of the provisions of this section shall not be issued a license under this chapter, within one year following that conviction.

(g) Any person who is convicted of a violation of subdivision (a), (b), or (d) shall not be issued a license for a period of one year following a first conviction and shall not be issued a license for a period of five years following a second or subsequent conviction of subdivision (a), (b), or (d), or any combination of subdivision (a), (b), or (d).

(h) The chief shall gather evidence of violations of this chapter and of any rule or regulation established pursuant to this chapter by persons engaged in the business of private investigator who fail to obtain a license and shall gather evidence of violations and furnish that evidence to prosecuting officers of any county or city for the purpose of prosecuting all violations occurring within their jurisdiction.

(i) The prosecuting officer of any county or city shall prosecute all violations of this chapter occurring within their jurisdiction.

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(Amended by Stats. 2022, Ch. 511, Sec. 41. (SB 1495) Effective January 1, 2023.)

Section § 7523.5

This law allows a court to stop someone from breaking Section 7523 by issuing an injunction, which is a legal order, or imposing a fine of up to $10,000. The court can also require the person to pay back anyone harmed by their actions. If someone is ordered to stop or repay people, they might also have to cover the investigation costs. Legal actions to enforce these rules can be started by the state's Attorney General, or city and district attorneys, and fines collected go to local or state funds. These measures are additional to other legal penalties.

(a) The superior court in and for the county wherein any person has engaged or is about to engage in any act which constitutes a violation of Section 7523 may, upon a petition filed by the bureau with the approval of the director, issue an injunction or other appropriate order restraining this conduct and may impose civil fines not exceeding ten thousand dollars ($10,000). The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that there shall be no requirement to allege facts necessary to show or tending to show lack of adequate remedy at law or irreparable injury.

(b) The superior court for the county in which any person has engaged in any act which constitutes a violation of Section 7523 may, upon a petition filed by the bureau with the approval of the director, order this person to make restitution to persons injured as a result of the violation.

(c) The court may order a person subject to an injunction or restraining order, provided for in subdivision (a), or subject to an order requiring restitution pursuant to subdivision (b), to reimburse the bureau for expenses incurred by the bureau in its investigation related to its petition.

(d) A proceeding to impose the fine specified in subdivision (a) and enjoin the unlicensed operation may be brought in any court of competent jurisdiction in the name of the people of the State of California by the Attorney General or by any district attorney or city attorney, or with the consent of the district attorney, the city prosecutor in any city or city and county having a full-time city prosecutor for the jurisdiction in which the violation occurred. If the action is brought by the district attorney, the penalty collected shall be paid to the treasurer of the county in which the judgment is entered. If the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered and one-half to the treasurer of the county in which the judgment was entered. If the action is brought by the Attorney General, all of the penalty collected shall be deposited in the Private Security Services Fund.

(e) The remedy provided for by this section shall be in addition to any other remedy provided for in this chapter.

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(Amended by Stats. 2019, Ch. 377, Sec. 8. (SB 609) Effective January 1, 2020.)

Section § 7524

If you're hiring a private investigator in California, their services must be explained in a written agreement. This contract needs to detail their info, like their name, business address, and license number, plus the scope and timing of their work. It should also cover the fees you'll be paying, their billing practices, and whether you'll get a report afterward, including how you'll receive it. Any changes to this contract must also be written down. You have to have a copy of this contract before any work starts, and the investigator has to keep a copy of all documents for at least two years. There's also a deadline: any promised report should be provided within 30 days after the work is done. The law kicks in on July 1, 2025.

(a) Every agreement to provide a service regulated by this chapter, including, but not limited to, contract agreements and investigative agreements, shall be in writing. An initial client service agreement shall contain, but not be limited to, the following:

(1) The licensed private investigator’s name, business address, business telephone number, and license number.

(2) A disclosure that private investigators are licensed and regulated by the Bureau of Security and Investigative Services within the Department of Consumer Affairs.

(3) Approximate start and completion dates of the work to be provided.

(4) A description of the scope of the investigation or services to be provided. An agreement shall indicate whether or not a written report is to be provided to the client and the agreed upon method of delivery of that written report, as applicable.

(5) All labor, services, and materials to be provided for the scope of work conducted by the private investigator.

(6) An explanation of the fees agreed upon by the parties, including a breakdown of how the fees are assessed by the licensee.

(7) Any other matters agreed upon by the parties.

(b) Any amendment, addendum, or other modification to an initial client service agreement shall be in writing and is subject to the requirements of this section. An amendment, addendum, or other modification shall include a description of the changes to the scope of work, start and completion dates, method of delivery, fees to be charged, and other matters agreed upon in the initial client service agreement, as applicable.

(c)

(1) The initial client service agreement and any amendment, addendum, or other modification to the agreement shall be legible and clearly indicate any other document incorporated into it.

(2) Before any work commences, the client shall receive a signed copy of the written initial client service agreement and any amendment, addendum, or other modification to the agreement that was agreed to before commencement of the work.

(3) Services detailed under the scope of work shall not be performed and charges shall not accrue before written authorization to proceed is obtained from the client.

(d) Upon completion of the investigation, any written report, as agreed upon by all parties and indicated in the agreement, shall be provided to the client within 30 days from the completion date and in accordance with the agreed upon delivery method.

(e) The licensee shall maintain a legible copy of the signed agreement and investigative findings, including any written report, for a minimum of two years. These records shall be made available for inspection by the bureau upon demand.

(f) This section shall become operative on July 1, 2025.

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(Added by Stats. 2024, Ch. 484, Sec. 12. (SB 1454) Effective January 1, 2025. Operative July 1, 2025, by its own provisions.)

Section § 7525

If you want to apply for a license under this chapter, you need to fill out a specific form provided by the director and pay the required application fee.

An application for a license under this chapter shall be on a form prescribed by the director and accompanied by the application fee provided by this chapter.

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(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7525.1

This section outlines the requirements for business license applications. Applicants must provide their full name, business address, intended business name, nature of the business, and verified experience qualifications. Individuals, certain managers, or officers must submit identification forms with recent photos and fingerprints for a background check. The application process involves fees for fingerprint processing, details of employment history, and previous names used. In partnerships, all partners must state names and addresses, while corporations must provide information about key officers. The application should be verified under penalty of perjury. This section takes effect on January 1, 2030.

An application shall be verified and shall include:

(a) The full name and business address of the applicant.

(b) The name under which the applicant intends to do business.

(c) A statement as to the general nature of the business in which the applicant intends to engage.

(d) A verified statement of their experience qualifications.

(e)

(1) If the applicant is an individual, a qualified manager, a partner of a partnership, or an officer of a corporation designated in subdivision (h), one personal identification form provided by the bureau upon which shall appear a photograph taken within one year immediately preceding the date of the filing of the application together with two legible sets of fingerprints, one set of which shall be forwarded to the Federal Bureau of Investigation for purposes of a background check, on a form approved by the Department of Justice, and a personal description of each person, respectively. The identification form shall include residence addresses and employment history for the previous five years and be signed under penalty of perjury.

(2) The bureau may impose a fee not to exceed three dollars ($3) for processing classifiable fingerprint cards submitted by applicants, excluding those submitted into an electronic fingerprint system using electronic fingerprint technology.

(f) In addition, if the applicant for a license is an individual, the application shall list all other names known as or used during the past 10 years and shall state that the applicant is to be personally and actively in charge of the business for which the license is sought. If any other qualified manager is to be actively in charge of the business, the application shall be subscribed, verified, and signed by the applicant, under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed by that person under penalty of perjury.

(g) If the applicants for a license are copartners, the application shall state the true names and addresses of all partners and the name of the partner to be actively in charge of the business for which the license is sought and list all other names known as or used during the past 10 years. If a qualified manager other than a partner is to be actively in charge of the business, then the application shall be subscribed, verified, and signed by all of the partners under penalty of perjury. If any other person is to be actively in charge of the business, the application shall also be subscribed, verified, and signed under penalty of perjury by that person, by all of the partners and the qualified manager, or by all of the partners or the qualified manager.

(h) If the applicant for a license is a corporation, the application shall state the true names and complete residence addresses of the chief executive officer, secretary, chief financial officer, and any other corporate officer who will be active in the business to be licensed. The application shall also state the name and address of the designated person to be actively in charge of the business for which the license is sought. The application shall be subscribed, verified, and signed by a duly authorized officer of the applicant and by the qualified manager thereof, under penalty of perjury.

(i) Any other information, evidence, statements, or documents as may be required by the director.

(j) At the discretion of the applicant, a valid email address.

(k) This section shall become operative on January 1, 2030.

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(Amended (as amended by Stats. 2022, Ch. 625, Sec. 24) by Stats. 2024, Ch. 484, Sec. 14. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Section § 7525.2

To apply for a qualified manager license as a private investigator, you need to be 18 or older, show you have the necessary experience, and fill out a special application form. You also need to send in two photos, your fingerprints, your home address, and phone number, along with proof you've passed the licensing exam. Plus, you'll need to pay any required fees. Be honest on your application, because false answers can cause you to lose your license. This rule starts on January 1, 2025.

(a) An applicant for a qualified manager license shall satisfy all of the following requirements:

(1) Be at least 18 years of age.

(2) Demonstrate they meet the experience requirements specified in Sections 7541 and 7541.1.

(3) Complete and forward to the bureau a private investigator qualified manager license application on a form prescribed by the director and signed by the applicant.

(4) Submit to the bureau two recent photographs of the applicant of a type prescribed by the director, two classifiable sets of the applicant’s fingerprints or proof of completion of a live scan, and the applicant’s residence address and residence telephone number.

(5) Demonstrate passage of the private investigator licensing examination.

(6) Pay the required application and examination fees to the bureau, if applicable.

(b) The application form shall contain a statement informing the applicant that a false or dishonest answer to a question may be grounds for denial or subsequent suspension or revocation of a qualified manager license.

(c) This section shall become operative on January 1, 2025.

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(Added by Stats. 2023, Ch. 571, Sec. 3. (AB 1244) Effective January 1, 2024. Operative January 1, 2025, by its own provisions.)

Section § 7525.3

If you want to become a licensed private investigator or a qualified manager in California, you'll need to go through a fingerprint-based background check. This applies to individuals and key members of partnerships, corporations, and LLCs. The California Department of Justice handles this process and checks both state and national criminal history records.

(a) The bureau shall require each applicant for a private investigator license and qualified manager, as defined in Sections 7512.6, 7512.7, and 7521, to undergo a fingerprint-based state and national criminal history background check.

(b) Pursuant to subdivision (u) of Section 11105 of the Penal Code, the bureau shall submit to the Department of Justice fingerprint images and related information for each individual applicant, if the applicant is an individual, each partner, if the applicant is a partnership, each officer, if the applicant is a corporation, each member and manager, if the applicant is a limited liability company, and each qualified manager, as defined in Sections 7512.7, 7512.14, 7512.15, and 7525.1.

(c) The Department of Justice shall provide a state- and federal-level response pursuant to subdivision (p) of Section 11105 of the Penal Code.

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(Added by Stats. 2025, Ch. 113, Sec. 20. (SB 160) Effective September 17, 2025.)

Section § 7526

If you're applying for a license in this context, you or your manager need to do a few things before it gets approved. First, you have to be at least 18 years old. You also can't have done anything that would mean your application could be denied, like committing certain crimes. Furthermore, you need to follow the specific rules for the license you're trying to get, and meet any additional qualifications the director sets.

Before an application for a license is granted, the applicant for a license or his or her qualified manager shall meet all of the following:

(a) Be at least 18 years of age.

(b) Not have committed acts or crimes constituting grounds for denial of a license under Section 480.

(c) Comply with the requirements specified in this chapter for the particular license for which an application is made.

(d) Comply with other qualifications as the director may fix by rule.

license application requirements qualified manager age requirement grounds for denial Section 480 violations specific license rules director's qualifications applicant criteria compliance with requirements licensure conditions criminal history age eligibility chapter compliance additional qualifications

(Amended by Stats. 2017, Ch. 569, Sec. 13. (SB 559) Effective January 1, 2018.)

Section § 7526.1

This law allows the director to give a probationary license to applicants under certain conditions. The director can decide special terms like medical treatment, joining a rehab program, avoiding alcohol or drugs, and following all legal rules. If someone has had a conviction dismissed, they might get special consideration, especially if the conviction was dismissed under certain Penal Code sections. Applicants can also provide other evidence or character references to show they are rehabilitated. If the probationary terms need changing, the applicant can ask for modifications. There are standard rules for these probationary licenses, such as a three-year limit and requirements for supervision and progress reports.

(a) Notwithstanding any other provision of law, the director may, in his or her sole discretion, grant a probationary license to an applicant subject to terms and conditions deemed appropriate by the director, including, but not limited to, the following:

(1) Continuing medical, psychiatric, or psychological treatment.

(2) Ongoing participation in a specified rehabilitation program.

(3) Abstention from the use of alcohol or drugs.

(4) Compliance with all provisions of this chapter.

(b)

(1) Notwithstanding any other provision of law, and for purposes of this section, when deciding whether to grant a probationary license, the director shall request that an applicant with a dismissed conviction provide proof of that dismissal and shall give special consideration to applicants whose convictions have been dismissed pursuant to Section 1203.4 or 1203.4a of the Penal Code.

(2) The director shall also take into account and consider any other reasonable documents or individual character references provided by the applicant that may serve as evidence of rehabilitation as deemed appropriate by the director.

(c) The director may modify or terminate the terms and conditions imposed on the probationary license upon receipt of a petition from the applicant or licensee.

(d) For purposes of granting a probationary license to qualified new applicants, the director shall develop standard terms of probation that shall include, but not be limited to, the following:

(1) A three-year limit on the individual probationary license.

(2) A process to obtain a standard license for applicants who were issued a probationary license.

(3) Supervision requirements.

(4) Compliance and quarterly reporting requirements.

probationary license continuing treatment rehabilitation program abstention from substances dismissed conviction Penal Code 1203.4 character references rehabilitation evidence license modification probation terms three-year limit supervision requirements quarterly reporting standard license process

(Added by Stats. 2008, Ch. 675, Sec. 9. Effective January 1, 2009.)

Section § 7527

The director can ask a person applying for something, or their qualified manager, to prove they know what they're doing by taking a written or oral test, or even both.

The director may require an applicant or his or her qualified manager, to demonstrate his or her qualifications by a written or oral examination, or a combination of both.

applicant qualifications qualified manager written examination oral examination demonstrate qualifications director authority applicant testing qualification assessment applicant evaluation manager qualifications combined examinations director discretion skill demonstration

(Amended by Stats. 2017, Ch. 569, Sec. 14. (SB 559) Effective January 1, 2018.)

Section § 7527.1

This law states that when the bureau is creating or updating the licensing exam, they should think about including questions on privacy laws and professional ethics. They might even add a separate test just for professional ethics. If they decide this extra ethics test is needed, current license holders might have to take it too, but only if it's deemed appropriate.

(a) When creating or updating the licensing examination required pursuant to Section 7527, the bureau shall consider all of the following:

(1) Including in the examination questions on the subject of laws relating to privacy and professional ethics.

(2) Supplementing the examination with a separate examination on the subject of professional ethics.

(b) If the bureau determines pursuant to subdivision (a) that a separate professional ethics examination is necessary, the bureau shall require that current licensees take the separate professional ethics examination if this requirement is appropriate.

privacy laws professional ethics licensing examination separate ethics test current licensees examination questions exam update bureau requirements professional ethics examination appropriate requirement

(Added by Stats. 2001, Ch. 309, Sec. 2. Effective January 1, 2002.)

Section § 7527.5

This law states that when you pay the application fee, you or your qualified manager can take one exam for free. If you don't pass the exam, you'll need to pay a reexamination fee each time you want to retake it.

Payment of the application fee prescribed by this chapter entitles an applicant or his or her qualified manager to one examination without further charge. If the person fails to pass the examination, he or she shall not be eligible for any subsequent examination except upon payment of the reexamination fee prescribed by this chapter for each subsequent examination.

application fee examination reexamination fee qualified manager first exam free subsequent examination exam retake initial examination exam failure fee payment examination eligibility

(Amended by Stats. 2017, Ch. 569, Sec. 15. (SB 559) Effective January 1, 2018.)

Section § 7528

This law states that the chief is responsible for issuing licenses and deciding what they look like. Additionally, if a license holder requests it and pays a fee, they can get a "Certificate of Licensure."

The chief shall issue a license, the form and content of which shall be determined by the chief in accordance with Section 164. In addition, the chief shall issue a “Certificate of Licensure” to any licensee, upon request and upon the payment of the fee prescribed in Section 7570.

license issuance chief responsibilities Certificate of Licensure license form license content fee payment license request Section 164 Section 7570 licensing process professional licensing licensee

(Amended by Stats. 2019, Ch. 377, Sec. 9. (SB 609) Effective January 1, 2020.)

Section § 7528.5

A business must display its license in a spot that's easily visible at its main location.

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

license display conspicuous place principal place of business business location visible license posting licensee requirements mandatory display business compliance public visibility main business site license visibility license inspection compliance with display rules business environment client trust

(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7529

This law explains that when a license is issued or renewed every two years, the licensee gets an enhanced photo ID card. The card must include the licensee's name, photo, and expiration date, as well as state the license type and role. Individuals, partners, and corporate officers involved in the business, along with their qualified managers, receive these cards. The cards must be durably made, possibly with security features, and the costs can be included in the licensing fees. If someone leaves their licensed position, they have to return the card to their boss, who then sends it back for cancellation within five days. While working, everyone must show their valid ID card. The law starts operating on January 1, 2030.

(a) Upon the issuance of and with each biennial renewal of a license, a license in the form of an enhanced photo identification card of the size, design, and content as may be determined by the director or the director’s designee shall be issued by the bureau to each licensee, as follows:

(1) If the licensee is an individual, the enhanced photo identification card shall be issued to the licensee and to the licensee’s qualified manager.

(2) If the licensee is a partnership, the enhanced photo identification card shall be issued to each partner of the partnership licensee active in the business and to the licensee’s qualified manager.

(3) If the licensee is a corporation, the enhanced photo identification card shall be issued to each officer active in the business and to the licensee’s qualified manager.

(4) If a licensee holds a qualified manager license, the enhanced photo identification card shall be issued to the qualified manager licensee.

(b) The enhanced photo identification card is evidence that the licensee is licensed pursuant to this chapter. The card shall contain the name of the licensee, license expiration date, and a photograph of the licensee. The enhanced photo identification card shall clearly state that the person is licensed as a private investigator or is the qualified manager or officer of the licensee. The enhanced photo identification card is to be composed of a durable material and may incorporate technologically advanced security features. The bureau may recover its costs in an amount sufficient to reimburse the department’s costs for furnishing the enhanced photo identification card. The fee charged shall not exceed the actual direct costs for system development, maintenance, and processing necessary to provide this service. The total amount of costs shall be recovered by including that amount in the fee charged for the initial application of and renewal of licensure. When the position, office, or association with a licensee belonging to a person to whom a card is issued is terminated, the person shall surrender the card to the licensee and, within five days thereafter, the licensee shall mail or deliver the card to the bureau for cancellation. Every person, while engaged in any activity for which licensure is required, shall display the person’s valid enhanced photo identification card as provided by regulation.

(c) This section shall become operative on January 1, 2030.

enhanced photo identification card biennial renewal qualified manager corporate officers durable material security features license expiration date private investigator fee charged licensing fees card cancellation valid ID card system development costs position termination operative January 1 2030

(Amended (as amended by Stats. 2023, Ch. 571, Sec. 4) by Stats. 2024, Ch. 484, Sec. 16. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Section § 7530

Generally, licenses under this chapter cannot be transferred to others. However, if certain conditions are met, a license holder can request permission to transfer the license to another business. This is allowed only if the business owners before and after the transfer remain the same. There's also a fee involved in processing this request.

(a) Except as provided in this section, a license issued under this chapter is not assignable.

(b) A licensee may apply to the chief for consent, and upon receipt of the consent and payment of the processing fee authorized by Section 7570, may assign a license to another business entity as long as the direct and indirect owners of the assignor own all of the assignee immediately after the assignment.

license transfer assignment consent business entity processing fee direct owners indirect owners assignor assignee license non-assignability owner requirements

(Amended (as amended by Stats. 2014, Ch. 669, Sec. 8) by Stats. 2017, Ch. 569, Sec. 18. (SB 559) Effective January 1, 2018. See version added by Sec. 9 of Stats. 2014, Ch. 669.)

Section § 7531

This law means that if you have a business license, you are always legally accountable for how your employees and agents behave in your business, including the actions of your manager.

A licensee shall at all times be legally responsible for the good conduct in the business of each of his or her employees or agents, including his or her qualified manager.

licensee responsibility employee conduct business accountability agent behavior oversight manager conduct legal responsibility business operations employee oversight agent supervision professional conduct regulation business management qualified manager responsibility

(Amended by Stats. 2017, Ch. 569, Sec. 19. (SB 559) Effective January 1, 2018.)

Section § 7531.5

If you have a license, you need to keep records about your employees in a way that the director specifies.

Each licensee shall maintain a record containing information relative to his or her employees as may be prescribed by the director.

licensee record employee information director requirements record maintenance licensee responsibilities employment records information documentation data recordkeeping prescribed information compliance with regulations

(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7532

If you have a business license and want to use a different business name, like a fictitious name, you need written approval from the relevant bureau first. The bureau won't approve any name that's too similar to another business or public agency name to avoid public confusion. Also, before using any fictitious name, you must follow specific rules outlined in a separate legal chapter. If you want to use more than one fictitious name, each needs separate approval. There is a fee for each fictitious name you want to use, which can range from $75 to $82.

(a) No licensee shall conduct a business under a fictitious or other business name unless and until the licensee has obtained the written authorization of the bureau to do so.

(b) The bureau shall not authorize the use of a fictitious or other business name which is so similar to that of a public officer or agency or of that used by another licensee that the public may be confused or misled thereby.

(c) The authorization shall require, as a condition precedent to the use of any fictitious name, that the licensee comply with Chapter 5 (commencing with Section 17900) of Part 3 of Division 7.

(d) A licensee desiring to conduct their business under more than one fictitious business name shall obtain the authorization of the bureau in the manner prescribed in this section for the use of each name.

(e) The licensee shall pay a fee of at least seventy-five dollars ($75), which may be increased to not more than eighty-two dollars ($82), for each authorization to use an additional fictitious business name and for each change in the use of a fictitious business name. If the original license is issued in a nonfictitious name and authorization is requested to have the license reissued in a fictitious business name, the licensee shall pay a fee of at least seventy-five dollars ($75), which may be increased to not more than eighty-two dollars ($82), for the authorization.

fictitious business name written authorization bureau approval public confusion licensee obligations additional fees name similarity public officer names business name change business conduct rules separate legal chapter fee structure multiple business names compliance requirements name reissue fee

(Amended by Stats. 2019, Ch. 377, Sec. 10. (SB 609) Effective January 1, 2020.)

Section § 7533

This law requires that anyone with a license must provide the bureau with the full address of their main office, including street and number or post office box. The director might also ask for additional information to help identify where the main business is located.

Each licensee shall file with the bureau the complete address of his or her principal place of business including the name and number of the street, or, if the street where the business is located is not numbered, the number of the post office box. The director may require the filing of other information for the purpose of identifying the principal place of business.

licensee address principal place of business bureau filing requirement business location identification full business address director information requirement street address post office box business identification address filing location details address submission identifying business location information filing

(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7533.2

If you are applying for a new license or changing your current license and your business is a limited liability company (LLC), you need to inform the bureau when you apply. This information will then be displayed on the Department of Consumer Affairs website. This rule started being enforced on July 1, 2018.

(a) At the time of an initial application for licensure or reassignment, an applicant for an initial license or a licensee applying for reassignment of the license shall notify the bureau on the application for licensure or reassignment if the applicant or licensee is a limited liability company for the purposes of this chapter during the period of licensure. The bureau shall include this information on the Department of Consumer Affairs BreEZe License Verification Internet Web page.

(b) This section shall become operative on July 1, 2018.

limited liability company initial application license reassignment notify bureau BreEZe License Verification Department of Consumer Affairs internet web page licensure applicant licensee

(Added by Stats. 2017, Ch. 569, Sec. 20. (SB 559) Effective January 1, 2018. Section operative July 1, 2018, by its own provisions.)

Section § 7533.5

If a licensed business in California changes its corporate officers or adds a new partner, they must inform the appropriate bureau within 30 days. New officers or partners have to fill out forms set by the director. If these new people have done anything that would normally disqualify someone from getting a license or that warrants disciplinary action, the director can suspend or revoke the business’s license. This rule starts being enforced on January 1, 2030.

(a) A licensee shall notify the bureau within 30 days of any change in its corporate officers required to be named pursuant to subdivision (h) of Section 7525.1, and of any addition of a new partner.

(b) Applications, on forms prescribed by the director, shall be submitted by all new officers and partners. The director may suspend or revoke a license issued under this chapter if the director determines that the new officer or partner of a licensee has committed any of the acts constituting grounds to deny an application for a license or to take disciplinary action against a licensee pursuant to Section 7538 or 7538.5, respectively.

(c) This section shall become operative on January 1, 2030.

corporate officers change new partner notification license suspension license revocation disciplinary action application forms grounds for denial business license requirements notification deadline bureau update California business compliance subdivision (h) Section 7525.1 Section 7538 Section 7538.5

(Amended (as amended by Stats. 2022, Ch. 625, Sec. 28) by Stats. 2024, Ch. 484, Sec. 18. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Section § 7534

If you have a business license and are advertising your services, your ad must include your business name, address or phone number, and the license number exactly as they appear in official records. This applies to all types of ads, including business cards, brochures, newsletters, printed ads, and even phone book listings.

Every advertisement by a licensee soliciting or advertising business shall contain his or her business name, business address or telephone number, and license number as they appear in the records of the bureau. For the purposes of this section, “advertisement” shall include any business card, stationery, brochure, flyer, circular, newsletter, fax form, printed or published paid advertisement in any media form, or telephone book listing. Every advertisement by a licensee soliciting or advertising their business shall contain his or her business name, business address or telephone number, and license number, as they appear in the records of the bureau.

advertisements business license license number business name business address telephone number media advertisements business cards stationery brochures flyers newsletters telephone book listing bureau records advertising requirements

(Added by Stats. 1994, Ch. 1285, Sec. 4. Effective January 1, 1995.)

Section § 7535

If you hold a license as a private investigator in California, you're required to do business only at your main registered location unless you get a special permit for another branch. You must inform the bureau in writing if you shut down or change the address of any branch within 30 days. At your branch, you need to display your branch certificate and manager certificate you've obtained with your main license. These rules start applying on January 1, 2025.

(a) A licensee shall not advertise or conduct business from any location other than that shown on the records of the bureau as their principal place of business unless they have received a branch office certificate for the location after compliance with the provisions of this chapter and any additional requirements necessary for the protection of the public as the director may by regulation prescribe. A licensee shall notify the bureau in writing within 30 days after closing or changing the location of a branch office.

(b) The branch office certificate shall be posted below the private investigator operator’s license. The qualified manager certificate shall be posted below the branch office certificate.

(c) This section shall become operative on January 1, 2025.

private investigator branch office certificate principal place of business licensee requirements business location compliance bureau notification public protection qualified manager certificate operative date January 1 2025

(Repealed (in Sec. 5) and added by Stats. 2023, Ch. 571, Sec. 2. (AB 1244) Effective January 1, 2024. Operative January 1, 2025, by its own provisions.)

Section § 7536

This section talks about how private investigator businesses in California need to be run by the licensee or a qualified manager who meets certain requirements. To be a qualified manager, a person must pass exams or meet set qualifications and not have certain negative factors in their history. A qualified manager can oversee up to five different businesses, but they share responsibility for everything the business does. A separate license and certificate are required depending if the manager wants to oversee their own business or additional ones. These credentials must be clearly displayed with the business license. This law will be active starting January 1, 2025.

(a) The business of each licensee shall be operated under the active direction, control, charge, or management, in this state, of the licensee, if they are qualified, or the person who is qualified to act as the licensee’s qualified manager, if the licensee is not qualified.

(b) No person shall act as a qualified manager of a licensee until they have complied with each of the following:

(1) Demonstrated their qualifications by a written or oral examination, or a combination of both, if required by the director.

(2) Made a satisfactory showing to the director that they have the qualifications prescribed in Section 7526 and that none of the facts stated in Section 7538 or 7538.5 exist as to them.

(c) If the holder of a qualified manager certificate wishes to be associated with more than their own private investigator license, they shall apply to the bureau for a qualified manager license in accordance with Section 7525.2. A person shall not act as a qualified manager of more than five licensees. The person acting as a qualified manager shall possess a qualified manager license and share equally with the licensee the responsibility and any liability for the conduct of the business of the licensee and the actions of the employees and other personnel of the licensee. This section shall not apply to any licensee that notifies the bureau in writing that they are not conducting any business, but requests to maintain a current license status with the bureau. Whenever the licensee resumes conducting business, the licensee shall inform the bureau in writing within 30 days.

(d) Any person acting as a qualified manager of their own private investigator license shall be the holder of a qualified manager certificate issued by the bureau. The certificate shall be predominantly displayed below the private investigator’s license. Any person acting as qualified manager of an additional private investigator license shall be the holder of a qualified manager license issued by the bureau. A copy of the qualified manager license shall be predominantly displayed below the private investigator’s license.

(e) This section shall become operative on January 1, 2025.

qualified manager private investigator business management qualified manager certificate application requirements manager license manager qualifications liability sharing business operations display certificate January 1 2025 examination requirements notification to bureau private investigation business compliance qualifications

(Repealed (in Sec. 7) and added by Stats. 2023, Ch. 571, Sec. 2. (AB 1244) Effective January 1, 2024. Operative January 1, 2025, by its own provisions.)

Section § 7537

If a person licensed individually dies, their immediate family can run the business under the same license for 120 days if they apply within 30 days. After that, the license is canceled. If the business's qualified manager leaves, the business must notify the bureau within 30 days to keep the license valid for up to 90 days or longer if approved. Failure to notify results in suspension. For a partnership, similar rules apply when a partner dies or leaves, with the license staying valid for 90 days if the bureau is notified. All extended licenses must follow the usual rules.

(a) In case of the death of a person licensed as an individual, a member of the immediate family of the deceased licensee shall be entitled to continue the business under the same license for 120 days following the death of the licensee, provided that written application for permission is made to the bureau within 30 days following the death of the licensee. At the end of the 120-day period, the license shall be automatically canceled. If no request is received within the 30-day period, the license shall be automatically canceled at the end of that period.

(b) If the qualified manager ceases for any reason whatsoever to be connected with the licensee to whom the license is issued, the licensee shall notify the bureau in writing 30 days from this cessation. If the notice of cessation is filed timely, the license shall remain in force for a period of 90 days after cessation or for an additional period, not to exceed one year, as approved by the director, pending the qualification of another qualified manager as provided in this chapter. After the 90-day period or additional period, as approved by the director, the license shall be automatically suspended, unless the bureau receives written notification that the license is under the active charge of a qualified manager. If the licensee fails to notify the bureau within the 30-day period, his or her license shall be automatically suspended and may be reinstated only upon the filing of an application for reinstatement, payment of the reinstatement fee, and the qualification of a qualified manager as provided in this chapter.

(c) In the case of the death or disassociation of a partner of an entity licensed as a partnership, the licensee shall notify the bureau, in writing, within 30 days from the death or disassociation of the individual. If notice is given, the license shall remain in force for 90 days following the death or disassociation. At the end of this period the license shall be automatically canceled. If the licensee fails to notify the bureau within the 30-day period, the license shall be automatically canceled.

(d) A license extended under this section is subject to all other provisions of this chapter.

individual licensee death family continuation of business qualified manager cessation license suspension reinstatement process partnership death partnership disassociation bureau notification requirement license automatic cancellation written application for permission license extension provisions qualified manager qualifications 30-day notice deadline automatic license cancellation reinstatement fee

(Amended by Stats. 2017, Ch. 569, Sec. 24. (SB 559) Effective January 1, 2018.)

Section § 7538

If someone is applying for a license, the director can deny it after a hearing if the applicant or their manager has, for example, committed fraud or dishonesty, been involved in acts that could lead to losing a license, used weapons illegally, or lied on the application. This rule will start on January 1, 2030.

(a) After a hearing the director may deny a license unless the applicant makes a showing satisfactory to the director that the applicant, if an individual, and the applicant’s qualified manager have not, or, if the applicant is a person other than an individual, that its qualified manager and each of its officers and partners have not:

(1) Committed any act that, if committed by a licensee, would be a ground for the suspension or revocation of a license under this chapter.

(2) Committed any act constituting dishonesty or fraud.

(3) Committed any act or crime constituting grounds for denial of licensure under Section 480, including illegally using, carrying, or possessing a deadly weapon.

(4) Been refused a license under this chapter or had a license revoked.

(5) Been an officer, partner, or qualified manager of any person who has been refused a license under this chapter or whose license has been revoked.

(6) While unlicensed committed, or aided and abetted the commission of, any act for which a license is required by this chapter.

(7) Knowingly made any false statement in their application.

(b) This section shall become operative on January 1, 2030.

license denial qualified manager dishonesty fraud deadly weapon application falsehood hearing grounds for denial licensure revoked license unlicensed activity officers and partners Section 480 committed acts license refusal

(Amended (as amended by Stats. 2022, Ch. 625, Sec. 30) by Stats. 2024, Ch. 484, Sec. 20. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Section § 7538.5

This law allows the director to refuse to issue a license if an individual falls into certain categories related to past licensing problems. If someone's license was revoked or suspended, or if they did not renew their license while it was suspended, they may not be able to get a new license. This can also apply if the individual was a partner or a corporate officer when those businesses had their licenses revoked or suspended, especially if they were involved in any wrongdoing that led to the license issues. The rule will start being enforced on January 1, 2030.

(a) The director may refuse to issue any license provided for in this chapter to any of the following:

(1) An individual who has had any license revoked, has a license currently under suspension, or failed to renew their license while under suspension.

(2) An individual who, while acting as a partner of a partnership, or an officer or director of a corporation, had their license revoked, has a license currently under suspension, or failed to renew their license while under suspension.

(3) An individual, who, while acting as a partner of the partnership, or an officer or director of the corporation, meets both of the following conditions:

(A) The individual was a partner of any partnership, or an officer or director of any corporation, whose license was revoked, is currently under suspension, or was not renewed while under suspension.

(B) The individual, while acting as a partner, officer, or director, participated in any of the prohibited acts for which the license was revoked or suspended.

(4) An individual who is serving or has served as the qualified manager for any licensee that has had its license revoked, is currently under suspension, or failed to renew while under suspension.

(b) This section shall become operative on January 1, 2030.

license revocation license suspension qualified manager licensing refusal corporate officer partnership prohibited acts business license license renewal enforcement date individual responsibilities business wrongdoing director authority

(Amended (as amended by Stats. 2022, Ch. 625, Sec. 32) by Stats. 2024, Ch. 484, Sec. 22. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Section § 7539

This law outlines rules for private investigators and similar professionals. They can share information about crimes with law enforcement but must keep other information private unless told otherwise by their client. They should not make false reports or enter private places without permission. Reports to clients must be truthful and are only submitted by authorized individuals. Use of fake badges, uniforms, or anything suggesting government affiliation is banned. Workers can’t advertise services in their own name and must operate under the licensed business. Soliciting work from injured people directly is prohibited unless through specific intermediaries like attorneys. The use of fictitious business names is generally not allowed.

(a) A licensee or officer, director, partner, or qualified manager of a licensee may divulge to any law enforcement officer or district attorney, or their representative, any information they may acquire as to any criminal offense, but they shall not divulge to any other person, except as otherwise required by law, any information acquired by them except at the direction of the employer or client for whom the information was obtained.

(b) A licensee or officer, director, partner, qualified manager, or employee of a licensee shall not knowingly make any false report to their employer or client for whom information was being obtained.

(c) A written report shall not be submitted to a client except by the licensee, qualified manager, or a person authorized by one or either of them, and the person submitting the report shall exercise diligence in ascertaining whether or not the facts and information in the report are true and correct.

(d) A licensee, or officer, director, partner, qualified manager, or employee of a licensee shall not use a badge in connection with the official activities of the licensee’s business.

(e) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not use a title, or wear a uniform, or use an insignia, or use an identification card, or make any statement with the intent to give an impression that they are connected in any way with the federal government, a state government, or any political subdivision of a state government.

(f) A licensee, or officer, partner, qualified manager, or employee of a licensee shall not use any identification to indicate that they are licensed as a private investigator other than the official identification card issued by the bureau or the business card regularly used by the business. However, a licensee may issue an employer identification card.

(g) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not enter any private building or portion thereof, except premises commonly accessible to the public, without the consent of the owner or of the person in legal possession thereof.

(h) A licensee shall not permit an employee or agent in their own name to advertise, engage clients, furnish reports or present bills to clients, or in any manner conduct business for which a license is required under this chapter. All business of the licensee shall be conducted in the name of and under the control of the licensee.

(i) A licensee, or officer, director, partner, qualified manager, or employee of a licensee, shall not knowingly and directly solicit employment from any person who has directly sustained bodily injury or from that person’s spouse or other family member to obtain authorization on behalf of the injured person as an investigator to investigate the accident or act that resulted in injury or death to that person or damage to the property of that person. This subdivision does not prohibit the soliciting of employment from that injured person’s attorney, insurance company, self-insured administrator, insurance adjuster, employer, or any other person having an indirect interest in the investigation of the injury. This subdivision does not apply to any business agent or attorney employed by a labor organization. A licensee, officer, director, partner, or qualified manager of a licensee shall not pay or compensate any of their employees or agents on the basis of a bonus, bounty, or quota system whereby a premium is placed on the number of employer or client rule violations or infractions purportedly discovered as a result of any investigation made by a licensee.

(j) A licensee shall not use a fictitious business name in connection with the official activities of the licensee’s business, except as provided by the bureau.

(k) This section shall become operative on January 1, 2030.

private investigator rules false reports law enforcement disclosure client confidentiality badge usage government affiliation unauthorized entry advertising restrictions direct solicitation compensation bans fictitious business name authorized identification client reports injury solicitation premises access

(Amended (as amended by Stats. 2022, Ch. 625, Sec. 34) by Stats. 2024, Ch. 484, Sec. 24. (SB 1454) Effective January 1, 2025. Operative January 1, 2030, by its own provisions.)

Private Investigators

Article 3Regulation, Licensing, and Registration

Section § 7520

Section § 7520.3

Section § 7520.5

Section § 7521

Section § 7521.5

Section § 7522

Section § 7523

Section § 7523.5

Section § 7524

Section § 7525

Section § 7525.1

Section § 7525.2

Section § 7525.3

Section § 7526

Section § 7526.1

Section § 7527

Section § 7527.1

Section § 7527.5

Section § 7528

Section § 7528.5

Section § 7529

Section § 7530

Section § 7531

Section § 7531.5

Section § 7532

Section § 7533

Section § 7533.2

Section § 7533.5

Section § 7534

Section § 7535

Section § 7536

Section § 7537

Section § 7538

Section § 7538.5

Section § 7539

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