2009 California Business and Professions Code - Section 7520-7539 :: Article 3. Regulation, Licensing, And Registration

7520.  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.

7520.1.  (a) Notwithstanding any other provision of law, any person
engaging in a business as a private investigator who violates Section
7520 is guilty of an infraction subject to the procedures described
in Sections 19.6 and 19.7 of the Penal Code under either of the
following circumstances:
   (1) A complaint or a written notice to appear in court pursuant to
Chapter 5c (commencing with Section 853.5) of Title 3 of Part 2 of
the Penal Code is filed in court charging the offense as an
infraction unless the defendant, at the time he or she is arraigned,
after being advised of his or her rights, elects to have the case
proceed as a misdemeanor.
   (2) The court, with the consent of the defendant and the
prosecution, determines that the offense is an infraction in which
event the case shall proceed as if the defendant has been arraigned
on an infraction complaint.
   (b) This section does not apply to a violation of Section 7520 if
the defendant has had his or her license previously revoked or
suspended.
   (c) Notwithstanding any other provision of law, a violation of
Section 7520, which is an infraction, is punishable by a fine of one
thousand dollars ($1,000). No portion of the fine may be suspended by
the court unless as a condition of that suspension the defendant is
required to submit proof of a current valid license for the
profession of private investigator which was the basis for his or her
conviction.

7520.5.  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.

7521.  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, firm, company, association, partnership, or corporation
acting for the purpose of investigating, obtaining, and reporting to
any employer, its agent, supervisor, or manager, information
concerning the employer's employees involving questions of integrity,
honesty, breach of rules, or other standards of performance of job
duties.
   This section shall not apply to a public utility regulated by the
State Public Utilities Commission, or its employees.

7521.5.  (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 the private investigator provides those services, he or she
shall be subject to the jurisdiction of the disciplinary review
committee, pursuant to Section 7581.2, only with respect to violation
of the law or regulations relating to firearms.
   (e) 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
with the exception of the maintenance of an insurance policy.

7522.  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 such 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
his or her 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 of America, or of
this state or a political subdivision thereof, while the officer or
employee is engaged in the performance of his or her 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 his or her 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 Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of 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 his or her services or the services of
others as a private investigator or contracts for his or her 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 his or her duties
within the scope of his or her license as an insurance adjuster.
   (k) Any savings association subject to the jurisdiction of the
Commissioner of Financial Institutions or the Office of Thrift
Supervision.
   (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
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.

7523.  (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 penalty collected shall be deposited in
the Private Investigator Fund.
   (d) Any person who: (1) acts as or represents himself or herself
to be a private investigator licensee under this chapter when that
person is not a licensee under this chapter; (2) falsely represents
that he or she is employed by a licensee under this chapter when that
person is not employed by a licensee under this chapter; (3) carries
a badge, identification card, or business card, indicating that he
or she is a licensee under this chapter when that person is not a
licensee under this chapter; (4) uses a letterhead or other written
or electronically generated materials indicating that he or she is a
licensee under this chapter when that person is not a licensee under
this chapter; or (5) advertises that he or she is a licensee under
this chapter when that person is 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 Investigator 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 his or her
jurisdiction.

7523.5.  (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 Investigator Fund.
   (e) The remedy provided for by this section shall be in addition
to any other remedy provided for in this chapter.

7525.  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.

7525.1.  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 his or her experience qualifications.
   (e) (1) If the applicant is an individual, a qualified manager,
partner of a partnership or 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, or 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, and 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 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, or 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, and 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, under penalty of perjury by all of the partners and
qualified manager, or by all of the partners or the qualified
manager.
   (h) If the applicant for 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.

7526.  Before an application for a license is granted, the applicant
for a license or his or her 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.

7526.1.  (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.

7527.  The director may require an applicant or his or her manager,
to demonstrate his or her qualifications by a written or oral
examination, or a combination of both.

7527.1.  (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.

7527.5.  Payment of the application fee prescribed by this chapter
entitles an applicant or his or her 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.

7528.  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 a fee of fifty
dollars ($50).

7528.5.  The license shall at all times be posted in a conspicuous
place in the principal place of business of the licensee.

7529.  Upon the issuance of a license, a pocket card of the size,
design, and content as may be determined by the director shall be
issued by the bureau to each licensee, if an individual, or if the
licensee is a person other than an individual, to its manager and to
each of its officers and partners. The pocket card is evidence that
the licensee is licensed pursuant to this chapter. The card shall
contain the signature of the licensee, signature of the chief, and a
photograph of the licensee, or bearer of the card, if the licensee is
other than an individual. The card shall clearly state that the
person is licensed as a private investigator or is the manager or
officer of the licensee. The pocket card is to be composed of a
durable material and may incorporate technologically advanced
security features. The bureau may charge a fee sufficient to
reimburse the department's costs for furnishing the pocket card. The
fee charged may not exceed the actual direct costs for system
development, maintenance, and processing necessary to provide this
service, and may not exceed sixteen dollars ($16). When a person to
whom a card is issued terminates his or her position, office, or
association with the licensee, the card shall be surrendered to the
licensee and within five days thereafter shall be mailed or delivered
by the licensee to the bureau for cancellation. Every person, while
engaged in any activity for which licensure is required, shall
display his or her valid pocket card as provided by regulation.

7530.  A license issued under this chapter is not assignable.

7531.  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 manager.

7531.5.  Each licensee shall maintain a record containing
information relative to his or her employees as may be prescribed by
the director.

7532.  No licensee shall conduct a business under a fictitious or
other business name unless and until he or she has obtained the
written authorization of the bureau to do so.
   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.
   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.
   A licensee desiring to conduct his or her 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.
   The licensee shall pay a fee of twenty-five dollars ($25) 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 twenty-five dollars ($25) for the
authorization.

7533.  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.

7533.5.  (a) A licensee shall notify the bureau within 30 days of
any change in its corporate officers or 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.

7534.  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.

7535.  A licensee shall not advertise or conduct business from any
location other than that shown on the records of the bureau as his or
her principal place of business unless he or she has 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.

7536.  (a) The business of each licensee shall be operated under the
active direction, control, charge, or management, in this state, of
the licensee, if he or she is qualified, or the person who is
qualified to act as the licensee's manager, if the licensee is not
qualified.
   (b) No person shall act as a qualified manager of a licensee until
he or she has complied with each of the following:
   (1) Demonstrated his or her 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 he or she has
the qualifications prescribed in Section 7526 and that none of the
facts stated in Section 7538 or 7538.5 exist as to him or her.
   (c) A person shall not act as a qualified manager of more than
five licensees. The person acting as a qualified manager shall 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 he or
she is not conducting any business, but requests to maintain a
current license status with the bureau. Whenever the licensee resumes
conducting business, the licensee shall so inform the bureau in
writing within 30 days.
   (d) Any person acting as a qualified manager of a licensee shall
be the holder of a qualification certificate issued by the bureau.
The certificate, together with the current renewal certificate, shall
be predominantly displayed below the private investigator's license.

7537.  (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 manager, who has qualified as provided in Section 7536,
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 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 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.

7538.  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, has not, or if the applicant is a person
other than an individual, that its manager and each of its officers
have not:
   (a) Committed any act, which, if committed by a licensee, would be
a ground for the suspension or revocation of a license under this
chapter.
   (b) Committed any act constituting dishonesty or fraud.
   (c) Committed any act or crime constituting grounds for denial of
licensure under Section 480, including illegally using, carrying, or
possessing a deadly weapon.
   (d) Been refused a license under this chapter or had a license
revoked.
   (e) Been an officer, partner, or manager of any person who has
been refused a license under this chapter or whose license has been
revoked.
   (f) While unlicensed committed, or aided and abetted the
commission of, any act for which a license is required by this
chapter.
   (g) Knowingly made any false statement in his or her application.

7538.5.  The director may refuse to issue any license provided for
in this chapter to any person:
   (a) Who has had any license revoked, or whose license is under
suspension, or has failed to renew his or her license while it was
under suspension.
   (b) If any member of any partnership, or any officer or director
of any corporation, or any officer or person acting in a managerial
capacity of any firm or association has had any license issued to him
or her revoked, or whose license is under suspension, or who has
failed to renew his or her license while it was under suspension.
   (c) If any member of the partnership, or any officer or director
of the corporation, or any officer or person acting in a managerial
capacity of the firm or association, was either a member of any
partnership, or an officer or director of any corporation, or an
officer or person acting in a managerial capacity of any firm or
association, whose license has been revoked, or whose license is
under suspension, or who failed to renew a license while it was under
suspension, and while acting as such member, officer, director, or
person acting in a managerial capacity participated in any of the
prohibited acts for which any such license was revoked or suspended.

7539.  (a) Any licensee or officer, director, partner, or manager of
a licensee may divulge to any law enforcement officer or district
attorney, or his or her representative, any information he or she may
acquire as to any criminal offense, but he or she shall not divulge
to any other person, except as he or she may be required by law so to
do, any information acquired by him or her except at the direction
of the employer or client for whom the information was obtained.
   (b) No licensee or officer, director, partner, manager, or
employee of a licensee shall knowingly make any false report to his
or her employer or client for whom information was being obtained.
   (c) No written report shall be submitted to a client except by the
licensee, qualifying 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) No licensee, or officer, director, partner, manager, or
employee of a licensee shall use a badge in connection with the
official activities of the licensee's business.
   (e) No licensee, or officer, director, partner, manager, or
employee of a licensee, shall 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 he or she is connected in
any way with the federal government, a state government, or any
political subdivision of a state government.
   (f) No licensee, or officer, partner, qualified manager, or
employee of a licensee shall use any identification to indicate that
he or she is 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) No licensee, or officer, director, partner, manager, or
employee of a licensee, shall 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) No licensee shall permit an employee or agent in his or her
own name to advertise, engage clients, furnish reports or present
bills to clients, or in any manner whatever 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) No licensee, officer, director, partner, manager, or employee
of a licensee shall 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 which resulted in injury or death to that person or
damage to the property of that person. Nothing in this subdivision
shall 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 shall not apply
to any business agent or attorney employed by a labor organization.
No licensee, officer, director, partner, or manager of a licensee
shall pay or compensate any of his or her 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) No licensee shall use a fictitious business name in connection
with the official activities of the licensee's business, except as
provided by the bureau.