69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2027
A-Engrossed
House Bill 2383
Ordered by the House June 9
Including House Amendments dated June 9
Sponsored by Representative CORCORAN
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Establishes licensing and registration system for investigators
and operatives. Defines terms. Exempts certain persons.
Prescribes qualifications for license and registration.
Establishes Oregon Board of Investigators.
Imposes civil penalties.
Creates crime of knowingly falsifying fingerprints, photographs
or other data pertinent to application for license or
registration. Punishes by maximum of one year's imprisonment,
$5,000 fine, or both. Creates crime of knowingly practicing as an
investigator { + or operative + } without a license. Punishes by
maximum of { - one year's imprisonment, $5,000 fine, - }
{ + six months' imprisonment, $2,000 fine, + } or both.
Requires moneys received by board to be paid into { - General
Fund in Bureau of Labor and Industries Account and - }
{ + account established by board + } to be used for
{ - purposes of Act - } { + carrying out functions of
board + }.
A BILL FOR AN ACT
Relating to investigators; creating new provisions; amending ORS
181.871; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 19 of this Act, unless
the context otherwise requires:
(1) 'Board' means the Oregon Board of Investigators.
(2) 'Client' means a person that engages an investigator, firm,
partnership, corporation or other entity for the purpose of
conducting lawful activity on the person's behalf.
(3) 'Employee' means an individual who works for an employer,
is listed on the employer's payroll records and is under the
employer's direction and control.
(4) 'Employer' means a person, other than an investigator, that
employs an individual for wages or salary and lists the
individual on the employer's payroll records.
(5) 'Investigator' means a person who is a licensed
investigator under section 7 of this Act that engages in the
business of obtaining or furnishing, or that solicits or accepts
employment to obtain or furnish, information with reference to:
(a) Crimes or wrongs done or threatened against the United
States or any state or territory of the United States;
(b) The identity, habits, conduct, business, occupation,
honesty, integrity, credibility, knowledge, trustworthiness,
efficiency, loyalty, activities, movements, 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 of or responsibility for fires, libels, losses,
accidents, damages or injuries to persons or property; or
(e) Evidence to be used before any court, board, officer,
referee, arbitrator or investigation committee.
(6) 'Operative' means a person who is a registered operative
under section 7 of this Act and who performs all work under the
direct supervision and control of a licensed investigator or an
attorney admitted to practice in this state. + }
SECTION 2. { + No person shall act as an investigator or
operative or represent that the person is an investigator or
operative unless that person is licensed or registered under
section 7 of this Act. + }
SECTION 3. { + Sections 1 to 19 of this Act do not apply to:
(1) A person employed exclusively by one employer in connection
with the affairs of that employer only;
(2) An officer or employee of the United States, or of this
state, or a political subdivision of either, while the officer or
employee is engaged in the performance of official duties;
(3) A person acting as a private security officer as defined in
ORS 181.870;
(4) A person who is employed full-time as a peace officer, as
defined in ORS 161.015, who receives compensation for private
employment as an investigator, provided that services are
performed for no more than one person or one client;
(5) A person that provides secured transportation and
protection, from one place or point to another place or point, of
money, currency, coins, bullion, securities, bonds, jewelry or
other valuables;
(6) A person that places, leases, rents or sells an animal for
the purpose of protecting property, or any person that is
contracted to train an animal for the purpose of protecting
property;
(7) A person engaged in the business of obtaining and
furnishing information regarding the financial rating of persons;
(8) An attorney admitted to practice law in this state
performing his or her duties as an attorney;
(9) A legal assistant or paralegal engaged in activity for
which the person is employed by an attorney admitted to practice
law in this state;
(10) Insurers, insurance adjusters, insurance agents and
insurance brokers licensed in this state and performing duties in
connection with insurance transacted by them;
(11) 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;
(12) An employee of a cattle association who is engaged in
inspection of brands of livestock under the authority granted to
that cattle association by the Packers and Stockyards Division of
the United States Department of Agriculture;
(13) Common carriers by rail engaged in interstate commerce and
regulated by state and federal authorities and transporting
commodities essential to the national defense or to the general
welfare and safety of the community;
(14) Any news media and the employees thereof when engaged in
obtaining information for the purpose of disseminating news to
the public; or
(15) A legal process service company attempting to serve legal
process. + }
SECTION 4. { + An applicant for an investigator's license:
(1) Must be at least 21 years of age;
(2) Must have been engaged in full-time investigatory work for
a period of not less than one year. Completion of a related
course of study at an educational institution certified by the
Department of Education within the 18 months prior to application
may be substituted for up to six months of the required work
experience. This work may have been as an operative for an
investigator, a law enforcement agent, an attorney admitted to
practice law in any state or an employee in a public agency
engaged in investigatory activities, or other equivalent
experience as determined by the Oregon Board of Investigators;
(3) Must not have committed any act that constitutes grounds
for denial of a license under section 15 of this Act unless the
Oregon Board of Investigators concludes that notwithstanding the
act or acts, the applicant is fit for the position; and
(4) Must have obtained a passing score on the test of
professional investigative ethics administered or approved by the
board. + }
SECTION 5. { + An applicant for an operative's registration:
(1) Must be at least 21 years of age;
(2) Must not have committed any act that constitutes grounds
for denial of a registration under section 15 of this Act unless
the Oregon Board of Investigators concludes that notwithstanding
the act or acts, the applicant is fit for the position; and
(3) Must have obtained a passing score on the test of
professional investigative ethics administered or approved by the
board. + }
SECTION 6. { + (1) An application for an investigator's
license or operative's registration shall be in writing on a form
prescribed by the Oregon Board of Investigators and signed under
oath, stating the applicant's:
(a) Name;
(b) Birthdate;
(c) Citizenship;
(d) Physical description;
(e) Current residence;
(f) Residence for the preceding 10 years;
(g) Current employment;
(h) Employment for the preceding 10 years;
(i) Experience qualifications;
(j) Education;
(k) Business address, which may be a post office box; and
(L) Any other information required by the board.
(2) The application shall be accompanied by:
(a) The application fee as prescribed by the board by rule;
(b) Two copies of a recent photograph of the applicant,
measuring two inches by three inches, one to be mounted on an
identification card and one to be retained by the board;
(c) Three complete sets of the applicant's fingerprints;
(d) Three professional references and three character
references from Oregon citizens, each of whom has known the
applicant for at least five years, and none of whom are related
to the applicant by blood or marriage;
(e) Proof of a corporate surety bond or irrevocable letter of
credit issued by a commercial bank as defined in ORS 706.005 or
such other security as the board may prescribe by rule in the sum
of $5,000. Failure to maintain a bond or letter of credit shall
be grounds for revocation or denial of renewal of a license or
registration; and
(f) Proof of a passing score on the test of professional
investigative ethics administered or approved by the board.
(3) All applicants must disclose any acts or crimes
constituting grounds for denial of a license or registration
under section 15 of this Act. The board must conduct a special
review of any applicant making a disclosure under this
subsection.
(4) The board shall forward a copy of the application to the
Department of State Police Bureau of Criminal Identification and
shall request that the bureau make an investigation of the
applicant to determine whether the applicant has committed any
acts or crimes constituting grounds for denial of a license or
registration under section 15 of this Act. + }
SECTION 7. { + (1) The Oregon Board of Investigators shall
issue an investigator's license if the applicant has satisfied
the requirements of sections 4 and 6 of this Act. Upon receiving
an investigator's license from the board, an investigator shall,
at all times, post this license in a conspicuous place in the
principal place of business of the investigator.
(2) The board shall issue an operative's registration if the
applicant has satisfied the requirements of sections 5 and 6 of
this Act. An operative shall, at all times, perform services
under the direct supervision and control of a licensed
investigator or an attorney admitted to practice in this state.
(3) Any license or registration issued under this section shall
expire two years following the date of issuance or on the
assigned renewal date. + }
SECTION 8. { + (1) When issuing an investigator's license or
operative's registration, the Oregon Board of Investigators shall
also issue an identification card of a size, design and content
as may be determined by the board.
(2) Any person licensed or registered by this state as an
investigator or operative shall carry at all times, while engaged
in the practice of investigating, the identification card issued
under this section.
(3) In order to renew an unexpired identification card, the
cardholder shall, on or before the date on which it would
otherwise expire, apply for renewal on a form prescribed by the
board and pay the renewal fee.
(4) Identification cards remain the property of this state and
must be returned to the board within 15 business days after:
(a) Failure to renew an investigator's license or operative's
registration;
(b) Revocation or suspension of a license or registration by
the board; or
(c) Termination of employment for a registered operative.
(5) In the event of loss or destruction of an identification
card, the cardholder may apply to the board for a replacement of
the card, stating the circumstances of the loss or destruction.
The application shall be accompanied by a recent photograph of
the cardholder, measuring two inches by three inches, and a card
replacement application fee as prescribed by the board by
rule. + }
SECTION 9. { + Every person holding an investigator's license
or operative's registration who desires to continue to practice
in this state shall pay the renewal fee prescribed by rule of the
Oregon Board of Investigators to the board on or before the
renewal date of the license or registration. Any person who fails
to pay the renewal fee by the renewal date may, within the
following 30 days, pay the renewal fee plus a penalty in an
amount to be prescribed by board rule, not to exceed twice the
amount of the current renewal fee. Any person who fails to pay
the renewal fee, with accrued penalties, for a period of 30 days
after the renewal date shall forfeit the right to work as an
investigator or operative in this state and may be reinstated
only upon compliance with the initial application procedures. + }
SECTION 10. { + All licensed investigators and registered
operatives shall, at all times, observe the following rules and
requirements of conduct:
(1) An investigator or operative shall not knowingly make any
false report to an employer or client for whom information was
being obtained.
(2) An investigator or operative shall not use a badge in
connection with the official activities of the investigator's
business.
(3) An investigator or operative shall not attempt to give an
impression that the investigator or operative is connected in any
way with any law enforcement or other governmental entity by any
statement or activity, including using a title, wearing a
uniform, using an insignia or using an identification card.
(4) An investigator or operative shall use only the official
identification card issued by the Oregon Board of Investigators,
or the business card regularly used by the investigator's
business, to indicate that the investigator or operative is
licensed or registered.
(5) All investigators shall be directly responsible for the
professional, ethical and legal conduct of their employees and
operatives working under their supervision.
(6) All advertisements by an investigator shall contain the
company name, address, telephone number and the investigator's
license number.
(7) All identification cards, letterhead or other identifiers
must contain:
(a) The individual's name;
(b) The business name;
(c) The mailing address of the place of business;
(d) The business telephone number; and
(e) The license or registration number provided by the
board. + }
SECTION 11. { + (1) All investigators and operatives shall
inform each client that the client has a right to receive a
written contract. The contract shall clearly state the task to be
performed and the rate of payment.
(2) All investigators and operatives shall inform each client
that the client is entitled to receive either of the following
reports concerning services rendered:
(a) An oral report that is timely and adequate when a client
does not desire a written report; or
(b) A written report furnished by the investigator or operative
to the client within seven days after written request is received
from the client.
(3) All investigators and operatives shall maintain accurate
accounting records of time and expenses.
(4) All investigators shall keep separate and distinct case
files for each client and case. Case files shall include the date
activity began, copies of all correspondence and written reports
generated and an accurate accounting of all time and expenses
incurred by the investigator or operative during the course of
that case.
(5) Each investigator shall maintain a record of the term of
employment of each employee and operative.
(6) All records and files referred to in this section shall be
maintained for not less than seven years. + }
SECTION 12. { + Investigators and operatives shall maintain a
principal location for the conduct of business. This location, as
well as any branch office, shall be registered with the Oregon
Board of Investigators. Each investigator or operative shall
notify the board within 10 days of any change of the business
address of the principal location or of any branch office of the
business. + }
SECTION 13. { + (1) The Oregon Board of Investigators is
created as an independent public corporation and is authorized to
carry out the provisions of sections 1 to 19 of this Act. The
board is subject to the following statutes applicable to public
bodies: ORS 30.210 to 30.250, 30.260 to 30.300, 30.310, 30.312,
30.390, 30.400, 192.410 to 192.505, 192.610 to 192.690, 244.010
to 244.040, 297.110 to 297.230, 731.036 and 737.346 and ORS
chapters 307, 308 and 311. However, the board is not subject to
any other statute applicable to a state agency, department, board
or commission or public body unless such statute expressly
provides that it is applicable to the Oregon Board of
Investigators.
(2) The board shall be composed of five members appointed by
the Governor subject to confirmation by the Senate in the manner
provided in ORS 171.562 and 171.565. The chair of the board shall
be elected by the board from among the current members. The board
shall have as members:
(a) Three investigators licensed under section 7 of this Act;
(b) One representative of the law enforcement community; and
(c) One member of the general public.
(3) The term of office shall be four years. Before the
expiration of the term of a member, the Governor shall appoint a
successor to assume the duties on January 1 next following. In
case of a vacancy for any cause, the Governor shall make an
appointment to become effective immediately for the unexpired
term.
(4) The board has perpetual succession and a seal, and it may
sue and be sued. Notwithstanding the provisions of ORS 270.020
and ORS chapters 278 and 279, it may, in its own name, for the
purpose of carrying into effect and promoting its objectives,
enter into contracts and lease, acquire, hold, own, encumber,
insure, sell, replace, deal in and with and dispose of real and
personal property. ORS 279.011 to 279.067, 279.310 to 279.542,
279.710 and 279.711 shall not apply to any contract for purchase,
lease or sale of personal property, public improvements or
services entered into before, on or after the effective date of
this Act.
(5) No obligation of any kind incurred or created under this
section shall be, or be considered, an indebtedness or obligation
of the State of Oregon.
(6) The board may enter into a reciprocal agreement with the
appropriate official of any other state to allow an investigator
licensed in the other state to operate in Oregon if the board
determines that the requirements for licensure in that state are
substantially similar to the requirements under Oregon law.
(7) The board shall file with the Legislative Assembly and the
Governor, not later than April 15 of each year, a report covering
the activities and operations of the board for the preceding
year. + }
SECTION 14. { + In accordance with any applicable provisions
of sections 1 to 19 of this Act, the Oregon Board of
Investigators shall:
(1) Determine the qualifications of investigators and
operatives;
(2) Investigate alleged violations of sections 1 to 19 of this
Act and of any rules adopted by the board;
(3) Adopt rules necessary for the administration of sections 1
to 19 of this Act;
(4) Prescribe and collect fees for application and licensing,
renewal of licenses and issuance of identification cards. Fees
established shall not exceed the cost of administering the
regulatory program of the board for which the fee was
established;
(5) Administer or approve the test of professional
investigative ethics;
(6) Formulate a code of professional ethics to be followed by
investigators and operatives; and
(7) Establish requirements for continuing education. + }
SECTION 15. { + The Oregon Board of Investigators may refuse
to grant or renew a license or registration, may suspend or
revoke a license or registration or may reprimand, censure or
impose a period of probation for any of the following reasons:
(1) A conviction of a felony or of any offense involving moral
turpitude;
(2) A violation of any of the provisions of sections 1 to 19 of
this Act or of any rule adopted by the board;
(3) Any unprofessional conduct or unfitness of the investigator
or operative;
(4) Any act in the course of the investigator's or operative's
business constituting dishonesty or fraud;
(5) The submission of any false information in connection with
an application for a license or registration;
(6) Willful failure or refusal to render services to a client;
or
(7) Knowing violation of any court order or injunction in the
course of business as an investigator or operative. + }
SECTION 16. { + (1) If the Oregon Board of Investigators
proposes to refuse to issue or renew a license or registration or
proposes to suspend or revoke a license or registration or
proposes to reprimand, censure or impose a period of probation on
an investigator or operative, opportunity for hearing shall be
accorded as provided in ORS 183.310 to 183.550.
(2) Judicial review of orders under subsection (1) of this
section shall be as provided in ORS 183.310 to 183.550. + }
SECTION 17. { + (1) In addition to any other penalty provided
by law, a person who violates any provision of sections 1 to 19
of this Act or any rule adopted thereunder is subject to payment
of a civil penalty to the Oregon Board of Investigators in an
amount of not more than $1,000 for each offense.
(2) A licensed investigator or registered operative who fails
to carry the identification card as required by section 8 of this
Act shall be subject to a fine not to exceed $500.
(3) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
(4) Judicial review of civil penalties imposed under this
section shall be as provided under ORS 183.480, except that the
court may reduce the amount of the penalty. + }
SECTION 18. { + (1) All moneys collected or received by the
Oregon Board of Investigators shall be deposited into an account
established by the board in a depository bank insured by the
Federal Deposit Insurance Corporation. All moneys in the account
are continuously appropriated to the board for the purpose of
carrying out the functions of the board.
(2) Subject to the approval of the chair, all necessary board
expenses shall be paid from the moneys collected or earned by the
board.
SECTION 19. (1) A person commits a Class A misdemeanor if the
person knowingly falsifies the fingerprints, photographs or other
data pertinent to an application for a license, registration or
identification card under the provisions of section 6, 7 or 8 of
this Act.
(2) A person commits a Class B misdemeanor if the person
knowingly practices as an investigator or operative without a
license or registration as required by section 2 of this Act.
SECTION 20. Any person acting as an investigator or operative
on the effective date of this Act shall file an application for a
license or registration within 180 days from the effective date
of this Act. Such persons may continue acting as an investigator
or operative without a license or registration until official
action is taken on the person's application. + }
SECTION 21. { + (1) Notwithstanding the term of office
specified in section 13 of this Act, of the members first
appointed to the Oregon Board of Investigators:
(a) Two investigator members and the public member shall serve
for a term ending January 1, 2000; and
(b) One investigator member and the member from the law
enforcement community shall serve for a term ending January 1,
2001.
(2) The investigator members initially appointed to the board
shall be persons eligible to be licensed as investigators under
section 4 of this Act. + }
SECTION 22. ORS 181.871 is amended to read:
181.871. ORS 181.870 to 181.889, 181.991 and 203.090 do not
apply to:
(1)(a) A person certified by the Board on Public Safety
Standards and Training as a police officer;
(b) A law enforcement officer of the United States;
(c) An officer or employee of this state or the United States;
or
(d) A person appointed or commissioned by the Governor to
perform law enforcement or security services.
(2) An attorney admitted to practice law in this state.
(3) An insurance adjuster licensed in this state and performing
duties authorized by the license.
(4) A person who monitors fire alarm systems and other alarm
systems that are not designed to detect unauthorized intrusions.
(5) A person while protecting the person's property.
(6) A person who repairs and installs intrusion alarms.
(7) A person { - providing private investigation services,
including investigations of persons, crimes or property - } { +
acting as an investigator or operative as defined in section 1 of
this 1997 Act + }.
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