1.1                          A bill for an act 
  1.2             relating to professions; authorizing cease and desist 
  1.3             orders and civil penalties for the unauthorized 
  1.4             practice of the business of private detective and 
  1.5             protective agent; amending Minnesota Statutes 1996, 
  1.6             section 326.3387, by adding subdivisions. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 326.3387, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 1a.  [CEASE AND DESIST ORDERS.] (a) If the board has 
  1.11  a reasonable basis to believe that a person has engaged in an 
  1.12  act or practice constituting the unauthorized practice of the 
  1.13  business of private detective or protective agent or a violation 
  1.14  of a statute, rule, or order that the board has issued or is 
  1.15  empowered to enforce, the board may proceed as described in 
  1.16  subdivision 3. 
  1.17     (b) Except as otherwise described in this subdivision, all 
  1.18  hearings shall be conducted in accordance with chapter 14. 
  1.19     (c) The board may issue and have served upon a person an 
  1.20  order requiring the person to cease and desist from the 
  1.21  unauthorized practice of the business of private detective or 
  1.22  protective agent, or violation of the statute, rule, or order.  
  1.23  The order shall be calculated to give reasonable notice of the 
  1.24  rights of the person to request a hearing and shall state the 
  1.25  reasons for the entry of the order. 
  1.26     (d) Service of the order is effective if the order is 
  2.1   served on the person or counsel of record personally or by 
  2.2   certified mail to the most recent address provided to the board 
  2.3   for the person or counsel of record. 
  2.4      (e) Unless otherwise agreed by the board, and the person 
  2.5   requesting the hearing, the hearing shall be held no later than 
  2.6   30 days after the request for the hearing is received by the 
  2.7   board. 
  2.8      (f) The administrative law judge shall issue a report 
  2.9   within 30 days of the close of the contested case hearing 
  2.10  record, notwithstanding Minnesota Rules, part 1400.8100, subpart 
  2.11  3.  Within 30 days after receiving the report and any exceptions 
  2.12  to it, the board shall issue a further order vacating, 
  2.13  modifying, or making permanent the cease and desist orders as 
  2.14  the facts require. 
  2.15     (g) If no hearing is requested within 30 days of service of 
  2.16  the order, the order becomes final and remains in effect until 
  2.17  it is modified or vacated by the board. 
  2.18     (h) If the person to whom a cease and desist order is 
  2.19  issued fails to appear at the hearing after being duly notified, 
  2.20  the person is in default and the proceeding may be determined 
  2.21  against that person upon consideration of the cease and desist 
  2.22  order, the allegations of which may be considered to be true. 
  2.23     Sec. 2.  Minnesota Statutes 1996, section 326.3387, is 
  2.24  amended by adding a subdivision to read: 
  2.25     Subd. 3.  [VIOLATIONS; ADMINISTRATIVE PENALTIES; COSTS OF 
  2.26  PROCEEDING.] (a) The board may impose a civil penalty not to 
  2.27  exceed $2,000 per violation upon a person who commits an act or 
  2.28  practice constituting the unauthorized practice of the business 
  2.29  of private detective or protective agent or violates a statute, 
  2.30  rule, or order that the board has issued or is empowered to 
  2.31  enforce. 
  2.32     (b) The board may, in addition, impose a fee to reimburse 
  2.33  the board for all or part of the cost of the proceedings 
  2.34  resulting in disciplinary action authorized by this section, the 
  2.35  imposition of civil penalties, or the issuance of a cease and 
  2.36  desist order.  The fee may be imposed when the board shows that 
  3.1   the position of the person who commits an act or practice 
  3.2   constituting the unauthorized practice of the business of 
  3.3   private detective or protective agent or violates a statute, 
  3.4   rule, or order that the board has issued or is empowered to 
  3.5   enforce is not substantially justified, unless special 
  3.6   circumstances make an award unjust, notwithstanding the 
  3.7   provisions of Minnesota Rules, part 1400.8401.  The costs 
  3.8   include, but are not limited to, the amount paid by the board 
  3.9   for services from the office of administrative hearings, 
  3.10  attorney fees, court reporters, witnesses, reproduction of 
  3.11  records, board members' per diem compensation, board staff time, 
  3.12  and expense incurred by board members and staff.