Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 360-H.F.No. 463 
           An act relating to occupations and professions; 
          providing for the licensure of private detectives and 
          protective agents; providing definitions; providing 
          board powers and duties; specifying application and 
          administrative procedure; authorizing rulemaking; 
          requiring payment of fees; providing penalties; 
          amending Minnesota Statutes 1986, sections 326.32, 
          subdivisions 1, 5, 11, and by adding subdivisions; 
          326.33, subdivisions 1 and 2; 326.336; 326.338, 
          subdivision 1, and by adding a subdivision; and 
          326.339; proposing coding for new law in Minnesota 
          Statutes, chapter 326; repealing Minnesota Statutes 
          1986, sections 326.32, subdivisions 6 and 7; 326.33, 
          subdivisions 3, 4, and 5; 326.331; 326.332; 326.333; 
          326.334; 326.337; and 326.338, subdivisions 2 and 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 326.32, 
subdivision 1, is amended to read: 
    Subdivision 1.  As used in sections 326.331 326.32 to 
326.339, and Laws 1974, chapter 310, the terms defined in this 
section have the meanings given them. 
    Sec. 2.  Minnesota Statutes 1986, section 326.32, 
subdivision 5, is amended to read:  
    Subd. 5.  "Board review" means the review, by the board, of 
a private detective or protective agent license application, in 
conjunction with other pertinent facts and information related 
to the application process by which the board reviews and 
evaluates private detective or protective agent license 
applications. 
    Sec. 3.  Minnesota Statutes 1986, section 326.32, is 
amended by adding a subdivision to read: 
    Subd. 10a.  "Minnesota manager" means the member of a 
partnership or corporation, who meets the qualifications for 
licensing as provided in sections 326.32 to 326.339.  The 
Minnesota manager must be actively involved in the day to day 
management and supervision of the licensed activity in the 
Minnesota office. 
    Sec. 4.  Minnesota Statutes 1986, section 326.32, is 
amended by adding a subdivision to read: 
    Subd. 10b.  "Minnesota office" means an office maintained 
in Minnesota by a license holder for the conduct or solicitation 
of business when the principal place of business of the license 
holder is located outside the state of Minnesota. 
    Sec. 5.  Minnesota Statutes 1986, section 326.32, 
subdivision 11, is amended to read:  
    Subd. 11.  "Public member" means a person who is not, or 
never nor ever was, a member of the profession or occupation 
being licensed or regulated, or the spouse of any such person or 
a person who has not, nor ever has had, a material or financial 
interest in either the providing of the professional service 
being licensed or regulated or an activity directly related to 
the profession or occupation being licensed or regulated. 
    Sec. 6.  Minnesota Statutes 1986, section 326.32, is 
amended by adding a subdivision to read: 
    Subd. 12.  "Qualified representative" means the member of a 
partnership or corporation, who meets the qualifications for 
licensing as provided in sections 326.32 to 326.339.  The 
qualified representative must be actively involved in the day to 
day management and supervision of the licensed activity. 
    Sec. 7.  Minnesota Statutes 1986, section 326.33, 
subdivision 1, is amended to read:  
    Subdivision 1.  [MEMBERS; MEETINGS.] There is hereby 
created a board of private detective and protective agent 
services, consisting of the superintendent of the bureau of 
criminal apprehension or a departmental employee an assistant 
superintendent designated by the superintendent, and the 
following members appointed by the commissioner of public 
safety:  a licensed protective agent, or qualified 
representative for a licensed protective agent partnership or 
corporation, a licensed private detective, or qualified 
representative for a licensed private detective partnership or 
corporation, and two public members appointed by the 
commissioner of public safety.  Filling of member vacancies 
shall be the responsibility of the commissioner of public 
safety.  Membership terms, compensation of members, removal of 
members, the filling of membership vacancies, and fiscal year 
and reporting requirements shall be as provided in sections 
214.07 to 214.09.  The provision of staff, unless otherwise 
provided in sections 326.32 to 326.339; administrative services 
and office space; the review and processing of complaints; the 
setting of board fees, unless otherwise provided in sections 
326.32 to 326.339; and other provisions relating to board 
operations shall be as provided in chapter 214. 
    The board members shall meet as they deem necessary and 
conduct such business ascribed to the board by the provisions of 
sections 326.331 to 326.339.  The board shall designate one of 
the board members to fulfill the capacity of board chair who 
will remain in the capacity of chair for a term of one year.  
The board shall have the option of retaining or replacing a 
board member as chair. 
    Sec. 8.  Minnesota Statutes 1986, section 326.33, 
subdivision 2, is amended to read:  
    Subd. 2.  [RULEMAKING MEETINGS; CHAIR.] The board may adopt 
rules according to chapter 14 to govern the selection, training, 
and licensing of private detectives and protective agents The 
board shall meet at the times it considers necessary to conduct 
business ascribed to the board by the provisions of sections 
326.32 to 326.339.  The board shall designate one of its members 
to fill the position of board chair, and that person may remain 
in the capacity of chair for a term of one year.  The board has 
the option of replacing a board member as chair. 
    Sec. 9.  [326.3311] [POWERS AND DUTIES.] 
    The board has the following powers and duties: 
    (1) to receive and review all applications for private 
detective and protective agent licenses; 
    (2) to approve applications for private detective and 
protective agent licenses and issue, or reissue licenses as 
provided in sections 326.32 to 326.339; 
    (3) to deny applications for private detective and 
protective agent licenses if the applicants do not meet the 
requirements of sections 326.32 to 326.339; upon denial of a 
license application, the board shall notify the applicant of the 
denial and the facts and circumstances that constitute the 
denial; the board shall advise the applicant of the right to a 
contested case hearing under chapter 14; 
    (4) to enforce all laws and rules governing private 
detectives and protective agents; and 
    (5) to suspend or revoke the license of a license holder or 
impose a civil penalty on a license holder for violations of any 
provision of sections 326.32 to 326.339 or the rules of the 
board. 
    Sec. 10.  [326.3321] [EMPLOYEES.] 
    Subdivision 1.  [EXECUTIVE DIRECTOR.] The board shall 
appoint an executive director to serve in the unclassified 
service at the pleasure of the board.  The executive director 
shall perform the duties as the board shall prescribe. 
    Subd. 2.  [OTHERS.] The board may employ and assign duties 
to other employees or agents as it considers necessary to 
discharge the functions of the board. 
    Sec. 11.  [326.3331] [RULEMAKING.] 
    The board shall adopt rules under chapter 14 to govern the 
selection, training, conduct, discipline, and licensing of 
private detectives and protective agents, and any other matters 
necessary to carry out duties imposed by sections 326.32 to 
326.339. 
    Sec. 12.  [326.3341] [EXEMPTIONS.] 
    Sections 326.32 to 326.339 do not apply to: 
    (1) an employee while providing security or conducting an 
investigation of a pending or potential claim against the 
employee's employer; 
    (2) a peace officer or employee of the United States, this 
state or one of its political subdivisions, while engaged in the 
discharge of official duties for the government employer; 
    (3) persons engaged exclusively in obtaining and furnishing 
information as to the financial standing, rating, and credit 
responsibility of persons or as to the personal habits and 
financial responsibility of applicants for insurance, indemnity 
bonds, or commercial credit; 
    (4) an attorney at law while performing the duties of an 
attorney at law or an investigator employed exclusively by an 
attorney or a law firm engaged in investigating legal matters; 
    (5) a collection agency or finance company licensed to do 
business under the laws of this state or an employee of one of 
those companies while acting within the scope of employment when 
making an investigation incidental to the business of the 
agency, including an investigation as to location of a debtor, 
of the debtor's assets or property, provided the client has a 
financial interest in or a lien upon the assets or property of 
the debtor; 
    (6) an insurance adjuster employed exclusively by an 
insurance company, or licensed as an adjuster with the state of 
Minnesota and engaged in the business of adjusting insurance 
claims; or 
    (7) persons engaged in responding to alarm signals 
including, but not limited to, fire alarms, industrial process 
failure alarms and burglary alarms, for purposes of maintaining, 
repairing or resetting the alarm, or for opening the premises 
for law enforcement personnel or responding agents. 
    Sec. 13.  Minnesota Statutes 1986, section 326.336, is 
amended to read:  
    326.336 [EMPLOYEES OF LICENSE HOLDERS.] 
    Subdivision 1.  A license holder may employ, in connection 
with the business of private detective or protective agent, as 
many unlicensed persons as may be necessary; provided however, 
that every license holder is at all times accountable for the 
good conduct of every person employed in connection with the 
business of private detective or protective agent.  The employer 
shall submit to the bureau of criminal apprehension a full set 
of fingerprints of each employee and the written consent of the 
employee or prospective employee for the bureau to determine 
whether that person has a criminal record.  
    Subd. 2.  An identification card shall be issued to each 
employee of a private detective agency or protective agency and 
shall be in the employee's possession at all times.  Such 
identification card shall be issued by the license holder and 
contain the license holder's logo, corporate or company name, 
duly signed by the license holder or branch manager, the office 
address of the license holder or Minnesota branch of said 
license holder, the employee's photograph, and physical 
description, and shall bear the employee's signature.  No 
identification card shall bear the word "police" or any other 
marking indicating the holder is a member of a police department 
or peace officer.  The issuing agency shall have its name 
printed in full on said card and no initials that would 
correspond with municipal, state or federal law enforcement 
agencies shall be printed thereon An identification card must be 
issued by the license holder to each employee.  The card must be 
in the possession of the employee to whom it is issued at all 
times.  The identification card must contain the license 
holder's name, logo (if any), address or Minnesota office 
address, and the employee's photograph and physical 
description.  The card must be signed by the employee and by the 
license holder, qualified representative, or Minnesota office 
manager. 
    Subd. 3.  Any person who shall be issued an identification 
card, badge, holster, weapon, shield or any other equipment 
bearing the name, trademark or trade name, or any combination 
thereof, of any licensed agency, or indicating that such person 
is a private detective, private protective agent, or employee of 
same, who does not return such badge, weapon, holster, 
identification card, uniform emblem, or other equipment to the 
owner thereof within ten days of the termination of employment, 
or of receiving a written request to return same, made by 
certified mail to the person's last known address, whichever 
shall last occur, shall be guilty of a misdemeanor. 
    Subd. 4.  No employee of any license holder shall divulge 
to anyone other than the employer, or as the employer shall 
direct, except as may be required by law, any information 
acquired during such employment in respect of any matter or 
investigation undertaken or done by such employer.  Any employee 
who shall make any false statement in an employment statement or 
who willfully makes a false report to the employer in respect to 
any matter in the course of the employer's business, or who 
shall otherwise violate the provisions of this subdivision is 
guilty of a misdemeanor. 
    Sec. 14.  Minnesota Statutes 1986, section 326.338, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PRIVATE DETECTIVE.] Persons who for a 
fee or, reward, or any other consideration shall engage in 
the business of investigators, or who for fee, reward or any 
consideration shall make investigations, undertake any of the 
following acts for the purpose of obtaining information for 
others with respect to any of the following matters are 
considered to be engaged in the business of a private 
detective:  Crime 
    (1) investigating crimes or wrongs done or threatened 
against the government of the United States or of any state, 
county, or municipal subdivision thereof; 
    (2) investigating the identity, habits, conduct, movements, 
whereabouts, affiliations, transactions, reputation, or 
character of any person or organization; 
    (3) investigating the credibility of witnesses or other 
persons; the whereabouts of missing persons; 
    (4) investigating the location or recovery of lost or 
stolen property;  
    (5) investigating the origin of and responsibility for 
libels, losses, accidents, or damage or injuries to real or 
personal persons or property;  
    (6) investigating the affiliation, connection or relation 
relationship of any person, firm, or corporation with any 
organization, society, or association, or with any official, 
representative, or member thereof;  
    (7) investigating the conduct, honesty, efficiency, loyalty 
, or activities of employees or, persons seeking employment, 
agents, or contractors and subcontractors; the 
    (8) obtaining through investigation evidence to be used 
before any authorized investigating committee, board of award, 
board of arbitration, administrative body, or officer or in the 
preparation for trial of civil or criminal cases; or the 
identification 
    (9) investigating the identity or apprehension of persons 
suspected of crimes or misdemeanors shall be deemed engaged in 
the business of private detective.  
    Sec. 15.  Minnesota Statutes 1986, section 326.338, is 
amended by adding a subdivision to read:  
    Subd. 4.  [PROTECTIVE AGENT.] A person who for a fee, 
reward, or other valuable consideration undertakes any of the 
following acts is considered to be engaged in the business of 
protective agent: 
    (1) providing guards, private patrol, or other security 
personnel to protect persons or their property or to prevent the 
theft, unlawful taking of goods, merchandise, or money, or to 
prevent the misappropriation or concealment of goods, 
merchandise, money, or other valuable things, or to procure the 
return of those things; 
    (2) physically responding to any alarm signal device, 
burglar alarm, television camera, still camera, or a mechanical 
or electronic device installed or used to prevent or detect 
burglary, theft, shoplifting, pilferage, losses, or other 
security measures; 
    (3) providing armored car services for the protection of 
persons or property; 
    (4) controlling motor traffic on public streets, roads, and 
highways for the purpose of escorting a funeral procession; or 
    (5) providing management and control of crowds for the 
purpose of safety and protection. 
    Sec. 16.  [326.3381] [LICENSES.] 
    Subdivision 1.  [PROHIBITION.] No person shall engage in 
the business of private detective or protective agent, or 
advertise or indicate in any verbal statement or in written 
material that the person is so engaged or available to supply 
those services, without having first obtained a license as 
provided in sections 326.32 to 326.339. 
    Subd. 2.  [APPLICATION PROCEDURE.] The board shall issue a 
license upon application to any person qualified under sections 
326.32 to 326.339 and under the rules of the board to engage in 
the business of private detective or protective agent.  The 
license shall remain effective for two years as long as the 
license holder complies with sections 326.32 to 326.339, the 
laws of Minnesota, and the rules of the board.  Upon receipt of 
an application for private detective or protective agent 
license, the board shall: 
    (1) post notice of the application in its office for a 
period of 20 days, and notify all persons who have requested 
notification of applications; 
    (2) conduct an investigation as it considers necessary to 
determine the qualifications of the applicant, qualified 
representative, Minnesota manager, and if appropriate, a partner 
or corporate officer; and 
    (3) notify the applicant of the date on which the board 
will conduct a review of the license application.  
    Subd. 3.  [DISQUALIFICATION.] No person is qualified to 
hold a license who has: 
    (1) been convicted of (i) a felony by the courts of this or 
any other state or of the United States; (ii) acts which, if 
done in Minnesota, would be assault; theft; larceny; burglary; 
robbery; unlawful entry; extortion; defamation; buying or 
receiving stolen property; using, possessing, manufacturing, or 
carrying weapons unlawfully; using, possessing, or carrying 
burglary tools unlawfully; escape; possession, production, sale, 
or distribution of narcotics unlawfully; or (iii) in any other 
country of acts which, if done in Minnesota, would be a felony 
or would be any of the other offenses provided in this clause 
and for which a full pardon or similar relief has not been 
granted; 
    (2) made any false statement in an application for a 
license or any document required to be submitted to the board; 
or 
    (3) failed to demonstrate to the board good character, 
honesty, and integrity. 
    Subd. 4.  [BUSINESS ENTITY APPLICANT.] If the applicant for 
a license is a corporation or partnership, one member of that 
corporation or partnership must meet the licensing requirements 
in sections 326.32 to 326.339. 
    Subd. 5.  [NONRESIDENT APPLICANT.] If an applicant's home 
office is located outside of Minnesota, and the applicant 
establishes a Minnesota office, the applicant shall provide a 
manager for the Minnesota office who meets the licensing 
requirements in sections 326.32 to 326.339.  
    Sec. 17.  [326.3382] [APPLICATION FOR LICENSE.] 
    Subdivision 1.  [APPLICATION FORM.] (a) Application for a 
private detective or protective agent license shall be made on a 
form prescribed by the board.  Each applicant shall provide the 
following information: 
    (1) the full name, date of birth, and sex of each person 
signing the application, and the residences of those persons for 
the past five years; 
    (2) all past and present occupations and employers, length 
of employment, and the name, address, and telephone numbers of 
supervisors for all persons signing the application; 
    (3) the address or a description indicating the location of 
the place of business of the applicant; 
    (4) a statement indicating that each person signing the 
application has attained the age of 18; 
    (5) if the applicant is a corporation, the name of the 
corporation, the date and place of incorporation, and the 
location of its principal place of business or registered office 
in its state of incorporation; and 
    (6) further facts as may be required by the board to show 
the good character, competency, and integrity of each person 
signing the application; and 
    (b) each application shall be signed and acknowledged as 
follows: 
    (1) if the applicant is an individual, by the individual; 
    (2) if the applicant is a partnership, by each partner, one 
of whom must be a qualified representative; or 
    (3) if the applicant is a corporation, by the chief 
executive officer, chief financial officer, and the qualified 
representative of the corporation.  If the principal place of 
the applicant's business is outside Minnesota, the application 
shall also include the signature of the Minnesota manager. 
    Subd. 2.  [DOCUMENTS ACCOMPANYING APPLICATION.] (a) Each 
individual signing the application shall submit: 
    (1) references, on forms provided by the board, from five 
persons who have known the signer for at least five years, and 
who are not related by blood or marriage to the signer; and 
    (2) a recent photograph and a full set of fingerprints for 
each person signing the application. 
    (b) If the application is for a private detective license, 
the individual signing the application shall submit a statement 
under oath by a present or previous employer that the applicant 
for an individual license, the qualified representative for a 
partnership or corporate license, or the Minnesota manager, as 
appropriate, has been employed as an investigator for a minimum 
of 6,000 hours by any of the following: 
    (1) a licensed private detective agency; 
    (2) a United States government investigative service; 
    (3) a city police department or sheriff's office; or 
    (4) an occupation that, the board finds equivalent in 
scope, responsibility, and training to one of the specific 
occupations listed; 
and has the qualifications established in the rules of the board.
    (c) If the application is for a protective agent license, 
each person signing the application shall submit a statement 
under oath by a present or previous employer that the applicant 
for an individual license, the qualified representative for a 
partnership or corporate license, or the Minnesota manager has 
been employed as an investigator or protective agent for a 
minimum of 6,000 hours by any of the following: 
    (1) a licensed protective agent or licensed private 
detective, having gained experience in security systems, audits, 
and supervision; 
    (2) a United States government investigative service; 
    (3) a city police department or sheriff's office; or 
    (4) an occupation that the board finds equivalent in scope, 
responsibility, and training to one of the specific occupations 
listed; 
and has the qualifications established in the rules of the board.
    Subd. 3.  [PROOF OF INSURANCE.] (a) No license may be 
issued to a private detective or protective agent applicant 
until the applicant has complied with the requirements in this 
subdivision. 
     (b) The applicant shall execute a surety bond to the state 
of Minnesota in the penal sum of $10,000 and file it with the 
board.  The surety bond must be executed by a company authorized 
to do business in the state of Minnesota, must name the 
applicant as principal, and must state that the applicant and 
each of the applicant's employees shall faithfully observe all 
of the laws of Minnesota and of the United States and shall pay 
all damages suffered by any person by reason of a violation of 
law by the applicant or by the commission of any willful and 
malicious wrong by the applicant in the course of business. 
    (c) The applicant shall furnish proof, acceptable to the 
board, of the applicant's ability to respond in damages for 
liability on account of accidents or wrongdoings arising out of 
the ownership and operation of a private detective or protective 
agent business.  Compliance with paragraph (d), (e), or (f) is 
satisfactory proof of financial responsibility for purposes of 
this paragraph. 
    (d) The applicant may file with the board a certificate of 
insurance demonstrating coverage for general liability, 
completed operations, and personal injury.  Personal injury 
insurance must include coverage for:  
     (1) false arrest, detention, imprisonment, and malicious 
prosecution; 
    (2) libel, slander, defamation, and violation of rights of 
privacy; and 
    (3) wrongful entry, eviction, and other invasion of rights 
of private occupancy.  
    The certificate must provide that the insurance may not be 
modified or canceled unless 30 days prior notice is given to the 
board. 
    (e) The applicant may file with the board an annual net 
worth statement, signed by a licensed certified public 
accountant, evidencing that the applicant has a net worth of at 
least the following: 
    (1) for an applicant with no employees, $10,000; 
    (2) for an applicant with one to ten employees, $15,000; 
    (3) for an applicant with 11 to 25 employees, $25,000; 
    (4) for an applicant with 26 to 50 employees, $50,000; or 
    (5) for an applicant with 51 or more employees, $100,000. 
    Data indicating with which of the above requirements an 
applicant must comply is public data.  The contents of the net 
worth statement are private data on individuals or nonpublic 
data, as defined in section 13.02. 
    (f) The applicant may file with the board an irrevocable 
letter of credit from a financial institution acceptable to the 
board in the amount listed in the appropriate category in 
paragraph (e). 
    Subd. 4.  [LICENSE DISQUALIFICATION.] Unlicensed activity 
will not be considered as legitimate experience for 
qualification in being licensed.  An individual, partnership, 
corporation, qualified representative, or Minnesota manager 
engaged in the business of a private detective or protective 
agent without a license issued by the board is prohibited from 
applying for licensing for a period of one year from the date of 
a finding of the violation. 
    Sec. 18.  [326.3383] [LICENSE REISSUANCE.] 
    Subdivision 1.  [REQUIREMENTS.] The board shall reissue a 
private detective or protective agent license to a license 
holder without further board review, if the license holder who 
has complied with all applicable laws and rules: 
    (1) submits to the board an application for license 
reissuance on a form prescribed by the board; 
    (2) submits to the board a list of all current employees; 
and 
    (3) remits the expired license to the board. 
    Subd. 2.  [APPEARANCE.] Nothing in this section shall 
preclude the board from requiring the appearance of the license 
holder at a board meeting prior to the reissuance of the license.
    Subd. 3.  [BOND AND PROOF OF FINANCIAL 
RESPONSIBILITY.] Each applicant for license reissuance shall 
maintain a $10,000 surety bond, and show proof of financial 
responsibility as required in section 17, subdivision 3. 
    Sec. 19.  [326.3384] [PROHIBITED ACTS.] 
    Subdivision 1.  [PROHIBITION.] No license holder or 
employee of a license holder shall, in a manner that implies 
that the person is an employee or agent of a governmental 
agency, display on a badge, identification card, emblem, 
vehicle, uniform, stationery, or in advertising for private 
detective or protective agent services: 
    (1) the words "police," "constable," "highway patrol," 
"sheriff," "trooper," or "law enforcement"; or 
    (2) the name of a municipality, county, state, or of the 
United States, or any governmental subdivision thereof. 
    Subd. 2.  [PENALTY.] A license holder violating subdivision 
1 is guilty of a gross misdemeanor. 
    Sec. 20.  [326.3385] [CONDITIONS OF LICENSING.] 
    Subdivision 1.  [NOTICE OF ADDRESS CHANGE.] A license 
holder who moves to an address other than that given on the 
license certificate shall give written notice to the board 
within seven days of the move.  The notice shall give the new 
address or location, the date the move was made, and be 
accompanied by the license, at which time a new license will be 
made showing the new address or location. 
    Subd. 2.  [NOTICE OF SUCCESSOR.] A corporate or partnership 
license holder shall, within seven days of the death, 
resignation, or removal of a person signing the license 
application, give written notice to the board of the change and 
the name and address of the successor in the vacated position. 
     Within seven days of the death, resignation, or removal of 
a person signing the license application for a partnership or 
corporate license holder, the successor qualified 
representative, partner, Minnesota manager, chief executive 
officer, or chief financial officer who shall qualify under the 
same procedure and criteria, and submit the documents required, 
as for an original application. 
    Subd. 3.  [SURRENDER OF LICENSE.] Every license issued to a 
license holder shall be surrendered to the board within seven 
days after its expiration, or upon notice to a license holder 
that a license has been revoked or suspended.  If the license 
cannot be returned, a notarized statement indicating the 
circumstances shall be submitted to the board. 
    Subd. 4.  [PENALTY.] Failure to comply with the provisions 
of subdivision 1, 2, or 3 may result in the revocation or 
suspension of the license, or the imposition of an 
administrative penalty. 
    Sec. 21.  [326.3386] [FEES.] 
    Subdivision 1.  [APPLICATION FEE.] Each applicant for a 
private detective or protective agent license shall pay to the 
board a nonrefundable application fee, as determined by the 
board. 
    Subd. 2.  [LICENSE FEE.] Each applicant for a private 
detective or protective agent license shall pay to the board a 
license fee, as determined by the board.  In the event that an 
applicant is denied licensing by the board, one-half of the 
license fee shall be refunded to the applicant. 
    Subd. 3.  [DESIGNATION FEE.] When a licensed private 
detective or protective agent who is a partnership or 
corporation, desires to designate a new qualified representative 
or Minnesota manager, a fee equal to one-half of the application 
fee shall be submitted to the board. 
    Subd. 4.  [STATUS FEE.] At the time a licensed private 
detective or protective agent wishes to change a license status, 
as in the case of an individual license holder establishing a 
corporation, the difference between the individual license fee 
and the corporate license fee shall be paid to the board. 
    Subd. 5.  [REISSUANCE FEE.] License holders seeking license 
reissuance shall pay to the board a license reissuance fee as 
determined by the board. 
    Subd. 6.  [BUSINESS OR DIVISION FEE.] If a private 
detective or protective agent license holder wishes to add 
additional business names or corporate division names to an 
existing license, the license holder shall be required to pay a 
fee as determined by the board. 
    Subd. 7.  [RULES.] All fees authorized by this section 
shall be established by rule by the board.  All fees paid to the 
board shall be paid to the general fund.  The cost of 
administering sections 326.32 to 326.339, shall be paid from 
appropriations made to the board. 
    Sec. 22.  [326.3387] [DISCIPLINARY ACTION.] 
    Subdivision 1.  [BASIS FOR ACTION.] The board may revoke or 
suspend or refuse to issue or reissue a private detective or 
protective agent license if: 
    (a) the license holder violates a provision of sections 
326.32 to 326.339 or a rule adopted under those sections; 
    (b) the license holder has engaged in fraud, deceit, or 
misrepresentation while in the business of private detective or 
protective agent; 
    (c) the license holder has made a false statement in an 
application submitted to the board or in a document required to 
be submitted to the board; or 
    (d) the license holder violates an order of the board. 
    Subd. 2.  [HEARING REQUIRED.] The board may impose the 
following penalties only after a contested case hearing under 
chapter 14: 
    (a) revoke or suspend a private detective or protective 
agent license; or 
    (b) impose an administrative penalty in excess of $500. 
    Sec. 23.  [326.3388] [ADMINISTRATIVE PENALTIES.] 
    The board shall, by rule, establish a graduated schedule of 
administrative penalties for violations of sections 326.32 to 
326.339 or the board's rules.  The schedule must include minimum 
and maximum penalties for each violation and be based on and 
reflect the culpability, frequency, and severity of the 
violator's actions.  The board may impose a penalty from the 
schedule on a license holder for a violation of sections 326.32 
to 326.339 or the rules of the board.  The penalty is in 
addition to any criminal penalty imposed for the same 
violation.  Administrative penalties imposed by the board must 
be paid to the general fund. 
    Sec. 24.  [326.3389] [LICENSES NONTRANSFERABLE.] 
    A license issued under sections 326.32 to 326.339 may not 
be transferred. 
    Sec. 25.  Minnesota Statutes 1986, section 326.339, is 
amended to read:  
    326.339 [VIOLATIONS; PENALTY.] 
    Unless otherwise specifically provided any violation of any 
provision or requirement of sections 326.331 326.32 to 326.339 
is a gross misdemeanor.  
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1986, sections 326.32, subdivisions 6 
and 7; 326.33, subdivisions 3, 4, and 5; 326.331; 326.332; 
326.333; 326.334; 326.337; and 326.338, subdivisions 2 and 3; 
are repealed. 
    Approved June 2, 1987