REPRESENTATIVES Schaffer, Grendell, Williams, Rhine, Flowers, Strahorn, Seitz, McGregor, Schmidt, Driehaus, Hagan, Krupinski, DeBose

To amend sections 4749.01, 4749.04, and 4749.06 of the

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Revised Code to exempt commissioned peace officers

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from the licensing requirements concerning private

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investigators and security guards when acting as an

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employee or as an independent contractor for a

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person licensed as a private investigator, security

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guard, or both.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 4749.01, 4749.04, and 4749.06 of the	8
Revised Code be amended to read as follows:	9

Sec. 4749.01.  As used in this chapter:

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(A) "Private investigator" means any person who engages in	11
the business of private investigation.	12

(B) "Business of private investigation" means, except when	13
performed by one excluded under division (H) of this section, the	14
conducting, for hire, in person or through a partner or employees,	15
of any investigation relevant to any crime or wrong done or	16
threatened, or to obtain information on the identity, habits,	17
conduct, movements, whereabouts, affiliations, transactions,	18
reputation, credibility, or character of any person, or to locate	19
and recover lost or stolen property, or to determine the cause of	20
or responsibility for any libel or slander, or any fire, accident,	21
or damage to property, or to secure evidence for use in any	22
legislative, administrative, or judicial investigation or	23
proceeding.	24

(C) "Security guard provider" means any person who engages in	25
the business of security services.	26

(D) "Business of security services" means either of the	27
following:	28

(1) Furnishing, for hire, watchmenwatchpersons, guards,	29
private patrolmenpatrol officers, or other persons whose primary	30
duties are to protect persons or property;	31

(2) Furnishing, for hire, guard dogs, or armored motor	32
vehicle security services, in connection with the protection of	33
persons or property.	34

(E) "Class A license" means a license issued under section	35
4749.03 of the Revised Code that qualifies the person issued the	36
license to engage in the business of private investigation and the	37
business of security services.	38

(F) "Class B license" means a license issued under section	39
4749.03 of the Revised Code that qualifies the person issued the	40
license to engage only in the business of private investigation.	41

(G) "Class C license" means a license issued under section	42
4749.03 of the Revised Code that qualifies the person issued the	43
license to engage only in the business of security services.	44

(H) "Private investigator," "business of private	45
investigation," "security guard provider," and "business of	46
security services" do not include:	47

(1) Public officers and employees whose official duties	48
require them to engage in investigatory activities;	49

(2) Attorneys at law or any expert hired by an attorney at	50
law for consultation or litigation purposes;	51

(3) A consumer reporting agency, as defined in the "Fair	52
Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A. 1681a, as	53
amended, provided that the consumer reporting agency is in	54
compliance with the requirements of that act and that the agency's	55
activities are confined to any of the following:	56

(a) The issuance of consumer credit reports;

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(b) The conducting of limited background investigations that	58
pertain only to a client's prospective tenant and that are engaged	59
in with the prior written consent of the prospective tenant;	60

(c) The business of pre-employment background investigation.	61
As used in division (H)(3)(c) of this section, "business of	62
pre-employment background investigation" means, and is limited to,	63
furnishing for hire, in person or through a partner or employees,	64
the conducting of limited background investigations, in-person	65
interviews, telephone interviews, or written inquiries that	66
pertain only to a client's prospective employee and the employee's	67
employment and that are engaged in with the prior written consent	68
of the prospective employee.	69

(4) Certified public insurance adjusters that hold a	70
certificate of authority issued pursuant to sections 3951.01 to	71
3951.09 of the Revised Code, while the adjuster is investigating	72
the cause of or responsibility for a fire, accident, or other	73
damage to property with respect to a claim or claims for loss or	74
damage under a policy of insurance covering real or personal	75
property;	76

(5) Personnel placement services licensed under Chapter	77
4143. of the Revised Code and persons who act as employees of such	78
entities engaged in investigating matters related to personnel	79
placement activities;	80

(6) An employee in the regular course of the employee's	81
employment, engaged in investigating matters pertinent to the	82
business of his or herthe employee's employer or protecting	83
property in the possession of his or herthe employee's employer,	84
provided the employer is deducting all applicable state and	85
federal employment taxes on behalf of the employee and neither the	86
employer nor the employee is employed by, associated with, or	87
acting for or on behalf of any private investigator or security	88
guard provider;	89

(7) Any better business bureau or similar organization or	90
any of its employees while engaged in the maintenance of the	91
quality of business activities relating to consumer sales and	92
services;	93

(8) An accountant who is registered or certified under	94
Chapter 4701. of the Revised Code or any of the accountant's	95
employees while engaged in activities for which the accountant is	96
certified or registered;	97

(9) Any person who, for hire or otherwise, conducts	98
genealogical research in this state.	99

As used in division (H)(9) of this section, "genealogical	100
research" means the determination of the origins and descent of	101
families, including the identification of individuals, their	102
family relationships, and the biographical details of their lives.	103
"Genealogical research" does not include furnishing for hire	104
services for locating missing persons or natural or birth parents	105
or children.	106

(10) Any person residing in this state who conducts research	107
for the purpose of locating the last known owner of unclaimed	108
funds, provided that the person is in compliance with Chapter 169.	109
of the Revised Code and rules adopted thereunder. The exemption	110
set forth in division (H)(10) of this section applies only to the	111
extent that the person is conducting research for the purpose of	112
locating the last known owner of unclaimed funds.	113

As used in division (H)(10) of this section, "owner" and	114
"unclaimed funds" have the same meanings as in section 169.01 of	115
the Revised Code.	116

(11) A professional engineer who is registered under Chapter	117
4733. of the Revised Code or any of his employees.	118

As used in division (H)(11) of this section and	119
notwithstanding division (I) of this section, "employee" has the	120
same meaning as in section 4101.01 of the Revised Code.	121

(12) Any person residing in this state who, for hire or	122
otherwise, conducts research for the purpose of locating persons	123
to whom the state of Ohio owes money in the form of warrants, as	124
defined in division (S) of section 131.01 of the Revised Code,	125
that the state voided but subsequently reissues.	126

(13) An independent insurance adjuster who, as an	127
individual, an independent contractor, an employee of an	128
independent contractor, adjustment bureau association,	129
corporation, insurer, partnership, local recording agent, managing	130
general agent, or self-insurer, engages in the business of	131
independent insurance adjustment, or any person who supervises the	132
handling of claims except while acting as an employee of an	133
insurer licensed in this state while handling claims pertaining to	134
specific policies written by that insurer.	135

As used in division (H)(13) of this section, "independent	136
insurance adjustment" means conducting investigations to determine	137
the cause of or circumstances concerning a fire, accident, bodily	138
injury, or damage to real or personal property; determining the	139
extent of damage of that fire, accident, injury, or property	140
damage; securing evidence for use in a legislative,	141
administrative, or judicial investigation or proceeding, adjusting	142
losses; and adjusting or settling claims, including the	143
investigation, adjustment, denial, establishment of damages,	144
negotiation, settlement, or payment of claims in connection with	145
insurance contractors, self-insured programs, or other similar	146
insurance programs. "Independent adjuster" does not include either	147
of the following:	148

(a) An attorney who adjusts insurance losses incidential	149
incidental to the practice of law and who does not advertise or	150
represent that he or shethe attorney is an independent insurance	151
adjuster;	152

(b) A licensed agent or general agent of an insurer licensed	153
in this state who processes undisputed or uncontested losses for	154
insurers under policies issued by that agent or general agent.	155

(14) Except for a commissioned peace officer who engages in	156
the business of private investigation or compensates others who	157
engage in the business of private investigation or the business of	158
security services or both, any commissioned peace officer as	159
defined in division (B) of section 2935.01 of the Revised Code.	160

(I) "Employee" means every person who may be required or	161
directed by any employer, in consideration of direct or indirect	162
gain or profit, to engage in any employment, or to go, or work, or	163
be at any time in any place of employment, provided that the	164
employer of the employee deducts all applicable state and federal	165
employment taxes on behalf of the employee.	166

Sec. 4749.04.  (A) The director of commerce may revoke,	167
suspend, or refuse to renew, when a renewal form has been	168
submitted, the license of any private investigator or security	169
guard provider, or the registration of any employee of a private	170
investigator or security guard provider, for any of the following:	171

(1) Violation of any of the provisions of division (B) or	172
(C) of section 4749.13 of the Revised Code;	173

(2) Conviction of a felony or a crime involving moral	174
turpitude;	175

(3) Violation of any rule of the director governing private	176
investigators, the business of private investigation, security	177
guard providers, or the business of security services;	178

(4) Testifying falsely under oath, or suborning perjury, in	179
any judicial proceeding;	180

(5) Failure to satisfy the requirements specified in	181
division (D) of section 4749.03 of the Revised Code.	182

Any person whose license or registration is revoked,	183
suspended, or not renewed when a renewal form is submitted may	184
appeal in accordance with Chapter 119. of the Revised Code.	185

(B) In lieu of suspending, revoking, or refusing to renew	186
the class A, B, or C license, or of suspending, revoking, or	187
refusing to renew the registration of an employee of a class A, B,	188
or C licensee, the director of commerce may impose a civil penalty	189
of not less than one hundred dollars or more than twoone hundred	190
dollars for each calendar day of a violation of any of the	191
provisions of this section or of division (B) or (C) of section	192
4749.13 of the Revised Code or of a violation of any rule of the	193
director governing private investigators, the business of private	194
investigation, security guard providers, or the business of	195
security services.	196

Sec. 4749.06.  (A) Each class A, B, or C licensee shall	197
register histhe licensee's investigator or security guard	198
employees, with the department of commerce, which shall maintain a	199
record of each licensee and registered employee and make it	200
available, upon request, to any law enforcement agency. The class	201
A, B, or C licensee shall file an application to register a new	202
employee no sooner than three days nor later than seven calendar	203
days after the date on which the employee is hired.	204

(B)(1) Each employee's registration application shall be	205
accompanied by one complete set of histhe employee's	206
fingerprints, one recent photograph of the employee, histhe	207
employee's physical description, and an eighteen-dollar	208
registration fee.	209

(2) If the director requests the bureau of criminal	210
identification and investigation to conduct an investigation of a	211
licensee's employee and if the bureau assesses the director a fee	212
for the investigation, the director, in addition to any other fee	213
assessed pursuant to this chapter, may assess the licensee a fee	214
that is equal to the fee assessed by the bureau. If, after	215
investigation, the bureau finds that the employee has not been	216
convicted of a felony within the last twenty years, the director	217
shall issue to the employee an identification card bearing the	218
license number and signature of the licensee, which in the case of	219
a corporation shall be the signature of its president or its	220
qualifying agent, and containing the employee's name, address,	221
age, physical description, and right thumb print or other	222
identifying mark as the director prescribes, a recent photograph	223
of the employee, and histhe employee's signature. The director	224
may issue a duplicate of a lost, spoliated, or destroyed	225
identification card issued under this section, upon payment of a	226
fee fixed by the director, not exceeding five dollars.	227

(C) NoExcept as provided in division (E) of this section, no	228
class A, B, or C licensee shall permit an employee, other than an	229
individual who qualified a corporation for licensure, to engage in	230
the business of private investigation, the business of security	231
services, or both businesses until the employee receives an	232
identification card from the department, except that pending the	233
issuance of an identification card, a class A, B, or C licensee	234
may offer for hire security guard or investigator employees	235
provided the licensee obtains a waiver from the person who	236
receives, for hire, security guard or investigative services,	237
acknowledging that the person is aware the employees have not	238
completed their registration and agreeing to their employment.	239

(D) If a class A, B, or C licensee, or a registered employee	240
of a class A, B, or C licensee, intends to carry a firearm, as	241
defined in section 2923.11 of the Revised Code, in the course of	242
engaging in the business or employment, he eitherthe licensee or	243
registered employee shall satisfactorily complete a firearms basic	244
training program that includes twenty hours of handgun training	245
and five hours of training in the use of other firearms, if any	246
other firearm is to be used, or equivalency training, if	247
authorized, or shall be a former peace officer who previously had	248
successfully completed a firearms training course, shall receive a	249
certificate of satisfactory completion of that program or written	250
evidence of approval of the equivalency training, shall file an	251
application for registration, shall receive a firearm-bearer	252
notation on histhe licensee's or registered employee's	253
identification card, and shall annually requalify on a firearms	254
range, all as described in division (A) of section 4749.10 of the	255
Revised Code. A private investigator, security guard provider, or	256
employee is authorized to carry a firearm only in accordance with	257
that division.	258

(E) This section does not apply to commissioned peace	259
officers, as defined in division (B) of section 2935.01 of the	260
Revised Code, working for, either as an employee or independent	261
contractor, a class A, B, or C licensee. For purposes of this	262
chapter, a commissioned peace officer is an employee exempt from	263
registration.	264

Section 2.  That existing sections 4749.01, 4749.04, and	265
4749.06 of the Revised Code are hereby repealed.	266

Section 3.  Section 4749.01 of the Revised Code is presented	267
in this act as a composite of the section as amended by both Am.	268
Sub. S.B. 162 and Am. H.B. 229 of the 121st General Assembly. The	269
General Assembly, applying the principle stated in division (B) of	270
section 1.52 of the Revised Code that amendments are to be	271
harmonized if reasonably capable of simultaneous operation, finds	272
that the composite is the resulting version of the section in	273
effect prior to the effective date of the section as presented in	274
this act.	275