House Bill text for HB0835

HOUSE BILL 835

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Janice E. Arnold-Jones

AN ACT

RELATING TO LICENSING; ENACTING THE SECURITY GUARD ACT; REMOVING CERTAIN REGULATED PERSONS FROM THE PRIVATE INVESTIGATIONS ACT; IDENTIFYING REGULATED PERSONS; CREATING THE SECURITY GUARD ADVISORY BOARD; CREATING THE SECURITY GUARD FUND; PROVIDING LICENSING PROCEDURES AND REQUIREMENTS; PROVIDING PENALTIES; PROVIDING FEE LIMITATIONS; PROVIDING FOR A TRANSITION PERIOD; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 28 of this act may be cited as the "Security Guard Act".

Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the Security Guard Act:

A. "armored car company" means a company that knowingly and willingly transports money and other negotiables for a fee or other remuneration;

B. "bodyguard" means an individual who physically performs the mission of personal security for another individual;

C. "branch office" means an office of a private patrol company physically located in New Mexico and managed, controlled or directed by a private patrol operations manager;

D. "client" means an individual or legal entity having a contract that authorizes services to be provided in return for financial or other consideration;

E. "conviction" means any final adjudication of guilty, whether pursuant to a plea of guilty or nolo contendere or otherwise and whether or not the sentence is deferred or suspended;

F. "department" means the regulation and licensing department;

G. "individual" means a single human being;

H. "legal business entity" means a sole proprietorship, corporation, partnership, limited liability company, limited liability partnership or other entity formed for business purposes;

I. "licensee" means a person licensed pursuant to the Security Guard Act;

J. "private patrol company" means a legal business entity, the location of which may be within or outside of the state, including an independent or proprietary commercial organization that provides private patrol operator services that are performed in New Mexico and the activities of which include employment of licensed private patrol operators or security guards;

K. "private patrol employee" means an individual who is registered by the department to work under the direct control and supervision of a private patrol operator for a private patrol company;

L. "private patrol operations manager" means an individual who:

(1) is licensed as a private patrol operator or registered as a level three security guard and is issued a license by the department as a private patrol operations manager;

(2) directs, controls or manages a private patrol company for the owner of the company; and

(3) is assigned to and operates from the private patrol company that the private patrol operations manager is licensed to manage or from a branch office of that private patrol company;

M. "private patrol operator" means an individual who is licensed by the department to:

(1) conduct uniformed or nonuniformed services as a security guard to protect property and persons on or in the property;

(2) prevent the theft, unlawful taking, loss, embezzlement, misappropriation or concealment of goods, wares, merchandise, money, bonds, stocks, notes, documents, papers or property of any kind;

(3) perform the services required of a security guard or security dog handler or provide security services for an armored car company; or

(4) enforce the policies of a client;

N. "proprietary commercial organization" means an organization or division of an organization that provides full- or part-time security guard services solely for itself;

O. "registrant" means an individual registered as a private patrol employee, a private patrol operations manager or a security guard at any level;

P. "security dog handler" means an individual who patrols with dogs to detect illegal substances or explosives or to detect trespassers or unauthorized persons;

Q. "security guard" means an individual who is registered to engage in uniformed or nonuniformed services under the direct control and supervision of a licensed private patrol operator or a private patrol operations manager to perform such security missions as watchman, fixed post guard, dog handler, patrolman or other mission to protect property or prevent thefts; and

R. "special event" means a parade or other public or private event of short duration requiring security.

Section 3. [NEW MATERIAL] LICENSE REQUIRED.--It is unlawful for an individual to:

A. act as a private patrol operator, security guard or private patrol operations manager or to make any representation as being a licensee or registrant unless the individual is licensed by the department pursuant to the Security Guard Act;

B. render physical protection for remuneration as a bodyguard unless the individual is licensed as a private patrol operator;

C. continue to act as a private patrol operator, security guard or private patrol operations manager if the individual's license issued pursuant to the Security Guard Act has expired; or

D. falsely represent that the individual is employed by a licensee.

Section 4. [NEW MATERIAL] PERSONS EXEMPTED.--

A. As used in this section, "temporary" means a period of time not to exceed the duration of one private event or one school or nonprofit organization event, as described in Paragraphs (2) and (3) of Subsection B of this section.

B. The Security Guard Act does not apply to:

(1) an individual employed exclusively and regularly by one employer in connection with the affairs of that employer; provided that the individual patrols or provides security only on the premises of the employer as limited by the employer;

(2) an individual employed exclusively to provide temporary security at a private event that is not open to the public;

(3) an individual providing temporary security at athletic or other youth events and where the events occur under the auspices of a public or private school or a nonprofit organization;

(4) an officer or employee of the United States or this state or a political subdivision of the United States or this state while that officer or employee is engaged in the performance of the officer's or employee's official duties; or

(5) a charitable philanthropic society or association duly incorporated under the laws of this state that is organized and maintained for the public good and not for private profit.

Section 5. [NEW MATERIAL] ADMINISTRATION OF ACT--RULES.--

A. The department shall enforce and administer the provisions of the Security Guard Act.

B. The department shall keep a record of each individual licensee, including a database that contains each licensee's license number, home and business addresses and telephone numbers, primary email address and web site, if one exists, valid complaints against the licensee, license violations and disposition of complaints and violations.

C. The department shall adopt and enforce rules pursuant to the Uniform Licensing Act necessary to carry out the provisions of the Security Guard Act, including establishing professional ethical standards.

D. The department shall adopt rules for:

(1) licensing private patrol operators, private patrol operations managers and private patrol employees;

(2) registering security guards and private patrol employees;

(3) establishing minimum training and educational standards for licensure and registration;

(4) establishing examinations, study guides and continuing education requirements;

(5) establishing and operating a branch office;

(6) creating a policy on reciprocity with other states and territories of the United States;

(7) providing permits for security guards for special events;

(8) conducting background investigations; and

(9) collecting and disclosing statistics and information regarding matters within the board's jurisdiction.

Section 6. [NEW MATERIAL] SECURITY GUARD ADVISORY BOARD--CREATED--MEMBERS.--

A. The "security guard advisory board" is created.

B. The superintendent of regulation and licensing shall appoint members to the security guard advisory board to assist in the conduct of the examination process for licensees and registrants and to assist the department in other manners as requested by the superintendent or provided for in rules of the department.

C. The security guard advisory board members shall consist of the following:

(1) three security guards;

(2) five private patrol operators or private patrol operations managers;

(3) three security instructors who use training material approved by the department; and

(4) one member of the public.

D. Members of the security guard advisory board shall serve three-year staggered terms as determined by the superintendent of regulation and licensing and shall not be reappointed, if at all, unless three years have elapsed since the expiration of a prior term.

E. The security guard advisory board shall meet monthly as scheduled by the chair and as called by the superintendent of regulation and licensing. The board annually shall elect a chair and recording secretary from among its members.

F. The public member of the security guard advisory board or the public member's spouse shall not:

(1) have been licensed pursuant to the Security Guard Act, Private Investigations Act or any prior similar statutory provisions; or

(2) have a direct or indirect financial interest in a private investigation company, private patrol company, polygraph business or a related business.

G. Members of the security guard advisory board shall be reimbursed pursuant to the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance for each day spent in the discharge of their duties.

Section 7. [NEW MATERIAL] PRIVATE PATROL OPERATOR-- REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license for a private patrol operator to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least twenty-one years of age;

(2) is of good moral character;

(3) has successfully passed an examination as required by department rules;

(4) has not been convicted of a felony offense, an offense involving dishonesty, an offense involving an intentional violent act, the illegal use or possession of a deadly weapon or the illegal use, possession or distribution of drugs and has not been found to have violated professional ethical standards;

(5) has at least three years' experience of actual work performed as a security guard or an equivalent position, one year of which shall have been in a supervisory capacity. The experience shall have been acquired within five years preceding the filing of the application with the department. Years of qualifying experience and the precise nature of that experience shall be substantiated with reasonable evidence by written certification from the applicant's employers and shall be subject to independent verification by the department as it determines is warranted. The burden of proving necessary experience is on the applicant;

(6) is firearm-certified if the position will require being armed with a firearm; and

(7) meets other requirements as set forth in rules of the department.

B. A private patrol operator may not investigate acts except those that are incidental to a theft, embezzlement, loss, misappropriation or concealment of property or other item that the private patrol operator has been engaged or hired to protect, guard or watch.

Section 8. [NEW MATERIAL] PRIVATE PATROL COMPANY-- REQUIREMENTS FOR LICENSURE.--

A. The department shall issue a license for a private patrol company to a person who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) if an individual, is of good moral character; or if a legal business entity, the owners, officers or directors of the entity are of good moral character;

(2) if an individual, has not been convicted of a felony offense, an offense involving dishonesty, an offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards; or if a legal business entity, the owners, officers or directors of the entity, either singly or collectively, have not been convicted of a felony offense, an offense involving dishonesty or an offense involving an intentional violent act or the illegal use or possession of a deadly weapon and have not been found to have violated professional ethical standards;

(3) has an owner or a licensed private patrol operations manager who manages the daily operations of the private patrol company;

(4) maintains a physical location in New Mexico where records are maintained and made available for department inspection;

(5) maintains a New Mexico registered agent if the applicant is a private patrol company located outside of New Mexico; and

(6) meets all other requirements set forth in the rules of the department.

B. The owner or the chief executive officer of a private patrol company shall maintain a general liability certificate of insurance in an amount required by the department. The department shall suspend the license issued pursuant to this section of a private patrol company that fails to maintain an effective general liability certificate of insurance as required. The department shall not reinstate the license of a private patrol company that has had its license suspended pursuant to this subsection until an application is submitted to the department with the necessary fees and a copy of the private patrol company's general liability certificate of insurance newly in effect. The department may deny an application for reinstatement of a private patrol company's license, notwithstanding the applicant's compliance with this subsection, for:

(1) a reason that would justify a denial to issue a new private patrol company license or that would be cause for a suspension or revocation of a private patrol company's license; or

(2) the performance by the applicant of an act requiring a license issued pursuant to the Security Guard Act while the applicant's license is under suspension for failure to maintain the applicant's general liability certificate of insurance in effect.

Section 9. [NEW MATERIAL] PRIVATE PATROL OPERATIONS MANAGER--REQUIREMENTS FOR LICENSURE--NOTIFICATION OF DEPARTMENT IN EVENT OF TERMINATION OF EMPLOYMENT.--

A. The department shall issue a license for a private patrol operations manager to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) possesses a current license in good standing as a private patrol operator or a registration as a level three security guard;

(2) has successfully passed an examination required by department rule;

(3) is employed by the private patrol company that the applicant is being licensed to manage; and

(4) meets other requirements as set forth in the rules of the department.

B. A private patrol operations manager who ceases to be employed by the private patrol company that the manager is licensed to manage, before leaving the company, shall surrender the private patrol operations manager's license to the owner, officer or director who is required to temporarily take over the management of the private patrol company. The owner, officer or director who temporarily takes over managing the private patrol company within thirty days of the termination from employment of the private patrol operations manager shall:

(1) notify the department of the termination of the employment of the private patrol operations manager;

(2) submit the surrendered license; and

(3) submit an application to the department naming a new private patrol operations manager, who shall not begin to perform the duties of a private patrol operations manager until the department grants the applicant a private patrol operations manager's license.

C. Failure to notify the department within thirty days of the private patrol operations manager's termination from employment subjects the license of the private patrol company to suspension or revocation by the department.

D. Reinstatement of the private patrol company's license may occur only upon the filing of an application for reinstatement and payment of the reinstatement fee.

Section 10. [NEW MATERIAL] SECURITY GUARD--LEVELS OF REGISTRATION.--

A. A security guard shall be registered at one of the three levels enumerated in this section that are based on experience, age and other qualifications of the registrant:

(1) level one is the entry level registration for security guards who will be working in a position not requiring the registrant to carry arms;

(2) level two is the intermediate level registration for security guards who are required to be armed but not with firearms; and

(3) level three is the advanced level registration for security guards who may be required to be armed with a firearm.

B. Each security guard shall receive a card issued by the department in the security guard's name with a definite expiration date that shall be carried by the security guard at all times when the security guard is performing duties that require the security guard to be registered pursuant to the provisions of this section. A security guard is not required to obtain a new card each time the security guard changes employment.

Section 11. [NEW MATERIAL] SECURITY GUARD--LEVEL ONE--

REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2009, every individual seeking employment or employed as a level one security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level one security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least eighteen years of age;

(2) is of good moral character;

(3) has successfully completed an examination as required by department rule;

(4) has not been convicted of a felony or an offense involving dishonesty, an offense involving an intentional violent act or the illegal use or possession of a deadly weapon and has not been found to have violated professional ethical standards;

(5) has completed a curriculum approved in department rule consisting of level one security guard training prior to being placed on a guard post for the first time as a level one security guard; that training may be provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) an in-house training program provided by a licensed private patrol company using a curriculum approved by the department; or

(c) any other department-approved educational institution using a curriculum approved by the department and that complies with department standards set forth in department rules;

(6) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, a level three security guard or a private patrol operations manager; and

(7) meets other requirements as set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of the employment termination of a level one security guard and the reasons for the termination.

Section 12. [NEW MATERIAL] SECURITY GUARD--LEVEL TWO-- REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2009, every individual seeking employment or employed as a level two security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level two security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) meets the requirements to be granted registration as a level one security guard and maintains in good standing a current registration as a level one security guard;

(2) has successfully completed an examination as required by department rule;

(3) possesses a high school diploma or its equivalent;

(4) in addition to the training required to be registered as a level one security guard, has completed a curriculum approved in department rule of level two security guard training prior to being placed on a guard post for the first time as a level two security guard; that training may be provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) an in-house training program provided by a licensed private patrol company using a curriculum approved by the department;

(d) any other department-approved educational institution using a curriculum approved by the department and complying with department standards set forth in department rules;

(5) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, a level three security guard or a private patrol operations manager; and

(6) meets other requirements as set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of the employment termination of a level two security guard and the reasons for the termination.

Section 13. [NEW MATERIAL] SECURITY GUARD--LEVEL THREE--

REGISTRATION--REQUIREMENTS.--

A. On or after July 1, 2009, every individual seeking employment or employed as a level three security guard shall file an application for registration with the department.

B. The department shall issue a registration for a level three security guard to an individual who files a completed application accompanied by the required fees and who submits satisfactory evidence that the applicant:

(1) is at least twenty-one years of age;

(2) meets the requirements to be granted registration as a level two security guard and maintains in good standing a current registration as a level two security guard;

(3) has successfully completed an examination as required by department rule;

(4) possesses a high school diploma or its equivalent;

(5) in addition to the training required to be registered as a level two security guard and before the applicant shall be placed for the first time at a guard post as a level three security guard, has completed a curriculum approved by the department consisting of the minimum training for firearm certification prescribed by the department; provided that the additional training required by the department is provided by:

(a) a public educational institution in New Mexico or an educational institution licensed by the higher education department pursuant to the Post-Secondary Educational Institution Act;

(b) an in-house training program provided by a licensed private patrol company using a curriculum approved by the department;

(d) any other department-approved educational institution using a curriculum approved by the department and complying with department standards set forth in department rules;

(6) is firearm-certified by the New Mexico law enforcement academy or the national rifle association;

(7) is employed by a private patrol company under the direct supervision of a licensed private patrol operator, another level three security guard or a private patrol operations manager;

(8) beginning on July 1, 2009, has successfully passed a psychological evaluation as prescribed by the department to determine suitability for carrying firearms; and

(9) meets other requirements as set forth in department rules.

C. A private patrol company shall notify the department within thirty days from the date of the employment termination of a level three security guard and the reasons for the termination.

Section 14. [NEW MATERIAL] FEES.--

A. The department shall establish a schedule of reasonable fees as follows:

(1) private patrol operator fees:

(a) application fee, not to exceed one hundred dollars ($100);

(b) initial private patrol operator's license fee or license renewal fee, not to exceed three hundred dollars ($300); and

(c) initial private patrol operations manager license fee or license renewal fee, not to exceed two hundred dollars ($200);

(2) security guard fees:

(a) level one or level two security guard registration fee or registration renewal fee, not to exceed fifty dollars ($50.00); and

(b) level three security guard registration fee or registration renewal fee, not to exceed seventy-five dollars ($75.00); and

(3) other fees applying to private patrol operators:

(a) change in license fee, not to exceed two hundred dollars ($200);

(b) late fee on license or registration renewals, not to exceed one hundred dollars ($100);

(d) special event license fee for a private patrol company, not to exceed fifty dollars ($50.00).

B. Fees charged by the department shall not be increased prior to fiscal year 2011.

Section 15. [NEW MATERIAL] LICENSE AND REGISTRATION RENEWAL.--

A. A license or registration granted pursuant to the provisions of the Security Guard Act shall be renewed by the department annually unless the term of the license is set by the department in rule to be a longer period.

B. A licensee or registrant with an expired license or registration shall not perform an activity for which a license or registration is required pursuant to the Security Guard Act until the license or registration has been renewed or reinstated.

C. The department may require proof of continuing education credits or other proof of competency as a requirement of renewal or reinstatement of a license or registration.

D. A license or registration issued to a person pursuant to the Security Guard Act shall not be transferred or assigned.

Section 16. [NEW MATERIAL] DISPLAY OF LICENSE-- NOTIFICATION OF CHANGES.--

A. A license shall at all times be posted in a conspicuous place in the principal place of business in New Mexico of the licensee.

B. A copy of the registration of each registrant employed by a private patrol company shall be maintained in the main New Mexico office of the company and in the branch office in which the registrant works.

C. A registration card issued by the department shall at all times be in the possession of and located on the person of a registrant when working.

D. A security guard shall wear the registration card on the outside of the guard's uniform so that the card is visible to others.

E. A licensee, including owners, officers or directors of a private patrol company, or a registrant shall notify the department immediately in writing of a change in the mailing or contact address of the licensee or registrant.

F. Failure to notify the department within thirty days of changes required to be reported pursuant to this section or failure to carry or display a registration as required is grounds for suspension of a license or registration.

Section 17. [NEW MATERIAL] GENERAL OPERATIONS PROVISIONS OF COMPANIES--MANAGEMENT--LIABILITY FOR EMPLOYEES' CONDUCT--MAINTENANCE OF RECORDS REQUIRED--REQUIRED AND PERMITTED ACTIVITIES--ALLOWED CATEGORIES OF UNLICENSED EMPLOYEES.--

A. An owner of a private patrol company providing services in New Mexico shall operate, direct, control and manage that company; provided that the owner is licensed as a private patrol operator or registered as a level three security guard. An owner of a private patrol company who is not licensed as a private patrol operator or registered as a level three security guard shall employ a private patrol operations manager and shall turn over the operation, direction, control and management of the private patrol company to that manager.

B. A private patrol company shall not conduct business under a fictitious name until the company has obtained the authorization for use of the name from the department. The department shall not authorize the use of a fictitious name that may generate public confusion with the name of a public officer or agency or the name of an existing private patrol company.

C. A private patrol company is liable for the conduct of the company's employees, including the conduct of its private patrol operations manager.

D. A private patrol company shall maintain records of the qualifications, performance and training of all of its current and former employees as required by the department. The records are subject to inspection by the department upon reasonable notice to the owner or private patrol operations manager.

E. Except as otherwise provided in this section, every employee of a licensed private patrol company shall be licensed or registered by the department as employees of the company with which the employee is employed; provided, however, that a licensee or registrant may work for more than one company concurrently.

F. A licensee or registrant shall notify the department in writing within thirty days of each change in the licensee's or registrant's employment by filing an amendment to the licensee's or registrant's application obtained from the department. If a licensee or registrant ceases to be employed by a private patrol company, the licensee or registrant shall notify the department in writing within thirty days from the date the licensee or registrant ceases employment with that company.

G. A private patrol company shall notify the department within thirty days of a change in ownership structure or, if a corporation, a change in the membership of the board of directors.

H. Employees of a private patrol company who are engaged exclusively to perform stenographic, typing, word processing, secretarial, receptionist, accounting, bookkeeping, information technology or other business applications or support functions and who do not perform the work of a private patrol operator or a security guard are not required to be licensed or registered pursuant to the Security Guard Act.

I. An individual who is not licensed or qualified to be employed as a private patrol operations manager shall not be employed to perform the duties required of that manager.

Section 18. [NEW MATERIAL] LIABILITY INSURANCE.--

A. The owner or the chief executive officer of a private patrol company shall maintain a general liability certificate of insurance in an amount required by the department.

B. A general liability certificate of insurance executed and filed with the department pursuant to the Security Guard Act shall remain in force until the surety company issuing the bond or the certificate has terminated future indemnity by notice to the department.

Section 19. [NEW MATERIAL] PROHIBITED ACTS.--

A. A licensee or registrant may divulge to a law enforcement officer or district attorney, the attorney general or the attorney general's representatives information the licensee or registrant acquires concerning a criminal offense, but the licensee or registrant shall not divulge to any other person, except as the licensee or registrant is required by law, information acquired by the licensee or registrant except at the direction of the licensee's or registrant's employer or the client for whom the information was obtained.

B. No licensee or registrant shall knowingly make a false report to the licensee's or registrant's employer or the client for whom the information was being obtained.

C. No written report shall be submitted to a client except by the licensee, or a person authorized by the licensee, and the person submitting the report shall exercise diligence in ascertaining whether the facts and information of the report are true and correct.

D. No licensee or registrant shall use a title or wear a uniform, use an insignia, use an identification card or make a statement with the intent to give an impression that the licensee or registrant is connected in any way with the federal or state government or a political subdivision of either.

E. No private patrol operator licensee, private patrol operations manager or level three security guard shall use a badge except when engaged in security guard or patrol work and while wearing a uniform.

F. No licensee or registrant shall appear as an assignee party in a proceeding involving a claim and delivery action to recover or possess property or action for foreclosing a chattel mortgage, mechanic's lien, materialman's lien or any other lien.

Section 20. [NEW MATERIAL] DENIAL, SUSPENSION OR REVOCATION OF LICENSE OR REGISTRATION.--In accordance with procedures contained in the Uniform Licensing Act, the department may deny, suspend or revoke a license or registration held or applied for under the Security Guard Act or reprimand or place on probation a licensee or registrant upon grounds that the licensee, registrant or applicant:

A. made a false statement or gave false information in connection with an application for a license or registration or renewal or reinstatement of a license or registration;

B. violated a provision of the Security Guard Act;

C. violated a rule of the department adopted pursuant to the Security Guard Act;

D. has been convicted of a felony or any crime involving dishonesty or illegally using, carrying or possessing a deadly weapon;

E. impersonated or permitted or aided and abetted an employee of a private patrol company to impersonate a law enforcement officer or employee of the United States or of a state or political subdivision of either;

F. committed or permitted an employee of a private patrol company to commit an act while the license or registration of the person licensed or registered pursuant to the Security Guard Act was expired that would be cause for the suspension or revocation of a license or registration or grounds for the denial of an application for a license or registration;

G. willfully failed or refused to render to a client services or a report as agreed between the parties, for which compensation has been paid or tendered in accordance with the agreement of the parties;

H. committed assault, battery or kidnapping or used force or violence on a person without justification;

I. knowingly violated or advised, encouraged or assisted the violation of a court order or injunction in the course of business of the licensee or registrant;

J. knowingly issued a worthless or otherwise fraudulent payroll check that was not redeemed within two days of denial of payment by a bank;

K. has been chronically or persistently inebriated or addicted to the illegal use of dangerous or narcotic drugs;

L. has been adjudged mentally incompetent or insane by regularly constituted authorities;

M. while unlicensed, committed or aided and abetted the commission of any act for which a license is required under the Security Guard Act; or

N. has been found to have violated the requirements of a state or federal labor, tax or employee benefit law or rule.

Section 21. [NEW MATERIAL] HEARING--PENALTIES.--

A. A person who is denied a license or registration or who has a license or registration suspended or revoked shall be entitled to a hearing before the department if, within twenty days after the denial, suspension or revocation, a request for a hearing is received by the department. The procedures of the Uniform Licensing Act shall be followed pertaining to the hearing to the extent that they do not conflict with the provisions of the Security Guard Act.

B. In accordance with the provisions of the Uniform Licensing Act, and in addition to other penalties provided by law, the department may impose the following:

(1) for a violation of the Security Guard Act, a civil penalty not to exceed one thousand dollars ($1,000) for each violation; and

(2) against a person who is found by the department to be engaging in a practice regulated by the department without an appropriate license or registration, civil penalties not to exceed one thousand dollars ($1,000).

Section 22. [NEW MATERIAL] LICENSE NOT TRANSFERABLE.--

A. A license or registration issued pursuant to the Security Guard Act shall not be transferred or assigned.

B. The department shall adopt by rule procedures for changes in the name or management of a private patrol company. If the private patrol company fails to comply with the procedures established by department rule, the private patrol company shall be considered to be operating without a license.

Section 23. [NEW MATERIAL] LOCAL REGULATIONS.--The provisions of the Security Guard Act shall not prevent the local authorities of any city, county or city and county by ordinance and within the exercise of the police power of such city, county or city and county from imposing local ordinances upon any street patrol special officer or upon any person licensed within the scope of the Security Guard Act if the ordinances are consistent with that act.

Section 24. [NEW MATERIAL] FUND ESTABLISHED.--

A. The "security guard fund" is created in the state treasury.

B. All license and registration fees received by the department pursuant to the Security Guard Act shall be deposited in the fund and are appropriated to the department to be used for the administration and implementation of that act.

C. The state treasurer shall invest the fund as other state funds are invested, and all income derived from investment of the fund shall be credited to the fund.

D. All balances in the fund shall remain in the fund and shall not revert to the general fund.

E. The department shall administer the fund, and money in the fund shall be expended by warrant issued by the secretary of finance and administration on vouchers signed by the superintendent of regulation and licensing.

F. No more than five percent of the fund shall be used by the department for administration of the fund.

Section 25. [NEW MATERIAL] FIREARMS.--A private patrol operator, a level three security guard or a private patrol operations manager may carry a firearm upon successful completion of the mandatory firearm training required by rules of the department.

Section 26. [NEW MATERIAL] PENALTIES.--

A. A person who engages in a business regulated by the Security Guard Act who fraudulently makes a representation as being a licensee or registrant is guilty of a misdemeanor and if convicted shall be sentenced pursuant to Section 31-19-1 NMSA 1978.

B. An individual who fraudulently represents that the individual is employed by a licensee is guilty of a petty misdemeanor and if convicted shall be sentenced pursuant to Section 31-19-1 NMSA 1978.

C. A person who violates a mandatory requirement, as set forth by the department in rule, of the Security Guard Act is guilty of a petty misdemeanor, except as provided in Subsection A of this section, and, if convicted, shall be sentenced pursuant to Section 31-19-1 NMSA 1978.

Section 27. [NEW MATERIAL] RECIPROCITY.--

A. The department may enter into a reciprocity agreement with another state for the purpose of licensing or registering applicants to perform activities regulated by the Security Guard Act.

B. An applicant from another state at the time of application for licensure or registration in New Mexico shall be licensed or registered in that other state to perform the services for which the applicant is seeking a New Mexico license or registration.

C. The department may develop rules that allow for reciprocity on a temporary or limited basis without requiring an applicant licensed or registered in another state subject to a reciprocity agreement to be licensed or registered in New Mexico; provided that the state of licensure or registration:

(1) has licensure or registration requirements that meet or exceed those of New Mexico;

(2) has no record of disciplinary action taken against the applicant in the last year; and

(3) can verify that the applicant has engaged in activities for at least one year in the state with reciprocity that are required to be licensed or registered pursuant to the Security Guard Act.

Section 28. [NEW MATERIAL] BACKGROUND INVESTIGATIONS.--

A. The department shall adopt rules that:

(1) are developed in conjunction with the department of public safety that require periodic background investigations of all persons licensed or registered pursuant to the Security Guard Act to determine if the person has a criminal history;

(2) require all applicants for licensure or registration to be fingerprinted on two fingerprint cards or electronically as required for submission to the federal bureau of investigation to conduct a national criminal history investigation and for submission to the department of public safety to conduct a state criminal history investigation;

(3) provide for an applicant to inspect or challenge the validity of the record developed by the background investigation if the applicant is denied a license or registration; and

(4) establish a fee for fingerprinting and conducting a background investigation for an applicant.

B. Arrest record information received from the federal bureau of investigation and the department of public safety shall be privileged and shall not be disclosed to individuals not directly involved in the decision affecting the specific applicant or employee.

C. The applicant shall pay the cost of obtaining criminal history information from the federal bureau of investigation and the department of public safety.

D. Electronic live scans may be used for conducting criminal history investigations.

Section 29. Section 61-27B-2 NMSA 1978 (being Laws 1993, Chapter 212, Section 2, as amended) is amended to read:

"61-27B-2. DEFINITIONS.--As used in the Private Investigations Act:

A. "armored car company" means a company that knowingly and willingly transports money and other negotiables for a fee or other remuneration;

B. "bodyguard" means an individual who physically performs the mission of personal security for another individual;

C. "branch office" means an office of a private investigation company or a private patrol company physically located in New Mexico and managed, controlled or directed by a private investigations manager or private patrol operations manager;

D. "client" means an individual or legal entity having a contract that authorizes services to be provided in return for financial or other consideration;

E. "conviction" means any final adjudication of guilty, whether pursuant to a plea of guilty or nolo contendere or otherwise and whether or not the sentence is deferred or suspended;

F. "department" means the regulation and licensing department;

G. "individual" means a single human being;

H. "legal business entity" means a sole proprietorship, corporation, partnership, limited liability company, limited liability partnership or other entity formed for business purposes;

I. "licensee" means a person licensed pursuant to the Private Investigations Act;

J. "polygraph examiner" means an individual licensed by the department to engage in the practice of polygraphy;

K. "polygraphy" means the process of employing an instrument designed to graphically record simultaneously the physiological changes in human respiration, cardiovascular activity, galvanic skin resistance or reflex for the purpose of lie detection and includes the reading and interpretation of polygraphic records and results or any other device used to measure truthfulness;

L. "private investigation company" means a legal business entity that provides private investigation services, the location of which may be within or outside of the state, provided that the private investigation services are performed within New Mexico;

M. "private investigator" means an individual who is licensed by the department to engage in business or who accepts employment to conduct an investigation pursuant to the Private Investigations Act to obtain information regarding:

(1) crime or wrongs done or threatened against the United States or any state or territory of the United States;

(2) a person;

(3) the location, disposition or recovery of lost or stolen property;

(4) the cause or responsibility for fires, losses, accidents or damage or injury to persons or properties;

(5) the securing of evidence to be used before a court, administrative tribunal, board or investigating committee or for a law enforcement officer; or

(6) the scene of a motor vehicle accident or evidence related to a motor vehicle accident;

N. "private investigations employee" means an individual who is registered by the department to work under the direct control and supervision of a private investigator for a private investigation company;

O. "private investigations manager" means an individual who:

(1) is licensed as a private investigator and is issued a license by the department as a private investigations manager;

(2) directs, controls or manages a private investigation company for the owner of the company; and

(3) is assigned to and operates from the private investigation company that the private investigations manager is licensed to manage or from a branch office of that private investigation company;

[P. "private patrol company" means a legal business entity, the location of which may be within or outside of the state, including an independent or proprietary commercial organization that provides private patrol operator services that are performed in New Mexico and the activities of which include employment of licensed private patrol operators or security guards;

Q. "private patrol employee" means an individual who is registered by the department to work under the direct control and supervision of a private patrol operator for a private patrol company;

R. "private patrol operations manager" means an individual who:

(1) is licensed as a private patrol operator or registered as a level three security guard and is issued a license by the department as a private patrol operations manager;

(2) directs, controls or manages a private patrol company for the owner of the company; and

(3) is assigned to and operates from the private patrol company that the private patrol operations manager is licensed to manage or from a branch office of that private patrol company;

S. "private patrol operator" means an individual who is licensed by the department to:

(1) conduct uniformed or nonuniformed services as a watchman, security guard or patrolman to protect property and persons on or in the property;

(2) prevent the theft, unlawful taking, loss, embezzlement, misappropriation or concealment of goods, wares, merchandise, money, bonds, stocks, notes, documents, papers or property of any kind; or

(3) perform the services required of a security guard or security dog handler or provide security services for an armored car company;

T. "proprietary commercial organization" means an organization or division of an organization that provides full- or part-time security guard services solely for itself] and

[U.] P. "registrant" means an individual registered as a private investigations employee, a private patrol operations employee or a security guard at any level.

[V. "security dog handler" means an individual who patrols with dogs to detect illegal substances or explosives;

W. "security guard" means an individual who is registered to engage in uniformed or nonuniformed services under the direct control and supervision of a licensed private patrol operator or a private patrol operations manager to perform such security missions as watchman, fixed post guard, dog handler, patrolman or other person to protect property or prevent thefts; and

X. "special event" means a parade or other public or private event of short duration requiring security.]"

Section 30. Section 61-27B-3 NMSA 1978 (being Laws 1993, Chapter 212, Section 3, as amended) is amended to read:

"61-27B-3. LICENSE REQUIRED.--It is unlawful for an individual to:

A. act as a private investigator, [private patrol operator, security guard] private investigations employee or private investigations manager [or private patrol operations manager] or to make any representation as being a licensee or registrant unless the individual is licensed by the department pursuant to the Private Investigations Act;

B. render physical protection for remuneration as a bodyguard unless the individual is licensed as a private investigator or [a private patrol operator] licensed under the Security Guard Act;

C. continue to act as a private investigator, [private patrol operator, security guard] private investigations employee or private investigations manager [or private patrol operations manager] if the individual's license issued pursuant to the Private Investigations Act has expired;

D. falsely represent that the individual is employed by a licensee; or

E. practice polygraphy for any remuneration without a license issued by the department in accordance with the Private Investigations Act."

Section 31. Section 61-27B-4 NMSA 1978 (being Laws 1993, Chapter 212, Section 4, as amended) is amended to read:

"61-27B-4. PERSONS EXEMPTED.--

B. The Private Investigations Act does not apply to:

(1) an individual employed exclusively and regularly by one employer in connection with the affairs of that employer; [provided that the individual patrols or provides security only on the premises of the employer as limited by the employer;

(2) an individual employed exclusively to provide temporary security at a private event that is not open to the public;

(3) individuals providing temporary security at athletic or other youth events and where the events occur under the auspices of a public or private school or a nonprofit organization;

(4)] (2) an attorney licensed in New Mexico conducting private investigations while engaged in the practice of law;

[(5)] (3) an officer or employee of the United States or this state or a political subdivision of the United States or this state while that officer or employee is engaged in the performance of the officer's or employee's official duties;

[(6)] (4) a person engaged exclusively in the business of obtaining and furnishing information concerning the financial rating of persons;

[(7)] (5) a charitable philanthropic society or association duly incorporated under the laws of this state that is organized and maintained for the public good and not for private profit;

[(8)] (6) a licensed collection agency or an employee of the agency while acting within the scope of employment while making an investigation incidental to the business of the agency, including an investigation of the location of a debtor or the debtor's property;

[(9)] (7) admitted insurers, adjusters, agents and insurance brokers licensed by the state performing duties in connection with insurance transactions by them; or

[(10)] (8) an institution subject to the jurisdiction of the director of the financial institutions division of the department or the comptroller of currency of the United States."

Section 32. Section 61-27B-5 NMSA 1978 (being Laws 1993, Chapter 212, Section 5, as amended) is amended to read:

"61-27B-5. ADMINISTRATION OF ACT--RULES.--

A. The department shall enforce and administer the provisions of the Private Investigations Act.

B. The department shall keep a record of each individual licensee.

C. The department shall adopt and enforce rules necessary to carry out the provisions of the Private Investigations Act, including establishing professional ethical standards.

D. The department shall adopt rules regarding:

(1) licensing private investigators, private investigations managers, private investigation companies [private patrol operators, private patrol operations managers, private patrol employees] and polygraph examiners;

(2) registering private investigations employees [security guards and private patrol employees];

(3) establishing minimum training and educational standards for licensure and registration;

(4) establishing continuing education requirements;

(5) establishing and operating a branch office;

(6) creating a policy on reciprocity with other states and territories of the United States; and

[(7) providing permits for security guards for special events; and

(8)] (7) conducting background investigations."

Section 33. Section 61-27B-6 NMSA 1978 (being Laws 2007, Chapter 115, Section 6) is amended to read:

"61-27B-6. PRIVATE INVESTIGATIONS ADVISORY BOARD--CREATED--MEMBERS.--

A. The "private investigations advisory board" is created.

B. The superintendent of regulation and licensing shall appoint members to the advisory board to assist in the conduct of the examination process for licensees and registrants and to assist the department in other manners as requested by the superintendent or provided for in rules of the department.

C. The advisory board members shall consist of at least the following:

(1) two private investigators;

(2) one private [patrol operator] investigations manager;

(3) one polygraph examiner; and

(4) one member of the public.

D. Members of the advisory board shall be reimbursed pursuant to the Per Diem and Mileage Act and shall receive no other compensation, perquisite or allowance for each day spent in the discharge of their duties.

E. The public member of the advisory board or the public member's spouse shall not:

(1) have been licensed pursuant to the Private Investigations Act, [the Private Investigators and Polygraphers Act] the Security Guard Act or any prior similar statutory provisions; or

(2) have a direct or indirect financial interest in a private investigation company, private patrol company, polygraph business or a related business."

Section 34. Section 61-27B-20 NMSA 1978 (being Laws 2007, Chapter 115, Section 20) is amended to read:

"61-27B-20. FEES.--

A. The department shall establish a schedule of reasonable fees as follows:

(1) private investigator fees:

(a) application fee, not to exceed one hundred dollars ($100);

(b) initial private investigator's license fee or license renewal fee, not to exceed three hundred dollars ($300); and

[(2) private patrol operator fees:

(a) application fee, not to exceed one hundred dollars ($100);

(b) initial private patrol operator's license fee or license renewal fee, not to exceed three hundred dollars ($300); and

(c) initial private patrol operations manager license fee or license renewal fee, not to exceed two hundred dollars ($200);

(3) security guard fees:

(a) level one or level two security guard registration fee or registration renewal fee, not to exceed fifty dollars ($50.00); and

(b) level three security guard registration fee or registration renewal fee, not to exceed seventy-five dollars ($75.00);

(4)] (2) polygraph examiners:

(a) application fee, not to exceed one hundred dollars ($100);

(b) initial polygraph examiner's license fee or license renewal fee, not to exceed four hundred dollars ($400); and

[(5)] (3) other fees applying to private investigators [private patrol operators] and polygraph examiners:

(a) change in license fee, not to exceed two hundred dollars ($200); and

(b) late fee on license or registration renewals, not to exceed one hundred dollars ($100).

[(c) special event permit fee, not to exceed one hundred dollars ($100); and

(d) special event license fee for a private patrol company, not to exceed fifty dollars ($50.00).]

B. Fees charged by the department shall not be increased prior to fiscal year 2009."

Section 35. Section 61-27B-22 NMSA 1978 (being Laws 1993, Chapter 212, Section 9, as amended) is amended to read:

"61-27B-22. DISPLAY OF LICENSE--NOTIFICATION OF CHANGES.--

A. A license shall at all times be posted in a conspicuous place in the principal place of business in New Mexico of the licensee.

B. A copy of the registration of each registrant employed by a private investigation company [or a private patrol company] shall be maintained in the main New Mexico office of the company and in the branch office in which the registrant works.

C. A registration card issued by the department shall at all times be in the possession of and located on the person of a registrant when working.

[D. A security guard shall wear the registration card on the outside of the guard's uniform so that the card is visible to others.

E.] D. A licensee, including owners, officers or directors of a private investigation company [or a private patrol company] or a registrant, shall notify the department immediately in writing of a change in the mailing or contact address of the licensee or registrant.

[F.] E. Failure to notify the department within thirty days of changes required to be reported pursuant to this section or failure to carry or display a registration as required is grounds for suspension of a license or registration."

Section 36. Section 61-27B-23 NMSA 1978 (being Laws 2007, Chapter 115, Section 23) is amended to read:

"61-27B-23. GENERAL OPERATIONS PROVISIONS OF COMPANIES--MANAGEMENT--LIABILITY FOR EMPLOYEES' CONDUCT--MAINTENANCE OF RECORDS REQUIRED--REQUIRED AND PERMITTED ACTIVITIES--ALLOWED CATEGORIES OF UNLICENSED EMPLOYEES.--

A. An owner of a private investigation company providing services in New Mexico shall operate, direct, control and manage that company provided that the owner is licensed as a private investigator. An owner of a private investigation company who is not licensed as a private investigator shall employ a private investigator as a private investigations manager and shall turn over the operation, direction, control and management of the private investigation company to that manager.

[B. An owner of a private patrol company providing services in New Mexico shall operate, direct, control and manage that company, provided that the owner is licensed as a private patrol operator or registered as a level three security guard. An owner of a private patrol company who is not licensed as a private patrol operator or registered as a level three security guard shall employ a private patrol operations manager and shall turn over the operation, direction, control and management of the private patrol company to that manager.

C.] B. A private investigation company [or a private patrol company] shall not conduct business under a fictitious name until the company has obtained the authorization for use of the name from the department. The department shall not authorize the use of a fictitious name that may generate public confusion with the name of a public officer or agency or the name of an existing private investigation company. [or private patrol company.

D.] C. A private investigation company is liable for the conduct of the company's employees, including the conduct of its private investigations manager.

[E. A private patrol company is liable for the conduct of the company's employees, including the conduct of its private patrol operations manager.

F.] D. A private investigation company [or a private patrol company] shall maintain records of the qualifications, performance and training of all of its current and former employees as required by the department. The records are subject to inspection by the department upon reasonable notice to the owner or private investigations manager. [or private patrol operations manager.

G.] E. Except as otherwise provided in this section, every employee of a licensed private investigation company [or private patrol company] shall be licensed or registered by the department as employees of the company with which the employee is employed; provided, however, that a licensee or registrant may work for more than one company concurrently.

[H.] F. A licensee or registrant shall notify the department in writing within thirty days of each change in the licensee's or registrant's employment by filing an amendment to the licensee's or registrant's application obtained from the department. If a licensee or registrant ceases to be employed by a private investigation company [or a private patrol company], the licensee or registrant shall notify the department in writing within thirty days from the date the licensee or registrant ceases employment with that company.

[I.] G. A private investigation company [or a private patrol company] shall notify the department within thirty days of a change in ownership structure or, if a corporation, a change in the membership of the board of directors.

[J.] H. Employees of a private investigation company [or a private patrol company] who are engaged exclusively to perform stenographic, typing, word processing, secretarial, receptionist, accounting, bookkeeping, information technology or other business applications or support functions and who do not perform the work of a private investigator [a private patrol operator or a security guard] are not required to be licensed or registered pursuant to the Private Investigations Act.

[K.] I. An individual who is not licensed or qualified to be employed as a private investigations manager [or a private patrol operations manager] shall not be employed to perform the duties required of [those managers] that manager."

Section 37. Section 61-27B-24 NMSA 1978 (being Laws 1993, Chapter 212, Section 11, as amended) is amended to read:

"61-27B-24. BOND REQUIRED.--

A. A private investigation company shall file with the department a surety bond in the amount of ten thousand dollars ($10,000) executed by a surety company authorized to do business in this state.

B. The owner or the chief executive officer of a private investigation company that provides personal protection or bodyguard services [or the owner or the chief executive office of a private patrol company] shall maintain a general liability certificate of insurance in an amount required by the department.

C. A surety bond in the amount of ten thousand dollars ($10,000) or a general liability certificate of insurance executed and filed with the department pursuant to the Private Investigations Act shall remain in force until the surety company issuing the bond or the certificate has terminated future indemnity by notice to the department."

Section 38. Section 61-27B-25 NMSA 1978 (being Laws 1993, Chapter 212, Section 12, as amended) is amended to read:

"61-27B-25. PROHIBITED ACTS.--

B. No licensee or registrant shall knowingly make a false report to the licensee's or registrant's employer or the client for whom the information was being obtained.

D. No private investigator, private investigations manager or private investigations employee shall use a badge in connection with the official activities of the licensee's or employee's employment for a private investigation company.

E. No licensee or registrant shall use a title or wear a uniform, use an insignia, use an identification card or make a statement with the intent to give an impression that the licensee or registrant is connected in any way with the federal or state government or a political subdivision of either.

[F. No private patrol operator licensee, private patrol operations manager or level three security guard shall use a badge except when engaged in guard or patrol work and while wearing a uniform.

G.] F. No licensee or registrant shall appear as an assignee party in a proceeding involving a claim and delivery action to recover or possess property or action for foreclosing a chattel mortgage, mechanic's lien, materialman's lien or any other lien.

[H.] G. A polygraph examiner shall not ask questions during the course of a polygraph examination relative to sexual affairs of an examinee, the examinee's race, creed, religion or union affiliation or an activity not previously and specifically agreed to by written consent."

Section 39. Section 61-27B-26 NASA 1978 (being Laws 1993, Chapter 212, Section 13, as amended) is amended to read:

"61-27B-26. DENIAL, SUSPENSION OR REVOCATION OF LICENSE OR REGISTRATION.--In accordance with procedures contained in the Uniform Licensing Act, the department may deny, suspend or revoke a license or registration held or applied for under the Private Investigations Act or reprimand or place on probation a licensee or registrant upon grounds that the licensee, registrant or applicant:

A. made a false statement or gave false information in connection with an application for a license or registration or renewal or reinstatement of a license or registration;

B. violated a provision of the Private Investigations Act;

C. violated a rule of the department adopted pursuant to the Private Investigations Act;

D. has been convicted of a felony or any crime involving dishonesty or illegally using, carrying or possessing a deadly weapon;

E. impersonated or permitted or aided and abetted an employee of a private investigation company [or private patrol company] to impersonate a law enforcement officer or employee of the United States or of a state or political subdivision of either;

F. committed or permitted an employee of a private investigation company [or a private patrol company] to commit an act while the license or registration of the person licensed or registered pursuant to the Private Investigations Act was expired that would be cause for the suspension or revocation of a license or registration or grounds for the denial of an application for a license or registration;

H. committed assault, battery or [kidnaping] kidnapping or used force or violence on a person without justification;

I. knowingly violated or advised, encouraged or assisted the violation of a court order or injunction in the course of business of the licensee or registrant;

J. knowingly issued a worthless or otherwise fraudulent payroll check that is not redeemed within two days of denial of payment by a bank;

K. has been chronically or persistently inebriated or addicted to the illegal use of dangerous or narcotic drugs;

L. has been adjudged mentally incompetent or insane by regularly constituted authorities;

M. while unlicensed, committed or aided and abetted the commission of any act for which a license is required under the Private Investigations Act; or

N. has been found to have violated the requirements of a state or federal labor, tax or employee benefit law or rule."

Section 40. Section 61-27B-28 NMSA 1978 (being Laws 1993, Chapter 212, Section 16, as amended) is amended to read:

"61-27B-28. LICENSE NOT TRANSFERABLE.--

A. A license or registration issued pursuant to the Private Investigations Act shall not be transferred or assigned.

B. The department shall adopt by rule procedures for changes in the name or management of a private investigation company [or private patrol company]. If the private investigation company [or private patrol company] fails to comply with the procedures established by department rule, the private investigation company [or private patrol company] shall be considered to be operating without a license."

Section 41. Section 61-27B-29 NMSA 1978 (being Laws 1993, Chapter 212, Section 17) is amended to read:

"61-27B-29. LOCAL REGULATIONS.--The provisions of the Private [Investigators and Polygraphers] Investigations Act shall not prevent the local authorities of any city, county or city and county by ordinance and within the exercise of the police power of such city, county or city and county from imposing local ordinances upon any street patrol special officer or upon any person licensed within the scope of the Private [Investigators and Polygraphers] Investigations Act if the ordinances are consistent with that act."

Section 42. Section 61-27B-31 NMSA 1978 (being Laws 2007, Chapter 115, Section 31) is amended to read:

"61-27B-31. FIREARMS.--A private investigator [a private patrol operator] or a private investigations employee [a level three security guard or a private patrol operations employee] may carry a firearm upon successful completion of the mandatory firearm training required by rules of the department."

Section 43. TEMPORARY PROVISION--TRANSITION.--

A. On July 1, 2009 and thereafter, a private patrol operator, private patrol company, private patrol operations manager or security guard licensed, registered or authorized to perform an activity pursuant to the Private Investigations Act shall be subject to the Security Guard Act and shall be deemed to be licensed, registered or authorized pursuant to the Security Guard Act until the first license, registration or authorization renewal opportunity occurs pursuant to the Security Guard Act, at which time that entity or individual shall be subject to the renewal provisions of, and rules promulgated pursuant to, that act.

B. On July 1, 2009 and thereafter, all rules promulgated pursuant to the Private Investigations Act that apply to a private patrol operator, private patrol company, private patrol operations manager or security guard shall remain in effect until the regulation and licensing department promulgates rules to implement the Security Guard Act.

C. Money in the private investigations fund that is attributable to private patrol operators, private patrol companies, private patrol operations managers and security guards is transferred on July 1, 2009 to the security guard fund.

D. A disciplinary proceeding initiated against a private patrol operator, private patrol company, private patrol operations manager or security guard pursuant to the Private Investigations Act prior to July 1, 2009 shall continue pursuant to that act until the conclusion of the proceedings, including the exhaustion of a judicial appeal that may be made.

E. All obligations of the private investigations fund and the private investigations advisory board attributable to private patrol operators, private patrol companies, private patrol operations managers or security guards incurred or imposed prior to July 1, 2009 pursuant to the Private Investigations Act are transferred to and shall become obligations of the security guard fund or the security guard advisory board, as appropriate, on July 1, 2009. All obligations of the regulation and licensing department attributable to private patrol operators, private patrol companies, private patrol operations managers or security guards pursuant to the Private Investigations Act shall continue as obligations of the regulation and licensing department pursuant to the Security Guard Act.

Section 44. TERMINATION OF AGENCY LIFE--DELAYED REPEAL.--The security guard advisory board is terminated on July 1, 2013 pursuant to the Sunset Act. The board shall continue to operate according to the provisions of the Security Guard Act until July 1, 2014. Effective July 1, 2014, the Security Guard Act is repealed.

Section 45. REPEAL.--Sections 61-27B-10 through 61-27B-12, 61-27B-15 through 61-27B-19 and 61-27B-35 NMSA 1978 (being Laws 2007, Chapter 115, Sections 10 through 12, 15 through 19 and 36) are repealed.

Section 46. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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