NORTH CAROLINA GENERAL ASSEMBLY
1961 SESSION
CHAPTER 782
SENATE BILL 249
AN ACT TO PROVIDE FOR THE LICENSING OF PRIVATE DETECTIVES IN NORTH CAROLINA.
The General Assembly of North Carolina do enact:
Section 1. Chapter 66 of the General Statutes entitled "Commerce and Business" is hereby amended by adding thereto a new Article following Article 9 to be numbered Article 9A and to read as follows:
"Article 9A.
"Private Detectives.
"§ 66‑49.1. License required. No private person, firm or corporation shall engage in the detective business within this State without having first obtained a license as provided in this Article.
"§ 66‑49.2. Definitions. As used in this Article unless the context otherwise requires, the term:
(1) 'Detective business' means:
a. Engaging in the business of or accepting employment to obtain or furnish information with reference to:
1. Crimes or wrongs done or threatened against the United States of America or any state or territory thereof;
2. The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation or character of any person;
3. The location, disposition or recovery of lost or stolen property;
4. The cause or responsibility for fires, libels, losses, accidents, damage or injury to persons or property; or
5. The securing of evidence to be used before any court, board, officer or investigating committee;
b. Engaging in business as or accepting employment as a private patrol or guard service for consideration on a private contractual basis and not as an employee.
'Detective business' shall not include:
c. Insurance adjusters legally employed as such and who engage in no other investigative activities unconnected with adjustment of claims against an insurance company;
d. Persons employed exclusively and regularly by only one employer in connection with the affairs of such employer only and where there exists an employer-employee relationship;
e. An officer or employee of the United States or of this State or any political subdivision thereof, while such officer or employee is engaged in the performance of his official duties;
f. A person engaged in the business of obtaining and furnishing information as to the financial rating of persons; or g. An attorney at law licensed to practice in North Carolina, or his agent.
(2) 'Director' means the Director of the State Bureau of Investigation.
(3) 'Bureau' means the State Bureau of Investigation.
(4) 'Person' includes individuals, firms, associations, companies, partnerships and corporation.
"§ 66‑49.3. Application for license; investigation; examination; issuance. (a) Any person, firm, or corporation desiring to carry on a detective business in this State shall make application in writing to the Director of the State Bureau of Investigation for a license therefor.
"(b) The application shall include:
(1) The full name and business address of the applicant;
(2) The name under which the applicant intends to do business;
(3) A statement as to the general nature of the business in which the applicant intends to engage;
(4) If an applicant is a person other than an individual, the full name and address of each of its partners, officers and directors and its business manager, if any;
(5) The names of not less than three unrelated and distinterested persons, as references, of whom inquiry can be made as to the character, standing and reputation of the person, firm or corporation making the application, including at least one judge or solicitor of a court of record in this State or at least one municipal chief of police or county sheriff in this State; and
(6) Such other information, evidence, statements or documents as may be required by the Director.
"(c) Upon receipt of an application the Director shall cause an investigation to be made in the course of which the applicant shall be required to show that he meets all the following requirements and qualifications hereby made prerequisites to the obtaining of a license:
(1) That he is at least 21 years of age;
(2) That he is a citizen of the United States;
(3) That he is of good moral character and temperate habits;
(4) That he has had at least two years' experience in private investigative work or as an insurance adjuster or, in lieu thereof, at least one year's experience as a member of the Federal Bureau of Investigation, the State Bureau of Investigation, any municipal police department in this State or any county sheriff's department in this State; or comply with such other qualifications as the Director may by regulation fix.
"(d) Following investigation, the Director may require an applicant to demonstrate his qualifications by a written or oral examination or a combination of both.
"(e) Upon a finding that: the application is in proper form; the investigation has shown the applicant to possess all the necessary qualifications and requirements; and the applicant has successfully completed any examination required, the Director shall issue to the applicant a license upon a showing by the applicant that he has paid the license tax provided for in G.S. 105‑42, unless following a hearing the Director shall have found that the applicant has:
(1) Committed some act which if committed by a licensee would be grounds for the suspension or revocation of a license under this Article;
(2) Committed an act constituting dishonesty or fraud;
(3) A bad moral character, intemperate habits or a bad reputation for truth, honesty and integrity;
(4) Been convicted of a felony or some other crime involving moral turpitude or involving the illegal use, carrying or possession of a dangerous weapon;
(5) Been refused a license under this Article or has had a license revoked;
(6) Been an officer, director, partner or manager of any person who has been refused a license under this Article or whose license has been revoked; or
(7) Knowingly made any false statement in his application.
"§ 66‑49.4. Form of license; renewal of license. The license when issued shall be in such form as may be determined by the Director and shall state:
(1) The name of the licensee;
(2) The name under which the licensee is to operate;
(3) The number and date of the license. The license shall be issued for a term of one year and shall be renewable on June 30 next following the issuance thereof, upon a showing that the licensee has paid the license tax provided for in G.S. 105‑42 unless the license shall have been previously revoked in accordance with the provisions of this Article. Following issuance, the license shall at all times be posted in a conspicuous place in the principal place of business of the licensee. A license issued under this Article is not assignable.
"§ 66‑49.5. Bonds required of licensee. No license shall be issued under this Article unless the applicant files with the Director a surety bond executed by a surety company authorized to do business in this State in a sum of not less than five thousand dollars ($5,000.00) conditioned upon the faithful and honest conduct of his business by such applicant. The bond shall be taken in the name of the people of the State of North Carolina and every person injured by willful, malicious or wrongful act of the principal thereof may bring an action on the bond in his or her name to recover damages suffered by reason of such willful, malicious or wrongful act; provided, however, that the aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the sum of said bond. The surety on such bond shall have a right to cancel such bond upon giving thirty days notice to the Director, provided, however, that such cancellation shall not affect any liability on the bond which accrued prior thereto. The bond shall be approved by the Director as to form, execution and sufficiency of the sureties thereon. Failure to maintain the bond required by this Section shall work an automatic forfeiture of the license provided for by this Article.
"§ 66‑49.6. Revocation of license. (a) The Director may, after hearing, suspend or permanently revoke a license issued under this Article if he determines that the licensee or any officer, director, partner, manager or employee thereof has:
(1) Made any false statement or given any false information in connection with an application for a license or renewal or reinstatement of a license;
(2) Violated any provision of this Article;
(3) Violated any regulation promulgated by the Director pursuant to the authority contained in this Article;
(4) Been convicted of a felony or any crime involving moral turpitude or any other crime involving the illegal use, carrying or possession of a dangerous weapon;
(5) Committed any act in the course of the licensee's business constituting dishonesty or fraud;
(6) Impersonated or permitted or aided and abetted any other person to impersonate a law enforcement officer or employee of the United States or of this State or any political subdivision thereof;
(7) Engaged in or permitted any employee to engage in the detective business when not lawfully in possession of a valid license issued under the provisions of this Article;
(8) Willfully failed or refused to render to a client service or a report as agreed between the parties and for which compensation has already been paid or tendered in accordance with the agreement of the parties;
(9) Committed an unlawful breaking and entering, assault, battery or kidnapping;
(10) Knowingly violated or advised, encouraged or assisted the violation of any court order or injunction in the course of business as a licensee;
(11) Committed any other act which is a ground for denial of an application for license under this Article.
(12) Undertaking to give legal advise or counsel or to in any wise represent that he is representing any attorney or is appearing or will appear in any legal proceedings or to issue, deliver or utter any simulation of process of any nature which might lead a person or persons to believe that such simulation, written, printed or typed, may be a summons, warrant, writ or court process or any pleading in any court proceeding.
"(b) Pending the hearing provided for in Subsection (a) of this Section the Director may suspend a license issued under this Article when he has good reason to believe that grounds for revocation of license exist.
"§ 66‑49.7. Miscellaneous regulations.
"(a) Any licensee or officer, director, partner or manager of a licensee may divulge to any law enforcement officer or solicitor or his representative any information he may require as to any criminal offense but he shall not divulge to any other person, except as he be required by law, any information acquired by him except at the direction of the employer or client for whom the information was obtained.
"(b) No licensee or officer, director, partner, manager or employee of a licensee shall knowingly make any false report to his employer or client for whom information was being obtained.
"(c) No licensee shall conduct a detective business under a fictitious name other than the name under which a license was obtained under the provisions of this Article.
"(d) Every advertisement by a licensee soliciting or advertising for business shall contain his name and address as they appear in the records of the Bureau and in which name the license was issued.
"(e) Every licensee shall file in writing with the Bureau the address of each of his branch offices, if any, within ten days after the establishment, closing or changing of the location of any branch office.
"§ 66‑49.8. Penal provision. Any person who violates any provision of this Article shall be guilty of a misdemeanor and shall upon conviction be fined or imprisoned or both in the discretion of the court."
Sec. 2. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 3. This Act shall become effective upon its ratification.
In the General Assembly read three times and ratified, this the 14th day of June, 1961.