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Maryland (Proposed) Process Serving Law (Senate Bill 554){DEFEATED}

{DEFEATED}

Introduced and read first time: February 1, 2013

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.

[Brackets] indicate matter deleted from existing law.

*sb0554*

SENATE BILL 554

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By: Senator Frosh

Introduced and read first time: February 1, 2013

Assigned to: Judicial Proceedings

A BILL ENTITLED

AN ACT concerning 1

Business Occupations and Professions – Private Process Service – Licensing 2 and Certification 3

FOR the purpose of requiring the licensure as a private process service agency of any 4 person who provides certain private process service; providing for the terms and 5 renewals of the licenses, qualifications for and duties of licensees, display of 6 licenses, and required records of a licensee; establishing certain administrative, 7 financial, and surety bond requirements for a licensed private process service 8 agency; establishing the qualifications for and duties of certified private process 9 servers; providing for the denial, reprimand, suspension, or revocation of 10 private process service agency licenses and private process server certification; 11 establishing certain exceptions to certain license and certification requirements; 12 establishing certain powers of and imposing certain duties on the Secretary of 13 State Police; prohibiting certain acts; imposing certain penalties for certain 14 violations; defining certain terms; and generally relating to the licensing of 15 private process service agencies and the certification of private process servers. 16

BY adding to 17

Article – Business Occupations and Professions 18

Section 13.5–101 through 13.5–701 to be under the new title “Title 13.5. Private 19 Process Servers” 20

Annotated Code of Maryland 21

(2010 Replacement Volume and 2012 Supplement) 22

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF 23 MARYLAND, That the Laws of Maryland read as follows: 24

Article – Business Occupations and Professions 25

TITLE 13.5. PRIVATE PROCESS SERVERS. 26

2 SENATE BILL 554

SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS. 1

13.5–101. 2

(A) IN THIS TITLE THE FOLLOWING WORDS HAVE THE MEANINGS 3 INDICATED. 4

(B) “CENTRAL REPOSITORY” MEANS THE CRIMINAL JUSTICE 5 INFORMATION SYSTEM CENTRAL REPOSITORY OF THE DEPARTMENT OF 6 PUBLIC SAFETY AND CORRECTIONAL SERVICES. 7

(C) “CERTIFICATION CARD” MEANS A CARD ISSUED BY THE SECRETARY 8 UNDER § 13.5–407 OF THIS TITLE TO AN INDIVIDUAL CERTIFIED AS A PRIVATE 9 PROCESS SERVER. 10

(D) “FIRM” MEANS A PARTNERSHIP, LIMITED LIABILITY COMPANY, OR 11 CORPORATION. 12

(E) “FIRM MEMBER” MEANS A PARTNER OF A PARTNERSHIP, A MEMBER 13 OF A LIMITED LIABILITY COMPANY, OR AN OFFICER OR DIRECTOR OF A 14 CORPORATION. 15

(F) “LICENSE” MEANS A LICENSE ISSUED BY THE SECRETARY TO 16 CONDUCT A BUSINESS TO PROVIDE PRIVATE PROCESS SERVICE. 17

(G) “LICENSED PRIVATE PROCESS SERVICE AGENCY” MEANS A PERSON 18 WHO IS LICENSED BY THE SECRETARY TO CONDUCT A BUSINESS THAT 19 PROVIDES PRIVATE PROCESS SERVICE. 20

(H) “PRIVATE PROCESS SERVER” MEANS AN INDIVIDUAL WHO 21 PERSONALLY PROVIDES PRIVATE PROCESS SERVICE. 22

(I) “PRIVATE PROCESS SERVICE AGENCY” MEANS A PERSON WHO 23 CONDUCTS A BUSINESS THAT PROVIDES PRIVATE PROCESS SERVICE. 24

(J) “PROVIDE PRIVATE PROCESS SERVICE” MEANS TO PROVIDE, FOR 25 COMPENSATION, SERVICE OF PROCESS ON A PERSON THAT GIVES LEGAL 26 NOTICE TO THE PERSON OF A COURT’S EXERCISE OF ITS JURISDICTION OVER 27 THAT PERSON. 28

SENATE BILL 554 3

(K) “REPRESENTATIVE MEMBER” MEANS A FIRM MEMBER WHO IS 1 APPOINTED UNDER § 13.5–302(B) OF THIS TITLE TO ACT ON BEHALF OF THE 2 FIRM. 3

(L) “SECRETARY” MEANS THE SECRETARY OF STATE POLICE. 4

13.5–102. 5

THIS TITLE DOES NOT APPLY: 6

(1) TO AN OFFICER OR EMPLOYEE OF ANY UNIT OF THE UNITED 7 STATES, OF ANY STATE, OR OF ANY POLITICAL SUBDIVISION OF ANY STATE, 8 WHILE PERFORMING A DUTY OF THE OFFICE OR EMPLOYMENT; 9

(2) TO A LAWYER, WHILE PERFORMING ANY ACTIVITY THAT 10 RELATES TO THE LAWYER’S REGULAR PRACTICE OF LAW IN THE STATE; OR 11

(3) TO AN INDIVIDUAL WHO, AS A REGULAR PART–TIME OR 12 FULL–TIME EMPLOYEE OF A LAWYER, PROVIDES SERVICES THAT RELATE TO 13 THE LAWYER’S REGULAR PRACTICE OF LAW IN THE STATE. 14

SUBTITLE 2. SECRETARY. 15

13.5–201. 16

SUBJECT TO THE PROVISIONS OF THIS TITLE, THE SECRETARY IS 17 RESPONSIBLE FOR THE LICENSING OF PRIVATE PROCESS SERVICE AGENCIES 18 AND THE REGULATION OF THOSE PERSONS WHO PROVIDE PRIVATE PROCESS 19 SERVICE IN THE STATE. 20

13.5–202. 21

(A) IN ADDITION TO ANY POWERS SET FORTH ELSEWHERE, THE 22 SECRETARY MAY: 23

(1) ADOPT REGULATIONS TO CARRY OUT THIS TITLE; 24

(2) USE ANY MEMBER OF THE DEPARTMENT OF STATE POLICE, 25 AS NECESSARY, TO CARRY OUT AND ENFORCE THIS TITLE; AND 26

(3) MAKE INQUIRIES AND CONDUCT AN INVESTIGATION 27 REGARDING ANY APPLICANT: 28

4 SENATE BILL 554

(I) FOR A LICENSE; OR 1

(II) FOR EMPLOYMENT WITH A LICENSEE AS A PRIVATE 2 PROCESS SERVER. 3

(B) IN ADDITION TO ANY DUTIES SET FORTH ELSEWHERE, THE 4 SECRETARY SHALL: 5

(1) ADOPT REGULATIONS THAT SET STANDARDS FOR THE 6 CERTIFICATION OF EMPLOYEES OF PRIVATE PROCESS SERVICE AGENCIES AS 7 PRIVATE PROCESS SERVERS; 8

(2) KEEP A ROSTER OF THE INDIVIDUALS CERTIFIED AS PRIVATE 9 PROCESS SERVERS UNDER THIS TITLE, INCLUDING ON THE ROSTER: 10

(I) THE NAMES OF INDIVIDUALS CERTIFIED; 11

(II) THE NAME OF THE LICENSED PRIVATE PROCESS 12 SERVICE AGENCY WITH WHICH EACH INDIVIDUAL IS ASSOCIATED OR BY WHICH 13 EACH INDIVIDUAL IS EMPLOYED; AND 14

(III) ANY OTHER INFORMATION THAT THE SECRETARY 15 CONSIDERS APPROPRIATE; AND 16

(3) ADOPT BY REGULATION A SCHEDULE OF FINES FOR 17 VIOLATIONS OF THIS TITLE THAT MAY BE ASSESSED BY THE SECRETARY UNDER 18 §§ 13.5–312 AND 13.5–410 OF THIS TITLE. 19

13.5–203. 20

THE SECRETARY AND ALL MEMBERS OF THE DEPARTMENT OF STATE 21 POLICE: 22

(1) SHALL TREAT AS CONFIDENTIAL ANY INFORMATION 23 OBTAINED THROUGH AN INVESTIGATION OF AN APPLICANT FOR A LICENSE OR 24 FOR CERTIFICATION UNDER THIS TITLE; AND 25

(2) UNLESS REQUIRED BY A COURT ORDER OR SUBPOENA, MAY 26 NOT DIVULGE TO A PERSON WHO IS NOT A MEMBER OF THE DEPARTMENT OF 27 STATE POLICE OR A MEMBER OF ANY OTHER LAW ENFORCEMENT AGENCY THAT 28 IS CONDUCTING AN OFFICIAL INVESTIGATION ANY INFORMATION OBTAINED 29 THROUGH AN INVESTIGATION OF AN APPLICANT FOR A LICENSE OR FOR 30 CERTIFICATION UNDER THIS TITLE. 31

SENATE BILL 554 5

13.5–204. 1

ON THE REQUEST OF THE SECRETARY, THE POLICE COMMISSIONER OF 2 BALTIMORE CITY SHALL ASSIST AND ADVISE THE SECRETARY REGARDING THE 3 INVESTIGATION IN BALTIMORE CITY OF ANY APPLICANT FOR A LICENSE OR FOR 4 CERTIFICATION UNDER THIS TITLE. 5

13.5–205. 6

THE SECRETARY SHALL PAY ALL MONEY COLLECTED UNDER THIS TITLE 7 INTO THE GENERAL FUND OF THE STATE. 8

13.5–206. 9

ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE SECRETARY IN A 10 CONTESTED CASE, AS DEFINED IN § 10–202 OF THE STATE GOVERNMENT 11 ARTICLE, MAY TAKE AN APPEAL AS ALLOWED IN §§ 10–222 AND 10–223 OF THE 12 STATE GOVERNMENT ARTICLE. 13

SUBTITLE 3. PRIVATE PROCESS SERVICE AGENCY LICENSES. 14

13.5–301. 15

(A) EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, A PERSON SHALL 16 BE LICENSED BY THE SECRETARY AS A PRIVATE PROCESS SERVICE AGENCY 17 BEFORE THE PERSON MAY: 18

(1) CONDUCT A BUSINESS THAT PROVIDES PRIVATE PROCESS 19 SERVICE IN THE STATE; AND 20

(2) SOLICIT TO ENGAGE IN A BUSINESS THAT PROVIDES PRIVATE 21 PROCESS SERVICE IN THE STATE. 22

(B) AN INDIVIDUAL OR A FIRM MAY QUALIFY FOR A LICENSE AS A 23 PRIVATE PROCESS SERVICE AGENCY. 24

13.5–302. 25

(A) TO QUALIFY FOR A LICENSE, AN APPLICANT SHALL MEET THE 26 REQUIREMENTS OF THIS SECTION. 27

6 SENATE BILL 554

(B) IF THE APPLICANT IS A FIRM, THE FIRM SHALL APPOINT A FIRM 1 MEMBER AS THE REPRESENTATIVE MEMBER TO MAKE THE APPLICATION ON 2 BEHALF OF THE FIRM. 3

(C) (1) IF THE APPLICANT IS AN INDIVIDUAL, THE APPLICANT SHALL 4 BE OF GOOD CHARACTER AND REPUTATION. 5

(2) IF THE APPLICANT IS A FIRM, EACH FIRM MEMBER SHALL BE 6 OF GOOD CHARACTER AND REPUTATION. 7

(D) THE INDIVIDUAL APPLICANT OR THE REPRESENTATIVE MEMBER 8 SHALL BE AT LEAST 18 YEARS OLD. 9

13.5–303. 10

(A) (1) AN APPLICANT FOR A LICENSE SHALL: 11

(I) SUBMIT TO THE SECRETARY AN APPLICATION ON THE 12 FORM THAT THE SECRETARY PROVIDES; 13

(II) SUBMIT THE DOCUMENTS REQUIRED UNDER THIS 14 SECTION; AND 15

(III) PAY TO THE SECRETARY THE FEES REQUIRED UNDER 16 SUBSECTION (B) OF THIS SECTION. 17

(2) IF THE APPLICANT IS A FIRM, THE REPRESENTATIVE MEMBER 18 SHALL COMPLETE THE APPLICATION FORM AND OTHERWISE BE RESPONSIBLE 19 FOR THE FIRM’S COMPLIANCE WITH THIS SECTION. 20

(B) (1) AN APPLICANT FOR A LICENSE SHALL PAY TO THE 21 SECRETARY AN APPLICATION FEE OF: 22

(I) 1. $200, IF THE APPLICANT IS AN INDIVIDUAL; OR 23

2. $375, IF THE APPLICANT IS A FIRM; AND 24

(II) THE FEES AUTHORIZED UNDER SUBSECTION (C)(2) OF 25 THIS SECTION. 26

(2) (I) AS PART OF THE APPLICATION FOR A LICENSE, THE 27 APPLICANT SHALL SUBMIT TO THE SECRETARY THE FINGERPRINTS REQUIRED 28 UNDER SUBSECTION (C)(2)(I) OF THIS SECTION. 29

SENATE BILL 554 7

(II) IF THE APPLICANT IS A FIRM, THE APPLICANT SHALL 1 PAY THE COST OF THE FINGERPRINT CARD RECORD CHECKS FOR EACH FIRM 2 MEMBER. 3

(C) (1) THE DEPARTMENT OF STATE POLICE SHALL APPLY TO THE 4 CENTRAL REPOSITORY FOR A STATE AND NATIONAL CRIMINAL HISTORY 5 RECORDS CHECK FOR EACH APPLICANT. 6

(2) AS PART OF THE APPLICATION FOR A CRIMINAL HISTORY 7 RECORDS CHECK, THE DEPARTMENT OF STATE POLICE SHALL SUBMIT TO THE 8 CENTRAL REPOSITORY: 9

(I) TWO COMPLETE SETS OF THE APPLICANT’S LEGIBLE 10 FINGERPRINTS TAKEN ON FORMS APPROVED BY THE DIRECTOR OF THE 11 CENTRAL REPOSITORY AND THE DIRECTOR OF THE FEDERAL BUREAU OF 12 INVESTIGATION; 13

(II) THE FEE AUTHORIZED UNDER § 10–221(B)(7) OF THE 14 CRIMINAL PROCEDURE ARTICLE FOR ACCESS TO MARYLAND CRIMINAL 15 HISTORY RECORDS; AND 16

(III) THE MANDATORY PROCESSING FEE REQUIRED BY THE 17 FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY 18 RECORDS CHECK. 19

(3) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–234 OF THE 20 CRIMINAL PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORWARD 21 TO THE APPLICANT AND THE DEPARTMENT OF STATE POLICE A PRINTED 22 STATEMENT OF THE APPLICANT’S CRIMINAL HISTORY RECORD INFORMATION. 23

(4) THE SUBJECT OF A CRIMINAL HISTORY RECORDS CHECK 24 UNDER THIS SECTION MAY CONTEST THE CONTENTS OF THE PRINTED 25 STATEMENT ISSUED BY THE CENTRAL REPOSITORY AS PROVIDED IN § 10–223 26 OF THE CRIMINAL PROCEDURE ARTICLE. 27

(D) (1) IF THE APPLICANT IS AN INDIVIDUAL, THE APPLICATION 28 FORM PROVIDED BY THE SECRETARY SHALL REQUIRE: 29

(I) THE NAME OF THE APPLICANT; 30

(II) THE AGE OF THE APPLICANT; 31

8 SENATE BILL 554

(III) THE ADDRESS OF THE APPLICANT; AND 1

(IV) THE CURRENT AND PREVIOUS EMPLOYMENT OF THE 2 APPLICANT. 3

(2) IF THE APPLICANT IS A FIRM, THE APPLICATION FORM 4 PROVIDED BY THE SECRETARY SHALL REQUIRE: 5

(I) A LIST OF ALL OF THE FIRM MEMBERS; AND 6

(II) FOR EACH FIRM MEMBER, THE SAME INFORMATION 7 REQUIRED REGARDING AN INDIVIDUAL APPLICANT UNDER PARAGRAPH (1) OF 8 THIS SUBSECTION. 9

(3) FOR ALL APPLICANTS, THE APPLICATION FORM SHALL 10 REQUIRE: 11

(I) THE ADDRESS OF THE APPLICANT’S PROPOSED 12 PRINCIPAL PLACE OF BUSINESS AND OF EACH PROPOSED BRANCH OFFICE; 13

(II) ANY TRADE OR FICTITIOUS NAME THAT THE APPLICANT 14 INTENDS TO USE WHILE CONDUCTING THE BUSINESS OF THE PRIVATE PROCESS 15 SERVICE AGENCY; 16

(III) THE SUBMISSION OF A FACSIMILE OF ANY TRADEMARK 17 THAT THE APPLICANT INTENDS TO USE WHILE CONDUCTING THE BUSINESS OF 18 THE PRIVATE PROCESS SERVICE AGENCY; AND 19

(IV) AS THE SECRETARY CONSIDERS APPROPRIATE, ANY 20 OTHER INFORMATION TO ASSIST IN THE EVALUATION OF: 21

1. AN INDIVIDUAL APPLICANT; OR 22

2. IF THE APPLICANT IS A FIRM, ANY FIRM MEMBER. 23

(E) THE APPLICATION FORM PROVIDED BY THE SECRETARY SHALL 24 CONTAIN A STATEMENT ADVISING THE APPLICANT THAT WILLFULLY MAKING A 25 FALSE STATEMENT ON AN APPLICATION IS A MISDEMEANOR, SUBJECT TO A FINE 26 OR IMPRISONMENT OR BOTH, AS PROVIDED UNDER §§ 13.5–605 AND 13.5–607 27 OF THIS TITLE. 28

(F) (1) IF THE APPLICANT IS AN INDIVIDUAL, THE APPLICATION 29 FORM SHALL BE SIGNED, UNDER OATH, BY THE INDIVIDUAL. 30

SENATE BILL 554 9

(2) IF THE APPLICANT IS A FIRM, THE APPLICATION FORM SHALL 1 BE SIGNED, UNDER OATH, BY THE REPRESENTATIVE MEMBER, AS THE 2 REPRESENTATIVE MEMBER, AND BY ALL THE OTHER FIRM MEMBERS. 3

(G) (1) IF THE APPLICANT IS AN INDIVIDUAL, THE APPLICATION 4 SHALL BE ACCOMPANIED BY AT LEAST THREE NAMES OF INDIVIDUALS WHO CAN 5 ATTEST TO THE CHARACTER OF THE APPLICANT. 6

(2) IF THE APPLICANT IS A FIRM, THE APPLICATION SHALL BE 7 ACCOMPANIED BY AT LEAST THREE NAMES OF INDIVIDUALS WHO CAN ATTEST 8 TO THE CHARACTER OF EACH FIRM MEMBER. 9

(H) IN ADDITION TO MEETING THE OTHER REQUIREMENTS OF THIS 10 SECTION, A NONRESIDENT APPLICANT SHALL SUBMIT A CONSENT AND ANY 11 RELATED DOCUMENT, AS REQUIRED BY § 13.5–504 OF THIS TITLE. 12

13.5–304. 13

THE SECRETARY MAY NOT ISSUE A LICENSE TO AN APPLICANT WHOSE 14 TRADE OR FICTITIOUS NAME OR TRADEMARK IS SO SIMILAR TO THAT USED BY 15 ANOTHER LICENSEE THAT THE PUBLIC MAY BE CONFUSED OR MISLED BY THE 16 SIMILARITY. 17

13.5–305. 18

(A) (1) THE SECRETARY SHALL ISSUE A LICENSE TO EACH 19 APPLICANT WHO MEETS THE REQUIREMENTS OF THIS SUBTITLE. 20

(2) THE SECRETARY SHALL ISSUE AN AGENCY LICENSE 21 CERTIFICATE TO EACH LICENSED PRIVATE PROCESS SERVICE AGENCY AND A 22 BRANCH OFFICE CERTIFICATE FOR EACH PROPOSED BRANCH OFFICE. 23

(B) (1) THE SECRETARY SHALL INCLUDE ON EACH AGENCY LICENSE 24 CERTIFICATE THAT THE SECRETARY ISSUES: 25

(I) THE FULL NAME OF THE LICENSEE; 26

(II) THE LOCATION OF THE PRINCIPAL OFFICE AND OF EACH 27 BRANCH OFFICE OF THE LICENSED PRIVATE PROCESS SERVICE AGENCY; 28

(III) THE DATE OF ISSUANCE OF THE LICENSE; 29

10 SENATE BILL 554

(IV) THE DATE ON WHICH THE LICENSE EXPIRES; AND 1

(V) IF THE LICENSEE IS A FIRM, THE NAME AND ADDRESS 2 OF THE REPRESENTATIVE MEMBER. 3

(2) THE SECRETARY SHALL INCLUDE ON EACH BRANCH OFFICE 4 CERTIFICATE: 5

(I) THE FULL NAME OF THE LICENSEE; 6

(II) THE LOCATION OF THE PRINCIPAL OFFICE OF THE 7 LICENSEE AND OF THE AGENCY BRANCH OFFICE FOR WHICH THE CERTIFICATE 8 IS ISSUED; 9

(III) THE DATE OF ISSUANCE OF THE BRANCH OFFICE 10 CERTIFICATE; 11

(IV) THE DATE ON WHICH THE LICENSE OF THE LICENSEE 12 EXPIRES; AND 13

(V) IF THE LICENSEE IS APPLYING ON BEHALF OF A FIRM, 14 THE NAME AND AGENCY ADDRESS OF THE REPRESENTATIVE MEMBER. 15

13.5–306. 16

WHILE A LICENSE IS IN EFFECT, THE LICENSE AUTHORIZES THE 17 LICENSEE TO: 18

(1) CONDUCT A BUSINESS THAT PROVIDES PRIVATE PROCESS 19 SERVICE FOR COMPENSATION; 20

(2) MAINTAIN AN OFFICE FOR THE CONDUCT OF THE BUSINESS AT 21 EACH LOCATION STATED IN THE AGENCY LICENSE CERTIFICATE; 22

(3) EMPLOY INDIVIDUALS AS PRIVATE PROCESS SERVERS TO 23 PROVIDE PRIVATE PROCESS SERVICE TO THE PUBLIC ON BEHALF OF THE 24 LICENSEE; AND 25

(4) REPRESENT THE LICENSEE TO THE PUBLIC AS A PRIVATE 26 PROCESS SERVICE AGENCY. 27

13.5–307. 28

SENATE BILL 554 11

(A) BY REGULATION, THE SECRETARY SHALL STAGGER THE TERMS OF 1 THE LICENSES. 2

(B) UNLESS A LICENSE IS RENEWED FOR A 2–YEAR TERM AS PROVIDED 3 IN THIS SECTION, THE LICENSE EXPIRES ON THE DAY THAT THE SECRETARY 4 SETS. 5

(C) AT LEAST 1 MONTH BEFORE A LICENSE EXPIRES, THE SECRETARY 6 SHALL MAIL TO THE LICENSEE, AT THE LAST KNOWN ADDRESS OF THE 7 LICENSEE: 8

(1) A RENEWAL APPLICATION FORM; AND 9

(2) A NOTICE THAT STATES: 10

(I) THE DATE ON WHICH THE CURRENT LICENSE EXPIRES; 11

(II) THAT THE SECRETARY MUST RECEIVE THE RENEWAL 12 APPLICATION AND THE STATEMENTS REQUIRED UNDER § 13.5–308 OF THIS 13 SUBTITLE AT LEAST 15 DAYS BEFORE THE LICENSE EXPIRATION DATE FOR THE 14 RENEWAL TO BE ISSUED AND MAILED BEFORE THE LICENSE EXPIRES; 15

(III) THE AMOUNT OF THE RENEWAL FEE; 16

(IV) THAT, IF THE STATEMENTS REQUIRED UNDER § 17 13.5–308 OF THIS SUBTITLE ARE NOT RECEIVED AT LEAST 15 DAYS BEFORE THE 18 LICENSE EXPIRATION DATE, A FEE OF $10 PER DAY SHALL BE CHARGED 19 AGAINST THE LICENSEE UNTIL THE STATEMENTS ARE RECEIVED; AND 20

(V) THAT THE SUBMISSION OF A FALSE STATEMENT IN THE 21 RENEWAL APPLICATION OR IN THE ANNUAL STATEMENTS IS CAUSE FOR 22 REVOCATION OF THE LICENSE. 23

(D) A LICENSEE PERIODICALLY MAY RENEW THE LICENSE FOR AN 24 ADDITIONAL 2–YEAR TERM IF THE LICENSEE: 25

(1) OTHERWISE IS ENTITLED TO BE LICENSED; 26

(2) PAYS TO THE SECRETARY: 27

(I) A RENEWAL FEE OF: 28

1. $200, IF THE LICENSEE IS AN INDIVIDUAL; OR 29

12 SENATE BILL 554

2. $400, IF THE LICENSEE IS A FIRM; AND 1

(II) ANY LATE FEE REQUIRED UNDER § 13.5–308 OF THIS 2 SUBTITLE; AND 3

(3) SUBMITS TO THE SECRETARY: 4

(I) A RENEWAL APPLICATION ON THE FORM THAT THE 5 SECRETARY PROVIDES; AND 6

(II) THE STATEMENTS REQUIRED UNDER § 13.5–308 OF THIS 7 SUBTITLE. 8

(E) THE SECRETARY SHALL RENEW THE LICENSE OF EACH LICENSEE 9 WHO MEETS THE REQUIREMENTS OF THIS SECTION. 10

13.5–308. 11

(A) AS A CONDITION FOR LICENSE RENEWAL, A LICENSEE SHALL 12 SUBMIT TO THE SECRETARY WITH THE RENEWAL APPLICATION: 13

(1) A CERTIFICATION OR, AS AUTHORIZED BY THE SECRETARY, 14 OTHER DOCUMENTATION THAT THE LICENSED PRIVATE PROCESS SERVICE 15 AGENCY HAS PAID, FOR THE PAST 3 YEARS, ALL WITHHOLDING AND SOCIAL 16 SECURITY TAXES; 17

(2) A CERTIFICATION OR, AS AUTHORIZED BY THE SECRETARY, 18 OTHER DOCUMENTATION THAT THE LICENSED PRIVATE PROCESS SERVICE 19 AGENCY HAS PAID, FOR THE PAST 3 YEARS, ALL OTHER OBLIGATIONS PAYABLE 20 FOR THE EMPLOYEES OF THE LICENSED PRIVATE PROCESS SERVICE AGENCY TO 21 THE STATE OR THE FEDERAL GOVERNMENT; 22

(3) A CERTIFICATE FROM AN INSURANCE CARRIER OR, AS 23 AUTHORIZED BY THE SECRETARY, OTHER DOCUMENTATION SHOWING THAT 24 THE LICENSED PRIVATE PROCESS SERVICE AGENCY HAS IN EFFECT WORKERS’ 25 COMPENSATION INSURANCE FOR ITS COVERED EMPLOYEES, AS DEFINED IN § 26 9–101 OF THE LABOR AND EMPLOYMENT ARTICLE; AND 27

(4) A RECEIPT FROM THE COMPTROLLER’S OFFICE OR, AS 28 AUTHORIZED BY THE SECRETARY, OTHER DOCUMENTATION SHOWING THAT 29 THE STATE INCOME TAX OF THE LICENSED PRIVATE PROCESS SERVICE AGENCY 30 HAS BEEN PAID FOR THE PAST 3 YEARS. 31

SENATE BILL 554 13

(B) IF THE SECRETARY DOES NOT RECEIVE THE DOCUMENTS 1 REQUIRED UNDER SUBSECTION (A) OF THIS SECTION AT LEAST 15 DAYS BEFORE 2 THE LICENSE EXPIRATION DATE, THE SECRETARY SHALL CHARGE THE 3 LICENSEE A LATE FEE OF $10 PER DAY UNTIL THE DOCUMENTS ARE RECEIVED. 4

(C) THE SECRETARY MAY INSPECT ANY OF THE BUSINESS RECORDS OF 5 A LICENSEE THAT RELATE TO ANY MATTER THAT IS SUBJECT TO CERTIFICATION 6 OR DOCUMENTATION UNDER THIS SECTION. 7

13.5–309. 8

(A) EACH LICENSEE SHALL MAINTAIN AN OFFICE IN THE STATE. 9

(B) EACH LICENSEE SHALL KEEP IN AN OFFICE IN THE STATE ALL 10 FILES OR OTHER RECORDS THAT: 11

(1) ARE MADE IN THE STATE; AND 12

(2) RELATE TO PROCESS SERVED IN THE STATE. 13

13.5–310. 14

(A) (1) WITHIN 5 DAYS AFTER THE CHANGE, A LICENSEE SHALL 15 SUBMIT TO THE SECRETARY WRITTEN NOTICE OF: 16

(I) THE ADDITION OF A BRANCH OFFICE; AND 17

(II) ANY CHANGE IN THE ADDRESS OF AN EXISTING OFFICE. 18

(2) THE LICENSEE SHALL SUBMIT WITH THE NOTICE: 19

(I) THE AGENCY LICENSE CERTIFICATE; AND 20

(II) IF THE PROPOSED CHANGE AFFECTS AN EXISTING 21 BRANCH OFFICE, THE BRANCH OFFICE CERTIFICATE FOR THAT OFFICE. 22

(3) THE SECRETARY MAY: 23

(I) ENDORSE THE CHANGE ON THE AGENCY LICENSE 24 CERTIFICATE AND, IF APPLICABLE, ON THE BRANCH OFFICE CERTIFICATE OF 25 THE AFFECTED BRANCH OFFICE; OR 26

14 SENATE BILL 554

(II) ISSUE A NEW AGENCY LICENSE CERTIFICATE AND, IF 1 APPLICABLE, A NEW BRANCH OFFICE CERTIFICATE, BOTH OF WHICH SHALL SET 2 FORTH THE SAME DATE AS THE ORIGINAL AGENCY LICENSE CERTIFICATE. 3

(B) WITHIN 5 DAYS AFTER THE OCCURRENCE, A FIRM SHALL SUBMIT TO 4 THE SECRETARY WRITTEN NOTICE OF: 5

(1) THE WITHDRAWAL OF ANY FIRM MEMBER; AND 6

(2) THE DEATH OF ANY FIRM MEMBER. 7

13.5–311. 8

(A) EACH LICENSEE SHALL DISPLAY AT ALL TIMES: 9

(1) THE AGENCY LICENSE CERTIFICATE IN A CONSPICUOUS 10 PLACE IN THE PRINCIPAL OFFICE OF THE PRIVATE PROCESS SERVICE AGENCY; 11 AND 12

(2) EACH BRANCH OFFICE CERTIFICATE IN A CONSPICUOUS 13 PLACE IN THE AGENCY BRANCH OFFICE FOR WHICH THE CERTIFICATE WAS 14 ISSUED. 15

(B) (1) IF AN AGENCY LICENSE CERTIFICATE OR BRANCH OFFICE 16 CERTIFICATE IS LOST OR DESTROYED, THE LICENSEE IMMEDIATELY SHALL 17 NOTIFY THE SECRETARY. 18

(2) ON RECEIPT OF NOTICE OF THE LOSS OR DESTRUCTION OF AN 19 AGENCY LICENSE CERTIFICATE OR BRANCH OFFICE CERTIFICATE, THE 20 SECRETARY MAY ISSUE A DUPLICATE. 21

13.5–312. 22

(A) SUBJECT TO THE HEARING PROVISIONS OF § 13.5–314 OF THIS 23 SUBTITLE, THE SECRETARY MAY DENY A LICENSE TO ANY APPLICANT, 24 REPRIMAND ANY LICENSEE, FINE ANY LICENSEE OR AGENCY, OR SUSPEND OR 25 REVOKE A LICENSE IF THE APPLICANT OR LICENSEE: 26

(1) FRAUDULENTLY OR DECEPTIVELY OBTAINS OR ATTEMPTS TO 27 OBTAIN A LICENSE FOR THE APPLICANT OR LICENSEE OR FOR ANOTHER; 28

(2) FRAUDULENTLY OR DECEPTIVELY USES A LICENSE; 29

SENATE BILL 554 15

(3) AIDS AN INDIVIDUAL TO OBTAIN OR TO ATTEMPT TO OBTAIN 1 FRAUDULENTLY OR DECEPTIVELY CERTIFICATION UNDER THIS TITLE AS A 2 PRIVATE PROCESS SERVER; 3

(4) WHILE NOT LICENSED, SOLICITS TO ENGAGE IN OR 4 WILLFULLY ENGAGES IN A BUSINESS PROVIDING PRIVATE PROCESS SERVICE IN 5 THE STATE; 6

(5) WHILE NOT LICENSED, WILLFULLY ADVERTISES: 7

(I) AS A PRIVATE PROCESS SERVICE AGENCY; OR 8

(II) THE PROVISION OF PRIVATE PROCESS SERVICE; 9

(6) WILLFULLY MAKES A FALSE STATEMENT OR 10 MISREPRESENTATION THAT AN INDIVIDUAL IS OR WAS IN THE EMPLOY OF THE 11 APPLICANT OR LICENSEE; 12

(7) WILLFULLY MAKES A FALSE STATEMENT OR 13 MISREPRESENTATION IN ANY RENEWAL APPLICATION, IN ANY ANNUAL 14 STATEMENT, OR IN ANY OTHER REPORT OR DOCUMENT THAT THE SECRETARY 15 REQUIRES TO BE SUBMITTED; 16

(8) WILLFULLY MAKES A FALSE STATEMENT IN AN AFFIDAVIT OF 17 SERVICE OR ANY OTHER DOCUMENT FILED WITH A COURT; 18

(9) FAILS TO NOTIFY THE SECRETARY ABOUT ANY CHANGE 19 AMONG THE FIRM MEMBERS OR IN THE ADDRESS OF THE PRINCIPAL OFFICE OR 20 ANY BRANCH OFFICE OF A LICENSEE; OR 21

(10) VIOLATES ANY OTHER PROVISION OF THIS TITLE. 22

(B) FOR PURPOSES OF THIS SECTION, AN ACT OR OMISSION OF ANY 23 PRINCIPAL, AGENT, OR EMPLOYEE OF AN APPLICANT OR LICENSEE MAY BE 24 CONSTRUED TO BE THE ACT OR OMISSION OF THE APPLICANT OR LICENSEE, AS 25 WELL AS OF THE PRINCIPAL, AGENT, OR EMPLOYEE. 26

13.5–313. 27

(A) SUBJECT TO THIS SECTION, THE SECRETARY SHALL COMMENCE 28 PROCEEDINGS UNDER § 13–312 OF THIS SUBTITLE ON THE SECRETARY’S OWN 29 COMPLAINT OR ON A COMPLAINT MADE TO THE SECRETARY BY ANY PERSON. 30

16 SENATE BILL 554

(B) (1) A COMPLAINT SHALL: 1

(I) BE IN WRITING; 2

(II) BE SIGNED BY THE COMPLAINANT; AND 3

(III) STATE SPECIFICALLY THE FACTS ON WHICH THE 4 COMPLAINT IS BASED. 5

(2) IF A COMPLAINT IS MADE BY ANY PERSON OTHER THAN THE 6 SECRETARY, THE COMPLAINT SHALL BE MADE UNDER OATH BY THE PERSON 7 WHO SUBMITS THE COMPLAINT. 8

(C) (1) ON RECEIPT OF A COMPLAINT THAT ALLEGES FACTS THAT 9 ARE GROUNDS FOR ACTION UNDER § 13.5–312 OF THIS SUBTITLE, THE 10 SECRETARY SHALL APPOINT AN OFFICER OF THE DEPARTMENT OF STATE 11 POLICE, WITH THE RANK OF LIEUTENANT OR ABOVE, AS THE INVESTIGATING 12 OFFICER FOR THE COMPLAINT. 13

(2) THE INVESTIGATING OFFICER MAY ASSIGN RESPONSIBILITY 14 FOR CONDUCTING THE INVESTIGATION TO OTHER MEMBERS OF THE 15 DEPARTMENT OF STATE POLICE. 16

(D) (1) ON CONCLUSION OF THE INVESTIGATION, THE 17 INVESTIGATING OFFICER SHALL DETERMINE WHETHER THERE IS A 18 REASONABLE BASIS TO BELIEVE THAT THERE ARE GROUNDS FOR DISCIPLINARY 19 ACTION UNDER § 13.5–312 OF THIS SUBTITLE. 20

(2) IF THE INVESTIGATING OFFICER FINDS A REASONABLE BASIS 21 AS PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE SECRETARY 22 SHALL ACT ON THE COMPLAINT AS PROVIDED UNDER § 13.5–314 OF THIS 23 SUBTITLE. 24

13.5–314. 25

(A) EXCEPT AS OTHERWISE PROVIDED IN § 10–226 OF THE STATE 26 GOVERNMENT ARTICLE, BEFORE THE SECRETARY TAKES ANY FINAL ACTION 27 UNDER § 13.5–312 OF THIS SUBTITLE, THE SECRETARY SHALL GIVE THE 28 PERSON AGAINST WHOM THE ACTION IS CONTEMPLATED AN OPPORTUNITY FOR 29 A HEARING BEFORE THE SECRETARY. 30

SENATE BILL 554 17

(B) THE SECRETARY SHALL GIVE NOTICE AND HOLD THE HEARING IN 1 ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT 2 ARTICLE. 3

(C) THE SECRETARY MAY ADMINISTER OATHS IN CONNECTION WITH 4 ANY PROCEEDING UNDER THIS SECTION. 5

(D) THE HEARING NOTICE TO BE GIVEN TO THE PERSON SHALL BE 6 WRITTEN AND SENT AT LEAST 10 DAYS BEFORE THE HEARING. 7

(E) THE PERSON MAY BE REPRESENTED AT THE HEARING BY COUNSEL. 8

(F) IF, AFTER DUE NOTICE, THE PERSON AGAINST WHOM THE ACTION IS 9 CONTEMPLATED FAILS OR REFUSES TO APPEAR, NEVERTHELESS THE 10 SECRETARY MAY HEAR AND DETERMINE THE MATTER. 11

13.5–315. 12

(A) WITHIN 5 DAYS AFTER THE SECRETARY SUSPENDS OR REVOKES 13 THE LICENSE OF A PERSON, THE PERSON SHALL SURRENDER TO THE 14 SECRETARY THE AGENCY LICENSE CERTIFICATE AND EACH BRANCH OFFICE 15 CERTIFICATE OF THE PERSON. 16

(B) THE SECRETARY MAY NOT REFUND TO A PERSON WHOSE LICENSE 17 IS SUSPENDED OR REVOKED ANY FEE PAID UNDER THIS TITLE. 18

SUBTITLE 4. CERTIFICATION OF PRIVATE PROCESS SERVERS. 19

13.5–401. 20

(A) EXCEPT AS PROVIDED UNDER SUBSECTION (B) OF THIS SECTION, AN 21 INDIVIDUAL SHALL BE CERTIFIED BY THE SECRETARY AS A PRIVATE PROCESS 22 SERVER BEFORE THE INDIVIDUAL PERSONALLY MAY PROVIDE ANY PRIVATE 23 PROCESS SERVICE IN THE STATE. 24

(B) AN INDIVIDUAL WHO IS NOT CERTIFIED AS A PRIVATE PROCESS 25 SERVER MAY PROVIDE PRIVATE PROCESS SERVICE IN THE STATE IF: 26

(1) THE INDIVIDUAL IS EMPLOYED BY OR HAS APPLIED FOR 27 EMPLOYMENT WITH A LICENSED PRIVATE PROCESS SERVICE AGENCY; 28

(2) THE LICENSED PRIVATE PROCESS SERVICE AGENCY HAS 29 SUBMITTED TO THE SECRETARY THE APPLICATION OF THE INDIVIDUAL FOR 30

18 SENATE BILL 554

CERTIFICATION AS A PRIVATE PROCESS SERVER, FINGERPRINT CARDS, AND 1 FEES REQUIRED UNDER § 13–403 OF THIS SUBTITLE; 2

(3) AFTER A PRELIMINARY BACKGROUND INVESTIGATION, THE 3 SECRETARY DETERMINES THAT THE PROVISION OF PRIVATE PROCESS SERVICE 4 BY THE INDIVIDUAL WOULD NOT RESULT IN A POTENTIAL THREAT TO PUBLIC 5 SAFETY; AND 6

(4) THE SECRETARY HAS NOT DENIED THE APPLICATION. 7

13.5–402. 8

AN INDIVIDUAL QUALIFIES FOR CERTIFICATION AS A PRIVATE PROCESS 9 SERVER IF THE INDIVIDUAL: 10

(1) HOLDS A LICENSE; 11

(2) IS A FIRM MEMBER OF A LICENSED PRIVATE PROCESS 12 SERVICE AGENCY; OR 13

(3) (I) IS AN EMPLOYEE OF OR AN APPLICANT FOR 14 EMPLOYMENT WITH A LICENSED PRIVATE PROCESS SERVICE AGENCY; AND 15

(II) MEETS THE QUALIFICATIONS SET FORTH UNDER § 16 13.5–403 OF THIS SUBTITLE. 17

13.5–403. 18

TO QUALIFY FOR CERTIFICATION AS A PRIVATE PROCESS SERVER, AN 19 EMPLOYEE OF OR APPLICANT FOR EMPLOYMENT WITH A LICENSED PRIVATE 20 PROCESS SERVICE AGENCY SHALL: 21

(1) MEET THE STANDARDS SET BY THE SECRETARY; 22

(2) SUBMIT TO THE SECRETARY: 23

(I) A SWORN APPLICATION ON THE FORM THE SECRETARY 24 PROVIDES; AND 25

(II) THE FINGERPRINTS REQUIRED UNDER § 26 13.5–304(C)(2)(I) OF THIS TITLE; AND 27

(3) PAY TO THE SECRETARY: 28

SENATE BILL 554 19

(I) AN APPLICATION FEE OF $15; AND 1

(II) THE FEES REQUIRED UNDER § 13.5–304(C)(2) OF THIS 2 TITLE. 3

13.5–404. 4

THE SECRETARY SHALL CERTIFY AS A PRIVATE PROCESS SERVER EACH 5 INDIVIDUAL WHO MEETS THE REQUIREMENTS OF THIS SUBTITLE. 6

13.5–405. 7

(A) BY REGULATION, THE SECRETARY SHALL STAGGER THE TERMS OF 8 THE CERTIFICATIONS UNDER THIS SUBTITLE. 9

(B) UNLESS A CERTIFICATION IS RENEWED FOR A 3–YEAR TERM AS 10 PROVIDED IN THIS SECTION, THE CERTIFICATION EXPIRES ON THE DATE THE 11 SECRETARY SETS. 12

(C) AT LEAST 90 DAYS BEFORE A CERTIFICATION EXPIRES, THE 13 APPLICANT SHALL DELIVER TO THE SECRETARY: 14

(1) A RENEWAL APPLICATION FORM; 15

(2) THE AMOUNT OF THE RENEWAL FEE; AND 16

(3) THE AMOUNT OF ANY LATE FEE, AS DETERMINED BY THE 17 SECRETARY. 18

(D) AN INDIVIDUAL PERIODICALLY MAY RENEW THE CERTIFICATION 19 FOR AN ADDITIONAL 3–YEAR TERM IF THE INDIVIDUAL: 20

(1) IS OTHERWISE ENTITLED TO BE CERTIFIED; 21

(2) PAYS TO THE SECRETARY: 22

(I) A RENEWAL FEE OF $10; 23

(II) THE FEE AUTHORIZED UNDER § 10–221(B)(7) OF THE 24 CRIMINAL PROCEDURE ARTICLE FOR ACCESS TO MARYLAND CRIMINAL 25 HISTORY RECORDS; 26

20 SENATE BILL 554

(III) THE MANDATORY PROCESSING FEE REQUIRED BY THE 1 FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY 2 RECORDS CHECK; AND 3

(IV) ANY LATE FEE REQUIRED UNDER THIS SUBTITLE; AND 4

(3) SUBMITS TO THE SECRETARY: 5

(I) A RENEWAL APPLICATION ON THE FORM THE 6 SECRETARY PROVIDES; AND 7

(II) TWO COMPLETE SETS OF THE APPLICANT’S LEGIBLE 8 FINGERPRINTS TAKEN ON FORMS APPROVED BY THE DIRECTOR OF THE 9 CENTRAL REPOSITORY AND THE DIRECTOR OF THE FEDERAL BUREAU OF 10 INVESTIGATION. 11

(E) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–234 OF THE 12 CRIMINAL PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORWARD 13 TO THE APPLICANT AND THE DEPARTMENT OF STATE POLICE A PRINTED 14 STATEMENT OF THE APPLICANT’S CRIMINAL HISTORY RECORDS INFORMATION. 15

(F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, IF A 16 COMPLETE APPLICATION FOR RENEWAL OF CERTIFICATION AS REQUIRED 17 UNDER THIS SUBTITLE IS NOT RECEIVED BY THE SECRETARY AT LEAST 30 18 CALENDAR DAYS BEFORE THE CERTIFICATION EXPIRES, THE SECRETARY SHALL 19 ASSESS A LATE FEE OF $5 PER DAY UNTIL THE APPLICATION IS RECEIVED BY 20 THE SECRETARY, UNLESS THE APPLICANT DID NOT MAKE TIMELY RENEWAL 21 BECAUSE OF INCAPACITY, HOSPITALIZATION, BEING CALLED TO ACTIVE 22 MILITARY DUTY, OR OTHER HARDSHIP. 23

(2) THE TOTAL AMOUNT OF LATE FEES ASSESSED UNDER THIS 24 SUBSECTION MAY NOT EXCEED $150. 25

(3) THE SECRETARY MAY NOT CERTIFY ANY APPLICANT UNDER 26 THIS TITLE IF THE APPLICANT HAS OUTSTANDING LATE FEE OBLIGATIONS. 27

(G) (1) THE SECRETARY SHALL RENEW THE CERTIFICATION OF EACH 28 INDIVIDUAL WHO MEETS THE REQUIREMENTS OF THIS SECTION. 29

(2) WITHIN 5 DAYS AFTER THE SECRETARY REFUSES TO RENEW 30 THE CERTIFICATION OF AN INDIVIDUAL AS A PRIVATE PROCESS SERVER, THE 31 SECRETARY SHALL SEND WRITTEN NOTICE OF THE REFUSAL TO THE 32 INDIVIDUAL WHO SUBMITTED THE RENEWAL APPLICATION. 33

SENATE BILL 554 21

13.5–406. 1

WHILE CERTIFICATION OF AN INDIVIDUAL AS A PRIVATE PROCESS 2 SERVER IS IN EFFECT, THE CERTIFICATION AUTHORIZES THE INDIVIDUAL TO 3 PROVIDE PRIVATE PROCESS SERVICE ONLY: 4

(1) ON BEHALF OF THE PRIVATE PROCESS SERVICE AGENCY 5 THROUGH WHICH THE INDIVIDUAL OBTAINED THE CERTIFICATION; AND 6

(2) WHILE THAT PRIVATE PROCESS SERVICE AGENCY IS 7 LICENSED UNDER THIS TITLE. 8

13.5–407. 9

(A) THE SECRETARY SHALL ISSUE TO EACH INDIVIDUAL WHO IS 10 CERTIFIED AS A PRIVATE PROCESS SERVER UNDER THIS SUBTITLE A 11 CERTIFICATION CARD THAT IDENTIFIES THE INDIVIDUAL AS A CERTIFIED 12 PRIVATE PROCESS SERVER. 13

(B) (1) SUBJECT TO THIS SUBSECTION, THE SECRETARY SHALL 14 DETERMINE THE FORM AND CONTENT OF THE CERTIFICATION CARD. 15

(2) THE CERTIFICATION CARD SHALL BE OF A SIZE AND MADE OF 16 MATERIALS APPROPRIATE FOR ITS INTENDED USE, AS PROVIDED UNDER § 17 13.5–408 OF THIS SUBTITLE. 18

(3) THE CERTIFICATION CARD SHALL CONTAIN: 19

(I) A STATEMENT THAT IN SUBSTANCE SPECIFIES THAT 20 THE INDIVIDUAL IS CERTIFIED BY THE SECRETARY AS A PRIVATE PROCESS 21 SERVER; 22

(II) THE NAME OF THE LICENSED PRIVATE PROCESS 23 SERVICE AGENCY WITH WHICH THE INDIVIDUAL IS ASSOCIATED OR BY WHICH 24 THE INDIVIDUAL IS EMPLOYED; AND 25

(III) ANY INFORMATION THAT THE SECRETARY CONSIDERS 26 APPROPRIATE TO: 27

1. IDENTIFY THE INDIVIDUAL; OR 28

2. SPECIFY THE AUTHORITY OF THE INDIVIDUAL. 29

22 SENATE BILL 554

13.5–408. 1

(A) AT ANY TIME THAT A CERTIFIED PRIVATE PROCESS SERVER 2 PROVIDES PRIVATE PROCESS SERVICE, THE PRIVATE PROCESS SERVER SHALL 3 CARRY THE CERTIFICATION CARD ISSUED UNDER § 13.5–407 OF THIS SUBTITLE. 4

(B) ON REQUEST OF A LAW ENFORCEMENT OFFICER, A CERTIFIED 5 PRIVATE PROCESS SERVER SHALL SHOW THE PRIVATE PROCESS SERVER’S 6 CERTIFICATION CARD. 7

13.5–409. 8

A CERTIFIED PRIVATE PROCESS SERVER MAY WEAR OR CARRY A BADGE 9 ONLY IF: 10

(1) THE SECRETARY AUTHORIZES THE WEARING OR CARRYING 11 OF THE BADGE; 12

(2) THE DESIGN OF THE BADGE IS APPROVED BY THE 13 SECRETARY; AND 14

(3) THE BADGE IS ISSUED BY THE LICENSED PRIVATE PROCESS 15 SERVICE AGENCY THROUGH WHICH THE PRIVATE PROCESS SERVER IS 16 CERTIFIED. 17

13.5–410. 18

SUBJECT TO THE HEARING PROVISIONS OF § 13.5–412 OF THIS SUBTITLE, 19 THE SECRETARY MAY DENY CERTIFICATION AS A PRIVATE PROCESS SERVER TO 20 ANY APPLICANT, REPRIMAND OR FINE ANY INDIVIDUAL CERTIFIED AS A 21 PRIVATE PROCESS SERVER, OR SUSPEND OR REVOKE THE CERTIFICATION OF 22 AN INDIVIDUAL: 23

(1) FOR ANY APPLICABLE GROUND UNDER § 13.5–312 OF THIS 24 TITLE; 25

(2) IF THE APPLICANT OR INDIVIDUAL FRAUDULENTLY OR 26 DECEPTIVELY OBTAINS OR ATTEMPTS TO OBTAIN CERTIFICATION AS A PRIVATE 27 PROCESS SERVER FOR THE APPLICANT OR INDIVIDUAL OR FOR ANOTHER; OR 28

SENATE BILL 554 23

(3) IF THE APPLICANT OR INDIVIDUAL FAILS TO MAINTAIN THE 1 STANDARDS SET BY THE SECRETARY FOR CERTIFICATION AS A PRIVATE 2 PROCESS SERVER. 3

13.5–411. 4

(A) SUBJECT TO THIS SECTION, THE SECRETARY SHALL COMMENCE 5 PROCEEDINGS UNDER § 13.5–410 OF THIS SUBTITLE ON THE SECRETARY’S OWN 6 COMPLAINT OR ON A COMPLAINT MADE TO THE SECRETARY BY ANY PERSON. 7

(B) (1) A COMPLAINT SHALL: 8

(I) BE IN WRITING; 9

(II) BE SIGNED BY THE COMPLAINANT; AND 10

(III) STATE SPECIFICALLY THE FACTS ON WHICH THE 11 COMPLAINT IS BASED. 12

(2) IF A COMPLAINT IS MADE BY ANY PERSON OTHER THAN THE 13 SECRETARY, THE COMPLAINT SHALL BE MADE UNDER OATH BY THE PERSON 14 WHO SUBMITS THE COMPLAINT. 15

(C) (1) ON RECEIPT OF A COMPLAINT THAT ALLEGES FACTS THAT 16 ARE GROUNDS FOR ACTION UNDER § 13.5–410 OF THIS SUBTITLE, THE 17 SECRETARY SHALL APPOINT AN OFFICER OF THE DEPARTMENT OF STATE 18 POLICE, WITH THE RANK OF LIEUTENANT OR ABOVE, AS THE INVESTIGATING 19 OFFICER FOR THE COMPLAINT. 20

(2) THE INVESTIGATING OFFICER MAY ASSIGN RESPONSIBILITY 21 FOR CONDUCTING THE INVESTIGATION TO OTHER MEMBERS OF THE 22 DEPARTMENT OF STATE POLICE. 23

(D) (1) ON CONCLUSION OF THE INVESTIGATION, THE 24 INVESTIGATING OFFICER SHALL DETERMINE WHETHER THERE IS A 25 REASONABLE BASIS TO BELIEVE THAT THERE ARE GROUNDS FOR DISCIPLINARY 26 ACTION UNDER § 13.5–410 OF THIS SUBTITLE. 27

(2) IF THE INVESTIGATING OFFICER FINDS A REASONABLE BASIS 28 AS PROVIDED UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE SECRETARY 29 SHALL ACT ON THE COMPLAINT AS PROVIDED UNDER § 13.5–412 OF THIS 30 SUBTITLE. 31

24 SENATE BILL 554

13.5–412. 1

(A) EXCEPT AS OTHERWISE PROVIDED IN § 10–226 OF THE STATE 2 GOVERNMENT ARTICLE, BEFORE THE SECRETARY TAKES ANY FINAL ACTION 3 UNDER § 13.5–410 OF THIS SUBTITLE, THE SECRETARY SHALL GIVE THE 4 INDIVIDUAL AGAINST WHOM THE ACTION IS CONTEMPLATED AN OPPORTUNITY 5 FOR A HEARING BEFORE THE SECRETARY. 6

(B) THE SECRETARY SHALL GIVE NOTICE AND HOLD THE HEARING IN 7 ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT 8 ARTICLE. 9

(C) THE SECRETARY MAY ADMINISTER OATHS IN CONNECTION WITH 10 ANY PROCEEDING UNDER THIS SECTION. 11

(D) THE HEARING NOTICE TO BE GIVEN TO THE INDIVIDUAL SHALL BE 12 WRITTEN AND SENT AT LEAST 10 DAYS BEFORE THE HEARING. 13

(E) THE INDIVIDUAL MAY BE REPRESENTED AT THE HEARING BY 14 COUNSEL. 15

(F) IF, AFTER DUE NOTICE, THE INDIVIDUAL AGAINST WHOM THE 16 ACTION IS CONTEMPLATED FAILS OR REFUSES TO APPEAR, NEVERTHELESS THE 17 SECRETARY MAY HEAR AND DETERMINE THE MATTER. 18

13.5–413. 19

WITHIN 5 DAYS AFTER THE SECRETARY SUSPENDS OR REVOKES THE 20 CERTIFICATION OF AN INDIVIDUAL AS A PRIVATE PROCESS SERVER, THE 21 INDIVIDUAL SHALL SURRENDER TO THE SECRETARY THE CERTIFICATION CARD 22 AND BADGE, IF ANY, OF THE INDIVIDUAL. 23

SUBTITLE 5. MISCELLANEOUS PROVISIONS. 24

13.5–501. 25

A PRIVATE PROCESS SERVICE AGENCY IS RESPONSIBLE FOR THE ACTS OF 26 EACH OF ITS EMPLOYEES WHILE THE EMPLOYEE IS CONDUCTING THE BUSINESS 27 OF THE AGENCY. 28

13.5–502. 29

SENATE BILL 554 25

(A) THE OFFICES OF EACH PRIVATE PROCESS SERVICE AGENCY SHALL 1 BE SUPERVISED BY AN INDIVIDUAL WHO: 2

(1) HOLDS, AS AN INDIVIDUAL, THE LICENSE OF THE PRIVATE 3 PROCESS SERVICE AGENCY; OR 4

(2) IS THE REPRESENTATIVE MEMBER OF THE PRIVATE PROCESS 5 SERVICE AGENCY APPOINTED UNDER § 13.5–302(B) OF THIS TITLE. 6

(B) IF A PRIVATE PROCESS SERVICE AGENCY IS A FIRM, THE AGENCY 7 SHALL NOTIFY THE SECRETARY ABOUT: 8

(1) THE IDENTITY OF THE INDIVIDUAL SERVING AS THE 9 REPRESENTATIVE MEMBER OF THE AGENCY; AND 10

(2) EACH VACANCY IN THAT POSITION. 11

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 12 SUBSECTION, A PRIVATE PROCESS SERVICE AGENCY SHALL APPOINT A 13 REPRESENTATIVE MEMBER WITHIN 90 DAYS AFTER A VACANCY OCCURS IN THE 14 POSITION. 15

(2) IF THE VACANCY IS CAUSED BY THE DEATH OF OR AN 16 INCAPACITATING INJURY TO THE REPRESENTATIVE MEMBER, THE PRIVATE 17 PROCESS SERVICE AGENCY SHALL APPOINT A REPLACEMENT WITHIN 180 DAYS 18 AFTER THE VACANCY OCCURS. 19

(D) IF A LICENSED PRIVATE PROCESS SERVICE AGENCY FAILS TO 20 APPOINT A REPRESENTATIVE MEMBER AS REQUIRED UNDER SUBSECTION (C) 21 OF THIS SECTION, THE LICENSE OF THE PRIVATE PROCESS SERVICE AGENCY: 22

(1) IS SUSPENDED AUTOMATICALLY; AND 23

(2) SHALL REMAIN SUSPENDED UNTIL THE AGENCY COMPLIES 24 WITH THE REQUIREMENTS. 25

(E) THE SECRETARY MAY ADOPT REGULATIONS TO CARRY OUT THIS 26 SECTION. 27

13.5–503. 28

(A) (1) SUBJECT TO THIS SECTION, AN APPLICANT FOR A LICENSE 29 SHALL EXECUTE A BOND THAT IS CONDITIONED ON THE FAITHFUL AND HONEST 30

26 SENATE BILL 554

CONDUCT OF THE APPLICANT AND RUNS TO THE STATE FOR THE BENEFIT OF 1 ANY PERSON INJURED BY ANY WRONGFUL ACT OF THE APPLICANT THAT IS 2 WILLFUL OR MALICIOUS. 3

(2) THE APPLICANT SHALL SUBMIT THE BOND TO THE 4 SECRETARY WITH THE LICENSE APPLICATION. 5

(B) (1) THE AMOUNT OF THE BOND REQUIRED UNDER SUBSECTION 6 (A) OF THIS SECTION SHALL BE AT LEAST: 7

(I) $15,000, IF THE APPLICANT IS AN INDIVIDUAL; OR 8

(II) $1,000,000, IF THE APPLICANT IS A FIRM. 9

(2) THE TOTAL LIABILITY OF THE SURETY TO ALL INSURED 10 PERSONS UNDER THE BOND MAY NOT EXCEED THE PENAL SUM OF THE BOND. 11

(C) A LICENSEE SHALL KEEP IN EFFECT AT ALL TIMES A BOND THAT 12 MEETS THE REQUIREMENTS OF THIS SECTION. 13

(D) (1) IF A LICENSEE’S BOND IS CANCELED, FORFEITED, OR 14 TERMINATED BY THE SURETY, THE SURETY IMMEDIATELY SHALL NOTIFY THE 15 SECRETARY. 16

(2) IF A SURETY FAILS TO NOTIFY THE SECRETARY AS REQUIRED 17 BY THIS SUBSECTION, THE BOND SHALL CONTINUE IN EFFECT UNTIL THE 18 NOTICE IS GIVEN TO THE SECRETARY. 19

13.5–504. 20

(A) A NONRESIDENT APPLICANT FOR A LICENSE SHALL SUBMIT TO THE 21 SECRETARY OF STATE A CONSENT, AS PROVIDED UNDER THIS SECTION. 22

(B) THE CONSENT REQUIRED UNDER THIS SECTION SHALL: 23

(1) SPECIFY THAT SERVICE OF PROCESS ON THE SECRETARY OF 24 STATE SHALL BIND THE APPLICANT IN ANY ACTION, SUIT, OR PROCEEDING 25 BROUGHT AGAINST THE APPLICANT; 26

(2) SPECIFY THAT AN ACTION, SUIT, OR PROCEEDING MAY BE 27 BROUGHT AGAINST THE APPLICANT IN ANY COUNTY WHERE: 28

(I) THE CAUSE OF ACTION AROSE; OR 29

SENATE BILL 554 27

(II) THE PLAINTIFF RESIDES; AND 1

(3) BE SIGNED BY THE REPRESENTATIVE MEMBER OF THE 2 APPLICANT. 3

(C) IN ADDITION TO SUBMITTING A CONSENT, A NONRESIDENT 4 APPLICANT SHALL SUBMIT TO THE SECRETARY OF STATE A CERTIFIED COPY OF 5 A RESOLUTION ADOPTED BY THE FIRM THAT CONFIRMS THAT THE FIRM 6 MEMBERS, BOARD OF DIRECTORS, OR OTHER MANAGING BOARD OF THE FIRM 7 AUTHORIZED THE REPRESENTATIVE MEMBER TO EXECUTE AND SUBMIT THE 8 CONSENT ON BEHALF OF THE FIRM. 9

(D) AN APPLICANT WHO IS REQUIRED UNDER THIS SECTION TO SUBMIT 10 A CONSENT OR A CONSENT AND AUTHORIZATION TO THE SECRETARY OF STATE 11 SHALL SUBMIT COPIES OF THE SIGNED DOCUMENTS TO THE SECRETARY. 12

(E) THE SECRETARY MAY NOT ISSUE A LICENSE TO A NONRESIDENT 13 APPLICANT UNLESS THE NONRESIDENT APPLICANT COMPLIES WITH THE 14 REQUIREMENTS OF SUBSECTIONS (A) THROUGH (D) OF THIS SECTION. 15

(F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, SERVICE 16 OF PROCESS ON THE SECRETARY OF STATE BINDS A PERSON WHO HAS 17 SUBMITTED A CONSENT TO THE SECRETARY OF STATE, AS REQUIRED UNDER 18 THIS SECTION. 19

(2) IF SERVICE OF PROCESS IS MADE ON THE SECRETARY OF 20 STATE AS AUTHORIZED UNDER THIS SECTION, THE PERSON INITIATING THE 21 ACTION, SUIT, OR PROCEEDING IMMEDIATELY SHALL SEND A COPY, BY 22 CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE PRINCIPAL OFFICE IN 23 THE STATE OF THE PERSON AGAINST WHOM THE ACTION, SUIT, OR PROCEEDING 24 IS DIRECTED. 25

(3) AS TO ANY PERSON WHO SUBMITS A CONSENT AS REQUIRED 26 UNDER THIS SECTION, ANY ACTION, SUIT, OR PROCEEDING MAY BE BROUGHT IN 27 ANY COUNTY WHERE: 28

(I) THE CAUSE OF ACTION AROSE; OR 29

(II) THE PLAINTIFF RESIDES. 30

13.5–505. 31

28 SENATE BILL 554

(A) IN THIS SECTION, “AGENCY EQUIPMENT” MEANS A BADGE, 1 CLOTHING, OR OTHER EQUIPMENT THAT: 2

(1) BELONGS TO A PRIVATE PROCESS SERVICE AGENCY; AND 3

(2) BEARS THE NAME, TRADE NAME, OR TRADEMARK OF THE 4 PRIVATE PROCESS SERVICE AGENCY. 5

(B) IF A PRIVATE PROCESS SERVICE AGENCY ISSUES AGENCY 6 EQUIPMENT FOR USE BY AN INDIVIDUAL WHO IS ASSOCIATED WITH OR 7 EMPLOYED BY THE AGENCY, THE INDIVIDUAL SHALL RETURN THE AGENCY 8 EQUIPMENT TO THE AGENCY WITHIN 10 DAYS AFTER: 9

(1) THE TERMINATION OF THE INDIVIDUAL’S ASSOCIATION OR 10 EMPLOYMENT WITH THE AGENCY; OR 11

(2) THE WRITTEN REQUEST OF AN AUTHORIZED 12 REPRESENTATIVE OF THE AGENCY. 13

13.5–506. 14

IF A CERTIFIED PRIVATE PROCESS SERVER LOSES A CERTIFICATION 15 CARD, THE PRIVATE PROCESS SERVER IMMEDIATELY SHALL GIVE THE 16 SECRETARY NOTICE OF THE LOSS AND THE CIRCUMSTANCES REGARDING THE 17 LOSS. 18

SUBTITLE 6. PROHIBITED ACTS; PENALTIES. 19

13.5–601. 20

(A) A PERSON MAY NOT ENGAGE IN, ATTEMPT TO ENGAGE IN, OFFER TO 21 ENGAGE IN, OR SOLICIT TO ENGAGE IN A BUSINESS FOR THE PURPOSE OF 22 PROVIDING PRIVATE PROCESS SERVICE IN THE STATE UNLESS LICENSED AS A 23 PRIVATE PROCESS SERVICE AGENCY BY THE SECRETARY. 24

(B) AN INDIVIDUAL MAY NOT PROVIDE, ATTEMPT TO PROVIDE, OFFER 25 TO PROVIDE, OR SOLICIT TO PROVIDE PRIVATE PROCESS SERVICE IN THE 26 STATE UNLESS CERTIFIED AS A PRIVATE PROCESS SERVER BY THE SECRETARY. 27

13.5–602. 28

(A) UNLESS AUTHORIZED UNDER THIS TITLE TO ENGAGE IN BUSINESS 29 FOR THE PURPOSE OF PROVIDING PRIVATE PROCESS SERVICE, A PERSON MAY 30

SENATE BILL 554 29

NOT REPRESENT TO THE PUBLIC, BY USE OF A TITLE, INCLUDING “LICENSED 1 PRIVATE PROCESS SERVICE AGENCY”, “PRIVATE PROCESS SERVICE AGENCY”, 2 OR “PRIVATE PROCESS SERVERS”, BY DESCRIPTION OF SERVICES, METHODS, OR 3 PROCEDURES, OR OTHERWISE, THAT THE PERSON IS AUTHORIZED TO ENGAGE 4 IN THE BUSINESS OF PROVIDING PRIVATE PROCESS SERVICE IN THE STATE. 5

(B) UNLESS AN INDIVIDUAL IS CERTIFIED AS A PRIVATE PROCESS 6 SERVER UNDER THIS TITLE, THE INDIVIDUAL MAY NOT REPRESENT TO THE 7 PUBLIC, BY USE OF A TITLE, INCLUDING “CERTIFIED PRIVATE PROCESS 8 SERVER”, “LICENSED PRIVATE PROCESS SERVER”, OR “PRIVATE PROCESS 9 SERVER”, BY USE OF A BADGE OR IDENTIFICATION CARD, BY DESCRIPTION OF 10 SERVICES, METHODS, OR PROCEDURES, OR OTHERWISE, THAT THE INDIVIDUAL 11 IS AUTHORIZED TO PROVIDE PRIVATE PROCESS SERVICE IN THE STATE. 12

13.5–603. 13

(A) EXCEPT AS AUTHORIZED UNDER THIS TITLE, A PRIVATE PROCESS 14 SERVICE AGENCY MAY NOT PROVIDE ANY PERSON WITH A BADGE OR A 15 CERTIFICATION CARD OR OTHER DOCUMENT INDICATING THAT ANY 16 INDIVIDUAL IS A PRIVATE PROCESS SERVER. 17

(B) A CERTIFIED PRIVATE PROCESS SERVER MAY NOT LEND THE 18 PRIVATE PROCESS SERVER’S CERTIFICATION CARD OR BADGE TO ANOTHER 19 PERSON OR ALLOW ANOTHER PERSON TO USE OR DISPLAY THE CARD OR BADGE. 20

(C) REGARDLESS OF ANY ASSOCIATION THAT AN INDIVIDUAL MAY HAVE 21 WITH A PRIVATE PROCESS SERVICE AGENCY, UNLESS AUTHORIZED UNDER THIS 22 TITLE, THE INDIVIDUAL MAY NOT WEAR OR CARRY A BADGE THAT: 23

(1) REPRESENTS THAT THE INDIVIDUAL IS A PRIVATE PROCESS 24 SERVER; OR 25

(2) OTHERWISE REPRESENTS THAT THE INDIVIDUAL IS 26 ASSOCIATED WITH A PRIVATE PROCESS SERVICE AGENCY. 27

13.5–604. 28

(A) (1) A LICENSEE MAY NOT DISPLAY OR ALLOW TO BE DISPLAYED 29 THE AGENCY LICENSE CERTIFICATE AT ANY LOCATION OTHER THAN THE 30 PRINCIPAL OFFICE OF THE LICENSEE, AS SPECIFIED IN THE CERTIFICATE. 31

30 SENATE BILL 554

(2) A LICENSEE MAY NOT DISPLAY OR ALLOW TO BE DISPLAYED A 1 BRANCH OFFICE CERTIFICATE AT ANY LOCATION OTHER THAN THE BRANCH 2 OFFICE SPECIFIED IN THE CERTIFICATE. 3

(B) A LICENSEE MAY NOT KNOWINGLY ALTER, DEFACE, OR DESTROY OR 4 KNOWINGLY ALLOW THE ALTERATION, DEFACEMENT, OR DESTRUCTION OF AN 5 AGENCY LICENSE CERTIFICATE OR BRANCH OFFICE CERTIFICATE. 6

13.5–605. 7

A PERSON MAY NOT WILLFULLY MAKE A FALSE STATEMENT ON ANY 8 APPLICATION FORM, ANNUAL STATEMENT, OR OTHER DOCUMENT SUBMITTED 9 TO THE SECRETARY UNDER THIS TITLE. 10

13.5–606. 11

AN INDIVIDUAL WHOM A LICENSEE EMPLOYS AS A PRIVATE PROCESS 12 SERVER MAY NOT WILLFULLY MAKE A FALSE STATEMENT OR REPORT TO THE 13 LICENSEE ABOUT ANY SERVICE OF PROCESS COMPLETED OR OTHER SERVICES 14 PROVIDED BY THE LICENSEE. 15

13.5–607. 16

(A) A PERSON WHO VIOLATES ANY PROVISION OF THIS TITLE IS GUILTY 17 OF A MISDEMEANOR AND ON CONVICTION IS SUBJECT TO A FINE NOT 18 EXCEEDING $1,000 OR IMPRISONMENT NOT EXCEEDING 1 YEAR OR BOTH. 19

(B) THE FINES ASSESSED UNDER §§ 13.5–312 AND 13.5–410 OF THIS 20 TITLE MAY NOT EXCEED $5,000 PER VIOLATION, OR A MAXIMUM AGGREGATE OF 21 $10,000 FOR A 2–YEAR LICENSE TERM, AND SHALL BE PAID TO THE SECRETARY 22 WITHIN 10 DAYS AFTER FINAL ADJUDICATION OF ANY HEARING OR ON THE 23 WAIVER OF ANY HEARING. 24

(C) NOTWITHSTANDING THE PROVISIONS OF §§ 13.5–312 AND 13.5–410 25 OF THIS TITLE, THE SECRETARY MAY FINE EITHER THE LICENSED AGENCY OR 26 THE INDIVIDUAL WORKING ON BEHALF OF THE LICENSED AGENCY, BUT NOT 27 BOTH, FOR THE SAME VIOLATION. 28

SUBTITLE 7. SHORT TITLE. 29

13.5–701. 30

SENATE BILL 554 31

THIS TITLE MAY BE CITED AS THE “MARYLAND PRIVATE PROCESS 1 SERVERS ACT”. 2

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 October 1, 2013. 4