A. The following constitute grounds for which disciplinary action specified in subsection B of this section may be taken against a licensee or registrant or, if the licensee is other than an individual, against the licensee's qualifying party or any of its associates, directors or managers:
1. Fraud or wilful misrepresentation in applying for an original license or registration or the renewal of an existing license or registration.
2. Using any letterhead, advertisement or other printed matter in any manner or representing that the licensee, associate, registrant or employee of the licensee is an instrumentality of the federal government, a state or any political subdivision of a state.
3. Using a name that is different from that under which the licensee, associate, registrant or employee of the licensee is currently licensed for any advertisement, solicitation or contract to secure business unless the name is an authorized fictitious name.
4. Impersonating, permitting or aiding and abetting an employee to impersonate a law enforcement officer or employee of the United States, any state or a political subdivision of a state.
5. Knowingly violating, or advising, encouraging or assisting the violation of, any statute, court order, warrant or injunction in the course of a business regulated under this chapter.
6. Falsifying fingerprints, photographs or other documents while operating under this chapter.
7. Conviction of a felony.
8. Conviction of any act involving a weapon pursuant to section 13-3102.
9. Conviction of any act of personal violence or force against any person or conviction of threatening to commit any act of personal violence or force against any person.
10. Soliciting business for an attorney in return for compensation.
11. Conviction of any act constituting dishonesty or fraud.
12. Being on parole, on community supervision, on work furlough, on home arrest, on release on any other basis or named in an outstanding arrest warrant.
13. Serving a term of probation pursuant to a conviction for any act of personal violence or domestic violence as defined in section 13-3601 or an offense that has the same elements as a domestic violence offense listed in section 13-3601, subsection A.
14. Committing or knowingly permitting any employee to commit any violation of this chapter or rules adopted pursuant to this chapter.
15. Wilfully failing or refusing to render to a client services or a report as agreed between the parties and for which compensation has been paid or tendered in accordance with the agreement of the parties.
16. The unauthorized release of information acquired on behalf of a client by a licensee, associate or registrant as a result of activities regulated under this chapter.
17. Failing or refusing to cooperate with or refusing access to an authorized representative of the department engaged in an official investigation pursuant to this chapter.
18. Employing or contracting with any unregistered or improperly registered person or unlicensed or improperly licensed person or agency to conduct activities regulated under this chapter if the licensure or registration status was known or could have been ascertained by reasonable inquiry.
19. Permitting, authorizing, aiding or in any way assisting a registered employee to conduct services as described in this chapter on an independent contractor basis and not under the authority of the licensed agency.
20. Failing to maintain in full force and effect workers' compensation insurance, if applicable.
21. Conducting private investigation services regulated by this chapter on an expired, revoked or suspended license or registration.
22. Accepting employment, contracting or in any way engaging in employment that has an adverse impact on investigations being conducted on behalf of clients.
23. Advertising in a false, deceptive or misleading manner.
24. Failing to display on request the identification card issued by the department as required under section 32-2451, subsection B.
25. Committing any act of unprofessional conduct.
26. Being arrested for any offense that is listed in this chapter and that would disqualify the licensee, registrant or qualifying party or any of its associates, directors or managers from obtaining a license or registration.
27. Failing to maintain all qualifications as prescribed by sections 32-2422 and 32-2441, as applicable.
B. On completion of an investigation, the director:
1. May dismiss the case.
2. May take emergency action.
3. May issue a letter of concern, if applicable.
4. May forward the findings to the board for review and possible disciplinary action.
5. Shall place all records, evidence, findings and conclusions and any other information pertinent to the investigation in the public records section of the file maintained at the department.
6. May suspend the license or registration of a person who is arrested for an offense that is listed in this chapter and that would disqualify the person from obtaining a license or registration.
C. A letter of concern is a public document and may be used in future disciplinary actions against a licensee.
D. If the department finds, based on its investigation, that the public health, safety or welfare requires emergency action, the director may order a summary suspension of a license or registration pending proceedings for revocation or other action. If the director issues this order, the department shall serve the licensee or registrant with a written notice of complaint and formal hearing, setting forth the charges made against the licensee or registrant and the licensee's or registrant's right to a formal hearing before the board pursuant to title 41, chapter 6, article 10.
E. If the department finds, based on its investigation, that a violation of subsection A of this section occurred, a hearing by the board may be scheduled pursuant to title 41, chapter 6, article 10. The department shall send notice of the hearing by certified mail, return receipt requested, to the licensee's or registrant's last known address in the department's records.
F. Based on information the board receives during a hearing pursuant to title 41, chapter 6, article 10, it may recommend to the director that the director:
1. Dismiss the complaint if the board believes it is without merit.
2. Fix a period and terms of probation best adapted to protect the public health and safety and to rehabilitate or educate the licensee or registrant.
3. Suspend the license or registration for a period of not more than twelve months.
4. Revoke the license or registration.
G. On a finding by the board and review and concurrence by the director that a licensee or registrant committed a violation of subsection A of this section, the probation, suspension or revocation applies to all licenses or registrations held by a licensee or registrant under this chapter and chapter 26 of this title.
H. Except as provided in section 41-1092.08, subsection H, a person may appeal a final administrative decision made pursuant to this section to the superior court pursuant to title 12, chapter 7, article 6.