Each licensed private investigator, watch guard or patrol agency including every proprietary security guard company shall obtain a complete employee statement from each employee at the time of hiring. For a security guard company which has elected to form a security guard entity as provided in section 174.3 of this Title, such requirement shall apply only to those employees whose job duties are primarily related to the operation of such entity. Each licensed bail enforcement agent shall obtain a complete employee statement from each employee.

(b) The employee statement shall be a form prescribed by the Department of State, and shall inquire whether or not the employee has ever been convicted of an offense (other than a minor motor vehicle offense), and any such further information as the Department of State shall require.

(c) A licensee under article 7 of the General Business Law may destroy the employee's statement and fingerprint card referred to in section 81 of said article, provided that the employee has not been in the licensee's employ for the period of at least one year immediately preceding said destruction; no such destruction shall take place in the event that there is any litigation pending and arising out of and in the course of the individual's employment with the licensee.