BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                        SB 468|
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                                   THIRD READING 


          Bill No:  SB 468
          Author:   Hill (D)
          Amended:  6/1/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 4/27/15
           AYES:  Hill, Bates, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NO VOTE RECORDED:  Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Bureau of Security and Investigative Services:  
                     licensees


          SOURCE:    Author


          DIGEST:  This bill extends the operation of the Bureau of  
          Security and Investigative Services (Bureau) and the Alarm  
          Company Act, Locksmith Act, Private Investigator Act, Private  
          Security Services Act, Proprietary Security Services Act, and  
          Collateral Recovery Act until January 1, 2020.  This bill also  
          subjects the Bureau to review by the appropriate committees of  
          the Legislature and makes various changes to provisions in the  
          aforementioned Acts to improve the oversight, enforcement and  
          regulation by the Bureau of licensees under each Act.


          ANALYSIS:   









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          Existing law:


          1)Establishes the Bureau within the Department of Consumer  
            Affairs (DCA).  (Business and Professions Code (BPC)  6980.1)

          2)Establishes the following Acts:

             a)   Alarm Company Act (BPC  7590)
             b)   Locksmith Act (BPC  6980)
             c)   Private Investigator Act (BPC  7512)
             d)   Private Security Services Act (BPC  7580) 
             e)   Proprietary Security Services Act (BPC  7574)
             f)   Collateral Recovery Act (BPC  7500)

          3)Requires armed guards applying for a Bureau issued firearms  
            permit to submit a second set of fingerprints to the  
            Department of Justice (DOJ) to obtain a DOJ Firearm  
            Eligibility Determination before consideration of a firearms  
            permit from the Bureau.  (BPC  7583.23(c))

          4)Specifies that any institution, firm, or individual seeking  
            the Bureau's certification as a firearms training facility  
            must complete an application that includes: the name and  
            location of the entity, the places, days, and times the course  
            will be offered, an estimate of the minimum and maximum class  
            size, the location and description of the range facilities,  
            and the names and certificate numbers of the Bureau-certified  
            firearms training instructors who will teach the course.  (BPC  
             7585.3)

          5)States that applicants that wish to obtain a firearms  
            qualifications card must complete a course of training in the  
            carrying and usage of firearms according to the standards of  
            the Bureau's "Firearms Training Manual", which includes: the  
            moral and legal aspects of firearms usage, firearms  
            nomenclature and maintenance, weapon handling and shooting  
            fundamentals, emergency procedures, and prequalification range  
            training.  Applicants are also required to take a  
            qualification course of fire which includes: range safety and  
            procedures, demonstration and dry firing, practice rounds, and  
            qualification firing.  
          (BPC  7585 and 7585.6)







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          6)Specifies that any person registered as a security guard or  
            patrol person shall deliver to the Director of the DCA a  
            written report describing fully the circumstances surrounding  
            any incident involving the discharge of any firearm in which  
            he or she was involved while acting within the course and  
            scope of his or her employment, within seven days of the  
            incident and requires specified information to be provided on  
            the form provided by the Director.  
          (BPC  7583.4)

          7)Exempts California peace officers from Bureau firearms  
            training courses if he or she has successfully completed a  
            course of study in the use of firearms.  
          (BPC  7583.22)

          8)States that a private investigator (PI) must possess a valid  
            Bureau firearms qualification card on his or her person while  
            carrying a firearm during the course of an investigation.   
            (BPC  7542)

          9)States that every agreement, including, but not limited to,  
            lease agreements, monitoring agreements, and service  
            agreements, as well as all labor, services, and materials to  
            be provided for the installation of an alarm system, must be  
            in writing.  (BPC  7599.54)

          This bill:


          1) Extends the Bureau's operations and Alarm Company Act,  
             Locksmith Act, Private Investigator Act, Private Security  
             Services Act, Proprietary Security Services Act, and  
             Collateral Recovery Act until January 1, 2020. 

          2) Subjects the Bureau to review by the appropriate committees  
             of the Legislature.

          3) Requires applicants applying for licensure as an armed  
             security guard to submit alongside his or her application, a  
             signed affidavit of his or her completion of a psychological  
             examination by a licensed psychologist.

          4) Requires both a security guard and his or her employer to  







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             submit a written report to the Director of the DCA of any  
             incident involving the discharge of a firearm while he or she  
             is on duty.

          5) Requires the Bureau to conduct inspections of all firearms  
             training facilities in this state to ensure compliance with  
             applicable Bureau requirements, rules, and regulations.

          6) Exempts Federal Law Enforcement Officers from Bureau  
             firearms, power to arrest, and baton training requirements if  
             he or she has already completed a course of study for each.

          7) Clarifies that private investigators who wish to carry a  
             concealed firearm must obtain and have on their person while  
             carrying out an investigation, both a Bureau issued firearms  
             permit as well as a Concealed Carry Weapons (CCW) permit.  

          8) Requires alarm companies to make a specific disclosure to  
             their customers regarding any evergreen clause renewals in  
             their contracts.

          9) Updates the fine and citation structure for violations of  
             provisions in the Alarm Company Act, Private Investigator  
             Act, Private Security Services Act, and Collateral Recovery  
             Act.

          Background


          The following are some of the major issues pertaining to the  
          Bureau along with background information concerning the  
          particular issue. 

          Sunset Review of the Bureau.  Currently there is no sunset date  
          established for the Bureau or the six Acts which the Bureau  
          regulates.  The 2015 Sunset Hearing was the Bureau's first  
          Sunset Review.  The Bureau and DCA appear committed to working  
          collaboratively with the Legislature and the Committees to find  
          solutions moving forward in the regulation of this important  
          industry and thus should have the opportunity to address new and  
          existing issues raised within the Bureau as well as from the  
          Committees.  This bill will establish a new sunset date, thereby  
          extending the six professional Acts regulated by the Bureau in  
          order to address the issues raised within the Bureau and by the  







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          Committees.

          Mental Health Evaluations for Armed Guards.  Currently,  
          California does not require mental health examinations for armed  
          guards.  All applicant types, with the exception of proprietary  
          private security employers, must submit their fingerprints to  
          the Federal Bureau of Investigation and DOJ for a criminal  
          background check.  Guards who apply for a Bureau Firearm Permit  
          must submit a second set of fingerprints to obtain a DOJ Firearm  
          Eligibility Determination.  The DOJ Firearm Bureau then advises  
          the Bureau whether the individual may possess or is prohibited  
          from possessing a firearm based on the applicant's prior  
          criminal past or history of mental instability.  In addition,  
          Bureau staff checks the Bureau's application and enforcement  
          databases for any possible prior disciplinary actions, citations  
          issued, or investigations related to the applicant. 

          Mandatory Reporting Requirements.  The Bureau is not required by  
          law to collect reports of shooting incidents involving armed  
          guards.  However, entities overseeing the actions of licensed  
          armed guards are required to submit these reports.  The Private  
          Security Act requires security guards and their licensed  
          employer to report an incident within seven days of the incident  
          occurring.  The process of reporting an incident of an  
          altercation with an armed guard begins with a Report of Incident  
          Form (RIF).  After an RIF is submitted an investigation can be  
          initiated.  The Bureau will also initiate an investigation if it  
          receives information regarding an incident from law enforcement,  
          a complaint, or a media article.  This bill will require  
          applicants to submit an affidavit signed by a licensed  
          psychologist that states he or she has undergone a psychiatric  
          evaluation alongside his or her Bureau Firearm Permit  
          application.  This bill requires submission to the Director of  
          the DCA of a firearms incident report by both the individual  
          involved in the discharge incident as well as his or her  
          employer.

          Firearms Training Facilities Oversight.  There is no statutory  
          requirement for the Bureau to inspect the approved schools and  
          firearm/baton training facilities; however, the Bureau has the  
          discretionary authority to do so.  The Bureau carried out a  
          firearm training facility pilot program in Fiscal Year (FY)  
          2012-13 and conducted 15 inspections, but due to staff and  
          workload issues, the inspections were discontinued.  However,  







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          the firearm/baton training facilities and approved trainers are  
          inspected as part of an investigation in response to a  
          complaint.  This bill will require the Bureau to conduct  
          inspections of all firearms training facilities in the state of  
          California to ensure compliance with applicable Bureau  
          requirements, rules, and regulations.  
           
          Training Exemptions for Federal Law Enforcement Officers.  The  
          Private Security Services Act exempts specified peace officers  
          from the firearm training required as a condition for issuance  
          of the Bureau's Firearms Permit.  Peace officers are already  
          required to complete firearms training through their employing  
          agency, hence the exemptions from the training required for  
          issuance of the Bureau's Firearms Permit.  California does not  
          recognize Federal Law Enforcement Officers as California peace  
          officers.  Therefore, any Federal Law Enforcement Officer would  
          not qualify for the same exemptions mentioned above that  
          California peace officers would be eligible to receive even  
          though they are also already required to complete firearms  
          training through their employing agency.  This bill will exempt  
          Federal Law Enforcement Officers from Bureau firearms, power of  
          arrest, and baton required training courses if he or she has  
          already completed a course of study in each of these subjects.   
          This will make requirements and exemptions for Federal Law  
          Enforcement Officers consistent with requirements and exemptions  
          for California peace officers, whose prior training has been  
          determined as sufficient for licensure.

          Concealed Carry for PIs.  Currently, the BPC does not  
          specifically prohibit PIs to carry a concealed weapon while  
          carrying out an investigation covered by the Private  
          Investigator Act.  There is some concern about the transmittal  
          of information from the Bureau to licensees that a PI with a CCW  
          permit may not carry that concealed weapon while carrying out an  
          investigation covered by the Private Investigator Act.  This  
          bill clarifies that PIs who wish to carry a concealed firearm  
          may do so if he or she possesses both a Bureau Firearm Permit  
          and a CCW permit while carrying out an investigation.

          Evergreen Clause Disclosure.  Currently, Alarm Companies are  
          exempt from specific disclosure requirements regarding automatic  
          renewal provisions in their contracts, known as "Evergreen  
          Clauses".  This clause in the contract allows for automatic  
          renewal of the monitoring portion of the contract unless the  







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          customer cancels the contract in writing by the date indicated  
          in the contractual agreement.  The Bureau has stated that it  
          receives approximately 70 complaints per year related to  
          Evergreen Clauses, which comprises 40% of all alarm company  
          complaints received.  Since these complaints involve a  
          contractual agreement, the Bureau states that is it frequently  
          limited in what it can do for the consumer.  This bill requires  
          alarm companies to give their customers specific disclosure  
          about any automatic renewal provisions in their contracts.

          Cite and Fine Updates.  The Bureau issues citations and fines as  
          a means to encourage compliance with the laws and regulations of  
          the six acts within the Bureau's oversight authority.  Citations  
          are issued for the less egregious violations because the primary  
          intent is to encourage compliance as opposed to pursuing actions  
          to revoke or suspend licensure.  This bill updates the fine and  
          citation structure for violations of provisions in the Alarm  
          Company Act, Private Investigator Act, Private Security Services  
          Act, and Collateral Recovery Act in order to help the Bureau  
          better encourage compliance with existing laws and regulations.   


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           Bureau costs of approximately $300,000 annually, and three PY  
            of enforcement staff, to conduct compliance inspections of  
            firearms training facilities.  (Private Security Services  
            Fund)

           Bureau costs of approximately $131,000 annually, and two PY of  
            licensing staff, to process psychological examinations  
            submitted with Firearm Permit applications.  (Private Security  
            Services Fund)

           Prevents expenditures of approximately $12.1 million (mainly  
            from the Private Security Services Fund), supporting 51.4 PY,  
            and the collection of approximately $12.1 million in fee  
            revenues, beyond January 1, 2020.








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           Unknown penalty and fine revenue gains (Private Security  
            Services Fund)




          SUPPORT:   (Verified6/1/15)


          None received


          OPPOSITION:   (Verified6/1/15)


          Board of Psychology


          ARGUMENTS IN OPPOSITION:  The Board of Psychology is opposed to  
          this bill unless the provision of this bill requiring an  
          applicant to undergo a psychological evaluation before receiving  
          a firearms permit amends the type of test administered by a  
          licensed psychologist.  The Board of Psychology has proposed  
          language to remove the requirement of the administration of any  
          current standard form of the Minnesota Multiphasic Personality  
          Inventory and instead allow the licensed psychologist to  
          administer any psychological evaluation deemed necessary to  
          render a professional opinion.


          Prepared by:Janelle Miyashiro / B., P. & E.D. / (916) 651-4104
          6/1/15 16:10:23


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