BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 468| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 468 Page 2 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) SB 468 Page 3 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 SB 468 Page 4 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 SB 468 Page 5 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, SB 468 Page 6 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 SB 468 Page 7 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. SB 468 Page 8 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 **** END ****