BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 468  


                                                                    Page  1





          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 468  
          (Hill) - As Amended July 14, 2015


           ----------------------------------------------------------------- 
          |Policy       |Business and Professions       |Vote:|11 - 3       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:  This bill subjects the powers and duties of the Bureau  
          of Security and Investigative Services (Bureau) to sunset review  
          by the Legislature as if its governing statutes were scheduled  
          for repeal on January 1, 2020.  


          The bill also requires applicants for armed security guard  








                                                                     SB 468  


                                                                    Page  2





          licensure to submit proof of a psychological examination with  
          the application for a firearms permit, requires the Bureau to  
          inspect all firearms training facilities, and makes several  
          other changes to the laws under the Bureau's regulatory  
          authority.


          FISCAL EFFECT:


          1)Ongoing costs to the Bureau of approximately $300,000 annually  
            (Private Security Services Fund), and 3 PY of enforcement  
            staff, to conduct compliance inspections of firearms training  
            facilities. The Bureau currently has 367 licensed firearm  
            training facilities and assumes a 5% increase annually.



          2)Ongoing costs to the Bureau of approximately $354,000 annually  
            (Private Security Services Fund), and 3.6 PY of licensing  
            staff, to process psychological examinations submitted with  
            Firearm Permit applications. The Bureau receives an average of  
            25,734 new and renewal applications each year and estimates  
            each evaluation will take about 15 minutes to review.



          3)Onetime costs of approximately $397,000 to add psychological  
            testing and firearm inspection codes to the BreEZ system. The  
            Bureau anticipates these costs to be absorbable within  
            existing resources.

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













                                                                     SB 468  


                                                                    Page  3





          5)Staff notes that the Bureau has projected expenditures of  
            approximately $12.1 million (mainly from the Private Security  
            Services Fund) annually, supporting 51.4 PY.  This is offset  
            by the collection of approximately $12.1 million in fee  
            revenues. Staff also notes that the Private Security Services  
            Fund and the Private Investigator Fund have revenues and  
            expenditures that are in balance, and both funds have healthy  
            reserves to fund the additional expenditures related to this  
            bill.  



          COMMENTS:


          1)Purpose.  This bill is one of several sunset review bills  
            introduced this year intended to provide continued oversight  
            and accountability to the many boards and bureaus under the  
            Department of Consumer Affairs (DCA). The bill codifies a  
            sunset date for the Bureau for the first time and addresses  
            several issues that arose during the sunset review process,  
            primarily concerning armed security guards. 



            According to the Author, "This bill is necessary to ensure  
            continued oversight of alarm companies and their employees,  
            locksmiths, private investigators, private security services,  
            proprietary security services, and repossessors."  





          2)Background. Under existing law, the Bureau, within DCA,  
            licenses about 380,000 companies and employees serving in the  
            areas of alarm services, locksmith services, private  
            investigation, private security, repossession, and firearm and  
            baton training.  Based on the past three fiscal years, the  








                                                                     SB 468  


                                                                    Page  4





            Bureau issues an average of 1,900 company licenses, 71,000  
            employee registrations, and 12,000 Bureau firearm permits. On  
            average, the Bureau renews 9,500 company licenses, 105,000  
            employee registrations, and 11,500 Bureau firearm permits each  
            year.



            The Bureau is responsible for regulating six Acts under state  
            law, including the Alarm Company Act, the Locksmith Act, the  
            Private Investigator Act, the Private Security Services Act,  
            the Proprietary Security Services Act, and the Collateral  
            Recovery Act. The Bureau had its first sunset review hearing  
            by the Legislature in 2015, but there is no sunset date of the  
            Bureau in existing law.





            This bill subjects the Bureau to further review by January 1,  
            2020, as well as addresses several concerns raised during this  
            year's review process.





          3)Armed Security 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 Department of Justice (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  








                                                                     SB 468  


                                                                    Page  5





            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.  Mental instability  
            includes past restraining orders, suicide attempts, and 5150  
            psychiatric holds.





            As a result of concerns raised during the sunset review  
            process, 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.


          


          4)Firearms Training Facilities Oversight.  Any institution,  
            firm, or individual seeking the Bureau's certification as a  
            firearms training facility must complete a detailed  
            application. In addition, each owner or principal of the  
            training facility business must complete a personal  
            identification application form, pay the specified  
            certification fee, and submit fingerprints.

            The initial and continued education firearms training course  
            offered by a Bureau-certified firearms training facility must  
            comply with the content and format specified in the Bureau's  
            Firearms Training Manual, but the firearm training facility is  
            not required to provide its specific course materials to the  
            Bureau for approval.

            The Bureau has the authority, but is not required, to inspect  
            the approved schools and firearm/baton training facilities.  
            The Bureau conducted 15 inspections in 2012-13, but currently  








                                                                     SB 468  


                                                                    Page  6





            only conduct an inpsection in response to a complaint. The  
            Bureau has the statutory authority to suspend or revoke a  
            firearm/baton training school's certification, as well as to  
            cancel the approval of an approved trainer for violations of  
            the law. 

            As a result of issues raised during the sunset review process  
            regarding adequate training for licensees pursuing a Bureau  
            Firearm Permit, this bill will require the Bureau to conduct  
            inspections of all firearms training facilities to ensure  
            compliance with applicable Bureau requirements, rules, and  
            regulations.

          5)Related Legislation. 



             a)   SB 177 (Wiekowski), on the governor's Desk, extends the  
               authorization of Bureau to issue an alarm company operator  
               license to a limited liability company (LLC) until January  
               1, 2019.  



             b)   AB 281 (Gallagher), pending in the Senate Appropriations  
               Committee, establishes a Collateral Recovery Disciplinary  
               Review Committee within the Bureau; authorizes licensed  
               repossessors to display a printout of their registration or  
               a screenshot of their registration from Bureau's website;  
               and makes other clarifying changes.  



             c)   AB 921 (Jones), pending on the Senate Floor, establishes  
               a Private Investigator Disciplinary Review Committee within  
               Bureau and authorizes an applicant for an original license,  
               or renewal of a license as a private investigator, to put  
               his or her email address on the application at his or her  
               discretion.  








                                                                     SB 468  


                                                                    Page  7








             d)   AB 1042 (Cooper), pending in the Senate Appropriations  
               Committee, expands the definition of a proprietary private  
               security officer (PSO) and includes examples of a PSO's  
               duties that are likely to involve interacting with the  
               public.  



             e)   AB 1097 (Holden), pending on the Senate Floor,  
               authorizes alarm companies to distribute contracts to  
               customers by electronic means, as specified.  



          1)Sunset Review Legislation. This bill is one of five Senate  
            measures introduced this session to extend the sunset on  
            licensing boards within DCA - including SB 465 (Hill), pending  
            in the Business and Professions Committee, and SB 466 (Hill),  
            SB 467 (Hill), and SB 469 (Hill), pending with this Committee.  
             Five additional sunset extension bills were introduced by the  
            Assembly, AB 177 (Bonilla), AB 178 (Bonilla), AB 179 (Assembly  
            Committee on Business and Professions), AB 180 (Assembly  
            Committee on Business and Professions), and AB 181 (Assembly  
            Committee on Business and Professions). All are pending in the  
            Senate Appropriations Committee. 
          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081














                                                                     SB 468  


                                                                    Page  8