BILL ANALYSIS
SB 208
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Date of Hearing: July 10, 2001
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Lou Correa, Chair
SB 208 (Alpert) - As Amended: July 3, 2001
SENATE VOTE : 25-1
SUBJECT : Private investigators: exemption from licensure.
SUMMARY : Exempts, under specified conditions, an independent
contractor who possesses a certificate or degree in human
resource management, and who analyses and makes recommendations
regarding workplace harassment incidents, from the Private
Investigator Act (PI Act). Specifically, this bill :
1)Exempts an individual from the PI Act who meets all of the
following:
a) Possesses a certificate in human resource management
from a California based or national association of human
resource professionals whose primary function is
professional education and issuance of certificates
evidencing competency in human resource management; or
holds a certificate/degree in human resources management
from an accredited college or university that is recognized
by the U.S. Department of Education and certifies in
writing by solemn affirmation that they have more than 1000
hours of human resource experience.
a) Has completed coursework in human resource management.
a) Is acting as an independent contractor who conducts
interviews and obtains and reviews relevant documents
relating to accusations or incidents of harassment in the
workplace solely to provide the following types of
services:
i) Recommendations for corrective action regarding
harassment in the workplace.
ii) Assessments of harassment in the workplace.
iii) Harassment prevention workshops for management and
employees.
iv) Written policies and procedures for harassment
prevention in the workplace.
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a) Has not previously been denied licensure in this state,
or any other state, and has not had his or her license
revoked by the Bureau of Security and Investigative
Services (BSIS) or a similar agency in any other state.
a) Maintains an office in the state.
1)Provides that human resource professionals shall not have
access to confidential information available to PIs solely by
virtue of their PI license.
EXISTING LAW :
1)Provides for licensure and regulation of private PIs by the
Bureau of Security and Investigative Services of the
Department of Consumer Affairs (DCA).
2)Establishes experience and related qualifying criteria to be
licensed as a PI.
3)Defines business activities of a PI for which a license is
required.
4)Specifies persons who are exempt from PI licensure
requirements. In particular, provides an exemption for
persons employed exclusively and regularly by any employer who
does not provide contract security services for other entities
or persons.
5)Provides 14 exemptions from licensing requirements, including
persons who work regularly and exclusively for one employer,
government employees, attorneys, insurance adjusters and
others in the insurance business, banks and savings and loan
associations, persons who obtain information solely from
public records and others.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill non-fiscal.
COMMENTS :
The purpose of this bill is to exempt from the PI Act human
resource professionals who are independent contractors
investigating allegations of harassment in the workplace.
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According to the author, under existing law, human resource
professionals who are employed in-house may investigate
workplace harassment incidents as part of their overall work,
which involves making recommendations for corrective action
regarding harassment, training management and employees on
harassment prevention, and preparing written policies and
procedures. However, the author states that a recent
administrative interpretation of existing law concluded that
human resource professionals who are independent contractors can
not be employed to investigate workplace harassment incidents as
part of their overall work unless they have a PI license. The
author believes this bill is necessary to allow independent
human resource professionals to conduct investigations in the
same fashion as in-house human resource professionals.
According to the author, independent contractors have conducted
such investigations dating back to the early eighties, and it is
only the recent administrative interpretation of law that is now
hindering their ability to perform the work they have
traditionally carried out.
This bill's sponsor, Professionals in Human Resources
Association (PIHRA), claims there have been no significant
problems stemming from independent human resource professionals.
PIHRA argues that employers value the services provided by
independent human resource professionals that help resolve
harassment issues and help prevent incidents of workplace
harassment. PIHRA claims that a human resource professional
investigates incidents of workplace harassment with an objective
dissimilar to that of a private investigator. The purpose is not
to piece together a case for legal proceedings, but rather to
get to the source of an incident, resolve the situation and
install provisions that will prevent further incidents from
occurring.
BSIS currently regulates approximately 9,539 licensed PI's in
the state. Among the regulated, are those who make an
investigation for the purpose of obtaining information with
reference to: the identity, habits, conduct, business
occupation, honesty, integrity, credibility, knowledge,
trustworthiness, efficiency, loyalty, activity, movement,
whereabouts, affiliations, associations, transactions, acts,
reputation, or character of any person.
A PI applicant must be able to demonstrate three years (2,000
hours each year, totaling 6,000 hours) of compensated experience
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in investigative work; or a law or police science degree plus
two years (4,000 hours) of experience; or an AA degree in police
science, criminal law, or justice plus 2 1/2 years (5,000 hours)
of experience. In addition, an applicant must undergo a
thorough background check and pass a two-hour multiple-choice
examination covering laws and regulations, terminology, civil
and criminal liability, evidence handling, undercover
investigations, and surveillance.
Last year, members of the Legislature requested DCA to review
the issue of subjecting human resource professionals to the PI
Act. DCA determined that employers often contract with
independent human resource professionals to conduct
investigations into a variety of alleged unlawful
discrimination, inappropriate workplace conduct, including
unlawful sexual harassment and employee violations of policy or
procedures. DCA ultimately concluded that under the PI Act,
independent contractors should be required to possess a valid PI
license issued by BSIS.
According to information provided by PIHRA, the Society for
Human Resource Management a national professional development
organization with over 150,000 members, issues two types of
certificates - the Professional in Human Resources Certification
and the Senior Professional in Human Resource Certification.
Both certifications are conferred after the applicant passes a
comprehensive, four-hour exam, which contains questions in all
aspects of human resources management, including workplace
investigations, staffing, recruitment, policies and procedures,
employee and labor relations, general employment practices,
compensation and benefits, and health, safety and security.
Opponents argue that this bill eliminates several statutory
protections for employees. The California Association of
Licensed Investigators (CALI), as well as individual private
investigators, claim this bill puts employee rights at risk
whether they are the person making the complaint of harassment
or the person who is the subject of the harassment complaint.
CALI believes all employees are entitled to a fair and unbiased
inquiry into allegations of misconduct conducted by a qualified
individual who is licensed by the state.
In particular, CALI argues that this bill would remove the
following statutory protections:
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1)Current law protects employees from substandard
investigations. State law requires individuals who conduct
workplace investigations to have extensive experience and
training that is directly applicable to the investigation of
harassment claims. Required training involves strategic
structuring of investigative questions, understanding of body
language as well as knowledge of objective interviewing
techniques.
2)Current law protects privacy rights of employees. State law
requires individuals who conduct workplace investigations to
maintain confidentiality of information that is obtained in an
investigation, and results of an investigation to be provided
only to their client and to courts in this state.
3)Current law protects the legal rights of employees. State law
requires individuals who conduct workplace investigations to
be educated in the rules of evidence and legal court
procedures. This education is important when investigating a
claim of sexual harassment or any workplace misconduct that
may result in legal action. Courts readily admit results of
their investigations into evidence, and the absence of bias is
critical.
4)Current law protects employees from fraudulent investigations.
State law requires individuals who conduct workplace
investigations to be subject to oversight by DCA. Private
investigators must pass a background check as well as
fingerprint checks by the Department of Justice and Federal
Bureau of Investigations. PI's cannot engage in dishonest or
fraudulent activity and they are subject to criminal
prosecution for violations.
REGISTERED SUPPORT / OPPOSITION :
Support
Professionals in Human Resources Association (PIHRA) (sponsor)
California Chamber of Commerce
California Retailers Association (CRA)
California State Council of SHRM
Humanasaurus - Human Resource Consultants
Los Angeles County District Attorney's Office
Opposition
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1st Investigative Group
21st Century Investigations
AD young Investigative Agency
AvantGuard Security Consulting
B&R Enquiries
B.P.J. Investigations
Benchmark Investigations
Bernard Georger Investigations, Inc.
Berta & Associates
Bill Thompson Investigations
Bill Thompson Investigator
Bob Peters Investigations
Boykoff Investigations
Brady Investigations
Bruce A. Haskett & Associates Investigations
Bryson Investigations
Bulldog Investigative Services
California Association of Licensed Investigators
Cannon Street
Central Point Investigations
Cheryl A. Dorsey Investigations
Chris Reynolds Investigations
Christopher Webster Investigations
Christopher Webster Investigations
Clark & Co. Investigations
Clear Perceptions
Coast Guardian Investigations, Inc.
Cody Investigative Group
Command Presence Investigation Agency
Confidential Research Company
Cordis Bilingual Services
Cynthia Erdelyi Investigations, CPI
Descreet Investigative Group
DGA Detectives
Dias Investigations
A.Donaldson Investigations
DYJ D.Y. Jones & Associates Incorporated
El Dorado Detective Agency
Eshom Investigative Services
Fountain Investigations
Frasco Investigative Services
G.A.B. Investigations
Geraldi and Asssociates Private Investigations
Ginter Investigations, Inc.
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Glickman Investigations
Goldsmith Investigations
Herrera Investigative Services, Inc.
Inquire Investigative Services
Integrated Insurance Investigations
Intelle Quest Investigations
Jean Kyles & Associates Private Investigations
JGC Investigations
jmn investigations
Joseph T. Grills, Jr. Private Investigator/Drug Policy
Consultant
JSM Enterprises
Jus' T Investigations
Kelly Investigative Agency
Klopper Investigations
Krout And Schnider, Inc.
Lassen Investigative Services
Law Offices of Charles H. Ervin
Law Offices of Roy J. Fleischer, Sr.
Magill & Associates
Marvin T. Frost Investigations
Mathis Investigations
McCormick Investigations
McReynolds & Associates Professionals Investigations
Michael J. Martin Investigations
Michael J. Martin Investigations
Paula Drake Investigations
Peace Officers Research Association of California (PORAC)
Perrin Investigative Services
Pexis Corporation Investigative Division
PI Paul Ingels Investigations
Pre-Employ.Com
Private Investigative Services
R.B. Smoke & Associates
Rancho Santa Fe Protective Services, Inc.
Rex Molitor Investigations
Richard L. Barnes & Associates
RRPI Insurance Service, Inc./Buckeye Claims Administrators
Russel L. Bush Investigations
S.C. Passanisi Investigations
San Fernando Valley Chapter National Organization for Woman
Sarkis Detective Agency
Savala & Associates
Shaw Investigations
Shoreline Investigations
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Smyth Investigation Services, Inc.
Source Investigations Group, Inc.
Source Investigative Group, Inc.
Southern California Media Guild --The Newspaper
Gild-Communication Workers of America-Local 39069
Steve J. Wachtel Private Investigator
Stewart Investigative Services, Inc.
Sunset West Investigations
T.H. Taylor & Associates Private Investigations
Tamara Thompson Investigations
The Amherst Group
The Lawrence & Eagleson Agency
Thin Blue Line Investigations
United Steelworkers of America - Local 8433
W.F. Witten & Associates Investigative Consultants
Wallace Investigative Services
Walsh & Associates International Intelligence
West Harbor Intelligence Inc.
William Investigations
William T. Doyle, Private Investigator
Individual Private Investigators
Analysis Prepared by : Chris L. Gallardo / B. & P. / (916)
319-3301