BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 202| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 202 Author: Harman (R), et al Amended: 5/14/09 Vote: 21 SENATE BUSINESS, PROF. & ECON. DEV. COMM. : 10-0, 4/27/09 AYES: Negrete McLeod, Wyland, Aanestad, Corbett, Correa, Florez, Oropeza, Romero, Walters, Yee SENATE APPROPRIATIONS COMMITTEE : 13-0, 5/11/09 AYES: Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock, Leno, Oropeza, Runner, Walters, Wolk, Wyland, Yee SUBJECT : Private investigators: continuing education SOURCE : California Association of Licensed Investigators DIGEST : This bill requires licensed private investigators, as a condition of license renewal, to complete 12 hours of continuing education (CE) in privacy rights, professional ethics, recent legal developments relating to private investigators, and other subjects related to private investigators. This bill requires the private investigator to submit to the Bureau of Security and Investigative Services a sworn statement of completion of the CE, requires retention of specified CE records by providers and licensees, and requires providers to follow certain specified standards. In addition, this bill raises the license fee to $195 and the license renewal fee to CONTINUED SB 202 Page 2 $145. ANALYSIS : Existing law: 1. Provides for the licensure and regulation of private investigators (PIs) by the Bureau of Security and Investigative Services (Bureau) within the Department of Consumer Affairs (DCA). 2. Defines a "private investigator" as a person who, for any consideration, provides protective (bodyguard) services or who makes any investigation for the purpose of obtaining information regarding specified types of information including crimes, information about persons, the location of lost or stolen property, the cause or responsibility for fires or damage or injury to persons or property, securing evidence for judicial proceedings, or information regarding employees' integrity, honesty, breach of rules or other standards of job performance. 3. Requires an applicant for licensure as a PI to: A. Be 18 or older. B. Undergo a criminal history background check through the Department of Justice and the Federal Bureau of Investigation. C. Have three years (2,000 hours each year, totaling 6,000 hours) of compensated experience in investigative work or a law or police science degree plus two years (4,000 hours) of experience, or an Associate of Arts degree in police science, criminal law, or justice and two and one-half years (5,000 hours) of experience. The experience must be certified by the employer and have been received while the applicant was employed as a sworn law enforcement officer, military police officer, insurance adjuster, employee of a licensed PI or repossessor, arson investigator for a public fire suppression agency, or employed by a public defender. SB 202 Page 3 D. Pass a two-hour multiple choice examination covering laws and regulations, terminology, civil and criminal liability, evidence handling, undercover investigations and surveillance. E. Pay an application and examination fee not to exceed $50, and a license fee not to exceed $175 (currently set through regulation at the $175 statutory maximum). 4. Provides that a PI license is valid for two years and requires the licensee to pay a renewal fee of not more than $125 (currently set through regulation at the $125 statutory maximum). 5. Establishes the Private Investigator Fund (Fund), as a separate "special fund" for the receipt of all revenue generated under the PI licensing law. Requires that all money in the Fund be expended in accordance with the law by the Bureau for the purpose of carrying out the provisions of the PI licensing law when appropriated by the Legislature. 6. Provides that the Bureau shall consider requiring, and may require, an applicant for initial licensure to submit proof of satisfactory completion of a course in professional ethics, and may specify which courses and course providers satisfy the requirement. 7. Provides that if the Bureau determines that a separate professional ethics examination is necessary, the bureau shall require that current licensees take the separate professional ethics examination if appropriate. This bill: 1. Requires licensed PIs, as a condition of license renewal, beginning on or after January 1, 2013, to complete 12 hours of CE in specified subjects: two hours on privacy rights, two hours on professional ethics, two hours on recent legal developments relating to PIs, and six hours on any subject relating to PIs. 2. Requires licensees renewing their licenses during 2012 SB 202 Page 4 to complete six hours of CE in specified subjects: two hours on privacy rights, two hours on professional ethics, and two hours on recent legal developments relating to PIs. However, this bill exempts PIs who are retired peace officers, as defined by existing law, who have been retired for less than one year, and whose PI license is subject to renewal during 2012, from this CE requirement. 3. Requires a licensee to submit to DCA a signed statement with the license renewal application attesting that he/she has completed the specified CE requirements. 4. Requires a licensee to maintain copies of certificates demonstrating completion of required CE courses for five years. 5. Authorizes DCA to suspend, for 60 days, the license of a PI for failure to comply with the CE requirements, and revoke the license at that time unless the required CE is completed and documented. 6. Authorizes DCA to audit the records of any licensee to verify completion of the CE requirement. 7. Exempts from the mandatory CE requirements: A. Licensed individuals at least 70 or older who have been licensed in good standing for a minimum of 25 consecutive years. B. Inactive licensed investigators, defined as a licensee who has informed DCA that he/she will not be performing activities that require licensure, and who does not perform such activities. Permits an inactive licensed investigator to become an active licensee upon payment of the regular renewal fee and submitting to DCA a signed statement of completion of the specified 12 hours of required CE. C. Peace officers, as specified. 8. Requires DCA to develop a procedure for approving CE providers (CEPs), convene a review panel to consult with SB 202 Page 5 to assist DCA in its consideration and approval of CEPs and course content, and develop criteria for CEPs and CE courses. 9. Requires DCA to establish and charge a fee, to be paid by CEPs, in an amount not to exceed DCA's direct costs in implementing the provisions of this bill that require DCA to approve CEPs, to perform audits, and to development criteria for course providers and course content. 10.Requires CEPs to obtain DCA approval to provide required CE courses, submit a course description and curriculum vitae of course instructors for review and approval by DCA, maintain a record of course sign-in forms, sign-out forms, student enrollment, copies of certificates of completion, and course outlines for a period of five years, and agree to audits performed by DCA. 11.Authorizes the Director of DCA to revoke or deny the right of a CEP to offer the required PI CE courses for failure to comply with any of these requirements. 12.Specifies that CEPs in good standing with courses approved by the California Commission on Peace Officers Standards and Training may offer CE without approval from DCA. 13.Specifies that a renewal applicant, or an inactive licensee applying for an active license, who is required to sign a statement attesting to their compliance with the CE requirements of this bill, who knowingly signs a false statement is subject to a civil penalty of up to $10,000 and license suspension for up to one year. Any public prosecutor may bring the civil action. 14.Increases the maximum limit for initial license fees from $175 to $195 and for renewal license fees from $125 to $145. Background Currently there are over 25 classes of professions or occupations licensed by the various licensing boards and SB 202 Page 6 bureaus within DCA that are required to complete CE courses related to their profession. However, PIs currently are not required to take any CE as a condition of license renewal. Requiring mandatory CE for license renewal is justified when it is considered necessary in order to maintain a licensee's minimal satisfactory level of competence in his/her occupation. Prior legislation . This bill is a reintroduction of last year's SB 1282 (Margett) which was one of an unprecedented number of bills that were vetoed by the Governor citing the delay in passing the Budget. The bill passed the Senate with a vote of 35-3. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Development of criteria for $17 $41$154Special* CE courses/course providers $212 ongoing Increase in license and ($55) ($110) ($145)Special* license renewal fees ($179 ongoing) * Private Investigator Fund SUPPORT : (Verified 5/14/09) California Association of Licensed Investigators (source) Adelanto Committee of Los Angeles California Attorneys for Criminal Justice National Organization for Women, San Fernando Valley/Northeast Los Angeles Privacy Rights Clearinghouse OPPOSITION : (Verified 5/14/09) SB 202 Page 7 Capitol City Investigations Numerous private investigators and private investigator firms ARGUMENTS IN SUPPORT : The California Association of Licensed Investigators, Inc. (CALI) forwarded 130-plus letters from various private investigation corporations, individual licensed investigators, and lawyers expressing support of this bill. The backers argue that (1) many new laws affecting PIs have been passed, (2) there is currently no law mandating CE for PIs, and (3) PIs should be educated in the new laws. According to CALI and other supporters, there are significant legal changes which cover, among other things, the protection of sensitive personal information, prohibitions against false impersonation to obtain information, and measures to prevent identity theft. Since most PIs received their licenses prior to the passage of these new laws, CALI argues that CE is needed to make investigators aware of ongoing evolution of the law. CALI argues that CE on the law and other topics, as required by this bill, will result in better trained investigators, benefiting the public by giving it some measure of assurance that the PI knows relevant laws. ARGUMENTS IN OPPOSITION : Capitol City Investigations state their opposition to this bill due to poor economic timing, no recognition of law enforcement experience or training, there is no recognized problem being addressed, the bill might cause revenue short-falls, similar bills were vetoed in the past, and general problems in DCA. The opposition also expresses concern that there are conflict of interest issues with the sponsor of the bill. JJA:mw 5/14/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****