BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 202
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                                Kevin De Leon, Chair

                     SB 202 (Harman) - As Amended:  July 1, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            10 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          This bill requires private investigators (PIs), as a condition  
          of license renewal, to complete 12 hours of continuing education  
          (CE) in privacy rights, professional ethics, recent legal  
          developments, and other subjects related to the profession, and  
          makes other regulatory changes, as specified. Specifically, this  

          1)Requires, effective January 1, 2013, every licensed PI to  
            complete 12 hours of continuing education in order to renew  
            his or her license every two years.

          2)Requires the Department of Consumer Affairs (DCA) to develop a  
            procedure for approving continuing education providers (CEP)  
            and requires CEPs to obtain approval from DCA to provide  
            continuing education courses. 

          3)Authorizes DCA to charge a fee, not exceeding $20 per course,  
            for participating CEPs to cover the cost of implementing the  
            approval program for CEPs and the cost of auditing CEPs. 

          4)Increases the license fees charged to PIs from $175 to $195  
            for initital licensure and $124 to $145 for license renewal.

           FISCAL EFFECT  

          1)On-going costs for the DCA in excess of $200,000 per year from  
            the Private Investigator Fund for the workload associated with  
            DCA enforcing the provisions of this legislation and  
            maintaining the continuing education program.


                                                                  SB 202
                                                                  Page  2

          2)On-going revenue of approximately $180,000 per year due to the  
            increased fees contained in this legislation. 


           1)Rationale  . This legislation requires licensed investigators to  
            obtain 12 hours of CE every two years.  It would also increase  
            the biennial licensure fee by $20 to help defray the costs of  
            administering the new requirements.  The author is concerned  
            there is no current requirement for investigators to remain  
            up-to-date with current privacy laws and other professional  
            standards.  Consequently, the author asserts, many of the  
            almost 10,000 licensed investigators may not be aware of the  
            latest developments and legal requirements applicable to the  

            According to the sponsor, California Association of Licensed  
            Investigators, Inc., this bill would "benefit consumers by  
            ensuring that when they hire a California-licensed PI, the  
            person they hire will be knowledgeable in the areas of privacy  
            rights, ethics, and updates in legal and technological  
            developments.  It is important that consumers who hire  
            licensed PIs have some measure of assurance that the person  
            they engage knows the privacy laws that apply to the  
            investigation.  There are many important privacy-related laws  
            that have been enacted since the vast majority of PIs received  
            their licenses.  The privacy laws address the protection of  
            sensitive personal information, prohibitions against false  
            impersonation, and measures to prevent identity theft.   
            Neither the preparation for a state license, nor the testing  
            that is conducted for a license, address any of these laws."  

           2)Opposition  . In opposition to the legislation, Capitol City  
            Investigations argues, "The Bureau presently has authority to  
            require and test in two of the three mandated subjects  
            contained in SB 202, yet it hasn't? Data published by the  
            Bureau reflects that for the four-year period between 2005 and  
            2008, only one disciplinary citation was issued to a PI which  
            was in 2005.  Four licensed PIs have been placed on  
            disciplinary probation during this same four-year period; two  
            in 2005, one in 2006, one in 2007 and none in 2008.  If  
            there's any trend to extrapolate from these numbers, there has  
            been significant improvement among the state's 9,993 licensed  
            and professional PIs."


                                                                  SB 202
                                                                  Page  3

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)