BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 921| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 921 Author: Jones (R) Amended: 9/4/15 in Senate Vote: 21 SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 6/22/15 AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 7/13/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 78-0, 5/14/15 (Consent) - See last page for vote SUBJECT: Private investigators: Disciplinary Review Committee: licensure SOURCE: California Association of Licensed Investigators DIGEST: This bill establishes a Private Investigator Disciplinary Review Committee within the Bureau of Security and Investigative Services, authorizes an applicant applying for an original license or renewal of a license as a private investigator to put his or her email address on the application, and authorizes a private investigator qualified manager to certify the work experience of an applicant for a private investigator license. Senate Floor Amendments of 9/4/15 clarify that the Disciplinary Review Committee (DRC) functions as an "opt-in" process for the review of appeals that have been brought to the committee. AB 921 Page 2 Senate Floor Amendments of 8/27/15 clarify that a qualified manager (QM) who manages an applicant for a Private Investigator (PI) license and who is authorized to verify the required hours of work experience for that applicant, must have also directly overseen the work and experience of that applicant. Senate Floor Amendments of 8/20/15 authorize a QM to certify the work experience of an applicant for a PI license. The amendments also authorize an applicant applying for a PI license to use experience hours completed under or managed by a QM. ANALYSIS: Existing law: 1)Defines a "private investigator" as a person, firm, company, association, partnership, or corporation, other than an insurance adjuster, who engages in business to protect persons or makes investigations for the purpose of obtaining information with reference to crime or wrong-doings against the United States of America, the identity or character of any person, the cause or responsibility for fires, libels, or injury to persons or property, the location or recovery of lost or stolen property, and the securing of evidence to be used in court or investigating committee. (BPC § 7521) 2)Requires that applicants for a PI license complete 2,000 hours of actual compensated work. (BPC § 7541) 3)Authorizes an employer to certify an applicant's completion of work experience hours required for licensure. (BPC § 7541) 4)States that a QM shares in the responsibility and any liability for conduct of the business of the licensee and the actions of the employees and other personnel of the licensee. (BPC § 7536) This bill: 1)Establishes a DRC within the Bureau of Security and AB 921 Page 3 Investigative Services (Bureau) to review a request from a licensee to contest an administrative fine or appeal the denial of a license. a) The members of the DRC will consist of five members appointed by the Governor: three members actively engaged in the business of licensed private investigation and two public members. Each member of the DRC will be appointed for a term of four years. b) Requires a licensee or applicant for a license, to request review by written notice to the DRC within 30 days of the issuance of a citation and requires the DRC to notify the appellant within 30 days of the review of the DRC's decision. c) Requires the DRC to meet every 60 days or as frequently required and authorizes members of the DRC to be paid per diem and reimbursed for actual travel expenses. d) This DRC will become operative on July 1, 2017. 2)Authorizes an applicant applying for licensure or renewal as a PI to put his or her email address on the application at his or her discretion. 3)Authorizes a QM who manages and directly oversees an applicant for a PI license to verify the required hours of work experience of that applicant. 4)Clarifies that the DRC functions as an "opt-in" process for the review of appeals that have been brought to the committee. Background DRCs. In the Bureau's March sunset report, it noted, "To maximize the efficiency of its disciplinary activities, the Bureau ensures that those licensees eligible to have their appeals heard by an established DRC are properly notified of this option in a timely manner. Each year, approximately 900 Bureau licensees request an appeal of their denials, suspensions, or imposition of fines through DRCs." Currently, there are two established DRCs in the Private AB 921 Page 4 Security Act and one DRC established in the Alarm Company Act. This bill will establish a DRC in the Private Investigator Act. Email Addresses. The current application for a new or renewed PI license does not allow for the addition of an email address, as there is no space for an applicant to fill one in. As email has become an almost primary means of communication, the industry feels that this should be reflected in an update to the license application. This bill will allow an applicant for a new or renewed PI license to use a business email address on his or her application at his or her discretion. Experience Hours Verification. Under current law, only an employer of an applicant for a PI license is authorized to verify that the applicant has completed all 2,000 required work experience hours. However, it is common practice in the industry for an applicant to work under a QM as a private contractor. A QM managing and overseeing the activities of an applicant would not be considered an employer. Therefore, an applicant's accumulated experience hours would not count toward the 2,000 required work experience hours. This bill will clarify that a QM who manages and directly oversees an applicant for a PI license is authorized to verify the required hours of work experience for that applicant. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: Estimated costs to the Bureau of approximately $14,000 annually to hold four DRC hearings from the Private Investigator Fund. Staff costs to the Bureau of approximately $33,000 annually for 0.5 PY of administrative workload associated with DRC activities from the Private Investigator Fund. Minor and absorbable costs to make necessary information technology changes to the BreEZe system from the Private Investigator Fund. AB 921 Page 5 SUPPORT: (Verified9/4/15) California Association of Licensed Investigators (source) OPPOSITION: (Verified9/4/15) None received ARGUMENTS IN SUPPORT: Writing in support of the bill, the California Association of Licensed Investigators states, "AB 921 would amend the Private Investigator Act in the Business and Professions Code to require the establishment of a disciplinary review committee? This option could save the licensee time as the matter could be resolved more quickly. A licensee who disagrees with a DRC decision would be able to return to the current process?In addition, AB 921 would amend Section 7525.1? This provision has not been revised to allow for an email address be provided. It is in the best interest of the consumer that an applicant for an original or renewed licensed private investigator license provides the state with a business email address." ASSEMBLY FLOOR: 78-0, 5/14/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, AB 921 Page 6 Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Linder, Medina Prepared by:Janelle Miyashiro / B., P. & E.D. / (916) 651-4104 9/8/15 14:42:00 **** END ****