BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 921|
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                                   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.








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          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  







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            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  







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          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.








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          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,  







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            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


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