BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: SB 468 Hearing Date: April 27,
2015
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|Author: |Hill |
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|Version: |April 22, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Janelle Miyashiro |
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Subject: Bureau of Security and Investigative Services.
SUMMARY: Extends the operation of the Bureau of Security and
Investigative Services and the Alarm Company Act, Locksmith Act,
Private Investigator Act, Private Security Services Act,
Proprietary Security Services Act, and Collateral Recovery Act
until January 1, 2020. Subjects the Bureau to review by the
appropriate committees of the Legislature. Makes various
changes to provisions in the aforementioned Acts to improve the
oversight, enforcement and regulation by the Bureau of licensees
under each Act.
Existing law:
1)Establishes the Bureau of Security and Investigative Services
(Bureau) within the Department of Consumer Affairs (DCA).
(Business and Professions Code (BPC) § 6980.1)
2)Establishes the:
a) Alarm Company Act (BPC § 7590)
b) Locksmith Act (BPC § 6980)
c) Private Investigator Act (BPC § 7512)
d) Private Security Services Act (BPC § 7580)
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e) Proprietary Security Services Act (BPC § 7574)
f) Collateral Recovery Act (BPC § 7500)
3)Requires armed guards applying for a Bureau issued firearms
permit to submit a second set of fingerprints to the
Department of Justice (DOJ) to obtain a DOJ Firearm
Eligibility Determination before consideration of a firearms
permit from the Bureau. (BPC § 7583.23(c))
4)Specifies that any institution, firm, or individual seeking
the Bureau's certification as a firearms training facility
must complete an application that includes:
a) The name and location of the entity.
b) The places, days, and times the course will be offered.
c) An estimate of the minimum and maximum class size.
d) The location and description of the range facilities.
e) The names and certificate numbers of the
Bureau-certified firearms training instructors who will
teach the course. (BPC § 7585.3)
5)States that applicants that wish to obtain a firearms
qualifications card must complete a course of training in the
carrying and usage of firearms according to the standards of
the Bureau's "Firearms Training Manual", which includes:
a) Moral and legal aspects of firearms usage.
b) Firearms nomenclature and maintenance.
c) Weapon handling and shooting fundamentals.
d) Emergency procedures.
e) Prequalification range training.
f) Qualification course of fire:
i) Range safety and procedures;
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ii) Demonstration and dry firing;
iii) Practice rounds;
iv) Qualification firing. (BPC §§ 7585 and 7585.6)
6)States those institutions that do not award degrees and solely
provide educational programs for total charges of $2,500 or
less, when no part of the total charges is paid from State or
Federal student financial aid programs, are exempt from
regulation by the Bureau of Private Post-Secondary Education.
(California Education Code (CEC) § 94874)
7)Requires Private Patrol Operators to maintain an accurate and
current record of all firearms and deadly weapons in the
possession of the licensee or any employee while he or she is
on duty. (BPC § 7583.2)
8)Specifies that any person registered as a security guard or
patrol person shall deliver to the Director of the DCA a
written report describing fully the circumstances surrounding
any incident involving the discharge of any firearm in which
he or she was involved while acting within the course and
scope of his or her employment, within seven days of the
incident and requires specified information to be provided on
the form provided by the Director. (BPC § 7583.4)
9)Exempts California peace officers from Bureau firearms
training courses if he or she has successfully completed a
course of study in the use of firearms.
(BPC § 7583.22)
10)States that a Private Investigator must possess a valid
Bureau firearms qualification card on his or her person while
carrying a firearm during the course of an investigation.
(BPC § 7542)
11)States that every agreement, including but not limited to,
lease agreements, monitoring agreements, and service
agreements, as well as all labor, services, and materials to
be provided for the installation of an alarm system, must be
in writing. (BPC § 7599.54)
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This bill:
1) Extends the Bureau's operations and Alarm Company Act,
Locksmith Act, Private Investigator Act, Private Security
Services Act, Proprietary Security Services Act, and
Collateral Recovery Act until January 1, 2020.
2) Subjects the Bureau to review by the appropriate committees
of the Legislature.
3) Requires applicants applying for licensure as an armed
security guard to submit alongside his or her application, a
signed affidavit of his or her completion of a psychological
examination by a licensed psychologist.
4) Requires both a security guard and his or her employer to
submit a written report to the Director of the DCA of any
incident involving the discharge of a firearm while on he or
she is on duty.
5) Requires the Bureau to conduct inspections of all firearms
training facilities in this state to ensure compliance with
applicable Bureau requirements, rules, and regulations.
6) Exempts Federal Law Enforcement Officers from Bureau
firearms, power to arrest, and baton training requirements if
he or she has already completed a course of study for each.
7) Clarifies that private investigators who wish to carry a
concealed firearm must obtain and have on their person while
carrying out an investigation, both a Bureau issued firearms
permit as well as a Concealed Carry Weapons (CCW) permit.
8) Requires alarm companies to make a specific disclosure to
their customers regarding any evergreen clause renewals in
their contracts.
FISCAL
EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
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COMMENTS:
1.Purpose. This bill is sponsored by the Author . This bill is
one of five "sunset bills" the Author is sponsoring this
session. According to the Author, this bill is necessary to
extend the sunset date of the Bureau of Security and
Investigative Services in order to ensure continued oversight
of alarm companies and their employees, locksmiths, private
investigators, private security services, proprietary security
services, and repossessors.
California's security guard, alarm company, repossessor,
locksmith, and private investigator licensees are better
served with oversight from the Bureau, and the public is
better protected by Bureau regulation and accountability
toward these professions. If the Bureau is eliminated,
consumer safety and the greater public would be vulnerable to
more predatory companies and armed guards who would not be
held accountable with specific training requirements.
2.Oversight Hearings and Sunset Review of Licensing Boards and
Programs. In 2015, the Senate Business, Professions and
Economic Development Committee and the Assembly Business and
Professions Committee (Committees) conducted joint oversight
hearings to review 12 regulatory entities: California
Accountancy Board; California Architects Board and Landscape
Architects Committee; California State Athletic Commission;
Board of Barbering and Cosmetology; Cemetery and Funeral
Bureau; Contractors State License Board; Dental Board of
California; Board for Professional Engineers, Land Surveyors
and Geologists; Board of Registered Nursing; Bureau of
Security and Investigative Services and; Board of Vocational
Nursing and Psychiatric Technicians.
The Committees began their review of the aforementioned
licensing agencies in March and conducted two days of
hearings. This bill, and the accompanying sunset bills, are
intended to implement legislative changes as recommended by
staff of the Committee's and which are reflected in the
Background Papers prepared by Committee staff for each agency
and program reviewed by the Committees for this year.
3.Background. The private security industry in this country
dates back to the 19th century with private citizens
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performing many duties that today are associated with Federal
and state law enforcement. The growth in the number of
individuals and breadth of activities performed (such as
guarding railroad shipments, detective work to investigate
crimes, tracking down and apprehending criminals, and
providing security advice to banks) was integral in
determining that regulation of the industry was necessary.
In California, regulatory oversight of the private security
industry began in 1915 with the creation of the Detective
Licensing Board under the State Board of Prison Directors to
license and regulate private detectives. The Detective
Licensing Board was subsequently renamed the Detective
Licensing Bureau, and today its statutes are known as the
Private Investigator Act. In 1955, the Detective Licensing
Bureau became the Bureau of Private Investigators and
Adjustors that in 1970 was combined with the Collection
Agency Licensing Bureau and renamed the Bureau of Collection
and Investigative Services. As a result of legislation (AB
936, Chapter 1263, Statutes of 1993), the Bureau was formally
renamed as its current identifier, the Bureau of Security and
Investigative Services (Bureau).
The Bureau currently licenses about 380,000 companies and
employees serving in the areas of alarm services, locksmith
services, private investigation, private security,
repossession, and firearm and baton training. Based on the
past three fiscal years, the Bureau issues an average of
1,900 company licenses, 71,000 employee registrations, and
12,000 Bureau firearm permits. On average, the Bureau renews
9,500 company licenses, 105,000 employee registrations, and
11,500 Bureau firearm permits each year.
Specifically, the Bureau regulates the following Acts:
1. Alarm Company Act
2. Locksmith Act
3. Private Investigator Act
4. Private Security Services Act
5. Proprietary Security Services Act
6. Collateral Recovery Act
1.Review of the Bureau: Issues Identified and Recommended
Changes. The following are some of the major issues
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pertaining to the Bureau along with background information
concerning the particular issue. Recommendations were made by
Committee staff regarding the particular issue areas which
needed to be addressed.
a) Issue: Establishing a Sunset Date for the Bureau.
Background: Currently there is no sunset date established
for the Bureau or the six Acts which the Bureau regulates.
The 2015 Sunset Hearing was the Bureau's first Sunset
Review. The Bureau and Department appear committed to
working collaboratively with the Legislature and the
Committees to find solutions moving forward in the
regulation if this important industry and thus should have
the opportunity to address new and existing issues raised
within the Bureau as well as from the Committees.
Recommendation and Proposed Statutory Change: As a result
of the 2015 Sunset Hearing, this bill will establish a new
sunset date, thereby extending the six professional Acts
regulated by the Bureau in order to address the issues
raised within the Bureau and by the Committees.
b) Issue: Mental Health Evaluations for Armed Guards.
Background: Currently, California does not require mental
health examinations for armed guards. All applicant types,
with the exception of proprietary private security
employers, must submit their fingerprints to the Federal
Bureau of Investigation (FBI) and Department of Justice
(DOJ) for a criminal background check. Currently, the law
does not provide the Bureau with the authority to require
Proprietary Private Security Employers to be fingerprinted.
Guards who apply for a Bureau Firearm Permit must submit a
second set of fingerprints to obtain a DOJ Firearm
Eligibility Determination. The DOJ Firearm Bureau then
advises the Bureau whether the individual may possess or is
prohibited from possessing a firearm based on the
applicant's prior criminal past or history of mental
instability. Mental instability includes past restraining
orders, suicide attempts, and 5150 psychiatric holds.
In addition, Bureau staff checks the Bureau's application
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and enforcement databases for any possible prior
disciplinary actions, citations issued, or investigations
related to the applicant. The application database is
where Bureau enforcement staff would note an application
hold. However, there is no national database for
disciplinary actions for the industries under the Bureau's
purview.
Recommendation and Proposed Statutory Change: As a result
of public safety concerns on the mental stability of
individuals working as armed guards, this bill will require
applicants to submit an affidavit signed by a licensed
psychologist that states he or she has undergone a
psychiatric evaluation alongside his or her Bureau Firearm
Permit application.
c) Issue: Mandatory Reporting Requirements.
Background: The Bureau is not required by law to collect
reports of shooting incidents involving armed guards.
However, entities overseeing the actions of licensed armed
guards are required to submit these reports. There is
currently no legal basis for the Bureau to collect reports
of firearms incidents involving armed guards.
Private Patrol Operators are mandated to file an incident
report with the Bureau when a firearm is discharged by a
licensee, its qualified manager (QM), or one of its
registrants, or when an act of violence occurs involving a
licensee/QM/ registrant that requires law enforcement to
respond. Repossessor Agencies are mandated to file an
incident report with the Bureau when an act of violence
occurs involving a licensee, its QM, or one of its
registrants that requires law enforcement to respond.
The Private Security Act requires security guards and their
licensed employer (Private Patrol Operator) are to report
an incident within 7 days of the incident occurring. The
process of reporting an incident of an altercation with an
armed guard, whether involving a firearm or not, begins
with a Report of Incident Form (RIF). After an RIF is
submitted an investigation can be initiated. The Bureau
will also initiate an investigation if it receives
information regarding an incident from law enforcement, a
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complaint, or a media article. After an investigation has
been completed the Bureau can file both an administrative
action and forward the case to the local District Attorney
for potential criminal actions. If no criminal charges are
pressed, then the licensee involved in the incident is
subject to have their license revoked or suspended. If
criminal charges are pressed, the Bureau will place a hold
on the license until that license expires. The Bureau
continues to pursue administrative action against the guard
even if the convicted person is incarcerated, to revoke the
license. Administrative action by the Bureau is made
public on the Bureau's website upon the filing of an
accusation by the Attorney General's Office.
It is unknown how many incidents that meet the criteria for
reporting are not reported to the Bureau since this is a
process that depends upon self-reporting . However, if an
incident rises to the level of a licensee/QM/registrant
being arrested, the Bureau should receive a subsequent
arrest report from the DOJ. Specifically, the number of
guard shooting incidents is currently unknown because of
this self-reporting system and because the current Consumer
Affairs System (CAS) does not categorize reports based on
the type of incident. There is currently no consolidated
database at the Bureau that can supply quantifiable
information as to the incident type in which a report was
filed.
Recommendation and Proposed Statutory Change: As a result
of issues that have been raised about the effectiveness of
the self-reporting process for firearms discharge
incidents, this bill requires submission to the Director of
the DCA of a firearms incident report by both the
individual involved in the discharge incident as well as
his or her employer.
d) Issue: Firearms Training Facilities Oversight.
Background: Any institution, firm, or individual seeking
the Bureau's certification as a firearms training facility
must complete an application that includes: 1) the name and
location of the entity; 2) the places, days, and times the
course will be offered; 3) an estimate of the minimum and
maximum class size; 4) the location and description of the
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range facilities; and 5) the names and certificate numbers
of the Bureau-certified firearms training instructors who
will teach the course. In addition, each owner or
principal of the training facility business must complete a
Bureau personal identification application form, pay the
specified certification fee, and submit fingerprints.
The initial and continued education firearms training
course offered by a Bureau-certified firearms training
facility must comply with the content and format specified
in the Bureau's Firearms Training Manual. However, the
firearm training facility is not required to provide its
specific course materials to the Bureau for approval.
A Bureau-certified firearm or baton training facility, or
Bureau-approved school that provides training to private
proprietary security officers (PPSOs) or security guards
does not need to be approved by the Bureau of Private
Postsecondary Education (BPPE) in order to obtain the
Bureau's certification or approval, unless BPPE's law
requires that they be approved. The Bureau refers
institutions to BPPE to verify their exemption from BPPE's
law.
There is no statutory requirement for the Bureau to inspect
the approved schools and firearm/baton training facilities;
however, the Bureau has the discretionary authority to do
so. The Bureau carried out a firearm training facility
pilot program in Fiscal Year (FY) 2012-13 and conducted 15
inspections, but due to staff and workload issues, the
inspections were discontinued. However, the firearm/baton
training facilities and approved trainers are inspected as
part of an investigation in response to a complaint. The
Bureau has the statutory authority to suspend or revoke a
firearm/baton training school's certification for
violations of the law. Also, the Bureau has the ability to
cancel the approval of an approved trainer.
Recommendation and Proposed Statutory Change: As a result
of issues that have been raised about the comprehensiveness
of firearms training facilities in providing adequate
training to licensees who pursue a Bureau Firearm Permit,
this bill will require the Bureau to conduct inspections of
all firearms training facilities in the state of California
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to ensure compliance with applicable Bureau requirements,
rules, and regulations.
e) Issue: Training Exemptions for Federal Law Enforcement
Officers.
Background: The Private Security Services Act exempts
specified peace officers from the firearm training required
as a condition for issuance of the Bureau's Firearms
Permit. Peace officers are already required to complete
firearms training through their employing agency, hence the
exemptions from the training required for issuance of the
Bureau's Firearms Permit.
Active duty peace officers may apply to be an armed or
unarmed security guard. However, to carry a weapon as a
security guard, a peace officer must have on his/her
person, while performing the duties of a security guard,
either a written authorization from his/her primary
employer (law enforcement entity) giving the peace officer
permission to carry a weapon while performing the duties of
a security guard or the peace officer must have an exposed
firearm permit issued by the Bureau.
If the peace office is unable to obtain the written
permission from his/her primary employer (law enforcement
entity) the peace officer must apply for the firearm
permit. Most law enforcement entities will not give a
peace officer written permission on their department
letterhead to carry a weapon, off duty, while performing
the duties of a security guard. Therefore, the peace
office must usually apply for the Bureau Firearms Permit.
Specified active duty and level 1 & 2 reserve peace
officers are also exempt from having to submit fingerprints
for the security guard registration. However, a peace
officer must submit fingerprints if the officer is also
applying for the firearm permit. If the peace officer is
only applying for the security guard registration they have
the option of submitting or not submitting fingerprints.
However, if they leave their primary employment with law
enforcement (retired, quit, laid off, or fired) and have
not submitted fingerprints they must notify the Bureau that
they are no longer with law enforcement and return the
security guard registration to the Bureau within
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72 hours.
If they wished to continuing working as a security guard
they would have to reapply as a private citizen and
complete the required training along with submission of
fingerprints in order to obtain a security guard
registration. Most peace officers, who work off duty as
armed or unarmed security guards, prefer to submit
fingerprints for both the security guard and the firearm
permit. This allows a peace officer to retain the security
guard registration and exposed firearm permit after the
peace officer retires or changes employment status, and is
no longer a sworn peace officer.
California does not recognize Federal Law Enforcement
Officers as California peace officers. Therefore, any
Federal Law Enforcement Officer would not qualify for the
same exemptions mentioned above that California peace
officers would be eligible to receive. Federal Law
Enforcement Officers are also already required to complete
firearms training through their employing agency.
Recommendation and Proposed Statutory Change: As a result
of issues of redundant training requirements for Federal
Law Enforcement Officers raised by the Bureau, this bill
will exempt Federal Law Enforcement Officers from Bureau
firearms, power of arrest, and baton required training
courses if he or she has already completed a course of
study in each of these subjects. This will make
requirements and exemptions for Federal Law Enforcement
Officers consistent with requirements and exemptions for
California peace officers, whose prior training has been
determined as sufficient for licensure.
f) Issue: Concealed Carry for Private Investigators.
Background: Currently, the Business and Professions (B&P)
Code does not specifically prohibit Private Investigators
(PIs) to carry a concealed weapon while carrying out an
investigation covered by the PI Act. There is some concern
about the transmittal of information from the Bureau to
licensees that a PI with a Concealed Carry Weapon (CCW)
permit (Penal Code §§ 26150 and 26155) may not carry that
concealed weapon while carrying out an investigation
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covered by the PI Act. The ambiguity within the B&P Code
and the aforementioned information provided to licensees by
BSIS has caused confusion among PIs.
Recommendation and Proposed Statutory Change: As a result
of concerns raised by PI licensees, this bill will clarify
that PIs who wish to carry a concealed firearm may do so if
he or she possesses both a Bureau Firearm Permit and a CCW
permit while carrying out an investigation.
g) Issue: Evergreen Clause Disclosure.
Background: Currently, Alarm Companies are exempt from
specific disclosure requirements regarding automatic
renewal provisions in their contracts, known as "Evergreen
Clauses" or "Rollover Clauses". This clause in the
contract allows for automatic renewal of the monitoring
portion of the contract unless the customer cancels the
contract in writing by the date indicated in the
contractual agreement (normally 30 days before the contract
ends). This clause, however, is not always apparent to the
customer since Alarm Companies are not obligated to notify
consumers of this contractual obligation.
The Bureau has stated that it receives approximately 70
complaints per year related to Evergreen Clauses, which
comprises 40% of all alarm company complaints received.
Since these complaints involve a contractual agreement, the
Bureau states that is it frequently limited in what it can
do for the consumer.
Recommendation and Proposed Statutory Change: As a result
of an issue about consumer protection raised by the Bureau,
this bill will require alarm companies to give their
customers specific disclosure about any automatic renewal
provisions in their contracts.
2.Related Legislation This Session.
SB 465 (Hill) extends the operation of the Contractors' State
License Board until 2020 and makes various changes to the
Contractors' State License Law. ( Status: The bill will also
be considered by this Committee at today's hearing.)
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SB 466 (Hill) sunsets the Board of Registered Nursing and
makes various
Changes to the Nursing Practice Act. ( Status: The bill will
also be considered by
this Committee at today's hearing.)
SB 467 (Hill) extends the operation of the California Board
of Accountancy until 2020 and makes several changes as it
relates the DCA. ( Status: The bill will also be considered
by this Committee at today's hearing.)
SB 469 (Hill) extends the operation of the California State
Athletic Commission until 2020. Makes changes to the laws
governing the Commission's operations and the Commission's
oversight of professional and amateur boxing, professional
and amateur kickboxing, all forms and combinations of full
contact martial arts contests, including mixed martial arts
and matches or exhibitions conducted, held or given in
California. ( Status: The bill will also be considered by
this Committee at today's hearing.)
AB 177 (Bonilla) extends the operation of the Board for
Professional Engineers, Land Surveyors and Geologists and
California Architects Board and Landscape Architects
Committee until January 1, 2020. ( Status: The bill is
pending in the Assembly Committee on Business and
Professions.)
AB 178 (Bonilla) extends the operation of the Board of
Vocational Nursing and Psychiatric Technicians until January
1, 2020. ( Status: The bill is pending in the Assembly
Committee on Business and Professions.)
AB 179 (Assembly Committee on Business and Professions)
extends the operation of the Dental Board of California until
January 1, 2020. ( Status: The bill is pending in the
Assembly Committee on Business and Professions.)
AB 180 (Assembly Committee on Business and Professions)
extends the operation of the Cemetery and Funeral Bureau
until January 1, 2020. ( Status: The bill is pending in the
Assembly Committee on Business and Professions.)
AB 181 (Assembly Committee on Business and Professions)
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extends the operation of the Board of Barbering and
Cosmetology until January 1, 2020. ( Status: The bill is
pending in the Assembly Committee on Business and
Professions.)
NOTE : Double-referral to Senate Committee on Judiciary.
SUPPORT AND OPPOSITION:
Support:
None on file as of April 21, 2015.
Opposition:
None on file as of April 21, 2015.
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