BILL ANALYSIS                                                                                                                                                                                                    

                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 468 (Hill) - Bureau of Security and Investigative Services:   
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          |Version: April 22, 2015         |Policy Vote: B., P. & E.D. 8 -  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 28, 2015      |Consultant: Mark McKenzie       |
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          Summary:  SB 468 would subject the powers and duties of the  
          Bureau of Security and Investigative Services (BSIS) to sunset  
          review by the Legislature as if its governing statutes were  
          scheduled for repeal on January 1, 2020.  
          The bill would also require applicants for armed security guard  
          licensure to submit proof of a psychological examination with  
          the application for a firearms permit, require BSIS to inspect  
          all firearms training facilities, as specified, and make several  
          other changes to the laws under BSIS regulatory authority.

          Fiscal Impact (as approved on May 28, 2015):


          SB 468 (Hill)                                          Page 1 of  
           BSIS costs of approximately $300,000 annually, and 3 PY of  
            enforcement staff, to conduct compliance inspections of  
            firearms training facilities.  (Private Security Services  

           BSIS costs of approximately $131,000 annually, and 2 PY of  
            licensing staff, to process psychological examinations  
            submitted with Firearm Permit applications.  (Private Security  
            Services Fund)

           Prevents expenditures of approximately $12.1 million (mainly  
            from the Private Security Services Fund), supporting 51.4 PY,  
            and the collection of approximately $12.1 million in fee  
            revenues, beyond January 1, 2020.

           Unknown penalty and fine revenue gains (Private Security  
            Services Fund).

          Background:  Pursuant to existing law, the BSIS, within the Department of  
          Consumer Affairs (DCA), licenses and regulates approximately  
          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 BSIS issues an average of  
          1,900 company licenses, 71,000 employee registrations, and  
          12,000 Bureau firearm permits annually.  In addition, the BSIS  
          renews an average of 9,500 company licenses, 105,000 employee  
          registrations, and 11,500 Bureau firearm permits each year.  The  
          BSIS is responsible for regulating the following six areas of  
          state law: the Alarm Company Act; the Locksmith Act; the Private  
          Investigator Act; the Private Security Services Act; the  
          Proprietary Security Services Act; and the Collateral Recovery  
          Act.  The BSIS had its first sunset review hearing by the  
          Legislature in 2015, but there is no sunset date for the BSIS in  
          existing law.

          Proposed Law:  
            SB 468 would make the following changes to statutes under the  
          regulatory authority of the BSIS:
           Subject the powers and duties of the BSIS to sunset review by  
            the Legislature as if its governing statutes were scheduled  
            for repeal on January 1, 2020. 


          SB 468 (Hill)                                          Page 2 of  
           Require applicants for a BSIS firearm permit to undergo and  
            pass a psychological evaluation by a licensed psychologist  
            prior to BSIS issuing a permit.  This condition would not  
            apply to peace officers or federal law enforcement officers.
           Require a security guard employer, as well as the security  
            guard, 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.
           Require BSIS to inspect a firearms training facility within 90  
            days of issuance of a "Firearms Training Facility  
            Certificate," and require BSIS to maintain a program of random  
            and targeted inspections of training facilities to ensure  
            compliance with applicable laws.
           Exempt federal law enforcement officers from BSIS firearms,  
            power to arrest, and baton training requirements if the  
            officer has already completed an applicable course.
           Clarify that a private investigator who has a Concealed Carry  
            Weapons (CCW) permit, may carry a concealed firearm in the  
            course of his or her business as a private investigator. (The  
            individual must also carry a BSIS Firearm Permit)
           Require alarm companies to make a specific disclosure to their  
            customers regarding any evergreen clause renewals in their  

          Legislation:  This bill is one of five measures introduced this  
          session by the Senate Business, Professions, and Economic  
          Development Committee to extend the sunset on licensing boards  
          within DCA - including SB 465 (Hill), SB 466 (Hill), SB 468  
          (Hill), and SB 469 (Hill).  Five additional bills that extend  
          the sunset on DCA licensing boards and bureaus are being  
          considered by the Assembly this year.

          Comments:  In addition to subjecting the BSIS to sunset review,  
          this bill would require security guard applicants for a firearm  
          permit to pass a psychological evaluation by a licensed  
          psychologist as a condition of licensure, and require BSIS to  
          inspect licensed firearms training facilities.  BSIS receives an  
          average of 14,156 Firearm Permit applications annually, and  


          SB 468 (Hill)                                          Page 3 of  
          anticipates it would need an additional 2 PY of licensing staff,  
          at a cost of $131,000 annually, to receive, match, process, and  
          review psychological evaluations submitted with permit  
          applications.  There are currently 367 licensed firearms  
          training facilities.  Assuming BSIS staff would conduct random  
          compliance inspections on all facilities on a biennial cycle,  
          BSIS anticipates it would need an additional 3 PY of enforcement  
          staff, at an annual cost of approximately $300,000, to conduct  
          the inspections.
          Staff notes that the Private Security Services Fund and the  
          Private Investigator Fund, have revenues and expenditures that  
          are in balance, and both funds have very healthy reserves to  
          fund the additional expenditures related to this bill.  The  
          Governor's proposed 2015-16 budget assumes a $4 million loan  
          from the Private Security Services Fund to the General Fund from  
          the 2003 Budget Act will be repaid in 2015-16.  This leaves one  
          outstanding loan of $4 million from the 2011 Budget Act, which  
          is proposed for repayment in 2016-17.

          Author amendments (as adopted on May 28, 2015): Author's  
          amendments would increase fine amounts for specified infractions  
          by BSIS-licensed Repossessors, Private Investigators, Private  
          Patrol Operators, and Alarm Company Operators.

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