BILL ANALYSIS Ó
SB 468
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 468
(Hill) - As Amended July 14, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill subjects the powers and duties of the Bureau
of Security and Investigative Services (Bureau) to sunset review
by the Legislature as if its governing statutes were scheduled
for repeal on January 1, 2020.
The bill also requires applicants for armed security guard
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licensure to submit proof of a psychological examination with
the application for a firearms permit, requires the Bureau to
inspect all firearms training facilities, and makes several
other changes to the laws under the Bureau's regulatory
authority.
FISCAL EFFECT:
1)Ongoing costs to the Bureau of approximately $300,000 annually
(Private Security Services Fund), and 3 PY of enforcement
staff, to conduct compliance inspections of firearms training
facilities. The Bureau currently has 367 licensed firearm
training facilities and assumes a 5% increase annually.
2)Ongoing costs to the Bureau of approximately $354,000 annually
(Private Security Services Fund), and 3.6 PY of licensing
staff, to process psychological examinations submitted with
Firearm Permit applications. The Bureau receives an average of
25,734 new and renewal applications each year and estimates
each evaluation will take about 15 minutes to review.
3)Onetime costs of approximately $397,000 to add psychological
testing and firearm inspection codes to the BreEZ system. The
Bureau anticipates these costs to be absorbable within
existing resources.
4)Unknown penalty and fine revenue gains (Private Security
Services Fund).
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5)Staff notes that the Bureau has projected expenditures of
approximately $12.1 million (mainly from the Private Security
Services Fund) annually, supporting 51.4 PY. This is offset
by the collection of approximately $12.1 million in fee
revenues. Staff also notes that the Private Security Services
Fund and the Private Investigator Fund have revenues and
expenditures that are in balance, and both funds have healthy
reserves to fund the additional expenditures related to this
bill.
COMMENTS:
1)Purpose. This bill is one of several sunset review bills
introduced this year intended to provide continued oversight
and accountability to the many boards and bureaus under the
Department of Consumer Affairs (DCA). The bill codifies a
sunset date for the Bureau for the first time and addresses
several issues that arose during the sunset review process,
primarily concerning armed security guards.
According to the Author, "This bill is necessary to ensure
continued oversight of alarm companies and their employees,
locksmiths, private investigators, private security services,
proprietary security services, and repossessors."
2)Background. Under existing law, the Bureau, within DCA,
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
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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.
The Bureau is responsible for regulating six Acts under state
law, including 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 Bureau had its first sunset review hearing
by the Legislature in 2015, but there is no sunset date of the
Bureau in existing law.
This bill subjects the Bureau to further review by January 1,
2020, as well as addresses several concerns raised during this
year's review process.
3)Armed Security Guards. 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 and Department of Justice (DOJ) for a
criminal background check.
Guards who apply for a Bureau Firearm Permit must submit a
second set of fingerprints to obtain a DOJ Firearm Eligibility
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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.
As a result of concerns raised during the sunset review
process, 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.
4)Firearms Training Facilities Oversight. Any institution,
firm, or individual seeking the Bureau's certification as a
firearms training facility must complete a detailed
application. In addition, each owner or principal of the
training facility business must complete a 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, but the firearm training facility is
not required to provide its specific course materials to the
Bureau for approval.
The Bureau has the authority, but is not required, to inspect
the approved schools and firearm/baton training facilities.
The Bureau conducted 15 inspections in 2012-13, but currently
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only conduct an inpsection in response to a complaint. The
Bureau has the statutory authority to suspend or revoke a
firearm/baton training school's certification, as well as to
cancel the approval of an approved trainer for violations of
the law.
As a result of issues raised during the sunset review process
regarding adequate training for licensees pursuing a Bureau
Firearm Permit, this bill will require the Bureau to conduct
inspections of all firearms training facilities to ensure
compliance with applicable Bureau requirements, rules, and
regulations.
5)Related Legislation.
a) SB 177 (Wiekowski), on the governor's Desk, extends the
authorization of Bureau to issue an alarm company operator
license to a limited liability company (LLC) until January
1, 2019.
b) AB 281 (Gallagher), pending in the Senate Appropriations
Committee, establishes a Collateral Recovery Disciplinary
Review Committee within the Bureau; authorizes licensed
repossessors to display a printout of their registration or
a screenshot of their registration from Bureau's website;
and makes other clarifying changes.
c) AB 921 (Jones), pending on the Senate Floor, establishes
a Private Investigator Disciplinary Review Committee within
Bureau and authorizes an applicant for an original license,
or renewal of a license as a private investigator, to put
his or her email address on the application at his or her
discretion.
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d) AB 1042 (Cooper), pending in the Senate Appropriations
Committee, expands the definition of a proprietary private
security officer (PSO) and includes examples of a PSO's
duties that are likely to involve interacting with the
public.
e) AB 1097 (Holden), pending on the Senate Floor,
authorizes alarm companies to distribute contracts to
customers by electronic means, as specified.
1)Sunset Review Legislation. This bill is one of five Senate
measures introduced this session to extend the sunset on
licensing boards within DCA - including SB 465 (Hill), pending
in the Business and Professions Committee, and SB 466 (Hill),
SB 467 (Hill), and SB 469 (Hill), pending with this Committee.
Five additional sunset extension bills were introduced by the
Assembly, AB 177 (Bonilla), AB 178 (Bonilla), AB 179 (Assembly
Committee on Business and Professions), AB 180 (Assembly
Committee on Business and Professions), and AB 181 (Assembly
Committee on Business and Professions). All are pending in the
Senate Appropriations Committee.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081
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