BILL ANALYSIS Ó SB 468 Page 1 SENATE THIRD READING SB 468 (Hill) As Amended August 31, 2015 Majority vote SENATE VOTE: 28-7 ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Business & |11-3 |Bonilla, Baker, |Jones, Chang, Wilk | |Professions | |Bloom, Campos, Dodd, | | | | |Eggman, Gatto, | | | | |Holden, Mullin, Ting, | | | | |Wood | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |12-5 |Gomez, Bloom, Bonta, |Bigelow, Chang, | | | |Calderon, Nazarian, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Holden, | | | | |Quirk, Rendon, Weber, | | | | |Wood | | | | | | | | | | | | ------------------------------------------------------------------ SB 468 Page 2 SUMMARY: Subjects the Bureau of Security and Investigative Services (Bureau) to review by the appropriate committees of the Legislature as if its governing statutes were scheduled for repeal on January 1, 2020, and makes changes to the Alarm Company Act, Locksmith Act, Private Investigator Act, Private Security Services Act, Proprietary Security Services Act, and Collateral Recovery Act. Specifically, this bill: 1)Beginning July 1, 2017, requires each security guard who applies for a firearm permit to complete a psychological assessment to determine whether or not the applicant is capable of exercising appropriate judgment, restraint and self-control for the purposes of carrying and using a firearm during the course of his or her duties. Requires the Bureau to contract with a third-party vendor to administer a psychological assessment program, and requires an applicant to complete a psychological evaluation if the psychological assessment is inconclusive or determines that an applicant may not be capable of exercising appropriate judgment, restraint, and self-control, as specified. 2)Requires both a security guard and his or her employer to submit a written report to the Bureau of any incident involving the discharge of a firearm while he or she is on duty. 3)Requires the Bureau to conduct inspections of all firearms training facilities in this state to ensure compliance with applicable Bureau requirements, rules, and regulations, as specified. 4)Exempts federal qualified law enforcement officers from Bureau firearms, power to arrest, and baton training requirements, as specified. SB 468 Page 3 5)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 permit. 6)Requires alarm system agreements or renewals that contain an automatic renewal provision ("evergreen" clause) to include a separate and clear disclosure advising the consumer that the agreement he or she is entering into contains an automatic renewal provision, as specified. 7)Updates the fine and citation structure for violations of the various acts. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)Ongoing costs to the Bureau of approximately $300,000 annually (Private Security Services Fund), and 3 Personnel Year (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. SB 468 Page 4 3)Onetime costs of approximately $397,000 to add psychological testing and firearm inspection codes to the BreEZe system. The Bureau anticipates these costs to be absorbable within existing resources. 4)Unknown penalty and fine revenue gains (Private Security Services Fund). 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: Purpose. This bill is sponsored by the author. According to the Author, "This bill is necessary to extend the sunset date of the [BSIS] in order to ensure continued oversight of alarm companies and their employees, locksmiths, private investigators, private security services, proprietary security services, and repossessors." Background. 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. 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; and 6) SB 468 Page 5 Collateral Recovery Act. 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. 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). Mental Health Evaluations for Armed 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 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 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. In addition, Bureau staff checks the Bureau's application and enforcement databases for any possible prior disciplinary actions, citations issued, or investigations related to the applicant. Although it is true that the DOJ will alert the Bureau of an applicant's past restraining orders, suicide attempts, and psychiatric holds, there are some individuals that may have existing psychological and mental health issues and may not be getting the mental health resources they should be receiving. The DOJ only alerts the Bureau if there are reports filed against the applicant, but does not look into the applicant's mental health background or past history due to the Health Insurance Portability and Accountability Act and patient privacy SB 468 Page 6 issues. Part of the Bureau's process of investigation is initiated through media reports. There have been numerous reports by the Center for Investigative Reporting that have highlighted that the current process is not sufficient in addressing the mental health needs and resources that armed guards need. There are already many states that require some criteria for mental health evaluations for their armed guards. Oklahoma, New Mexico, Delaware, and Pennsylvania all require applicants applying to be a licensed armed guard to pass a mental health examination. South Carolina, Massachusetts, and Maine also require applicants to sign a form authorizing regulators to check their mental health records. 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 Bureau personal identification application form, pay the specified certification fee, and submit fingerprints. The Bureau has the authority, but is not required, to inspect the approved schools and firearm/baton training facilities. In 2012-13, the Bureau conducted 15 inspections, but due to staff and workload issues, the inspections were discontinued; however, training facilities and approved trainers are inspected in response to complaints. 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. As a result of issues that have been raised about the comprehensiveness of firearms training facilities in providing SB 468 Page 7 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 to ensure compliance with applicable Bureau requirements, rules, and regulations. Analysis Prepared by: Eunie Linden / B. & P. / (916) 319-3301 FN: 0001644