BILL ANALYSIS                                                                                                                                                                                                    

                                                                     SB 468

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          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

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          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  

          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  

          4)Exempts federal qualified law enforcement officers from Bureau  
            firearms, power to arrest, and baton training requirements, as  


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          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  

          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  

          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.


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          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  


          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)  


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          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  

          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  


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          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  


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          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