BILL ANALYSIS Ó SB 1196 Page 1 Date of Hearing: August 24, 2016 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Rudy Salas, Chair SB 1196(Hill) - As Amended August 19, 2016 SENATE VOTE: 38-0 SUBJECT: Professions and vocations: Bureau of Real Estate, Bureau of Real Estate Appraisers, and Bureau of Security and Investigative Services SUMMARY: Subjects the Bureau of Security and Investigative Services (BSIS) to review by the appropriate committees of the Legislature, and makes various changes to provisions in the Alarm Company Act, Locksmith Act, Private Investigator Act, Private Security Services Act, Proprietary Security Services Act, and Collateral Recovery Act to improve the oversight, enforcement and regulation by the BSIS of licensees under each Act; adds a sunset review date for the Bureau of Real Estate (CalBRE) and Bureau of Real Estate Appraisers (BREA), and makes various changes to provisions in the Real Estate Law and the Real Estate Appraisers' Licensing and Certification Law to improve the oversight, enforcement and regulation by the CalBRE and BREA, and makes other technical changes. EXISTING LAW: SB 1196 Page 2 1)Establishes the BSIS within the Department of Consumer Affairs (DCA). (Business and Professions Code (BPC) Section 6980.1) 2)Establishes the following Acts: a) Alarm Company Act (BPC Section 7590) b) Locksmith Act (BPC Section 6980) c) Private Investigator Act (BPC Section 7512) d) Private Security Services Act (BPC Section 7580) e) Proprietary Security Services Act (BPC Section 7574) f) Collateral Recovery Act (BPC Section 7500) 3)Requires applicants for a firearms permit to meet the following requirements: a) The applicant is a licensee, a qualified manager of a licensee, or a registered uniformed security guard. b) A certified firearms training instructor has certified that the applicant has successfully completed a written examination prepared by the BSIS and training course in the carrying and use of firearms approved by the Bureau. c) The applicant has filed with the BSIS a classifiable fingerprint card, a completed application for a firearms permit on a form prescribed by the Bureau, dated and signed by the applicant, certifying under penalty of perjury that the information in the application is true and correct. SB 1196 Page 3 d) The BSIS has determined, after investigation, that the carrying and use of a firearm by the applicant, in the course of his or her duties, presents no apparent threat to the public safety, or that the carrying and use of a firearm by the applicant is not in violation of the Penal Code. 4)Requires armed guards applying for a BSIS 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 Section 7583.23(c)) 5)Specifies that any institution, firm, or individual seeking the BSIS certification as a firearms training facility must complete an application that includes: the name and location of the entity; the places, days, and times the course will be offered; an estimate of the minimum and maximum class size; the location and description of the range facilities; and, the names and certificate numbers of the Bureau-certified firearms training instructors who will teach the course. (BPC Section 7585.3) 6)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 BSIS "Firearms Training Manual", which includes: the moral and legal aspects of firearms usage, firearms nomenclature and maintenance, weapon handling and shooting fundamentals, emergency procedures, and prequalification range training. Applicants are also required to take a qualification course of fire which includes: range safety and procedures, demonstration and dry firing, practice rounds, and qualification firing. (BPC Sections 7585 and 7585.6) 7)Requires Private Patrol Operators to maintain an accurate and SB 1196 Page 4 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 Section 7583.2) 8)Requires Private Patrol Operators to deliver to the director of the DCA a written report describing fully the circumstances surrounding the discharge of any firearm, or physical altercations, as specified, with a member of the public while on duty, by a licensee or any officer, partner, or employee of a licensee while acting within the course and scope of his or her employment within seven days after the incident. Authorizes the director to investigate any report to determine if any disciplinary action is necessary. (BPC Section 7583.2) 9)Specifies that any person registered as a security guard or patrol person is required to deliver to the director 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 Section 7583.4) 10)Exempts California peace officers from BSIS firearms training courses if he or she has successfully completed a course of study in the use of firearms. (BPC Section 7583.22) 11)States that a private investigator (PI) must possess a valid BSIS firearms qualification card on his or her person while carrying a firearm during the course of an investigation. (BPC Section 7542) SB 1196 Page 5 12)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 Section 7599.54) 13)Establishes the Real Estate Law, administered by the CalBRE, within the DCA, to license and regulate real estate salespersons, brokers, and mortgage loan originators. (BPC Section 10000, et seq.) 14)Provides that the Real Estate Commissioner (Commissioner) may revoke or suspend a real estate license who entered a plea of guilty or nolo contendere to, or was found guilty of, or convicted of, a felony, or a crime substantially related to the qualifications, functions, or duties of a real estate licensee, after the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal. (BPC Section 10177(b)) 15)Establishes the Real Estate Appraiser's Law, administered by the BREA within the DCA, to licenses and regulates real estate appraisers. (BPC Section 11300, et seq.) 16)Requires the Commissioner to adopt regulations governing the process and procedures for renewal of a license to include, but not be limited to, continuing education (CE) requirements, which will be reported on the basis of four-year CE cycles. (BPC Section 11360) THIS BILL: 17) Subjects the BSIS to review by the appropriate committees SB 1196 Page 6 of the Legislature by January 1, 2020. 18) Updates the fine and citation structure for violations of provisions in the Alarm Company Act, Private Investigator Act, Private Security Services Act, and Collateral Recovery Act, as specified. 19) Requires the insurer of any insurance policy secured by a licensee list the BSIS as the certificate holder for the purposes of receiving notifications related to the policy's status. 20) Requires a licensee who is a private investigator to notify the BSIS within 30 days of any change in its corporate officers, or members required to be named. 21) Provides that a licensee or qualified manager who possesses a valid firearms qualification card may carry a firearm capable of being concealed upon the person in a concealed manner if he or she complies with Penal Code Section 26150. 22) Requires that a denial of a firearms qualification card be in writing and with a description of the basis for denial, inform the applicant that a review by the Private Investigator Disciplinary Review Committee to contest the denial must be requested within 30 days following the issuance of the denial; specify that no review will be granted to an individual who is otherwise prohibited from carrying a firearm. 23) Prohibits a person required to be registered as a security guard from carrying or using a firearm unless he or she possesses a valid and current firearms permit that is associated with a valid and current security guard registration. SB 1196 Page 7 24) Requires that a security guard carry on his or her person, while on duty, a valid and current security guard registration card, or if pending receipt of the registration card after the bureau's approval, a hardcopy printout of the approved security guard registration information, as provided, and a valid picture identification. 25) Requires that a security guard carry on his or her person, while on duty either a valid and current firearms permit, or if pending receipt of the permit after the BSIS approval, a hardcopy printout of the approved firearms permit information, as provided, and a valid picture identification. 26) Requires a person registered as a patrolperson, in addition to a person who is a registered security guard, and his or her employer to deliver to the director of the BSIS, within seven days, 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 scope of his or her employment. 27) Specifies that a person entering the employ of a licensee to perform the functions of a security guard or security patrolperson is exempt from completing a course of study in the exercise of power to arrest prior to being assigned to a duty location if that person is a peace officer, as defined, and has successfully completed a course of study in the exercise of power to arrest approved by the Commission on Peace Officer Standards and Training, or is a federal qualified law enforcement officer, as defined, and has successfully completed a course of study in the exercise of power to arrest. 28) Permits a duly appointed peace officer, as defined, or a SB 1196 Page 8 federal qualified law enforcement officer, as defined, and who has written approval from his or her primary employer, to carry a firearm while working as a security guard. 29) Exempts from the requirement for a licensee, qualified manager of a licensee, or a security guard who, in the course of his or her employment, may be required to carry a firearm, prior to carrying a firearm, to complete a course of training in the carrying and use of firearms and receive a qualification card, if that person is a peace officer, as defined, or a federal qualified law enforcement officer, as defined, who has completed a course of study in the use of firearms. 30) Provides that agreements entered into on or after January 1, 2017, that include an automatic renewal provision renewing the agreement for a period of more than one month, must include a clear and distinct disclosure, as specified, separate from the terms and conditions to advise the consumer that the agreement contains the automatic renewal provision; require the consumer to acknowledge the disclosure by signing or initialing it; and, void invalidate the automatic renewal provision if it is not separately acknowledged. 31) Requires the BSIS to issue a firearms permit, beginning January 1, 2018, when specified conditions are met, including among others: a) The applicant is a licensee, qualified manager of a licensee, or a registered security guard, subject to specified provisions, and the firearms permit is associated with a security guard registration regardless of any other license possessed or associated with the firearms permit; and, b) The applicant is a registered security guard and he or SB 1196 Page 9 she has been found capable of exercising appropriate judgement, restraint, and self-control, for the purposes of carrying and using a firearm during the course of his or her duties. c) The applicant has filed with the bureau a classifiable fingerprint card, a completed application for a firearms permit, as specified. In lieu of a classifiable fingerprint card, the applicant may submit fingerprints into an electronic fingerprinting system administered by the DOJ. The terminal operator may charge a fee sufficient to reimburse it for the costs incurred in providing this service. 32) Prohibits the BSIS from issuing a firearms permit, beginning January 1, 2018, if the applicant: a) Is a registered security guard who has been found incapable, at the time of application, of exercising appropriate judgement restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties; however, specifies that an applicant who has been denied a permit for this reason may reapply for the permit after 12 months from the date of denial and that this application will be treated as an initial application; and, b) Is a qualified manager of a licensee, who within the past 12 months, has been found incapable of exercising appropriate judgement restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties, as specified. 33) Requires the BSIS to seek an emergency order against the holder of a firearms permit if, after the BSIS's investigation relating to the following events, the BSIS determines that the permit holder presents an undue hazard to the public safety that may result in substantial injury to another: SB 1196 Page 10 a) Receipt of subsequent arrest information for assault, battery, or any use of force or violence on any person committed by the permit holder; b) A report from a BSIS-approved firearms training facility or instructor; c) A report from the permit holder's employer of former employer, or a complaint filed by any member of the public, that the permit holder may be a threat to public safety; or, d) The permit holder's appropriate judgement, restraint, and self-control pursuant to the assessment required under BPC Section 7583.47. 34) Exempts from the requirement for a licensee, qualified manager of a licensee, or a security guard who wishes to carry a baton in the performance of his or her duties, to qualify to carry the weapon, if that person is a peace officer, as defined, or a federal qualified law enforcement officer, as defined, who has completed a course of study in the use of batons. 35) Permits the director of the BSIS to assess fines for specified violations, including among others, carrying or using a firearm while performing duties not related to the qualifying license or registration to which the BSIS associated the firearms permit. 36) Requires the BSIS to deny a firearms permit to any applicant, who within the past 12 months, has been found incapable of exercising appropriate judgement restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties, to the assessment required under Business and Professions Code (BPC) Section 7583.47. SB 1196 Page 11 37) Requires the BSIS to issue a firearms permit when specified conditions are met, including among others, the applicant is a licensee, qualified manager of a licensee, a designated branch office manager of a licensee, or a registered alarm agent, subject to specified provisions, including among others, that the applicant has filed with the bureau a classifiable fingerprint card, a completed application for a firearms permit, as specified. In lieu of a classifiable fingerprint card, the applicant may submit fingerprints into an electronic fingerprinting system administered by the DOJ. The terminal operator may charge a fee sufficient to reimburse it for the costs incurred in providing this service. 38) Requires that a denial of a firearms permit on the basis of the results of an assessment, required for a permit associated with a security guard registration, be in writing and with a description of the basis for denial; and, inform the applicant that he or she must request within 30 days following the issuance of the denial a hearing to contest the denial. 39) Prohibits the BSIS from issuing a firearms permit, if the applicant is a licensee, qualified manager of a licensee, a designated branch office manager of a licensee, or a registered alarm agent, who within the past 12 months, has been found incapable of exercising appropriate judgement restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties, to the assessment required under BPC Section 7583.47. 40) Exempts a duly appointed peace officer, as defined, or a federal qualified law enforcement officer, as defined, and who has met specified provisions, from the prohibition for a licensee, qualified manager, branch office manager, or alarm agent to carry, use, or possess a loaded or unloaded firearm SB 1196 Page 12 in the course and scope of his or her employment, whether or not it is serviceable or operative, unless he or she has in his or her possession a valid and current firearms qualification card. 41) Prohibits a licensee, qualified manager, branch office manager, or alarm agent to use a firearm which is in violation of law, or in knowing violation of the standards for carrying and usage of firearms, as taught in the course of training in the carrying and use of firearms, including, but not limited to, carrying or using a firearm while performing duties not related to the qualifying license, certificate, or registration to which the BSIS associated the firearms permit. 42) Provides that if a licensee fails to provide proof of the required insurance upon request by the BSIS, the license is subject to suspension and is automatically suspended until the licensee provides proof to the BSIS of compliance with the insurance coverage requirement; prior to an automatic suspension, the BSIS is required to notify the licensee in writing that he or she has 30 days to provide proof to the BSIS of having the required insurance; and, if the licensee fails to provide proof of insurance coverage within the notice period, the BSIS may automatically suspend the license. 43)Requires every agreement, beginning January 1, 2017, including but not limited to, materials to be provided for the installation of an alarm system, and any amendments to the provisions of an initial agreement, to be in writing, except as provided; require each initial agreement to contain, among other things, a disclosure that alarm company operators are licensed and regulated by the BSIS, DCA, including the BSIS's current address and contact information. 44) Adds a four year sunset review date to the CalBRE and BREA. SB 1196 Page 13 45) Permits the Commissioner to suspend the license of a real estate licensee who has entered into a guilty plea for a felony or a crime substantially related to the qualifications, functions, or duties of a real estate licensee. 46) Requires the CalBRE to notify person whose license is subject to suspension of his or her right to elect to have the issue of the suspension heard. 47) Requires that the suspension be rescinded and the license reinstated to its status prior to the suspension if the plea of guilty is withdrawn by the licensee. 48) Requires an applicant for a Real Estate Appraiser's license to complete a BREA-approved course and examination that tests the applicant's knowledge of state and federal laws relating to the practice of appraising. 49) Makes other technical changes. FISCAL EFFECT: The provisions of this bill related to the BSIS will result in the following costs: 1)Costs to conduct compliance inspections of firearms training facilities are expected to be minor and absorbable. The BSIS currently has 367 licensed firearm training facilities and assumes a 5% increase annually. 2)Costs of $40,000 in the current year, $282,000 in fiscal year 2017-18, and $225,000 in 2018-19 and ongoing to the BSIS (Private Security Services Fund), and 3.0 Personnel Years (PY) SB 1196 Page 14 of licensing staff, to develop and process psychological assessments submitted with Firearm Permit applications. The 2017-18 cost includes $100,000 in contract costs. 3)Onetime costs of approximately $397,000 to add psychological testing and firearm inspection codes to the BreEZe system. 4)Unknown penalty and fine revenue gains. 5)The Committee notes that the BSIS 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. The Committee 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. According to the August 1, 2016 Assembly Committee on Appropriations analysis, the provisions of this bill related to the CalBRE and BREA will result in the following costs: 1)Minor and absorbable costs to CalBRE to handle the additional requirements for suspended licenses. 2)Minor and absorbable costs to BREA to update the application for a real estate appraiser and the applicant's packet. SB 1196 Page 15 COMMENTS: Purpose. This bill is sponsored by the author. According to the author, "[This bill] ensures that CalBRE and BREA are reviewed by the appropriate policy committees of the Legislature in four years (2021). The bill additionally provides the Real Estate Commissioner the authority to suspend the license of a real estate licensee who has entered into a guilty plea for a felony or a crime substantially related to the qualifications, functions, or duties of a real estate license and requires an applicant for a Real Estate Appraiser's license to complete a course and examination that tests the applicant's knowledge of state and federal laws relating to the practice of appraising. The bill also includes a number of consumer protection and public safety reforms related to the operations of BSIS and ensures that BSIS is reviewed by the appropriate policy committees of the Legislature." Background. Joint Oversight Hearings and Sunset Review of the (Department of Consumer Affairs) DCA Licensing Boards. In March of 2015 and 2016, the Assembly Business and Professions Committee and the Senate Business, Professions and Economic Development Committee (Committees) conducted multiple joint oversight hearings to review regulatory boards within the DCA and one regulatory entity outside of the DCA. The sunset bills are intended to implement legislative changes recommended in the respective background reports drafted by the Committee staff for the agencies reviewed that year. The Sunset Review Process. The sunset review process provides a formal mechanism for the DCA; the Legislature; the regulatory boards, bureaus and committees; interested parties; and stakeholders to make recommendations for improvements to the authority of consumer protection boards and bureaus. This is SB 1196 Page 16 performed on a standard four-year cycle and was mandated by SB 2036 (McCorquodale), Chapter 908, Statutes of 1994. Each eligible agency is required to submit to the Committees a report covering the entire period since last reviewed that includes, among other things, the purpose and necessity of the agency and any recommendations of the agency for changes or reorganization in order to better fulfill its purpose. An eligible agency is allowed to sunset unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. With respect to the BSIS, the CalBRE and the BREA, the provisions governing these bureaus would not be repealed if the sunset date is not extended; rather, the sunset date serves to subject the bureaus to review by the appropriate policy committees on a regular basis. Background on the BSIS. The BSIS 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 BSIS 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) Collateral Recovery Act. Issuing Firearm/Baton Permits. California currently mandates applicants for a firearm or baton permit to meet specified minimum requirements, including among other things, completing a written examination, completing a training course in the use of firearms or batons, and submitting a classifiable fingerprint card to specified agencies. This bill expands on those provisions by requiring an applicant to be registered with the BSIS, and has demonstrated that he or she has been found 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. SB 1196 Page 17 Assessing Applicants for Firearm/Baton Permits. Several states may use third-party vendors to develop assessment tools in the process of issuing firearms permits. However, California currently does not have a standardized assessment. This bill requires the BSIS to implement a process to administer an assessment and to consult with subject matter experts, such as psychologists, who can assist the BSIS in establishing criteria for a contract with a vendor to administer the assessment, identify minimum standards for the assessment, and evaluate currently available assessments. Mandatory Reporting Requirements. The BSIS 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. It is unknown how many incidents that meet the criteria for reporting are not reported to the BSIS because this process depends upon self-reporting. As a result of issues that have been raised about the effectiveness of the self-reporting process for firearm discharge incidents, this bill requires a person registered as a security guard or patrolperson, and his or her employer, to submit an incident report to the director of the DCA describing fully the circumstances surrounding any incident involving the discharge of any firearm while acting within the course and scope of his or her employment. Cite and Fine Updates. The BSIS issues citations and fines as a means to encourage compliance with the laws and regulations of the six acts within its oversight authority. This bill updates the fine and citation structure for violations of provisions in the Alarm Company Act, Private Investigator Act, Private Security Services Act, and Collateral Recovery Act in order to help the BSIS better encourage compliance with existing laws and regulations. SB 1196 Page 18 Background on the CalBRE. CalBRE is the state entity currently charged with responsibility to enforce the Real Estate Law, the Subdivided Lands Act, and the Vacation Ownership and Time-share Act of 2004. In 2012, Governor Brown submitted a reorganization plan to the Legislature. As a result, on July 1, 2013, CalBRE became a bureau within the DCA, moving from the independent Department of Real Estate (DRE). AB 1317 (Frazier), Chapter 352, Statutes of 2013, enacted the statutory changes necessary to reflect the changes in law made by the Governor's Reorganization Plan No. 2, including moving the former DRE under the DCA within the Business, Consumer Services, and Housing Agency. With respect to its core functions, CalBRE currently licenses 405,985 persons in California. Last fiscal year, CalBRE issued over 25,000 new licenses and renewed over 79,000. CalBRE Licensee Suspension. Currently, CalBRE is required to wait for "the time for appeal" to elapse on a guilty plea before the plea can be used for disciplinary action. CalBRE has seen instances where major criminal cases involving real estate fraud have taken years to work their way through federal and state criminal courts. In these cases, CalBRE has seen licensees who were defendants plead guilty relatively early in the process as part of a plea bargain that furthers the prosecution of other defendants. Those guilty pleas may not result in a conviction for months, if not years, as the case against the other defendants proceeds. As presently written in statute, that guilty licensee (who has entered his or her own voluntary and knowing plea) may continue to practice real estate. The ability for the CalBRE to take swift action against a licensee and promote public health and safety appears to be limited by this section of statute. This bill provides the SB 1196 Page 19 Commissioner the authority to suspend the license of a real estate licensee who has entered into a guilty plea for a felony or a crime substantially related to the qualifications, functions, or duties of a real estate licensee. Background on the BREA. In 1989, Title XI of the federal Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) was adopted by congress mandating states to license and certify real estate appraisers who appraise property for federally related transactions. The federal law was enacted as a result of the savings and loan crisis. In response to the federal mandate, the California Legislature enacted the Real Estate Appraisers Licensing and Certification Law. The BREA, which is entirely funded by licensing fees, is a single program comprised of two core components, licensing and enforcement. The Licensing Division implements the minimum requirements for licensure, according to criteria established by the federal government and California law. The Licensing Division also registers Appraisal Management Companies (AMC) in compliance with California law. The Enforcement Division investigates the background of applicants, licensees, and AMC registrants to ensure they meet the standards for licensure. The Enforcement Division also investigates complaints of violations of California law and national appraisal standards filed against licensed appraisers and registered AMCs. Federal Oversight of the BREA. The following entities are not part of BREA, but they have influence over BREA and its operations at the federal level: 1)The Appraisal Subcommittee (ASC) was created in 1989 pursuant to Title XI of the FIRREA. The ASC's role as an independent federal institution is to generally oversee the real estate appraisal process as it relates to federally regulated SB 1196 Page 20 transactions. More specifically, the ASC reviews each state's compliance with federal requirements for licensed appraisers and AMCs and can take action in the case of non-compliance; maintains a national registry of approved appraisers; and oversees the Appraisal Foundation. 2)The Appraisal Foundation (Foundation) is a non-profit organization that works to advance professionalism for appraisers through the promulgation of standards, appraiser qualifications, and guidance regarding appraisal methods and techniques. The Appraisal Standards Board within the Foundation determines and maintains the Uniform Standards of Professional Appraisal Practice (USPAP) which all states must enforce to be compliant with federal requirements and allow state licensed appraisers to participate in federally regulated transactions. The Appraisal Qualifications Board within the Foundation establishes the minimum education and experience requirements as well as the examination requirements. The Appraisal Practices Board within the Foundation is charged with providing guidance and issuing opinions on recognized valuation methods and techniques. Licensee Education. Prior to licensure, applicants are not required take a course or pass an exam to show fluency in federal and state laws and regulations. Only upon renewal of the licensure must real estate appraisers demonstrate their knowledge of federal and state laws and regulations. Real estate appraiser licenses must be renewed every two years and all licensed appraisers must meet minimum CE requirements before renewing their license. In practical terms, this requires a renewal of the 7-hour USPAP course every two years on its own, and a full CE (56 hours) renewal every four years. CE courses or seminars must cover appraisal related topics including subjects such as land use planning, appraisal computer applications, cost estimating, and green building appraisals. SB 1196 Page 21 This bill requires an applicant for a real estate appraiser's license to complete a BREA-approved course and examination testing the applicant on federal and state laws regulating the appraisal profession. ARGUMENTS IN SUPPORT: The California Association of Licensed Security Agencies, Guards and Associates writes in support, "[This bill] makes noteworthy changes to the Private Securities Act?especially as it pertains to individuals carrying firearms as part of their duties. This new prerequisite requires applicants for a firearms qualifications card to pass a psychological assessment to determine an applicant's ability to 'exercise appropriate judgment, restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties.' This legislation adds another level of scrutiny to the licensing process which directly results in enhanced public safety for the citizens of California." ARGUMENTS IN OPPOSITION: None on file. REGISTERED SUPPORT: California Association of Licensed Security Agencies, Guards and Associates REGISTERED OPPOSITION: None on file. SB 1196 Page 22 Analysis Prepared by:Gabby Nepomuceno / B. & P. / (916) 319-3301