BILL ANALYSIS
SB 202
Page 1
SENATE THIRD READING
SB 202 (Harman)
As Amended July 1, 2009
Majority vote
SENATE VOTE :33-0
BUSINESS & PROFESSIONS 10-0 APPROPRIATIONS 16-1
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|Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Conway, Ammiano, |
| |Conway, Eng | | |
| |Hernandez, Nava, Niello, | |Charles Calderon, Coto, |
| |John A. Perez. Ruskin, | |Davis, |
| |Smyth | |Fuentes, Hall, Harkey, |
| | | |Nielsen, |
| | | |John A. Perez, Skinner, |
| | | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Hill |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Miller |
| | | | |
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SUMMARY : Requires private investigators (PIs), as a condition
of license renewal, to complete 12 hours of continuing education
(CE) in privacy rights, professional ethics, recent legal
developments, and other subjects related to the profession, and
makes other regulatory changes, as specified. Specifically,
this bill :
1)Requires licensed PIs, beginning January 1, 2013, as a
condition of license renewal, to complete 12 hours of CE as
follows: two hours in the subject of privacy rights, two
hours in the subject of professional ethics, two hours on the
subject of recent legal developments relating to PIs, and six
hours on any subject relating to PIs.
2)Requires licensed PIs whose license is subject to renewal
between January 1, 2012, and January 1, 2013, to complete six
hours of CE, as approved by DCA, in order to renew his or her
license, and of these, two hours shall be on the subject of
privacy rights, two hours shall be on the subject of
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professional ethics, and two hours shall be on the subject of
recent legal developments relating to private investigators.
3)Exempts a licensed PI who is a retired peace officer for less
than a year from CE requirements.
4)Requires a licensed PI who is a retired peace officer for more
than a year to complete six hours of CE, as approved by DCA,
in order to renew his or her license, and of these, two hours
shall be on the subject of privacy rights, two hours shall be
on the subject of professional ethics, and two hours shall be
on the subject of recent legal developments relating to
private investigators.
5)Requires a licensee to submit to the Department of Consumer
Affairs (DCA) a signed statement attesting that the licensee
has completed the specified CE requirements with a license
renewal application.
6)Requires a licensee to maintain copies of certificates
demonstrating completion of the required CE courses for five
years.
7)Authorizes DCA to suspend (up to 60 days) or revoke the
license of a PI for his/her failure to comply with the CE
requirements. The DCA shall have the right to audit the
records of any licensee to verify completion of the CE
requirement.
8)Exempts from the mandatory CE requirements:
a) Licensed individuals at least 70 years old whose license
has been in good standing for a minimum of 25 consecutive
years; and,
b) Inactive licensed investigators.
9)Defines an "inactive licensed investigator" as an individual
who is licensed and has informed DCA that he/she will not be
performing activities that require licensure, and does not
perform such activities.
10)Allows an inactive licensed PI to become active upon
submitting to the DCA a signed statement that he/she has
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completed the specified CE requirements and paying a renewal
fee.
11)Requires DCA to develop a procedure for approving continuing
education providers (CEPs), convene a review panel to consult
with DCA in its consideration and approval of CEPs and course
content, and develop criteria for CEPs and CE courses. The
review panel shall include private PIs, representatives of
CEPS and professional associations of licensed PIs.
12)Requires CEPs to obtain DCA approval to provide required CE
courses.
13)CEPs shall:
a) Obtain approval from DCA prior to offering a CE course
to licensed PIs;
b) Submit to DCA a course description, certificate, and
curriculum vitae of course instructors for review and
approval;
c) Maintain a record of course sign-in forms, sign-out
forms, student enrollment, copies of certificates of
completion, and course outlines for a period of five years;
and,
d) Agree to audits performed by DCA.
14)Authorizes DCA to revoke or deny the right of a CEP to offer
the required PI CE courses for failure to comply with any of
these requirements.
15)Authorizes CEPs approved by and in good standing with the
State Bar to provide mandatory continuing legal education, to
offer CE to licensed PIs without approval from DCA.
16)Authorizes CEPs approved by and in good standing with the
Commission on Peace Officer Standards and Training, to offer
CE to licensed PIs without approval from DCA.
17)Requires DCA to establish and charge CEPs a fee, not to
exceed $20 per course, to cover DCA's direct costs in
implementing PI CE requirements and developing criteria for
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CEPs and course content.
18)Specifies that any applicant who knowingly signs a false
statement asserting completion of CE requirements is subject
to a civil action punishable by a fine up to $10,000. In
addition, DCA may suspend the PI's license for up to a year,
and revoke the license if the CE requirements remain unmet.
Any public prosecutor may bring the civil action. Requires
DCA to advise the applicants of this penalty in the
application documents.
19)Increases the maximum amounts charged for an initial PI
license from $175 to $195 and for a PI renewal license from
$125 to $145.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, on-going revenue of approximately $180,000
per year due to the increased fees contained in this
legislation. On-going special fund costs to the DCA in excess
of $200,000 per year from the Private Investigator Fund for the
workload associated with DCA enforcing the provisions of this
legislation and maintaining the continuing education program
COMMENTS : According to the author's office, "SB 202 would
require licensed investigators to obtain 12 hours of CE every
two years. SB 202 would also increase the biennial licensure
fee by $20, an amount necessary to generate $220,000 annually to
completely cover the costs of administering the new
requirements. Even though California PIs are licensed and
regulated by the state DCA Bureau, there is no current
requirement providing the opportunity for investigators to learn
of newly-enacted laws, nor is there a compendium of applicable
laws for investigators to educate themselves. Consequently,
many of the almost 10,000 licensed investigators may not be
aware of the latest developments and legal requirements
applicable to the industry."
Currently, PIs are not required to take any CE as a condition
for license renewal, but can elect to take voluntary CE courses
offered by associations, businesses, and institutions.
Requiring mandatory CE as a condition for license renewal is
justified when it is considered necessary in order to maintain a
licensee's minimal satisfactory level of competence in his or
her occupation.
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According to the sponsor, the Bureau has the regulatory and
enforcement authority provided to it by the Private
Investigators Act (Act) in the California Business and
Professions Code (BPC). While many enacted laws relating to
privacy protection are contained in other codes, including the
Civil Code, the Bureau's authority does not extend to those
laws. The passage of recent legislation to protect personal
information, such as restrictions on false impersonation,
disclosure of medical records, and disclosure of financial
information, are located in codes outside the Act and BPC. The
sponsors claim that the personal privacy laws described are
general laws, making it difficult for PIs to track and keep up
with new regulations because they are found outside of the Act
and BPC. Therefore, consumer complaints concerning an alleged
violation of those laws is neither monitored nor enforced by the
Bureau. Instead, such concerns would be referred to the
appropriate regulatory authority, such as the California Office
of Information Security and Privacy Protection.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301
FN: 0002593