BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2011-2012 Regular Session


          AB 1720 (Torres)
          As Amended March 22, 2012
          Hearing Date: June 12, 2012
          Fiscal: No
          Urgency: No
          RD   
                    

                                        SUBJECT
                                           
                      Service of Process: Private Investigators

                                      DESCRIPTION  

          This bill would allow licensed private investigators to enter a 
          gated community for a reasonable amount of time for the sole 
          purpose of performing lawful service of process or service of 
          subpoena, as specified.  

                                      BACKGROUND  

          In 1994, AB 3307 (Takasugi, Ch. 691, Stats. 1994), added Section 
          415.21 to the Code of Civil Procedure to allow for registered 
          process servers or representatives of a county's sheriff's or 
          marshal's office to gain access to a gated community in order to 
          perform service of process, as prescribed.  That section was 
          added in response to difficulties witnessed with serving process 
          in gated communities, and was later expanded to include access 
          to perform service of subpoenas.  

          Separately, Business and Professions Code Section 22350 
          specifies circumstances under which certain persons must 
          register as process servers, but excludes several categories of 
          people from registration even though they might also perform 
          service of process, including, among others, licensed private 
          investigators or their employees.  Despite this recognition of 
          their ability to perform service of process, because they are 
          not expressly listed in Section 415.21, private investigators do 
          not retain the statutory authority to enter gated communities in 
          the same fashion as registered process servers or county 
          sheriff's and marshal's representatives.  
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          This bill would allow licensed private investigators to also 
          enter a gated community for a reasonable amount of time for the 
          sole purpose of performing lawful service of process or service 
          of subpoena, as specified.   The bill would also clarify that 
          registered process servers and county sheriff's and marshal's 
          representatives who enter to perform service of process or 
          subpoena are also entering for that sole purpose. 
                                CHANGES TO EXISTING LAW
           
           Existing law  provides in relevant part that except as otherwise 
          provided by statute, the court in which an action is pending has 
          jurisdiction over a party from the time summons is served as 
          specified.  (Code. Civ. Proc. Sec. 410.50.)

           Existing law  permits a plaintiff to have the clerk of the court 
          issue a summons for any defendant, as specified.  (Code Civ. 
          Proc. Sec. 412.10.)  Existing law provides that except as 
          otherwise required by statute, the summons shall be directed to 
          the defendant, signed by the clerk and issued under the seal of 
          the court, and it shall contain specified information, 
          including, among other things: the title of the court in which 
          the action is pending, names of the parties to the action, and 
          notice that the person has been sued, as specified. (Code Civ. 
          Proc. Sec. 412.20.)  A copy of the summons may then be served on 
          the defendant, as specified, including, among other things, that 
          it may be served by personal delivery of a copy of the summons 
          and complaint to the person to be served.  (Code Civ. Proc. Sec. 
           415.10 et seq.)

           Existing law  requires the registration of and governs specified 
          persons who qualify as process servers, as specified.  (Bus. & 
          Prof. Code Sec. 22350 et seq.)  Existing law provides that a 
          person who receives or expects specific compensation for serving 
          process more than ten times in a year must file and maintain a 
          certificate of   registration as a process server in the 
          appropriate county.  Existing law provides for specified 
          exemptions from this requirement to register as a process 
          server, including, among others, that private investigators and 
          their employees.  (Bus. & Prof. Code Sec. 22350.)  

           Existing law  provides that notwithstanding any other provision 
          of law, a person shall be granted access to a gated community 
          for a reasonable period of time for the purpose of performing 
          lawful service of process or service of a subpoena, upon 
          identifying to the guard the person or persons to be served, and 
                                                                      



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          upon displaying a current driver's license or other 
          identification, and one of the following: 
           A badge or other confirmation that the individual is acting in 
            his or her capacity as a representative of the county sheriff 
            or marshal. 
           Evidence of current registration as a process server, as 
            specified.  (Code Civ. Proc. Sec. 415.21(a).) 

           Existing law  provides that the section applies only to a gated 
          community that is staffed by a guard or other security personnel 
          assigned to control access to the community at the time service 
          of process is attempted.  (Code Civ. Proc. Sec. 415.21(b).)  

           This bill  would amend the above authority to provide that the 
          described access shall be for the sole purpose of performing 
          lawful service of process or service of subpoena, and that a 
          person may also gain such access if he or she presents in 
          addition to a driver's license or other identification, evidence 
          of licensure as a private investigator under the Business and 
          Professions Code, as specified. 
           This bill  would state the intent of the Legislature to not 
          abrogate or modify the holding of the court in Bein v. 
          Brechtel-Jochim Group, Inc. (1992) 6 Cal.App.4th 1387, relating 
          to service upon a guard in a gated community.  

                                        COMMENT
           
          1.    Stated need for the bill  

          According to the author: 

            Section �415.21] of the Code of Civil Procedure specifically 
            authorizes registered process servers �to have] access to 
            gated communities for service of process or to serve a 
            subpoena.  However, while private investigators are exempt 
            from registering as a process server and are allowed to serve 
            subpoenas and service of process, they are not specifically 
            authorized to enter gated communities.  

            Civil Procedure Code Section �415.21] inadvertently excludes 
            private investigators from the list of individuals authorized 
            to enter a community that is gated.  AB 1720 addresses this 
            oversight in current law that has caused many private 
            investigators to be turned away at gated communities by 
            diligent guards when attempting to perform a service of 
            process or serve a subpoena.  AB 1720 helps ensure that all 
                                                                      



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            individuals are duly served process or a subpoena whether they 
            live in or outside a gated community by clarifying that 
            private investigators are allowed the same access as 
            registered process servers. 

          2.    Providing reasonable access to gated communities for the 
            narrow purpose of service appears appropriate  

          This bill would allow licensed private investigators to enter 
          gated communities for the sole purpose of performing service of 
          process or subpoenas, upon meeting the section's other specified 
          requirements.  That section currently allows for registered 
          service processors and sheriff's or marshal's representatives to 
          enter gated communities for a reasonable amount of time for the 
          purpose of service of process or subpoenas, upon meeting the 
          section's specified requirements.  Section 415.21 also currently 
          provides that the authority shall only apply to a gated 
          community that is staffed at the time service of process is 
          attempted by a guard or other security personnel assigned to 
          control access to the community.  This bill would not change 
          that requirement.  

          As noted in the Background, existing law has recognized the 
          ability of private investigators to serve process, as reflected 
          in existing law Section 22350 of the Business and Professions 
          Code.  Section 22350 provides requirements for registration by 
          process servers, with specified exceptions for, among other 
          things, sheriffs, marshals, or government employees acting in 
          the course and scope of his or her employment; an attorney or 
          his or her employees when serving process related to the 
          attorney's cases; and a licensed private investigator and his or 
          her employees.  Committee staff notes that in 2005, an early 
          version of AB 496 (Aghazarian, Ch. 300, Stats. 2005) would have 
          narrowed the exceptions to the registration requirements of 
          process servers and thereby excluded private investigators from 
          serving process except in those cases in which they would be 
          providing professional services.  As reflected in both an 
          Assembly and the Senate Judiciary Committee analyses, private 
          investigators strongly opposed that earlier version of the bill, 
          arguing they have historically been allowed to serve process 
          based on the exemption of private investigators from the 
          registration requirement of Section 22350, and that their 
          licensing requirements already provider greater consumer 
          protections than process-server registration requirements.  
          Ultimately, that part of the bill was removed, and existing law 
          Section 22350 continues to provide private investigators an 
                                                                      



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          exemption from the registration requirements.  (See Asm. 
          Judiciary Com., analysis of AB 496 (2005-2006 Reg. Session),  
          April 5, 2005 analysis of bill as amended March 30, 2005; pp. 1, 
          4-5; see also Sen. Judiciary Com., analysis of AB 496 (2005-2006 
          Reg. Session), June 5, 2005, pp. 1-2, 4-5.)  

          Allowing licensed private investigators to enter gated 
          communities for the purpose of service of process or subpoenas 
          appears to be appropriate when access is limited to that sole 
          purpose.   That limited access would not only facilitate the 
          important purposes of service of process and service of a 
          subpoena, but it would reduce added costs associated with the 
          repeated efforts to gain access without that express 
          authorization, delays caused in cases by delays in service, and 
          potentially even default judgments against defendants who might 
          claim they did not appear for lack of proper service.  (See 
          Comment 3 below.)  Committee staff does note, however, that none 
          of the other categories of individuals recognized by Section 
          22350 as having the ability to serve process without registering 
          as process servers are provided the express statutory authority 
          under Section 415.21 to enter gated communities for that 
          purpose.  This bill is narrowed to the purpose of addressing 
          specific problems experienced by private investigators who 
          attempt to lawfully serve process in gated communities and are 
          prohibited from doing so or face significant delays in getting 
          that access.  Moreover, the bill narrows the authority granted 
          to all specified parties under Section 415.21 by allowing them 
          to gain entrance for the sole purpose of performing service.   

          3.    Bein v. Brechtel-Jochim Group, Inc.  

          As did the enacting legislation of Section 415.21, this bill 
          includes intent language to make clear that the provisions of 
          this bill do not abrogate or modify the holding of the court in 
          Bein v. Brechtel-Jochim Group, Inc. (1992) 6 Cal.App.4th 1387.  
          (See AB 3307 (Takasugi, Ch. 691, Stats. 1994); see also Sen. 
          Judiciary Com., analysis on AB 3307 (1993-1994 Reg. Session), 
          Aug. 16, 1994, pp. 3-4.)  

          That case involved a breach of contract claim by Bein against 
          the Brechtel-Jochim Group (and the Brechtels and Jochims 
          individually), whereupon Bein attempted to have the Jochims 
          served at their residence on three separate occasions and 
          substituted service on a woman was eventually accomplished.   
          Service upon the Brechtels also proved difficult as, at each 
          time, the process server was denied access to the gated 
                                                                      



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          community where the Brechtels lived by the guard station at the 
          community's entrance.  In that instance, the process server 
          finally resorted to substituted service upon the guard.  Copies 
          of summons and complaint were mailed thereafter to both sets of 
          individual defendants and the corporation, however, none of the 
          defendants responded and default judgment was entered against 
          them.  The defendants later contested the court's jurisdiction 
          based on lack of proper service, arguing that service upon a 
          guard at a gated community was not the same as service upon a 
          "competent member of the household or a person apparently 
          charged of the business."  The appellate court disagreed and 
          held that the guard qualified as a competent member of the 
          household and a person apparently in charge.  

          The intent language of this bill, like the enacting legislation, 
          would allow passage through gated communities in order to ensure 
          defendants receive important legal documents, and prevent 
          difficulties as described in the Bein case, but also leave the 
          guard as a qualified recipient for process under Bein. 

          4.    Opposition concerns  

          The Professional Investigators Political Action Committee 
          (PI-PAC) writes that it opposes AB 1720 because it "creates 
          landmark legislation against the private investigative industry 
          by taking away an important employer right to employ and 
          supervise employees.  AB 1720 further lacks any effective remedy 
          for non-compliance."  PI-PAC seeks an amendment to specifically 
          include employees of licensed investigators and to allow 
          substituted service of the gate guard on the first attempt if 
          ingress into a gated community is frustrated or denied.  

          As to the latter suggestion, this bill does not affect the 
          decision in Bein v. Brechtel-Jochim Group, Inc. (1992) 6 
          Cal.App.4th 1387, as described in Comment 3 above.  Thus, any 
          existing ability to serve process on a guard who presumably 
          refuses entrance is not changed by this bill.  The sponsor, the 
          California Association of Licensed Investigators (CALI), notes 
          that "�w]ith regard to concerns raised that guards may not 
          comply with the new requirement that licensed private 
          investigators be provided access for the service of process, 
          CALI believes that there will be substantial compliance if AB 
          1720 is enacted and provides clarity of this issue in law." 

          Furthermore, from a public policy standpoint, allowing an 
          investigator to use substituted service in this fashion would 
                                                                      



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          significantly reduce the likelihood that an individual would be 
          personally served. Moreover, if existing law does not otherwise 
          provide for substituted service after a single effort to legally 
          serve someone, it is not clear why the bill should do so here.  

          As to the first argument that this bill "compromises the 
          employer/employee relationship and would be the first known law 
          to prevent private investigator employers from delegating and 
          performing the duties afforded to them under the PI Act and B&P 
          Section 22350(b)(4)," Committee staff notes that the employees 
          of registered process servers are not allowed to serve process 
          in gated communities either.  Nor are other types of persons who 
          are permitted to serve process or subpoenas under the same 
          Business and Professions section, Section 22350 (for example, 
          attorneys).  CALI adds that '�t]here is no law providing 
          licensed private investigators with the right to have their 
          employees serve process."  

          Moreover, unlike their employers, employees of private 
          investigator are not themselves licensed by the Business and 
          Professions Code, which is a key consumer safeguard when 
          considering who should be allowed into an otherwise private 
          gated community for this purpose.  Ultimately, private 
          investigators may still employ and supervise their 
          employees-those employees simply will not be permitted to enter 
          into gated communities to serve process or to serve subpoenas.  

           Support  :  Executive Council of Homeowners; Professional 
          Investigators of California

          Opposition  :  Professional Investigators Political Action 
          Committee 

                                        HISTORY
           
           Source  :  California Association of Licensed Investigators 

           Related Pending Legislation  :  None Known 

           Prior Legislation  :

          AB 1742 (Committee on Judiciary, Ch. 706, Stats. 2005), allowed 
          registered process servers and sheriff's and marshal's 
          representatives to also have access to gated communities, as 
          otherwise specified, to perform service of subpoenas.

                                                                      



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          AB 496 (Aghazarian, Ch. 300, Stats. 2005) See Comment 2.

          AB 3307 (Takasugi, Ch. 691, Stats. 1994) See Background and 
          Comment 3. 

           Prior Vote  :

          Assembly Floor (Ayes 68, Noes 0)
          Assembly Judiciary Committee (Ayes 8, Noes 0)

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