BILL ANALYSIS Ó
AB 759
Page 1
Date of Hearing: April 30, 2013
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Richard S. Gordon, Chair
AB 759 (Daly) - As Amended: April 18, 2013
SUBJECT : Private patrol operators.
SUMMARY : Revises all references to private patrol operators
(PPOs) in state law to instead refer to private security
contractors (PSCs), specifies what a security guard's
distinctive uniform may include, and revises the requirements
for a qualifying manager to a private security contractor.
Specifically, this bill :
1)Revises all references in code to a PPO to instead refer to a
PSC.
2)Modifies the requirements for a PSC's distinctive uniform to:
a) Authorize a uniform to include military or police
styles; and,
b) Authorize an unarmed PSC or officer, director, partner,
manager, or employee of a PSC to wear a business suit,
blazer, or polo shirt displaying a company-issued photo
identification designating the person's name, employing
company, and employee number, in lieu of complying with
existing badge and patch uniform requirements.
3)Requires a PSC's license to be posted on the Bureau of
Investigative Services' (BSIS) Web site, which shall take
effect upon posting.
4)Requires a qualifying manager for a PSC to comply with all of
the following, in addition to existing requirements:
a) Hold 2,080 hours of experience as a security guard, or
an equivalent amount of military experience;
b) Is currently registered as a security guard;
c) Hold 2,080 hours of experience as a manager of a PSC;
and,
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d) Cannot be employed as a qualified manager by more than
five corporations or other business entities at the same
time.
5)Makes a qualifying manager's examination results valid for up
to seven years after his or her license expires, unless
reauthorized by BSIS.
6)Redefines the following terms:
a) "Security officer" to include, among other things, the
terms "security guard," "patrolperson," "watchman," and
"guard"; and,
b) "Advertisement" to include, among other things, an
Internet Web site or social media.
7)Defines "social media" to mean "an electronic service or
account, or electronic content, including, but not limited to,
videos, still photographs, blogs, video blogs, podcasts,
instant and text messages, e-mail, online services or
accounts, or Internet Web site profiles or locations."
8)Makes other technical and clarifying changes.
EXISTING LAW :
1)Provides for the licensing and regulation of over 3,000 PPOs
and 280,000 security guards by the BSIS under the Department
of Consumer Affairs in administering the Private Investigator
Act and the Proprietary Security Services Act (P.S.S. Act).
(Business and Professions Code (BPC) Section 7570 et al.)
2)Prohibits a private patrol licensee or officer, director,
partner, manager, or employee of a private patrol licensee
from using or wearing a badge, except while engaged in guard
or patrol work and wearing a distinctive uniform that
includes:
a) A patch on both shoulders that reads "private security"
and includes the name of the employing private patrol
company and a badge or cloth patch on the upper left breast
of the uniform; and,
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b) All patches and badges worn on a distinctive uniform
shall be of a standard design that is BSIS-approved and
clearly visible. (BPC 7582.26)
3)Authorizes the BSIS to assess a $250 fine for each uniform
violation. (BPC 7582.26)
4)Requires an applicant, or his or her manager, for a license as
a PPO to have at least one year of experience as a
patrolperson, guard or watchman, or the equivalent thereof as
determined by BSIS. (BPC 7583.1)
5)Prohibits, except as otherwise provided by law, any person
except a member of the United States (U.S.) Army, Navy, Air
Force, or Marine Corps, to wear the uniform of, or a uniform
similar to the uniform of the U.S. Army, Navy, Air Force, or
Marine Corps. (10 United States Code Section 117)
6)Requires a qualifying manager for a PPO to demonstrate his or
her qualification by a written or oral examination, or both,
to BSIS, and make a satisfactory showing that he or she is
qualified pursuant to the P.S.S. Act. (BPC 7582.22)
7)Requires every advertisement by a PPO soliciting or
advertising business to contain his or her name, address, and
license number. Defines "advertisement" to include any
business card, stationery, brochure, flyer, circular,
newsletter, fax form, printed or published paid advertisement
in any media form, or telephone book listing. (BPC 7582.20)
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of this bill . This bill would enact multiple changes
to modernize state law relating to private patrol operators.
Those updates include clarifying what a distinctive uniform
may include, changing all code references to a PPO to instead
refer to a PSC, posting licenses on the Internet, adding the
Internet and social websites to existing advertising
requirements, and specifying eligibility requirements for the
qualifying managers of PSCs that demonstrate substantial
security guard experience in managing a PSC. This bill is
sponsored by the California Association of Licensed Security
Agencies, Guards & Associates (CALSAGA).
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2)Author's statement . According to the author, "Under current
[statute], the definition of a distinctive uniform is lacking
and poses a challenge with regards to enforcement of
provisions. Consequently, without a distinctive uniform for
PSCs, unlicensed, unregulated individuals who may not pass the
required background check, perform tasks which are
specifically assigned to licensed security [guards]. This
lack of [definition of] a distinct uniform for easy
identification of security [guards] poses a direct danger to
the public."
3)PPO eligibility . PPOs, or private patrol operator companies,
employ security guards and dispatch them to protect persons or
property from harm or theft. The PPO must be licensed by BSIS
and complete criminal background checks with the California
Department of Justice and the Federal Bureau of Investigation.
An individual who wishes to hire security guard services
cannot directly hire a security guard, but must contract with
a PPO that employs the security guard. Security guards may
carry firearms, tear gas, or batons only after completing
training and receiving the respective BSIS-issued permit.
There are over 3,000 PPOs and 280,000 security guards licensed
in California.
4)Unscrupulous activity and distinctive uniforms . The sponsors
contend that unscrupulous PPOs hire unlicensed individuals to
work at horse races, sporting events, entertainment venues and
other events to perform security guard activities like
security screenings and crowd control - but pay those
individuals less than licensed security guards. In an attempt
to circumvent existing law, the unlicensed individuals
performing security guard services will not wear the
distinctive uniform that licensed security guards are required
to wear.
For example, BSIS has cited and fined PPOs for using unlicensed
security guards who lack the badge and patch identification
requirements required of licensed security guards, but instead
intentionally wear business suits, blazers, or polo shirts to
convey a sense of authority and security to consumers. Those
PPOs then contest the fines by arguing that the unlicensed
individuals were not wearing a "distinctive uniform" and
therefore not performing security guard services.
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This unlicensed activity poses a safety issue for consumers,
since unlicensed security guards have not passed a criminal
background check and may not have training on how to address
security situations. In addition, it creates an uneven
playing field for licensed security guards who do comply with
existing laws.
This bill would clarify that distinctive uniforms may include
business suits, blazers, or polo shirts to provide BSIS with
greater enforcement power against unlicensed security guard
activity.
5)When a license becomes valid . According to the sponsor, when
BSIS issues a license, it simultaneously mails the license and
posts it online. Under current law, BSIS licenses only become
valid once an applicant physically receives his or her license
in the mail. This bill would make BSIS licenses valid once
they are posted online so that a licensee can begin working
more quickly.
6)Qualifying managers . Current law allows for an individual who
has passed a written or oral examination to become a
qualifying manager for a PPO. According to the sponsor, this
allows anyone with at least one year of security experience to
open a security company, which could potentially endanger the
public because that new operator would not have adequate
experience and sufficient knowledge to responsibly operate a
security company. Currently, qualified managers must have one
year of experience (2,000 hours) as a patrolperson, guard,
watchperson, or the equivalent. This bill increases the
minimum eligibility requirements for qualifying managers by
requiring them to hold at least 4,160 hours of combined
experience as a security guard and manager of a PSC, hold a
security guard license, and be limited in the number of
entities he or she can serve as the qualifying manager for.
In addition, this bill makes a qualified manager's licensing
examination results valid for up to seven years after the
license expires, to waive re-testing requirements for an
individual who leaves the profession but wishes to return to
the security industry as a qualified manager.
7)Updates to advertising requirements . Current law requires
every advertisement by a PPO soliciting or advertising
business to contain his or her name, address, and license
number. This bill expands the definition of an
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"advertisement" to include social media and Internet Web
sites, and requires PPOs advertising online to post their PPO
license number so that consumers can verify a PPO's license
status through BSIS's online license database.
8)Suggested committee amendments . The author may wish to
consider the following amendments to assist in the
implementation of the provisions relating to a distinctive
uniform and the issuance of new PSC licenses.
On page 17, line 27, strike "military or" and on page 17,
line 28, after "styles" insert ", in accordance with Penal
Code Section 538d."
On page 18, line 3, after "requirements." insert "The
bureau may promulgate regulations to further clarify and
define what constitutes a distinctive uniform for purposes
of this section."
9)Arguments in support . According to the sponsor, CALSAGA, "AB
759 will modernize the P.S.S. Act contained in the BPC? In
the past ten years, both contract and proprietary private
security operations have made great strides in
professionalizing the industry and raising standards at all
levels. This has resulted in current statutes having outdated
terminology and vagueness caused by lack of definitions.
Additionally, some provisions need to be added due to changes
in the industry. For example, the lack of definition in
current law for a distinctive uniform results in a challenge
in enforcing its provisions, resulting in the public being
unable to quickly identify the wearer as a licensed security
[guard].
"As a further example, the terminology in current law
[referring to a] watchmen, guard or PPO, do not adequately
represent the duties and responsibilities of these services in
today's world. The amended titles will more clearly identify
roles to the public.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Licensed Security Agencies, Guards and
Associates (sponsor)
AB 759
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Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301