BILL ANALYSIS Ó AB 1042 Page 1 Date of Hearing: May 5, 2015 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Susan Bonilla, Chair AB 1042 (Cooper) - As Amended April 20, 2015 SUBJECT: Proprietary security services. SUMMARY: Expands the definition of a proprietary private security officer to include a person who may wear distinct clothing identifying himself or herself as "security," or who may interact with the public, as specified. EXISTING LAW: 1)Establishes the Proprietary Security Services Act (Act) and requires the Bureau of Security and Investigative Services (BSIS), within the Department of Consumer Affairs (DCA), to license and regulate proprietary private security employers (PPSEs) and proprietary private security officers (PPSOs). (Business and Professions Code (BPC) Section 7574 et seq.) 2)Defines a PPSE as, "a person who has one or more employees who provide security services for the employer and only for the employer. A person who employs proprietary private security officers pursuant to this chapter at more than one location shall be considered a single employer." (BPC Section 7574.01(e)) AB 1042 Page 2 3)Defines a PPSO as, "an unarmed individual who is employed exclusively by any one employer whose primary duty is to provide security services for his or her employer, whose services are not contracted to any other entity or person, and who is not exempt pursuant to Section 7582.2, and who meets both of the following criteria: a) Is required to wear a distinctive uniform clearly identifying the individual as a security officer; and, b) Is likely to interact with the public while performing his or her duties." (BPC Section 7574.01(f)) THIS BILL: 4) Defines a proprietary security guard as someone who meets either of the following criteria: a) He or she may wear a distinctive uniform or marked shirt or jacket clearly identifying the individual as a security officer; or, b) He or she may interact with the public while performing his or her duties, including controlling access to employer sites or facilities through the admittance process, assisting visitors with a legitimate need to enter the facility, screening visitors and employees to expedite their admittance to the site or facility, escorting visitors in a facility, acting to prevent unapproved or unlawful entry, directing persons causing a disturbance to leave the facility, ensuring that persons removing property from the facility are acting within appropriate policy requirements, observing and reporting incidents or suspicious activity to management and to public safety authorities as appropriate, and responding to or reporting incidents of fire, medical emergency, hazardous materials, and other incidents or conditions following procedures AB 1042 Page 3 established by the employer. FISCAL EFFECT: None. This bill is keyed nonfiscal by the Legislative Counsel. COMMENTS: Purpose. This bill is sponsored by the California Association of Licensed Security Agencies, Guards and Associates. According to the author, "AB 1042 updates the definition of a Proprietary Private Security Officer to ensure individuals providing security services are subject to a background check and receive appropriate training." Background. There are two different categories of security guards regulated by the BSIS: 1) those who work in-house for a specific employer, PPSOs, and 2) those who are employed by a contract security firm to provide security services for a third party, security guards. A security guard protects persons or property and prevents theft on premised owned or controlled by the customer of the private patrol operator, the contract security firm, or by the guard's employer or in the company of persons being protected. Security guards must be at least 18 years old, undergo a criminal history background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), and complete a 40-hour course of required training. The training and exam may be administered by any private patrol operator or by a certified training facility. A PPSO, on the other hand, is someone who is unarmed, employed only by a single employer, and whose primary duty is to AB 1042 Page 4 provide security services for his or her employer, a PPSE. A PPSO must also meet the following criteria: 1) he or she must wear a distinctive uniform clearly identifying the individual as a security officer, and 2) he or she must be likely to interact with the public while performing his or her duties. Similar to security guards, applicants for PPSO registration must be at least 18 years old and undergo a criminal history background check through the DOJ and the FBI. Once registered, PPSOs are required to carry a valid and current PPSO registration card, or a hard copy printout of the BSIS's approval. PPSOs are also required to complete 16 hours of training in security officer skills within six months from the date upon which registration is issued, or within six months of his or her employment with a PPSE. A PPSE is required to annually provide each employee with specifically dedicated review or practice of security officer skills, as specified, and to maintain records verifying completion of the review or practice training, and records of employment for PPSOs. PPSEs are prohibited from subletting PPSOs to another person, business, or entity. Persons exempt from registration requirements as a PPSO or a PPSE include an officer or employee of the US, or of this state or a political subdivision of the state; a charitable philanthropic nonprofit society or association incorporated under the laws of the state; patrol special police officers; and a peace officer or retired peace officer, as specified. According to the 2014 BSIS Sunset Review Report, in fiscal year 2013/14, there were roughly 594 PPSEs, and 6,201 PPSOs. Need for the Bill. According to the author, the current definition of PPSO is too narrow and should include persons not wearing a uniform, but who act primarily in a security capacity, such as a bouncer at a bar or restaurant. For example, a San Diego affiliate of NBC News reported on AB 1042 Page 5 February 10, 2015, that there was an "underground industry" of unlicensed, untrained security guards and bouncers in San Diego County, and that many of the security officers were not licensed properly. According to a DCA spokesman quoted in the story, "?for proprietary security guards, the ones that work for restaurants and bars and those sorts of things, unlicensed activity can be a vexing problem because not every bar that springs up is aware of the licensing requirement?It's not so much underground as they are unaware." The DCA spokesman also noted another issue relating to these unlicensed security personnel, which is that the security officer only needs to be licensed if the employee is wearing clothing that identified him or her as security; if the person is not wearing a uniform, but performing the same duties, no license is required. As a result, those individuals would not be required to register with the BSIS, have a background check, or meet any training requirements. Current Related Legislation. SB 468 (Hill), of the current legislative session, would extend the operation of the BSIS and the Alarm Company Act, Locksmith Act, Private Investigator Act, Private Security Services Act, Proprietary Security Services Act, and Collateral Recovery Act until January 1, 2020; subject the Bureau to review by the appropriate committees of the Legislature; and make various changes to provisions in the aforementioned Acts to improve the oversight, enforcement and regulation by the Bureau of licensees under each Act. STATUS: This bill is in the Senate Appropriations Committee. Prior Related Legislation. SB 741 (Maldonado), Chapter 361, Statutes of 2009, revised and recasted the existing regulation of proprietary private security officers to require both proprietary private security officers and proprietary private security employers, as defined, to register with the Bureau of AB 1042 Page 6 Security and Investigative Services, and establishes training and enforcement provisions. SB 666 (Maldonado), Chapter 721, Statutes of 2007, required PPSOs to complete security officer skills training as they begin employment and to undergo an annual review of this training. SB 666 also required the Bureau to establish a training curriculum by regulation, with the assistance of an advisory committee. SB 194 (Maldonado), Chapter 655, Statutes of 2005, enacted the Act and required a PPSO as defined, to meet specified requirements and register with the DCA. ARGUMENTS IN SUPPORT: The California Association of Licensed Security Agencies, Guards and Associates (CALSAGA), writes in support: "With a strong commitment from the Legislature over the past few years, California has made advances in professionalizing private security by mandating DOJ and FBI background checks prior to security officers going to work, dramatically increasing the training requirement for these officers, and requiring private and proprietary security employers to register with the State. Current law defines a 'proprietary private security officer' as an unarmed individual who, among other qualifications, meets 2 specific criteria of being required to: 1) Wear a distinctive uniform clearly identifying him or her as a security guard and 2) Being likely to interact with the public while performing his or her duties. This bill would expand the definition of proprietary private security officer by instead requiring only one of the 2 specific criteria to be met. The change in definition would insure that certain individuals that are hired to interact with the public while performing his or her duties are property trained and certified to perform those duties.' AB 1042 Page 7 We believe these changes continue the outstanding and nationally recognized security guard industry in California by adding greater public and consumer protection and assisting our state regulatory agency, the [BSIS] in their effort to curb unlicensed activity. In furthering these goals, [this bill] would provide greater consumer protection by ensuring that certain duties, which at times may involve dangerous situations, are carried out by licensed and certified professionals." ARGUMENTS IN OPPOSITION: None on file. AMENDMENTS: This bill seeks to close a loophole, and promote training and background checks for persons performing security functions by no longer requiring PPSOs to wear a uniform to fall under the BSIS's jurisdiction, and instead defining a PPSO as someone who either 1) may wear a distinctive uniform or marked shirt or jacket identifying the individual as security, or 2) may interact with the public while performing his or her duties, including "controlling access to employer sites or facilities through the admittance process, assisting visitors with a legitimate need to enter the facility, screening visitors and employees to expedite their admittance to the site or facility, escorting visitors in a facility, acting to prevent unapproved or unlawful entry, directing persons causing a disturbance to leave the facility, ensuring that persons removing property from the facility are acting within appropriate policy requirements, observing and reporting incidents or suspicious activity to management and to public safety authorities as appropriate, and responding to or reporting incidents of fire, medical emergency, AB 1042 Page 8 hazardous materials, and other incidents or conditions following procedures established by the employer." While the prior definition may have been too narrow, the proposed definition might be too broad. As a result, the author should consider amending paragraphs (1) and (2) of subdivision (f) of Section 7574.01 as follows: (1)He or she mayIs required to wear a distinctive uniform or marked shirt or jacket clearly identifying the individual as a security officer. (2)He or she mayIs likely to interact with the public whileperforming his or her duties. duties,providing security services, which may include:including controlling access to employer sites or facilities through the admittance process, assisting visitors with a legitimate need to enter the facility, screening visitors and employees to expedite their admittance to the site or facility, escorting visitors in a facility,acting to prevent unapproved or unlawful entry, directing persons causing a disturbance to leave the facility, ensuring that persons removing property from the facility are acting within appropriate policy requirements, observing and reporting incidents or suspicious activity to management and to public safety authorities as appropriate, and responding to or reporting incidents of fire, medical emergency, hazardous materials, and other incidents or conditions following procedures established by the employer. REGISTERED SUPPORT: California Association of Licensed Security Agencies, Guards and Associates AB 1042 Page 9 REGISTERED OPPOSITION: None on file. Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301