BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1042


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          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))








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          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  








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               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  








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            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  








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            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  








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            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.'








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          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,  








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          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 may   Is required to  wear a distinctive uniform  
             or marked shirt or jacket clearly identifying the individual  
             as a security officer.


            (2)   He or she may   Is likely to  interact with the public while   
            performing 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









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          REGISTERED OPPOSITION:  
          None on file. 




          Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301