BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1042 (Cooper) - Proprietary security services
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|Version: August 18, 2015 |Policy Vote: B.,P.&E.D. 8 - 1, |
| | L.&I.R. 5 - 0 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 24, 2015 |Consultant: Mark McKenzie |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: Effective January 1, 2017, AB 1042 would expand the
definition of a proprietary private security officer for
purposes of registration and regulation by the Bureau of
Security and Investigative Services (BSIS), as specified.
The bill would also require temporary services employers to pay
an employee licensed as a security officer and working with a
private patrol operator on a weekly basis and no later than the
regular payday of the following work week, except as specified.
Fiscal
Impact:
BSIS would incur new staffing costs of $226,000 annually,
beginning in 2016-17, for 3 new PY of staff for workload
associated with the significant increase in regulated
AB 1042 (Cooper) Page 1 of
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individuals and employers, fully offset by new licensing fee
revenues. (Private Security Services Fund)
Minor and absorbable BSIS costs for increased complaint
investigations. (Private Security Services Fund)
BSIS licensing revenue gains of $390,000 in 2016-17, $260,000
in 2017-18, $252,000 in 2018-19, $190,000 in 2019-20, and
$265,000 in 2021-22. Revenues in each fiscal year would
exceed new staffing costs identified above. (Private Security
Services Fund)
Background: Existing law provides for the licensure and regulation of
proprietary private security officers (PSOs) and proprietary
private security employers (PPSEs) by the BSIS in the Department
of Consumer Affairs. A PSO is defined as an unarmed individual
who is employed exclusively by any one employer and whose
primary duty is to provide security services for his or her
employer, services are not contracted to any other entity or
person, and meets both of the following criteria: (1) the PSO is
required to wear a distinctive uniform clearly identifying the
individual as a security officer, and (2) the PSO is likely to
interact with the public while performing his or her duties. A
PPSE is a person who has one or more employees who provide
security services for the employer and only for the employer.
Existing law defines a "temporary services employer" as an
employing unit that contracts with clients or customers to
supply workers to perform services for the clients or customers,
and performs certain specified functions, including determining
assignments and paying the worker. A temporary services
employer must pay employees no less frequently than weekly and
not later than the regular payday of the following calendar
week. A temporary employee whose assignment is 90 days or
longer is exempt from the requirement to be paid weekly.
Proposed Law:
AB 1042 would define a PSO as a person who either wears a
distinctive uniform identifying the person as a security
officer, or is likely to interact with the public while
performing his or her duties (rather than requiring a PSO to
meet both of those criteria). An unarmed, plain clothed person
employed by a retail store to exclusively report or prevent
AB 1042 (Cooper) Page 2 of
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theft from a retail store is explicitly excluded from the
definition of a PSO and regulation by the BSIS. The bill would
also define "security services" as activities by a PSO for the
protection of persons or property, as specified. These changes
would be operative on January 1, 2017.
AB 1042 would also require temporary services employers to pay
an employee who is licensed as a security officer, working with
a private patrol operator, and assigned to work for a client, no
less frequently than weekly, regardless of when the assignment
ends, and to pay wages no later than the regular payday of the
following work week for work performed during any work week,
except as specified.
Related
Legislation: SB 940 (Yee), Ch. 169/2008, requires that
employees of temporary services employers or leasing employers
be paid weekly, or daily if an employee is assigned to a client
on a day-to-day basis or the client is engaged in a trade
dispute.
Staff
Comments: Revising the criteria for persons who are classified
as PSOs by requiring they meet either, rather than both of the
specified criteria, would significantly expand the population of
security officers who must be certified and registered by the
BSIS. The Bureau anticipates the following increase in PSO
applications: 4,200 in 2016-17, 2,800 in 2017-18, and 700
annually ongoing, plus biennial renewals beginning in 2018-19.
In addition, the BSIS anticipates the following increase in
Private Security Employer applications: 2,400 in 2016-17, 1,600
in 2017-18, and 400 annually ongoing, plus biennial renewals
beginning in 2018-19. BSIS indicates that it would need an
additional 3 PY of staff to manage the increased workload. Any
costs related to increased enforcement are expected to be
relatively minor and absorbable.
The initial application fees for PSO and PPSE are $50 and $75,
respectively, while the license renewal fees for both officers
and employers are $35 biennially. The fee revenues associated
with licensing the increased populations would increase revenues
to the Private Security Services Fund as specified above, and
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would more than offset the increased staffing costs.
There is not expected to be a state fiscal impact related to the
statutory changes to temporary worker pay schedules.
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