BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  AB 1042
          Author:   Cooper (D)
          Amended:  8/18/15 in Senate
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-1, 6/22/15
           AYES:  Hill, Bates, Block, Galgiani, Hernandez, Jackson,  
            Mendoza, Wieckowski
           NOES:  Berryhill

           SENATE LABOR & IND. REL. COMMITTEE:  5-0, 7/8/15
           AYES:  Mendoza, Stone, Jackson, Leno, Mitchell

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/24/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  78-0, 5/28/15 - See last page for vote

           SUBJECT:   Proprietary security services


           SOURCE:    California Association of Licensed Security  
                     Agencies, Guards and    Associates


          DIGEST:  This bill expands the definition of a proprietary  
          private security officer by requiring only one of the two  
          specified criteria to be met, revises one of the criteria of a  
          proprietary private security officer's duties that are likely to  
          involve interacting with the public, and exempts plain clothed  
          persons employed by a retail store to exclusively report or  
          prevent theft from the provision of the Proprietary Private  
          Security Act.  This bill also changes the weekly pay schedule  








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          for a proprietary private security officer employed by a  
          temporary services employer.


          ANALYSIS:   


          Existing law:


          1) Defines a proprietary private security officer (PSO) 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, services are not contracted to any  
             other entity or person, and is both required to wear a  
             distinctive uniform clearly identifying the individual as a  
             security officer and likely to interact with the public while  
             performing his or her duties.  (BPC § 7574.01)

          2) Prohibits any who is not registered with the Bureau of  
             Security and Investigative Services (Bureau) in the  
             Department of Consumer Affairs from engaging in the business  
             of a PSO.  (BPC § 7574.10)

          3) Requires a person registered and hired as a PSO to complete  
             training in security officer skills within six months of his  
             or her employment with a proprietary private security  
             employer (PPSE).  (BPC § 7574.18)

          4) 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 PSOs pursuant to this chapter  
             at more than one location shall be considered a single  
             employer.  (BPC § 7574.01(e))

          5) Defines a temporary services employer as employing units that  
             contract with clients to supply workers to perform services  
             for those clients.  (Labor Code § 201.3)

          This bill:

          1) Changes the definition of a PSO to require only one of the  
             two specified criteria, effective January 1, 2017.








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          2) Defines "security services" as activities by a PSO which  
             include, but are not limited to, acting to prevent unapproved  
             or unlawful entry, directing persons causing a disturbance to  
             leave a facility, ensuring that persons removing property  
             from a facility are acting within appropriate policy  
             requirements, observing and reporting incidents or suspicious  
             activity to management and other 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 PSO's employer.

          3) Exempts unarmed, plain clothed persons employed by a retail  
             store to exclusively report or prevent theft from  
             registration as a PSO under the Act.

          4) Applies the weekly pay requirement for PSOs employed by a  
             temporary services employer.

          Background


          A PSO is defined as a generally unarmed individual who is  
          employed by a single employer not contracted to any other entity  
          or person and whose primary duty is to provide security services  
          for that employer.  While PSO registration candidates do not  
          need to provide proof of training to the Bureau, their employers  
          must have proof of the PSOs completion of 16 hour of training  
          within the first six months of receiving the PSO registration or  
          six months from date of hire by the PSO employer in the  
          employee's file.  PPSEs are prohibited from subletting PSOs to  
          another person, business, or entity.  PSOs are prohibited from  
          carrying firearms or batons while on duty.  California peace  
          officers, retired peace officers, and patrol special police  
          officers are exempt from PSO and PPSE registration requirements.  
           According to the Bureau's 2014 Sunset Review Report, there were  
          approximately 594 PPSEs, 6,201 PSOs, and 2,765 PPOs (for the  
          fiscal year 2013/2014).

          Unlicensed Activity.  In the past, PSOs in California received  
          little state oversight, instead relying on standards of conduct  
          and duties set by their employers.  California companies that  
          hired unlicensed PSOs incurred no penalty.  The Author asserts  
          that the definition of a PSO should include persons not wearing  







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          a distinctive uniform, but does primarily act in a security  
          capacity.  This new definition as proposed within this bill  
          would bring bouncers and other plain-clothes individuals  
          employed for security purposes under the umbrella of a PSO and  
          would require their licensure and registration with the Bureau.   
          This issue was raised in response to a violent incident  
          involving an Oceanside club bouncer and a patron in December of  
          2014.  

          This bill seeks to close this loophole and change the definition  
          of a PSO to require only one of the two specified criteria.   
          This bill also gives specific examples of some of the duties a  
          PSO would have when interacting with the public to ensure that  
          those operating as a PSO are properly licensed and regulated by  
          the Bureau.  The Author argues that these changes will ensure  
          greater public and consumer protection by assisting the Bureau  
          to curb unlicensed activity.


          Pay Schedule.  The calendar week schedule, defined by the  
          Division of Labor Standards Enforcement (DLSE), is a week  
          extended from Sunday to Saturday.  Section 500 of the LC defines  
          "workweek" and "week" as any seven consecutive days, starting  
          with the same calendar day each week. "Workweek" is a fixed and  
          regularly recurring period of 168 hours, seven consecutive  
          24-hour periods.

          According to the Author, most security services firms define the  
          workweek as Friday to Thursday.  The Author states that many  
          companies choose to define their workweek in this fashion due to  
          the business needs of the company, and adds that this is the  
          most efficient way to process payroll from operational,  
          financial and information technology perspectives.  Most  
          companies operate on a Monday to Friday business/administrative  
          schedule, as that enables employees to work Monday to Friday and  
          take weekends off.  However, use of a calendar week schedule  
          would require administrative employees to work on weekends in  
          order to process payroll for a Saturday pay-day.

          By proposing the changes in this bill, the Author states that  
          this effort is not an attempt to change the weekly payroll rule  
          but that this new change will allow these temporary services  
          employers to pay their employees on a weekly, Friday to Thursday  
          schedule, ensuring that payment of wages to employees follows  







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          the same timeline as the current Sunday to Saturday schedule.   
          This bill will redefine the work week for security guard  
          companies, which fall under the temporary services employers'  
          category, to allow these companies to pay their employees on a  
          Friday to Thursday pay schedule.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Senate Appropriations Committee, this bill will  
          result in:


           New staffing costs to the Bureau of $226,000 annually,  
            beginning in 2016-17, for 3 new PY of staff for workload  
            associated with the significant increase in regulated  
            individuals and employers, fully offset by new licensing fee  
            revenues from the Private Security Services Fund.

           Minor and absorbable Bureau costs for increased complaint  
            investigations to the Private Security Services Fund.

           Bureau 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 impacting the  
            Private Security Services Fund.


          SUPPORT:   (Verified8/25/15)


          California Association of Licensed Security Agencies, Guards and  
          Associates (source)


          OPPOSITION:   (Verified8/25/15)


          None received


          ARGUMENTS IN SUPPORT:     Writing in support of the bill, the  







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          California Association of Licensed Security Agencies, Guards and  
          Associates states, "this bill would expand the definition of a  
          proprietary private security officer by instead requiring only  
          one of the two specified criteria to be met.  This change in  
          definition would insure that certain individuals that are hired  
          to interact with the public while performing his or her duties  
          are properly trained and certified to perform those duties?AB  
          1042 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."

          ASSEMBLY FLOOR:  78-0, 5/28/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Hadley, Harper, Roger Hernández, Holden, Irwin,  
            Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Bloom, Grove

          Prepared by:Janelle Miyashiro / B., P. & E.D. / (916) 651-4104
          8/26/15 10:19:40


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