BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1042| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1042 Author: Cooper (D) Amended: 9/4/15 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 (PSO) by requiring only one of the two specified criteria to be met, revises one of the criteria of a PPSO's duties that are likely to involve interacting with the public, exempts an unarmed person employed by a retail merchandise store who reports or prevents theft from the retail merchandise store and exempts an employee at an entertainment or sports venue, as specified, whose primary duties consist of AB 1042 Page 2 screening guests and their personal items before venue entry from the provision of the Proprietary Private Security Act. This bill also changes the weekly pay schedule for a proprietary private security officer employed by a temporary services employer. Senate Floor Amendments of 9/4/15 make definitional changes to the exemption for an unarmed person employed by a retail merchandise store who reports or prevents theft from the retail merchandise store, add an exemption for an employee at an entertainment or sports venue, as specified, whose primary duties consist of screening guests and their personal items before venue entry, and make other technical and clarifying changes. ANALYSIS: Existing law: 1) Defines a 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. (Business and Professions Code (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) AB 1042 Page 3 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. 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 an unarmed person employed by a retail merchandise store who reports or prevents theft from the retail merchandise store and who wears plain clothes or attire with only the retailer's logo or business name as a PSO under the Proprietary Private Security Act. 4) Exempts an employee at an entertainment or sports venue, including, but not limited to, a theme or amusement park, and a theatrical screening, whose primary duties consist of screening guests and their personal items before venue entry, checking admission tickets, directing guests, or any combination of these duties, and seeking assistance from law enforcement or security personnel when that would be the ordinary and customary response of an employee in the event of an unapproved or unlawful entry or criminal act or disturbance as a PSO under the Proprietary Private Security Act. AB 1042 Page 4 5) Applies the weekly pay requirement for PSOs employed by a temporary services employer. 6) Makes other technical and clarifying changes. 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 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 AB 1042 Page 5 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 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, minor and absorbable Bureau costs for increased complaint investigations to the AB 1042 Page 6 Private Security Services Fund, and licensing revenue gains. Revenues in each fiscal year would exceed new staffing costs identified above impacting the Private Security Services Fund. SUPPORT: (Verified9/4/15) California Association of Licensed Security Agencies, Guards and Associates (source) Corporate Security Service Inc. King Security Services Rightway Security Services, Inc. SMSSI of California, Inc. Universal Protection Service OPPOSITION: (Verified9/4/15) None received ARGUMENTS IN SUPPORT: Writing in support of the bill, the 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, AB 1042 Page 7 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:Mark Mendoza / B., P. & E.D. / (916) 651-4104 9/9/15 10:23:14 **** END ****