BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   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  








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          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)








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          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.







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          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  







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          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  







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          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,  







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            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


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