BILL ANALYSIS
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|Hearing Date:April 20, 2009 |Bill No:SB |
| |741 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Gloria Negrete McLeod, Chair
Bill No: SB 741Author:Maldonado
As Amended:April 13, 2009 Fiscal: Yes
SUBJECT: Proprietary security services.
SUMMARY: Revises and recasts 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 Security and
Investigative Services; establishes training and enforcement
provisions.
Existing law:
1)Provides for the registration and regulation of some 2,100
proprietary private security officers (PPSOs) under the
Proprietary Security Services Act (Act) by the Bureau of
Security and Investigative Services (Bureau) in the DCA.
2)Requires a proprietary private security officer (PPSO) to
register with the DCA, and defines "proprietary private security
officer" as an unarmed individual employed exclusively by one
employer to provide security services for that employer, and
whose services are not contracted to any other entity, and who
meets both of the following:
a) Is required to wear a distinctive uniform clearly
identifying the individual as a security officer.
b) Is likely to interact with the public while performing
duties.
3)Prohibits a PPSO registration from being issued until payment of
the application fee and a criminal history background check has
been completed, as specified, and the Bureau has made a
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determination in this regard.
4)Authorizes, except as otherwise specified, a registered person
to request review by a private security disciplinary review
committee, to contest the assessment of fines or to appeal the
denial, revocation, or suspension of a registration.
5)Requires persons entering into employment as a PPSO to complete
a course in security officer skills within six months of their
registration,
6)Requires DCA to develop and approve a standard course and
curriculum for a skills training course, and in order to develop
the course, requires DCA to convene an advisory committee of
specified stakeholders.
7)Requires employers of PPSOs to provide an annual review or
practice of security officer skills, and maintain a record
verifying completion of the review or practice training for two
years.
8)Exempts peace officers and armored vehicle guards from the
training and annual training review requirements.
9)Makes the training requirements effective on July 1, 2009, for
persons hired on or after January 1, 2009, and effective on
January 1, 2010, for those persons hired prior to January 1,
2009.
This bill:
1)Revises and recasts the above provisions of the Proprietary
Security Services Act (Act), beginning January 1, 2011, as
described below.
2)Defines various terms for purposes of the Act, including:
a) "Bureau" as the Bureau of Security and Investigative
Services;
b) "Chief" as the Chief of the Bureau of Security and
Investigative Services;
c) "Director" as the Director of Consumer Affairs;
d) "Proprietary private security employer" (PPSE) as a person
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who has one or more employees who provide security services
for the employer and only for the employer. A person who
employs proprietary security officers at more than one
location shall be considered a single employer.
e) Retains the definition of "proprietary private security
officer" as described under Existing Law item # 2, above.
3)Provides that the Director shall enforce the Act, and may, as
specified, employ inspectors, investigators, and other personnel
to enforce the Act, and may adopt regulations to administer and
enforce the Act
4)Prohibits any person from engaging in the business of a PPSO
unless registered with DCA under the Act, subject to the
following:
a) The registration application shall require submission of
fingerprints to the Department of Justice, and a fee of $50.
b) Upon approval of registration, the chief shall issue a
registration card, which is valid for two years.
c) Authorizes a person to work as a PPSO pending receipt of a
registration card if he or she has been approved by the
Director and carries a printout of the approval from the
Bureau's Internet Website and valid identification, as
specified.
d) In the event of loss or destruction of a registration
card, provides for an application for replacement, as
specified, subject to a $10 fee.
e) Provides for a biennial registration renewal, subject to a
$35 fee.
5)Prohibits any person from engaging in the business of a PPSE
unless registered with DCA under the Act, subject to the
following:
a) Submission of an application and payment of a $75
registration fee.
b) Upon approval of registration, the chief shall issue a
registration certificate, which is valid for two years.
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c) Provides for a biennial registration renewal, subject to a
$35 fee.
d) Exempts certain PPSEs from registration, as specified.
6)Authorizes the Director to refuse to approve a PPSO or PPSE
registration for a person who has had any license or
registration revoked, or whose license or registration is under
suspension, or has failed to renew his or her license or
registration while it was under suspension.
7)Authorizes the Director to refuse to issue a PPSO or PPSE
registration to a person who has committed any act that, if
committed by a registrant, would be grounds for refusing to
issue a registration or for the suspension or revocation of a
registration issued under the Act.
8)Generally mirrors the coursework, curriculum and annual review
provisions described under Existing Law, items #5-8, above.
9)Restricts PPSEs from subletting PPSOs employed by them to any
other person, business, or entity.
10)Requires PPSEs to maintain specified records regarding the
employment of officers as well as the completion by officers of
training in security officer skills.
11)Requires PPSOs on duty to carry a valid and current
registration card or a specified hard copy printout of the
Bureau's approval, and a valid identification while on duty.
Specifies that the failure to comply with this requirement will
result in the imposition of a $25 fine for the first violation
and a $50 fine for each subsequent violation.
12)Retains the appeals process to a private security disciplinary
review committee and the Office of Administrative Hearings
described in Existing Law item #4, above, for a registered
person to contest a fine or denial, revocation or suspension of
a registration.
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1.Purpose. This bill is sponsored by the Department of Consumer
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Affairs (DCA) in order to grant the Bureau of Security and
Investigative Services (Bureau) enforcement authority over
proprietary private security officers (PPSOs) and proprietary
private security employers (PPSEs).
2.Background. There are two different categories of security
guards regulated by the Bureau; those who work in-house for a
specific employer (PPSOs) and those who are employed by a
contract security firm to provide security services for a third
party (private patrol operators). This bill deals solely with
the security guards who work in-house for a specific employer.
A PPSO is an unarmed individual, who is employed exclusively by a
single employer, providing security services for that employer,
and whose services are not contracted to any other entity or
person. PPSOs are required to wear a distinctive uniform, and
are likely to interact with the public while performing their
duties. Under the Proprietary Security Services Act (Act),
PPSOs are required to register with the Bureau within DCA which
must include submission of fingerprints for a background check
and an application fee of $50 and complete various training
requirements. DCA states: "However, the law does not give the
Bureau any authority to issue administrative citations for
unlicensed activity or for failing to comply with training
requirements. This regulatory scheme does not protect
consumers."
3.Prior Legislation. SB 666 (Maldonado, Chapter 721, Statutes of
2007) required PPSOs to complete security officer skills
training as they begin their 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. According to DCA, the
Bureau has already facilitated meetings of the advisory
committee and is finalizing a rulemaking package to establish a
training curriculum. However, the SB 666 did not grant the
Bureau the authority to issue administrative citations to PPSOs
or to their employers when they do not comply with training
requirements. When the Governor signed SB 666, he issued the
following signing message:
"I am signing Senate Bill 666 because it would require
proprietary private security officers to complete security
officer skills training and require the Bureau? to develop
a curriculum for this training with the assistance of an
advisory committee. However, I am signing this bill with
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the expectation that the Legislature will provide the
Bureau the legal authority to enforce these requirements."
[emphasis added]
SB 194 (Maldonado, Chapter 655, Statutes of 2005) established
the initial Proprietary Security Services Act, defining
proprietary private security officers and requiring them to
register with the Department of Consumer Affairs.
SB 1209 (Maldonado, 2008) included provisions very similar to
those in this bill. However, those provisions were included
only for a short time (inserted in June 9, 2008 amendments and
stricken out in June 18, 2009 amendments). The bill was
eventually held on the Assembly Appropriations Suspense File.
4.Registering Employers of PPSOs. Prior to this legislation, the
employers of proprietary private security officers have not been
registered with the Bureau. While the current law places
requirements upon the employers to annually conduct a review of
the PPSOs skills, and to maintain records, the law does not
place them under the authority of the Bureau in any realistic
manner. This bill would require the employer, termed a
"proprietary private security employer" (PPSE) to register with
the Bureau and pay a biennial renewal fee. The PPSE, subject to
registration, might be a department store, hardware store,
entertainment or sports facility, or other type of business that
employs its own security guards.
When last Session's SB 1209, contained essentially the same
provisions as are in this bill, concern was expressed by some
retailers with multiple business locations as to whether they
would have to register each store location as a PPSE, and
whether they would be able to move their PPSO employees between
store locations. As currently drafted, this bill appears to
address these concerns. The bill explicitly states in the
definition of proprietary private security employer: "A person
who employs proprietary security officers pursuant to this
chapter at more than one location shall be considered a single
employer," thereby requiring only one registration for multiple
locations. Furthermore, while the bill prohibits a PPSE from
subletting a PPSO to any other entity, it explicitly states that
it does not prohibit an employer from transferring employees
from one location to another or from one subsidiary to another.
5.Cite and Fine Authority. Pursuant to Section 125.9 of the
Business and Professions Code, boards and bureaus under the DCA
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are given general authority to issue administrative citations,
and citations with fines for violations of the applicable
licensing act or any regulation adopted thereto. To do this a
board or bureau must establish by regulation a cite and fine
system. Citations must be in writing and describe the
particular nature of the violation, including specific reference
to the law violated. The citation may contain an order of
abatement of the violation. Fines are limited to $5,000 for
each inspection or each investigation made of the violation.
The citation must inform the licensee of the right to request a
hearing to contest the finding of violation. Failure to pay a
fine within 30 days of the date the fine becomes final is a
cause for disciplinary action by the board or bureau, and the
amount of the fine shall be added to the renewal fee. If a fine
is paid to satisfy an assessment based upon a finding of
violation, the payment of the fine shall be considered
satisfactory resolution of the matter for purposes of public
disclosure.
A board or bureau is also authorized, under general provisions of
the Code, to establish by regulation a similar system for the
issuance of administrative citations and fines to an unlicensed
person who is acting in the capacity of a licensee. The cite
and fine system for unlicensed activity must meet the same terms
and $5,000 limitation as for the cite and fine system for
licensed persons.
Boards, bureaus and the DCA acknowledge that over the years, the
ability to issue citations and fines has been an effective
enforcement tool to address lesser violations by licensees that
are not substantial enough for a board or bureau to initiate
formal disciplinary action to revoke a license or registration.
The ability to issue citations and fines for unlicensed activity
has also been an important and effective tool when persons fail
to or refuse to obtain a required license or registration.
This bill would give the DCA the ability to use these effective
enforcement tools with regard to both PPSOs and PPSEs.
6.Arguments in Support. California Association of Licensed
Security Agencies, Guards & Associates (CALSAGA) writes in
support that in recent years California has made major strides
in professionalizing private security, mandating DOJ and FBI
background checks and dramatically increasing the training
requirement for these officers. CALSAGA believes that the bill
would close a loophole in the law by extending the Bureau's
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regulation to employers of proprietary security thereby adding
another layer of public and consumer protection.
NOTE : Double-referral to Public Safety Committee second.
SUPPORT AND OPPOSITION:
Support:
Department of Consumer Affairs (Sponsor)
California Association of Licensed Security Agencies, Guards &
Associates
Opposition: None received as of April 15, 2009
Consultant:G. V. Ayers