BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 741|
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THIRD READING
Bill No: SB 741
Author: Maldonado (R)
Amended: 4/13/09
Vote: 21
SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE : 8-1,
4/20/09
AYES: Negrete McLeod, Corbett, Correa, Florez, Oropeza,
Romero, Walters, Yee
NOES: Aanestad
NO VOTE RECORDED: Wyland
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/4/09
AYES: Kehoe, Cox, Corbett, Denham, Leno, Runner, Walters,
Wolk, Wyland, Yee
NO VOTE RECORDED: DeSaulnier, Hancock, Oropeza
SUBJECT : Proprietary security services
SOURCE : Department of Consumer Affairs
DIGEST : This bill 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, and establishes training and enforcement
provisions.
ANALYSIS :
CONTINUED
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Existing law:
1. Provides for the registration and regulation of some
2,100 proprietary private security officers under the
Proprietary Security Services Act (Act) by the Bureau of
Security and Investigative Services (Bureau) in the
Department of Consumer Affairs (DCA).
2. Requires a proprietary private security officer 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 proprietary private security officer
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 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
proprietary private security officer 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.
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7. Requires employers of proprietary private security
officers 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 DCA.
D. "Proprietary private security employer" 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 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
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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
proprietary private security officer 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 proprietary
private security officer 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
proprietary private security employer 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.
C. Provides for a biennial registration renewal,
subject to a $35 fee.
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D. Exempts certain proprietary private security
employers from registration, as specified.
6. Authorizes the Director to refuse to approve a
proprietary private security officer or proprietary
private security employer 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/her license or registration while it
was under suspension.
7. Authorizes the Director to refuse to issue a proprietary
private security officer or proprietary private security
employer 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 proprietary private security employers from
subletting proprietary private security officers
employed by them to any other person, business, or
entity.
10.Requires proprietary private security employers to
maintain specified records regarding the employment of
officers as well as the completion by officers of
training in security officer skills.
11.Requires proprietary private security officers 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
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#4, above, for a registered person to contest a fine or
denial, revocation or suspension of a registration.
Background
There are two different categories of security guards
regulated by the Bureau -- those who work in-house for a
specific employer (proprietary private security officers)
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 proprietary private security officer 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. Proprietary private security officers are
required to wear a distinctive uniform, and are likely to
interact with the public while performing their duties.
Under the Act, proprietary private security officers 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."
Cite and Fine Authority . Pursuant to Section 125.9 of the
Business and Professions Code, boards and bureaus under DCA
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
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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 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 gives DCA the ability to use these effective
enforcement tools with regard to both proprietary private
security officers and proprietary private security
employers.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Private security $0 $70* $60
ongoingSpecial**
Registration requirement - all costs offset by
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registration fees -
* One-time information technology costs of $30 and
half-year personnel costs of $39
**Private Security Services Fund (1111-0239)
SUPPORT : (Verified 5/4/09)
Department of Consumer Affairs (source)
California Association of Licensed Security Agencies,
Guards & Associates
Service Employees International Union
OPPOSITION : (Verified 5/4/09)
California Teamsters Public Affairs Council
ARGUMENTS IN SUPPORT : The California Association of
Licensed Security Agencies, Guards & Associates writes in
support that in recent years California has made major
strides in professionalizing private security, mandating
Department of Justice and Federal Bureau of Investigation
background checks and dramatically increasing the training
requirement for these officers. The Association believes
that the bill closes a loophole in the law by extending the
Bureau's regulation to employers of proprietary security
thereby adding another layer of public and consumer
protection.
ARGUMENTS IN OPPOSITION : The California Teamsters Public
Affairs Council states: "This bill is unnecessary.
In-house security guards are employed directly by
employers, including retailers, trucking companies, armored
car drivers, manufacturing facilities, racetracks and
amusement parks, the movie industry, and a host of other
industries. Those employers exert full direction and
control over the employees. Unlike contract guards working
for a myriad of business who exert little control, there is
no need for this kind of regulation because employers of
in-house security guards are responsible in every aspect
for their conduct. It is overkill, to say the least."
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JJA:mw 5/5/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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