BILL ANALYSIS
SB 741
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Date of Hearing: June 30, 2009
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Mary Hayashi, Chair
SB 741 (Maldonado) - As Amended: June 23, 2009
SENATE VOTE : 34-3
SUBJECT : Proprietary security services.
SUMMARY : Revises and recasts the regulation of proprietary
private security officers (PPSOs) to require both PPSOs and
proprietary private security employers (PPSEs), as defined, to
register with the Bureau of Security and Investigative Services
(Bureau), and establishes training and enforcement provisions.
Specifically, this bill :
1)Creates the following definitions:
a) "Bureau" means the Bureau of Security and Investigative
Services;
b) "Chief" means the Chief of the Bureau;
c) "Director" means the Director of Consumer Affairs (DCA),
unless otherwise indicated;
d) "Person" includes any individual, firm, company,
association, organization, partnership, and corporation;
e) "Proprietary private security employer" means 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 pursuant to this
chapter at more than one location shall be considered a
single employer; and,
f) "Registrant" means an individual registered with the
Bureau.
2)Retains the existing definition of "PPSO."
3)Authorizes DCA to administer the Act, adopt necessary
regulations, cite and fine, and appoint and fix the
compensation of inspectors, investigators, and other personnel
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as may be necessary.
4)Declares it a violation for anyone to engage in the business
of a PPSO unless registered with DCA.
5)Authorizes DCA to decline a PPSO or PPSE registration for a
person who has had any license or registration revoked, whose
license or registration is under suspension, or has failed to
renew his/her license or registration while it was under
suspension.
6)Retains the appeals process to a private security disciplinary
review committee and the Office of Administrative Hearings
described in existing law for a registered person to contest a
fine, denial, revocation, or suspension of a registration.
7)Mirrors the coursework, curriculum and annual review
provisions described under existing law for PPSOs.
8)Requires the Department of Justice to charge a fee of $50 to
process subsequent arrest notifications of PPSO applicants.
9)Requires the following for registration as a PPSO:
a) Upon application approval, a registration card shall be
issued and valid for two years. The registration card
allows a PPSO to work in the capacity of a PPSO, while
carrying documents and identification, as specified;
b) A biennial renewal fee of $35; and,
c) A replacement fee of $10 for lost or damaged
registration cards.
10)Requires the following for registration as a PPSE:
a) An application fee of $75; and,
b) Upon application approval, a registration certificate
shall be issued to the PPSE and valid for two years.
11)Exempts the following from registration as a PPSO:
a) A U.S. officer or employee, while performing his or her
official duties, as specified;
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b) A person engaged exclusively in the business of
obtaining and furnishing information as to the financial
rating of persons;
c) A non-profit charitable philanthropic society or
association;
d) Patrol special police officers, as specified;
e) An attorney at law;
f) A collection agency or an employee thereof while acting
within the scope of his or her employment;
g) Admitted insurers and agents and insurance brokers
licensed by the state, performing duties in connection with
insurance transacted by them;
h) Any bank under the Commissioner of Financial
Institutions of the State of California or the Financial
Code or the Comptroller of Currency of the United States;
i) A person engaged solely in the business of securing
information about persons or property from public records;
j) A California peace officer employed by a private
employer to engage in off-duty employment. However,
nothing exempts a peace officer who either contracts for
his or her services or the services of others as a private
patrol operator or contracts for his or her services as or
is employed as an armed private security officer.
aa) A retired California peace officer employed by a private
employer. This officer may not carry a loaded or concealed
firearm unless he or she is exempted, as specified.
However, nothing exempts the retired peace officer who
contracts for his or her services or the services of others
as a private patrol operator;
bb) A licensed insurance adjuster;
cc) Any savings association under the Commissioner of
Financial Institutions or the Office of Thrift Supervision;
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dd) Any secured creditor engaged in the repossession of the
creditor's collateral and any lessor engaged in the
repossession of leased property in which it claims an
interest;
ee) A peace officer in his or her official police uniform;
ff) An unarmed, uniformed security person employed
exclusively and regularly by a motion picture studio
facility employer who does not provide contract security
services for other entities or persons, as specified; and,
gg) An armored contract carrier operating armored vehicles,
or an armored vehicle guard employed by an armored contract
carrier.
12)Requires PPSEs to maintain the following accurate and current
information of employed PPSOs: name, position, address,
commencing date of employment, date of termination of
employment, and proof of training completion certificate,
effective as of January 1, 2011.
13)Prohibits PPSEs from subletting employed PPSOs to another
person, business, or entity.
14)Becomes effective on January 1, 2011, with the exception of
the training requirements, which becomes effective on July 1,
2011.
15)Defines "armed security officer" as an individual who carries
or uses a firearm in the course and scope of that contract or
employment;
EXISTING LAW :
1)Provides for the registration and regulation of some 2,100
proprietary private security officers by the Bureau.
2)Requires a 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:
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a) Wears a distinctive uniform clearly identifying the
individual as a security officer; and,
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
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 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.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill . According to the author's office, "This
bill would grant the Bureau enforcement authority over PPSOs and
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PPSEs. Existing law requires PPSOs to be registered with the
Bureau and establishes various training requirements. 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."
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. Existing law establishes the
Proprietary Security Services Act, which requires PPSOs to
submit an application for registration with the Bureau, which
must include fingerprints and a $50 application fee. However,
while PPSOs are required to register, unregistered practice is
not punishable as a misdemeanor or infraction, as is the case
with most of the Bureau's other licensees, and it is unclear
whether the Bureau may issue citations for unregistered practice
or other violations of the Act.
The Governor issued the following message for SB 666
(Maldonado), Chapter 721, Statutes of 2007, which requires PPSOs
to complete security officer skills training as they begin
employment and to undergo an annual review:
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 the expectation that the
Legislature will provide the Bureau the legal
authority to enforce these requirements.
Arguments in support . According to the sponsor, "The law does
not explicitly prohibit a person from acting in the capacity of
a PPSO without registration and does not give the Bureau any
authority to issue administrative citations for unlicensed
activity or for failing to comply with training requirements.
This bill would provide the Bureau with the authority it needs
to meaningfully enforce the requirements of existing law."
According to the California Association of Licensed Security
Agencies, Guards & Associates, "SB 741 would close a loophole in
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the Act by extending the Bureau regulation to employers of
proprietary security. Currently, only proprietary security
officers are required to register with the Bureau. SB 741 would
finally give the Bureau the enforcement authority they need to
curb unlicensed activity, while creating a much needed point of
contact for the Bureau and proprietary employers."
Arguments in opposition . According to the California Teamsters
Public Affairs Council, "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."
Prior Legislation . SB 1209 (Maldonado) of 2008 included similar
provisions to SB 741 for a short time (inserted in June 9, 2008
amendments and stricken out in June 18, 2009 amendments). The
bill was held on the Assembly Appropriations Suspense File.
SB 666 (Maldonado), Chapter 721, Statutes of 2007, requires
PPSOs to complete security officer skills training as they begin
employment and to undergo an annual review of this training. SB
666 also requires the Bureau to establish a training curriculum
by regulation, with the assistance of an advisory committee.
The Bureau has already facilitated meetings of the advisory
committee and is finalizing a rulemaking package to establish a
curriculum. However, the Bureau does not have authority to
issue administrative citations to PPSOs or their employers who
do not comply with training requirements.
SB 194 (Maldonado), Chapter 655, Statutes of 2005, enacts the
Act and requires a PPSO as defined, to meet specified
requirements and register with DCA.
REGISTERED SUPPORT / OPPOSITION :
Support
Department of Consumer Affairs (DCA) (sponsor)
California Association of Licensed Security Agencies, Guards &
Associates (CALSAGA)
Service Employees International Union (SEIU)
Opposition
SB 741
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California Teamsters Public Affairs Council
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301