BILL ANALYSIS
SB 741
Page 1
SENATE THIRD READING
SB 741 (Maldonado)
As Amended August 17, 2009
Majority vote
SENATE VOTE :34-3
BUSINESS & PROFESSIONS 10-0 APPROPRIATIONS 12-1
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|Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Ammiano, Charles |
| |Conway, Eng, | |Calderon, Coto, Davis, |
| |Hernandez, Nava, Niello, | |Duvall, Fuentes, Hall, |
| |John A. Perez, Ruskin, | |John A. Perez, Skinner, |
| |Smyth | |Solorio, Torlakson |
| | | | |
|-----+--------------------------+-----+---------------------------|
| | |Nays:|Audra Strickland |
| | | | |
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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
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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 Proprietary Security Services
Act (Act), adopt necessary regulations, cite and fine, and
appoint and fix the compensation of inspectors, investigators,
and other personnel 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)Authorizes DCA to suspend or revoke a PPSO registration if a
PPSO commits any act or crime constituting grounds for denial
of registration, as specified.
7)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.
8)Mirrors the coursework, curriculum and annual review
provisions described under existing law for PPSOs.
9)Requires the Department of Justice to charge a fee of $50 to
process subsequent arrest notifications of PPSO applicants.
10)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,
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c) A replacement fee of $10 for lost or damaged
registration cards.
11)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.
12)Exempts the following from registration as a PPSO:
a) A U.S. officer or employee, while performing his or her
official duties, as specified;
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
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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;
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.
13)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.
14)Prohibits PPSEs from subletting employed PPSOs to another
person, business, or entity.
15)Becomes effective on January 1, 2011, with the exception of
the training requirements, which becomes effective on July 1,
2011.
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16)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:
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.
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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 : According to the Assembly Appropriations
Committee analysis, one time costs of $70,000 for automation and
on going costs of approximately $60,000 per year. All costs
will be covered by the Private Security Services Fund.
COMMENTS : According to the author's office, "This bill would
grant the Bureau enforcement authority over PPSOs and 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."
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 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
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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.
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.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301
FN: 0002015