BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 741|
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UNFINISHED BUSINESS
Bill No: SB 741
Author: Maldonado (R)
Amended: 8/17/09
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
SENATE FLOOR : 34-3, 5/14/09
AYES: Alquist, Ashburn, Benoit, Calderon, Cogdill,
Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,
Dutton, Florez, Hancock, Harman, Kehoe, Leno, Liu,
Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,
Pavley, Romero, Runner, Simitian, Steinberg, Strickland,
Walters, Wolk, Wright, Wyland, Yee
NOES: Aanestad, Huff, Wiggins
NO VOTE RECORDED: Cedillo, Hollingsworth, Vacancy
ASSEMBLY FLOOR : 65-5, 8/20/09 - See last page for vote
SUBJECT : Proprietary security services
CONTINUED
SB 741
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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.
Assembly Amendments required the Department of Consumer
Affairs (DCA) to request from the Department of Justice
their arrest notification service for applicants seeking
registration as a proprietary private security officer
(PPSO), added an armored contract carrier operating an
armored vehicle or an armored vehicle guard to the list of
persons exempt from registration as a PPSO, deleted the
fine schedule for PPSOs who fail to carry a valid and
current PPSO registration card while on duty, and allowed
the Director of DCA to refuse to approve a PPSO
registration to a person who has committed any act or crime
constituting grounds for denial under existing law.
ANALYSIS :
Existing law:
1. Provides for the registration and regulation of some
2,100 PPSOs under the Proprietary Security Services Act
by the Bureau of Security and Investigative Services
(Bureau) in DCA.
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. Is required to wear a distinctive uniform clearly
identifying the individual as a security officer.
B. Is likely to interact with the public while
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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 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. Creates the following definitions:
A. "Bureau" means the Bureau of Security and
Investigative Services.
B. "Chief" means the Chief of the Bureau.
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C. "Director" means the Director of 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.
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, 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 proprietary private
security employer (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.
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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.
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
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 United States officer or employee while
performing his/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 nonprofit charitable philanthropic society or
association.
D. Patrol special police officers, as specified.
E. An attorney at law.
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F. A collection agency or an employee thereof while
acting within the scope of his/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/her services or the services of others as a
private patrol operator or contracts for his/her
services as or is employed as an armed private
security officer.
K. A retired California peace officer employed by a
private employer. This officer may not carry a
loaded or concealed firearm unless he/she is
exempted, as specified. However, nothing exempts the
retired peace officer who contracts for his/her
services or the services of others as a private
patrol operator.
L. A licensed insurance adjuster.
M. Any savings association under the Commissioner of
Financial Institutions or the Office of Thrift
Supervision.
N. 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.
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O. A peace officer in his or her official police
uniform.
P. 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.
Q. 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.
16.Defines "armed security officer" as an individual who
carries or uses a firearm in the course and scope of
that contract or employment.
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
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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 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."
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
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.
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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 PPSOs and PPSEs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee
analysis, one-time costs of $70,000 for automation and
ongoing costs of approximately $60,000 per year. All costs
will be covered by the Private Security Services Fund.
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.
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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."
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Bill Berryhill, Tom
Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Charles Calderon, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gilmore, Hagman, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Krekorian, Lieu,
Logue, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava,
Nestande, Niello, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Swanson, Torlakson, Torres,
Torrico, Yamada, Bass
NOES: Anderson, DeVore, Garrick, Knight, Audra Strickland
NO VOTE RECORDED: Adams, Caballero, Gaines, Galgiani,
Harkey, Jeffries, Miller, Tran, Villines, Vacancy
JJA:mw 8/26/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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