California Legislature—2013–14 Regular Session

Assembly Bill No. 2220

Introduced by Assembly Member Daly

February 20, 2014

An act to amend Section 7583.40 of, and to repeal and add Section 7583.39 of, the Business and Professions Code, relating to private security services.

LEGISLATIVE COUNSEL’S DIGEST

AB 2220, as introduced, Daly. Private security services: insurance policies.

The Private Security Services Act provides for the licensure and regulation of private patrol operators by the Bureau of Security and Investigative Services in the Department of Consumer Affairs. Existing law requires a private patrol operator employing a security guard who carries a firearm to maintain an insurance policy that provides minimum limits of insurance of $500,000 for any one loss due to bodily injury or death and $500,000 for any one loss due to injury or destruction of property.

This bill would instead require the bureau to require private patrol operator or applicant for licensure, as a condition precedent to licensure or continued licensure, to file or have on file with the bureau an insurance policy that provides minimum limits of insurance of $1,000,000 for any one loss due to bodily injury or death and $1,000,000 for any one loss due to injury or destruction of property.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 7583.39 of the Business and Professions
Code is repealed.

begin delete

7583.39.  

No private patrol operator who employs a security
guard who carries a firearm as part of his or her duties shall engage
in any of the practices for which he or she is required to be licensed
by this chapter, unless he or she maintains an insurance policy as
defined in Section 7583.40.

end delete

SEC. 2.  

Section 7583.39 is added to the Business and
Professions Code, to read:

7583.39.  

The bureau shall require, as a condition precedent to
the issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file an insurance policy, as defined in Section 7583.40.

SEC. 3.  

Section 7583.40 of the Business and Professions Code
is amended to read:

7583.40.  

“Insurance policy,” as used in this article, means a
contract of liability insurance issued by an insurance company
authorized to transact business in this state begin delete which end delete begin insert that end insert provides
minimum limits of insurance of begin delete five hundred thousand end delete begin insert one million end insert
dollars begin delete ($500,000) end delete begin insert ($1,000,000) end insert for any one loss due to bodily
injury or death and begin delete five hundred thousand end delete begin insert one million end insert dollars
begin delete ($500,000) end delete begin insert ($1,000,000) end insert for any one loss due to injury or
destruction of property.