BILL ANALYSIS �
SENATE COMMITTEE ON PUBLIC SAFETY
Senator Loni Hancock, Chair A
2013-2014 Regular Session B
2
2
2
AB 2220 (Daly) 0
As Amended June 5, 2014
Hearing date: June 24, 2014
Business and Professions and Penal Codes
JRD:sl
PRIVATE SECURITY SERVICES:
PRIVATE PATROL OPERATORS
HISTORY
Source:California Association of Licensed Security Agencies,
Guards & Associates
Prior Legislation: SB 385 (Block) (2013) - held in Senate
Appropriations
AB 811 (Hall) (2011-2012 Session) - died in
Assembly Public Safety
AB 1312 (Maldonado) (2010) - died in Senate
Public Safety
AB 1060 (Liu) Chap. 715, Statutes of 2005
Support: Unknown
Opposition:None known
Assembly Floor Vote: Not Relevant
KEY ISSUES
SHOULD A LICENSED PRIVATE PATROL OPERATOR, AS DEFINED, BE
AUTHORIZED TO BE THE LEGAL OWNER OF A FIREARM?
SHOULD PROCEDURES BE ESTABLISH WHEREBY A PRIVATE PATROL OPERATOR
(More)
AB 2220 (Daly)
Page 2
MAY ASSIGN FIREARMS IT OWNS TO ITS EMPLOYEES WHO ARE LICENSED TO
CARRY FIREARMS, AS SPECIFIED?
SHOULD DOJ BE AUTHORIZED TO CHARGE REASONABLE FEES FOR THE
IMPLEMENTATION OF THIS PROGRAM TO THE PRIVATE PATROL OPERATOR'S AND
DEPOSIT THOSE FEES IN THE SPECIAL DROS ACCOUNT?
PURPOSE
The purpose of this bill is to: (1) authorize a licensed Private
Patrol Officer (PPO), as defined, to be the legal owner of a
firearm; (2) establish procedures whereby a PPO may assign
firearms it owns to its employees who are licensed to carry
firearms, as specified; (3) require DOJ to create a Certificate
of Assignment, as specified; (4) authorize DOJ to charge
reasonable fees for the implementation of this program to the
PPO's and deposit those fees in the special DROS account; (5)
require that if the PPO loses it's license or goes out of
business, the PPO must, within 30 days and unless otherwise
prohibited by law, complete new DROS forms for all PPO-owned
firearms and transfer those firearms to a new owner; and, (6)
make it a misdemeanor for a security guard to fail to return his
or her weapon within 48-hours.
Current federal law requires licensed firearms dealers, before
they may deliver a firearm to a purchaser, to perform a
background check on the purchaser through the federal National
Instant Criminal Background Check System ("NICS"). (18 U.S.C ��
921, et seq.)
Current law requires that, except as specified, all sales,
loans, and transfers of firearms to be processed through or by a
state-licensed firearms dealer or a local law enforcement
agency. (Penal Code � 27545.)
Current law provides that there is a 10-day waiting period when
purchasing a firearm through a firearms dealer. During which
time, a background check is conducted and, if the firearm is a
handgun, a handgun safety certificate is required prior to
delivery of the firearm. (Penal Code �� 26815, 26840(b) and
27540.)
(More)
AB 2220 (Daly)
Page 3
Current law creates numerous exceptions to a variety of
different and specified firearms transfer requirements for loans
of firearms under a variety of different circumstances. The
general categories of these exceptions are:
For target shooting at target facility. (Penal Code �
26545.)
To entertainment production. (Penal Code � 26580.)
Several exceptions relating to law enforcement officers
and government agencies (Penal Code �� 2660, et seq.)
For infrequent loan of non-handgun; curio or relic
(Penal Code � 27966) [commencing January 1, 2014]
To a consultant-evaluator. (Penal Code � 27005.)
To minors (Penal Code � 27505.)
Infrequent loans to persons known to each other (Penal
Code � 27880.)
Where the firearm stays within the presence of the
owner. (Penal Code � 27885.)
To a licensed hunter. (Penal Code � 27950.)
Current law regulates PPOs, their use of firearms and the use of
firearms by their employees. (Business and Professions Code ��
7583 - 7583.46.)
(More)
AB 2220 (Daly)
Page 4
Current law defines a PPO by reference to the definition of a
private investigator. (Business � Professions Code � 7583.) A
private investigator is a person, other than an insurance
adjuster, who, for any consideration whatsoever engages in
business or accepts employment to furnish or agrees to furnish
any person to protect persons, as specified, or engages in
business or accepts employment to furnish, or agrees to make, or
makes, any investigation for the purpose of obtaining,
information with reference to:
Crime or wrongs done or threatened against the United
States of America or any state or territory of the United
States of America.
The identity, habits, conduct, business, occupation,
honesty, integrity, credibility, knowledge,
trustworthiness, efficiency, loyalty, activity, movement,
whereabouts, affiliations, associations, transactions,
acts, reputation, or character of any person.
The location, disposition, or recovery of lost or stolen
property.
The cause or responsibility for fires, libels, losses,
accidents, or damage or injury to persons or to property.
Securing evidence to be used before any court, board,
officer, or investigating committee.
A private investigator is further defined as any person, firm,
company, association, partnership, or corporation acting for the
purpose of investigating, obtaining, and reporting to any
employer, its agent, supervisor, or manager, information
concerning the employer's employees involving questions of
integrity, honesty, breach of rules, or other standards of
performance of job duties.
This section shall not apply to a public utility regulated by
(More)
AB 2220 (Daly)
Page 5
the State Public Utilities Commission, or its employees.
(Business &Professions Code �� 7521 and 7583.)
Current law provides that no person licensed as a PPO shall do
any of the following:
Fail to properly maintain an accurate and current record
of all firearms or other deadly weapons that are in the
possession of the licensee or of any employee while on
duty. Within seven days after a licensee or his or her
employees discover that a deadly weapon that has been
recorded as being in his or her possession has been
misplaced, lost, or stolen, or is in any other way missing,
the licensee or his or her manager shall mail or deliver to
any local law enforcement agency that has jurisdiction, a
written report concerning the incident. The report shall
describe fully the circumstances surrounding the incident,
any injuries or damages incurred, the identity of all
participants, and whether a police investigation was
conducted.
Fail to properly maintain an accurate and current record
of the name, address, commencing date of employment, and
position of each employee, and the date of termination of
employment when an employee is terminated.
Fail to properly maintain an accurate and current record
of proof of completion by each employee of the licensee of
the course of training in the exercise of the power to
arrest, the security officer skills training as specified,
and the annual practice and review as specified.
Fail to certify an employee's completion of the course
of training in the exercise of the power to arrest prior to
placing the employee at a duty station.
Fail to certify proof of current and valid registration
(More)
AB 2220 (Daly)
Page 6
for each employee who is subject to registration.
Permit any employee to carry a firearm or other deadly
weapon without first ascertaining that the employee is
proficient in the use of each weapon to be carried. With
respect to firearms, evidence of proficiency shall include
a certificate from a firearm training facility approved by
the director certifying that the employee is proficient in
the use of that specified caliber of firearm and a current
and valid firearm qualification permit issued by the
department. With respect to other deadly weapons, evidence
of proficiency shall include a certificate from a training
facility approved by the director certifying that the
employee is proficient in the use of that particular deadly
weapon.
Fail to deliver to the director a written report
describing fully the circumstances surrounding the
discharge of any firearm, or physical altercation with a
member of the public while on duty, by a licensee or any
officer, partner, or employee of a licensee while acting
within the course and scope of his or her employment within
seven days after the incident. For the purposes of this
subdivision, a report shall be required only for physical
altercations that result in any of the following: (1) the
arrest of a security guard, (2) the filing of a police
report by a member of the public, (3) injury on the part of
a member of the public that requires medical attention, or
(4) the discharge, suspension, or reprimand of a security
guard by his or her employer. The report shall include, but
not be limited to, a description of any injuries or damages
incurred, the identity of all participants, and whether a
police investigation was conducted. Any report may be
investigated by the director to determine if any
disciplinary action is necessary.
Fail to notify the bureau in writing and within 30 days
that a manager previously qualified pursuant to this
chapter is no longer connected with the licensee.
(More)
AB 2220 (Daly)
Page 7
Fail to administer to each registered employee of the
licensee, the review or practice training required, as
specified.
(Business and Professions Code � 7583.2.)
This bill would codify the following intent language:
"The Legislature finds and declares that current
practices and statutes authorize the purchase,
registration, and ownership of firearms by individuals, but
not by business entities."
"It is the intent of the Legislature in enacting this
chapter to allow business ownership and registration of
firearms in the case of licensed PPOs who are actively
providing armed private contract security services. It is
further the intent of the Legislature to establish
procedures whereby a PPO may assign firearms it owns to its
employees who are licensed to carry firearms and that
assignment of a firearm by a PPO to that employee would not
constitute a loan, sale, or transfer of a firearm."
This bill defines a PPO, for purposes of its provisions, as a
Private Patrol Operator licensed pursuant to Chapter 11.5
(commencing with Section 7580) of Division 3 of the Business and
Professions Code.
This bill provides that a PPO may be the legal and registered
owner of a firearm.
This bill would require DOJ to do the following:
Modify the Dealers' Record of Sale (DROS) form to allow
a PPO to be listed as the purchaser and legal owner of a
(More)
AB 2220 (Daly)
Page 8
firearm. The form shall also require the PPO to identify
its type of business formation and to include any tax
identification number of the PPO that may be required by
the department.
Modify the DROS form to require the PPO to designate a
"firearms custodian" for the PPO. The firearms custodian
shall possess a valid firearm qualification card issued by
the Department of Consumer Affairs.
This bill requires the PPO, on a separate form, and in a manner
prescribed by the department, to:
Identify the person who is designated by the PPO as the
firearms custodian for the PPO.
If a firearms custodian ceases to be employed by the
PPO, or otherwise becomes ineligible to be the firearms
custodian, the PPO shall inform the department of that
fact, in a manner prescribed by the department, and the PPO
shall have 30 days to designate a replacement firearms
custodian.
No PPO may assign a firearm pursuant to this article if
there is no designated firearms custodian for the PPO.
This bill provides that:
DOJ shall prescribe a "Certificate of Assignment" or
"COA." The COA shall contain the same fields as the DROS
form, and shall be used to identify the employee of the PPO
who has been assigned a firearm by the PPO pursuant to this
article.
(More)
AB 2220 (Daly)
Page 9
Upon the PPO assigning a firearm to an employee who is a
security guard licensed, as specified, the licensed
security guard shall complete the COA, and the PPO shall
file the COA with DOJ in a timely manner as prescribed by
DOJ.
This bill provides that the department shall charge a fee, to be
deposited in the DROS account, not to exceed the reasonable
costs to the department for filing and processing a form
identifying the firearms custodian of the PPO, for filing and
processing a COA, and for costs incurred in enforcing the
provisions of this article, including, but not limited to,
processing forms required by this article, and entering
information obtained pursuant to this article into the
department's Automated Firearms System and other databases as
deemed necessary by the department.
This bill provides that, if the PPO ceases to do business,
ceases to possess a valid PPO license as determined by the
Director of Consumer Affairs, ceases as a business entity, or
changes its type of business formation, the PPO shall, within 30
days and unless otherwise prohibited by law, complete new DROS
forms for all PPO-owned firearms and transfer those firearms to
a new owner.
This bill provides that, notwithstanding any other law, an
assignment of a firearm pursuant to this article is not a loan,
sale, or transfer of a firearm.
This bill provides that within 48 hours of the PPO's request,
for any reason, or within 48 hours of separation of employment
or revocation of the firearm qualification card, the security
guard shall return to the PPO the firearm owned by the PPO. A
failure to do this would be a misdemeanor.
This bill would amend the provisions relating to the permissible
uses of the DROS account to permit use of DROS funds to
implement the provisions of this security guard firearm transfer
program.
(More)
AB 2220 (Daly)
Page 10
RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
For the last several years, severe overcrowding in California's
prisons has been the focus of evolving and expensive litigation
relating to conditions of confinement. On May 23, 2011, the
United States Supreme Court ordered California to reduce its
prison population to 137.5 percent of design capacity within two
years from the date of its ruling, subject to the right of the
state to seek modifications in appropriate circumstances.
Beginning in early 2007, Senate leadership initiated a policy to
hold legislative proposals which could further aggravate the
prison overcrowding crisis through new or expanded felony
prosecutions. Under the resulting policy, known as "ROCA"
(which stands for "Receivership/ Overcrowding Crisis
Aggravation"), the Committee held measures that created a new
felony, expanded the scope or penalty of an existing felony, or
otherwise increased the application of a felony in a manner
which could exacerbate the prison overcrowding crisis. Under
these principles, ROCA was applied as a content-neutral,
provisional measure necessary to ensure that the Legislature did
not erode progress towards reducing prison overcrowding by
passing legislation, which would increase the prison population.
In January of 2013, just over a year after the enactment of the
historic Public Safety Realignment Act of 2011, the State of
California filed court documents seeking to vacate or modify the
federal court order requiring the state to reduce its prison
population to 137.5 percent of design capacity. The State
submitted that the, ". . . population in the State's 33 prisons
has been reduced by over 24,000 inmates since October 2011 when
public safety realignment went into effect, by more than 36,000
inmates compared to the 2008 population . . . , and by nearly
42,000 inmates since 2006 . . . ." Plaintiffs opposed the
state's motion, arguing that, "California prisons, which
currently average 150% of capacity, and reach as high as 185% of
capacity at one prison, continue to deliver health care that is
constitutionally deficient." In an order dated January 29,
2013, the federal court granted the state a six-month extension
to achieve the 137.5 % inmate population cap by December 31,
(More)
AB 2220 (Daly)
Page 11
2013.
The Three-Judge Court then ordered, on April 11, 2013, the state
of California to "immediately take all steps necessary to comply
with this Court's . . . Order . . . requiring defendants to
reduce overall prison population to 137.5% design capacity by
December 31, 2013." On September 16, 2013, the State asked the
Court to extend that deadline to December 31, 2016. In
response, the Court extended the deadline first to January 27,
2014 and then February 24, 2014, and ordered the parties to
enter into a meet-and-confer process to "explore how defendants
can comply with this Court's June 20, 2013 Order, including
means and dates by which such compliance can be expedited or
accomplished and how this Court can ensure a durable solution to
the prison crowding problem."
The parties were not able to reach an agreement during the
meet-and-confer process. As a result, the Court ordered
briefing on the State's requested extension and, on February 10,
2014, issued an order extending the deadline to reduce the
in-state adult institution population to 137.5% design capacity
to February 28, 2016. The order requires the state to meet the
following interim and final population reduction benchmarks:
143% of design bed capacity by June 30, 2014;
141.5% of design bed capacity by February 28, 2015; and,
137.5% of design bed capacity by February 28, 2016.
If a benchmark is missed the Compliance Officer (a position
created by the February 10, 2016 order) can order the release of
inmates to bring the State into compliance with that benchmark.
In a status report to the Court dated May 15, 2014, the state
reported that as of May 14, 2014, 116,428 inmates were housed in
the State's 34 adult institutions, which amounts to 140.8% of
design bed capacity, and 8,650 inmates were housed in
out-of-state facilities.
The ongoing prison overcrowding litigation indicates that prison
capacity and related issues concerning conditions of confinement
remain unresolved. While real gains in reducing the prison
(More)
AB 2220 (Daly)
Page 12
population have been made, even greater reductions may be
required to meet the orders of the federal court. Therefore,
the Committee's consideration of ROCA bills -bills that may
impact the prison population - will be informed by the following
questions:
Whether a measure erodes realignment and impacts the
prison population;
Whether a measure addresses a crime which is directly
dangerous to the physical safety of others for which there
is no other reasonably appropriate sanction;
Whether a bill corrects a constitutional infirmity or
legislative drafting error;
Whether a measure proposes penalties which are
proportionate, and cannot be achieved through any other
reasonably appropriate remedy; and,
Whether a bill addresses a major area of public safety
or criminal activity for which there is no other
reasonable, appropriate remedy.
COMMENTS
1. Need for the Bill
According to the author:
AB 2220 requires all private patrol operators to carry
minimum liability and bodily insurance coverage,
provides an exemption from firearm recertification for
law enforcement officers working as security guards,
and allows patrol operators to own firearms and issue
them to their employees.
Currently, the process of outfitting a security guard
with a firearm consists with an owner or manager of
PPO registering a firearm under his or her own name.
The firearm is then lawfully loaned to a security
guard for 30 days, with a new firearm administered
every six months.
Having a company's weapon cache registered to one
designated weapon's custodian presents an array of
(More)
AB 2220 (Daly)
Page 13
issues if and when that employee chooses to leave
their employment with the company.
This bill will mitigate these issues and allow for a
company to consistently keep their weapons cache
registered under the company name, assigning the
firearm on a need-be basis to qualified employees.
The use of a Legal Owner and Registered Owner format
will also simplify identification of who possesses a
firearm, thereby enhancing public safety
To be armed, the employee will also be required to
possess a valid Guard Card, a Firearm Qualification
Card, and a Handgun Safety Certificate prior to being
issued a Certificate of Assignment for the firearm.
The employee will then effectively be the weapon's
Registered 'Assigned' Owner.
Under AB 2220, the assignment of a weapon from a
registered company to a designated employee would not
constitute a loan, sale or transfer of the weapon.
Companies will be required to fill out a Dealers'
Record of Sale (DROS) for the purchase and initial
registration of the weapon and, with the required
Department of Justice's (DOJ) modifications to the
DROS, will also include the information for the
assigned employee. These changes to the DROS and
additional processing on behalf of the DOJ will be
mitigated by imposing a reasonable fee for
enforcement. Private Patrol Operators will still be
required to have a firearms custodian.
AB 2220 streamlines the process through which private
patrol operators assign firearms to their employees,
while updating general operating procedures so that
the public is provided adequate protection.
(More)
2. Effect of This Bill
PPOs are licensed and regulated by the Department of Consumer
Affairs, Bureau of Security and Investigative Services.
Possession and use of firearms by employees of PPO's is
specifically regulated. Among other requirements, PPO's must
maintain an accurate and current record of all firearms or other
deadly weapons that are in their possession or the possession of
any employee while on duty. PPO's are also required, within
seven days after a licensee or his or her employees discover
that a deadly weapon that has been recorded as being in his or
her possession has been misplaced, lost, or stolen, or is in any
other way missing, to file a written report of this incident
with local law enforcement. (Business and Professions Code �
7583.2.)
Because current law does not allow a company to be the legal
owner of a firearm (other than assault weapons), according to
the author, PPO's have been using the provisions of current law
which allow for firearms to be infrequently loaned to a person
known to the owner, as a means of providing firearms to their
employees. Specifically, that section authorizes a firearm to
be loaned between persons who are personally known to each
other, if all of the following requirements are satisfied:
The loan is infrequent, meaning, for handguns, less than
six transactions per calendar year and for firearms other
than handguns, occasional and without regularity;
The loan is for any lawful purpose;
The loan does not exceed 30 days in duration; and,
If the firearm is a handgun, the individual being loaned
the handgun shall have a valid handgun safety certificate.
(Penal Code � 27880)
This practice would appear to be both burdensome and may not
comply with the strict letter of the law, since loans of
firearms under the provision the PPO's appear to be relying on
are required to occur no more than six times per year. (Penal
Code � 16730(a)(1).)
This bill would make an exception to normal firearms ownership
(More)
AB 2220 (Daly)
Page 15
laws by authorizing PPO's to be the "legal" owner of a firearm
and to "assign" that firearm to an employee. The PPO would be
required to notify DOJ of the assignment of the firearm to the
employee on a form designed by DOJ and DOJ would also be
required to create a new form known as a "Certificate of
Assignment" or "COA." The COA would contain the same fields as
the DROS form, and would be used to identify the employee of the
PPO who has been assigned a firearm by the PPO.
The bill also requires DOJ to modify the DROS form to require
the PPO to designate a "firearms custodian" for the PPO. The
firearms custodian would be required to possess a valid firearm
qualification card issued by the Department of Consumer Affairs.
This bill also would require the PPO, on a separate form, to:
Identify the person who is designated by the PPO as the
firearms custodian for the PPO.
If a firearms custodian ceases to be employed by the
PPO, or otherwise becomes ineligible to be the firearms
custodian, the PPO shall inform the department of that
fact, in a manner prescribed by the department, and the PPO
shall have 30 days to designate a replacement firearms
custodian.
***************