BILL NUMBER: AB 2220	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 5, 2014
	AMENDED IN ASSEMBLY  APRIL 10, 2014

INTRODUCED BY   Assembly Member Daly

                        FEBRUARY 20, 2014

   An act to amend Sections 7583.32 and 7583.40 of, and to repeal and
add Section 7583.39 of, the Business and Professions Code,   and
to amend Section 28235 of, and to add Chapter 4.1 (commencing with
Section 28010) to Division 6 of Title   4 of Part 6 of, the
Penal Code,   relating to private security services.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2220, as amended, Daly. Private security services: private
patrol operators.
   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. The act
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 a 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
as well as a certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
   The act requires a private patrol operator licensee, qualified
manager of a licensee, or security guard who, in the course of his or
her employment, may be required to carry a firearm  ,  to
satisfy specified requirements prior to carrying a firearm, including
the completion of a course of training in the carrying and use of
firearms. Existing law exempts from this requirement a duly appointed
peace officer, as defined  , who has successfully completed a
course of study in the use of firearms  . The act prohibits the
bureau from renewing an expired firearms qualification card unless
 ,   among other requirements,  the applicant has
requalified on the range and successfully passed a written
examination, as specified.
   This bill would exempt a duly appointed peace officer, as defined,
from the requirements of requalifying on the range and passing the
written examination. 
   Existing law generally requires a transfer of a firearm to be
conducted by a firearms dealer, and requires specified information
about the purchaser and the firearm in the transaction to be
submitted to the Department of Justice. The department has created a
form for this purpose known as the Dealers' Record of Sale form or
DROS form. Existing law authorizes the department to charge a fee for
the costs associated with the submission of the DROS form. Existing
law does not authorize a business entity to own or register a
firearm.  
   This bill would establish procedures allowing a Private Patrol
Operator (PPO) business entity to be the legal and registered owner
of a firearm. The bill would state findings and declarations of the
Legislature, and express the intent of the Legislature in connection
with these procedures. The bill would direct the Department of
Justice to modify the DROS form and create a certificate of
assignment (COA), and to charge a reasonable fee for the filing and
processing of the COA for these purposes and for enforcement of these
provisions. Among other things, the bill would allow a security
guard to be assigned a firearm by the PPO through a COA, as
specified, and for a firearm custodian to be designated by the PPO.
The bill would require submission to the Department of Justice of
information pertaining to the ownership of a firearm by a PPO, the
assignment of a firearm by a PPO, and the identity of a PPO firearms
custodian, as specified. The bill would provide that an assignment of
a firearm by a PPO to a security guard employee for purposes of
employment duties would not constitute a loan, sale, or transfer of a
firearm. The bill would require a security guard, upon request by
the PPO, or upon separation of employment or revocation of the
security guard's firearm qualification card, and within 48 hours, to
return the assigned firearm to the PPO. The bill would provide that
the failure of a security guard to return an assigned firearm as
required would be a misdemeanor. By creating a new crime, this bill
would impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7583.32 of the Business and Professions Code is
amended to read:
   7583.32.  (a) A firearms qualification card expires two years from
the date of issuance, if not renewed. A person who wishes to renew a
firearms qualification card shall file an application for renewal at
least 60 days prior to the card's expiration. A person whose card
has expired shall not carry a firearm until he or she has been issued
a renewal card by the bureau.
   (b) The bureau shall not renew a firearms qualification card
unless all of the following conditions are satisfied:
   (1) The cardholder has filed with the bureau a completed
application for renewal of a firearms qualification card, on a form
prescribed by the director, dated and signed by the applicant under
penalty of perjury certifying that the information on the application
is true and correct.
   (2) The applicant has requalified on the range and has
successfully passed a written examination based on course content as
specified in the firearms training manual approved by the department
and taught at a training facility approved by the bureau.
   (3) The application is accompanied by a firearms requalification
fee as prescribed in this chapter.
   (4) The applicant has produced evidence to the firearm training
facility, either upon receiving his or her original qualification
card or upon filing for renewal of that card, that he or she is a
citizen of the United States or has permanent legal alien status in
the United States. Evidence of citizenship or permanent legal alien
status is that deemed sufficient by the bureau to ensure compliance
with federal laws prohibiting possession of firearms by persons
unlawfully in the United States and may include, but not be limited
to, Department of Justice, Immigration and Naturalization Service
Form I-151 or I-551, Alien Registration Receipt Card, naturalization
documents, or birth certificates evidencing lawful residence or
status in the United States.
   (c) An expired firearms qualification card may not be renewed. A
person with an expired registration is required to apply for a new
firearms qualification in the manner required of persons not
previously registered. A person whose card has expired shall not
carry a firearm until he or she has been issued a new firearms
qualification card by the bureau.
   (d) Paragraph (2) of subdivision (b) shall not apply to a duly
appointed peace officer, as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 of the Penal Code.
  SEC. 2.  Section 7583.39 of the Business and Professions Code is
repealed.
  SEC. 3.  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 with the bureau the following:
   (a) An insurance policy, as defined in Section 7583.40.
   (b) A certificate of workers' compensation coverage for its
employees issued by an admitted insurer.
  SEC. 4.  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 that provides minimum
limits of insurance of one million dollars ($1,000,000) for any one
loss due to bodily injury or death and one million dollars
($1,000,000) for any one loss due to injury or destruction of
property.
   SEC. 5.    Chapter 4.1 (commencing with Section
28010) is added to Division 6 of Title 4 of Part 6 of the  
Penal Code   , to read:  
      CHAPTER 4.1.  REGISTRATION AND ASSIGNMENT OF FIREARMS BY
PRIVATE PATROL OPERATORS


   28010.  (a) The Legislature finds and declares that current
practices and statutes authorize the purchase, registration, and
ownership of firearms by an individual, but not by a business entity.

   (b) It is the intent of the Legislature in enacting this chapter
to allow business ownership and registration of firearms in the case
of licensed Private Patrol Operators (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.
   (c) It is the intent of the Legislature to require notification of
the Bureau of Security and Investigative Services any time a
security guard is listed on the Prohibited Armed Persons File so that
the bureau may proceed with appropriate action regarding the
licensing of the employee.
   (d) For purposes of this chapter, "private patrol operator" or
"PPO" means a private patrol operator licensed pursuant to Chapter
11.5 (commencing with Section 7580) of Division 3 of the Business and
Professions Code.
   (e) For purposes of this chapter, "bureau" means the Bureau of
Security and Investigative Services within the Department of Consumer
Affairs.
   (f) For purposes of this chapter, "department" means the
Department of Justice.
   28012.  (a) A PPO may be the legal and registered owner of a
firearm.
   (b) The department shall modify the department's Dealers' Record
of Sale (DROS) form to allow a PPO to be listed as the purchaser and
legal owner of a firearm. The form shall also require the PPO to
identify its type of business formation and to include any tax
identification number or other identifying number of the PPO that may
be required by the department.
   (c) (1) The department shall modify the department's DROS form to
require the PPO to designate a "firearms custodian" for the firearm
owned by the PPO that is listed in the DROS. A firearms custodian
shall possess a valid firearms qualification permit issued by the
Department of Consumer Affairs. A firearm shall not be assigned by a
PPO pursuant to this chapter if the PPO does not have a designated
firearms custodian for the firearm. A firearms custodian is
responsible for the tracking, safekeeping, and inventory of those
firearms of the PPO for which the custodian is designated, and shall
serve as a point of contact for the department regarding the firearms
for which the custodian is designated.
   (2) If a firearms custodian ceases to be employed by the PPO, or
otherwise becomes ineligible to be the firearms custodian, the PPO
shall notify the department of that fact, in a manner prescribed by
the department, and the PPO shall designate a replacement firearms
custodian within 30 days of that notice.
   (d) A security guard shall possess a valid firearm qualification
permit prior to receiving a firearm from a PPO pursuant to a
Certificate of Assignment (COA). A firearm shall only be assigned by
a PPO to a security guard who is assigned to work at an account of
the PPO that requires the security guard to be armed.
   (e) (1) The department 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 chapter.
   (2) Upon the PPO assigning a firearm to an employee who is a
security guard licensed pursuant to Chapter 11.5 (commencing with
Section 7580) of Division 3 of the Business and Professions Code, the
licensed security guard shall complete the COA, and the PPO shall
file the COA with the department in a timely manner as prescribed by
the department.
   (f) The department shall cause the information contained on the
COA to be entered into the Automated Firearms System in a timely
manner.
   (g) If a security guard becomes listed on the Prohibited Armed
Persons File, the department shall immediately notify the bureau of
the listing by secured electronic delivery. Upon that notification,
the bureau shall take appropriate action regarding the security guard
and, if necessary, the PPO. In addition, the department shall notify
the PPO, in the manner the department deems appropriate, that the
PPO employee is prohibited from being armed. This chapter does not
prohibit the department from also notifying the bureau if a security
guard has been arrested and charged with an offense that, upon
conviction, would constitute a basis for revocation of a firearms
qualification permit or security guard registration.
   28014.  The department shall charge a fee not to exceed the
reasonable costs to the department for filing and processing a COA,
and for the costs incurred in enforcing this chapter, including, but
not limited to, entering information obtained pursuant to this
chapter into the Automated Firearms System and other databases as
deemed necessary by the department. The fee shall be deposited in the
Dealers' Record of Sale Special Account.
   28016.  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.
   28018.  Notwithstanding any other law, an assignment of a firearm
pursuant to this chapter shall not constitute a loan, sale, or
transfer of a firearm.
   28020.  (a) 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 and listed on a COA.
   (b) The failure of a security guard to comply with subdivision (a)
is a misdemeanor.
   (c) This chapter does not limit the right of a licensed security
guard to use, possess, or otherwise lawfully carry a firearm owned by
that licensed security guard. 
   SEC. 6.    Section 28235 of the   Penal Code
  is amended to read: 
   28235.  All money received by the department pursuant to this
article shall be deposited in the Dealers' Record of Sale Special
Account of the General Fund, which is hereby created, to be
available, upon appropriation by the Legislature, for expenditure by
the department to offset the costs incurred pursuant to any of the
following:
   (a) This article.
   (b) Section 18910.
   (c) Section 27555.
   (d) Subdivisions (d) and (e) of Section 27560. 
   (e) Chapter 4.1 (commencing with Section 28010).  
   (e) 
    (f)  Article 6 (commencing with Section 28450). 

   (f) 
    (g)  Section 31110. 
   (g) 
    (h)  Section 31115. 
   (h) 
    (i)  Subdivision (a) of Section 32020. 
   (i) 
    (j)  Section 32670. 
   (j) 
    (k)  Section 33320.
   SEC. 7.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.