November 26, 2020
Selecting the Proper BSIS Business License
Or
Which BSIS License Do I Need for My Business?
By Alex Haddox, M.Ed.
This article is an effort to help new security employers determine which State of California business licenses are required. This article focuses on the private security employer licenses and does not address other regional and state licenses (city, county, secretary of state filings, etc.).
The state agency for California that oversees the private security industry is the Bureau of Security and Investigative Services (BSIS). The Bureau regulates “security” personnel through two practice acts in the Business and Professions Code (BPC): the Private Security Services Act (PSS Act) and the Proprietary Security Services Act (Proprietary Act). If a company is going to employ private security, the company must have one of two licenses:
- Private Patrol Operator (PPO)
- Proprietary Security Employer (PSE)
Definitions
Private Security Officer (PSO): Requires 16-hours of training. May not, ever, carry any weapon while on duty. May only work for a Proprietary Security Employer (PSE).
Security Guard (SG): Requires 40-hours of training. May carry weapons with additional, specific, training: Exposed Firearms Permit (16-hours of additional training), Baton (8-hours additional training), and Pepper Spray (4-hours training). May work for a Private Patrol Operator or Proprietary Security Employer (in an unarmed capacity).
Private Patrol Operator (PPO)
The Private Patrol Operator is commonly understood as a "guard company." This business contracts its own employees to provide security services to a client. For example, a bank that wants armed security to protect assets, patrol the parking lot, and be visible inside the branch, would hire a PPO to provide the service. Note the security guards are and remain employees of the PPO, not the client bank.
A PPO may employ unarmed or armed security guards.
Qualified Manager1
An individual, partnership, or corporation seeking a license as a Private Patrol Operator must specify in the application the individual who will manage the business on a day-to-day basis.
This individual is called the Qualified Manager. (An owner, partner, or corporate officer may serve as the Qualified Manager, or may hire someone to fill this role.) To be eligible to apply for licensure as a Qualified Manager, you must meet the following requirements:
- Be 18 or older.
- Undergo a criminal history background check through the California Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).
- Have committed no offense or violation of the Private Security Services Act that would be grounds for license suspension or revocation.
- Pass a two-hour multiple-choice examination covering the Private Security Services Act and other rules and regulations, business knowledge, emergency procedures, security functions, and use of deadly weapons.
- Submit the Personal Identification Form; with one recent passport-quality photograph and the Qualifying Experience Form
Business and Professions Code, Division 3. Professions and Vocations Generally, Chapter 11.5. Private Security Services, Article 4. Private Patrol Operators.
7583.1.
- An applicant, or his or her manager, for a license as a private patrol operator shall have had at least one year of experience as a patrolperson, guard or watchman, or the equivalent thereof as determined by the director. An applicant shall substantiate the claimed year of qualifying experience and the exact details as to the character and nature thereof by written certifications from the employer, subject to independent verification by the chief as he or she may determine. In the event of inability of an applicant to supply the written certifications from the employer in whole or in part, applicants may offer other written certifications from other than employers substantiating employment for consideration by the chief.
- An individual who, upon the determination of the chief, has served in the armed services and possesses the proper skills may be eligible to take the private patrol operator licensing examination. In that case the chief may waive any other required training courses, as he or she determines. However, if the applicant fails the licensing examination, the chief may not thereafter waive completion of any required training courses.
Proprietary Private Security Employer (PSE)
A Proprietary Private Security Employer (PSE) is a person or business that employs one or more unarmed individuals that wear a distinctive uniform, interact with the public, and provide security services only for that employer. Please note that a PSE may not subcontract their security services.
NOTE: The PSE cannot employ armed PSO or armed SG (firearm or baton). All security staff are unarmed only.
Example businesses that might require a Proprietary Private Security Employer (PSE) license:
- Retail stores
- Private schools
- Religious institutions
- Individual(s) hiring executive protection (bodyguard)
A defining factor for requiring a PSE license is if security staff are direct employees of the business. Exemptions from the PSE license requirement are listed in the Proprietary Security Services Act, Article 4. Conduct of Business, Section 7574.14.
Business and Professions Code, Division 3. Professions and Vocations Generally, Chapter 11.4. Proprietary Security Services, Article 4. Conduct of Business.
7574.13.
- An applicant seeking registration as a proprietary private security employer shall apply to the department on forms provided by the department.
- An application for registration as a proprietary private security employer shall include, but not be limited to, a fee that shall be at least three hundred fifty dollars ($350) and may be increased to an amount not to exceed three hundred eighty-five dollars ($385).
- Upon approval of an application for registration as a proprietary private security employer by the director, the chief shall cause to be issued to the applicant a registration certificate in a form approved by the director. A registration certificate shall be valid for two years from the date of issue.
- A registered proprietary private security employer shall apply for renewal biennially with the department on forms provided by the department. The department shall charge a renewal fee that shall be at least three hundred fifty dollars ($350) and may be increased to an amount not to exceed three hundred eighty-five dollars ($385).
- The fee for the replacement of a lost or destroyed registration card shall be twenty-five dollars ($25). The request for a replacement of a registration card, license, or certificate shall be made in the manner prescribed by the bureau.
- This section shall become operative on July 1, 2018.
7574.20.
No proprietary private security employer shall sublet proprietary private security officers employed by them to any other person, business, or entity. Nothing in this section shall be construed to prohibit an employer from transferring employees from one location to another or from one subsidiary to another.
7574.21.
A person registered as a proprietary private security employer shall do the following with respect to proprietary private security officers in his or her employment:
- Maintain an accurate and current record of the name, address, commencing date of employment, and position of each proprietary private security officer, and the date of termination of employment when a proprietary private security officer is terminated.
- Maintain an accurate and current record of proof of completion by each proprietary private security officer of the training described in Section 7574.18.
About the author:
Mr. Haddox has more than a decade of firearms instruction experience. He is a licensed firearms instructor in multiple states and the NRA, holds a Black Belt in American Kenpo, and a Masters degree in Adult Education and Training. He is a BSIS-licensed armed guard, firearms instructor, and baton instructor.
BSIS PPO Fact Sheet https://www.bsis.ca.gov/forms_pubs/ppo_fact.shtml
Information provided on this site is for educational purposes. It is not legal advice.