ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

ASSEMBLY, No. 1043

with Assembly committee amendments

STATE OF NEW JERSEY

DATED: MARCH 3, 1997

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1043 (1R), with committee amendments.

      Assembly Bill No. 1043 (1R), as amended, requires the licensing of private security officers (guards) and the security officers of State and local governments and their agencies by the Department of Law and Public Safety. Employees of private detective agencies who work as security officers, in-house security officers, and armored car security officers are required to be licensed if they are employed by an entity with more than 50 employees. Licensees are required to pass criminal history background checks, complete eight hours of initial training by certified instructors and eight hours of on-the-job training, pass a written examination and submit a personal history statement. Armed security officers are also required to complete a firearms training course. Security officers employed on the effective date of this act would become licensed if they pass the written examination or, within 120 days after failing the examination, complete the bill's training requirement.

      The bill creates an eleven-member advisory board and a Division of State Licensing of Security Guards, both in the Department of Law and Public Safety. The division will review the background statements of applicants, approve training courses, certify instructors, approve a written examination, monitor annual criminal history checks of licensees, provide staff for the board and maintain a computerized registry of licensees.

FISCAL IMPACT:

      In the legislative fiscal estimate to this bill, the following information was offered: the advisory board is to establish fees to fund the administration of the licensing program; requires the employer to pay the costs of licensure and training for persons hired prior to the effective date; and, for persons licensed after the effective date, these costs may be paid either by the employer or the applicant.

      Without precise information on the number of security officers who would be licensed under this bill, the Office of Legislative Services (OLS) relied on data provided by the Bureau of Occupational Research in the N.J. Department of Labor. A survey conducted in 1994 indicated that approximately 32,700 private security guards were employed. This was projected to 35,760 persons employed in this occupation in 1997. With a of 10 percent a year turnover rate, approximately 3,570 persons would apply for licenses in the first year.

      The OLS estimates the State cost of administering the provisions of this bill in the first year after enactment at $930,000; $872,000 in the second year; and $915,000 in the third year. Assuming the number of security officers to be 35,760, the division would need to charge an annual fee of approximately $26 per officer to defray its expenses.

COMMITTEE AMENDMENTS:

      The amendments extend the licensing provisions to the security officers of State and local governments and their agencies; exempts from licensing the employees of employers with 50 or fewer employees; and establishes specific requirements for training courses. The amendments require armored car companies to maintain general liability insurance of $500,000 per occurrence and $1,000,000 aggregate. The amendments increase from 90 days to 120 days certain periods for: certain temporary licenses; compliance with the bill's provisions for those employed on its effective date; and compliance with the bill's provisions for those licensed in another state. The amendments also make technical changes.