EXPERT TESTIMONY PRESENTED BY IRA A. LIPMAN

CHAIRMAN AND PRESIDENT GUARDSMARK, INC.

TO THE UNITED STATES SENATE COMMITTEE ON GOVERNMENTAL AFFAIRS SUBCOMMITTEE ON GENERAL SERVICES, FEDERALISM AND THE DISTRICT OF COLUMBIA

WASHINGTON, D.C.

JULY 22, 1992

CHAIRMAN, MEMBERS OF THE COMMITTEE

THANK YOU FOR YOUR INVITATION TO TESTIFY AT THIS HEARING.

IN FEBRUARY 1989, I TESTIFIED ON THIS VERY TOPIC-THE NEED FOR STANDARDS AND REGULATION IN THE PRIVATE SECURITY INDUSTRY-BEFORE THE CRIME AND CORRECTIONS COMMITTEE OF THE NEW YORK STATE SENATE.

THROUGHOUT MY CAREER, I HAVE MADE IT A PRIORITY TO RAISE THE STANDARDS OF THE PRIVATE SECURITY INDUSTRY. THAT IS WHY I AM HERE TODAY.

IN MY REMARKS, I WOULD LIKE TO TELL YOU WHY IT IS SO IMPORTANT TO RAISE THE STANDARDS IN THE INDUSTRY AND WHY THIS LEGISLATION, INTRODUCED BY THE HONORABLE ALBERT GORE, JR., WHILE NOT A PANACEA, IS AT LEAST A PRACTICAL START.

BUT FIRST, I’D LIKE TO TELL YOU A LITTLE ABOUT THE CIRCUMSTANCES THAT

HAVE CONTRIBUTED TO MY POINT OF VIEW.

I FOUNDED GUARDSMARK IN 1963. I BUILT IT FROM SCRATCH INTO A $100 MILLION-A-YEAR COMPANY BY OFFERING THE HIGHEST QUALITY PRIVATE SECURITY SERVICES. FOR GUARDSMARK, THIS RELENTLESS QUEST FOR HIGH STANDARDS HAS PAID OFF. WE ARE NOW THE 5TH LARGEST PRIVATE SECURITY COMPANY-WITHOUT ACQUISITION-OF MORE THAN 13,000 IN THE UNITED STATES. WE EMPLOY MORE THAN 8,000 PEOPLE IN 90 OFFICES IN 42 STATES. WE SERVICE OVER 400 CITIES FROM COAST TO COAST. WE ARE KNOWN FOR OUR QUALITY PERSONNEL AND OUR RIGOROUS STANDARDS OF SCREENING. I AM VERY PROUD THAT IN MARCH, TIME MAGAZINE SAID THAT “MANY SECURITY EXPERTS CONSIDER [GUARDSMARK] THE BEST NATIONAL FIRM IN THE BUSINESS.”

MY VIEWS ARE BASED ON EXPERIENCE GAINED FROM MORE THAN 40 YEARS- MOST OF MY LIFE AND MY ENTIRE PROFESSIONAL CAREER-IN THE PRIVATE SECURITY INDUSTRY. THEY ARE BASED ON KNOWLEDGE GAINED FROM ADDRESSING AND SOLVING IN MY OWN COMPANY MANY OF THE CONCERNS THAT BRING US HERE TODAY. THEY ARE BASED ON MY COMPANY’S TRACKING

OF CRIMES BY PRIVATE SECURITY GUARDS. AND THEY ARE BASED ON AN AWARENESS GAINED FROM DEMONSTRATED CONCERN ABOUT, AND INVOLVEMENT IN, EVERY ASPECT OF THE INDUSTRY.

IN THE YEARS THAT I HAVE STUDIED THE INDUSTRY, THERE HAVE BEEN MANY CHANGES, BUT THE MOST IMPORTANT IS THE PHENOMENAL GROWTH OF PRIVATE SECURITY AND THE NEW POSITION THAT PRIVATE SECURITY IS ASSUMING IN OUR SOCIETY.

IN 1980, THERE WERE 1 MILLION PRIVATE SECURITY PERSONNEL IN THE UNITED STATES. IN 1990, THERE WERE 1.5 MILLION. BY THE YEAR 2000, THERE WILL BE NEARLY 2 MILLION-A 100 PERCENT INCREASE IN 20 YEARS. BY THE END OF THE DECADE, PRIVATE SECURITY OFFICERS WILL OUTNUMBER PUBLIC LAW ENFORCEMENT OFFICERS BY THREE TO ONE.

NOT ONLY HAS PRIVATE SECURITY GROWN, IT HAS CHANGED SO SIGNIFICANTLY AND SO RAPIDLY THAT THE PUBLIC PERCEPTION OF THE INDUSTRY HAS NOT CAUGHT UP WITH THE REALITY. IN A WORD, THE INDUSTRY IS MISUNDERSTOOD.

ALTHOUGH MANY STILL THINK OF SECURITY GUARDS AS AGING PENSIONERS, TODAY’S SECURITY PERSONNEL ARE MORE LIKELY THAN EVER BEFORE TO BE YOUNG CAREER PROFESSIONALS WHO OPERATE CONTROL PANELS AT MULTI-MILLION-DOLLAR FACILITIES. INCREASINGLY, PROFESSIONALS AT THE TOP END OF THE INDUSTRY PERFORM EXACTING, COMPLEX, AND CRITICAL TASKS.

THE PHENOMENAL GROWTH IS DUE TO TWO TRENDS. THE FIRST IS THE METEORIC RISE IN CRIME OVER THE YEARS. IN 1991 ALONE, REPORTED VIOLENT CRIME ROSE 5 PERCENT OVERALL. ROBBERY ROSE 8 PERCENT, MURDER ROSE 7 PERCENT TO ANOTHER ALL-TIME HIGH, AND RAPE AND AGGRAVATED ASSAULT EACH ROSE 3 PERCENT. AND IT IS GENERALLY AGREED THAT REPORTED CRIME REPRESENTS ONLY A FRACTION OF THE CRIME THAT TAKES PLACE.

THE SECOND TREND IS THAT SEVERE AND ENTRENCHED FISCAL PROBLEMS AT LOCAL, STATE, AND NATIONAL LEVELS HAVE IMPEDED GROWTH IN PUBLIC SECTOR SECURITY JUST WHEN IT NEEDS TO EXPAND.

FROM 1980 TO THE YEAR 2000, PUBLIC LAW ENFORCEMENT WILL HAVE GROWN BY ONLY 14 PERCENT- FROM 600 THOUSAND TO 684 THOUSAND. CLEARLY, THESE NUMBERS ARE INSUFFICIENT TO SAFEGUARD OUR CITIZENS FROM THE SPREADING WEB OF CRIME.

THE INCREASING PROFESSIONALISM AT THE TOP END OF THE SECURITY INDUSTRY HAS ENABLED IT TO FILL THE SECURITY GAP CAUSED BY THE RISE IN CRIME RATES AND INSUFFICIENT FUNDING OF PUBLIC POLICE FORCES. BY SUPPLEMENTING AND REPLACING PUBLIC PERSONNEL, PRIVATE SECURITY HAS ALLOWED THE MOST EFFICIENT USE OF LIMITED PUBLIC RESOURCES AS

PUBLIC POLICE FORCES CONCENTRATE ON AREAS WHERE THEY CAN BE USED MOST EFFECTIVELY.

IT IS PRECISELY BECAUSE PRIVATE SECURITY HAS SUPPLEMENTED AND REPLACED PUBLIC LAW ENFORCEMENT IN SO MANY AREAS THAT MANY CITIZENS AUTOMATICALLY BELIEVE THAT PRIVATE PERSONNEL UNDERGO THE SAME RIGOROUS SCRUTINY AS PUBLIC POLICE OFFICERS. NOTHING COULD BE FARTHER FROM THE TRUTH.

THE SIMPLE TRUTH IS THAT THE PRIVATE SECURITY INDUSTRY HAS FAILED AT SELF REGULATION. IT HAS FAILED TO IMPOSE, ENFORCE, OR EVEN AGREE

ON MINIMUM SCREENING AND TRAINING STANDARDS.

AS A RESULT, THE RAPID GROWTH OF PRIVATE SECURITY HAS BEEN SCHIZOPHRENIC. AT ONE END OF THE INDUSTRY, THERE IS GREAT AND INCREASING PROFESSIONALISM. BUT AT THE OTHER END IS AN EVER GROWING NUMBER OF SECURITY FIRMS WHO CARE NOTHING ABOUT QUALITY SERVICE.

WITHOUT INDUSTRY STANDARDS TO LIVE UP TO, THESE FIRMS SIMPLY DO NOT SCREEN THEIR APPLICANTS PROPERLY. THEY DO NOT EVEN ATTEMPT TO CHECK APPLICANTS’ CRIMINAL RECORDS, MILITARY SERVICE RECORDS, PERSONAL REFERENCES, PREVIOUS EMPLOYERS, OR EDUCATIONAL CLAIMS. THEY DON’T TEST FOR LITERACY, THEY DON’T TEST FOR DRUG USE, AND THEY DON’T EVALUATE PSYCHOLOGICAL FITNESS.

AS A RESULT, TOO MANY OF THE SECURITY GUARDS WORKING IN THE UNITED

STATES TODAY ARE UNQUALIFIED, DISHONEST, UNRELIABLE, AND VIOLENT. MANY USE DRUGS AND HAVE CRIMINAL RECORDS. THERE ARE GUARDS WHO HEAR VOICES, ARE THRILLED AT THE SIGHT OF FIRE, OR FEEL BUGS CRAWLING ON THEIR BODIES. IT’S A PROBLEM FOR OUR SOCIETY. IT’S A PROBLEM FOR BUSINESS. IT’S A PROBLEM FOR EACH OF US INDIVIDUALLY. IT’S A TRAGIC SITUATION WITH TRAGIC CONSEQUENCES.

THESE GUARDS ARE GENERALLY LOW-PAID EMPLOYEES WHOSE ONLY HOPE OF STATUS AND AUTHORITY RESTS WITH THE UNIFORM THEY DON-OFTEN PREMATURELY; WITH THE GUN THEY MAY WIELD-OFTEN INAPPROPRIATELY; OR WITH THE INFORMATION THEY GARNER AND USE-OFTEN UNETHICALLY.

IN ONE MONTH LAST SUMMER, SECURITY GUARDS WERE INVOLVED IN AT LEAST 16 CRIMINAL INCIDENTS-INCLUDING HOMICIDES, CHILD

MOLESTATION, RAPE, AND ARSON.

EXAMPLES OF MISCREANT BEHAVIOR BY PRIVATE SECURITY GUARDS ARE LEGION.

WE KNOW THE CASES. -THE DORM SECURITY GUARD WHO RAPED A

COLUMBIA UNIVERSITY COED AND WHO TURNED OUT TO HAVE HAD A CRIMINAL RECORD UNKNOWN TO THE COMPANY THAT EMPLOYED HIM. -THE BROOKLYN SHOPPING MALL SECURITY GUARD WHO KILLED A TEENAGER AND WHO WAS ASSIGNED TO HIS PROTECTIVE POSITION BY AN EMPLOYER WHO DID NOT KNOW ABOUT THE GUARD’S CRIMINAL RECORD. -THE UNIVERSAL STUDIOS SECURITY GUARD ARRESTED FOR ARSON IN THE MULTI-MILLION-DOLLAR FIRE THAT GUTTED A MAJOR PORTION OF THE STUDIO’S LOT AND WHO, AFTER THE INCIDENT, WAS SAID BY HIS FAMILY TO BE EMOTIONALLY UNSTABLE. -THE LIST COULD GO ON AND ON.

FOR MANY YEARS MY COMPANY HAS COLLECTED CLIPPINGS OF THOUSANDS OF NEWSPAPER ARTICLES REPORTING THE SHOCKING STORIES OF CRIMES BY SECURITY GUARDS. HARDLY A WEEK GOES BY THAT THERE ISN’T A NEW AND TRAGIC STORY. AS A GRAPHIC REMINDER OF THE SHEER NUMBER OF THESE CRIMES, FOR THE PAST YEAR WE PUT COPIES OF THESE STORIES ON LARGE POSTER BOARDS-I HAVE SEVERAL WITH ME YOU CAN REVIEW. SADLY, WE FILL THESE BOARDS FASTER THAN YOU CAN POSSIBLY IMAGINE.

YOU HAVE PROBABLY SEEN THE RECENT TIME MAGAZINE AND WALL TREE’ JOURNAL ARTICLES WHICH ARE THE LATEST MEDIA EXPOSES ON THE TOPIC OF SECURITY GUARD CRIME. THESE ARTICLES SPECIFICALLY ADDRESS THE ISSUE OF POOR SCREENING AND HIRING PRACTICES AS A MAJOR CONTRIBUTOR TO THE PROBLEM. TIME REPORTED THAT ACCORDING TO A STUDY BY A NEW YORK STATE LEGISLATIVE COMMITTEE, 16 PERCENT OF GUARDS IN NEW YORK WERE HIRED DESPITE HAVING CRIMINAL RECORDS.

JUST AS THE PRIVATE SECURITY INDUSTRY HAS BEEN REMISS IN IMPOSING STANDARDS, SO TOO, STATE AND LOCAL GOVERNMENTS HAVE BEEN LAX IN IMPOSING STANDARDS BY REGULATION.

IN A COUNTRY WHERE STATES RUSH TO REGULATE OCCUPATIONS FROM BARBERS AND COSMETOLOGISTS TO LANDSCAPE ARCHITECTS AND POOL HALL OPERATORS, SECURITY PERSONNEL ARE OFTEN IGNORED.

ELEVEN STATES HAVE NO REGULATIONS OF ANY KIND-ANYONE CAN BECOME

A SECURITY GUARD. IN THESE STATES, SECURITY PERSONNEL CAN BE HIRED

IN THE MORNING AND BE ON POST BY LUNCHTIME, AND THE EMPLOYER HASN’T A CLUE ABOUT THE PERSON’S BACKGROUND.

THE OTHER STATES OPERATE UNDER A PATCHWORK OF VARYING

PROVISIONS THAT ARE INEFFECTIVE AND OFTEN UNENFORCED. EIGHTEEN STATES, FOR EXAMPLE, ALLOW CONVICTED FELONS TO BE HIRED AS SECURITY GUARDS. THERE IS NO DOUBT THAT IT IS IN THE PUBLIC INTEREST FOR FORMER CONVICTS TO OBTAIN EMPLOYMENT. BUT THE PUBLIC INTEREST ALSO REQUIRES THAT THEY NOT BECOME SECURITY OFFICERS.

THIRTY-THREE STATES REQUIRE NO TRAINING AT ALL FOR UNARMED SECURITY GUARDS. ANOTHER 18 STATES HAVE NO TRAINING REQUIREMENTS EVEN FOR GUARDS WHO CARRY GUNS.

AN INCREDIBLE 34 STATES DO NOT REQUIRE SOMETHING AS FUNDAMENTAL AS LIABILITY INSURANCE TO BE CARRIED BY SECURITY FIRM OPERATORS. IT IS NO WONDER THAT THERE ARE MORE THAN 13,000 SECURITY FIRMS IN THIS COUNTRY, THE VAST MAJORITY OF WHOM WILL NOT MAKE THE EFFORT TO

SCREEN AND TRAIN AN APPLICANT PROPERLY, OR TO BUY LIABILITY INSURANCE TO PROTECT THE PUBLIC. THESE FIRMS NEED TO BE REGULATED.,

THAT’S WHY I APPLAUD SENATOR GORE’S EFFORTS IN THE SECURITY OFFICER EMPLOYMENT STANDARDS ACT. THE BILL PROPERLY REFERS TO SECURITY “OFFICERS” TO EMPHASIZE THE PROFESSIONALISM ASSOCIATED WITH A PROPERLY SCREENED AND TRAINED INDIVIDUAL.

AS YOU KNOW, THE BILL ENCOURAGES THE STATES TO ADOPT MINIMUM SCREENING AND TRAINING STANDARDS THROUGH A PROPOSED GRANT PROGRAM. WHILE THE BILL COULD GO MUCH FARTHER, AS I WILL DISCUSS IN A MOMENT, THIS IS A PRAGMATIC BEGINNING FOR THOSE STATES WHO HAVE IGNORED PRIVATE SECURITY COMPLETELY OR WHOSE STANDARDS ARE WOEFULLY INADEQUATE.

AS YOU ALSO KNOW, THESE STANDARDS WOULD APPLY TO THE SECURITY OFFICERS WHO WORK FOR THE FEDERAL GOVERNMENT OR FEDERAL CONTRACTORS.

CURRENTLY, THE GENERAL SERVICES ADMINISTRATION ADMINISTERS SECURITY FOR THE FEDERAL GOVERNMENT AND ITS SECURITY

CONTRACTORS. GSA MANDATES SOME STANDARDS, SUCH AS:

• A HIGH SCHOOL DIPLOMA OR EQUIVALENT; • EXPERIENCE DEMONSTRATING LITERACY, ABILITY TO MEET AND DEAL

WITH THE PUBLIC, ABILITY TO FOLLOW INSTRUCTIONS AND MAINTAIN POISE;

A PHYSICAL FITNESS EVALUATION;

A CRIMINAL RECORDS CHECK;

• AND A STATEMENT OF PERSONAL HISTORY;
• HOWEVER. BA :KG ROUND VERIFICATIONS ARE ONLY OPTIONAL.

IN CONTRAST, MY COMPANY, IN ADDITION TO DOING EVERYTHING THAT GSA DOES, GOES MUCH FURTHER. AT GUARDSMARK:

WE REQUIRE MANDATORY PRIOR EMPLOYMENT VERIFICATIONS FOR THE

PAST 10 YEARS. THERE IS NO SUBSTITUTE FOR THIS VERIFICATION.

REQUIRING INFORMATION WITHOUT VERIFYING THE INFORMATION IS

PAYING MERE LIP SERVICE TO AN EMPLOYER’S OBLIGATION OF DUE

DILIGENCE. VERIFY THE APPLICANT’S CLAIMS AND YOU MAY FIND THAT

HE OR SHE WAS FIRED FROM THEIR LAST JOB FOR STEALING. OR YOU

MAY FIND THAT THE APPLICANT NEVER EVEN WORKED FOR THAT EMPLOYER.

WE REQUIRE PERIODS OF UNEMPLOYMENT TO BE VERIFIED BY INDEPENDENT NOTARIZED STATEMENTS. A PERSON WHO DID NOT WORK fOR SEVERAL MONTHS OR A YEAR MAY HAVE BEEN SERVING TIME FOR A FELONY. YOU NEED TO INVESTIGATE GAPS IN EMPLOYMENT TO FIND OUT THE REASONS.

• WE CONTACT THREE NEIGHBORHOOD REFERENCES AND THREE

CHARACTER REFERENCES. WHEN YOU TALK TO THESE PEOPLE, YOU FIND OUT WHAT KIND OF A PERSON YOU ARE HIRING – A WELL RESPECTED, WELL-LIKED INDIVIDUAL WHO IS AN ASSET TO THE COMMUNITY AS WELL AS TO AN EMPLOYER; OR AN UNSTABLE LONER WHO WOULD NOT BE FIT TO PROTECT OTHER PEOPLE’S SAFETY. YOU CAN DETERMINE AN APPLICANT’S HONESTY, TRUSTWORTHINESS, AND SOBRIETY FROM NEIGHBORHOOD AND CHARACTER REFERENCE CHECKS.

• WE VERIFY EDUCATIONAL CLAIMS. RESUME FRAUD IS WIDESPREAD IN TODAY’S WORLD. • WE REQUIRE REVIEW OF MILITARY DISCHARGE RECORDS. AN OTHER

THAN HONORABLE DISCHARGE COULD INDICATE THAT THE PERSON HAD PERFORMANCE PROBLEMS THAT ARE RELEVANT TO THE JOB. YOU WILL NEVER KNOW UNLESS YOU INVESTIGATE THE FACTS. YOU MAY FIND,

FOR EXAMPLE, THAT THE PERSON WAS REPRIMANDED FOR ALLOWING UNAUTHORIZED ENTRY TO A SECURED LOCATION. NOT AN INFRACTION SERIOUS ENOUGH FOR A DISHONORABLE DISCHARGE, PERHAPS, BUT A POOR PREDICTOR FOR THE PERSON’S ABILITY TO PERFORM AS A SECURITY PROFESSIONAL.

WE DRUG TEST ALL APPLICANTS. SECURITY GUARDS WHO USE ILLEGAL DRUGS WHILE ON DUTY ARE AN OBVIOUS MENACE TO PUBLIC SAFETY. SECURITY GUARDS WHO USE ILLEGAL DRUGS OFF DUTY ARE NO BETTER. THEY ARE CRIMINALS WORKING AS SECURITY OFFICERS.

• AFTER WE HIRE A PERSON, WE ADMINISTER THE MMPI, THE MOST

WIDELY RESPECTED PSYCHOLOGICAL EVALUATION IN THE WORLD

BEFORE PLACEMENT. IT IS ONE THING TO SAY THAT A SECURITY GUARD

SHOULD BE ABLE TO HANDLE STRESSFUL SITUATIONS. IT IS QUITE ANOTHER TO VERIFY THAT ABILITY.

SENATOR GORE’S BILL WILL RAISE THE GSA STANDARDS. THE BILL

REQUIRES THAT AN APPLICANT’S PRIOR EMPLOYMENT HISTORY BE VERIFIED. THE BILL ALSO REQUIRES A PSYCHOLOGICAL PROFILE. THESE ARE TWO FUNDAMENTAL COMPONENTS ABSENT FROM GSA’S SCREENING PROCESS.,

SENATOR GORE’S BILL WILL ENCOURAGE THE STATES TO FOCUS

ON SECURITY STANDARDS FOR PRIVATE EMPLOYERS, TOO, PARTICULARLY THOSE 11 STATES THAT HAVE COMPLETELY IGNORED PRIVATE SECURITY. STATES THAT PARTICIPATE IN THE GRANT PROCESS WILL HAVE TO MEET THE MINIMUM STANDARDS IN THE BILL. IN ADDITION TO EMPLOYMENT REFERENCE CHECKS AND PSYCHOLOGICAL PROFILES, THE BILL REQUIRES CREDIT CHECKS, PROOF OF CITIZENSHIP OR INTENT TO ACHIEVE SUCH STATUS, AND PHYSICAL FITNESS EVALUATIONS.

BUT MOST IMPORTANTLY, UNDER THE BILL, AN EMPLOYER MUST SUBMIT THE APPLICANT’S FINGERPRINTS TO THE STATE REGULATORY AGENCY FOR A STATE-WIDE CRIMINAL HISTORY CHECK, AND THE AGENCY MUST, IN TURN, SUBMIT THE PRINTS TO THE FBI FOR A NATIONWIDE CHECK. MOREOVER, THE CHECK MUST BE COMPLETED WITHIN 60 DAYS, WHICH WOULD ELIMINATE THE GHASTLY DELAYS THAT SOMETIMES APPROACH A YEAR OR MORE, IF THE CHECK IS DONE AT ALL.

THE BILL SETS UP GUIDELINES AS WELL FOR ADEQUATE TRAINING. SECURITY OFFICERS SHOULD RECEIVE INITIAL TRAINING IN SUCH IMPORTANT AREAS AS FIRE PROTECTION AND PREVENTION, FIRST AID, POWERS OF ARREST, BUILDING SAFETY, CROWD CONTROL, AND EMERGENCY RESPONSE. OFFICERS SHOULD BE TESTED ON THESE ISSUES BEFORE THEY ARE ASSIGNED TO WORK. THEY SHOULD COMPLETE REFRESHER COURSES PERIODICALLY TO MAINTAIN THEIR COMPETENCE.

THE BILL IS A PRAGMATIC FIRST STEP, BUT IT COULD GO MUCH FARTHER. IN

PARTICULAR, IT COULD GIVE SECURITY COMPANIES DIRECT ACCESS TO FBI

CRIMINAL HISTORY RECORDS. THIS WOULD REDUCE THE TURN-AROUND TIME TO ONLY A FEW WEEKS, AND THE COST WOULD BE BORNE ENTIRELY BY THE USERS I’M COVINCEDFASTER ACCESS ALONE WOULD PREVENT MANY CRIMES.

MOREOVER, THE BILL COULD REQUIRE MORE BACKGROUND VERIFICATION PROCEDURES, SUCH AS THE NOTARIZED STATEMENTS FOR PERIODS OF UNEMPLOYMENT, NEIGHBORHOOD REFERENCE CHECKS, CHARACTER REFERENCE CHECKS, VERIFICATION OF EDUCATIONAL CLAIMS, MILITARY RECORD CHECKS, AND DRUG TESTING I DESCRIBED A MOMENT AGO. AT GUARDSMARK, WE DO ALL THESE THINGS BECAUSE IT IS THE RIGHT THING TO DO, AND IT IS WORTH EVERY PENNY IT TAKES.

BUT THERE ARE OPPONENTS, OPPONENTS EVEN OF THE MINIMUM STANDARDS IN THIS BILL, AND THE LION’S SHARE OF THE OPPOSITION COMES FROM WITHIN THE INDUSTRY’S OWN RANKS-FROM PRIVATE SECURITY FIRMS THAT DO NOT WISH TO MEET EVEN MINIMUM STANDARDS.

THE OPPONENTS SAY THAT THERE’S NO NEED FOR THE GOVERNMENT TO BE INVOLVED-NO NEED FOR FEDERAL REGULATION. THE PRESIDENT OF ONE OF THIS COUNTRY’S LARGEST PRIVATE SECURITY FIRMS SAYS THAT REGULATION “IS AN INVASION OF WHAT THE STATES SHOULD BE DOING.”

THAT, OF COURSE, IS THE PROBLEM. THE STATES AND THE INDUSTRY ITSELF HAVE FAILED AT REGULATION. WHEN I TESTIFIED BEFORE THE NEW YORK STATE LEGISLATURE IN 1989, FOR EXAMPLE, BILLS TO REGULATE THE INDUSTRY HAD BEEN PROPOSED IN THE STATE LEGISLATURE IN EVERY YEAR SINCE 1978. A BILL FINALLY PASSED LAST MONTH. NO ONE KNOWS HOW MANY CRIMES OCCURRED IN THOSE 14 YEARS THAT COULD HAVE BEEN AVOIDED.

BUT EVEN AS IT URGES THE ADOPTION OF MINIMUM STANDARDS, THE BILL IS SENSITIVE TO THE CONCERNS OF THOSE OPPOSED TO FEDERAL REGULATION. IT IS FOR THIS VERY REASON THAT THE BILL MANDATES FEDERAL STANDARDS FOR SECURITY OFFICERS HIRED BY THE FEDERAL GOVERNMENT AND BY GOVERNMENT CONTRACTORS, BUT DOES NOT IMPOSE THESE STANDARDS ON

THE STATES. RATHER, IT STRONGLY ENCOURAGES THE STATES TO ADOPT THEM BY PROPOSING A GRANT PROGRAM TO HELP STATES THAT CHOOSE TO BRING THEIR STANDARDS UP TO THE MINIMUM STANDARDS IN THE BILL. NOR DOES THE BILL LIMIT STATES TO THE STANDARDS IT SUGGESTS. STATES AND SUPERIOR PRIVATE SECURITY FIRMS ARE FREE TO EXCEED THE PROPOSED STANDARDS.

OTHER OPPONENTS SAY THE BILL WOULD DRIVE UP THE COST OF PROTECTION FOR BOTH CLIENT AND PROVIDER. WHY TRAIN EVERY OFFICER IN CROWD CONTROL, FOR EXAMPLE, WHEN SOME SIMPLY PROTECT SHOPPING MALLS OR PARKING LOTS?

THE LOS ANGELES RIOTS ANSWERED THAT QUESTION. AN ENTERPRISE MAY BE ABLE TO ANTICIPATE THE LIKELIHOOD OF A RIOT OR OTHER CIVIL DISTURBANCE BUT IT WILL RARELY BE ABLE TO PINPOINT IN ADVANCE THE EXACT LOCATION OF THE DISTURBANCE. THE SAME IS TRUE FOR OTHER SKILLS. NO ONE EVER KNOWS WHEN CPR WILL BE NEEDED, OR WHEN AN OFFICER WILL HAVE TO READ INSTRUCTIONS TO OPERATE UNFAMILIAR

EQUIPMENT IN AN EMERGENCY.

AN INDUSTRY WHOSE PURPOSE IS TO PROTECT THE PUBLIC SHOULD BE PREPARED TO DO SO.

BUT OPPONENTS’ OBJECTIONS TO THE BILL CAN BE SEEN IN ANOTHER LIGHT.

IT’S CALLED GREED.

WHY SUPPORT LEGISLATION, THEY REASON, THAT WILL REDUCE THEIR MARGIN OF PROFIT BY DENYING THEM THE FREEDOM TO RECRUIT AND HIRE THE CALIBER OF PERSON TO WHOM THEY CAN PAY LOW WAGES-THE CALIBER OF PERSON TO WHOM THEY CAN DENY A VARIETY OF SAFETY-NET BENEFITS-THE CALIBER OF PERSON WHO IS OFTEN A TRANSIENT, WHO IS OFTEN NOT SERIOUS ABOUT THE MISSION OF SAFEGUARDING THE PUBLIC, WHO IS OFTEN A RISK TO SOCIETY.

WHY SUPPORT LEGISLATION, THEY REASON, THAT WILL REDUCE THEIR

MARGIN OF PROFIT BY REQUIRING ADDITIONAL EXPENDITURES ON SCREENING, TRAINING, AND SUPERVISION.

WHY SUPPORT LEGISLATION, THEY REASON, THAT WILL CAUSE THEM TO BECOME LESS COMPETITIVE BY FORCING THEM TO RAISE THEIR FEES FOR SERVICE.

THESE FIRMS DO NOT RECOGNIZE THAT COMMITTING THE FUNDS NECESSARY TO DELIVER FIRST-RATE SERVICE DOES NOT PRECLUDE PROFITABILITY, THAT IN FACT, PURSUING QUALITY IS USUALLY THE SUREST ROUTE TO COST- EFFECTIVENESS.

THESE FIRMS DO NOT RECOGNIZE THAT THE PUBLIC IS BEGINNING TO UNDERSTAND THE DIFFERENCE BETWEEN LOW BIDS FOR PRODUCTS AND LOW BIDS FOR SERVICES. A PRODUCT CAN BE BUILT TO SPECIFICATIONS AND TESTED BEFORE USE TO ENSURE THAT IT PERFORMS ACCORDING TO EXPECTATIONS. A SERVICE CAN BE ONLY AS RELIABLE AS THE ENFORCED STANDARDS OF THE AGENCY PROVIDING IT.

THESE FIRMS DO NOT RECOGNIZE THAT THE PUBLIC IS BEGINNING TO DISTINGUISH BETWEEN THE SYMBOLS AND THE SUBSTANCE OF SERVICE, TO UNDERSTAND THAT BECAUSE AN OFFICER HAS BEEN ISSUED A BADGE, A PATCH, A UNIFORM, AND A TITLE DOES NOT GUARANTEE THAT HE OR SHE HAS BEEN THOROUGHLY TRAINED AND IS QUALIFIED TO PROTECT SOCIETY.

THESE FIRMS DO NOT WISH TO ENDANGER THE PUBLIC, BUT THEIR INTRANSIGENCE ON THE ISSUE OF REGULATION CONSTITUTES A THREAT TO LIFE AND PROPERTY.

CRITICS OF REGULATION HAVE BEEN VERY VOCAL AND VERY SUCCESSFUL IN DERAILING EFFORTS TO ESTABLISH INDUSTRY STANDARDS. BUT THE TIDE IS TURNING. A MAJORITY OF SECURITY PROFESSIONALS INTERVIEWED AT THE INDUSTRY’S ANNUAL MEETING LAST FALL FAVORED SOME DEGREE OF

FEDERAL REGULATION. THEIR ATTITUDES UNDERSCORE THE FORESIGHT, COURAGE, AND TIMELINESS OF SENATOR GORE’S BILL.

WE MUST NOT ALLOW THE PUBLIC TO BE VICTIMIZED BY AN INDUSTRY THAT

SUPPLIES A VITAL SERVICE WHILE RESISTING REGULATION. THE PUBLIC NEEDS AND DESERVES PROTECTION. THIS LEGISLATION NEEDS AND DESERVES THE SUPPORT OF THE PUBLIC’S ELECTED REPRESENTATIVES.

THEN AND ONLY THEN WILL PRIVATE SECURITY BE WORTHY OF PUBLIC TRUST.

WE MUST RAISE THE STANDARDS IN THE INDUSTRY.

I URGE YOU TO TAKE THIS STEP, A FIRST STEP ON A LONGER JOURNEY TOWARD THE HIGH QUALITY SERVICE THE PUBLIC DESERVES.