Despite the fact that the LSBPSE now communicates via Facebook, Twitter, MailChimp and our revised website presences, there are still instances of company owners being unfamiliar with State Board rules and laws. There are some particular areas of focus upon which we seek to provide further clarity and information:
Companies must have and maintain the following (see LAC 46 Part LIX for coverage limits):
- General Liability
- Errors and Omissions
- Care Custody and Control
- Auto coverages where applicable
- Workers’ Compensation
We have received questions about the workers’ compensation requirement. Louisiana is a NCCI state. Per the Louisiana Workforce Commission:
“Workers’ compensation is a legal remedy whereby an employee who is injured on the job may be entitled to certain benefits. The benefits can include medical care for the injury, indemnity wage benefits, vocational rehabilitation services, and/or death benefits.
Most employees in Louisiana are covered from the day they start employment. Employees may be full-time, part-time, seasonal, or minors.
Employers are required to have workers’ compensation insurance or to be approved to self-insure. If any employee has reason to believe that his or her employer is not covered or if the employer requires an employee to pay for or purchase a workers’ compensation insurance policy, this violation should be reported to the Office of Workers’ Compensation Administration (OWCA) Fraud & Compliance section at toll free 1-800-201-3362.Louisiana Workforce Commission
NOTE: Failure to possess and maintain required insurances will be immediate grounds for suspension or revocation of a license. For additional information see LSBPSE Executive Order 16-0004: The Use of 1099 Individuals as Security Officers.
The State Board provides for the holding of hearings as an integral component of its disciplinary action policies with a couple of notable exceptions. LAC Part LIX Chapter 6 A reads in part:
Before revoking or suspending a license or registration card, or imposing fines or costs over $500, the board will afford the applicant an opportunity for a hearing after reasonable notice of not less than 15 days, except in a case of a failure to maintain the required insurance or when a registrant is found carrying an unauthorized weapon while performing the duties of a security officer.
It is critical that the State Board receives (annually before expiration) a copy of your Certificate of Insurance (COI) listing EACH of the required coverages on the face of the certificate, and that the COI names the State of Louisiana as an additional insured. Failure to provide proof of insurance will, at the very least, result in summary suspension of the company license and a notification to all contract holders that security services being provided must halt immediately, until such time as coverage concerns are resolved and the license is reinstated.
Be mindful that a suspended or revoked license can result in future termination of your company services, based upon the terms of the contract.
In addition to these provisions, it is also extremely important to familiarize yourselves with the fine schedule that appears in the State Board rules LAC 46 Part LIX Chapter 9 Section 903 C. The fine schedule is as follows:
Licensee’s failure to submit security officer application, fingerprint card, and/or necessary registration fees within prescribed time period. If the application, fingerprint card, and/or registration fees are not submitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
Licensee’s failure to resubmit fingerprint card after two written requests by the board when a deadline date is given. If the fingerprint card is not resubmitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
Licensee’s failure to notify the board in writing within prescribed time period of security officers in their employ who have been terminated. If termination is not submitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
Licensee or registrant’s failure to submit information as requested by the board when a deadline date is given. If information is not submitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500. This is an important fine to understand. The State Board requests copies of SSN cards, driver’s licenses, I-9 etc. Failure to submit each piece of information timely can result in a fine of $500 per item.
Licensee’s failure to submit company license renewal fee prior to expiration date. Fine accumulates at a daily rate, not to exceed $500.
Licensee’s failure to submit renewal application and renewal fee for a registrant in their employ prior to expiration date. If the renewal application and renewal fee are not submitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
Licensee’s failure to have registrant in their employ trained within prescribed time period. If registrant is not trained within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
Licensee’s failure to submit to the board a training verification form on a registrant in their employ within prescribed time period. If training verification is not submitted within 14 days after deadline date, administrative fine accumulates at a daily rate, not to exceed $500.
There are other fines in the schedule that are not depicted here in this posting. Please review the fine schedule in detail here.
Fees cover the costs associated with daily State Board operations. Fines are designed to drive compliance behavior. We at the State Board prefer to expend our manpower and resources assuring that our state’s security workforce is properly documented, vetted and trained rather than tracking down required documentation, issuing fines, tracking collection of fines, and taking adverse actions against owners’ licenses.
Nevertheless, in furtherance of this agency’s mandate to protect the people of the State of Louisiana, we will apply the fine schedule as-written when appropriate or otherwise mandated.
How We Apply Fines
NOTE: The LSBPSE fine schedule has not CHANGED. It has been in place for many years and is being applied as written and intended. Companies in compliance, which represents most, needn’t be concerned about this body of rule. Companies not in compliance should take heed rigorously.
With the exception of those instances that involve gross violations, egregious behavior, or more specifically insurance and unauthorized weapons violations, the State Board will generally apply the fine schedule in the following, progressive discipline manner:
Example No 1: All required documents are received by the State Board past deadline. The fine starts to calculate (daily) 14 days post-deadline as stated in the rules, and the fine in this example is for documentation submitted another ten (10) days beyond those thresholds:
- The fine(s) will initially be calculated and listed in its total amount “per officer” i.e., $3550.00 (see fine schedule)
- The fine(s) will initially be assessed at a reduced total of $500 per officer
- If (in this sample instance) the $500 fine per officer is paid within ten (10) days of the date of the fine notice, the fine will be documented as SATISFIED IN FULL for that instance
- If the $500 fine is NOT paid within ten (10) days of the fine notice, the LSBPSE will adjust the fine upward to one-half (%50) the total maximum fine, in this example $1775.00
- If the $1775.00 adjusted fine is not paid within five (5) days of the date of the second notice, the fine will be adjusted up to the original maximum calculation of $3550.00, and will be accompanied with a Cease & Desist notice enforcing a summary suspension of the company license pending hearing
- The fine(s) will initially be assessed at a reduced total of $500 per officer
In instances that involve gross violations, or egregious behavior, such as insurance and unauthorized weapons violations, the State Board will immediately take action to assess the maximum possible administrative fines allowable, suspend or revoke the company license and compel a hearing, where necessary, to determine if the imposition of additional fines is warranted. These additional fines are outlined in Title 37 as follows:
La. R.S. Title 37
§3288. Administrative penalties
A.(1) Any person who is determined by the board, after reasonable notice and opportunity for a fair and impartial hearing held in accordance with the Administrative Procedure Act, to have committed an egregious act that is a violation of this Chapter or regulation or rule issued thereunder is subject to an administrative penalty of not more than five thousand dollars per violation per day and shall subject such person to revocation of his license. Such egregious acts shall include but not be limited to the following:
(a) Knowingly operating a private security business without meeting the insurance requirements as provided for in this Chapter.
(b) Consistently operating a private security business in violation of the insurance requirements provided for in this Chapter.
(c) Submitting fraudulent documents to the board as required or requested by the board.
(d) Forgery of any documentation submitted to the board. (e) Operating a private security business without obtaining the required firearms training.
(2) Any person committing any non-egregious acts in violation of this Chapter or any regulation or rule issued thereunder is subject to an administrative penalty of not more than one thousand dollars per violation per day.
B. The board, in accordance with the Administrative Procedure Act, may adopt a schedule of administrative penalties for minor violations that can be assessed by the executive secretary when the violator waives the right to an administrative hearing. Acts 1984, No. 505, §1, eff. Jan. 1, 1985; Acts 1989, No. 552, §1; Act 1991, No. 315, §1; Acts 2006, No. 198, §1.
Conversely, fineable offenses that are discovered, captured or revealed within the context of the $50 daily rate, and have not maxed out to $500 per offense, will be assessed at the daily rate. The accumulation of additional fines will cease during the notification and receipt-of-payment process. Should the fine notice be ignored, and not paid within the prescribed time frame, the fines will begin to accrue at the daily rate, not to exceed $500 per violation.
Any questions about this notice should be directed to Executive Director, Fabian P. Blache III at 225-2727-2310 Ext 8.