S.B. 943 78(R)    BILL ANALYSIS


S.B. 943
By: Williams
Law Enforcement
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the Texas Commission on Private Security (TCOPS) licenses and
regulates private investigation services and security services.  The
Private Security Act prohibits a person from engaging in the business
activity of an investigation company unless the person holds a license
issued by TCOPS.  Mystery shopping is a business practice used to improve
business operational and service quality through the use of anonymous
resources.  The broad interpretation of current statute requires that
certain mystery shoppers be licensed under the Act.  Senate Bill 943
exempts a person who engages in certain business evaluation services from
the Private Security Act, and enumerates the prerequisites for exemption.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Senate Bill 943 amends Subchapter N, Chapter 1702, Occupations Code, by
adding Section 1702.331, which provides that this chapter does not apply
to a person who poses or acts anonymously as a customer or client of a
business or governmental entity or is in the business of providing the
services of another for the purpose of evaluating the following operations
or services of the business or government entity: 

_a service or product provided to a customer or client;
_compliance with policies and operational procedures;
_the appearance, cleanliness, efficiency, and other operations of the
office, facility, or physical plant; 
_the friendliness, courtesy, or appearance of an employee;
_the necessity or effectiveness of a training program or employee reward
or other incentive program; 
_the quality, availability, or price of goods or services; and 
_other operations or customer services of the business or governmental
entity the evaluation of which is not otherwise prohibited by this
chapter. 

The person is entitled to the exemption only if the person uses an
evaluation tool prescribed or approved by the employer, does not attempt
to determine if an employee has committed a crime, and the information
obtained is not intended to be used by the employer as the sole basis for
the discipline or termination of an employee.     

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.