Public function theory
Public function theory states that private action can constitute a state action provided that the private person performs functions that traditionally are preserved for the state. The theory developed from the Marsh vs. Alabama, where a private company operated and owned a town. The private company assumed and performed all the functions of the municipality. This theory is applicable in the private security sector, whereby the private security companies have assumed some functions traditionally performed by the state. These functions include protection of life and property, prevention, and control of crime from being committed. A private action, especially by a private security company, is deemed re-characterized as a public act if the company performs a function traditionally performed by the state. Such actions may include preventing a crime from being committed. Traditionally is the function of the state to prevent crimes from being committed, but the public act has been re-characterized as a private action to generate more taxes from the private company.
Private action changes into state action when the function performed by the private security company is traditionally performed by the state, such as protecting life and property. The function can either be contractual or internally to generate taxes from the private companies. This theory serves to fill the void the state has left in the provision of security services to the public. However, the theory has its challenges, especially in the private security function change where the private sector performs the state’s public functions. Through this theory, there is a high chance that this sort of the change in the private sector will be cooperative with the public sector for effective services. The critics of the theory argue that the test is innately irrelevant to private security activities because the private sector is naturally made to do what it does for for-profit purposes.