BILL NUMBER: SB 1077	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 1, 2012

INTRODUCED BY   Senator Price

                        FEBRUARY 14, 2012

   An act to amend Sections 125.9,  7590.1, 7591.10,
 7591.19,  7593.1,7593.6, 7593.7, 7594.4, 7599.32,
7599.34, 7599.42, 7599.43, 7599.48, 7599.61, and 7599.70 of,
 and   to amend, repeal, and add Sections
7590.1, 7591.10, 7593.1, 7593.6, 7593.7, 7594.4, 7599.32, 7599.34,
7599.42, 7599.43, 7599.48, and 7599.61 of, and  to add Sections
7591.13, 7593.5, and7593.15 to, the Business and Professions Code,
relating to alarm companies.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1077, as amended, Price. Alarm companies: limited liability
companies.
   Existing law, the Beverly-Killea Limited Liability Company Act,
authorizes a limited liability company to engage in any lawful
business activity, except as specified, but prohibits construing the
act to permit a limited liability company to render professional
services, as defined. Existing law also authorizes a limited
liability company to render services that may be lawfully rendered
only pursuant to a license, certificate, or registration authorized
by the Business and Professions Code if the provisions of that code
authorize a limited liability company to hold that license,
certificate, or registration.
   Existing law, the Alarm Company Act, provides for the licensure,
registration, and regulation of alarm company operators and alarm
agents by the Bureau  for   of  Security
and Investigative Services within the Department of Consumer Affairs
and makes a violation of the act a crime. Existing law prohibits an
alarm company operator from transferring his or her license, as
specified.
   This bill would  , until January 1, 2016,  authorize the
bureau to issue an alarm company operator license to a limited
liability company and would make related conforming changes.  The
bill would re   quire a limited liability alarm company to
maintain specified insurance and to submit specified information and
documentation to the bureau. A failure of a limited liability alarm
company to comply with these requirements would render the company's
license subject to suspension, and would expose the members of the
limited liability alarm   company to personal liability for
damages to 3rd parties, as specified.  Because a violation of
the Alarm Company Act by a limited liability company would be a
crime, the bill would expand the scope of a crime and would thereby
impose a state-mandated local program.  The 
      The  bill would specify that an alarm company
operator license is not assignable, but would authorize an operator
who receives consent from the bureau, as specified, to assign the
license to another business entity if the owners of the assignor own
all of the assignee immediately after the assignment.
   Existing law authorizes a board, bureau, or commission within the
Department of Consumer Affairs to establish a system for the issuance
of a citation to a licensee where the licensee is in violation of
the applicable licensing act or regulation adopted thereunder, except
with respect to a person regulated under the Alarm Company Act.
   This bill would remove the exception for a person regulated under
the Alarm Company Act.
   Existing law also authorizes a board, bureau, or commission within
the Department of Consumer Affairs to establish a similar system for
the issuance of an administrative citation to an unlicensed person
who is acting in the capacity of a licensee or registrant under the
jurisdiction of the board, bureau, or commission. Existing law
requires an advertisement by a licensed alarm company soliciting or
advertising business to contain his or her name and license number
and prohibits a licensee  form   from 
making any untrue or misleading statements.
   This bill would authorize the Chief of the Bureau of Security and
Investigative Services to issue a citation against any person who is
acting in the capacity of a licensee, registrant, permitholder, or
certificate holder under the alarm company jurisdiction of the bureau
without a license, registration, permit, or certificate and against
any person who advertises for the purpose of soliciting business as
an alarm company operator without a license, as specified. The bill
would make other related changes.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 125.9 of the Business and Professions Code is
amended to read:
   125.9.  (a) Except with respect to persons regulated under Chapter
11 (commencing with Section 7500), any board, bureau, or commission
within the department, the board created by the Chiropractic
Initiative Act, and the Osteopathic Medical Board of California, may
establish, by regulation, a system for the issuance to a licensee of
a citation which may contain an order of abatement or an order to pay
an administrative fine assessed by the board, bureau, or commission
where the licensee is in violation of the applicable licensing act or
any regulation adopted pursuant thereto.
   (b) The system shall contain the following provisions:
   (1) Citations shall be in writing and shall describe with
particularity the nature of the violation, including specific
reference to the provision of law determined to have been violated.
   (2) Whenever appropriate, the citation shall contain an order of
abatement fixing a reasonable time for abatement of the violation.
   (3) In no event shall the administrative fine assessed by the
board, bureau, or commission exceed five thousand dollars ($5,000)
for each inspection or each investigation made with respect to the
violation, or five thousand dollars ($5,000) for each violation or
count if the violation involves fraudulent billing submitted to an
insurance company, the Medi-Cal program, or Medicare. In assessing a
fine, the board, bureau, or commission shall give due consideration
to the appropriateness of the amount of the fine with respect to
factors such as the gravity of the violation, the good faith of the
licensee, and the history of previous violations.
   (4) A citation or fine assessment issued pursuant to a citation
shall inform the licensee that if he or she desires a hearing to
contest the finding of a violation, that hearing shall be requested
by written notice to the board, bureau, or commission within 30 days
of the date of issuance of the citation or assessment. If a hearing
is not requested pursuant to this section, payment of any fine shall
not constitute an admission of the violation charged. Hearings shall
be held pursuant to Chapter 5 (commencing with Section 11500) of Part
1 of Division 3 of Title 2 of the Government Code.
   (5) Failure of a licensee to pay a fine within 30 days of the date
of assessment, unless the citation is being appealed, may result in
disciplinary action being taken by the board, bureau, or commission.
Where a citation is not contested and a fine is not paid, the full
amount of the assessed fine shall be added to the fee for renewal of
the license. A license shall not be renewed without payment of the
renewal fee and fine.
   (c) The system may contain the following provisions:
   (1) A citation may be issued without the assessment of an
administrative fine.
   (2) Assessment of administrative fines may be limited to only
particular violations of the applicable licensing act.
   (d) Notwithstanding any other provision of law, if a fine is paid
to satisfy an assessment based on the finding of a violation, payment
of the fine shall be represented as satisfactory resolution of the
matter for purposes of public disclosure.
   (e) Administrative fines collected pursuant to this section shall
be deposited in the special fund of the particular board, bureau, or
commission.
  SEC. 2.  Section 7590.1 of the Business and Professions Code is
amended to read:
   7590.1.  The following terms as used in this chapter have the
meaning expressed in this article:
   (a) "Person" means any individual, firm, company, association,
organization, partnership, limited liability company, or corporation.

   (b) "Department" means the Department of Consumer Affairs.
   (c) "Director" means the Director of Consumer Affairs.
   (d) "Bureau" means the Bureau of Security and Investigative
Services.
   (e) "Chief" means the Chief of the Bureau of Security and
Investigative Services.
   (f) "Employer" means a person who employs an individual for wages
or salary, lists the individual on the employer's payroll records,
and withholds all legally required deductions and contributions.
   (g) "Employee" means an individual who works for an employer, is
listed on the employer's payroll records, and is under the employer's
direction and control.
   (h) "Employer-employee relationship" means an individual who works
for another and where the individual's name appears on the payroll
records of the employer.
   (i) "Licensee" means a business entity, whether an individual,
partnership, limited liability company, or corporation licensed under
this chapter.
   (j) "Qualified manager" means an individual who is in active
control, management, and direction of the licensee's business, and
who is in possession of a current and valid qualified manager's
certificate pursuant to this chapter.
   (k) "Registrant" means any person registered or who has applied
for registration under this chapter.
   (  l  ) "Branch office" means any location, other than
the principal place of business of the licensee, which is licensed as
set forth in Article 11 (commencing with Section 7599.20).
   (m) "Branch office manager" means an individual designated by the
qualified manager to manage the licensee's branch office and who has
met the requirements as set forth in Article 11 (commencing with
Section 7599.20).
   (n) "Alarm system" means an assembly of equipment and devices
arranged to signal the presence of a hazard requiring urgent
attention and to which police are expected to respond.
   (o) "Alarm agent" means a person employed by an alarm company
operator whose duties include selling on premises, altering,
installing, maintaining, moving, repairing, replacing, servicing,
responding, or monitoring an alarm system, or a person who manages or
supervises a person employed by an alarm company to perform any of
the duties described in this subdivision or any person in training
for any of the duties described in this subdivision.
   (p) "Deadly weapon" means and includes any instrument or weapon of
the kind commonly known as a blackjack, slungshot, billy, sandclub,
sandbag, metal knuckles; any dirk, dagger, pistol, revolver, or any
other firearm; any knife having a blade longer than five inches; any
razor with an unguarded blade; or any metal pipe or bar used or
intended to be used as a club.
   (q) "Firearms permit" means a permit issued by the bureau,
pursuant to Article 6 (commencing with Section 7596), to a licensee,
a qualified manager, or an alarm agent, to carry an exposed firearm
while on duty.
   (r) (1) "Advertisement" means:
   (A) Any written or printed communication for the purpose of
soliciting, describing, or promoting the licensed business of the
licensee, including a brochure, letter, pamphlet, newspaper,
periodical, publication, or other writing.
   (B) A directory listing caused or permitted by the licensee which
indicates his or her licensed activity.
   (C) A radio, television, or similar airwave transmission which
solicits or promotes the licensed business of the licensee.
   (2) "Advertisement" does not include any of the following:
   (A) Any printing or writing used on buildings, vehicles, uniforms,
badges, or other property where the purpose of the printing or
writing is identification.
   (B) Any printing or writing on communications, memoranda, or any
other writings used in the ordinary course of business where the sole
purpose of the writing is other than the solicitation or promotion
of business.
   (C) Any printing or writing on novelty objects used in the
promotion of the licensee's business where the printing of the
information required by this chapter would be impractical due to the
available area or surface.
   (s) "Residential sales agreement" means and includes an agreement
between an alarm company operator and an owner or tenant for the
purchase of an alarm system to be utilized in the personal residence
of the owner or tenant.
   (t) "Firearm permit" means and includes "firearms permit,"
"firearms qualification card," "firearms qualification," and
"firearms qualification permit." 
   (u) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 3.    Section 7590.1 is added to the  
Business and Professions Code   , to read:  
   7590.1.  The following terms as used in this chapter have the
meaning expressed in this article:
   (a) "Person" means any individual, firm, company, association,
organization, partnership, limited liability company, or corporation.

   (b) "Department" means the Department of Consumer Affairs.
   (c) "Director" means the Director of Consumer Affairs.
   (d) "Bureau" means the Bureau of Security and Investigative
Services.
   (e) "Chief" means the Chief of the Bureau of Security and
Investigative Services.
   (f) "Employer" means a person who employs an individual for wages
or salary, lists the individual on the employer's payroll records,
and withholds all legally required deductions and contributions.
   (g) "Employee" means an individual who works for an employer, is
listed on the employer's payroll records, and is under the employer's
direction and control.
   (h) "Employer-employee relationship" means an individual who works
for another and where the individual's name appears on the payroll
records of the employer.
   (i) "Licensee" means a business entity, whether an individual,
partnership, or corporation licensed under this chapter.
   (j) "Qualified manager" means an individual who is in active
control, management, and direction of the licensee's business, and
who is in possession of a current and valid qualified manager's
certificate pursuant to this chapter.
   (k) "Registrant" means any person registered or who has applied
for registration under this chapter.
   (l) "Branch office" means any location, other than the principal
place of business of the licensee, which is licensed as set forth in
Article 11 (commencing with Section 7599.20).
   (m) "Branch office manager" means an individual designated by the
qualified manager to manage the licensee's branch office and who has
met the requirements as set forth in Article 11 (commencing with
Section 7599.20).
   (n) "Alarm system" means an assembly of equipment and devices
arranged to signal the presence of a hazard requiring urgent
attention and to which police are expected to respond.
   (o) "Alarm agent" means a person employed by an alarm company
operator whose duties include selling on premises, altering,
installing, maintaining, moving, repairing, replacing, servicing,
responding, or monitoring an alarm system, or a person who manages or
supervises a person employed by an alarm company to perform any of
the duties described in this subdivision or any person in training
for any of the duties described in this subdivision.
   (p) "Deadly weapon" means and includes any instrument or weapon of
the kind commonly known as a blackjack, slungshot, billy, sandclub,
sandbag, metal knuckles; any dirk, dagger, pistol, revolver, or any
other firearm; any knife having a blade longer than five inches; any
razor with an unguarded blade; or any metal pipe or bar used or
intended to be used as a club.
   (q) "Firearms permit" means a permit issued by the bureau,
pursuant to Article 6 (commencing with Section 7596), to a licensee,
a qualified manager, or an alarm agent, to carry an exposed firearm
while on duty.
   (r) (1) "Advertisement" means:
   (A) Any written or printed communication for the purpose of
soliciting, describing, or promoting the licensed business of the
licensee, including a brochure, letter, pamphlet, newspaper,
periodical, publication, or other writing.
   (B) A directory listing caused or permitted by the licensee which
indicates his or her licensed activity.
   (C) A radio, television, or similar airwave transmission which
solicits or promotes the licensed business of the licensee.
   (2) "Advertisement" does not include any of the following:
   (A) Any printing or writing used on buildings, vehicles, uniforms,
badges, or other property where the purpose of the printing or
writing is identification.
   (B) Any printing or writing on communications, memoranda, or any
other writings used in the ordinary course of business where the sole
purpose of the writing is other than the solicitation or promotion
of business.
   (C) Any printing or writing on novelty objects used in the
promotion of the licensee's business where the printing of the
information required by this chapter would be impractical due to the
available area or surface.
   (s) "Residential sales agreement" means and includes an agreement
between an alarm company operator and an owner or tenant for the
purchase of an alarm system to be utilized in the personal residence
of the owner or tenant.
   (t) "Firearm permit" means and includes "firearms permit,"
"firearms qualification card," "firearms qualification," and
"firearms qualification permit."
   (u) This section shall become operative on January 1, 2016. 
   SEC. 3.   SEC. 4.   Section 7591.10 of
the Business and Professions Code is amended to read:
   7591.10.  (a) The director may deny a license, certificate, or
registration regulated by this chapter on the grounds that the
applicant has done any of the following:
   (1) Knowingly made a false statement of fact required to be
revealed in the application for a license.
   (2) Been convicted of a crime. A conviction within the meaning of
this section means a plea or verdict of guilty or a conviction
following a plea of nolo contendere. Any action which the bureau is
permitted to take following the establishment of a conviction may be
taken when the time for appeal has elapsed, or the judgment of
conviction has been affirmed on appeal, or when an order granting
probation is made suspending the imposition of sentence, irrespective
of a subsequent order under the provisions of Section 1203.4 of the
Penal Code.
   (3) Done any act involving dishonesty, fraud, or deceit with the
intent to substantially benefit himself, herself, or another, or to
substantially injure another.
   (4) Done any act which if done by a licensee would be grounds for
suspension or revocation of a license.
   (5) Done any act without a license for which a license is required
under this chapter.
   (6) Been refused a license under this chapter or had a license
revoked.
   (7) Been an officer, partner, managing member, or manager of any
person who has been refused a license under this chapter or whose
license has been suspended or revoked.
   The bureau may deny a license, certificate, or registration
pursuant to this section only if the crime or act is substantially
related to the qualifications, functions, or duties of the license,
certificate, or registration for which application has been made.
   The denial of a license, certificate, or registration shall be in
writing and shall describe the basis for the denial. The denial shall
inform the applicant that if he or she desires a review by the
disciplinary review committee the review shall be requested within 30
days of the issuance of the denial. A review shall be held pursuant
to the provisions of Section 7591.19.
   (b) Notwithstanding any other provision of this chapter, no person
shall be denied a license, certificate, or registration solely on
the basis that he or she has been convicted of a felony, if he or she
has obtained a certificate of rehabilitation pursuant to Chapter 3.5
(commencing with Section 4852.01) of Title 6 of Part 3 of the Penal
Code, or solely on the basis that he or she has been convicted of a
misdemeanor, if he or she has met all applicable requirements of the
criteria of rehabilitation as provided in Section 7591.12. 
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 5.    Section 7591.10 is added to the  
Business and Professions Code   , to read:  
   7591.10.  (a) The director may deny a license, certificate, or
registration regulated by this chapter on the grounds that the
applicant has done any of the following:
   (1) Knowingly made a false statement of fact required to be
revealed in the application for a license.
   (2) Been convicted of a crime. A conviction within the meaning of
this section means a plea or verdict of guilty or a conviction
following a plea of nolo contendere. Any action which the bureau is
permitted to take following the establishment of a conviction may be
taken when the time for appeal has elapsed, or the judgment of
conviction has been affirmed on appeal, or when an order granting
probation is made suspending the imposition of sentence, irrespective
of a subsequent order under the provisions of Section 1203.4 of the
Penal Code.
   (3) Done any act involving dishonesty, fraud, or deceit with the
intent to substantially benefit himself, herself, or another, or to
substantially injure another.
   (4) Done any act which if done by a licensee would be grounds for
suspension or revocation of a license.
   (5) Done any act without a license for which a license is required
under this chapter.
   (6) Been refused a license under this chapter or had a license
revoked.
   (7) Been an officer, partner, or manager of any person who has
been refused a license under this chapter or whose license has been
suspended or revoked.
   The bureau may deny a license, certificate, or registration
pursuant to this section only if the crime or act is substantially
related to the qualifications, functions, or duties of the license,
certificate, or registration for which application has been made.
   The denial of a license, certificate, or registration shall be in
writing and shall describe the basis for the denial. The denial shall
inform the applicant that if he or she desires a review by the
disciplinary review committee the review shall be requested within 30
days of the issuance of the denial. A review shall be held pursuant
to the provisions of Section 7591.19.
   (b) Notwithstanding any other provision of this chapter, no person
shall be denied a license, certificate, or registration solely on
the basis that he or she has been convicted of a felony, if he or she
has obtained a certificate of rehabilitation pursuant to Chapter 3.5
(commencing with Section 4852.01) of Title 6 of Part 3 of the Penal
Code, or solely on the basis that he or she has been convicted of a
misdemeanor, if he or she has met all applicable requirements of the
criteria of rehabilitation as provided in Section 7591.12.
   (c) This section shall become operative on January 1, 2016. 
   SEC. 4.   SEC. 6.   Section 7591.13 is
added to the Business and Professions Code, to read:
   7591.13.  (a) The chief or his or her designee may issue a
citation, in accordance with Section 148, against a person who is not
otherwise exempt under this chapter and is acting or offering to act
in the capacity of a licensee, registrant, permitholder, or
certificate holder under this chapter without a valid license,
registration, permit  ,  or certificate, as applicable,
under this chapter.
   (b) The chief or his or her designee may issue a citation against
a person who places, or causes to be placed, an advertisement in any
written, printed, or verbal communication for the purposes of
soliciting business as an alarm company operator without a license
under or an exemption from this chapter.
   (c) A citation issued under this section may contain an assessment
of an administrative fine up to five thousand dollars ($5,000) or,
where appropriate, an order of abatement fixing a reasonable period
of time not to exceed 30 days for abatement, or both that fine and
order of abatement.
   (d) A citation issued under this section shall meet the following
requirements:
   (1) Be in writing and describe with particularity the nature of
the violation, including specific reference to the provision of this
chapter or the regulation adopted thereunder determined to have been
violated.
   (2) Inform the cited person that if he or she desires a hearing to
contest the finding of a violation, that hearing shall be requested
by written notice to the bureau within 30 days of the issuance of the
citation.
   (3) Inform the cited person that if he or she desires an informal
conference with the chief or his or her designee to contest the
finding of a violation, that informal conference shall be requested
by written notice to the bureau within 10 days of the issuance of the
citation.
   (4) Be served upon the cited person in person or by certified
mail.
   (e) The chief or his or her designee shall consider the following
factors when determining the amount of an administrative fine under
this section:
   (1) The good or bad faith exhibited by the cited person.
   (2) The nature and severity of the violation.
   (3) Evidence that the violation was willful.
   (4) History of violations of the same or similar nature.
   (5) The extent to which the cited person has cooperated with the
bureau.
   (6) The extent to which the cited person has mitigated or
attempted to mitigate any damage or injury caused by his or her
violation.
   (7) Any other factors as justice may require.
   (f) The time allowed for abatement of a citation issued under this
section shall begin the first day after the order of abatement has
been served. If a cited person who has been issued an order of
abatement is unable to complete the correction within the timeframe
set forth in the citation because of conditions beyond his or her
control after the exercise of reasonable diligence, the person cited
may request any extension of time in which to complete the correction
from the chief or his or her designee. The request for an extension
shall be in writing and shall be made within the timeframe set forth
for abatement.
   (g) If a person cited pursuant to this section desires a hearing
to contest the citation, the cited person shall, within 30 days after
service of the citation, file in writing a request for an
administrative hearing to the chief or his or her designee regarding
the acts charged in the citation, in accordance with paragraph (4) of
subdivision (b) of Section 125.9.
   (h) (1) In addition to, or instead of, requesting an
administrative hearing, as provided for in subdivision (d), a person
cited pursuant to this section may, within 10 days after service of
the citation, contest the citation by submitting a written request
for an informal citation conference to the chief or his or her
designee.
   (2) Upon receipt of a written request for an informal citation
conference pursuant to paragraph (1), the chief or his or her
designee shall, within 30 days, hold an informal citation conference
with the cited person. If an informal citation conference is held,
the chief or his or her designee may affirm, modify, or dismiss the
citation, including any fine levied or order of abatement issued, at
the conclusion of the informal citation conference. If affirmed or
modified, the citation originally issued shall be considered
withdrawn and an affirmed or modified citation shall be mailed to the
cited person and his or her legal counsel, if any, within 15 days of
the date of the informal citation conference.
   (3) If a cited person wishes to contest a citation that is
affirmed or modified pursuant to paragraph (2), the person shall,
within 30 days of receiving the affirmed or modified citation, file
in writing a request for an administrative hearing to the chief or
his or her designee regarding the acts charged in the affirmed or
modified citation, in accordance with paragraph (4) of subdivision
(b) of Section 125.9.
   (4) A cited person shall not request a subsequent informal
conference with respect to a citation that is modified or affirmed
during an informal conference under this subdivision.
   (i) When an order of abatement is not contested or if the order is
appealed and the person or entity cited does not prevail, failure to
abate the violation charged within the timeframe specified in the
citation or within 30 days after the appeal, whichever is later,
shall constitute a violation and failure to comply with the order of
abatement.
   (j) This section shall not apply to a violation of this chapter
that is subject to Section 7591.9.
   (k) The sanctions authorized under this section shall be separate
from, and in addition to, all other remedies either civil or
criminal.
   (l) Administrative fines collected pursuant to this section shall
be deposited in the Private Security Services Fund.
   SEC. 5.   SEC. 7.   Section 7591.19 of
the Business and Professions Code is amended to read:
   7591.19.  (a) (1) An alarm company operator, qualified manager, or
alarm agent may request a review by the Alarm Company Operator
Disciplinary Review Committee to contest the assessment of an
administrative fine, unless the fine is assessed pursuant to Section
7591.13, or to appeal a denial, revocation, or suspension, unless the
denial or suspension is ordered by the director in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of
Title 2 of the Government Code or in accordance with Section 7591.8
of this code.
   (2) A request for a review shall be by written notice to the
bureau within 30 days of the issuance of the citation and assessment,
denial,                                                  or
suspension.
   (3) Following a review by the disciplinary review committee, the
appellant shall be notified within 30 days, in writing, by regular
mail, of the committee's decision.
   (4) If the appellant disagrees with the decision made by the Alarm
Company Operator Disciplinary Review Committee, he or she may
request a hearing as outlined in subdivision (b). A request for a
hearing following a decision by the disciplinary review committee
shall be by written notice to the bureau within 30 days of the
committee's decision.
   (5) If the appellant does not request a hearing within 30 days,
the review committee's decision shall become final.
   (b) (1) An alarm company operator, qualified manager, or alarm
agent may request a hearing in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code if he or she contests an assessment of an
administrative fine, or to appeal a denial, suspension, or
revocation. A hearing may also be requested if the appellant
disagrees with the decision made by the Alarm Company Operator
Disciplinary Review Committee.
   (2) A request for a hearing shall be by written notice to the
bureau within 30 days of the issuance of the decision by the review
committee. A hearing pursuant to this subdivision shall be available
only after a review by the disciplinary review committee.
   SEC. 6.   SEC. 8.   Section 7593.1 of
the Business and Professions Code is amended to read:
   7593.1.  (a) Each individual applicant and each qualified manager,
partner of a partnership, designated officer of a corporation, and
designated officer and managing member of a limited liability company
shall submit with the application one personal identification form
provided by the chief, upon which shall appear a photograph taken
within one year immediately preceding the date of the filing of the
application together with two legible sets of fingerprints, one set
of which shall be forwarded to the Federal Bureau of Investigation
for purposes of a background check, and personal description of each
such person, respectively. The identification form shall include
residence addresses and employment history for the previous five
years.
   (b) The bureau may impose a fee not to exceed three dollars ($3)
for processing classifiable fingerprint cards submitted by applicants
excluding those submitted into an electronic fingerprint system
using electronic fingerprint technology. 
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 9.    Section 7593.1 is added to the  
Business and Professions Code   , to read:  
   7593.1.  (a) Each individual applicant and each qualified manager,
partner of a partnership, and designated officers of a corporation
shall submit with the application, one personal identification form
provided by the chief upon which shall appear a photograph taken
within one year immediately preceding the date of the filing of the
application together with two legible sets of fingerprints, one set
of which shall be forwarded to the Federal Bureau of Investigation
for purposes of a background check, and personal description of each
such person, respectively. The identification form shall include
residence addresses and employment history for the previous five
years.
   (b) The bureau may impose a fee not to exceed three dollars ($3)
for processing classifiable fingerprint cards submitted by applicants
excluding those submitted into an electronic fingerprint system
using electronic fingerprint technology.
   (c) This section shall become operative on January 1, 2016. 
   SEC. 7.   SEC. 10.   Section 7593.5 is
added to the Business and Professions Code, to read:
   7593.5.  If the applicant for a license is a limited liability
company, the application shall state the true names and complete
residence addresses of the managing members and any other officers
and members who will be active in the business to be licensed. A copy
of the articles of organization issued by the Secretary of State
shall be supplied to the bureau upon request. The application shall
also state the name and address of the designated person to be
actively in charge of the business for which the license is sought.
The application shall be subscribed, verified, and signed by a duly
authorized member of the applicant under penalty of perjury. 
  SEC. 8.    Section 7593.15 is added to the
Business and Professions Code, to read:
   7593.15.  (a) Except as provided in this section, an alarm company
operator license issued under this chapter is not assignable.
   (b) An alarm company operator may apply to the chief for consent
and, upon receipt of the consent and payment of the processing fee
authorized by Section 7599.70, may assign a license to another
business entity as long as the direct and indirect owners of the
assignor own all of the assignee immediately after the assignment.

   SEC. 9.   SEC. 11.   Section 7593.6 of
the Business and Professions Code is amended to read:
   7593.6.   (a)    The director may refuse to
issue a license to an applicant pending final disposition of an
investigation of criminal activity or of a disciplinary action
previously filed against the person or applicant or against a
qualified manager, partner, managing member, or officer of the
applicant. 
   A 
    (b)     A  new alarm company operator
license, qualified manager certificate, or alarm agent registration
shall be subject to payment of any and all fines assessed pursuant to
this section and not resolved in accordance with the provisions of
this section and payment of all applicable fees. 
   (c) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 12.    Section 7593.6 is added to the  
Business and Professions Code   , to read:  
   7593.6.  (a) The director may refuse to issue a license to an
applicant pending final disposition of an investigation of criminal
activity or of a disciplinary action previously filed against the
person or applicant or against a qualified manager, partner, or
officer of the applicant.
   (b) A new alarm company operator license, qualified manager
certificate, or alarm agent registration shall be subject to payment
of any and all fines assessed pursuant to this section and not
resolved in accordance with the provisions of this section and
payment of all applicable fees.
   (c) This section shall become operative on January 1, 2016. 
   SEC. 10.   SEC. 13.   Section 7593.7 of
the Business and Professions Code is amended to read:
   7593.7.   (a)    The chief shall issue a pocket
identification card to the owner, partners, officers, managing
members, and qualified manager. The chief shall determine the form
and content of the card. A photo identification card will be
furnished to any owner, partner, officer, managing member, qualified
manager, or branch office manager upon written request and payment of
the fee prescribed by this chapter. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 14.    Section 7593.7 is added to the  
Business and Professions Code   , to read:  
   7593.7.  (a) The chief shall issue a pocket identification card to
the owner, partners, officers, and qualified manager. The chief
shall determine the form and content of the card. A photo
identification card will be furnished to any owner, partner, officer,
qualified manager, or branch office manager upon written request and
payment of the fee prescribed by this chapter.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 15.    Section 7593.15 is added to the 
 Business and Professions Code  , to read:  
   7593.15.  (a) Except as provided in this section, an alarm company
operator license issued under this chapter is not assignable.
   (b) An alarm company operator may apply to the chief for consent
and, upon receipt of the consent and payment of the processing fee
authorized by Section 7599.70, may assign a license to another
business entity as long as the direct and indirect owners of the
assignor own all of the assignee immediately after the assignment.

   SEC. 11.   SEC. 16.   Section 7594.4 of
the Business and Professions Code is amended to read:
   7594.4.   (a)    Except as herein otherwise
provided, no individual shall be in active charge of the business if
the individual has ever had a license revoked for cause or has ever
been disqualified from further employment in the alarm company
operator business pursuant to this chapter, or was a qualified
manager, partner, managing member, or officer of a business whose
license has been revoked. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 17.    Section 7594.4 is added to the  
Business and Professions Code   , to read:  
   7594.4.  (a) Except as herein otherwise provided, no individual
shall be in active charge of the business if the individual has ever
had a license revoked for cause or has ever been disqualified from
further employment in the alarm company operator business pursuant to
this chapter, or was a qualified manager, partner, or officer of a
business whose license has been revoked.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 12.   SEC. 18.   Section 7599.32 of
the Business and Professions Code is amended to read:
   7599.32.  (a) A licensee shall notify the bureau within 30 days of
any change of its officers or members required to be named pursuant
to Section 7593.4 or 7593.5 and of any addition of a new partner.
   (b) Applications, on forms prescribed by the director, shall be
submitted by all new officers, managing members, and partners. The
director may suspend or revoke a license issued under this chapter if
the director determines that the new officer, managing member, or
partner has committed any act which constitutes grounds for the
denial of a license pursuant to Section 7591.10.
   (c) A notice of warning may be issued for the first violation of
this section and a fine of twenty-five dollars ($25) for each
subsequent violation. 
   (d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 19.    Section 7599.32 is added to the 
 Business and Professions Code   , to read:  
   7599.32.  (a) A licensee shall notify the bureau within 30 days of
any change of its officers required to be named pursuant to Section
7593.4 and of any addition of a new partner.
   (b) Applications, on forms prescribed by the director, shall be
submitted by all new officers and partners. The director may suspend
or revoke a license issued under this chapter if the director
determines that the new officer or partner has committed any act
which constitutes grounds for the denial of a license pursuant to
Section 7591.10.
   (c) A Notice of Warning may be issued for the first violation of
this section and a fine of twenty-five dollars ($25) for each
subsequent violation.
   (d) This section shall become operative on January 1, 2016. 
   SEC. 13.   SEC. 20.   Section 7599.34 of
the Business and Professions Code is amended to read:
   7599.34.   (a)    No licensee shall conduct a
business as an individual, partnership, limited liability company, or
corporation unless the licensee holds a valid license issued to that
exact same individual, partnership, limited liability company, or
corporation. A violation of this section may result in a fine of one
hundred dollars ($100) for each violation. 
   (b) As a condition of the issuance, reinstatement, reactivation,
or continued valid use of a license under this chapter, a limited
liability company shall, in accordance with the provisions of this
section, maintain a policy or policies of insurance against liability
imposed on or against it by law for damages arising out of claims
based upon acts, errors, or omissions arising out of the alarm
company services it provides.  
   (c) The total aggregate limit of liability under the policy or
policies of insurance required under this section shall be as
follows:  
   (1) For a limited liability company licensee with five or fewer
persons listed on the members of the personnel of record, the
aggregate limit shall not be less than one million dollars
($1,000,000).  
   (2) For a limited liability company licensee with more than five
persons listed on the members of the personnel of record, an
additional one hundred thousand dollars ($100,000) of insurance shall
be obtained for each person listed on the personnel of record of the
licensee except that the maximum amount of insurance is not required
to exceed five million dollars ($5,000,000) in any one designated
period, less amounts paid in defending, settling, or discharging
claims as set forth under this section.  
   (d) Prior to the issuance, reinstatement, or reactivation of a
limited liability company license as provided under this chapter, the
applicant or licensee shall, in the manner prescribed by the bureau,
submit the information and documentation required by this section
and requested by the bureau, demonstrating compliance with the
financial security requirements specified by this section.  

   (e) For any insurance policy secured by a licensee in satisfaction
of this section, a Certificate of Liability Insurance, signed by an
authorized agent or employee of the insurer, shall be submitted
electronically or otherwise to the bureau. The insurer issuing the
certificate shall report to the bureau the following information for
any policy required under this section: name, license number, policy
number, dates that coverage is scheduled to commence and lapse, the
date and amount of any payment of claims, and cancellation date if
applicable.  
   (f) If a licensee fails to maintain sufficient insurance as
required by this section, the license is subject to suspension. 

   (g) Where the license of a limited liability company is suspended
pursuant to subdivision (f), each member of the limited liability
company shall be personally liable up to one million dollars
($1,000,000) each for damages resulting to third parties in
connection with the company's performance, during the period of
suspension, of any act or contract where a license is required by
this chapter.  
   (h) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 21.    Section 7599.34 is added to the 
 Business and Professions Code   , to read:  
   7599.34.   (a) No licensee shall conduct a business as an
individual, partnership, or corporation unless the licensee holds a
valid license issued to that exact same individual, partnership, or
corporation. A violation of this section may result in a fine of one
hundred dollars ($100) for each violation.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 14.   SEC. 22.   Section 7599.42 of
the Business and Professions Code is amended to read:
   7599.42.   (a)    Within seven days after any
violent incident involving a dangerous weapon that has been caused by
or occurred upon a licensee or any officer, partner, managing
member, qualified manager, or employee of a licensee, while acting
within the course and scope of his or her employment, and that
results in bodily injury to any person or death of any person
involved in that incident or of any discharge of a weapon, excluding
any discharge which occurs on the range, the licensee or his or her
manager shall mail or deliver to the chief a detailed report of the
incident. The report shall describe fully the circumstances
surrounding the incident, any injuries or damages incurred, the
identity of all participants, and whether a police investigation was
conducted. A violation of this section may result in a fine of
twenty-five dollars ($25) for the first violation and one hundred
dollars ($100) for each subsequent violation. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 23.   Section 7599.42 is added to the  
Business and Professions Code   , to read:  
   7599.42.  (a) Within seven days after any violent incident
involving a dangerous weapon, that has been caused by or occurred
upon a licensee or any officer, partner, qualified manager, or
employee of a licensee, while acting within the course and scope of
his or her employment, and that results in bodily injury to any
person or death of any person involved in that incident or of any
discharge of a weapon, excluding any discharge which occurs on the
range, the licensee or his or her manager shall mail or deliver to
the chief a detailed report of the incident. The report shall
describe fully the circumstances surrounding the incident, any
injuries or damages incurred, the identity of all participants, and
whether a police investigation was conducted. A violation of this
section may result in a fine of twenty-five dollars ($25) for the
first violation and one hundred dollars ($100) for each subsequent
violation.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 15.   SEC. 24.   Section 7599.43 of
the Business and Professions Code is amended to read:
   7599.43.   (a)    Within seven days after
receiving a final civil court judgment filed against the licensee or
any officer, partner, managing member, qualified manager, or employee
of a licensee for an amount of more than five hundred dollars ($500)
pertaining to any act done within the course and scope of his or her
employment that may be in violation of this chapter, the licensee or
his or her manager shall mail or deliver to the chief a copy of the
judgment. A violation of this section may result in a fine of
twenty-five dollars ($25) for the first violation and one hundred
dollars ($100) for each subsequent violation. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 25.   Section 7599.43 is added to the  
Business and Professions Code   , to read:  
   7599.43.  (a) Within seven days after receiving a final civil
court judgment filed against the licensee or any officer, partner,
qualified manager, or employee of a licensee for an amount of more
than five hundred dollars ($500) pertaining to any act done within
the course and scope of his or her employment that may be in
violation of this chapter, the licensee or his or her manager shall
mail or deliver to the chief a copy of the judgment. A violation of
this section may result in a fine of twenty-five dollars ($25) for
the first violation and one hundred dollars ($100) for each
subsequent violation.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 16.   SEC. 26.   Section 7599.48 of
the Business and Professions Code is amended to read:
   7599.48.   (a)    No licensee, or officer,
partner, managing member, manager, or employee of a licensee, shall
knowingly make any false report to his or her employer or client for
whom information is being obtained. A violation of this section may
result in a fine of one hundred dollars ($100) for the first
violation, and five hundred dollars ($500) for each subsequent
violation. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date. 
   SEC. 27.    Section 7599.48 is added to the 
 Business and Professions Code   , to read:  
   7599.48.  (a) No licensee, or officer, partner, manager, or
employee of a licensee, shall knowingly make any false report to his
or her employer or client for whom information is being obtained. A
violation of this section may result in a fine of one hundred dollars
($100) for the first violation, and five hundred dollars ($500) for
each subsequent violation.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 17.   SEC. 28.   Section 7599.61 of
the Business and Professions Code is amended to read:
   7599.61.   (a)    The director may suspend or
revoke an alarm company operator license, a qualified manager
certificate, an alarm agent registration, or a firearms permit,
issued under this chapter, if the director determines that the
licensee or his or her manager, if an individual, or if the licensee
is a person other than an individual, or his or her employees, that
any of its officers, partners, managing members, employees, or its
manager, has: 
   (a) 
    (1)  Made any false statement or given any false
information in connection with an application for a license or a
renewal or reinstatement of a license. 
   (b) 
    (2)  Violated any provisions or committed any prohibited
acts of this chapter. 
   (c) 
    (3)  Been convicted of any felony or misdemeanor
including illegally using, carrying, or possessing a dangerous
weapon. 
   (d) 
    (4)  Committed or permitted any employee to commit any
act, while the license was expired, which would be cause for the
suspension or revocation of a license, or grounds for the denial of
an application for a license. 
   (e) 
    (5)  Committed assault, battery, or kidnapping, or used
force or violence on any person, without proper justification.

   (f) 
    (6)  Violated, or advised, encouraged, or assisted the
violation of any court order or injunction in the course of business
as a licensee. 
   (g) 
    (7)  Been convicted of a violation of Section 148 of the
Penal Code. 
   (h) 
    (8)  Committed any act which is a ground for denial of
an application for license under this chapter. 
   (i) 
    (9)  Committed any act prohibited by Chapter 1.5
(commencing with Section 630) of Title 15 of Part 1 of the Penal
Code. 
   (j) 
    (10)  Committed any act in the course of the licensee's
business constituting dishonesty or fraud. 
   (b) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
   SEC. 29.    Section 7599.61 is added to the 
 Business and Professions Code   , to read:  
   7599.61.  (a) The director may suspend or revoke an alarm company
operator license, a qualified manager certificate, an alarm agent
registration, or a firearms permit, issued under this chapter, if the
director determines that the licensee or his or her manager, if an
individual, or if the licensee is a person other than an individual,
or his or her employees, that any of its officers, partners,
employees, or its manager, has:
   (1) Made any false statement or given any false information in
connection with an application for a license or a renewal or
reinstatement of a license.
   (2) Violated any provisions or committed any prohibited acts of
this chapter.
   (3) Been convicted of any felony or misdemeanor including
illegally using, carrying, or possessing a dangerous weapon.
   (4) Committed or permitted any employee to commit any act, while
the license was expired, which would be cause for the suspension or
revocation of a license, or grounds for the denial of an application
for a license.
   (5) Committed assault, battery, or kidnapping, or used force or
violence on any person, without proper justification.
   (6) Violated, or advised, encouraged, or assisted the violation of
any court order or injunction in the course of business as a
licensee.
   (7) Been convicted of a violation of Section 148 of the Penal
Code.
   (8) Committed any act which is a ground for denial of an
application for license under this chapter.
   (9) Committed any act prohibited by Chapter 1.5 (commencing with
Section 630) of Title 15 of Part 1 of the Penal Code.
                                                        (10)
Committed any act in the course of the licensee's business
constituting dishonesty or fraud.
   (b) This section shall become operative on January 1, 2016. 
   SEC. 18.   SEC. 30.   Section 7599.70 of
the Business and Professions Code is amended to read:
   7599.70.  Effective July 1, 1998, the bureau shall establish and
assess fees and penalties for licensure and registration as follows:
   (a) A company license application fee may not exceed thirty-five
dollars ($35).
   (b) An original license fee for an alarm company operator license
may not exceed two hundred eighty dollars ($280). A renewal fee for
an alarm company operator license may not exceed three hundred
thirty-five dollars ($335).
   (c) A qualified manager application and examination fee may not
exceed one hundred five dollars ($105).
   (d) A renewal fee for a qualified manager may not exceed one
hundred twenty dollars ($120).
   (e) An original license fee and renewal fee for a branch office
certificate may not exceed thirty-five dollars ($35).
   (f) Notwithstanding Section 163.5, the reinstatement fee as
required by Sections 7593.12 and 7598.17 is the amount equal to the
renewal fee plus a penalty of 50 percent thereof.
   (g) A fee for reexamination of an applicant for a qualified
manager may not exceed two hundred forty dollars ($240).
   (h) An initial registration fee for an alarm agent may not exceed
seventeen dollars ($17).
   (i) A registration renewal fee for an alarm agent may not exceed
seven dollars ($7).
   (j) A firearms qualification fee may not exceed eighty dollars
($80) and a firearms requalification fee may not exceed sixty dollars
($60).
   (k) The fingerprint processing fee is that amount charged the
bureau by the Department of Justice.
   (  l  ) The processing fee required pursuant to Sections
7593.7 and 7598.14 is the amount equal to the expenses incurred to
provide a photo identification card.
   (m) The fee for a "Certificate of Licensure" may not exceed fifty
dollars ($50).
   (n) The delinquency fee is 50 percent of the renewal fee in effect
on the date of expiration, but not less than twenty-five dollars
($25).
   (o) The processing fee for the assignment of an alarm company
operator license pursuant to Section 7593.15 may not exceed one
hundred twenty-five dollars ($125).
   SEC. 19.   SEC. 31.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.