BILL ANALYSIS Ó SB 1077 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1077 (Price) - As Amended: June 27, 2012 Policy Committee: Business and Professions Vote: 9 - 0 Judiciary 9 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill authorizes a licensed alarm company to be organized as a limited liability company (LLC) until January 1, 2016, and authorizes the Bureau of Security and Investigate Services (BSIS) to cite unlicensed alarm company operators. Specifically, this bill: 1)Establishes a comprehensive system for BSIS to cite and issue fines up to $5,000 to a person for unlicensed activity under the Act. 2)Authorizes a licensed alarm company to be organized as an LLC until January 1, 2016, and makes conforming changes to the licensing provisions of the Alarm Company Act. 3)Authorizes an alarm company to apply with BSIS to assign the license to another business entity as long as the direct and indirect owners are unchanged. 4)Establishes a processing fee not to exceed $125 for the assignment of an alarm company operator license. FISCAL EFFECT 1)Costs associated with this legislation would be minor and absorbable within existing BSIS resources. 2)Allowing BSIS to issue citations to unlicensed practitioners would likely result in about $40,000 per year in increased revenue. (Private Security Services Fund) SB 1077 Page 2 COMMENTS 1)Purpose . This bill makes minor changes to Alarm Company Act. It allows alarm companies to form a business as a LLC and specifies that the applicant must provide specific information and documents with his/her application regarding licensure as a burglar alarm company. It will also allow existing licensees to change their business structure, with the approval of BSIS, as long as the current principles of the business remain the same at the time of the change. Finally, this bill gives BSIS the ability to cite unlicensed individuals who are operating alarm companies. 2)Background . Currently, BSIS licenses approximately 18,604 alarm companies, qualified managers and alarm employees. In 2011-12, BSIS received approximately 286 complaints regarding alarm companies and their employees. Many of the complaints were regarding unlicensed practitioners. Currently, BSIS conducts investigations into these types of complaints but has no authority to take action against the unlicensed practitioners if found at fault. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081