BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 759|
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THIRD READING
Bill No: AB 759
Author: Daly (D)
Amended: 1/14/14 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE BUSINESS, PROF. & ECON. DEV. COMM : 9-0, 1/13/14
AYES: Lieu, Block, Corbett, Galgiani, Hernandez, Hill, Padilla,
Wyland, Yee
NO VOTE RECORDED: Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Alarm companies
SOURCE : ADT Security Services
DIGEST : This bill expands the locksmith license exemption to
include a person registered with the Bureau of Security and
Investigative Services (BSIS), pursuant to the Alarm Company
Act, if the duties of the person that constitute locksmithing
are ancillary to the primary duties and functions of an alarm
agent.
ANALYSIS :
Existing law:
1.Licenses and regulates alarm companies and employees,
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locksmith companies and locksmiths, security guards,
proprietary private security employers and officers, private
investigators, private patrol operators, and repossession
agencies and their employees by the BSIS within the Department
of Consumer Affairs (DCA).
2.Licenses and regulates locksmiths and registers employees of
locksmiths by the BSIS by:
A. Defining "locksmith" to mean any person who, for any
consideration or compensation, engages in the business of
rekeying, installing, repairing, opening or modifying
locks, or who originates keys for locks, including
electronic cloning of transponder keys and any other
electronic programming of automotive keys and electronic
operating devices, such as key fobs, door and ignition key
devices, and successive electronic and other high-security
key technology. A "locksmith" does not mean a person whose
activities are limited to making a duplicate key from an
existing key.
B. Prohibiting a person from engaging in the activities of
a locksmith unless he/she holds a valid locksmith license,
is registered under the locksmith law, or is exempt from
the provisions of the locksmith law.
C. Exempting from locksmith licensing and regulation
certain individuals and practices, including, but not
limited to, tow truck operators, retail services limited to
rekeying and recombination of locks, law enforcement
officers, firefighters, emergency medical personnel, and
new motor vehicle dealers.
D. Further exempting from locksmith licensing a person
registered with the BSIS as an employee of a repossessor,
if the duties constituting locksmithing are ancillary to
the primary duties and functions of the person's position.
1.Licenses and regulates repossession agencies, as defined,
repossessors, and repossessor qualified managers by BSIS under
the Collateral Recovery Act.
2.Licenses and regulates alarm company operators and certifies
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and registers employees of alarm companies, including alarm
agents, under the Alarm Company Act; defines "alarm company
operator" to mean any person who, for any consideration,
engages in business or accepts employment to install,
maintain, alter, sell, monitor, or service alarm systems, or
who responds to alarm systems, except for any alarm agent, as
specified; and provides that a "person" under this Act means
any individual, firm, company, association, organization,
partnership, limited liability company (LLC), or corporation.
This bill expands the locksmith license or registration
exemption to include a person, who is licensed, certified, or
registered with the BSIS, pursuant to the Alarm Company Act, if
the duties of the person that constitute locksmithing are
ancillary to the primary duties and functions of an alarm agent.
Background
The current issue in this bill relating to alarm companies
carrying out certain locksmithing functions was raised late in
the first year of this Session by the bill's sponsor. SB 1077
(Price, Chapter 291, Statutes of 2012) authorized an alarm
company to be organized and licensed by BSIS as an LLC.
In applying this new business structure, licensed alarm
companies have ran into difficulty because of the crossover
between the practice of locksmithing and alarm companies in
installing and monitoring electronic surveillance systems that
monitor door locks and allow the alarm company and/or the owner
to remotely lock and unlock the doors of a building. Under the
provisions of the Locksmith Act, only a licensed locksmith can
install and maintain such a system. Therefore, in order for a
licensed alarm company to install door locking devices in an
alarm system, the alarm company must either obtain a locksmith
license or employ or hire a licensed locksmith to carry out
those activities. Initially, alarm companies licensed as LLCs,
sought to become licensed as locksmiths; however, it was found
that licensed locksmiths are not allowed to be organized as LLCs
under the law. In addition, since the practice of locksmithing
and alarm companies are both licensed and regulated by BSIS,
both types of licensees must undergo criminal background checks
by the BSIS.
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The proponents of this bill contend that requiring an alarm
company to also be licensed as a locksmith, or to use a licensed
locksmith is unnecessary and duplicative, since both are under
the jurisdiction of the BSIS. In addition, proponents would
suggest this bill narrowly addresses the issue by authorizing
only those locksmithing functions that are ancillary to the
primary duties and functions of the alarm company practice.
Comments
According to the author's office, alarm company operators and
locksmiths are licensed and regulated by the Bureau of Security
and Investigative Services. Current statue relating to alarm
companies does not reflect the emerging home automation security
market. Home automation security systems include the ability to
control locks, turn off lights remotely, open and close window
blinds, and adjust room temperature. Installation and altering
of locking mechanisms is a major service component of these
security systems.
The author's office states, that whereas locksmiths must be
licensed by the state, certain professions such as tow truck
operators and repossessors are not required to do so. This bill
will exempt alarm companies from being required to obtain a
locksmith license if locksmithing is part of its service model.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 1/21/14)
ADT Security Services (source)
California Alarm Association
OPPOSITION : (Verified 1/21/14)
California Locksmiths Association
ARGUMENTS IN SUPPORT : The bill's sponsor, ADT Security
Services argues: "Licensing requirements and other regulations
should be commensurate with the responsibilities performed. In
this case, we believe requiring alarm companies to also hold
locksmith licenses is duplicative and unnecessary. AB 759
builds on an existing exemption within the Locksmith Law that
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was provided to the repossesser industry, because their work
with locks is ancillary to their primary duties, just as they
are for alarm companies. Alarm companies should continue to be
fully licensed as alarm companies, but we do not believe that
they should need a second, duplicative license from the BSIS to
offer their products within the State of California."
The California Alarm Association states: "The security industry
is advancing in leaps and bounds. Many new security systems
allow homeowners and businesses to control their security
systems from their phones or other remote devices. Alarms
systems, lights, climate controls, and door locks can now all be
controlled remotely. Installing these new technologically
advanced systems requires alarm companies to install new door
locks. Technically this work could be construed to be
locksmithing, which would require the alarm company to get a
locksmithing license. However, securing a second license is
redundant because both locksmiths and alarm companies are
licensed by the BSIS and undergo the same background checks and
other similar application processes. AB 759 would remove a
costly and burdensome redundancy in the licensing process by
allowing alarm companies to install new door locks as long as
they are part of a new security system."
ARGUMENTS IN OPPOSITION : According to the California
Locksmiths Association, "The bill as now worded would exempt
from the California Locksmith Act persons who are registered
with the state as an alarm company employee if the person's
duties are 'ancillary' to the primary functions of installing,
maintaining or monitoring the alarm system. The term
'ancillary' is so vague that it provides an exemption that could
be claimed by practically any alarm company employee." They
further state, "There is no urgent need for the California
Legislature to enact AB 759 as an urgency measure. Instead of
the proposed expedited rush towards a new exemption from
consumer protection, the development and implementation of new
technologies in the field of home automation security systems
support a thorough review of these technologies and the
identification of appropriate protections for consumers who
purchase these products and services. ? There is no finding that
the California Locksmith Act is preventing consumers from
promptly securing residential and business properties using
alarm systems with automated locking features that warrants the
AB 759-proposed exemption from the Act."
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MW:nl 1/22/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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