BILL ANALYSIS Ó
AB 759
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 759 (Daly)
As Amended March 28, 2014
2/3 vote. Urgency
----------------------------------------------------------------------
|ASSEMBLY: | |(May 23, 2013) |SENATE: |33-0 |(April 7, 2014) |
----------------------------------------------------------------------
(vote not relevant)
------------------------------------------------------------------------
|COMMITTEE VOTE: |14-0 |(April 22, 2014) |RECOMMENDATION: |concur |
|(B., P. & C.P.) | | | | |
------------------------------------------------------------------------
Original Committee Reference: B., P. & C.P.
SUMMARY : Expands the locksmith licensure exemption to include a
person who is licensed, certified, or registered with the Bureau of
Security and Investigative Services (BSIS) pursuant to the Alarm
Company Act, if the locksmithing duties of that person are
performed in combination with the installation or maintenance of an
alarm system, as specified, and limited to work on electronic locks
or access control devices that are controlled by an alarm system.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Exempt any person licensed, certified, or registered with BSIS
under the Alarm Company Act from locksmithing requirements, as
specified, if the duties of that person's position that
constitute locksmithing are performed in combination with the
installation, maintenance, moving, repairing, replacing,
servicing, or reconfiguration of an alarm system as defined, and
limited to work on electronic locks or access control devices
that are controlled by an alarm system control device, including
the removal of existing hardware.
2)Make technical and conforming changes.
3)Declare that the bill is to take effect immediately as an urgency
statute.
AB 759
Page 2
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
1)This bill expands the locksmith license exemption to include an
alarm company operator or employee if the locksmithing duties of
that person are performed in combination with the installation or
maintenance of an alarm system, as specified, in order to reflect
new technologies in alarm systems and eliminate duplicative
licensure requirements. By authorizing alarm companies to
install and maintain locks that are part of an alarm system and
for which they have special expertise, the author aims to do away
with the need for dual licensure or the use of an outside
professional to install their own technology, which would in turn
reduce the cost of providing the service. The bill is sponsored
by ADT Security Services.
2)According to the author, "Currently, [some] alarm companies are
required by law to undergo two background checks by the Bureau of
Security and Investigative Services (BSIS) as both an alarm
company and as locksmiths.
"Since some security systems allow the ability to remotely lock and
unlock doors, BSIS has determined that alarm companies must
obtain a secondary locksmith license to continue business
operations.
"Current [statutes] relating to alarm companies [do] 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.
"Whereas locksmiths must be licensed by the state, certain
professions such as tow truck operators and re-possessors are not
required to do so. [This bill] streamlines state law on
locksmith licensing requirements, as well as reflects
technological advances in home security systems, by exempting
alarm companies from locksmith licensing requirements if the
management of locks is part of their service models.
"Recent Senate [amendments] further clarified the conditions upon
which an exemption would apply for alarm companies."
AB 759
Page 3
3)Licensure requirements for both locksmiths and alarm companies
are nearly identical. Applicants for both types of licensure
must complete an application that provides specified business
information and identifies who will manage the business on a
day-to-day business, and each individual applicant, partner, or
corporate officer must undergo a background check. Locksmith and
alarm company employees must also register with BSIS and obtain
criminal background checks.
There are no education or examination requirements to obtain a
license as a locksmith company or an alarm company, or to
register as a locksmith or alarm company employee. However,
alarm companies are required to have a qualified manager who is
in charge of the day-to-day business operations, and that
qualified manager is required to have at least two years of alarm
company experience and must pass an examination that requires
knowledge of alarm systems and alarm company laws.
In addition, similar business conduct requirements apply to
locksmith and alarm companies, which are both under BSIS's
regulatory authority.
4)Many alarm companies incorporate the use of electronic
surveillance systems that monitor door locks and allow the alarm
company or the owner to remotely lock and unlock doors of a
building. Under existing law, 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.
SB 1077 (Price), Chapter 291, Statutes of 2012, authorized alarm
companies to be organized and licensed by BSIS as a limited
liability company (LLC). Initially, alarm companies licensed as
LLCs sought to become licensed as locksmiths; however, it was
found that licensed locksmiths are not authorized to organize as
LLCs. 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.
The proponents of this bill contend that requiring an alarm company
to also be licensed as a locksmith is unnecessary and
duplicative, since both are under the jurisdiction of the BSIS,
and that the bill makes clear that the exemption only applies to
AB 759
Page 4
door locks that are part of an overall alarm system.
5)According to the sponsors, "Recently, it has come to our
attention, and that of BSIS, that alarm companies be licensed and
background checked as both alarm companies and as locksmiths due
to the fact that some security systems include the ability to
remotely lock and unlock doors. This double-licensure is
required despite the fact that these locks are ancillary to the
work alarm companies perform. Licensing requirements and other
regulations should be commensurate with the responsibilities
performed. In this case, requiring alarm companies to also hold
locksmith licenses is duplicative and unnecessary.
"[This bill] builds on an existing exemption within the Locksmith
law that was provided to the repossessor industry. The door
locks that are included in this exemption are as much a part of
the alarm system as all the components that make up that system,
and [the] recent amendments make it clear that the exemption is
only for locks that are part of an overall alarm system. Alarm
companies will 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."
6)The California Locksmith's Association (CLA) is oppose to the
bill and writes, "While the March 28 amendments to AB 759 replace
the 'ancillary exemption' provision, the new paragraph would
enable alarm companies to engage in locksmithing that involves
door hardware essential for the protection of individuals, which
CLA believes is best preserved in the California Locksmith Act
[Act]. There are 5,783 locksmiths registered under the Act.
"The AB 759 amendments include undefined terms that would enable
alarm companies to provide locksmithing on residential and
commercial doors where the state codes mandate specific locks on
doors to preserve the ability to leave buildings without delay or
obstruction especially when there is a fire or emergency. In
these situations, a locksmithing license is essential. The law
must be specific to ensure public safety and consumer
protection."
Analysis Prepared by : Eunie Linden / B., P. & C.P. / (916)
319-3301
AB 759
Page 5
FN: 0003201