BILL NUMBER: AB 1097	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 11, 2015

INTRODUCED BY   Assembly Member Holden

                        FEBRUARY 27, 2015

   An act to add Section 7599.56 to the Business and Professions
Code, and to amend  Sections 1633.3 and 1689.5  
Section 1633.3  of the Civil Code, relating to alarm companies.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1097, as amended, Holden. Alarm companies: electronic
transactions.
   The Alarm Company Act provides for the licensure and regulation of
alarm company operators and the certification and registration of
employees of alarm companies, including alarm agents, by the Bureau
of Security and Investigative Services within the Department of
Consumer Affairs. That act requires that specified agreements entered
into by an alarm company pertaining to alarm systems, including,
among others, lease agreements, monitoring agreements, service
agreements, and installation agreements, be in writing. The Uniform
Electronic Transactions Act (UETA) generally allows parties to
contract to conduct transactions by electronic means, imposes
specified requirements on electronic transactions in order to comply
with the act, and provides specified protections for electronic
transactions conducted pursuant to the act. UETA does not apply to
certain transactions, including, among others, "home solicitation
contracts," as defined. Existing law provides specified time periods
for consumers to cancel a home solicitation contract, and requires
specified disclosures and statements, and separately executed
cancellation documents in connection with the execution of those
contracts.
   This bill would provide that, notwithstanding certain provisions
in UETA excluding home solicitation contracts, contracts for services
or other activities authorized by the Alarm Company Act may be
conducted by electronic means. The bill would provide that the
provisions of UETA would apply to transactions conducted by persons
licensed, certified, or registered pursuant to the Alarm Company Act,
for purposes authorized by the Alarm Company Act, as specified.
 The bill would also exclude contracts for services or other
activities authorized by the Alarm Company Act from the definition of
a home solicitation contract.  The bill would require those
electronic contracts for services or other activities authorized by
the Alarm Company Act to comply with specified cancellation periods,
statements, and disclosures that apply to home solicitation
contracts, and would authorize signatures, disclosures, and documents
required by those provisions to be provided and transmitted
electronically.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 7599.56 is added to the Business and
Professions Code, to read:
   7599.56.  (a)  Contracts   Notwithstanding
Section 7599.54, contracts  for services or other activities
authorized by this chapter may be conducted by electronic means.
Notwithstanding subdivisions (b) and (c) of Section 1633.3 of the
Civil Code, the Uniform Electronic Transactions Act (Title 2.5
(commencing with Section 1633.1) of Part 2 of Division 3 of the Civil
Code) applies to electronic records and electronic signatures
relating to transactions conducted by a person licensed, certified,
or registered pursuant to this chapter, for purposes of activities
authorized by this chapter. An electronic contract for services or
other activities authorized by this chapter shall not be used without
the consent of the contracting consumer.
   (b)  Contracts   Notwithstanding Section
1689.6 of the Civil Code, for contracts  for services or other
activities authorized by this  chapter shall comply with
paragraph (1) of subdivision (a) of, and subdivisions (d) and (e) of,
Section 1689.6 of the Civil Code, provided however, that 
 chapter,  a notice of cancellation and copies of the
contract or offer described in those provisions may be provided and
transmitted electronically.
   (c)  Contracts   Notwithstanding Section
1689.7 of the Civil Code, for contracts  for services or other
activities authorized by this  chapter shall comply with
paragraph (1) of subdivision (a) of, and subdivision (c) of, Section
1689.7 of the Civil Code, provided however, that  
chapter,  the signatures, disclosures, and documents described
in those provisions may be provided and transmitted electronically.
  SEC. 2.  Section 1633.3 of the Civil Code, as amended by Section 3
of Chapter 913 of the Statutes of 2014, is amended to read:
   1633.3.  (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
   (b) This title does not apply to transactions subject to the
following laws:
   (1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
   (2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
   (3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
   (4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
   (c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Chapter 2b (commencing with Section 2981) or 2d (commencing
with Section 2985.7) of Title 14 of Part 4 of Division 3 of, Section
3071.5 of, Part 5 (commencing with Section 4000) of Division 4 of, or
Part 5.3 (commencing with Section 6500) of Division 4 of this code,
subdivision (b) of Section 18608 or Section 22328 of the Financial
Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5 of the
Health and Safety Code, Section 662, paragraph (2) of subdivision
(a) of Section 663, 664, 667.5, 673, 677, paragraph (2) of
subdivision (a) of Section 678, subdivisions (a) and (b) of Section
678.1, Section 786, 10113.7, 10127.7, 10127.9, 10127.10, 10192.18,
10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09,
or 11624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482 of
the Public Utilities Code, or Section 9975 or 11738 of the Vehicle
Code. An electronic record may not be substituted for any notice that
is required to be sent pursuant to Section 1162 of the Code of Civil
Procedure. Nothing in this subdivision shall be construed to
prohibit the recordation of any document with a county recorder by
electronic means.
   (d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
   (e) A transaction subject to this title is also subject to other
applicable substantive law.
   (f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
   (g) Notwithstanding subdivisions (b) and (c), this title shall
apply to electronic records and electronic signatures relating to
transactions conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by that act.
   (h) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
  SEC. 3.  Section 1633.3 of the Civil Code, as amended by Section 4
of Chapter 913 of the Statutes of 2014, is amended to read:
   1633.3.  (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
   (b) This title does not apply to transactions subject to the
following laws:
   (1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
   (2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
   (3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
   (4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
   (c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Chapter 2b (commencing with Section 2981) or 2d (commencing
with Section 2985.7) of Title 14 of Part 4 of Division 3 of, Section
3071.5 of Part 5 (commencing with Section 4000) of Division 4 of, or
Part 5.3 (commencing with Section 6500) of Division 4 of this code,
subdivision (b) of Section 18608 or Section 22328 of the Financial
Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or 18035.5 of the
Health and Safety Code, Section 662, 663, 664, 667.5, 673, 677, 678,
678.1, 786, 10086, 10113.7, 10127.7, 10127.9, 10127.10, 10192.18,
10199.44, 10199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09,
or 11624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482 of
the Public Utilities Code, or Section 9975 or 11738 of the Vehicle
Code. An electronic record may not be substituted for any notice that
is required to be sent pursuant to Section 1162 of the Code of Civil
Procedure. Nothing in this subdivision shall be construed to
prohibit the recordation of any document with a county recorder by
electronic means.
   (d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
   (e) A transaction subject to this title is also subject to other
applicable substantive law.
   (f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
   (g) Notwithstanding subdivisions (b) and (c), this title shall
apply to electronic records and electronic signatures relating to
transactions conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by that act.
   (h) This section shall become operative on January 1, 2019.

  SEC. 4.    Section 1689.5 of the Civil Code is
amended to read:
   1689.5.  As used in Sections 1689.6 to 1689.11, inclusive, and in
Section 1689.14:
   (a) "Home solicitation contract or offer" means any contract,
whether single or multiple, or any offer which is subject to
approval, for the sale, lease, or rental of goods or services or
both, made at other than appropriate trade premises in an amount of
twenty-five dollars ($25) or more, including any interest or service
charges. "Home solicitation contract" does not include any contract
under which the buyer has the right to rescind pursuant to Title 1,
Chapter 2, Section 125 of the federal Consumer Credit Protection Act
(Public Law 90-321) and the regulations promulgated pursuant thereto.
"Home solicitation contract" does not include a contract for goods
or services conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by that act.
   (b) "Appropriate trade premises," means premises where either the
owner or seller normally carries on a business, or where goods are
normally offered or exposed for sale in the course of a business
carried on at those premises.
   (c) "Goods" means tangible chattels bought for use primarily for
personal, family, or household purposes, including certificates or
coupons exchangeable for these goods, and including goods that, at
the time of the sale or subsequently, are to be so affixed to real
property as to become a part of the real property whether or not
severable therefrom, but does not include any vehicle required to be
registered under the Vehicle Code, nor any goods sold with this
vehicle if sold under a contract governed by Section 2982, and does
not include any mobilehome, as defined in Section 18008 of the Health
and Safety Code, nor any goods sold with this mobilehome if either
are sold under a contract subject to Section 18036.5 of the Health
and Safety Code.
   (d) "Services" means work, labor and services, including, but not
limited to, services furnished in connection with the repair,
restoration, alteration, or improvement of residential premises, or
services furnished in connection with the sale or repair of goods as
defined in Section 1802.1, and courses of instruction, regardless of
the purpose for which they are taken, but does not include the
services of attorneys, real estate brokers and salesmen, securities
dealers or investment counselors, physicians, optometrists, or
dentists, nor financial services offered by banks, savings
institutions, credit unions, industrial loan companies, personal
property brokers, consumer finance lenders, or commercial finance
lenders, organized pursuant to state or federal law, that are not
connected with the sale of goods or services, as defined herein, nor
the sale of insurance that is not connected with the sale of goods or
services as defined herein, nor services in connection with the sale
or installation of mobilehomes or of goods sold with a mobilehome if
either are sold or installed under a contract subject to Section
18036.5 of the Health and Safety Code, nor services for which the
tariffs, rates, charges, costs, or expenses, including in each
instance the time sale price, is required by law to be filed with and
approved by the federal government or any official, department,
division, commission, or agency of the United States or of the state.

   (e) "Business day" means any calendar day except Sunday, or the
following business holidays: New Year's Day, Washington's Birthday,
Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans'
Day, Thanksgiving Day, and Christmas Day.
   (f) This section shall become operative on January 1, 2006.