Amended in Senate September 4, 2015

Amended in Assembly May 11, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1097


Introduced by Assembly Member Holden

February 27, 2015


An act tobegin insert amend Section 7599.54 of, and toend insert add Section 7599.56begin delete toend deletebegin insert to,end insert the Business and Professions Code, and tobegin delete amendend deletebegin insert amend, repeal, and addend insert 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 specifiedbegin insert installationend insert agreements entered into by an alarm company pertaining to alarm systems, including, among others, lease agreements, monitoring agreements,begin delete service agreements, andend deletebegin insert and service agreements relating to thoseend insert 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 providebegin delete that, notwithstanding certain provisions in UETA excluding home solicitation contracts,end deletebegin insert thatend insert contracts for services or other activitiesbegin delete authorized by the Alarm Company Actend deletebegin insert relating to installation agreements for alarm systemsend insert 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 purposesbegin delete authorized by the Alarm Company Act,end deletebegin insert of those installation agreements,end insert as specified. The bill would require those electronic contracts for services or other activitiesbegin delete authorized by the Alarm Company Actend deletebegin insert relating to installation agreementsend insert 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.

begin insert

This bill would incorporate changes to Section 1633.3 of the Civil Code proposed by both this bill and AB 1131, which would become operative only if both bills are enacted and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 7599.54 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

7599.54.  

begin deleteEvery end deletebegin insertExcept as provided by Section 7599.56, every end insert
4agreement, including, but not limited to, lease agreements,
5monitoring agreements, and service agreements, including all
6labor, services, and materials to be provided for the installation of
7an alarm system, shall be in writing.begin delete Allend deletebegin insert Except as provided by
8Section 7599.56, allend insert
amendments subject to the provisions of this
9section to an initial agreement shall be in writing. Each initial
10agreement shall contain, but not be limited to, the following:

11(a) The name, business address, business telephone number,
12and license number of the licensed alarm company operator and
P3    1the registration number of any alarm agent who solicited or
2negotiated the agreement.

3(b) The approximate dates when the work will begin and be
4substantially completed.

5(c) A description of the work to be done, a description of the
6materials to be used, and the agreed consideration for the work.

7(d) A disclosure that alarm company operators are licensed and
8regulated by the Bureau of Security and Investigative Services,
9Department of Consumer Affairs, Sacramento, CA, 95814.

10(e) A description of the alarm system including the major
11components thereof and services to be provided to the purchaser
12once the alarm is installed, including response or monitoring
13services, if any.

14(f) Other matters agreed to by the parties of the contract. The
15agreement shall be legible and shall be in a form as to clearly
16describe any other document which is to be incorporated into the
17contract, and, before any work is done, the client shall be furnished
18with a copy of the written agreement signed by the licensee.

19(g) A statement setting forth that upon completion of the
20installation of the alarm system, the alarm company shall
21thoroughly instruct the purchaser in the proper use of the alarm
22system.

23(h) In the event a mechanic’s lien is to be utilized, a
24notice-to-owner statement which shall describe, in nontechnical
25language and in a clear and coherent manner using words with
26common and everyday meaning, the pertinent provisions of this
27state’s mechanics’ lien laws and the rights and responsibilities of
28an owner of property and a contractor thereunder, including the
29provisions relating to the filing of a contract concerning a work of
30improvement with the county recorder and the recording in the
31office of a contractor’s payment bond for private work.

32(i) In addition to the above, every initial residential sales and
33lease agreement, the total cost which over the time period fixed
34by the agreement exceeds two hundred fifty dollars ($250),
35including the cost of all labor, service, or material to be provided
36by the licensee for the installation, shall include, but not be limited
37to, the following:

38(1) A schedule of payments showing the amount of each
39payment as a sum in dollars and cents. This schedule of payments
P4    1 shall be referenced to the amount of work for services to be
2performed or to any materials or equipment to be supplied.

3(2) If the payment schedule contained in the agreement provides
4for a down payment to be paid to the licensee by the owner or the
5tenant before commencement of the work, that down payment
6shall not exceed one thousand dollars ($1,000) or 10 percent of
7the contract price, excluding finance charges, whichever is the
8lesser.

9(3) In no event shall the payment schedule provide that the
10licensee receive, nor shall the licensee actually receive, payment
11in excess of 100 percent of the value of the work performed on
12the project at any time, excluding finance charges, except that the
13licensee may receive an initial down payment authorized by
14paragraph (2). A failure by the licensee, without legal excuse, to
15substantially commence work within 20 days of the approximate
16 date specified in the contract when work is to commence, shall
17postpone the next succeeding payment to the licensee for that
18period of time equivalent to the time between when substantial
19commencement was to have occurred and when it did occur.

20(4) A notice-to-owner statement which shall describe, in
21nontechnical language and in a clear and coherent manner using
22words with common and everyday meaning, the pertinent
23provisions of this state’s mechanics’ lien laws and the rights and
24responsibilities of an owner of property and a contractor thereunder,
25including the provisions relating to the filing of a contract
26concerning a work of improvement with the county recorder and
27the recording in the office of a contractor’s payment bond for
28private work.

29(5) A description of what constitutes substantial commencement
30of work pursuant to the contract.

31(6) A disclosure that failure by the licensee, without legal
32excuse, to substantially commence work within 20 days from the
33approximate date specified in the agreement when the work will
34begin is a violation of the Alarm Company Act.

35(7) A disclosure informing the buyer of any potential permit
36fees which may be required by local jurisdictions concerning the
37monitoring of an existing alarm system.

38(8) This section shall not be construed to prohibit the parties to
39a residential alarm system sale contract from agreeing to a contract
P5    1or account subject to Chapter 1 (commencing with Section 1801)
2of Title 2 of Part 4 of Division 3 of the Civil Code.

3A violation of this section or failure to commence work pursuant
4to paragraph (6) of subdivision (h) may result in a fine of one
5 hundred dollars ($100) for the first violation and a five hundred
6dollar ($500) fine for each subsequent violation.

7

begin deleteSECTION 1.end delete
8begin insertSEC. 2.end insert  

Section 7599.56 is added to the Business and
9Professions Code
, to read:

10

7599.56.  

(a) begin deleteNotwithstanding Section 7599.54, contracts end delete
11begin insertContracts end insertfor services or other activities authorized bybegin delete this chapterend delete
12begin insert Section 7599.54end insert may be conducted by electronic means.
13Notwithstanding subdivisions (b) and (c) of Section 1633.3 of the
14Civil Code, the Uniform Electronic Transactions Act (Title 2.5
15(commencing with Section 1633.1) of Part 2 of Division 3 of the
16Civil Code)begin delete appliesend deletebegin insert shall applyend insert to electronic records and electronic
17signatures relating to transactions conducted by a person licensed,
18certified, or registered pursuant to this chapter, for purposes of
19activities authorized bybegin delete this chapter.end deletebegin insert Section 7599.54.end insert An electronic
20contract for services or other activities authorized bybegin delete this chapterend delete
21begin insert Section 7599.54end insert shall not bebegin delete used without the consent of the
22contracting consumer.end delete
begin insert valid unless the consumer specified in the
23contract has consented to use of electronic records for the
24transaction with an electronic signature and has not withdrawn
25that consent. The licensee shall provide an identical paper copy
26of the signed electronic contract for services upon request of the
27contracting consumer.end insert

28(b) Notwithstanding Section 1689.6 of the Civil Code, for
29contracts for services or other activities authorized bybegin delete this chapter,end delete
30begin insert Section 7599.54,end insert a notice of cancellation and copies of the contract
31or offer described in those provisions may be provided and
32transmitted electronically.

33(c) Notwithstanding Section 1689.7 of the Civil Code, for
34contracts for services or other activities authorized bybegin delete thischapter,end delete
35begin insert Section 7599.54,end insert the signatures, disclosures, and documents
36described in those provisions may be provided and transmitted
37electronically.

P6    1

begin deleteSEC. 2.end delete
2begin insertSEC. 3.end insert  

Section 1633.3 of the Civil Code, as amended by
3Section 3 of Chapter 913 of the Statutes of 2014, is amended to
4read:

5

1633.3.  

(a) Except as otherwise provided in subdivisions (b)
6and (c), this title applies to electronic records and electronic
7signatures relating to a transaction.

8(b) This title does not apply to transactions subject to the
9following laws:

10(1) A law governing the creation and execution of wills, codicils,
11or testamentary trusts.

12(2) Division 1 (commencing with Section 1101) of the Uniform
13Commercial Code, except Sections 1206 and 1306.

14(3) Divisions 3 (commencing with Section 3101), 4
15(commencing with Section 4101), 5 (commencing with Section
165101), 8 (commencing with Section 8101), 9 (commencing with
17Section 9101), and 11 (commencing with Section 11101) of the
18Uniform Commercial Code.

19(4) A law that requires that specifically identifiable text or
20disclosures in a record or a portion of a record be separately signed,
21including initialed, from the record. However, this paragraph does
22not apply to Section 1677 or 1678 of this code or Section 1298 of
23the Code of Civil Procedure.

24(c) This title does not apply to any specific transaction described
25in Section 17511.5 of the Business and Professions Code, Section
2656.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
27or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
28Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
291789.16, or 1793.23 of, Chapter 1 (commencing with Section
301801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
311917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
322924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
332945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
342954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
35or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
36Division 3 of, Section 3071.5 of, Part 5 (commencing with Section
374000) of Division 4 of, or Part 5.3 (commencing with Section
386500) of Division 4 of this code, subdivision (b) of Section 18608
39or Section 22328 of the Financial Code, Section 1358.15, 1365,
401368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
P7    1Section 662, paragraph (2) of subdivision (a) of Section 663, 664,
2667.5, 673, 677, paragraph (2) of subdivision (a) of Section 678,
3subdivisions (a) and (b) of Section 678.1, Section 786, 10113.7,
410127.7, 10127.9, 10127.10, 10192.18, 10199.44, 10199.46,
510235.16, 10235.40, 10509.4, 10509.7, 11624.09, or 11624.1 of
6the Insurance Code, Section 779.1, 10010.1, or 16482 of the Public
7Utilities Code, or Section 9975 or 11738 of the Vehicle Code. An
8electronic record may not be substituted for any notice that is
9required to be sent pursuant to Section 1162 of the Code of Civil
10Procedure. Nothing in this subdivision shall be construed to
11prohibit the recordation of any document with a county recorder
12by electronic means.

13(d) This title applies to an electronic record or electronic
14signature otherwise excluded from the application of this title under
15subdivision (b) when used for a transaction subject to a law other
16than those specified in subdivision (b).

17(e) A transaction subject to this title is also subject to other
18applicable substantive law.

19(f) The exclusion of a transaction from the application of this
20title under subdivision (b) or (c) shall be construed only to exclude
21the transaction from the application of this title, but shall not be
22construed to prohibit the transaction from being conducted by
23electronic means if the transaction may be conducted by electronic
24means under any other applicable law.

25(g) Notwithstanding subdivisions (b) and (c), this title shall
26apply to electronic records and electronic signatures relating to
27transactions conducted by a person licensed, certified, or registered
28pursuant to the Alarm Company Act (Chapter 11.6 (commencing
29with Section 7590) of Division 3 of the Business and Professions
30Code) for purposes of activities authorized bybegin delete that act.end deletebegin insert Section
317599.54 of the Business and Professions Code.end insert

32(h) This section shall remain in effect only until January 1, 2019,
33and as of that date is repealed, unless a later enacted statute, that
34is enacted before January 1, 2019, deletes or extends that date.

35begin insert

begin insertSEC. 3.1.end insert  

end insert

begin insertSection 1633.3 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
36Section 3 of Chapter 913 of the Statutes of 2014, is amended to
37read:end insert

38

1633.3.  

(a) Except as otherwise provided in subdivisions (b)
39and (c), this title applies to electronic records and electronic
40signatures relating to a transaction.

P8    1(b) This title does not apply to transactions subject to the
2following laws:

3(1) A law governing the creation and execution of wills, codicils,
4or testamentary trusts.

5(2) Division 1 (commencing with Section 1101) of the Uniform
6Commercial Code, except Sections 1206 and 1306.

7(3) Divisions 3 (commencing with Section 3101), 4
8(commencing with Section 4101), 5 (commencing with Section
95101), 8 (commencing with Section 8101), 9 (commencing with
10Section 9101), and 11 (commencing with Section 11101) of the
11Uniform Commercial Code.

12(4) A law that requires that specifically identifiable text or
13disclosures in a record or a portion of a record be separately signed,
14including initialed, from the record. However, this paragraph does
15not apply to Section 1677 or 1678 of this code or Section 1298 of
16the Code of Civil Procedure.

17(c) This title does not apply to any specific transaction described
18in Section 17511.5 of the Business and Professions Code, Section
1956.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
20or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
21Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
221789.16, or 1793.23 of, Chapter 1 (commencing with Section
231801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
241917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
252924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
262945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
272954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
28or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
29Division 3 of, Section 3071.5 of, Part 5 (commencing with Section
304000) of Division 4 of, or Part 5.3 (commencing with Section
316500) of Division 4 of this code, subdivision (b) of Section 18608
32or Section 22328 of the Financial Code, Section 1358.15, 1365,
331368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
34Section 662, paragraph (2) of subdivision (a) of Section 663, 664,
35667.5, 673, 677, paragraph (2) of subdivision (a) of Section 678,
36subdivisions (a) and (b) of Section 678.1, Sectionbegin delete 786, 10113.7,
3710127.7, 10127.9, 10127.10,end delete
begin insert 786 as it applies to individual and
38group disability policies, Sectionend insert
10192.18, 10199.44, 10199.46,
3910235.16, 10235.40,begin delete 10509.4, 10509.7,end delete 11624.09, or 11624.1 of
40the Insurance Code, Section 779.1, 10010.1, or 16482 of the Public
P9    1Utilities Code, or Section 9975 or 11738 of the Vehicle Code. An
2electronic record may not be substituted for any notice that is
3required to be sent pursuant to Section 1162 of the Code of Civil
4Procedure. Nothing in this subdivision shall be construed to
5prohibit the recordation of any document with a county recorder
6by electronic means.

7(d) This title applies to an electronic record or electronic
8signature otherwise excluded from the application of this title under
9subdivision (b) when used for a transaction subject to a law other
10than those specified in subdivision (b).

11(e) A transaction subject to this title is also subject to other
12applicable substantive law.

13(f) The exclusion of a transaction from the application of this
14title under subdivision (b) or (c) shall be construed only to exclude
15the transaction from the application of this title, but shall not be
16construed to prohibit the transaction from being conducted by
17electronic means if the transaction may be conducted by electronic
18means under any other applicable law.

begin insert

19(g) Notwithstanding subdivisions (b) and (c), this title shall
20apply to electronic records and electronic signatures relating to
21transactions conducted by a person licensed, certified, or registered
22pursuant to the Alarm Company Act (Chapter 11.6 (commencing
23with Section 7590) of Division 3 of the Business and Professions
24Code) for purposes of activities authorized by Section 7599.54 of
25the Business and Professions Code.

end insert
begin delete

26(g)

end delete

27begin insert(h)end insert This section shall remain in effect only until January 1, 2019,
28and as of that date is repealed, unless a later enacted statute, that
29is enacted before January 1, 2019, deletes or extends that date.

30

begin deleteSEC. 3.end delete
31begin insertSEC. 4.end insert  

Section 1633.3 of the Civil Code, as amended by
32Section 4 of Chapter 913 of the Statutes of 2014, is amended to
33 read:

34

1633.3.  

(a) Except as otherwise provided in subdivisions (b)
35and (c), this title applies to electronic records and electronic
36signatures relating to a transaction.

37(b) This title does not apply to transactions subject to the
38following laws:

39(1) A law governing the creation and execution of wills, codicils,
40or testamentary trusts.

P10   1(2) Division 1 (commencing with Section 1101) of the Uniform
2Commercial Code, except Sections 1206 and 1306.

3(3) Divisions 3 (commencing with Section 3101), 4
4(commencing with Section 4101), 5 (commencing with Section
55101), 8 (commencing with Section 8101), 9 (commencing with
6Section 9101), and 11 (commencing with Section 11101) of the
7Uniform Commercial Code.

8(4) A law that requires that specifically identifiable text or
9disclosures in a record or a portion of a record be separately signed,
10including initialed, from the record. However, this paragraph does
11not apply to Section 1677 or 1678 of this code or Section 1298 of
12the Code of Civil Procedure.

13(c) This title does not apply to any specific transaction described
14in Section 17511.5 of the Business and Professions Code, Section
1556.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
16or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
17Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
181789.16, or 1793.23 of, Chapter 1 (commencing with Section
191801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
201917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
212924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
222945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
232954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
24or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
25Division 3 of, Section 3071.5 of Part 5 (commencing with Section
264000) of Division 4 of, or Part 5.3 (commencing with Section
276500) of Division 4 of this code, subdivision (b) of Section 18608
28or Section 22328 of the Financial Code, Section 1358.15, 1365,
291368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
30Section 662, 663, 664, 667.5, 673, 677, 678, 678.1, 786, 10086,
3110113.7, 10127.7, 10127.9, 10127.10, 10192.18, 10199.44,
3210199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09, or
3311624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482
34of the Public Utilities Code, or Section 9975 or 11738 of the
35Vehicle Code. An electronic record may not be substituted for any
36notice that is required to be sent pursuant to Section 1162 of the
37Code of Civil Procedure. Nothing in this subdivision shall be
38construed to prohibit the recordation of any document with a county
39recorder by electronic means.

P11   1(d) This title applies to an electronic record or electronic
2signature otherwise excluded from the application of this title under
3subdivision (b) when used for a transaction subject to a law other
4than those specified in subdivision (b).

5(e) A transaction subject to this title is also subject to other
6applicable substantive law.

7(f) The exclusion of a transaction from the application of this
8title under subdivision (b) or (c) shall be construed only to exclude
9the transaction from the application of this title, but shall not be
10construed to prohibit the transaction from being conducted by
11electronic means if the transaction may be conducted by electronic
12means under any other applicable law.

13(g) Notwithstanding subdivisions (b) and (c), this title shall
14apply to electronic records and electronic signatures relating to
15transactions conducted by a person licensed, certified, or registered
16pursuant to the Alarm Company Act (Chapter 11.6 (commencing
17with Section 7590) of Division 3 of the Business and Professions
18Code) for purposes of activities authorized bybegin delete that act.end deletebegin insert Section
197599.54 of the Business and Professions Code.end insert

20(h) This section shall become operative on January 1, 2019.

21begin insert

begin insertSEC. 4.1.end insert  

end insert

begin insertSection 1633.3 of the end insertbegin insertCivil Codeend insertbegin insert, as amended by
22Section 4 of Chapter 913 of the Statutes of 2014, is amended to
23read:end insert

24

1633.3.  

(a) Except as otherwise provided in subdivisions (b)
25and (c), this title applies to electronic records and electronic
26signatures relating to a transaction.

27(b) This title does not apply to transactions subject to the
28following laws:

29(1) A law governing the creation and execution of wills, codicils,
30or testamentary trusts.

31(2) Division 1 (commencing with Section 1101) of the Uniform
32Commercial Code, except Sections 1206 and 1306.

33(3) Divisions 3 (commencing with Section 3101), 4
34(commencing with Section 4101), 5 (commencing with Section
355101), 8 (commencing with Section 8101), 9 (commencing with
36Section 9101), and 11 (commencing with Section 11101) of the
37Uniform Commercial Code.

38(4) A law that requires that specifically identifiable text or
39disclosures in a record or a portion of a record be separately signed,
40including initialed, from the record. However, this paragraph does
P12   1not apply to Section 1677 or 1678 of this code or Section 1298 of
2the Code of Civil Procedure.

3(c) This title does not apply to any specific transaction described
4in Section 17511.5 of the Business and Professions Code, Section
556.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
6or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
7Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
81789.16, or 1793.23 of, Chapter 1 (commencing with Section
91801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
101917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
112924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
122945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
132954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
14or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
15Division 3 of, Section 3071.5 of Part 5 (commencing with Section
164000) of Division 4 of, or Part 5.3 (commencing with Section
176500) of Division 4 of this code, subdivision (b) of Section 18608
18or Section 22328 of the Financial Code, Section 1358.15, 1365,
191368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
20Section 662, 663, 664, 667.5, 673, 677, 678, 678.1,begin delete 786, 10086,
2110113.7, 10127.7, 10127.9, 10127.10,end delete
begin insert 786 as it applies to
22individual and group disability policies,end insert
10192.18, 10199.44,
2310199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09, or
2411624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482
25of the Public Utilities Code, or Section 9975 or 11738 of the
26Vehicle Code. An electronic record may not be substituted for any
27notice that is required to be sent pursuant to Section 1162 of the
28Code of Civil Procedure. Nothing in this subdivision shall be
29construed to prohibit the recordation of any document with a county
30recorder by electronic means.

31(d) This title applies to an electronic record or electronic
32signature otherwise excluded from the application of this title under
33subdivision (b) when used for a transaction subject to a law other
34than those specified in subdivision (b).

35(e) A transaction subject to this title is also subject to other
36applicable substantive law.

37(f) The exclusion of a transaction from the application of this
38title under subdivision (b) or (c) shall be construed only to exclude
39the transaction from the application of this title, but shall not be
40construed to prohibit the transaction from being conducted by
P13   1electronic means if the transaction may be conducted by electronic
2means under any other applicable law.

begin insert

3(g) Notwithstanding subdivisions (b) and (c), this title shall
4apply to electronic records and electronic signatures relating to
5transactions conducted by a person licensed, certified, or registered
6pursuant to the Alarm Company Act (Chapter 11.6 (commencing
7with Section 7590) of Division 3 of the Business and Professions
8Code) for purposes of activities authorized by Section 7599.54 of
9the Business and Professions Code.

end insert
begin delete

10(g)

end delete

11begin insert(h)end insert This section shall become operative on January 1, 2019.

begin insert

12(i) This section shall remain in effect only until January 1, 2021,
13and as of that date is repealed, unless a later enacted statute, that
14is enacted before January 1, 2021, deletes or extends that date.

end insert
15begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 1633.3 is added to the end insertbegin insertCivil Codeend insertbegin insert, to read:end insert

begin insert
16

begin insert1633.3.end insert  

(a) Except as otherwise provided in subdivisions (b)
17and (c), this title applies to electronic records and electronic
18signatures relating to a transaction.

19(b) This title does not apply to transactions subject to the
20following laws:

21(1) A law governing the creation and execution of wills, codicils,
22or testamentary trusts.

23(2) Division 1 (commencing with Section 1101) of the Uniform
24Commercial Code, except Sections 1206 and 1306.

25(3) Divisions 3 (commencing with Section 3101), 4 (commencing
26with Section 4101), 5 (commencing with Section 5101), 8
27(commencing with Section 8101), 9 (commencing with Section
289101), and 11 (commencing with Section 11101) of the Uniform
29Commercial Code.

30(4) A law that requires that specifically identifiable text or
31disclosures in a record or a portion of a record be separately
32signed, including initialed, from the record. However, this
33paragraph does not apply to Section 1677 or 1678 of this code or
34Section 1298 of the Code of Civil Procedure.

35(c) This title does not apply to any specific transaction described
36in Section 17511.5 of the Business and Professions Code, Section
3756.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
38or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
39Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
401789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801)
P14   1of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
21917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
32924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
42945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
52954.5 or 2963 of, Chapter 2b (commencing with Section 2981)
6or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of
7Division 3 of, Section 3071.5 of Part 5 (commencing with Section
84000) of Division 4 of, or Part 5.3 (commencing with Section 6500)
9of Division 4 of this code, subdivision (b) of Section 18608 or
10Section 22328 of the Financial Code, Section 1358.15, 1365,
111368.01, 1368.1, 1371, or 18035.5 of the Health and Safety Code,
12Section 662, 663, 664, 667.5, 673, 677, 678, 678.1, 786, 10086,
1310113.7, 10127.7, 10127.9, 10127.10, 10192.18, 10199.44,
1410199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09, or
1511624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482
16of the Public Utilities Code, or Section 9975 or 11738 of the
17Vehicle Code. An electronic record may not be substituted for any
18notice that is required to be sent pursuant to Section 1162 of the
19Code of Civil Procedure. Nothing in this subdivision shall be
20construed to prohibit the recordation of any document with a
21county recorder by electronic means.

22(d) This title applies to an electronic record or electronic
23signature otherwise excluded from the application of this title
24under subdivision (b) when used for a transaction subject to a law
25other than those specified in subdivision (b).

26(e) A transaction subject to this title is also subject to other
27applicable substantive law.

28(f) The exclusion of a transaction from the application of this
29title under subdivision (b) or (c) shall be construed only to exclude
30the transaction from the application of this title, but shall not be
31construed to prohibit the transaction from being conducted by
32electronic means if the transaction may be conducted by electronic
33means under any other applicable law.

34(g) Notwithstanding subdivisions (b) and (c), this title shall
35apply to electronic records and electronic signatures relating to
36transactions conducted by a person licensed, certified, or registered
37pursuant to the Alarm Company Act (Chapter 11.6 (commencing
38with Section 7590) of Division 3 of the Business and Professions
39Code) for purposes of activities authorized by Section 7599.54 of
40the Business and Professions Code.

P15   1(h) This section shall become operative on January 1, 2021.

end insert
2begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSections 3.1 and 4.1 of this bill incorporate changes
3in Section 1633.3 of the Civil Code proposed by this bill and
4Assembly Bill 1131. Those sections shall only become operative
5if (1) both bills are enacted and become effective on or before
6January 1, 2016, (2) each bill amends Section 1633.3 of the Civil
7Code, and (3) this bill is enacted after Assembly Bill 1131, in which
8case Sections 3 and 4 of this bill shall not become operative. end insert

9begin insert

begin insertSEC. 7.end insert  

end insert
begin insert

Section 5 of this bill, which adds Section 1633.3 to the
10Civil Code, incorporates provisions in that section proposed by
11both this bill and Assembly Bill 1131. It shall only become
12operative if (1) both bills are enacted and become effective on or
13before January 1, 2016, (2) each bill adds Section 1633.3 to the
14Civil Code, and (3) this bill is enacted after Assembly Bill 1131.

end insert


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