Amended in Senate April 22, 2015

Senate Bill No. 468

Introduced by Senator Hill

February 25, 2015

begin delete An act to amend Section 7590.1 of the Business and Professions Code, relating to professions and vocations. end delete begin insert An act to amend Sections 7542, 7583.4, 7583.6, 7583.12, 7583.22, 7583.23, 7583.33, and 7599.54 of, to add Section 7585.4.1 to, to add Article 10 (commencing with Section 6981) to Chapter 8.5 of, to add Article 12 (commencing with Section 7511.5) to Chapter 11 of, to add Article 8 (commencing with Section 7573.5) to Chapter 11.3 of, to add Article 16 (commencing with Section 7576) to Chapter 11.4 of, to add Article 9 (commencing with Section 7588.8) to Chapter 11.5 of, and to add Article 15 (commencing with Section 7599.80) to Chapter 11.6 of, Division 3 of, the Business and Professions Code, relating to professions and vocations. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 468, as amended, Hill. begin delete Alarm Companies: limited liability companies. end delete begin insert Bureau of Security and Investigative Services: licensees. end insert

begin insert

(1) Existing law provides for the regulation, by the Bureau of Security and Investigative Services, of locksmiths and the employers of locksmiths, repossessors, private investigators, private patrol operators, armored contract carriers, firearms and baton training facilities, and employees of those licensees, alarm company operators and alarm agents, and proprietary security services.

end insert begin insert

This bill would subject the bureau to review by the appropriate policy committees of the Legislature.

end insert begin insert

(2) Existing law prohibits a licensed private investigator and qualified manager who, in the course of his or her employment or business, carries a deadly weapon to carry or use a firearm unless he or she has in his or her possession a valid firearms qualification card and requires the licensed private investigator and qualified manager to comply with, and be subject to, specified provisions. Under existing law, a firearms qualification card does not authorize the holder of the card to carry a firearm capable of being concealed upon the person in a concealed manner, as specified.

end insert begin insert

This bill would authorize those licensed private investigators and qualified managers who possess a valid firearms qualification card to also carry a concealed firearm if they satisfy specified conditions.

end insert begin insert

(3) The Alarm Company 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 and to include specified items.

end insert begin insert

This bill would additionally require all initial residential sales and lease agreements that contain an automatic renewal provision to disclose that the agreement contains an automatic renewal provision, as provided.

end insert begin insert

(4) The Private Security Services Act provides, among other matters, for the licensure and regulation of private patrol operators by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of its provisions a crime. Under existing law, a person required to be registered as a security guard must report to his or her employer, within 24 hours of the incident, the circumstances surrounding the discharge of any firearm in which he or she is involved while acting within the course and scope of his or her employment. Existing law also requires a person registered as a security or patrolperson to deliver to the Director of Consumer Affairs and to local law enforcement a written report describing the circumstances surrounding the discharge of a firearm in which he or she was involved while acting within the course of his or her employment, within 7 days of the incident.

end insert begin insert

This bill would additionally impose the reporting duties upon the employer of the security guard or patrol person.

end insert begin insert

(5) Existing law requires security guards, security patrolpersons, persons employed by private patrol operators and armored contract carriers, and registered uniform security guards to complete specified courses, acquire specified licenses, and be subject to specified provisions relating to their duties and relating to the carrying and use of a firearm or baton, as provided.

end insert begin insert

This bill would exempt from those provisions a federal law enforcement officer.

end insert begin insert

(6) Existing law provides that any institution, firm, or individual wishing the approval of the Bureau of Security and Investigative Services to offer the firearms course must complete an application for certification as a firearms training facility, as specified.

end insert begin insert

This bill would require the bureau, within 90 days after issuance of a “Firearms Training Facility Certificate,” to inspect the facility for compliance with the specified requirements. The bill would authorize the bureau to inspect the facility prior to the issuance of a certificate. The bill would also require the bureau to maintain a program of random and targeted inspections of facilities to ensure compliance with applicable laws relating to the conduct and operation of facilities, and to inform facilities when the bureau determines that the facility is not in compliance with the above-mentioned laws.

end insert begin insert

(7) Existing law requires the Bureau of Security and Investigative Services to issue a firearms permit to a private patrol operator when specified conditions are satisfied, including that the bureau has determined, after investigation, that the carrying and use of a firearm by the applicant, in the course of his or her duties, presents no apparent threat to the public safety.

end insert begin insert

This bill would require an applicant to undergo a psychological evaluation, reviewed by a licensed psychologist shall be of the applicant’s choice, in order to certify the applicant’s psychological capability to exercise appropriate judgment, restraint, and self-control, as provided.

end insert begin delete

Existing law, California Revised Uniform Limited Liability Company Act, authorizes a limited liability company to have any lawful purpose, except as specified, and authorizes a domestic or foreign limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the provisions of that code authorize a limited liability company or foreign limited liability company to hold that license, certificate, or registration.

end delete begin delete

Existing law, the Alarm Company Act, provides for the licensure and regulation of alarm company operators by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of the act a crime. Existing law, until January 1, 2016, authorizes an alarm company operator to conduct a business as a limited liability company if the alarm company operator holds a valid license issued to that exact same limited liability company. For purposes of the act, existing law, until January 1, 2016, defines a “licensee” to include a limited liability company.

end delete begin delete

This bill would extend the operation of that definition provision to January 1, 2020. Because a violation of the act by a limited liability company would be a crime, the bill would impose a state-mandated local program.

end delete begin delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Article 10 (commencing with Section 6981) is
added to Chapter 8.5 of Division 3 of the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 10. end insert   Review

 

begin insert 6981. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Article 12 (commencing with Section 7511.5) is added
to Chapter 11 of Division 3 of the end insert begin insert Business and Professions Code end insert begin insert ,
to read: end insert

begin insert

 

Article begin insert 12. end insert   Review

 

begin insert 7511.5. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 7542 of the end insert begin insert Business and Professions Code end insert begin insert is
amended to read: end insert

7542.  

Every licensee and qualified manager who in the course
of his or her employment or business carries a deadly weapon shall
complete a course of training in the exercise of the powers to arrest
as specified in Section 7583.7 and a course of training in the
carrying and use of firearms as specified in Article 4 (commencing
with Section 7583) of Chapter 11.5. No licensee or qualified
manager shall carry or use a firearm unless he or she has met the
requirements of Sections 7583.23, 7583.28, and 7583.29 and has
in his or her possession a valid firearms qualification card as
provided in Section 7583.30. A licensee or qualified manager who
possesses a valid firearms qualification card shall comply with
and be subject to the provisions of Sections 7583.31, 7583.32, and
7583.37. begin insert A licensee or qualified manager who posses a valid
firearms qualification card may carry a firearm capable of being
concealed upon the person in a concealed manner if he or she
complies with applicable provisions set forth in Chapter 4
(commencing with Section 26150) of Division 5 of Title 4 of Part
6 of the Penal Code. end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Article 8 (commencing with Section 7573.5) is added
to Chapter 11.3 of Division 3 of the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 8. end insert   Review

 

begin insert 7573.5. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Article 16 (commencing with Section 7576) is added
to Chapter 11.4 of Division 3 of the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 16. end insert   Review

 

begin insert 7576. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 7583.4 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.4.  

Any person registered as a security guard or
begin delete patrolperson end delete begin insert patrolperson, and the employer of the security guard
or patrolperson, end insert shall deliver to the director a written report
describing fully the circumstances surrounding any incident
involving the discharge of any firearm in which he or she was
involved while acting within the course and scope of his or her
employment, within seven days after the incident. The report shall
be made on a form prescribed by the director which shall include,
but not be limited to, the following:

(a) The name, address, and date of birth of the guard or
patrolperson.

(b) The registration number of the guard or patrolperson.

(c) The firearm permit number and baton permit number of the
guard or patrolperson, if applicable.

(d) The name of the employer of the person.

(e) The description of any injuries and damages that occurred.

(f) The identity of all participants in the incident.

(g) Whether a police investigation was conducted relating to
the incident.

(h) The date and location of the incident. Any report may be
investigated by the director to determine if any disciplinary action
is necessary.

A copy of the report delivered to the director pursuant to this
section shall also be delivered within seven days of the incident
to the local police or sheriff’s department which has jurisdiction
over the geographic area where the incident occurred.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 7583.6 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.6.  

(a) A person entering the employ of a licensee to
perform the functions of a security guard or a security patrolperson
shall complete a course in the exercise of the power to arrest prior
to being assigned to a duty location.

(b) Except for a registrant who has completed the course of
training required by Section 7583.45, a person registered pursuant
to this chapter shall complete not less than 32 hours of training in
security officer skills within six months from the date the
registration card is issued. Sixteen of the 32 hours shall be
completed within 30 days from the date the registration card is
issued.

(c) A course provider shall issue a certificate to a security guard
upon satisfactory completion of a required course, conducted in
accordance with the department’s requirements. A private patrol
operator may provide training programs and courses in addition
to the training required in this section. A registrant who is unable
to provide his or her employing licensee the certificate of
satisfactory completion required by this subdivision shall complete
16 hours of the training required by subdivision (b) within 30 days
of the date of his employment and shall complete the 16 remaining
hours within six months of his or her employment date.

(d) The department shall develop and approve by regulation a
standard course and curriculum for the skills training required by
subdivision (b) to promote and protect the safety of persons and
the security of property. For this purpose, the department shall
consult with consumers, labor organizations representing private
security officers, private patrol operators, educators, and subject
matter experts.

(e) The course of training required by subdivision (b) may be
administered, tested, and certified by any licensee, or by any
organization or school approved by the department. The department
may approve any person or school to teach the course.

(f) (1) On and after January 1, 2005, a licensee shall annually
provide each employee registered pursuant to this chapter with
eight hours of specifically dedicated review or practice of security
officer skills prescribed in either course required in Section 7583.6
or 7583.7.

(2) A licensee shall maintain at the principal place of business
or branch office a record verifying completion of the review or
practice training for a period of not less than two years. The records
shall be available for inspection by the bureau upon request.

(g) This section does not apply to a peace officer as defined in
Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
of the Penal Code who has successfully completed a course of
study in the exercise of the power to arrest approved by the
Commission on Peace Officer Standards and Training. This section
does not apply to armored vehicle begin delete guards. end delete begin insert guards and federal law
enforcement officers. end insert

begin delete end delete begin delete

(h) This section shall become operative on July 1, 2004.

end delete begin delete end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 7583.12 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.12.  

(a) No employee of a licensee shall carry or use a
firearm unless the employee has in his or her possession both of
the following:

(1) A valid guard registration card issued pursuant to this
chapter.

(2) A valid firearm qualification card issued pursuant to this
chapter.

(b) An employee of a licensee may carry or use a firearm while
working as a security guard or security patrolperson pending receipt
of a firearm qualification card if he or she has been approved by
the bureau and carries on his or her person a hardcopy printout of
the bureau’s approval from the bureau’s Internet Web site and a
valid picture identification.

(c) In the event of the loss or destruction of the firearm
qualification card, the cardholder may apply to the bureau for a
certified replacement of the card, stating the circumstances
surrounding the loss, and pay a ten-dollar ($10) certification fee,
whereupon the bureau shall issue a certified replacement of the
card.

(d) Paragraph (2) of subdivision (a) and subdivision (b) shall
not apply to a duly appointed peace officer, as defined in Chapter
4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal
Code, who meets all of the following:

(1) He or she has successfully completed a course of study in
the use of firearms.

(2) He or she is authorized to carry a concealed firearm in the
course and scope of his or her employment pursuant to Article 2
(commencing with Section 25450) of Chapter 2 of Division 5 of
Title 4 of Part 6 of the Penal Code.

(3) He or she has proof that he or she has applied to the bureau
for a firearm qualification card.

(e) (1) This section shall not apply to a duly appointed peace
officer, as defined in Chapter 4.5 (commencing with Section 830)
of Title 3 of Part 2 of the Penal Code, who has written approval
from his or her primary employer, as defined in paragraph (2) of
subdivision (i) of Section 7583.9, to carry a firearm while working
as a security guard or security begin insert officer or to a federal law
enforcement end insert officer.

(2) A peace officer exempt under this subdivision shall carry
on his or her person a letter of approval from his or her primary
employer authorizing him or her to carry a firearm while working
as a security guard or security officer.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 7583.22 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.22.  

(a) A licensee, qualified manager of a licensee, or
security guard who, in the course of his or her employment, may
be required to carry a firearm shall, prior to carrying a firearm, do
both of the following:

(1) Complete a course of training in the carrying and use of
firearms.

(2) Receive a firearms qualification card or be otherwise
qualified to carry a firearm as provided in Section 7583.12.

(b) A licensee shall not permit an employee to carry or use a
loaded or unloaded firearm, whether or not it is serviceable or
operative, unless the employee possesses a valid and current
firearms qualification card issued by the bureau or is so otherwise
qualified to carry a firearm as provided in Section 7583.12.

(c) A pocket card issued by the bureau pursuant to Section
7582.13 may also serve as a firearms qualification card if so
indicated on the face of the card.

(d) Paragraph (1) of subdivision (a) shall not apply to a peace
officer as defined in Chapter 4.5 (commencing with Section 830)
of Title 3 of Part 2 of the Penal Code, who has successfully
completed a course of study in the use of begin delete firearms. end delete begin insert firearms or to
a federal law enforcement officer. end insert

begin delete end delete begin delete

(e) This section shall become operative on January 1, 1998.

end delete begin delete end delete

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 7583.23 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.23.  

The bureau shall issue a firearms permit when all of
the following conditions are satisfied:

(a) The applicant is a licensee, a qualified manager of a licensee,
or a registered uniformed security guard.

(b) A certified firearms training instructor has certified that the
applicant has successfully completed a written examination
prepared by the bureau and training course in the carrying and use
of firearms approved by the bureau.

(c) The applicant has filed with the bureau a classifiable
fingerprint card, a completed application for a firearms permit on
a form prescribed by the director, dated and signed by the applicant,
certifying under penalty of perjury that the information in the
application is true and correct.

(d) The bureau has determined, after investigation, that the
carrying and use of a firearm by the applicant, in the course of his
or her duties, presents no apparent threat to the public safety, or
that the carrying and use of a firearm by the applicant is not in
violation of the Penal Code.

begin insert

(e) (1) Each applicant for a firearms permit shall be
administered any current standard form of the Minnesota
Multiphasic Personality Inventory (MMPI), or other psychological
evaluation instrument approved by the bureau, which shall be
administered by certified firearms training facility during the
firearms training course. The certified firearms training facility
shall forward the response data to a psychologist licensed by the
California Board of Psychology for evaluation. The licensed
psychologist shall be of the applicant’s choice. It shall be the
responsibility of the applicant to bear the costs of the psychological
evaluation.

end insert begin insert

(2) If the licensed psychologist is unable to certify the
applicant’s psychological capability to exercise appropriate
judgment, restraint, and self-control, after evaluating the data,
the psychologist shall employ whatever other psychological
measuring instruments or techniques deemed necessary to form a
professional opinion. The use of any psychological measuring
instruments or techniques shall require a full and complete written
explanation to the bureau.

end insert begin insert

(3) The psychologist shall forward a written psychological
evaluation, on a form prescribed by the bureau, to the bureau
within 15 days of the evaluation, even if the applicant is found to
be psychologically at risk. The bureau may utilize the results of
the psychological evaluation for up to six months from the date of
the evaluation after which the applicant shall be reexamined. No
person who has been found psychologically at risk in the exercise
of appropriate judgment, restraint, or self-control shall reapply
for permit until one year from the date of being found
psychologically at risk.

end insert begin insert

(4) The subdivision does not apply to a peace officer as defined
in Chapter 4.5 (commencing with Section 830) of Title 3 of Part
2 of the Penal Code or to a federal law enforcement officer

end insert begin delete

(e)

end delete

begin insert (f) end insert  The applicant has produced evidence to the firearm training
facility that he or she is a citizen of the United States or has
permanent legal alien status in the United States. Evidence of
citizenship or permanent legal alien status shall be that deemed
sufficient by the bureau to ensure compliance with federal laws
prohibiting possession of firearms by persons unlawfully in the
United States and may include, but not be limited to, Department
of Justice, Immigration and Naturalization Service Form I-151 or
I-551, Alien Registration Receipt Card, naturalization documents,
or birth certificates evidencing lawful residence or status in the
United States.

begin delete

(f)

end delete

begin insert (g) end insert  The application is accompanied by the application fees
prescribed in this chapter.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 7583.33 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7583.33.  

(a) Any licensee, qualified manager, or a registered
uniformed security guard who wishes to carry a baton in the
performance of his or her duties, shall qualify to carry the weapon
pursuant to Article 5 (commencing with Section 7585).

(b) Subdivision (a) does not apply to a peace officer as defined
in Chapter 4.5 (commencing with Section 830) of Title 3 of Part
2 of the Penal Code who has successfully completed a course of
study in the use of begin delete batons. end delete begin insert batons or to a federal law enforcement
officer. end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 7585.4.1 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 7585.4.1. end insert   

(a) (1)  Within 90 days after issuance of a “Firearms
Training Facility Certificate,” the bureau or its agents or assistants
shall inspect the facility for compliance with the applicable
requirements of this article and the applicable rules and
regulations of the bureau adopted pursuant to this article.

(2) The bureau may inspect the establishment for which a
certificate application has been made prior to the issuance of the
certificate.

(b) The bureau shall maintain a program of random and
targeted inspections of facilities to ensure compliance with
applicable laws relating to the conduct and operation of facilities.

(c) If the bureau determines that any facility is not complying
with applicable laws relating to the conducting and operation of
facilities, notice thereof shall immediately be given to the facility.

end insert

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Article 9 (commencing with Section 7588.8) is added
to Chapter 11.5 of Division 3 of the end insert begin insert Business and Professions
Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 9. end insert   Review

 

begin insert 7588.8. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 7599.54 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

7599.54.  

Every agreement, including, but not limited to, lease
agreements, monitoring agreements, and service agreements,
including all labor, services, and materials to be provided for the
installation of an alarm system, shall be in writing. All amendments
subject to the provisions of this section to an initial agreement
shall be in writing. Each initial agreement shall contain, but not
be limited to, the following:

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

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

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

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

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

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

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

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

begin insert

(i) For agreements entered into on or after January 1, 2016, if
the agreement contains an automatic renewal provision, the
agreement shall include a separate and clear disclosure advising
the consumer that the agreement he or she is entering into contains
an automatic renewal provision. The disclosure shall specify that
if the consumer fails to provide notification of nonrenewal, as
required in the agreement, it will result in the automatic renewal
of the agreement and shall include the period of time of the renewal
term.

end insert begin delete

(i)

end delete

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Article 15 (commencing with Section 7599.80) is
added to Chapter 11.6 of Division 3 of the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 15. end insert   Review

 

begin insert 7599.80. end insert   

Notwithstanding any other law, the powers and duties
of the bureau, as set forth in this chapter, shall be subject to review
by the appropriate policy committees of the Legislature. The review
shall be performed as if this chapter were scheduled to be repealed
as of January 1, 2020.

end insert

All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 25, 2015. (JR11)