Amended in Assembly August 19, 2016

Amended in Assembly September 3, 2015

Amended in Assembly August 31, 2015

Amended in Assembly July 14, 2015

Amended in Assembly July 1, 2015

Amended in Senate June 1, 2015

Amended in Senate April 22, 2015

Senate BillNo. 468


Introduced bybegin delete Senatorend deletebegin insert Senators Allen andend insert Hill

begin insert

(Principal coauthors: Assembly Members Hadley and Mullin)

end insert

February 25, 2015


An act to begin delete amend Sections 7507.6, 7508.1, 7508.2, 7508.3, 7508.4, 7508.6, 7542, 7563, 7566, 7583.4, 7583.6, 7583.12, 7583.22, 7583.23, 7583.24, 7583.25, 7583.29, 7583.32, 7583.33, 7587.8, 7587.9, 7587.10, 7587.12, 7587.14, 7597.1, 7597.2, 7597.3, 7597.5, 7597.6, 7598.51, 7598.53, 7599.32, 7599.33, 7599.34, 7599.36, 7599.37, 7599.38, 7599.40, 7599.41, 7599.42, 7599.44, 7599.45, 7599.54, and 7599.59 of, to add Sections 7583.47 and 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 6 (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 delete begin insert add and repeal Sections 32132.9 and 32132.95 of the Health and Safety Code, relating to health care districts, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 468, as amended, begin deleteHillend deletebegin insertAllenend insert. begin deleteBureau of Security and Investigative Services: licensees. end deletebegin insertHealth care districts: design-build.end insert

begin insert

Existing law authorizes certain health care districts to use the design-build process when contracting for the construction of a building or improvements directly related to construction of a hospital or health facility building in those districts, as specified. Existing law sets forth the procurement process for design-build projects, as specified, and requires specified information submitted by design-build entities to be certified under penalty of perjury.

end insert
begin insert

This bill would authorize, until January 1, 2022, the Beach Cities Health District and the Peninsula Health Care District to use the design-build process for the construction of facilities or other buildings in those districts, as specified. Because the bill would expand the application of the procurement process to additional design-build entities, the bill would expand the crime of perjury, thereby imposing a state-mandated local program.

end insert
begin insert

This bill would make legislative findings and declarations as to the necessity of a special statute for the Beach Cities Health District and the Peninsula Health Care District.

end insert
begin insert

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 insert
begin insert

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

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

(1) Existing law provides for the regulation, by the Bureau of Security and Investigative Services, of locksmiths and the employees 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 delete
begin delete

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

end delete
begin delete

(2) Existing law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies by the Bureau of Security and Investigative Services and prohibits the use of an alias in connection with the official activities of a licensed repossession agency’s business. The act requires a notice to be mailed to the Chief of the Bureau of Security and Investigative Services within 7 days after the occurrence of a violent act or a threatened violent act involving a licensee or its employees while acting in the scope of his or her employment, as specified.

end delete
begin delete

This bill would instead prohibit the use of a business name other than the name of a licensed repossession agency in connection with the official activities of the licensee’s business. This bill would remove the notice requirement, described above, where there was a threatened act of violence, as specified.

end delete
begin delete

(3) 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 delete
begin delete

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. The bill would also require, if a firearms qualification card is denied, the denial to be in writing and include the basis for the denial.

end delete
begin delete

(4) 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 delete
begin delete

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 delete
begin delete

(5) 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 delete
begin delete

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

end delete
begin delete

(6) 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 delete
begin delete

This bill would exempt from those provisions a federal qualified law enforcement officer, as defined.

end delete
begin delete

(7) 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 delete
begin delete

This bill would require the bureau, within 120 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 delete
begin delete

(8) 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 delete
begin delete

This bill would, beginning July 1, 2017, require specified applicants for a firearms permit or the renewal of a firearms permit to complete a psychological assessment to determine whether or not the applicant, as the point in time of the assessment, is capable of exercising appropriate judgment, restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties, as provided. This bill would prohibit the bureau from issuing or renewing a firearms permit to an applicant who has been deemed by a licensed psychologist as not being capable of exercising appropriate judgment, restraint, and self-control for the purposes of carrying and using a firearm during the course of his or her duties, at the time of evaluation. This bill would prohibit the applicant from reapplying for a permit for one year from the date of denial and would not provide for a review or hearing of a denial based on the assessment. The bill would authorize the bureau to decide whether an applicant be administered an additional evaluation after the discharge of a firearm, as described.

end delete
begin delete

(9) The Collateral Recovery Act, the Private Investigator Act, the Private Security Services Act, and the Alarm Company Act impose, or authorize the imposition of, various fines and civil penalties, or suspend various licenses or permits issued pursuant to those acts, for violations of specified provisions of those acts.

end delete
begin delete

This bill would revise specified fine amounts, civil penalty amounts, and suspensions for violations of specified provisions of the Collateral Recovery Act, the Private Investigator Act, the Private Security Services Act, and the Alarm Company Act, and would include conforming changes to specified fine and penalty provisions in the Alarm Company Act that were made by Chapter 140 of the Statutes of 2015 and that go into effect January 1, 2016.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P5    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 32132.9 is added to the end insertbegin insertHealth and Safety
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert32132.9.end insert  

(a) Notwithstanding Section 32132 or any other law,
4upon approval by the board of directors of the Beach Cities Health
5District, the design-build process described in Chapter 4
6(commencing with Section 22160) of Part 3 of Division 2 of the
P6    1Public Contract Code may be used to assign contracts for the
2construction of facilities or other buildings in that district.

3
(b) For purposes of this section, all references in Chapter 4
4(commencing with Section 22160) of Part 3 of Division 2 of the
5Public Contract Code to “local agency” shall mean the Beach
6Cities Health District and its board of directors.

7
(c) To the extent that any project utilizing the design-build
8process authorized by subdivision (a) is otherwise required to
9comply with the standards and requirements of the Alfred E. Alquist
10Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
11(commencing with Section 129675) of Part 7 of Division 107), this
12section shall not be construed as an exemption from that act.

13
(d) This section shall remain in effect only until January 1, 2022,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2022, deletes or extends that date.

end insert
16begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 32132.95 is added to the end insertbegin insertHealth and Safety
17Code
end insert
begin insert, to read:end insert

begin insert
18

begin insert32132.95.end insert  

(a) Notwithstanding Section 32132 or any other
19law, upon approval by the board of directors of the Peninsula
20Health Care District, the design-build process described in Chapter
214 (commencing with Section 22160) of Part 3 of Division 2 of the
22Public Contract Code may be used to assign contracts for the
23construction of facilities or other buildings in that district.

24
(b) For purposes of this section, all references in Chapter 4
25(commencing with Section 22160) of Part 3 of Division 2 of the
26Public Contract Code to “local agency” shall mean the Peninsula
27Health Care District and its board of directors.

28
(c) To the extent that any project utilizing the design-build
29process authorized by subdivision (a) is otherwise required to
30comply with the standards and requirements of the Alfred E. Alquist
31Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
32(commencing with Section 129675) of Part 7 of Division 107), this
33section shall not be construed as an exemption from that act.

34
(d) This section shall remain in effect only until January 1, 2022,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2022, deletes or extends that date.

end insert
37begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The Legislature finds and declares that a special law
38is necessary and that a general law cannot be made applicable
39within the meaning of Section 16 of Article IV of the California
40Constitution because of the unique circumstances relating to the
P7    1Beach Cities Health District and the Peninsula Health Care
2District.

end insert
3begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
4Section 6 of Article XIII B of the California Constitution because
5the only costs that may be incurred by a local agency or school
6district will be incurred because this act creates a new crime or
7infraction, eliminates a crime or infraction, or changes the penalty
8for a crime or infraction, within the meaning of Section 17556 of
9the Government Code, or changes the definition of a crime within
10the meaning of Section 6 of Article XIII B of the California
11Constitution.

end insert
12begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
13immediate preservation of the public peace, health, or safety within
14the meaning of Article IV of the Constitution and shall go into
15immediate effect. The facts constituting the necessity are:

end insert
begin insert

16
In order for the Beach Cities Health District and the Peninsula
17Health Care District to facilitate construction of facilities or other
18buildings in those districts at the earliest possible time pursuant
19to design-build authority, and to ensure the expedient provision
20of health care services in those districts at the earliest possible
21time, it is necessary that this act take immediate effect.

end insert
begin delete
22

SECTION 1.  

Article 10 (commencing with Section 6981) is
23added to Chapter 8.5 of Division 3 of the Business and Professions
24Code
, to read:

25 

26Article 10.  Review
27

 

28

6981.  

Notwithstanding any other law, the powers and duties
29of the bureau, as set forth in this chapter, shall be subject to review
30by the appropriate policy committees of the Legislature. The review
31shall be performed as if this chapter were scheduled to be repealed
32as of January 1, 2020.

33

SEC. 2.  

Section 7507.6 of the Business and Professions Code
34 is amended to read:

35

7507.6.  

(a) Within seven days after a violent act has occurred
36involving a licensee, or any officer, partner, qualified certificate
37holder, registrant or employee of a licensee, while acting within
38the course and scope of his or her employment or contract, that
39results in a police report or bodily harm or bodily injury, the
40licensee or the licensee’s qualified certificate holder or registrant,
P8    1shall mail or deliver to the chief a notice concerning the incident
2upon a form provided by the bureau.

3(b) Within seven days after the occurrence of a violent act
4involving a licensee, or any officer, partner, qualified certificate
5holder, registrant, or employee of a licensee while acting within
6the course and scope of his or her employment or contract, that
7results in a police report or bodily harm or bodily injury, the
8licensee or the licensee’s qualified certificate holder or registrant
9shall send by certified mail, return receipt requested, a notice
10containing information about the incident to the person or
11individual who made the assignment. If the assignor is not the
12legal owner, the assignor shall notify the legal owner of the
13contents of the notice.

14(c) A licensee, qualified certificate holder, or registrant may
15send the notice set forth in subdivision (b) for a violent act or
16threatened violent act even if a police report is not made or no
17bodily harm or bodily injury occurs. Any notice of a threatened
18violent act provided pursuant to subdivision (b) may only be used
19to notify a subsequent assignee and not for any collateral purpose.
20Nothing in this subdivision shall be construed to provide immunity
21against any claim for defamation.

22

SEC. 3.  

Section 7508.1 of the Business and Professions Code
23 is amended to read:

24

7508.1.  

The director may assess administrative fines for the
25following prohibited acts:

26(a) Knowingly making any false report to his or her employer
27or client for whom information was being obtained. The fine shall
28be one hundred dollars ($100) for the first violation and five
29hundred dollars ($500) for each violation thereafter.

30(b) Using any identification to indicate registration as a
31repossessor, other than the bureau-issued registration card, except
32an employer identification card issued by the repossession agency
33which has met bureau approval, or a badge, cap insignia, or jacket
34patch as provided in Section 7508.8. A bureau-issued registration
35card shall be carried by those individuals specified by Section
367506.3, and shall be shown on demand to any bureau employee
37or law enforcement officer. The fine shall be one hundred dollars
38($100) for each violation.

39(c) Using a business name other than the name under which the
40license is issued in connection with the official activities of the
P9    1licensee’s business. The bureau shall issue a notice of warning for
2a first violation, a fine of one hundred dollars ($100) for the second
3violation, and a fine not to exceed two hundred fifty dollars ($250)
4for each violation thereafter.

5(d) Appearing as an assignee party in any court proceeding
6involving claim and delivery, replevin, or other possessory court
7action, action to foreclose a chattel mortgage, mechanic’s lien,
8materialman’s lien, or any other lien. This section shall not prohibit
9a licensee from appearing as a defendant in any of the preceding
10actions. The fine shall be one hundred dollars ($100) for each
11violation.

12

SEC. 4.  

Section 7508.2 of the Business and Professions Code
13 is amended to read:

14

7508.2.  

The director may assess administrative fines for any
15of the following prohibited acts:

16(a) Recovering collateral or making any money demand in lieu
17thereof, including, but not limited to, collateral registered under
18the Vehicle Code, that has been sold under a security agreement
19before a signed or telegraphic authorization has been received from
20the legal owner, debtor, lienholder, lessor, or repossession agency
21acting on behalf of the legal owner, debtor, lienholder, or lessor
22of the collateral. A telephonic assignment is acceptable if the legal
23owner, debtor, lienholder, lessor, or repossession agency acting
24on behalf of the legal owner, debtor, lienholder, or lessor is known
25to the licensee and a written authorization from the legal owner,
26debtor, lienholder, lessor, or repossession agency acting on behalf
27of the legal owner, debtor, lienholder, or lessor is received by the
28licensee within 10 working days or a request by the licensee for a
29written authorization from the legal owner, debtor, lienholder,
30lessor, or repossession agency acting on behalf of the legal owner,
31debtor, lienholder, or lessor is made in writing within 10 working
32days. Referrals of assignments from one licensee to another
33licensee are acceptable. The referral of an assignment shall be
34made under the same terms and conditions as in the original
35assignment. The fine shall be one hundred dollars ($100) for the
36first violation and five hundred dollars ($500) for each violation
37thereafter, per audit.

38(b) Using collateral or personal effects, which have been
39recovered, for the personal benefit of a licensee, or officer, partner,
40manager, registrant, or employee of a licensee. The fine shall be
P10   1two hundred fifty dollars ($250) for the first violation and a fine
2not to exceed one thousand dollars ($1,000) for each violation
3thereafter. This subdivision does not apply to personal effects
4disposed of pursuant to subdivision (c) of Section 7507.9. Nothing
5in this subdivision prohibits the using or taking of personal property
6connected, adjoined, or affixed to the collateral through an
7unbroken sequence if that use or taking is reasonably necessary to
8effectuate the recovery in a safe manner or to protect the collateral
9or personal effects.

10(c) Selling collateral recovered under this chapter, or making a
11demand for payment in lieu of repossession. The fine shall be two
12hundred fifty dollars ($250) for the first violation and a fine not
13to exceed one thousand dollars ($1,000) for each subsequent
14violation.

15(d) Unlawfully entering any private building or secured area
16without the consent of the owner, or of the person in legal
17possession thereof, at the time of repossession. The fine shall be
18five hundred dollars ($500) for each violation.

19(e) Committing unlawful assault or battery on another person
20during the course of a repossession. The fine shall not exceed two
21thousand five hundred dollars ($2,500) for each violation.

22(f) Falsification of an inventory. The fine shall be one hundred
23dollars ($100) for the first violation and two hundred fifty dollars
24($250) for each violation thereafter.

25(g) Soliciting from the legal owner the recovery of specific
26collateral registered under the Vehicle Code or under the motor
27vehicle licensing laws of other states after the collateral has been
28seen or located on a public street or on public or private property
29without divulging the location of the vehicle. The fine shall be one
30hundred dollars ($100) for the first violation and two hundred fifty
31dollars ($250) for each violation thereafter.

32

SEC. 5.  

Section 7508.3 of the Business and Professions Code
33 is amended to read:

34

7508.3.  

A licensee, or any of his or her registrants or
35employees, or a qualified certificate holder, is prohibited from
36using any false or misleading representation during the course of
37recovery of collateral. The bureau shall issue a notice of warning
38for a first violation, a fine of one hundred dollars ($100) for the
39second violation, and a fine not to exceed two hundred fifty dollars
40($250) for any subsequent violation of any of the following:

P11   1(a) The false representation or implication that the individual
2is vouched for, bonded by, or affiliated with the United States or
3with any state, county, city, or city and county, including the use
4of any badge, uniform, or facsimile thereof.

5(b) The false representation or implication that any individual
6is an attorney or that any communication is from any attorney.

7(c) The representation or implication by a repossession agency
8or its registrants or employees that nonpayment of any debt will
9result in the arrest or imprisonment of any person or the seizure,
10garnishment, attachment, or sale of any property or wages of any
11person, unless the action is lawful and the creditor has instructed
12the repossession agency to inform the debtor that the creditor
13intends to take the action.

14(d) The threat to take any action that cannot legally be taken.

15(e) The false representation or implication that the debtor
16committed any crime or other conduct in order to disgrace the
17debtor.

18(f) The use or distribution of any written communication which
19simulates or is falsely represented to be a document authorized,
20issued, or approved by any court, official, or agency of the United
21States or any state, or which creates a false impression as to its
22source, authorization, or approval.

23(g) The false representation or implication that documents are
24legal process.

25(h) The use of any business, company, or organization name
26other than the true name of the repossession agency’s business,
27company, or organization.

28(i) The use of any deceptive forms.

29

SEC. 6.  

Section 7508.4 of the Business and Professions Code
30 is amended to read:

31

7508.4.  

The director may assess administrative fines for any
32of the following prohibited acts:

33(a) Conducting business from any location other than that
34location to which a license was issued or conducting a business as
35an individual, partnership, limited liability company, or corporation
36unless the licensee holds a valid license issued to that exact same
37individual, partnership, limited liability company, or corporation.
38The fine shall be one thousand dollars ($1,000) for each violation.

39(b) Aiding or abetting an unlicensed repossessor or assigning
40his or her license. “Assigning his or her license” means that no
P12   1licensee shall permit a registrant, employee, or agent in his or her
2own name to advertise, engage clients, furnish reports, or present
3bills to clients, or in any manner whatsoever to conduct business
4for which a license is required under this chapter. The fine shall
5be one thousand dollars ($1,000) for each violation.

6(c) Failing to register registrants within 15 days. The fine shall
7be two hundred fifty dollars ($250) for each of the first two
8violations and one thousand dollars ($1,000) for each violation
9thereafter.

10(d) Employing a person whose registration has expired or been
11revoked, denied, suspended, or canceled, if the bureau has furnished
12a listing of these persons to the licensee. The fine shall be one
13hundred fifty dollars ($150) for the first violation and a fine not
14to exceed one thousand dollars ($1,000) for each violation
15thereafter.

16(e) Failing to notify the bureau, within 30 days, of any change
17in officers. A notice of warning shall be issued for the first
18violation. Thereafter, the fine shall be five hundred dollars ($500)
19for each violation.

20(f) Failing to submit the notices regarding a violent act or
21threatened violent act within seven days pursuant to Section 7507.6
22or to submit a copy of a judgment awarded against the licensee
23for an amount of more than the then prevailing maximum claim
24that may be brought in small claims court within seven days
25pursuant to Section 7507.7. The fine shall not exceed five hundred
26dollars ($500) for the first violation and not exceed one thousand
27dollars ($1,000) for each violation thereafter.

28(g) Failing to include the licensee’s name, address, and license
29number in any advertisement. The fine shall be fifty dollars ($50)
30for each violation.

31(h) Failing to maintain personal effects for at least 60 days. The
32fine shall be one hundred dollars ($100) for the first violation and
33two hundred fifty dollars ($250) for each violation thereafter.

34(i) Failing to provide a personal effects list or a notice of seizure
35within the time limits set forth in Section 7507.9 or 7507.10. The
36fine shall be one hundred dollars ($100) for the first violation and
37two hundred fifty dollars ($250) for each violation thereafter.

38(j) Failing to file the required report pursuant to Section 28 of
39the Vehicle Code. The fine shall be one hundred dollars ($100)
P13   1for the first violation and two hundred fifty dollars ($250) for each
2violation thereafter, per audit.

3(k) Failing to maintain an accurate record and accounting of
4secure temporary registration forms. The qualified certificate holder
5shall be fined two hundred fifty dollars ($250) for the first
6violation, fined an amount not to exceed five hundred dollars
7($500) for the second violation, and fined an amount not to exceed
8one thousand dollars ($1,000) plus a one-year suspension of the
9privilege to issue temporary registrations pursuant to Section
107506.9 for the third and subsequent violations.

11(l) Representing that a licensee has an office and conducts
12business at a specific address when that is not the case. The fine
13shall be five thousand dollars ($5,000) for each violation.

14(m) Notwithstanding any other law, the money in the Private
15Security Services Fund that is attributable to administrative fines
16imposed pursuant to this section shall not be continuously
17appropriated and shall be available for expenditure only upon
18appropriation by the Legislature.

19

SEC. 7.  

Section 7508.6 of the Business and Professions Code
20 is amended to read:

21

7508.6.  

The director may assess administrative fines against
22any repossession agency licensee, qualified certificate holder, or
23registrant for failure to notify the bureau within 30 days of any
24change of residence or business address. The fine shall be fifty
25dollars ($50) for each violation.

26

SEC. 8.  

Article 12 (commencing with Section 7511.5) is added
27to Chapter 11 of Division 3 of the Business and Professions Code,
28to read:

29 

30Article 12.  Review
31

 

32

7511.5.  

Notwithstanding any other law, the powers and duties
33of the bureau, as set forth in this chapter, shall be subject to review
34by the appropriate policy committees of the Legislature. The review
35shall be performed as if this chapter were scheduled to be repealed
36as of January 1, 2020.

37

SEC. 9.  

Section 7542 of the Business and Professions Code is
38amended to read:

39

7542.  

(a) A licensee and qualified manager who in the course
40of his or her employment or business carries a deadly weapon shall
P14   1complete a course of training in the exercise of the powers to arrest
2as specified in Section 7583.7 and a course of training in the
3carrying and use of firearms as specified in Article 4 (commencing
4with Section 7583) of Chapter 11.5. A licensee or qualified
5manager shall not carry or use a firearm unless he or she has met
6the requirements of subdivisions (a) to (e), inclusive, and
7subdivision (g) of Section 7583.23, subdivisions (a) to (d),
8inclusive, of Section 7583.24, and Section 7583.28 and has in his
9or her possession a valid firearms qualification card. A licensee
10or qualified manager who possesses a valid firearms qualification
11card shall comply with, and be subject to subdivisions (a) to (d),
12inclusive, of Sections 7583.25, and Sections 7583.26, 7583.27,
137583.31, 7583.32, and 7583.37, except that paragraph (5) of
14Section 7583.32 shall not apply. A licensee or qualified manager
15who possesses a valid firearms qualification card may carry a
16firearm capable of being concealed upon the person in a concealed
17manner if he or she complies with applicable provisions set forth
18in Chapter 4 (commencing with Section 26150) of Division 5 of
19Title 4 of Part 6 of the Penal Code.

20(b) (1) If a firearms qualification card is denied, the denial shall
21be in writing and shall describe the basis for the denial. Along with
22the denial, the applicant shall be informed that he or she may
23 request a hearing in accordance with Chapter 5 (commencing with
24Section 11500) of Part 1 of Division 3 of Title 2 of the Government
25Code.

26(2) The hearing shall be requested of the director within 30 days
27following issuance of the denial. However, no hearing shall be
28granted to an applicant who is otherwise prohibited by law from
29carrying a firearm.

30

SEC. 10.  

Section 7563 of the Business and Professions Code
31 is amended to read:

32

7563.  

The director, in lieu of suspending or revoking a license
33issued under this chapter for violations of Sections 7561.1, 7561.3,
34and 7561.4, may impose a civil penalty not to exceed five hundred
35dollars ($500) for the first violation, and one thousand dollars
36($1,000) for each violation thereafter, upon a licensee, if the
37director determines that this action better serves the purposes of
38this chapter.

39

SEC. 11.  

Section 7566 of the Business and Professions Code
40 is amended to read:

P15   1

7566.  

The director may assess administrative fines of fifty
2dollars ($50) against any licensee, qualified manager, or firearms
3qualification cardholder for each violation for failure to notify the
4bureau within 30 days of any change of residence or business
5address. The principal place of business may be at a home or at a
6business address, but it shall be the place at which the licensee
7maintains a permanent office.

8

SEC. 12.  

Article 8 (commencing with Section 7573.5) is added
9to Chapter 11.3 of Division 3 of the Business and Professions
10Code
, to read:

11 

12Article 8.  Review
13

 

14

7573.5.  

Notwithstanding any other law, the powers and duties
15of the bureau, as set forth in this chapter, shall be subject to review
16by the appropriate policy committees of the Legislature. The review
17shall be performed as if this chapter were scheduled to be repealed
18as of January 1, 2020.

19

SEC. 13.  

Article 6 (commencing with Section 7576) is added
20to Chapter 11.4 of Division 3 of the Business and Professions
21Code
, to read:

22 

23Article 6.  Review
24

 

25

7576.  

Notwithstanding any other law, the powers and duties
26of the bureau, as set forth in this chapter, shall be subject to review
27by the appropriate policy committees of the Legislature. The review
28shall be performed as if this chapter were scheduled to be repealed
29as of January 1, 2020.

30

SEC. 14.  

Section 7583.4 of the Business and Professions Code
31 is amended to read:

32

7583.4.  

Any person registered as a security guard or
33patrolperson, and the employer of the security guard or
34patrolperson, shall deliver to the director a written report describing
35fully the circumstances surrounding any incident involving the
36discharge of any firearm in which he or she was involved while
37acting within the course and scope of his or her employment, within
38seven days after the incident. The report shall be made on a form
39prescribed by the director which shall include, but not be limited
40to, the following:

P16   1(a) The name, address, and date of birth of the guard or
2patrolperson.

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

4(c) The firearm permit number and baton permit number of the
5guard or patrolperson, if applicable.

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

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

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

9(g) Whether a police investigation was conducted relating to
10the incident.

11(h) The date and location of the incident. Any report may be
12investigated by the director to determine if any disciplinary action
13is necessary.

14A copy of the report delivered to the director pursuant to this
15section shall also be delivered within seven days of the incident
16to the local police or sheriff’s department which has jurisdiction
17over the geographic area where the incident occurred.

18

SEC. 15.  

Section 7583.6 of the Business and Professions Code
19 is amended to read:

20

7583.6.  

(a) A person entering the employ of a licensee to
21perform the functions of a security guard or a security patrolperson
22shall complete a course in the exercise of the power to arrest prior
23to being assigned to a duty location.

24(b) Except for a registrant who has completed the course of
25training required by Section 7583.45, a person registered pursuant
26to this chapter shall complete not less than 32 hours of training in
27security officer skills within six months from the date the
28registration card is issued. Sixteen of the 32 hours shall be
29completed within 30 days from the date the registration card is
30issued.

31(c) A course provider shall issue a certificate to a security guard
32upon satisfactory completion of a required course, conducted in
33accordance with the department’s requirements. A private patrol
34operator may provide training programs and courses in addition
35to the training required in this section. A registrant who is unable
36to provide his or her employing licensee the certificate of
37satisfactory completion required by this subdivision shall complete
3816 hours of the training required by subdivision (b) within 30 days
39of the date of his or her employment and shall complete the 16
40remaining hours within six months of his or her employment date.

P17   1(d) The department shall develop and approve by regulation a
2standard course and curriculum for the skills training required by
3subdivision (b) to promote and protect the safety of persons and
4the security of property. For this purpose, the department shall
5consult with consumers, labor organizations representing private
6security officers, private patrol operators, educators, and subject
7matter experts.

8(e) The course of training required by subdivision (b) may be
9administered, tested, and certified by any licensee, or by any
10organization or school approved by the department. The department
11may approve any person or school to teach the course.

12(f) (1) On and after January 1, 2005, a licensee shall annually
13provide each employee registered pursuant to this chapter with
14eight hours of specifically dedicated review or practice of security
15officer skills prescribed in either course required in Section 7583.6
16 or 7583.7.

17(2) A licensee shall maintain at the principal place of business
18or branch office a record verifying completion of the review or
19practice training for a period of not less than two years. The records
20shall be available for inspection by the bureau upon request.

21(g) This section does not apply to a peace officer as defined in
22Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
23of the Penal Code who has successfully completed a course of
24study in the exercise of the power to arrest approved by the
25Commission on Peace Officer Standards and Training. This section
26does not apply to armored vehicle guards and federal qualified law
27enforcement officers, as defined in Section 926B of Title 18 of the
28United States Code, who have successfully completed a course of
29study in the exercise of the power to arrest.

30

SEC. 16.  

Section 7583.12 of the Business and Professions
31Code
is amended to read:

32

7583.12.  

(a) An employee of a licensee shall not carry or use
33a firearm unless the employee has in his or her possession both of
34the following:

35(1) A valid guard registration card issued pursuant to this
36chapter.

37(2) A valid firearm qualification card issued pursuant to this
38chapter.

39(b) An employee of a licensee may carry or use a firearm while
40working as a security guard or security patrolperson pending receipt
P18   1of a firearm qualification card if he or she has been approved by
2the bureau and carries on his or her person a hardcopy printout of
3the bureau’s approval from the bureau’s Internet Web site and a
4valid picture identification.

5(c) In the event of the loss or destruction of the firearm
6qualification card, the cardholder may apply to the bureau for a
7certified replacement of the card, stating the circumstances
8surrounding the loss, and pay a ten-dollar ($10) certification fee,
9whereupon the bureau shall issue a certified replacement of the
10card.

11(d) Paragraph (2) of subdivision (a) and subdivision (b) shall
12not apply to a duly appointed peace officer, as defined in Chapter
134.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal
14Code, who meets all of the following:

15(1) He or she has successfully completed a course of study in
16the use of firearms.

17(2) He or she is authorized to carry a concealed firearm in the
18course and scope of his or her employment pursuant to Article 2
19(commencing with Section 25450) of Chapter 2 of Division 5 of
20Title 4 of Part 6 of the Penal Code.

21(3) He or she has proof that he or she has applied to the bureau
22for a firearm qualification card.

23(e) (1) This section shall not apply to a duly appointed peace
24officer, as defined in Chapter 4.5 (commencing with Section 830)
25of Title 3 of Part 2 of the Penal Code, or a federal qualified law
26enforcement officer, as defined in Section 926B of Title 18 of the
27United States Code, who has written approval from his or her
28primary employer, as defined in paragraph (2) of subdivision (i)
29 of Section 7583.9, to carry a firearm while working as a security
30guard or security officer or to a federal qualified law enforcement
31officer, as defined in Section 926B of Title 18 of the United States
32Code.

33(2) A peace officer exempt under this subdivision shall carry
34on his or her person a letter of approval from his or her primary
35employer authorizing him or her to carry a firearm while working
36as a security guard or security officer.

37

SEC. 17.  

Section 7583.22 of the Business and Professions
38Code
is amended to read:

39

7583.22.  

(a) A licensee, qualified manager of a licensee, or
40security guard who, in the course of his or her employment, may
P19   1be required to carry a firearm shall, prior to carrying a firearm, do
2both of the following:

3(1) Complete a course of training in the carrying and use of
4firearms.

5(2) Receive a firearms qualification card or be otherwise
6qualified to carry a firearm as provided in Section 7583.12.

7(b) A licensee shall not permit an employee to carry or use a
8loaded or unloaded firearm, whether or not it is serviceable or
9operative, unless the employee possesses a valid and current
10firearms qualification card issued by the bureau or is so otherwise
11qualified to carry a firearm as provided in Section 7583.12.

12(c) A pocket card issued by the bureau pursuant to Section
137582.13 may also serve as a firearms qualification card if so
14indicated on the face of the card.

15(d) Paragraph (1) of subdivision (a) shall not apply to a peace
16officer as defined in Chapter 4.5 (commencing with Section 830)
17of Title 3 of Part 2 of the Penal Code, who has successfully
18completed a course of study in the use of firearms or to a federal
19qualified law enforcement officer, as defined in Section 926B of
20Title 18 of the United States Code, who has successfully completed
21a course of study in the use of firearms.

22

SEC. 18.  

Section 7583.23 of the Business and Professions
23Code
is amended to read:

24

7583.23.  

The bureau shall issue a firearms permit when all of
25the following conditions are satisfied:

26(a) The applicant is a licensee, a qualified manager of a licensee,
27or a registered uniformed security guard.

28(b) A certified firearms training instructor has certified that the
29applicant has successfully completed a written examination
30prepared by the bureau and training course in the carrying and use
31of firearms approved by the bureau.

32(c) The applicant has filed with the bureau a classifiable
33fingerprint card, a completed application for a firearms permit on
34a form prescribed by the director, dated and signed by the applicant,
35certifying under penalty of perjury that the information in the
36application is true and correct.

37(d) The bureau has determined, after investigation, that the
38carrying and use of a firearm by the applicant, in the course of his
39or her duties, presents no apparent threat to the public safety, or
P20   1that the carrying and use of a firearm by the applicant is not in
2violation of the Penal Code.

3(e) The applicant has produced evidence to the firearm training
4facility that he or she is a citizen of the United States or has
5permanent legal alien status in the United States. Evidence of
6citizenship or permanent legal alien status shall be that deemed
7sufficient by the bureau to ensure compliance with federal laws
8prohibiting possession of firearms by persons unlawfully in the
9United States and may include, but not be limited to, the United
10States Department of Justice, Immigration and Naturalization
11Service Form I-151 or I-551, Alien Registration Receipt Card,
12naturalization documents, or birth certificates evidencing lawful
13residence or status in the United States.

14(f) Beginning July 1, 2017, the applicant has been found capable
15of exercising appropriate judgment, restraint, and self-control for
16the purposes of carrying and using a firearm during the course of
17his or her duties, pursuant to Section 7583.47.

18(g) The application is accompanied by the application fees
19prescribed in this chapter.

20

SEC. 19.  

Section 7583.24 of the Business and Professions
21Code
is amended to read:

22

7583.24.  

(a) The bureau shall not issue a firearm permit if the
23applicant is prohibited from possessing, receiving, owning, or
24purchasing a firearm pursuant to state or federal law.

25(b) Before issuing an initial firearm permit the bureau shall
26 provide the Department of Justice with the name, address, social
27security number, and fingerprints of the applicant.

28(c) The Department of Justice shall inform the bureau, within
2960 days from receipt of the information specified in subdivision
30(b), of the applicant’s eligibility to possess, receive, purchase, or
31own a firearm pursuant to state and federal law.

32(d) An applicant who has been denied a firearm permit based
33upon subdivision (a) may reapply for the permit after the
34prohibition expires. The bureau shall treat this application as an
35initial application and shall follow the required screening process
36as specified in this section.

37(e) Beginning July 1, 2017, the bureau shall not issue a firearm
38permit if the applicant has not been found capable of exercising
39appropriate judgment, restraint, and self-control for the purposes
P21   1of carrying and using a firearm during the course of his or her
2duties, pursuant to Section 7583.47.

3

SEC. 20.  

Section 7583.25 of the Business and Professions
4Code
is amended to read:

5

7583.25.  

(a) The bureau shall not renew a firearm permit if
6the applicant is prohibited from possessing, receiving, purchasing,
7or owning a firearm pursuant to state or federal law.

8(b) Before renewing a firearm permit, the bureau shall provide
9the Department of Justice with the information necessary to identify
10the renewal applicant. No firearm permit shall be renewed if the
11expiration date of the permit is between October 1, 1993, and
12October 1, 1994, unless the application for renewal is also
13accompanied by a classifiable fingerprint card and the fingerprint
14processing fees for that card.

15(c) The Department of Justice shall inform the bureau, within
1630 days of receipt of the information specified in subdivision (b),
17of the renewal applicant’s eligibility to possess, receive, purchase,
18or own a firearm pursuant to state and federal law.

19(d) An applicant who is denied a firearm permit renewal based
20upon subdivision (a) may reapply for the permit after the
21prohibition expires. The bureau shall treat this as an initial
22application and shall follow the screening process specified in
23Section 7583.24.

24(e) Beginning July 1, 2017, the bureau shall not renew a firearm
25permit if the applicant has not been found capable of exercising
26appropriate judgment, restraint, and self-control for the purposes
27of carrying and using a firearm during the course of his or her
28duties, pursuant to Section 7583.47.

29

SEC. 21.  

Section 7583.29 of the Business and Professions
30Code
is amended to read:

31

7583.29.  

If a firearms permit is denied, the denial of the permit
32shall be in writing and shall describe the basis for the denial. The
33denial shall inform the applicant that if he or she desires a review
34by a disciplinary review committee to contest the denial, the review
35shall be requested of the director within 30 days following notice
36of the issuance of the denial. However, no review or hearing shall
37be granted to an individual who is otherwise prohibited by law
38from carrying a firearm or, beginning July 1, 2017, the applicant
39has not been found capable of exercising appropriate judgment,
40restraint, and self-control for the purposes of carrying and using
P22   1a firearm during the course of his or her duties, pursuant to Section
2 7583.47.

3

SEC. 22.  

Section 7583.32 of the Business and Professions
4Code
is amended to read:

5

7583.32.  

(a) A firearms qualification card expires two years
6from the date of issuance, if not renewed. A person who wishes
7to renew a firearms qualification card shall file an application for
8renewal at least 60 days prior to the card’s expiration. A person
9whose card has expired shall not carry a firearm until he or she
10has been issued a renewal card by the bureau.

11(b) The bureau shall not renew a firearms qualification card
12unless all of the following conditions are satisfied:

13(1) The cardholder has filed with the bureau a completed
14application for renewal of a firearms qualification card, on a form
15prescribed by the director, dated and signed by the applicant under
16penalty of perjury certifying that the information on the application
17is true and correct.

18(2) The applicant has requalified on the range and has
19successfully passed a written examination based on course content
20as specified in the firearms training manual approved by the
21department and taught at a training facility approved by the bureau.

22(3) The application is accompanied by a firearms requalification
23fee as prescribed in this chapter.

24(4) The applicant has produced evidence to the firearm training
25facility, either upon receiving his or her original qualification card
26or upon filing for renewal of that card, that he or she is a citizen
27of the United States or has permanent legal alien status in the
28United States. Evidence of citizenship or permanent legal alien
29status is that deemed sufficient by the bureau to ensure compliance
30with federal laws prohibiting possession of firearms by persons
31unlawfully in the United States and may include, but not be limited
32to, Department of Justice, Immigration and Naturalization Service
33Form I-151 or I-551, Alien Registration Receipt Card,
34naturalization documents, or birth certificates evidencing lawful
35residence or status in the United States.

36(5) Beginning July 1, 2017, the applicant has been found capable
37of exercising appropriate judgment, restraint, and self-control for
38the purposes of carrying and using a firearm during the course of
39his or her duties, pursuant to Section 7583.47.

P23   1(c) An expired firearms qualification card may not be renewed.
2A person with an expired registration is required to apply for a
3new firearms qualification in the manner required of persons not
4 previously registered. A person whose card has expired shall not
5carry a firearm until he or she has been issued a new firearms
6qualification card by the bureau.

7(d) Paragraph (2) of subdivision (b) shall not apply to a duly
8appointed peace officer, as defined in Chapter 4.5 (commencing
9with Section 830) of Title 3 of Part 2 of the Penal Code who is
10authorized to carry a firearm in the course of his or her duties and
11who has successfully completed requalification training.

12

SEC. 23.  

Section 7583.33 of the Business and Professions
13Code
is amended to read:

14

7583.33.  

(a) Any licensee, qualified manager, or a registered
15uniformed security guard who wishes to carry a baton in the
16performance of his or her duties, shall qualify to carry the weapon
17pursuant to Article 5 (commencing with Section 7585).

18(b) Subdivision (a) does not apply to a peace officer as defined
19in Chapter 4.5 (commencing with Section 830) of Title 3 of Part
202 of the Penal Code who has successfully completed a course of
21study in the use of batons or to a federal qualified law enforcement
22 officer, as defined in Section 926B of Title 18 of the United States
23Code, who has successfully completed a course of study in the use
24of batons.

25

SEC. 24.  

Section 7583.47 is added to the Business and
26Professions Code
, to read:

27

7583.47.  

(a) Beginning July 1, 2017, as a condition for the
28issuance or renewal of a firearms permit, the applicant shall
29complete a psychological assessment to determine whether or not
30the applicant, at the point in time of the assessment, is capable of
31exercising appropriate judgment, restraint, and self-control for the
32purposes of carrying and using a firearm during the course of his
33or her duties. If an applicant fails to meet the standards of the initial
34assessment, the bureau shall provide a secondary assessment option
35pursuant to this section.

36(b) The bureau shall implement a process by which the applicant
37for a firearms permit shall be assessed for appropriate judgment,
38restraint, and self-control for the purposes of carrying and using
39a firearm during the course of his or her duties.

P24   1(c) The bureau shall consult with a California licensed
2psychologist, or other persons with subject matter expertise to
3assist with the development of a contract for a vendor to administer
4the psychological assessments. The licensed psychologist or other
5persons shall assist the bureau with the following, but is not limited
6to the following list:

7(1) The establishment of the minimum standards required for
8the assessment that will be administered by a third-party vendor.

9(2) The review of the contract bids received by the bureau from
10third-party vendors seeking to administer the psychological
11assessments to ensure the assessment specified in the contract bid
12meets the minimum standards for the assessment established by
13the bureau and its consultants.

14(d) The bureau shall contract with a third-party vendor to
15administer a psychological assessment program to determine the
16applicant’s capability, as the point in time of the assessment, of
17exercising appropriate judgment, restraint, and self-control for the
18purposes of carrying and using a firearm during the course of his
19or her duties.

20(e) (1) Upon receipt of the initial or renewal firearms permit
21application, the bureau shall notify the applicant that he or she is
22to contact the bureau’s psychological assessment vendor to
23complete the psychological assessment. The applicant shall bear
24the cost of the psychological assessment. If the applicant seeks
25employment with, or is employed by, a licensee, the licensee may
26bear the costs of the evaluation. The psychological assessment
27vendor shall, within 30 days of completing the assessment, directly
28notify the bureau of the applicant’s capability in exercising
29appropriate judgment, restraint and self-control for the purposes
30of carrying and using a firearm during the course of his or her
31duties, based on the psychological assessment results in the manner
32prescribed by the bureau.

33(2) If the results of the applicant’s psychological assessment
34indicate that he or she is capable of exercising appropriate
35judgment, restraint, and self-control for the purposes of carrying
36and using a firearm during the course of his or her duties, the
37bureau may consider the results as demonstration of the applicant’s
38psychological capability of exercising appropriate judgment,
39restraint, and self-control for the purposes of the issuance of a
40firearms permit.

P25   1(f) If the psychological assessment is inconclusive or determines
2that the applicant may not be capable of exercising appropriate
3judgment, restraint, and self-control for the purposes of carrying
4and using a firearm during the course of his or her duties, and the
5applicant desires to continue the firearms permit application
6process, the applicant shall complete a psychological evaluation.
7The psychological evaluation shall be administered by a California
8licensed psychologist of the applicant’s choosing, excluding any
9psychologist with an existing personal or professional relationship
10with the applicant. The California licensed psychologist, or his or
11her designee, shall conduct an inperson interview and may employ
12whatever psychological measuring instruments or techniques
13deemed necessary to render a professional opinion. The California
14licensed psychologist shall, within 15 days of completing the
15psychological evaluation, provide the bureau with his or her written
16conclusion as to whether or not the applicant is capable of
17exercising appropriate judgment, restraint, and self-control for the
18purposes of carrying and using a firearm during the course of his
19or her duties at the point in time of the evaluation. Included in the
20written psychological evaluation shall be the assessment measures
21used and the reason for their inclusion. The licensed psychologist’s
22written conclusion shall be provided to the bureau on a form
23prescribed by the bureau. The applicant shall bear the costs of the
24psychological evaluation. If the applicant seeks employment with,
25or is employed by, a licensee that has an established and approved
26process for the Minnesota Multiphasic Personality Inventory
27(MMPI), the Institute for Personality and Ability Testing, Inc.,
28(IPAT), or other psychological evaluation, the applicant may
29choose to submit the response data to a licensed psychologist
30chosen by the licensee. A licensee employing this process may
31bear the costs of the evaluation.

32(1) If the conclusions of the applicant’s evaluation by a licensed
33psychologist indicate that he or she is capable of exercising
34appropriate judgment, restraint, and self-control for the purposes
35of carrying and using a firearm during the course of his or her
36duties, at the point in time of the evaluation, the bureau may
37consider the conclusions as a demonstration of the applicant’s
38psychological capability in exercising appropriate judgment,
39restraint, and self-control for the purposes of the issuance of a
40firearms permit.

P26   1(2) The bureau shall not issue or renew a firearms permit to an
2applicant who has been deemed by a licensed psychologist as not
3being capable of exercising appropriate judgment, restraint, and
4self-control for the purposes of carrying and using a firearm during
5the course of his or her duties, at the time of evaluation.

6(g) The bureau may utilize the conclusions of the psychological
7assessment or evaluation, for the purpose of making a
8determination on the individual’s initial or renewal application for
9a firearms permit, for up to six months from the date the assessment
10or evaluation was completed.

11(h) An applicant who is denied a firearms permit by the bureau
12due to being found incapable, at the time of assessment or
13evaluation, of exercising appropriate judgment, restraint, and
14self-control for the purposes of carrying and using a firearm during
15the course of his or her duties, shall not reapply for a firearms
16permit for one year from the date of being denied a firearms permit
17by the bureau.

18(i) The bureau may decide if the applicant shall be administered
19an additional psychological evaluation instrument after the
20discharge of a firearm that requires the written report, described
21in Section 7583.4, in order to retain the firearms permit.

22(j) This section does not apply to the following persons:

23(1) A peace officer as defined in Chapter 4.5 (commencing with
24Section 830) of Title 3 of Part 2 of the Penal Code.

25(2) A federal law enforcement officer.

26(3) A security guard applying for a renewal firearms permit
27where his or her employer verifies that the applicant has been
28employed for at least three years in an armed position in which
29period the applicant has not had a firearms incident or violent
30incident, as described in Section 7583.4. The employer shall submit
31verification of this information on a form prescribed by the bureau.

32(k) This section does not prohibit a licensee from imposing
33additional requirements or taking additional steps to ensure that
34employees are qualified to work with firearms.

35(l) The bureau may promulgate regulations to implement this
36section.

37

SEC. 25.  

Section 7585.4.1 is added to the Business and
38Professions Code
, to read:

39

7585.4.1.  

(a) (1)  Within 120 days after issuance of a
40“Firearms Training Facility Certificate,” the bureau shall inspect
P27   1the facility for compliance with the applicable requirements of this
2article and the applicable rules and regulations of the bureau
3adopted pursuant to this article.

4(2) The bureau may inspect the establishment for which a
5certificate application has been made prior to the issuance of the
6 certificate.

7(b) The bureau shall maintain a program of random and targeted
8inspections of facilities to ensure compliance with applicable laws
9relating to the conduct and operation of facilities.

10(c) If the bureau determines that any facility is not complying
11with applicable laws relating to the conducting and operation of
12facilities, notice thereof shall immediately be given to the facility.

13(d) In addition to the notice, the bureau may issue a citation or
14take other disciplinary action for violations of applicable laws.

15

SEC. 26.  

Section 7587.8 of the Business and Professions Code
16 is amended to read:

17

7587.8.  

The director may assess fines for the following acts
18pursuant to Article 4 (commencing with Section 7583) only as
19follows:

20(a) Violation of subdivisions (a), (b), and (c) of Section 7583.2;
21five hundred dollars ($500) per violation.

22(b) Violation of subdivisions (h) and (i) of Section 7583.2; two
23hundred fifty dollars ($250) per violation.

24(c) Violation of subdivision (d) of Section 7583.2; five hundred
25dollars ($500) per violation.

26(d) Violation of subdivision (g) of Section 7583.2; one thousand
27dollars ($1,000) for the first violation and two thousand five
28hundred dollars ($2,500) per violation for each violation thereafter.

29(e) Violation of subdivision (f) of Section 7583.2; two thousand
30five hundred dollars ($2,500) per violation, notwithstanding any
31other provision of law.

32

SEC. 27.  

Section 7587.9 of the Business and Professions Code
33 is amended to read:

34

7587.9.  

The director may assess fines for the following acts
35pursuant to Article 4 (commencing with Section 7583) only as
36follows:

37(a) Violation of subdivisions (a) and (b) of Section 7583.3; one
38hundred fifty dollars ($150) per violation.

P28   1(b) Violation of subdivision (c) of Section 7583.3; two hundred
2fifty dollars ($250) for the first violation and five hundred dollars
3($500) per violation for each violation thereafter.

4(c) Violation of Section 7583.4; five hundred dollars ($500) per
5violation.

6

SEC. 28.  

Section 7587.10 of the Business and Professions
7Code
is amended to read:

8

7587.10.  

The director may assess fines for the following acts
9pursuant to Article 4 (commencing with Section 7583) only as
10follows:

11(a) Violation of subdivisions (c) and (d) of Section 7583.37;
12one hundred dollars ($100) for the first violation and two hundred
13dollars ($200) for each violation thereafter.

14(b) Violation of subdivision (a) of Section 7583.37; one hundred
15dollars ($100) for the first violation and five hundred dollars ($500)
16for each violation thereafter.

17(c) Violation of subdivision (e) of Section 7583.37; one thousand
18dollars ($1,000).

19(d) Violation of subdivision (b) of Section 7583.37; one
20thousand dollars ($1,000) and suspension of a firearm qualification
21card for six months for the first violation and, for a violation
22thereafter, one thousand dollars ($1,000) and a suspension of a
23firearm qualification card for not more than one year.

24

SEC. 29.  

Section 7587.12 of the Business and Professions
25Code
is amended to read:

26

7587.12.  

The director may assess fines for the following acts
27only as follows:

28(a) Violations of paragraph (1), (2), (11), or (12) of subdivision
29(a) of Section 7585.19; two hundred fifty dollars ($250) for the
30first violation and five hundred dollars ($500) for subsequent
31violations.

32(b) Violations of paragraph (3), (7), (8), or (10) of subdivision
33(a) of Section 7585.19; five hundred dollars ($500) for each
34violation.

35(c) Violations of paragraph (6) of subdivision (a) of Section
367585.19; five hundred dollars ($500) for each hour shortened.

37(d) Violations of paragraph (4) of subdivision (a) of Section
387585.19; five hundred dollars ($500) for each violation.

P29   1(e) Violations of paragraph (5) of subdivision (a) of Section
27585.19; five hundred dollars ($500) for every hour the course has
3been shortened.

4(f) Violations of paragraph (9) of subdivision (a) of Section
57585.19; one thousand dollars ($1,000) for each violation.

6

SEC. 30.  

Section 7587.14 of the Business and Professions
7Code
is amended to read:

8

7587.14.  

The director may assess administrative fines of fifty
9dollars ($50) against any licensee, registrant, or firearms
10qualification cardholder for each violation for failure to notify the
11bureau within 30 days of any change of residence or business
12address. The principal place of business may be at a home or at a
13business address, but it shall be the place at which the licensee
14maintains a permanent office.

15

SEC. 31.  

Article 9 (commencing with Section 7588.8) is added
16to Chapter 11.5 of Division 3 of the Business and Professions
17Code
, to read:

18 

19Article 9.  Review
20

 

21

7588.8.  

Notwithstanding any other law, the powers and duties
22of the bureau, as set forth in this chapter, shall be subject to review
23by the appropriate policy committees of the Legislature. The review
24shall be performed as if this chapter were scheduled to be repealed
25as of January 1, 2020.

26

SEC. 32.  

Section 7597.1 of the Business and Professions Code
27 is amended to read:

28

7597.1.  

(a) A licensee, qualified manager, branch office
29manager, or alarm agent shall not carry, use, or possess a loaded
30or unloaded firearm in the course and scope of his or her
31employment, whether or not it is serviceable or operative, unless
32he or she has in his or her possession a valid and current firearms
33qualification card issued to him or her by the bureau. The card
34shall be shown to any peace officer or bureau representative upon
35demand.

36(b) Subdivision (a) shall not apply to a duly appointed peace
37officer, as defined in Chapter 4.5 (commencing with Section 830)
38of Title 3 of Part 2 of the Penal Code, or a federal qualified law
39enforcement officer, as defined Section 926B of Title 18 of the
40United States Code, who meets all of the following:

P30   1(1) He or she has successfully completed a course of study in
2the use of firearms.

3(2) He or she is authorized to carry a concealed firearm in the
4course and scope of his or her employment pursuant to Article 2
5(commencing with Section 25450) of Chapter 2 of Division 5 of
6Title 4 of Part 6 of the Penal Code.

7(3) He or she has proof that he or she has applied to the bureau
8for a firearms qualification card.

9(c) A fine of two hundred fifty dollars ($250) may be assessed
10for the first violation of this section and a fine of five hundred
11dollars ($500) for each subsequent violation.

12

SEC. 33.  

Section 7597.2 of the Business and Professions Code
13 is amended to read:

14

7597.2.  

(a) A licensee, qualified manager, branch office
15manager, or alarm agent shall not carry any inoperable, replica, or
16other simulated firearm.

17(b) A violation of this section shall result in a fine of one
18hundred dollars ($100) for the first violation and a fine of two
19hundred fifty dollars ($250) for each subsequent violation.

20

SEC. 34.  

Section 7597.3 of the Business and Professions Code
21 is amended to read:

22

7597.3.  

(a) A licensee, qualified manager, branch office
23manager, or alarm agent shall not use a firearm which is in
24violation of law, or in knowing violation of the standards for
25carrying and usage of firearms, as taught in the course of training
26in the carrying and use of firearms, including, but not limited to:

27(1) Illegally using, carrying, or possessing a dangerous weapon.

28(2) Brandishing a weapon.

29(3) Drawing a weapon without proper cause.

30(4) Provoking a shooting incident without cause.

31(5) Carrying or using a firearm while on duty under the influence
32of alcohol or dangerous drugs.

33(6) Carrying or using a firearm of a caliber for which a bureau
34firearms permit has not been issued.

35(b) A fine of one thousand dollars ($1,000) and a suspension of
36the firearms permit for six months may be assessed for the first
37violation of this section and a fine of one thousand dollars ($1,000)
38and a suspension of the firearms permit for not more than one year
39for a subsequent violation.

P31   1

SEC. 35.  

Section 7597.5 of the Business and Professions Code
2 is amended to read:

3

7597.5.  

(a) A licensee, qualified manager, branch office
4manager, or alarm agent shall not carry or use tear gas or any other
5nonlethal chemical agent in the performance of his or her duties,
6unless he or she has in his or her possession proof of completion
7of a course in the carrying and use of tear gas or other nonlethal
8chemical agent.

9(b) A fine of one hundred dollars ($100) may be assessed for
10the first violation of this section and a fine of two hundred fifty
11dollars ($250) for each subsequent violation.

12

SEC. 36.  

Section 7597.6 of the Business and Professions Code
13 is amended to read:

14

7597.6.  

(a) A licensee, qualified manager, branch office
15manager, or alarm agent shall not carry a pistol, revolver, or other
16firearm capable of being concealed upon the person in a concealed
17manner unless one of the following circumstances apply:

18(1) The person has been issued a permit to carry that firearm in
19a concealed manner by a local law enforcement agency pursuant
20to Section 26150, 26155, 26170, or 26215 of the Penal Code.

21(2) The person is an honorably retired peace officer authorized
22to carry a concealed firearm pursuant to Section 25650 of the Penal
23Code or Article 2 (commencing with Section 25450) of Chapter
242 of Division 5 of Title 4 of Part 6 of the Penal Code.

25(3) The person is a duly appointed peace officer, as defined in
26Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
27of the Penal Code, who is authorized to carry a concealed firearm
28in the course and scope of his or her employment pursuant to
29Article 2 (commencing with Section 25450) of Chapter 2 of
30Division 5 of Title 4 of Part 6 of the Penal Code.

31(b) A fine of one thousand dollars ($1,000) may be assessed for
32each violation of subdivision (a).

33

SEC. 37.  

Section 7598.51 of the Business and Professions
34Code
is amended to read:

35

7598.51.  

(a) An alarm agent shall carry on his or her person,
36while on duty, either a valid and current registration card or a
37temporary application for registration.

38(b) A fine of one hundred fifty dollars ($150) may be assessed
39for each violation of subdivision (a).

P32   1

SEC. 38.  

Section 7598.53 of the Business and Professions
2Code
is amended to read:

3

7598.53.  

An alarm agent who responds to an alarm system
4shall wear a prominently displayed patch or other designation
5which clearly identifies the name of the licensee. An alarm agent
6who carries a deadly weapon while responding to an alarm system
7shall wear a recognizable uniform with a prominently displayed
8patch or other designation which clearly identifies the name of the
9licensee. The uniform must be distinguishable from the uniforms
10worn by local regular law enforcement officers. A violation of this
11section may result in a fine of two hundred fifty dollars ($250) for
12each violation.

13

SEC. 39.  

Section 7599.32 of the Business and Professions
14Code
, as amended by Section 20 of Chapter 291 of the Statutes of
152012, is amended to read:

16

7599.32.  

(a) A licensee shall notify the bureau within 30 days
17of any change of its officers or members required to be named
18pursuant to Section 7593.4 or 7593.5 and of any addition of a new
19partner.

20(b) Applications, on forms prescribed by the director, shall be
21submitted by all new officers, managing members, and partners.
22The director may suspend or revoke a license issued under this
23chapter if the director determines that the new officer, managing
24member, or partner has committed any act which constitutes
25grounds for the denial of a license pursuant to Section 7591.10.

26(c) A notice of warning may be issued for the first violation of
27this section and a fine of five hundred dollars ($500) for each
28subsequent violation.

29(d) This section shall remain in effect only until January 1, 2019,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2019, deletes or extends that date.

32

SEC. 40.  

Section 7599.32 of the Business and Professions
33Code
, as added by Section 21 of Chapter 291 of the Statutes of
342012, is amended to read:

35

7599.32.  

(a) A licensee shall notify the bureau within 30 days
36of any change of its officers required to be named pursuant to
37Section 7593.4 and of any addition of a new partner.

38(b) Applications, on forms prescribed by the director, shall be
39submitted by all new officers and partners. The director may
40suspend or revoke a license issued under this chapter if the director
P33   1determines that the new officer or partner has committed any act
2which constitutes grounds for the denial of a license pursuant to
3Section 7591.10.

4(c) A notice of warning may be issued for the first violation of
5this section and a fine of five hundred dollars ($500) for each
6subsequent violation.

7(d) This section shall become operative on January 1, 2019.

8

SEC. 41.  

Section 7599.33 of the Business and Professions
9Code
is amended to read:

10

7599.33.  

A licensee shall not conduct business, as defined in
11Section 7599.20, from any location other than that location for
12which a license or branch office registration was issued. A violation
13of this section may result in a fine of five hundred dollars ($500)
14for the first violation of this section and a fine of one thousand
15dollars ($1,000) for each subsequent violation.

16

SEC. 42.  

Section 7599.34 of the Business and Professions
17Code
, as amended by Section 22 of Chapter 291 of the Statutes of
182012, is amended to read:

19

7599.34.  

(a) A licensee shall not conduct a business as an
20individual, partnership, limited liability company, or corporation
21unless the licensee holds a valid license issued to that exact same
22individual, partnership, limited liability company, or corporation.
23A violation of this section may result in a fine of five hundred
24dollars ($500) for each violation.

25(b) As a condition of the issuance, reinstatement, reactivation,
26or continued valid use of a license under this chapter, a limited
27liability company shall, in accordance with the provisions of this
28section, maintain a policy or policies of insurance against liability
29imposed on or against it by law for damages arising out of claims
30based upon acts, errors, or omissions arising out of the alarm
31company services it provides.

32(c) The total aggregate limit of liability under the policy or
33policies of insurance required under this section shall be as follows:

34(1) For a limited liability company licensee with five or fewer
35persons named as managing members pursuant to Section 7593.5
36or 7599.32, the aggregate limit shall not be less than one million
37 dollars ($1,000,000).

38(2) For a limited liability company licensee with more than five
39persons named as managing members pursuant to Section 7593.5
40or 7599.32, an additional one hundred thousand dollars ($100,000)
P34   1of insurance shall be obtained for each person named as managing
2members of the licensee except that the maximum amount of
3insurance is not required to exceed five million dollars ($5,000,000)
4in any one designated period, less amounts paid in defending,
5settling, or discharging claims as set forth under this section.

6(d) Prior to the issuance, reinstatement, or reactivation of a
7limited liability company license as provided under this chapter,
8the applicant or licensee shall, in the manner prescribed by the
9bureau, submit the information and documentation required by
10this section and requested by the bureau, demonstrating compliance
11with the financial security requirements specified by this section.

12(e) For any insurance policy secured by a licensee in satisfaction
13of this section, a Certificate of Liability Insurance, signed by an
14authorized agent or employee of the insurer, shall be submitted
15electronically or otherwise to the bureau. The insurer issuing the
16certificate shall report to the bureau the following information for
17any policy required under this section: name, license number,
18policy number, dates that coverage is scheduled to commence and
19lapse, the date and amount of any payment of claims, and
20cancellation date if applicable.

21(f) If a licensee fails to maintain sufficient insurance as required
22by this section, the license is subject to suspension.

23(g) Where the license of a limited liability company is suspended
24pursuant to subdivision (f), each member of the limited liability
25company shall be personally liable up to one million dollars
26($1,000,000) each for damages resulting to third parties in
27connection with the company’s performance, during the period of
28suspension, of any act or contract where a license is required by
29this chapter.

30(h) This section shall remain in effect only until January 1, 2019,
31and as of that date is repealed, unless a later enacted statute, that
32is enacted before January 1, 2019,, deletes or extends that date.

33

SEC. 43.  

Section 7599.34 of the Business and Professions
34Code
, as added by Section 23 of Chapter 291 of the Statutes of
352012, is amended to read:

36

7599.34.  

(a) A licensee shall not conduct a business as an
37individual, partnership, or corporation unless the licensee holds a
38valid license issued to that exact same individual, partnership, or
39corporation. A violation of this section may result in a fine of five
40hundred dollars ($500) for each violation.

P35   1(b) This section shall become operative on January 1, 2019.

2

SEC. 44.  

Section 7599.36 of the Business and Professions
3Code
is amended to read:

4

7599.36.  

(a) Each licensee shall maintain a file or record
5containing the name, address, commencing date of employment,
6and position of each employee, and the date of termination. Those
7files and records shall be retained during the time of employment
8and for a period of not less than two years thereafter, and, together
9with usual payroll records, shall be available for inspection by the
10bureau, and copies thereof and information pertaining thereto or
11contained therein shall be submitted to the bureau upon written
12request. A violation concerning the maintenance of the files or
13records may result in a fine of two hundred fifty dollars ($250) for
14each violation.

15(b) A failure of a licensee to respond to the bureau’s request to
16forward copies of the files or records and information pertaining
17thereto or contained therein within 30 days of the bureau’s request
18may result in a fine of two hundred fifty dollars ($250) for each
19violation.

20

SEC. 45.  

Section 7599.37 of the Business and Professions
21Code
is amended to read:

22

7599.37.  

Each licensee shall maintain an accurate and current
23record of proof of completion of the course of training in the
24exercise of the power to arrest as required by Section 7598.1, by
25each of his or her employees. A violation of this section may result
26in a fine of five hundred dollars ($500) for each violation.

27

SEC. 46.  

Section 7599.38 of the Business and Professions
28Code
is amended to read:

29

7599.38.  

Each licensee shall certify an employee’s completion
30of the course of training in the exercise of power to arrest, or obtain
31proof that the training has been administered by a bureau-approved
32training facility, prior to allowing the employee to respond to an
33alarm system as required by Section 7598.1. A violation of this
34section may result in a fine of five hundred dollars ($500) for each
35violation.

36

SEC. 47.  

Section 7599.40 of the Business and Professions
37Code
is amended to read:

38

7599.40.  

A licensee shall not allow any employee to carry a
39firearm or other deadly weapon without first ascertaining that the
40employee is proficient in the use of each weapon to be carried. A
P36   1current and valid firearm qualification card which indicates the
2specific caliber of the firearm which may be carried shall be
3deemed evidence of proficiency. A firearm qualification permit is
4not valid unless the employee holds a valid, current registration
5card. With respect to other deadly weapons, evidence of proficiency
6 shall include a certificate from a training facility, certifying that
7the employee is proficient in the use of that particular deadly
8weapon. A violation of this section may result in a fine of two
9thousand five hundred dollars ($2,500) for each violation.

10

SEC. 48.  

Section 7599.41 of the Business and Professions
11Code
is amended to read:

12

7599.41.  

A licensee shall maintain an accurate and current
13record of all firearms or other deadly weapons that are in the
14possession of the licensee, or of any employee of the licensee,
15while on duty. The record shall contain the make, model, and serial
16number, or a description of any other deadly weapon, and the name
17of the person who has title of ownership. A violation of this section
18may result in a fine of five hundred dollars ($500) for each
19violation.

20

SEC. 49.  

Section 7599.42 of the Business and Professions
21Code
, as amended by Section 24 of Chapter 291 of the Statutes of
222012, is amended to read:

23

7599.42.  

(a) Within seven days after any violent incident
24involving a dangerous weapon that has been caused by or occurred
25upon a licensee or any officer, partner, managing member, qualified
26manager, or employee of a licensee, while acting within the course
27and scope of his or her employment, and that results in bodily
28injury to any person or death of any person involved in that incident
29or of any discharge of a weapon, excluding any discharge which
30occurs on the range, the licensee or his or her manager shall mail
31or deliver to the chief a detailed report of the incident. The report
32shall describe fully the circumstances surrounding the incident,
33any injuries or damages incurred, the identity of all participants,
34and whether a police investigation was conducted. A violation of
35this section by a licensee or any officer, partner, managing member,
36or qualified manager may result in a fine of one thousand dollars
37($1,000) for the first violation and two thousand dollars ($2,000)
38for each subsequent violation. A violation of this section by an
39employee of a licensee may result in a fine of five hundred dollars
40($500) for each violation.

P37   1(b) This section shall remain in effect only until January 1, 2019,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2019, deletes or extends that date.

4

SEC. 50.  

Section 7599.42 of the Business and Professions
5Code
, as added by Section 25 of Chapter 291 of the Statutes of
62012, is amended to read:

7

7599.42.  

(a) Within seven days after any violent incident
8involving a dangerous weapon, that has been caused by or occurred
9upon a licensee or any officer, partner, qualified manager, or
10employee of a licensee, while acting within the course and scope
11of his or her employment, and that results in bodily injury to any
12person or death of any person involved in that incident or of any
13discharge of a weapon, excluding any discharge which occurs on
14the range, the licensee or his or her manager shall mail or deliver
15to the chief a detailed report of the incident. The report shall
16describe fully the circumstances surrounding the incident, any
17injuries or damages incurred, the identity of all participants, and
18whether a police investigation was conducted. A violation of this
19section by a licensee or any officer, partner, managing member,
20or qualified manager may result in a fine of one thousand dollars
21($1,000) for the first violation and two thousand five hundred
22dollars ($2,500) for each subsequent violation. A violation of this
23section by an employee of a licensee may result in a fine of five
24hundred dollars ($500) for each violation.

25(b) This section shall become operative on January 1, 2019.

26

SEC. 51.  

Section 7599.44 of the Business and Professions
27Code
is amended to read:

28

7599.44.  

Every advertisement by a licensee soliciting or
29advertising business shall contain his or her name and license
30number as they appear in the records of the bureau. A violation of
31this section may result in a fine of five hundred dollars ($500) for
32the first violation and one thousand dollars ($1,000) for each
33subsequent violation.

34

SEC. 52.  

Section 7599.45 of the Business and Professions
35Code
is amended to read:

36

7599.45.  

A licensee or employee of a licensee shall not enter
37any private building or portion thereof, excepting premises open
38to the public, without the consent of the owner or the person in
39legal possession thereof. A violation of this section may result in
40a fine of one hundred dollars ($100) for each violation.

P38   1

SEC. 53.  

Section 7599.54 of the Business and Professions
2Code
is amended to read:

3

7599.54.  

Every agreement, including, but not limited to, lease
4agreements, monitoring agreements, and service agreements,
5including all labor, services, and materials to be provided for the
6installation of an alarm system, shall be in writing. All amendments
7subject to the provisions of this section to an initial agreement
8shall be in writing. Each initial agreement shall contain, but not
9be limited to, the following:

10(a) The name, business address, business telephone number,
11and license number of the licensed alarm company operator and
12the registration number of any alarm agent who solicited or
13negotiated the agreement.

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

16(c) A description of the work to be done, a description of the
17materials to be used, and the agreed consideration for the work.

18(d) A disclosure that alarm company operators are licensed and
19regulated by the Bureau of Security and Investigative Services,
20Department of Consumer Affairs, Sacramento, CA, 95814.

21(e) A description of the alarm system including the major
22components thereof and services to be provided to the purchaser
23once the alarm is installed, including response or monitoring
24services, if any.

25(f) Other matters agreed to by the parties of the contract. The
26agreement shall be legible and shall be in a form as to clearly
27 describe any other document which is to be incorporated into the
28contract, and, before any work is done, the client shall be furnished
29with a copy of the written agreement signed by the licensee.

30(g) A statement setting forth that upon completion of the
31installation of the alarm system, the alarm company shall
32thoroughly instruct the purchaser in the proper use of the alarm
33system.

34(h) In the event a mechanic’s lien is to be utilized, a
35notice-to-owner statement which shall describe, in nontechnical
36language and in a clear and coherent manner using words with
37common and everyday meaning, the pertinent provisions of this
38state’s mechanics’ lien laws and the rights and responsibilities of
39an owner of property and a contractor thereunder, including the
40provisions relating to the filing of a contract concerning a work of
P39   1improvement with the county recorder and the recording in the
2office of a contractor’s payment bond for private work.

3(i) For agreements or renewals entered into on or after January
41, 2016, if the agreement contains an automatic renewal provision,
5the agreement or renewal shall include a separate and clear
6disclosure, prior to any other terms and conditions of the
7agreement, advising the consumer that the agreement he or she is
8entering into contains an automatic renewal provision. The
9disclosure shall specify that if the consumer fails to provide
10notification of nonrenewal, as required in the agreement, it will
11result in the automatic renewal of the agreement and shall include
12the period of time of the renewal term. The disclosure shall include
13an acknowledgement of the notification to be signed and dated by
14the consumer. An automatic renewal provision shall be void and
15invalid unless the acknowledgment includes an original signature
16of the consumer.

17(j) In addition to the above, every initial residential sales and
18lease agreement, the total cost which over the time period fixed
19by the agreement exceeds two hundred fifty dollars ($250),
20including the cost of all labor, service, or material to be provided
21by the licensee for the installation, shall include, but not be limited
22to, the following:

23(1) A schedule of payments showing the amount of each
24payment as a sum in dollars and cents. This schedule of payments
25shall be referenced to the amount of work for services to be
26performed or to any materials or equipment to be supplied.

27(2) If the payment schedule contained in the agreement provides
28for a downpayment to be paid to the licensee by the owner or the
29tenant before commencement of the work, that downpayment shall
30not exceed one thousand dollars ($1,000) or 10 percent of the
31contract price, excluding finance charges, whichever is the lesser.

32(3) In no event shall the payment schedule provide that the
33licensee receive, nor shall the licensee actually receive, payment
34in excess of 100 percent of the value of the work performed on
35the project at any time, excluding finance charges, except that the
36licensee may receive an initial downpayment authorized by
37paragraph (2). A failure by the licensee, without legal excuse, to
38substantially commence work within 20 days of the approximate
39date specified in the contract when work is to commence, shall
40postpone the next succeeding payment to the licensee for that
P40   1period of time equivalent to the time between when substantial
2commencement was to have occurred and when it did occur.

3(4) A notice-to-owner statement which shall describe, in
4 nontechnical language and in a clear and coherent manner using
5words with common and everyday meaning, the pertinent
6provisions of this state’s mechanics’ lien laws and the rights and
7responsibilities of an owner of property and a contractor thereunder,
8including the provisions relating to the filing of a contract
9concerning a work of improvement with the county recorder and
10the recording in the office of a contractor’s payment bond for
11private work.

12(5) A description of what constitutes substantial commencement
13of work pursuant to the contract.

14(6) A disclosure that failure by the licensee, without legal
15excuse, to substantially commence work within 20 days from the
16approximate date specified in the agreement when the work will
17begin is a violation of the Alarm Company Act.

18(7) A disclosure informing the buyer of any potential permit
19fees which may be required by local jurisdictions concerning the
20monitoring of an existing alarm system.

21(8) This section shall not be construed to prohibit the parties to
22a residential alarm system sale contract from agreeing to a contract
23or account subject to Chapter 1 (commencing with Section 1801)
24of Title 2 of Part 4 of Division 3 of the Civil Code.

25(k)  A violation of this section or failure to commence work
26pursuant to paragraph (6) of subdivision (j) may result in a fine of
27one hundred dollars ($100) for the first violation and a fine of five
28hundred dollars ($500) for each subsequent violation.

29

SEC. 54.  

Section 7599.59 of the Business and Professions
30Code
is amended to read:

31

7599.59.  

The director may assess administrative fines of fifty
32dollars ($50) against any licensee, qualified certificate holder,
33firearms qualification card holder, or registrant for each violation
34for failure to notify the bureau within 30 days of any change of
35residence or business address.

36

SEC. 55.  

Article 15 (commencing with Section 7599.80) is
37added to Chapter 11.6 of Division 3 of the Business and Professions
38Code
, to read:

 

P41   1Article 15.  Review
2

 

3

7599.80.  

Notwithstanding any other law, the powers and duties
4of the bureau, as set forth in this chapter, shall be subject to review
5by the appropriate policy committees of the Legislature. The review
6shall be performed as if this chapter were scheduled to be repealed
7as of January 1, 2020.

end delete


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