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 Bill No. 468

Introduced by begin delete Senator end delete begin insert Senators Allen and end 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 delete Hill end delete begin insert Allen end insert . begin delete Bureau of Security and Investigative Services: licensees. end delete begin insert Health 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 delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 32132.9 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 32132.9. end insert   

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

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

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

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and as of that date is repealed, unless a later enacted statute, that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

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 32132.95 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 32132.95. end insert   

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

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

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

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

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

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

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

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

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

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

end insert begin insert

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

end insert

begin delete

SECTION 1.  

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

 

Article 10.  Review

 

6981.  

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

SEC. 2.  

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

7507.6.  

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

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

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

SEC. 3.  

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

7508.1.  

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

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

(b) Using any identification to indicate registration as a
repossessor, other than the bureau-issued registration card, except
an employer identification card issued by the repossession agency
which has met bureau approval, or a badge, cap insignia, or jacket
patch as provided in Section 7508.8. A bureau-issued registration
card shall be carried by those individuals specified by Section
7506.3, and shall be shown on demand to any bureau employee
or law enforcement officer. The fine shall be one hundred dollars
($100) for each violation.

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

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

SEC. 4.  

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

7508.2.  

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

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

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

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

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

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

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

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

SEC. 5.  

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

7508.3.  

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

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

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

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

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

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

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

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

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

(i) The use of any deceptive forms.

SEC. 6.  

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

7508.4.  

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

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

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

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

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

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

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

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

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

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

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

(k) Failing to maintain an accurate record and accounting of
secure temporary registration forms. The qualified certificate holder
shall be fined two hundred fifty dollars ($250) for the first
violation, fined an amount not to exceed five hundred dollars
($500) for the second violation, and fined an amount not to exceed
one thousand dollars ($1,000) plus a one-year suspension of the
privilege to issue temporary registrations pursuant to Section
7506.9 for the third and subsequent violations.

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

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

SEC. 7.  

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

7508.6.  

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

SEC. 8.  

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

 

Article 12.  Review

 

7511.5.  

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

SEC. 9.  

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

7542.  

(a) A licensee and qualified manager who in the course
of his or her employment or business carries a deadly weapon shall
complete a course of training in the exercise of the powers to arrest
as specified in Section 7583.7 and a course of training in the
carrying and use of firearms as specified in Article 4 (commencing
with Section 7583) of Chapter 11.5. A licensee or qualified
manager shall not carry or use a firearm unless he or she has met
the requirements of subdivisions (a) to (e), inclusive, and
subdivision (g) of Section 7583.23, subdivisions (a) to (d),
inclusive, of Section 7583.24, and Section 7583.28 and has in his
or her possession a valid firearms qualification card. A licensee
or qualified manager who possesses a valid firearms qualification
card shall comply with, and be subject to subdivisions (a) to (d),
inclusive, of Sections 7583.25, and Sections 7583.26, 7583.27,
7583.31, 7583.32, and 7583.37, except that paragraph (5) of
Section 7583.32 shall not apply. A licensee or qualified manager
who possesses a valid firearms qualification card may carry a
firearm capable of being concealed upon the person in a concealed
manner if he or she complies with applicable provisions set forth
in Chapter 4 (commencing with Section 26150) of Division 5 of
Title 4 of Part 6 of the Penal Code.

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

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

SEC. 10.  

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

7563.  

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

SEC. 11.  

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

7566.  

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

SEC. 12.  

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

 

Article 8.  Review

 

7573.5.  

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

SEC. 13.  

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

 

Article 6.  Review

 

7576.  

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

SEC. 14.  

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

7583.4.  

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

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

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

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

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

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

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

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

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

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

SEC. 15.  

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

7583.6.  

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

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

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

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

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

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

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

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

SEC. 16.  

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

7583.12.  

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

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

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

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

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

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

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

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

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

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

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

SEC. 17.  

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

7583.22.  

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

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

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

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

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

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

SEC. 18.  

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

7583.23.  

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

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

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

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

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

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

(f) Beginning July 1, 2017, the applicant has been found 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, pursuant to Section 7583.47.

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

SEC. 19.  

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

7583.24.  

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

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

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

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

(e) Beginning July 1, 2017, the bureau shall not issue a firearm
permit if the applicant has not been found 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, pursuant to Section 7583.47.

SEC. 20.  

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

7583.25.  

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

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

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

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

(e) Beginning July 1, 2017, the bureau shall not renew a firearm
permit if the applicant has not been found 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, pursuant to Section 7583.47.

SEC. 21.  

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

7583.29.  

If a firearms permit is denied, the denial of the permit
shall be in writing and shall describe the basis for the denial. The
denial shall inform the applicant that if he or she desires a review
by a disciplinary review committee to contest the denial, the review
shall be requested of the director within 30 days following notice
of the issuance of the denial. However, no review or hearing shall
be granted to an individual who is otherwise prohibited by law
from carrying a firearm or, beginning July 1, 2017, the applicant
has not been found 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, pursuant to Section
7583.47.

SEC. 22.  

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

7583.32.  

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

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

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

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

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

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

(5) Beginning July 1, 2017, the applicant has been found 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, pursuant to Section 7583.47.

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

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

SEC. 23.  

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

7583.33.  

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

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

SEC. 24.  

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

7583.47.  

(a) Beginning July 1, 2017, as a condition for the
issuance or renewal of a firearms permit, the applicant shall
complete a psychological assessment to determine whether or not
the applicant, at 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. If an applicant fails to meet the standards of the initial
assessment, the bureau shall provide a secondary assessment option
pursuant to this section.

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

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

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

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

(d) The bureau shall contract with a third-party vendor to
administer a psychological assessment program to determine the
applicant’s capability, as the point in time of the assessment, 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.

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

(2) If the results of the applicant’s psychological assessment
indicate that he or she 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, the
bureau may consider the results as demonstration of the applicant’s
psychological capability of exercising appropriate judgment,
restraint, and self-control for the purposes of the issuance of a
firearms permit.

(f) If the psychological assessment is inconclusive or determines
that the applicant may not be 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, and the
applicant desires to continue the firearms permit application
process, the applicant shall complete a psychological evaluation.
The psychological evaluation shall be administered by a California
licensed psychologist of the applicant’s choosing, excluding any
psychologist with an existing personal or professional relationship
with the applicant. The California licensed psychologist, or his or
her designee, shall conduct an inperson interview and may employ
whatever psychological measuring instruments or techniques
deemed necessary to render a professional opinion. The California
licensed psychologist shall, within 15 days of completing the
psychological evaluation, provide the bureau with his or her written
conclusion as to whether or not the applicant 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 at the point in time of the evaluation. Included in the
written psychological evaluation shall be the assessment measures
used and the reason for their inclusion. The licensed psychologist’s
written conclusion shall be provided to the bureau on a form
prescribed by the bureau. The applicant shall bear the costs of the
psychological evaluation. If the applicant seeks employment with,
or is employed by, a licensee that has an established and approved
process for the Minnesota Multiphasic Personality Inventory
(MMPI), the Institute for Personality and Ability Testing, Inc.,
(IPAT), or other psychological evaluation, the applicant may
choose to submit the response data to a licensed psychologist
chosen by the licensee. A licensee employing this process may
bear the costs of the evaluation.

(1) If the conclusions of the applicant’s evaluation by a licensed
psychologist indicate that he or she 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, at the point in time of the evaluation, the bureau may
consider the conclusions as a demonstration of the applicant’s
psychological capability in exercising appropriate judgment,
restraint, and self-control for the purposes of the issuance of a
firearms permit.

(2) The bureau shall not issue or renew 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.

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

(h) An applicant who is denied a firearms permit by the bureau
due to being found incapable, at the time of assessment or
evaluation, 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, shall not reapply for a firearms
permit for one year from the date of being denied a firearms permit
by the bureau.

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

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

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

(2) A federal law enforcement officer.

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

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

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

SEC. 25.  

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

7585.4.1.  

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

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

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

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

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

SEC. 26.  

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

7587.8.  

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

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

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

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

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

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

SEC. 27.  

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

7587.9.  

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

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

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

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

SEC. 28.  

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

7587.10.  

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

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

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

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

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

SEC. 29.  

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

7587.12.  

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

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

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

(c) Violations of paragraph (6) of subdivision (a) of Section
7585.19; five hundred dollars ($500) for each hour shortened.

(d) Violations of paragraph (4) of subdivision (a) of Section
7585.19; five hundred dollars ($500) for each violation.

(e) Violations of paragraph (5) of subdivision (a) of Section
7585.19; five hundred dollars ($500) for every hour the course has
been shortened.

(f) Violations of paragraph (9) of subdivision (a) of Section
7585.19; one thousand dollars ($1,000) for each violation.

SEC. 30.  

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

7587.14.  

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

SEC. 31.  

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

 

Article 9.  Review

 

7588.8.  

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

SEC. 32.  

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

7597.1.  

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

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

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

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

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

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

SEC. 33.  

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

7597.2.  

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

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

SEC. 34.  

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

7597.3.  

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

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

(2) Brandishing a weapon.

(3) Drawing a weapon without proper cause.

(4) Provoking a shooting incident without cause.

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

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

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

SEC. 35.  

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

7597.5.  

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

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

SEC. 36.  

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

7597.6.  

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

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

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

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

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

SEC. 37.  

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

7598.51.  

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

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

SEC. 38.  

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

7598.53.  

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

SEC. 39.  

Section 7599.32 of the Business and Professions
Code, as amended by Section 20 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.32.  

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

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

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

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

SEC. 40.  

Section 7599.32 of the Business and Professions
Code, as added by Section 21 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.32.  

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

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

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

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

SEC. 41.  

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

7599.33.  

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

SEC. 42.  

Section 7599.34 of the Business and Professions
Code, as amended by Section 22 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.34.  

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

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

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

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

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

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

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

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

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

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

SEC. 43.  

Section 7599.34 of the Business and Professions
Code, as added by Section 23 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.34.  

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

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

SEC. 44.  

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

7599.36.  

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

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

SEC. 45.  

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

7599.37.  

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

SEC. 46.  

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

7599.38.  

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

SEC. 47.  

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

7599.40.  

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

SEC. 48.  

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

7599.41.  

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

SEC. 49.  

Section 7599.42 of the Business and Professions
Code, as amended by Section 24 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.42.  

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

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

SEC. 50.  

Section 7599.42 of the Business and Professions
Code, as added by Section 25 of Chapter 291 of the Statutes of
2012, is amended to read:

7599.42.  

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

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

SEC. 51.  

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

7599.44.  

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

SEC. 52.  

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

7599.45.  

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

SEC. 53.  

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

7599.54.  

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

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

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

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

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

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

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

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

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

(i) For agreements or renewals entered into on or after January
1, 2016, if the agreement contains an automatic renewal provision,
the agreement or renewal shall include a separate and clear
disclosure, prior to any other terms and conditions of the
agreement, advising the consumer that the agreement he or she is
entering into contains an automatic renewal provision. The
disclosure shall specify that if the consumer fails to provide
notification of nonrenewal, as required in the agreement, it will
result in the automatic renewal of the agreement and shall include
the period of time of the renewal term. The disclosure shall include
an acknowledgement of the notification to be signed and dated by
the consumer. An automatic renewal provision shall be void and
invalid unless the acknowledgment includes an original signature
of the consumer.

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

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

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

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

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

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

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

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

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

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

SEC. 54.  

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

7599.59.  

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

SEC. 55.  

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

 

Article 15.  Review

 

7599.80.  

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

end delete