Amended in Assembly August 15, 2016

Amended in Assembly June 20, 2016

Amended in Senate April 12, 2016

Senate BillNo. 1196


Introduced by Senator Hill

(Principalbegin delete coauthors: Assembly Members Brough andend deletebegin insert coauthor: Assembly Memberend insert Salas)

February 18, 2016


An act to amend Sectionsbegin insert 205, 7507.6, 7508.1, 7508.2, 7508.3, 7508.4, 7508.6, 7520.3, 7525.1, 7542, 7563, 7566, 7570, 7574.21, 7583.3, 7583.4, 7583.6, 7583.9, 7583.12, 7583.22, 7583.23, 7583.24, 7583.25, 7583.27, 7583.29, 7583.32, 7583.33, 7583.37, 7583.39, 7587.8, 7587.9, 7587.10, 7587.12, 7587.14, 7587.15, 7588, 7591.11, 7596.3, 7596.4, 7596.8, 7596.83, 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, 7599.59,end insert 10050, 10177, 11301, 11320, 11328, and 11340begin delete ofend deletebegin insert of, to amend, repeal, and add Section 7533.5 of, to add Sections 7583.47 and 7585.4.1 to, and 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,end insert the Business and Professions Code, relating tobegin delete real estate.end deletebegin insert professions and vocations.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1196, as amended, Hill. begin insertProfessions and vocations: end insertBureau of Realbegin delete Estate:end deletebegin insert Estate,end insert Bureau of Real Estatebegin delete Appraisers.end deletebegin insert Appraisers, and Bureau of Security and Investigative Services.end insert

begin insert

(1) Existing law provides for the regulation, by the Bureau of Security and Investigative Services within the Department of Consumer Affairs, 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. Existing law prescribes various fees and fines in connection with the regulation of these professions and vocations and provides for the deposit of the majority of these fees and fines into the Private Security Services Fund. Existing law also establishes the Professions and Vocations Fund, which consists of certain funds. Existing law provides that fine, penalty, and cost recovery moneys in any fund within the Professions and Vocations Fund are available only upon appropriation by the Legislature.

end insert
begin insert

This bill would subject the bureau to review by the appropriate policy committees of the Legislature. The bill would also provide that the Private Security Services Fund is a fund in the Professions and Vocations Fund.

end insert
begin insert

(2) 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.

end insert
begin insert

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.

end insert
begin insert

(3) The Private Investigator Act provides for the licensure and regulation of private investigators by the Bureau of Security and Investigative Services. Until January 1, 2018, the act provides for the licensure of limited liability companies under the act and requires the application for licensure of a limited liability company to be subscribed, verified, and signed by a duly authorized member of the applicant under penalty of perjury. The act also requires a licensee to notify the Bureau of Security and Investigative Services within 30 days of any change in its corporate officers or any addition of a new partner.

end insert
begin insert

This bill would additionally require the application for licensure of a limited liability company to be subscribed, verified, and signed by a the qualified manager of the applicant. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. The bill, among other things, would also require a licensee to notify the bureau within 30 days of any change in members required to be named in a corporation’s or limited liability corporation’s application for licensure.

end insert
begin insert

(4) The Private Investigator Act 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.

end insert
begin insert

This bill would authorize a licensed private investigator and qualified manager who possesses a valid firearms qualification card to also carry a concealed firearm if he or she satisfies specified conditions. The bill would also require, if a firearms qualification card is denied, the denial to be in writing, include the basis for the denial, and inform the applicant of his or her right to contest the denial.

end insert
begin insert

(5) 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 include specified items.

end insert
begin insert

This bill would additionally require initial agreements entered into on or after January 1, 2017, that contain an automatic renewal provision for a period of more than one month to disclose and describe the automatic renewal provision, as provided.

end insert
begin insert

(6) 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 and makes a violation of its provisions a crime. Under existing law, a person required to be registered as a security guard must report to his or her employer, within 24 hours of the incident, the circumstances surrounding the discharge of any firearm in which he or she is involved while acting within the course and scope of his or her employment. Existing law also requires a person registered as a security or patrolperson to deliver to the Director of Consumer Affairs and to local law enforcement a written report describing the circumstances surrounding the discharge of a firearm in which he or she was involved while acting within the course of his or her employment, within 7 days of the incident.

end insert
begin insert

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

end insert
begin insert

(7) Existing law requires security guards, security patrolpersons, alarm company operators, and other specified persons to complete specified courses, acquire specified licenses, and be subject to specified provisions relating to their duties and relating to the carrying and use of a firearm or baton, as provided.

end insert
begin insert

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

end insert
begin insert

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

end insert
begin insert

This bill would provide for the association of a firearms permit with the license or registration of the applicant, as specified. The bill would require an applicant for a firearms permit who is a registered security guard to complete a specified 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 security guard duties, as provided. The bill would prohibit the bureau from issuing or renewing a firearm permit to an applicant who has been found incapable of exercising appropriate judgment, restraint, and self-control pursuant to the assessment in the past 12 months, as specified. The bill would authorize the appeal of the denial of a firearms permit or firearms qualification card on the basis of the results of the assessment. The bill would authorize the bureau to seek an emergency order against the holder of a firearms permit if, after investigation relating to specific events, the bureau determines that the holder of the permit presents an undue hazard to public safety. The bill would prohibit licensees or registrants with firearms permits from carrying or using a firearm while performing duties not related to the qualifying license or registration to which the bureau associated the licensee’s or registrant’s firearms permit.

end insert
begin insert

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

end insert
begin insert

This bill would require the bureau, within 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 insert
begin insert

(10) 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 insert
begin insert

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.

end insert
begin insert

(11) The Private Investigator Act, the Private Security Services Act, and the Alarm Company Act require specified licensees and applicants for licensure to, as a condition of the issuance, reinstatement, reactivation, or continued valid use of a license, maintain policies of insurance against liability for damages arising out of activities for which licensure is required pursuant to those acts, as specified.

end insert
begin insert

This bill would require the insurer of those policies of insurance to list the Bureau of Security and Investigative Services as the certificate holder for the purposes of receiving notifications related to the policy’s status. The bill, until January 1, 2019, would provide for the automatic suspension, after 30-days’ written notice, of a licensee under the Alarm Company Act for failure to maintain sufficient insurance or failure to provide proof of required insurance upon request by the bureau, as specified.

end insert
begin delete

Existing

end delete

begin insert(12)end insertbegin insertend insertbegin insertExistingend insert law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and real estate salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate within the Department of Consumer Affairs. That law authorizes the commissioner to suspend or revoke the license of a real estate licensee if the licensee has entered a plea of guilty or nolo contendere to, or been found guilty of, or been convicted of, a felony, or a crime substantially related to the qualifications, functions, or duties of a real estate licensee, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal, or other conditions are met.

Existing law, the Real Estate Appraisers’ Licensing and Certification Law, provides for the licensure, certification, and regulation of real estate appraisers and appraisal management companies by the Bureau of Real Estate Appraisers within the Department of Consumer Affairs, which is headed by the Chief of the Bureau of Real Estate Appraisers. That law requires the chief to adopt regulations governing the process and the procedure of applying for a real estate appraiser’s license and requires these regulations to include, among others, necessary experience or education and the submittal of an applicant’s social security number. To substantiate appraisal experience or to facilitate investigations, existing law requiresbegin delete thatend delete licensees, applicants, and persons acting in a capacity that requires a license to submit copies of appraisals or any other work product, as specified, and all supporting documentation.

A willful violation of these laws is a crime.

This bill would subject the Bureau of Real Estate and the Bureau of Real Estate Appraisers to review by the appropriate policy committees of the Legislature, as specified. The bill wouldbegin delete furtherend delete authorize thebegin delete Real Estate Commissionerend deletebegin insert Bureau of Real Estate, upon receipt of the certified copy of the plea and after a hearing,end insert to suspend the license of a real estate licenseebegin delete upon the entry of a guilty plea by the licensee to any of the crimes described aboveend deletebegin insert until the time for appeal has elapsedend insert and would require the commissioner to rescind the suspension if the plea is withdrawn. The bill would further require the Chief of the Bureau of Real Estate Appraisers to require, as part of the educational requirements for applicants for licensure, the completion of a course on state and federal laws regulating the appraisal profession, as specified, and would additionally authorize the submittal of an applicant’s individual taxpayer identification number. The bill would additionally require those licensees, applicants, and persons acting in a capacity that requires a license to submit copies of engagement letters. Because the willful failure to submit those engagement letters would be a crime, the bill would impose a state-mandated local program.

begin delete

The

end delete

begin insert(13)end insertbegin insertend insertbegin insertTheend insert 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.

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

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

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

P7    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 205 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
2as added by Chapter 510 of the Statutes of 2015, is amended to
3read:end insert

4

205.  

(a) There is in the State Treasury the Professions and
5Vocations Fund. The fund shall consist of the following special
6funds:

7(1) Accountancy Fund.

8(2) California Architects Board Fund.

9(3) Athletic Commission Fund.

10(4) Barbering and Cosmetology Contingent Fund.

11(5) Cemetery and Funeral Fund.

12(6) Contractors’ License Fund.

13(7) State Dentistry Fund.

14(8) Guide Dogs for the Blind Fund.

15(9) Home Furnishings and Thermal Insulation Fund.

16(10) California Architects Board-Landscape Architects Fund.

17(11) Contingent Fund of the Medical Board of California.

18(12) Optometry Fund.

19(13) Pharmacy Board Contingent Fund.

20(14) Physical Therapy Fund.

21(15) Private Investigator Fund.

begin insert

22
(16) Private Security Services Fund.

end insert
begin delete

23(16)

end delete

24begin insert(17)end insert Professional Engineer’s, Land Surveyor’s, and Geologist’s
25Fund.

begin delete

26(17)

end delete

27begin insert(18)end insert Consumer Affairs Fund.

begin delete

28(18)

end delete

29begin insert(19)end insert Behavioral Sciences Fund.

begin delete

30(19)

end delete

P8    1begin insert(20)end insert Licensed Midwifery Fund.

begin delete

2(20)

end delete

3begin insert(21)end insert Court Reporters’ Fund.

begin delete

4(21)

end delete

5begin insert(22)end insert Veterinary Medical Board Contingent Fund.

begin delete

6(22)

end delete

7begin insert(23)end insert Vocational Nursing and Psychiatric Technicians Fund.

begin delete

8(23)

end delete

9begin insert(24)end insert Electronic and Appliance Repair Fund.

begin delete

10(24)

end delete

11begin insert(25)end insert Dispensing Opticians Fund.

begin delete

12(25)

end delete

13begin insert(26)end insert Acupuncture Fund.

begin delete

14(26)

end delete

15begin insert(27)end insert Physician Assistant Fund.

begin delete

16(27)

end delete

17begin insert(28)end insert Board of Podiatric Medicine Fund.

begin delete

18(28)

end delete

19begin insert(29)end insert Psychology Fund.

begin delete

20(29)

end delete

21begin insert(30)end insert Respiratory Care Fund.

begin delete

22(30)

end delete

23begin insert(31)end insert Speech-Language Pathology and Audiology and Hearing
24 Aid Dispensers Fund.

begin delete

25(31)

end delete

26begin insert(32)end insert Board of Registered Nursing Fund.

begin delete

27(32)

end delete

28begin insert(33)end insert Animal Health Technician Examining Committee Fund.

begin delete

29(33)

end delete

30begin insert(34)end insert State Dental Hygiene Fund.

begin delete

31(34)

end delete

32begin insert(35)end insert State Dental Assistant Fund.

begin delete

33(35)

end delete

34begin insert(36)end insert Structural Pest Control Fund.

begin delete

35(36)

end delete

36begin insert(37)end insert Structural Pest Control Eradication and Enforcement Fund.

begin delete

37(37)

end delete

38begin insert(38)end insert Structural Pest Control Research Fund.

39(b) For accounting and recordkeeping purposes, the Professions
40and Vocations Fund shall be deemed to be a single special fund,
P9    1and each of the several special funds therein shall constitute and
2be deemed to be a separate account in the Professions and
3Vocations Fund. Each account or fund shall be available for
4expenditure only for the purposes as are now or may hereafter be
5provided by law.

6(c) This section shall become operative on July 1, 2016.

7begin insert

begin insertSEC. 2.end insert  

end insert

begin insertArticle 10 (commencing with Section 6981) is added
8to Chapter 8.5 of Division 3 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert,
9to read:end insert

begin insert

10 

11Article begin insert10.end insert  Review
12

 

13

begin insert6981.end insert  

Notwithstanding any other law, the powers and duties
14of the bureau, as set forth in this chapter, shall be subject to review
15by the appropriate policy committees of the Legislature. The review
16shall be performed as if this chapter were scheduled to be repealed
17as of January 1, 2020.

end insert
18begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 7507.6 of the end insertbegin insertBusiness and Professions Codeend insert
19
begin insert is amended to read:end insert

20

7507.6.  

(a) Within seven days after a violent act has occurred
21involving a licensee, or any officer, partner, qualified certificate
22holder,begin delete registrantend deletebegin insert registrant,end insert or employee of a licensee, while acting
23within the course and scope of his or her employment or contract,
24that results in a police report or bodily harm or bodily injury, the
25licensee or the licensee’s qualified certificate holder or registrant,
26shall mail or deliver to the chief a notice concerning the incident
27upon a form provided by the bureau.

28(b) Within seven days after the occurrence of a violent act or a
29threatened violent act involving a licensee, or any officer, partner,
30qualified certificate holder, registrant, or employee of abegin delete licenseeend delete
31begin insert licensee,end insert while acting within the course and scope of his or her
32employment or contract, that results in a police report or bodily
33harm or bodily injury, the licensee or the licensee’s qualified
34certificate holder or registrant shall send by certified mail, return
35receipt requested, a notice containing information about the
36incident to the person or individual who made the assignment. If
37the assignor is not the legal owner, the assignor shall notify the
38legal owner of the contents of the notice.

39(c) A licensee, qualified certificate holder, or registrant may
40send the notice set forth in subdivision (b) for a violent act or
P10   1threatened violent act even if a police report is not made or no
2bodily harm or bodily injury occurs. Any notice of a threatened
3violent act provided pursuant to subdivision (b) may only be used
4to notify a subsequent assignee and not for any collateral purpose.
5Nothing in this subdivision or subdivision (b) shall be construed
6to provide immunity against any claim for defamation.

7begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 7508.1 of the end insertbegin insertBusiness and Professions Codeend insert
8
begin insert is amended to read:end insert

9

7508.1.  

The director may assess administrative fines for the
10following prohibited acts:

11(a) Knowingly making any false report to his or her employer
12or client for whom information was being obtained. The fine shall
13be one hundred dollars ($100) for the firstbegin delete violation,end deletebegin insert violationend insert and
14five hundred dollars ($500) for each violation thereafter.

15(b) Using any identification to indicate registration as a
16repossessor, other than the bureau-issued registration card, except
17an employer identification card issued by the repossession agency
18which has met bureau approval, or a badge, cap insignia, or jacket
19patch as provided in Section 7508.8. A bureau-issued registration
20card shall be carried by those individuals specified by Section
217506.3, and shall be shown on demand to any bureau employee
22or law enforcement officer. The fine shall bebegin delete twenty-five dollars
23($25)end delete
begin insert one hundred dollars ($100)end insert for each violation.

24(c) Usingbegin delete an aliasend deletebegin insert end insertbegin inserta business name other than the name under
25which the license is issuedend insert
in connection with the official activities
26of the licensee’s business.begin delete A notice of warning shall be issued for
27the first violation. Thereafter the fine shall be twenty-five dollars
28($25) for each violation.end delete
begin insert The bureau shall issue a notice of warning
29for a first violation, a fine of one hundred dollars ($100) for the
30second violation, and a fine not to exceed two hundred fifty dollars
31($250) for each violation thereafter.end insert

32(d) Appearing as an assignee party in any court proceeding
33involving claim and delivery, replevin, or other possessory court
34action, action to foreclose a chattel mortgage, mechanic’s lien,
35materialman’s lien, or any other lien. This section shall not prohibit
36a licensee from appearing as a defendant in any of the preceding
37actions. The fine shall be one hundred dollars ($100) for each
38violation.

39begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 7508.2 of the end insertbegin insertBusiness and Professions Codeend insert
40
begin insert is amended to read:end insert

P11   1

7508.2.  

The director may assess administrative fines for any
2of the following prohibited acts:

3(a) Recovering collateral or making any money demand in lieu
4thereof, including, but not limited to, collateral registered under
5the Vehicle Code, that has been sold under a security agreement
6before a signed or telegraphic authorization has been received from
7the legal owner, debtor, lienholder, lessor, or repossession agency
8acting on behalf of the legal owner, debtor, lienholder, or lessor
9of the collateral. A telephonic assignment is acceptable if the legal
10owner, debtor, lienholder, lessor, or repossession agency acting
11on behalf of the legal owner, debtor, lienholder, or lessor is known
12to the licensee and a written authorization from the legal owner,
13debtor, lienholder, lessor, or repossession agency acting on behalf
14of the legal owner, debtor, lienholder, or lessor is received by the
15licensee within 10 working days or a request by the licensee for a
16written authorization from the legal owner, debtor, lienholder,
17lessor, or repossession agency acting on behalf of the legal owner,
18debtor, lienholder, or lessor is made in writing within 10 working
19days. Referrals of assignments from one licensee to another
20licensee are acceptable. The referral of an assignment shall be
21made under the same terms and conditions as in the original
22assignment. The fine shall bebegin delete twenty-five dollars ($25)end deletebegin insert one hundred
23dollars ($100)end insert
forbegin delete each ofend delete the firstbegin delete five violations and one hundred
24dollars ($100)end delete
begin insert violation and five hundred dollars ($500)end insert for each
25violation thereafter, per audit.

26(b) Using collateral or personal effects, which have been
27recovered, for the personal benefit of a licensee, or officer, partner,
28manager, registrant, or employee of a licensee. The fine shall be
29begin delete twenty-five dollars ($25)end deletebegin insert two hundred fifty dollars ($250)end insert for the
30first violation andbegin delete one hundred dollars ($100)end deletebegin insert a fine not to exceed
31one thousand dollars ($1,000)end insert
for each violation thereafter. This
32subdivision does not apply to personal effects disposed of pursuant
33to subdivision (c) of Section 7507.9. Nothing in this subdivision
34prohibits the using or taking of personal property connected,
35adjoined, or affixed to the collateral through an unbroken sequence
36if that use or taking is reasonably necessary to effectuate the
37recovery in a safe manner or to protect the collateral or personal
38effects.

39(c) Selling collateral recovered under this chapter, or making a
40demand for payment in lieu of repossession. The fine shall be two
P12   1hundred fifty dollars ($250) for the first violation andbegin insert a fine not
2to exceedend insert
one thousand dollars ($1,000) for each subsequent
3violation.

4(d) Unlawfully entering any private building or secured area
5without the consent of the owner, or of the person in legal
6possession thereof, at the time of repossession. The fine shall be
7five hundred dollars ($500) for each violation.

8(e) Committing unlawful assault or battery on anotherbegin delete person.end delete
9begin insert person during the course of a repossession.end insert The fine shallbegin delete beend deletebegin insert not
10exceed two thousandend insert
five hundred dollarsbegin delete ($500)end deletebegin insert ($2,500)end insert for each
11violation.

12(f) Falsificationbegin delete or alterationend delete of an inventory. The fine shall be
13
begin delete twenty-five dollars ($25) for each violation.end deletebegin insert one hundred dollars
14($100) for the first violation and two hundred fifty dollars ($250)
15for each violation thereafter.end insert

16(g) Soliciting from the legal owner the recovery of specific
17collateral registered under the Vehicle Code or under the motor
18vehicle licensing laws of other states after the collateral has been
19seen or located on a public street or on public or private property
20without divulging the location of the vehicle. The fine shall be one
21hundred dollars ($100) for the first violation and two hundred fifty
22dollars ($250) for each violation thereafter.

23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 7508.3 of the end insertbegin insertBusiness and Professions Codeend insert
24
begin insert is amended to read:end insert

25

7508.3.  

A licensee, or any of his or her registrants or
26employees, or a qualified certificate holder,begin delete shall beend deletebegin insert isend insert prohibited
27from using any false or misleading representation during the course
28of recovery ofbegin delete collateral and may be issuedend deletebegin insert collateral. The bureau
29shall issueend insert
a notice of warning forbegin delete the first violation; assessed a
30twenty-five dollar ($25) fine for the second violation; and assessed
31a one hundred dollar ($100) fineend delete
begin insert a first violation, a fine of one
32hundred dollars ($100) for the second violation, and a fine not to
33exceed two hundred fifty dollars ($250)end insert
for any subsequent
34violation of any of the following:

35(a) The false representation or implication that the individual
36is vouched for, bonded by, or affiliated with the United States or
37with any state, county, city, or city and county, including the use
38of any badge, uniform, or facsimile thereof.

39(b) The false representation or implication that any individual
40is an attorney or that any communication is from any attorney.

P13   1(c) The representation or implication by a repossession agency
2or its registrants or employees that nonpayment of any debt will
3result in the arrest or imprisonment of any person or the seizure,
4garnishment, attachment, or sale of any property or wages of any
5person, unless the action is lawful and the creditor has instructed
6the repossession agency to inform the debtor that the creditor
7intends to take the action.

8(d) The threat to take any action that cannot legally bebegin delete taken or
9that is not intended to beend delete
taken.

10(e) The false representation or implication that the debtor
11committed any crime or other conduct in order to disgrace the
12debtor.

13(f) The use or distribution of any written communication which
14simulates or is falsely represented to be a document authorized,
15issued, or approved by any court, official, or agency of the United
16States or any state, or which creates a false impression as to its
17source, authorization, or approval.

18(g) The false representation or implication that documents are
19legal process.

20(h) The use of any business, company, or organization name
21other than the true name of the repossession agency’s business,
22company, or organization.

23(i) The use of any deceptive forms.

24begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 7508.4 of the end insertbegin insertBusiness and Professions Codeend insert
25
begin insert is amended to read:end insert

26

7508.4.  

The director may assess administrative fines for any
27of the following prohibited acts:

28(a) Conducting business from any location other than that
29location to which a license was issued or conducting a business as
30an individual, partnership, limited liability company, or corporation
31unless the licensee holds a valid license issued to that exact same
32individual, partnership, limited liability company, or corporation.
33The fine shall be one thousand dollars ($1,000) for each violation.

34(b) Aiding or abetting an unlicensed repossessor or assigning
35his or her license. “Assigning his or her license” means that no
36licensee shall permit a registrant, employee, or agent in his or her
37own name to advertise, engage clients, furnish reports, or present
38bills to clients, or in any manner whatsoever to conduct business
39for which a license is required under this chapter. The fine shall
40be one thousand dollars ($1,000) for each violation.

P14   1(c) Failing to register registrants within 15 days. The fine shall
2be two hundred fifty dollars ($250) for each of the first two
3violations and one thousand dollars ($1,000) for each violation
4thereafter.

5(d) Employing a person whose registration has expired or been
6revoked, denied, suspended, or canceled, if the bureau has furnished
7a listing of these persons to the licensee. The fine shall be
8
begin delete twenty-five dollars ($25) for each violation.end deletebegin insert end insertbegin insertone hundred fifty
9dollars ($150) for the first violation and a fine not to exceed one
10thousand dollars ($1,000) for each violation thereafter.end insert

11(e) Failing to notify the bureau, within 30 days, of any change
12in officers. A notice of warning shall be issued for the first
13violation. Thereafter, the fine shall bebegin delete twenty-five dollars ($25)end delete
14begin insert five hundred dollars ($500)end insert for each violation.

15(f) Failing to submit the notices regarding a violent act or
16threatened violent act within seven days pursuant to Section 7507.6
17or to submit a copy of a judgment awarded against the licensee
18for an amount of more than the then prevailing maximum claim
19that may be brought in small claims court within seven days
20pursuant to Section 7507.7. The fine shallbegin delete be twenty-five dollars
21($25)end delete
begin insert not exceed five hundred dollars ($500)end insert for the first violation
22andbegin delete one hundred dollars ($100) perend deletebegin insert shall not exceed one thousand
23dollars ($1,000) for eachend insert
violation thereafter.

24(g) Failing to include the licensee’s name, address, and license
25number in any advertisement.begin delete A notice of warning shall be issued
26for the first violation. Thereafter, theend delete
begin insert Theend insert fine shall bebegin delete twenty-five
27dollars ($25)end delete
begin insert fifty dollars ($50)end insert for each violation.

28(h) Failing to maintain personal effects for at least 60 days. The
29fine shall bebegin delete twenty-five dollars ($25)end deletebegin insert one hundred dollars ($100)end insert
30 for the first violation andbegin delete one hundred dollars ($100)end deletebegin insert two hundred
31fifty dollars ($250)end insert
for each violation thereafter.

32(i) Failing to provide a personal effects list or a notice of seizure
33within the time limits set forth in Section 7507.9 or 7507.10. The
34fine shall bebegin delete twenty-five dollars ($25)end deletebegin insert one hundred dollars ($100)end insert
35 for the first violation andbegin delete one hundred dollars ($100)end deletebegin insert two hundred
36fifty dollars ($250)end insert
for each violation thereafter.

37(j) Failing to file the required report pursuant to Section 28 of
38the Vehicle Code. The fine shall bebegin delete twenty-five dollars ($25)end deletebegin insert one
39hundred dollars ($100)end insert
forbegin delete each ofend delete the firstbegin delete five violationsend deletebegin insert violationend insert
P15   1 andbegin delete one hundred dollars ($100)end deletebegin insert two hundred fifty dollars ($250)end insert
2 for each violation thereafter, per audit.

3(k) Failing to maintain an accurate record and accounting of
4secure temporary registration forms. The qualified certificate holder
5shall be finedbegin delete twenty-five dollars ($25) for the first violation, one
6hundred dollars ($100) for the second violation, two hundred fifty
7dollars ($250) for the third violation, and two hundred fifty dollars
8($250)end delete
begin insert two hundred fifty dollars ($250) for the first violation, fined
9an amount not to exceed five hundred dollars ($500) for the second
10violation, and fined an amount not to exceed one thousand dollars
11($1,000)end insert
plus a one-year suspension of the privilege to issue
12temporary registrations pursuant to Section 7506.9 for thebegin delete fourthend delete
13begin insert thirdend insert and subsequent violations.

14(l) Representing that a licensee has an office and conducts
15business at a specific address when that is not the case. The fine
16shall be five thousand dollars ($5,000) for each violation.

17(m) Notwithstanding any otherbegin delete provision ofend delete law, the money in
18the Private Security Services Fund that is attributable to
19administrative fines imposed pursuant tobegin delete subdivision (c)end deletebegin insert this sectionend insert
20 shall not be continuously appropriated and shall be available for
21expenditure only upon appropriation by the Legislature.

22begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 7508.6 of the end insertbegin insertBusiness and Professions Codeend insert
23
begin insert is amended to read:end insert

24

7508.6.  

The director may assess administrative fines against
25any repossession agency licensee, qualified certificate holder, or
26registrant for failure to notify the bureau within 30 days of any
27change of residence or business address. The fine shall be
28begin delete twenty-five dollars ($25)end deletebegin insert fifty dollars ($50)end insert for each violation.

29begin insert

begin insertSEC. 9.end insert  

end insert

begin insertArticle 12 (commencing with Section 7511.5) is added
30to Chapter 11 of Division 3 of the end insert
begin insertBusiness and Professions Codeend insertbegin insert,
31to read:end insert

begin insert

32 

33Article begin insert12.end insert  Review
34

 

35

begin insert7511.5.end insert  

Notwithstanding any other law, the powers and duties
36of the bureau, as set forth in this chapter, shall be subject to review
37by the appropriate policy committees of the Legislature. The review
38shall be performed as if this chapter were scheduled to be repealed
39as of January 1, 2020.

end insert
P16   1begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 7520.3 of the end insertbegin insertBusiness and Professions Codeend insert
2
begin insert is amended to read:end insert

3

7520.3.  

(a) As a condition of the issuance, reinstatement,
4reactivation, or continued valid use of a license under this chapter,
5a limited liability company shall, in accordance with this section,
6maintain a policy or policies of insurance against liability imposed
7on or against it by law for damages arising out of claims based
8upon acts, errors, or omissions arising out of the private investigator
9services it provides.

10(b) The total aggregate limit of liability under the policy or
11policies of insurance required under this section shall be as follows:

12(1) For a limited liability company licensee with five or fewer
13persons named as managing members pursuant to subdivision (i)
14of Section 7525.1, the aggregate limit shall not be less than one
15million dollars ($1,000,000).

16(2) For a limited liability company licensee with more than five
17persons named as managing members pursuant to subdivision (i)
18of Section 7525.1, an additional one hundred thousand dollars
19($100,000) of insurance shall be obtained for each person named
20as managing members of the licensee except that the maximum
21amount of insurance is not required to exceed five million dollars
22($5,000,000) in any one designated period, less amounts paid in
23defending, settling, or discharging claims as set forth under this
24section.

25(c) Prior to the issuance, reinstatement, or reactivation of a
26limited liability company license as provided under this chapter,
27the applicant or licensee shall, in the manner prescribed by the
28bureau, submit the information and documentation required by
29this section and requested by the bureau, demonstrating compliance
30with the financial security requirements specified by this section.

31(d) For any insurance policy secured by a licensee in satisfaction
32of this section, a Certificate of Liability Insurance, signed by an
33authorized agent or employee of the insurer, shall be submitted
34electronically or otherwise to the bureau. The insurer issuing the
35certificate shall report to the bureau the following information for
36any policy required under this section: name, license number,
37policy number, dates that coverage is scheduled to commence and
38lapse,begin delete the date and amount of any payment of claims,end delete and
39cancellation date if applicable.begin insert The insurer shall list the bureau
P17   1as the certificate holder for the purposes of receiving notifications
2related to the policy’s status.end insert

3(e) (1) If a licensee fails to maintain sufficient insurance as
4required by this section, or fails to provide proof of the required
5insurance upon request by the bureau, the license is subject to
6suspension and shall be automatically suspended pursuant to this
7subdivision until the date that the licensee provides proof to the
8bureau of compliance with the insurance coverage requirement.

9(2) Prior to an automatic suspension, the bureau shall notify the
10licensee, in writing, that it has 30 days to provide proof to the
11bureau of having the required insurance or the license shall be
12automatically suspended.

13(3) If the licensee fails to provide proof of insurance coverage
14within this period, the bureau may automatically suspend the
15license.

16(f) If the license of a limited liability company is suspended
17pursuant to subdivision (e), each member of the limited liability
18company shall be personally liable up to one million dollars
19($1,000,000) each for damages resulting to third parties in
20connection with the company’s performance, during the period of
21suspension, of any act or contract when a license is required by
22this chapter.

23(g) This section shall remain in effect only until January 1, 2018,
24and as of that date isbegin delete repealed, unless a later enacted statute, that
25is enacted before January 1, 2018, deletes or extends that date.end delete

26
begin insert repealed.end insert

27begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 7525.1 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
28as amended by Section 5 of Chapter 635 of the Statutes of 2015,
29is amended to read:end insert

30

7525.1.  

An application shall be verified and shall include:

31(a) The full name and business address of the applicant.

32(b) The name under which the applicant intends to do business.

33(c) A statement as to the general nature of the business in which
34the applicant intends to engage.

35(d) A verified statement of his or her experience qualifications.

36(e) (1) If the applicant is an individual, a qualified manager, a
37partner of a partnership, an officer of a corporation designated in
38subdivision (h), or a managing member of a limited liability
39company designated in subdivision (i), one personal identification
40form provided by the bureau upon which shall appear a photograph
P18   1taken within one year immediately preceding the date of the filing
2of the application together with two legible sets of fingerprints,
3one set of which shall be forwarded to the Federal Bureau of
4Investigation for purposes of a background check, on a form
5approved by the Department of Justice, and a personal description
6of each person, respectively. The identification form shall include
7residence addresses and employment history for the previous five
8years and be signed under penalty of perjury.

9(2) The bureau may impose a fee not to exceed three dollars
10($3) for processing classifiable fingerprint cards submitted by
11applicants, excluding those submitted into an electronic fingerprint
12system using electronic fingerprint technology.

13(f) In addition, if the applicant for a license is an individual, the
14application shall list all other names known as or used during the
15past 10 years and shall state that the applicant is to be personally
16and actively in charge of the business for which the license is
17sought. If any other qualified manager is to be actively in charge
18of the business, the application shall be subscribed, verified, and
19signed by the applicant, under penalty of perjury. If any other
20person is to be actively in charge of the business, the application
21shall also be subscribed, verified, and signed by that person under
22penalty of perjury.

23(g) If the applicants for a license are copartners, the application
24shall state the true names and addresses of all partners and the
25name of the partner to be actively in charge of the business for
26which the license is sought and list all other names known as or
27used during the past 10 years. If a qualified manager other than a
28partner is to be actively in charge of the business, then the
29application shall be subscribed, verified, and signed by all of the
30partners under penalty of perjury. If any other person is to be
31actively in charge of the business, the application shall also be
32subscribed, verified, and signed by that person, under penalty of
33perjury, under penalty of perjury by all of the partners and the
34qualified manager, or by all of the partners or the qualified
35manager.

36(h) If the applicant for a license is a corporation, the application
37shall state the true names and complete residence addresses of the
38chief executive officer, secretary, chief financial officer, and any
39other corporate officer who will be active in the business to be
40licensed. The application shall also state the name and address of
P19   1the designated person to be actively in charge of the business for
2which the license is sought. The application shall be subscribed,
3verified, and signed by a duly authorized officer of the applicant
4and by the qualified manager thereof, under penalty of perjury.

5(i) If the applicant for a license is a limited liability company,
6the application shall state the true name and complete residence
7address of each managing member and any other officer or member
8who will be active in the business to be licensed. A copy of the
9most recent articles of organization, as filed by the Secretary of
10State, shall be supplied to the bureau upon request. The application
11shall also state the name and residence address of the designated
12person to be actively in charge of the business for which the license
13is sought. The application shall be subscribed, verified, and signed
14by a duly authorized member of the applicantbegin insert and by the qualified
15manager thereofend insert
under penalty of perjury.

16(j) Any other information, evidence, statements, or documents
17as may be required by the director.

18(k) At the discretion of the applicant, a valid email address.

19(l) This section shall remain in effect only until January 1, 2018,
20and as of that date isbegin delete repealed, unless a later enacted statute, that
21is enacted before January 1, 2018, deletes or extends that date.end delete

22
begin insert repealed.end insert

23begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 7533.5 of the end insertbegin insertBusiness and Professions Codeend insert
24
begin insert is amended to read:end insert

25

7533.5.  

(a) A licensee shall notify the bureau within 30 days
26of any change in its corporatebegin delete officers orend deletebegin insert officers, or members
27required to be named pursuant to subdivision (h) or (i) of Section
287525.1, andend insert
of any addition of a new partner.

29(b) Applications, on forms prescribed by the director, shall be
30submitted by all newbegin delete officersend deletebegin insert officers, managing members,end insert and
31partners. The director may suspend or revoke a license issued under
32this chapter if the director determines that the newbegin delete officerend deletebegin insert officer,
33managing member,end insert
or partner of a licensee has committed any of
34the acts constituting grounds to deny an application for a license
35or to take disciplinary action against a licensee pursuant to Section
367538 or 7538.5, respectively.

begin insert

37
(c) This section shall remain in effect only until January 1, 2018,
38and as of that date is repealed.

end insert
39begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 7533.5 is added to the end insertbegin insertBusiness and
40Professions Code
end insert
begin insert, to read:end insert

begin insert
P20   1

begin insert7533.5.end insert  

(a) A licensee shall notify the bureau within 30 days
2of any change in its corporate officers, or members required to be
3named pursuant to subdivision (h) of Section 7525.1, and of any
4addition of a new partner.

5
(b) Applications, on forms prescribed by the director, shall be
6submitted by all new officers and partners. The director may
7suspend or revoke a license issued under this chapter if the director
8determines that the new officer or partner of a licensee has
9committed any of the acts constituting grounds to deny an
10application for a license or to take disciplinary action against a
11licensee pursuant to Section 7538 or 7538.5, respectively.

12
(c) This section shall become operative on January 1, 2018.

end insert
13begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 7542 of the end insertbegin insertBusiness and Professions Codeend insert
14
begin insert is amended to read:end insert

15

7542.  

begin deleteEvery end deletebegin insert(a)end insertbegin insertend insertbegin insertA end insertlicensee and qualified manager who in the
16course of his or her employment or business carries a deadly
17weapon shall complete a course of training in the exercise of the
18powers to arrest as specified in Section 7583.7 and a course of
19training in the carrying and use of firearms as specified in Article
204 (commencing with Section 7583) of Chapter 11.5.begin delete Noend deletebegin insert Aend insert licensee
21or qualified manager shallbegin insert notend insert carry or use a firearm unless he or
22she has met the requirements of Sections 7583.23,begin delete 7583.28, and
237583.29end delete
begin insert 7583.24, and 7583.28end insert and has in his or her possession a
24valid firearms qualificationbegin delete card as provided in Section 7583.30.end delete
25begin insert card.end insert A licensee or qualified manager who possesses a valid
26firearms qualification card shall complybegin delete withend deletebegin insert with,end insert and be subject
27begin delete to the provisions ofend deletebegin insert to,end insert Sectionsbegin insert 7583.25, 7583.26, 7583.27,
287583.30,end insert
7583.31, 7583.32, and 7583.37.begin insert end insertbegin insertA licensee or qualified
29manager who possesses a valid firearms qualification card may
30carry a firearm capable of being concealed upon the person in a
31concealed manner if he or she complies with applicable provisions
32set forth in Chapter 4 (commencing with Section 26150) of Division
335 of Title 4 of Part 6 of the Penal Code.end insert

begin insert

34
(b) If a firearms qualification card is denied, the denial shall
35be in writing and shall describe the basis for the denial. The denial
36shall inform the applicant that if he or she desires a review by the
37Private Investigator Disciplinary Review Committee to contest the
38denial, the review shall be requested of the director within 30 days
39following the issuance of the denial. A review or hearing shall be
40held pursuant to Section 7519.3. However, no review or hearing
P21   1shall be granted to an individual who is otherwise prohibited by
2law from carrying a firearm.

end insert
begin insert

3
(c) (1) If a firearms qualification card is denied on the basis
4of the results of an assessment pursuant to 7583.47, the denial
5shall be in writing and shall describe the basis for the denial. The
6denial shall inform the applicant that if he or she desires to contest
7the denial, the applicant shall request a hearing within 30 days of
8the issuance of the denial.

end insert
begin insert

9
(2) Appeals of denials pursuant to this subdivision shall be in
10accordance with Chapter 5 (commencing with Section 11500) of
11Part 1 of Division 3 of Title 2 of the Government Code.

end insert
12begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 7563 of the end insertbegin insertBusiness and Professions Codeend insert
13
begin insert is amended to read:end insert

14

7563.  

The director, in lieu of suspending or revoking a license
15issued under this chapter for violations of Sections 7561.1, 7561.3,
16and 7561.4, may impose a civil penalty not to exceed five hundred
17dollars ($500)begin insert for the first violation, and one thousand dollars
18($1,000) for each violation thereafter,end insert
upon a licensee, if the
19director determines that this action better serves the purposes of
20this chapter.

21begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 7566 of the end insertbegin insertBusiness and Professions Codeend insert
22
begin insert is amended to read:end insert

23

7566.  

The director may assess administrative finesbegin insert of fifty
24dollars ($50)end insert
against any licensee,begin delete registrant,end deletebegin insert qualified manager,end insert
25 or firearms qualification cardholderbegin insert for each violationend insert for failure
26to notify the bureau within 30 days of any change of residence or
27business address. The principal place of business may be at a home
28or at a business address, but it shall be the place at which the
29licensee maintains a permanent office.

begin delete

30(a) The fine shall be twenty-five dollars ($25) for each violation
31by a licensee.

end delete
begin delete

32(b) The fine shall be fifteen dollars ($15) for each violation by
33a registrant or a firearms qualification cardholder.

end delete
34begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 7570 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
35as amended by Section 16 of Chapter 669 of the Statutes of 2014,
36is amended to read:end insert

37

7570.  

The fees prescribed by this chapter are as follows:

38(a) The application and examination fee for an original license
39shall not exceed fifty dollars ($50).

P22   1(b) The application fee for an original branch office certificate
2shall not exceed thirty dollars ($30).

3(c) The fee for an original license for a private investigator shall
4not exceed one hundred seventy-five dollars ($175).

5(d) The renewal fee is as follows:

6(1) For a license as a private investigator, the fee shall not
7exceed one hundred twenty-five dollars ($125).

begin delete

8(2) For a combination license as a private investigator and
9private patrol operator under Chapter 11.5 (commencing with
10Section 7580), AC or DC prefix, the fee shall not exceed six
11hundred dollars ($600).

end delete
begin delete

12(3)

end delete

13begin insert(2)end insert For a branch office certificate for a private investigator, the
14fee shall not exceed thirty dollarsbegin delete ($30), and for a combination
15private investigator and private patrol operator under Chapter 11.5
16(commencing with Section 7580), the fee shall not exceed forty
17dollars ($40).end delete
begin insert ($30).end insert

18(e) The delinquency fee is 50 percent of the renewal fee in effect
19on the date of expiration.

20(f) A reinstatement fee is equal to the amount of the renewal
21fee plus the regular delinquency fee.

22(g) The fee for reexamination of an applicant or his or her
23manager shall not exceed fifteen dollars ($15).

24(h) The processing fee for the assignment of a license pursuant
25to Section 7530 shall not exceed one hundred twenty-five dollars
26($125).

27(i) This section shall remain in effect only until January 1, 2018,
28and as of that date isbegin delete repealed, unless a later enacted statute, that
29is enacted before January 1, 2018, deletes or extends that date.end delete

30
begin insert repealed.end insert

31begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 7570 of the end insertbegin insertBusiness and Professions Codeend insertbegin insert,
32as added by Section 17 of Chapter 669 of the Statutes of 2014, is
33amended to read:end insert

34

7570.  

The fees prescribed by this chapter are as follows:

35(a) The application and examination fee for an original license
36shall not exceed fifty dollars ($50).

37(b) The application fee for an original branch office certificate
38shall not exceed thirty dollars ($30).

39(c) The fee for an original license for a private investigator shall
40not exceed one hundred seventy-five dollars ($175).

P23   1(d) The renewal fee is as follows:

2(1) For a license as a private investigator, the fee shall not
3exceed one hundred twenty-five dollars ($125).

begin delete

4(2) For a combination license as a private investigator and
5private patrol operator under Chapter 11.5 (commencing with
6Section 7580), AC or DC prefix, the fee shall not exceed six
7hundred dollars ($600).

end delete
begin delete

8(3)

end delete

9begin insert(2)end insert For a branch office certificate for a private investigator, the
10fee shall not exceed thirty dollarsbegin delete ($30), and for a combination
11private investigator and private patrol operator under Chapter 11.5
12(commencing with Section 7580), the fee shall not exceed forty
13dollars ($40).end delete
begin insert ($30).end insert

14(e) The delinquency fee is 50 percent of the renewal fee in effect
15on the date of expiration.

16(f) A reinstatement fee is equal to the amount of the renewal
17fee plus the regular delinquency fee.

18(g) The fee for reexamination of an applicant or his or her
19manager shall not exceed fifteen dollars ($15).

20(h) This section shall become operative on January 1, 2018.

21begin insert

begin insertSEC. 19.end insert  

end insert

begin insertArticle 8 (commencing with Section 7573.5) is added
22to Chapter 11.3 of Division 3 of the end insert
begin insertBusiness and Professions
23Code
end insert
begin insert, to read:end insert

begin insert

24 

25Article begin insert8.end insert  Review
26

 

27

begin insert7573.5.end insert  

Notwithstanding any other law, the powers and duties
28of the bureau, as set forth in this chapter, shall be subject to review
29by the appropriate policy committees of the Legislature. The review
30shall be performed as if this chapter were scheduled to be repealed
31as of January 1, 2020.

end insert
32begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 7574.21 of the end insertbegin insertBusiness and Professions Codeend insert
33
begin insert is amended to read:end insert

34

7574.21.  

A person registered as a proprietary private security
35employer shall do the following with respect to proprietary private
36security officers in his or her employment:

37(a) Maintain an accurate and current record of the name, address,
38commencing date of employment, and position of each proprietary
39private security officer, and the date of termination of employment
40when a proprietary private security officer is terminated.

P24   1(b) Maintain an accurate and current record of proof of
2completion by each proprietary private security officer of the
3training described in Sectionbegin delete 7574.5.end deletebegin insert 7574.18.end insert

4begin insert

begin insertSEC. 21.end insert  

end insert

begin insertArticle 6 (commencing with Section 7576) is added
5to Chapter 11.4 of Division 3 of the end insert
begin insertBusiness and Professions
6Code
end insert
begin insert, to read:end insert

begin insert

7 

8Article begin insert6.end insert  Review
9

 

10

begin insert7576.end insert  

Notwithstanding any other law, the powers and duties
11of the bureau, as set forth in this chapter, shall be subject to review
12by the appropriate policy committees of the Legislature. The review
13shall be performed as if this chapter were scheduled to be repealed
14as of January 1, 2020.

end insert
15begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 7583.3 of the end insertbegin insertBusiness and Professions Codeend insert
16
begin insert is amended to read:end insert

17

7583.3.  

No person required to be registered as a security guard
18pursuant to this chapter shall do any of the following:

19(a) Fail to carry on his or her person, while on duty, a valid and
20current security guard registration card.

21(b) Fail to carry on his or her person a valid and current firearms
22permit when carrying a firearm on duty.

23(c) Carry or use a firearm unless he or she possesses a valid and
24current firearms permitbegin insert that is associated with a valid and current
25security guard registrationend insert
issued pursuant to this chapter.

26(d) Fail to report to his or her employer within 24 hours of the
27incident the circumstances surrounding any incident involving the
28discharge of any firearm in which he or she is involved while acting
29within the course and scope of his or her employment.

30begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 7583.4 of the end insertbegin insertBusiness and Professions Codeend insert
31
begin insert is amended to read:end insert

32

7583.4.  

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

P25   1(a) The name, address, and date of birth of the guard or
2patrolperson.

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

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

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

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

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

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

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

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

18begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 7583.6 of the end insertbegin insertBusiness and Professions Codeend insert
19
begin insert is amended to read:end insert

20

7583.6.  

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

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

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

P26   1(d) The department shall develop and approve by regulation a
2standard course and curriculum for the skills training required by
3subdivision (b) to promote and protect the safety of persons and
4the security of property. For this purpose, the department shall
5consult with consumers, labor organizations representing private
6security officers, private patrol operators, educators, and subject
7matter experts.

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

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

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

21(g) This section does not apply to a peace officer as defined in
22Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
23of the Penal Code who has successfully completed a course of
24study in the exercise of the power to arrest approved by the
25Commission on Peace Officer Standards andbegin delete Training.end deletebegin insert Training,
26or a federal qualified law enforcement officer, as defined in Section
27926B of Title 18 of the United States Code, who has successfully
28completed a course of study in the exercise of the power to arrest.end insert

29 This section does not apply to armored vehicle guards.

begin delete

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

end delete
31begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 7583.9 of the end insertbegin insertBusiness and Professions Codeend insert
32
begin insert is amended to read:end insert

33

7583.9.  

(a) Upon accepting employment by a private patrol
34operator, any employee who performs the function of a security
35guard or security patrolperson who is not currently registered with
36the bureau, shall complete an application for registration on a form
37as prescribed by the director, and obtain two classifiable fingerprint
38cards for submission to the Department of Justice. The applicant
39shall submit the application, the registration fee, and his or her
40fingerprints to the bureau. The bureau shall forward the classifiable
P27   1fingerprint cards to the Department of Justice. The Department of
2Justice shall forward one classifiable fingerprint card to the Federal
3Bureau of Investigation for purposes of a background check.

4(b) If a private patrol operator pays the application fee on behalf
5of the applicant, nothing in this section shall preclude the private
6patrol operator from withholding the amount of the fee from the
7applicant’s compensation.

8(c) The licensee shall maintain supplies of applications and
9fingerprint cards that shall be provided by the bureau upon request.

10(d) In lieu of classifiable fingerprint cards provided for in this
11section, the bureau may authorize applicants to submit their
12fingerprints into an electronic fingerprinting system administered
13by the Department of Justice. Applicants who submit their
14fingerprints by electronic means shall have their fingerprints
15entered into the system through a terminal operated by a law
16enforcement agency or other facility authorized by the Department
17of Justice to conduct electronic fingerprinting. The enforcement
18agency responsible for operating the terminal may charge a fee
19sufficient to reimburse it for the costs incurred in providing this
20service.

21(e) Upon receipt of an applicant’s electronic or hard card
22fingerprints as provided in this section, the Department of Justice
23shall disseminate the following information to the bureau:

24(1) Every conviction rendered against the applicant.

25(2) Every arrest for an offense for which the applicant is
26presently awaiting trial, whether the applicant is incarcerated or
27has been released on bail or on his or her own recognizance
28pending trial.

29(f) (1) The requirement in subdivision (a) to submit a fingerprint
30card does not apply to any of the following:

31(A) A currently employed, full-time peace officer holding peace
32officer status under Chapter 4.5 (commencing with Section 830)
33of Title 3 of Part 2 of the Penal Code.

34(B) A level I or level II reserve officer under paragraphs (1) and
35(2) of subdivision (a) of Section 832.6 of the Penal Code.

36(2) An individual listed in subparagraph (A) or (B) of paragraph
37(1) may immediately perform the functions of a security guard or
38security patrolperson provided that he or she has submitted an
39application, the applicable fees, and his or her fingerprints, if
P28   1required to submit fingerprints pursuant to subdivision (a), to the
2bureau for a security guard registration.

3(3) This subdivision does not apply to a peace officer required
4to obtain a firearm qualification card pursuant to Section 7583.12.

5(g) Peace officers exempt from the submission of classifiable
6fingerprints pursuant to subdivision (f) shall submit verification
7of their active duty peace officer status to the bureau with their
8application for registration. A photocopy of the front and back of
9their peace officer identification badge shall be adequate
10verification.

11(h) Peace officers exempt from the submission of classifiable
12fingerprints pursuant to subdivision (f) shall report a change in
13their active duty peace officer status to the bureau within 72 hours
14of the change in active duty peace officer status.

15(i) (1) Peace officers exempt from obtaining a firearm
16qualification card pursuant to subdivisionbegin delete (c)end deletebegin insert (e)end insert of Section 7583.12
17shall submit to the bureau with their application for registration a
18letter of approval from his or her primary employer authorizing
19him or her to carry a firearm while working as a security guard or
20security officer.

21(2) For purposes of this section, “primary employer” means a
22public safety agency currently employing a peace officer subject
23to this section.

24(j)  In addition to the amount authorized pursuant to Section
257570.1, the bureau may impose an additional fee not to exceed
26three dollars ($3) for processing classifiable fingerprint cards
27submitted by applicants excluding those submitted into an
28electronic fingerprint system using electronic fingerprint
29technology.

30(k)  An employee shall, on the first day of employment, display
31to the client his or her registration card if it is feasible and practical
32to comply with this disclosure requirement. The employee shall
33thereafter display to the client his or her registration card upon the
34request of the client.

35begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 7583.12 of the end insertbegin insertBusiness and Professions Codeend insert
36
begin insert is amended to read:end insert

37

7583.12.  

(a) begin deleteNo end deletebegin insertAn end insertemployee of a licensee shallbegin insert notend insert carry or
38use a firearm unless the employee has in his or her possession both
39of the following:

P29   1(1) A valid guard registration card issued pursuant to this
2chapter.

3(2) A valid firearm qualification card issued pursuant to this
4chapter.

5(b) An employee of a licensee may carry or use a firearm while
6working as a security guard or security patrolperson pending receipt
7of a firearm qualification card if he or she has been approved by
8the bureau and carries on his or her person a hardcopy printout of
9the bureau’s approval from the bureau’s Internet Web site and a
10valid picture identification.

11(c) In the event of the loss or destruction of the firearm
12qualification card, the cardholder may apply to the bureau for a
13certified replacement of the card, stating the circumstances
14surrounding the loss, and pay a ten-dollar ($10) certification fee,
15whereupon the bureau shall issue a certified replacement of the
16card.

17(d) Paragraph (2) of subdivision (a) and subdivision (b) shall
18not apply to a duly appointed peace officer, as defined in Chapter
194.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal
20Code, who meets all of the following:

21(1) He or she has successfully completed a course of study in
22the use of firearms.

23(2) He or she is authorized to carry a concealed firearm in the
24course and scope of his or her employment pursuant to Article 2
25(commencing with Section 25450) of Chapter 2 of Division 5 of
26Title 4 of Part 6 of the Penal Code.

27(3) He or she has proof that he or she has applied to the bureau
28for a firearm qualification card.

29(e) (1) This section shall not apply to a duly appointed peace
30officer, as defined in Chapter 4.5 (commencing with Section 830)
31of Title 3 of Part 2 of the Penal Code,begin insert end insertbegin insertor a federal qualified law
32enforcement officer, as defined in Section 926B of Title 18 of the
33United States Code,end insert
who has written approval from his or her
34primary employer, as defined in paragraph (2) of subdivision (i)
35of Section 7583.9, to carry a firearm while working as a security
36
begin delete guard or security officer.end deletebegin insert guard.end insert

37(2) A peace officer exempt under this subdivision shall carry
38on his or her person a letter of approval from his or her primary
39employer authorizing him or her to carry a firearm while working
40as a securitybegin delete guard or security officer.end deletebegin insert guard.end insert

P30   1begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 7583.22 of the end insertbegin insertBusiness and Professions Codeend insert
2
begin insert is amended to read:end insert

3

7583.22.  

(a) A licensee, qualified manager of a licensee, or
4security guard who, in the course of his or her employment, may
5be required to carry a firearm shall, prior to carrying a firearm, do
6both of the following:

7(1) Complete a course of training in the carrying and use of
8firearms.

9(2) Receive a firearms qualification card or be otherwise
10qualified to carry a firearm as provided in Section 7583.12.

11(b) A licensee shall not permit an employee to carry or use a
12loaded or unloaded firearm, whether or not it is serviceable or
13operative, unless the employee possesses a valid and current
14firearms qualification card issued by the bureau or is so otherwise
15qualified to carry a firearm as provided in Section 7583.12.

16(c) A pocket card issued by the bureau pursuant to Section
177582.13 may also serve as a firearms qualification card if so
18indicated on the face of the card.

19(d) Paragraph (1) of subdivision (a) shall not apply to a peace
20officer as defined in Chapter 4.5 (commencing with Section 830)
21of Title 3 of Part 2 of the Penal Code, who has successfully
22completed a course of study in the use ofbegin insert firearms or to a federal
23qualified law enforcement officer, as defined in Section 926B of
24Title 18 of the United States Code, who has successfully completed
25a course of study in the use ofend insert
firearms.

begin delete

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

end delete
27begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 7583.23 of the end insertbegin insertBusiness and Professions Codeend insert
28
begin insert is amended to read:end insert

29

7583.23.  

The bureau shall issue a firearms permit when all of
30the following conditions are satisfied:

31(a) The applicant is a licensee, a qualified manager of a licensee,
32or a registeredbegin delete uniformedend delete securitybegin delete guard.end deletebegin insert guard subject to both of
33the following:end insert

begin insert

34
(1) The firearms permit may only be associated with the
35following:

end insert
begin insert

36
(A) A sole owner of a sole ownership licensee, pursuant to
37Section 7582.7 or 7525.1.

end insert
begin insert

38
(B) A partner of a partnership licensee, pursuant to Section
397582.7 or 7525.1.

end insert
begin insert

P31   1
(C) A qualified manager of a licensee, pursuant to Section 7536
2or 7582.22.

end insert
begin insert

3
(D) A security guard registrant.

end insert
begin insert

4
(2) If the firearms permit is associated with a security guard
5registration, he or she is subject to the provisions of Section
67583.47, regardless of any other license possessed or associated
7with the firearms permit.

end insert

8(b) A certified firearms training instructor has certified that the
9applicant has successfully completed a written examination
10prepared by the bureau and training course in the carrying and use
11of firearms approved by the bureau.

12(c) The applicant has filed with the bureau a classifiable
13fingerprint card, a completed application for a firearms permit on
14a form prescribed by the director, dated and signed by the applicant,
15certifying under penalty of perjury that the information in the
16application is true and correct.

17(d) The bureau has determined, after investigation, that the
18carrying and use of a firearm by the applicant, in the course of his
19or her duties, presents no apparent threat to the public safety, or
20that the carrying and use of a firearm by the applicant is not in
21violation of the Penal Code.

22(e) The applicant has produced evidence to the firearm training
23facility that he or she is a citizen of the United States or has
24permanent legal alien status in the United States. Evidence of
25citizenship or permanent legal alien status shall be that deemed
26sufficient by the bureau to ensure compliance with federal laws
27prohibiting possession of firearms by persons unlawfully in the
28United States and may include, but not be limited to,begin insert United Statesend insert
29 Department of Justice, Immigration and Naturalization Service
30Form I-151 or I-551, Alien Registration Receipt Card,
31naturalization documents, or birth certificates evidencing lawful
32residence or status in the United States.

33(f) The application is accompanied by the application fees
34prescribed in this chapter.

begin insert

35
(g) Beginning January 1, 2018, the applicant is a registered
36 security guard and he or she has been found capable of exercising
37appropriate judgment, restraint, and self-control, for the purposes
38of carrying and using a firearm during the course of his or her
39duties, pursuant to Section 7583.47.

end insert
P32   1begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 7583.24 of the end insertbegin insertBusiness and Professions Codeend insert
2
begin insert is amended to read:end insert

3

7583.24.  

(a) The bureau shall not issue a firearm permit if the
4applicant is prohibited from possessing, receiving, owning, or
5purchasing a firearm pursuant to state or federal law.

6(b) Before issuing an initial firearm permit the bureau shall
7provide the Department of Justice with the name, address, social
8security number, and fingerprints of the applicant.

9(c) The Department of Justice shall inform the bureau, within
1060 days from receipt of the information specified in subdivision
11(b), of the applicant’s eligibility to possess, receive, purchase, or
12own a firearm pursuant to state and federal law.

13(d) An applicant who has been denied a firearm permit based
14upon subdivision (a) may reapply for the permit after the
15prohibition expires. The bureau shall treat this application as an
16initial application and shall follow the required screening process
17as specified in this section.

begin insert

18
(e) Beginning January 1, 2018, the bureau shall not issue a
19firearm permit pursuant to this chapter to a registered security
20guard if the applicant has been found incapable, at the time of
21application, of exercising appropriate judgment, restraint, and
22self-control for the purposes of carrying and using a firearm during
23the course of his or her duties, pursuant to Section 7583.47. An
24applicant who has been denied a firearm permit pursuant to this
25subdivision may reapply for the permit after 12 months from the
26date of denial. The bureau shall treat the application as an initial
27application and the applicant must satisfy all the requirements
28specified in Section 7583.23.

end insert
begin insert

29
(f) Beginning January 1, 2018, the bureau shall not issue a
30firearm permit pursuant to this chapter to a licensee or a qualified
31manager of a licensee who, within the past 12 months, has been
32found incapable of exercising appropriate judgment, restraint,
33and self-control, for the purposes of carrying and using a firearm
34during the course of his or her duties, pursuant to the assessment
35required under Section 7583.47 for a permit associated with a
36security guard registration.

end insert
37begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 7583.25 of the end insertbegin insertBusiness and Professions Codeend insert
38
begin insert is amended to read:end insert

P33   1

7583.25.  

(a) The bureau shall not renew a firearm permit if
2the applicant is prohibited from possessing, receiving, purchasing,
3or owning a firearm pursuant to state or federal law.

4(b) Before renewing a firearm permit, the bureau shall provide
5the Department of Justice with the information necessary to identify
6the renewal applicant.begin delete No firearm permit shall be renewed if the
7expiration date of the permit is between October 1, 1993, and
8October 1, 1994, unless the application for renewal is also
9accompanied by a classifiable fingerprint card and the fingerprint
10processing fees for that card.end delete

11(c) The Department of Justice shall inform the bureau, within
1230 days of receipt of the information specified in subdivision (b),
13of the renewal applicant’s eligibility to possess, receive, purchase,
14or own a firearm pursuant to state and federal law.

15(d) An applicant who is denied a firearm permit renewal based
16upon subdivision (a) may reapply for the permit after the
17prohibition expires. The bureau shall treat this as an initial
18application and shall follow the screening process specified in
19Section 7583.24.

20begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 7583.27 of the end insertbegin insertBusiness and Professions Codeend insert
21
begin insert is amended to read:end insert

22

7583.27.  

begin insert(a)end insertbegin insertend insert A firearm permit shall be automatically revoked
23if at any time the Department of Justice notifies the bureau that
24the holder of the firearm permit is prohibited from possessing,
25receiving, or purchasing a firearm pursuant to state or federal law.
26Following the automatic revocation, an administrative hearing
27shall be provided upon written request to the bureau in accordance
28with Chapter 5 (commencing with Section 11500) of Part 1 of
29Division 3 of Title 2 of the Government Code.

begin insert

30
(b) The bureau shall seek an emergency order pursuant to
31Article 13 (commencing with Section 11460.10) of Chapter 4.5 of
32Part 1 of Division 3 of Title 2 of the Government Code against the
33holder of the firearms permit if, after the bureau’s investigation
34relating to any of the following events, the bureau determines that
35the holder of the firearms permit presents an undue hazard to
36public safety that may result in substantial injury to another:

end insert
begin insert

37
(1) Receipt of subsequent arrest information of an arrest for
38any of the following:

end insert
begin insert

39
(A) Assault.

end insert
begin insert

40
(B) Battery.

end insert
begin insert

P34   1
(C) Any use of force or violence on any person committed by
2the permitholder.

end insert
begin insert

3
(2) A report from a bureau-approved firearms training facility
4or instructor made pursuant to Section 7585.18.

end insert
begin insert

5
(3) A report from the permitholder’s employer or former
6employer that the permitholder may be a threat to public safety.

end insert
begin insert

7
(4) A complaint filed by any member of the public that the
8permitholder may be a threat to public safety.

end insert
begin insert

9
(5) If the permitholder has been determined incapable of
10exercising appropriate judgment, restraint, and self-control
11pursuant to the assessment required under Section 7583.47 for a
12permit associated with a security guard registration.

end insert
13begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 7583.29 of the end insertbegin insertBusiness and Professions Codeend insert
14
begin insert is amended to read:end insert

15

7583.29.  

begin insert(a)end insertbegin insertend insert If a firearms permit is denied, the denial of the
16permit shall be in writing and shall describe the basis for the denial.
17The denial shall inform the applicant that if he or she desires a
18review by a disciplinary review committee to contest the denial,
19the review shall be requested of the director within 30 days
20following notice of the issuance of the denial.begin insert A review or hearing
21shall be held pursuant to Section 7581.3.end insert
However, no review or
22hearing shall be granted to an individual who is otherwise
23prohibited by law from carrying a firearm.

begin insert

24
(b) (1) If a firearms permit is denied on the basis of the results
25of an assessment required pursuant to Section 7583.47 for a permit
26associated with a security guard registration, the denial shall be
27in writing and shall describe the basis for the denial. The denial
28shall inform the applicant that if he or she desires to contest the
29denial, the applicant shall request a hearing within 30 days of the
30issuance of the denial.

end insert
begin insert

31
(2) Appeals of denials pursuant to this subdivision shall be in
32accordance with Chapter 5 (commencing with Section 11500) of
33Part 1 of Division 3 of Title 2 of the Government Code.

end insert
34begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 7583.32 of the end insertbegin insertBusiness and Professions Codeend insert
35
begin insert is amended to read:end insert

36

7583.32.  

(a) A firearms qualification card expires two years
37from the date of issuance, if not renewed. A person who wishes
38to renew a firearms qualification card shall file an application for
39renewal at least 60 days prior to the card’s expiration. A person
P35   1whose card has expired shall not carry a firearm until he or she
2has been issued a renewal card by the bureau.

3(b) The bureau shall not renew a firearms qualification card
4unless all of the following conditions are satisfied:

5(1) The cardholder has filed with the bureau a completed
6application for renewal of a firearms qualification card, on a form
7prescribed by the director, dated and signed by the applicant under
8penalty of perjury certifying that the information on the application
9is true and correct.

10(2) The applicant has requalified on the range and has
11successfully passed a written examination based on course content
12as specified in the firearms training manual approved by the
13department and taught at a training facility approved by the bureau.

14(3) The application is accompanied by a firearms requalification
15fee as prescribed in this chapter.

16(4) The applicant has produced evidence to the firearm training
17facility, either upon receiving his or her original qualification card
18or upon filing for renewal of that card, that he or she is a citizen
19of the United States or has permanent legal alien status in the
20United States. Evidence of citizenship or permanent legal alien
21status is that deemed sufficient by the bureau to ensure compliance
22with federal laws prohibiting possession of firearms by persons
23unlawfully in the United States and may include, but not be limited
24to,begin insert the United Statesend insert Department of Justice, Immigration and
25Naturalization Service Form I-151 or I-551, Alien Registration
26Receipt Card, naturalization documents, or birth certificates
27evidencing lawful residence or status in the United States.

28(c) An expired firearms qualification card may not be renewed.
29A person with an expired registration is required to apply for a
30new firearms qualification in the manner required of persons not
31previously registered. A person whose card has expired shall not
32carry a firearm until he or she has been issued a new firearms
33qualification card by the bureau.

34(d) Paragraph (2) of subdivision (b) shall not apply to a duly
35appointed peace officer, as defined in Chapter 4.5 (commencing
36with Section 830) of Title 3 of Part 2 of the Penal Code who is
37authorized to carry a firearm in the course of his or her duties and
38who has successfully completed requalification training.

39begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 7583.33 of the end insertbegin insertBusiness and Professions Codeend insert
40
begin insert is amended to read:end insert

P36   1

7583.33.  

(a) Any licensee, qualified manager, or a registered
2uniformed security guard who wishes to carry a baton in the
3performance of his or her duties, shall qualify to carry the weapon
4pursuant to Article 5 (commencing with Section 7585).

5(b) Subdivision (a) does not apply to a peace officer as defined
6in Chapter 4.5 (commencing with Section 830) of Title 3 of Part
72 of the Penal Code who has successfully completed a course of
8study in the use ofbegin insert end insertbegin insertbatons or to a federal qualified law enforcement
9officer, as defined in Section 926B of Title 18 of the United States
10Code, who has successfully completed a course of study in the use
11ofend insert
batons.

12begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 7583.37 of the end insertbegin insertBusiness and Professions Codeend insert
13
begin insert is amended to read:end insert

14

7583.37.  

The director may assess fines as enumerated in Article
157 (commencing with Section 7587). Assessment of administrative
16fines shall be independent of any other action by the bureau or any
17local, state, or federal governmental agency that may result from
18a violation of this article. In addition to other prohibited acts under
19this chapter, no licensee, qualified manager, or registered security
20guard shall, during the course and scope of licensed activity, do
21any of the following:

22(a) Carry any inoperable, replica, or other simulated firearm.

23(b) Use a firearm in violation of the law, or in knowing violation
24of the standards for the carrying and usage of firearms as taught
25in the course of training in the carrying and use of firearms.
26Unlawful or prohibited uses of firearms shall include, but not be
27limited to, the following:

28(1) Illegally using, carrying, or possessing a dangerous weapon.

29(2) Brandishing a weapon.

30(3) Drawing a weapon without proper cause.

31(4) Provoking a shooting incident without cause.

32(5) Carrying or using a firearm while on duty while under the
33influence of alcohol or dangerous drugs.

34(6) Carrying or using a firearm of a caliber for which a firearms
35permit has not been issued by the bureau.

begin insert

36
(7) Carrying or using a firearm while performing duties not
37related to the qualifying license or registration to which the bureau
38associated the firearms permit.

end insert

P37   1(c) Carry or use a baton in the performance of his or her duties,
2unless he or she has in his or her possession a valid baton certificate
3issued pursuant to Section 7585.14.

4(d) Carry or use tear gas or any other nonlethal chemical agent
5in the performance of his or her duties unless he or she has in his
6or her possession proof of completion of a course in the carrying
7and use of tear gas or any other nonlethal chemical agent.

8(e) Carry a concealed pistol, revolver, or other firearm capable
9of being concealed upon the person unless one of the following
10circumstances applies:

11(1) The person has been issued a permit to carry a pistol,
12revolver, or other firearm capable of being concealed upon the
13person in a concealed manner by a local law enforcement agency
14pursuant to Section 26150, 26155, 26170, or 26215 of the Penal
15Code.

16(2) The person is employed as a guard or messenger of a
17common carrier, bank, or other financial institution and he or she
18carries the weapon while actually employed in and about the
19shipment, transportation, or delivery of any money, treasure,
20bullion, bonds, or other thing of value within this state, as specified
21in Section 25630 of the Penal Code.

22(3) The person is an honorably retired peace officer authorized
23to carry a concealed firearm pursuant to Section 25650 of the Penal
24Code or Article 2 (commencing with Section 25450) of Chapter
252 of Division 5 of Title 4 of Part 6 of the Penal Code.

26(4) The person is a duly appointed peace officer, as defined in
27Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
28of the Penal Code, who is authorized to carry a concealed firearm
29in the course and scope of his or her employment pursuant to
30Article 2 (commencing with Section 25450) of Chapter 2 of
31Division 5 of Title 4 of Part 6 of the Penal Code.

32begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 7583.39 of the end insertbegin insertBusiness and Professions Codeend insert
33
begin insert is amended to read:end insert

34

7583.39.  

(a) The bureau shall require, as a condition precedent
35to the issuance, reinstatement, reactivation, renewal, or continued
36maintenance of a license, that the applicant or licensee file or have
37on file with the bureau, an insurance policy, as defined in Section
387583.40.

39(b) If a licensee fails to maintain sufficient insurance, as required
40by this section, or fails to provide proof of the required insurance
P38   1policy upon request by the bureau, the license shall be
2automatically suspended by operation of law until the date that the
3licensee provides proof to the bureau of compliance with the
4insurance coverage requirement. Prior to an automatic suspension,
5the bureau shall notify the licensee, in writing, that it has 30 days
6to provide proof to the bureau of having the required insurance
7policy or the license shall be automatically suspended.

8(c) (1) A Certificate of Liability Insurance issued by an
9authorized agent or employee of the insurer shall be submitted to
10the bureau electronically, or in a manner authorized by the bureau,
11for an insurance policy secured by a licensee in satisfaction of this
12section.begin insert The insurer shall list the bureau as the certificate holder
13for the purposes of receiving notifications related to the policy’s
14status.end insert

15(2) An insurer issuing a Certificate of Liability Insurance
16pursuant to paragraph (1) shall report the following information
17to the bureau for an insurance policy required by this section:

18(A) The name of the insured.

19(B) The licensee’s license number.

20(C) The policy number.

21(D) The dates that coverage is scheduled to commence and end.

22(E) The cancellation date, if applicable.

23begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 7583.47 is added to the end insertbegin insertBusiness and
24Professions Code
end insert
begin insert, to read:end insert

begin insert
25

begin insert7583.47.end insert  

(a) As used in this section, “assessment” means the
26application of a testing instrument identified by the bureau that
27evaluates whether an applicant for a firearms permit who is a
28registered security guard, at the time of the assessment, possesses
29appropriate judgment, restraint, and self-control for the purposes
30of carrying and using a firearm during the course of his or her
31security guard duties.

32
(b) Beginning January 1, 2018, the applicant shall complete
33the assessment, as specified in this section.

34
(c) (1) The bureau shall implement a process to administer the
35assessment specified in this section by January 1, 2018. The
36establishment of the assessment and the process for administering
37the assessment shall not be subject to the requirements of Chapter
383.5 (commencing with Section 11340) of Part 1 of Division 3 of
39Title 2 of the Government Code.

P39   1
(2) The bureau shall consult with a California licensed
2psychologist, psychologists, or other persons with subject matter
3expertise, whose minimum duties shall include, but are not limited
4to, assisting the bureau with all of the following:

5
(A) Establishing criteria for a contract with a vendor to
6administer the assessment.

7
(B) Identifying minimum standards for the assessment.

8
(C) Evaluating currently available assessments.

9
(D) Providing consultative services on the bids received by the
10bureau from third-party vendors seeking to administer and
11interpret the assessment, to ensure both of the following:

12
(i) Compliance with the applicable standards of care for the
13administration and interpretation of such assessments.

14
(ii) The assessment will be administered in accordance with the
15assessment manufacturer’s requirements.

16
(3) The bureau shall contract with a third-party vendor to
17administer the assessment. All third-party vendors seeking to
18administer the assessment must meet the minimum standards
19established by the bureau, its consultants, and the assessment
20manufacturer’s requirements for administering the assessment.
21Considerations for the third-party vendor contract shall include,
22but are not limited to, all of the following:

23
(A) Cost to the applicant to complete the assessment.

24
(B) Geographic accessibility statewide of the assessment to
25applicants.

26
(C) Assessment compliance with the established minimum
27standards for the assessment and assessment process.

28
(D) Ensuring an assessment carried out on an applicant
29complies with the applicable professional standards of care for
30such assessments, as well as the assessment manufacturer’s
31requirements for administering the assessment.

32
(d) Upon the bureau’s verification that the applicant has
33satisfied subdivisions (a) to (f), inclusive, of Section 7583.23 and
34upon the applicant’s clearance of a background check by the
35Department of Justice and the Federal Bureau of Investigation to
36possess a firearm, the bureau shall notify the applicant that he or
37 she is to contact the bureau’s vendor to complete the assessment.
38The applicant, or his or her designee or employer if the employer
39voluntarily chooses, shall bear the cost of the assessment.

P40   1
(e) Within 30 days of administering an applicant’s assessment,
2the vendor shall directly provide the bureau, on a form and in a
3manner prescribed by the bureau, the applicant’s assessment
4results. If the results of the applicant’s assessment indicate that
5he or she is incapable of exercising appropriate judgment,
6restraint, and self-control for the purposes of carrying and using
7a firearm during the course of his or her duties, at the point in
8time of the evaluation, the bureau shall not issue a firearms permit.

9
(f) The application shall be deemed incomplete until the bureau
10receives the applicant’s results of his or her assessment.

11
(g) The bureau may prescribe, adopt, and enforce emergency
12regulations, and promulgate regulations to implement this section.
13Any emergency regulation prescribed, adopted, or enforced
14pursuant to this section shall be adopted in accordance with
15Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
163 of Title 2 of the Government Code, and for purposes of that
17chapter, including Section 11349.6 of the Government Code, the
18adoption of the regulation is an emergency and shall be considered
19by the Office of Administrative Law as necessary for the immediate
20preservation of the public peace, health and safety, and general
21welfare.

22
(h) The assessment required pursuant to this section shall be
23subject to review by the appropriate policy committees of the
24Legislature. The review shall be performed as if this section was
25scheduled to be repealed as of January 1, 2020.

end insert
26begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 7585.4.1 is added to the end insertbegin insertBusiness and
27Professions Code
end insert
begin insert, to read:end insert

begin insert
28

begin insert7585.4.1.end insert  

(a) (1) Within 120 days after issuance of a
29“Firearms Training Facility Certificate,” the bureau shall inspect
30the facility for compliance with the applicable requirements of this
31article and the applicable rules and regulations of the bureau
32adopted pursuant to this article.

33
(2) The bureau may inspect the establishment for which a
34certificate application has been made prior to the issuance of the
35certificate.

36
(b) The bureau shall maintain a program of random and
37targeted inspections of facilities to ensure compliance with
38applicable laws relating to the conduct and operation of facilities.

P41   1
(c) If the bureau determines that any facility is not complying
2with applicable laws relating to the conduct and operation of
3facilities, notice thereof shall immediately be given to the facility.

4
(d) In addition to the notice, the bureau may issue a citation or
5take other disciplinary action for violations of applicable laws.

end insert
6begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 7587.8 of the end insertbegin insertBusiness and Professions Codeend insert
7
begin insert is amended to read:end insert

8

7587.8.  

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

11(a) Violation of subdivisions (a), (b), and (c) of Section 7583.2;
12begin delete one hundred dollars ($100)end deletebegin insert five hundred dollars ($500)end insert per
13violation.

14(b) Violation of subdivisions (h) and (i) of Section 7583.2;begin delete one
15hundred dollars ($100) for the first violation andend delete
two hundred fifty
16dollars ($250) perbegin delete violation for each violation thereafter.end deletebegin insert violation.end insert

17(c) Violation of subdivision (d) of Section 7583.2;begin delete one hundred
18dollars ($100)end delete
begin insert five hundred dollars ($500)end insert per violation.

19(d) Violation of subdivision (g) of Section 7583.2;begin delete five hundred
20dollars ($500)end delete
begin insert one thousand dollars ($1,000)end insert for the first violation
21andbegin delete oneend deletebegin insert twoend insert thousand five hundred dollarsbegin delete ($1,500)end deletebegin insert ($2,500)end insert per
22violation for each violation thereafter.

23(e) Violation of subdivision (f) of Section 7583.2; two thousand
24five hundred dollars ($2,500) per violation, notwithstanding any
25other provision of law.

26begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 7587.9 of the end insertbegin insertBusiness and Professions Codeend insert
27
begin insert is amended to read:end insert

28

7587.9.  

The director may assess fines for the following acts
29pursuant to Article 4 (commencing with Section 7583) only as
30follows:

31(a) Violation of subdivisions (a) and (b) of Section 7583.3;
32
begin delete twenty-five dollars ($25) for the first violation and fifty dollars
33($50) per violation for each violation thereafter.end delete
begin insert end insertbegin insertone hundred fifty
34dollars ($150) per violation.end insert

35(b) Violation of subdivision (c) of Section 7583.3;begin delete two hundred
36fifty dollars ($250)end delete
begin insert five hundred dollars ($500)end insert for the first
37violation andbegin delete five hundred dollars ($500)end deletebegin insert one thousand dollars
38($1,000)end insert
per violation for each violation thereafter.

P42   1(c) Violation of Section 7583.4;begin delete two hundred fifty dollars ($250)
2for the first violation andend delete
five hundred dollars ($500) perbegin delete violation
3for each violation thereafter.end delete
begin insert violation.end insert

4begin insert

begin insertSEC. 4end insertbegin insert1.end insert  

end insert

begin insertSection 7587.10 of the end insertbegin insertBusiness and Professions Codeend insert
5
begin insert is amended to read:end insert

6

7587.10.  

The director may assess fines for the following acts
7pursuant to Article 4 (commencing with Section 7583) only as
8follows:

9(a) Violation of subdivisions (c) and (d) of Section 7583.37;
10one hundred dollars ($100) for the first violation and two hundred
11dollars ($200) for each violation thereafter.

12(b) Violation of subdivision (a) of Section 7583.37; one hundred
13dollars ($100) for the first violation and five hundred dollars ($500)
14for each violation thereafter.

15(c) Violation of subdivision (e) of Section 7583.37; one thousand
16dollarsbegin delete ($1000).end deletebegin insert ($1,000).end insert

17(d) Violation of subdivision (b) of Section 7583.37; one
18thousand dollarsbegin delete ($1000) for the first violationend deletebegin insert ($1,000)end insert and
19suspension of a firearm qualification card for six months forbegin delete each
20violation thereafter.end delete
begin insert the first violation and, for a violation
21thereafter, one thousand dollars ($1,000) and a suspension of a
22firearm qualification card for not more than one year.end insert

23begin insert

begin insertSEC. 4end insertbegin insert2.end insert  

end insert

begin insertSection 7587.12 of the end insertbegin insertBusiness and Professions Codeend insert
24
begin insert is amended to read:end insert

25

7587.12.  

The director may assess fines for the following acts
26only as follows:

27(a) Violations of paragraph (1), (2), (11), or (12) of subdivision
28(a) of Section 7585.19;begin delete one hundred dollars ($100)end deletebegin insert two hundred
29fifty dollars ($250)end insert
for the first violation and five hundred dollars
30($500) for subsequent violations.

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

34(c) Violations of paragraph (6) of subdivision (a) of Section
357585.19;begin delete two hundred fifty dollars ($250)end deletebegin insert five hundred dollars
36($500)end insert
for each hour shortened.

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

P43   1(e) Violations of paragraph (5) of subdivision (a) of Section
27585.19; five hundred dollars ($500) for every hour the course has
3been shortened.

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

6begin insert

begin insertSEC. 4end insertbegin insert3.end insert  

end insert

begin insertSection 7587.14 of the end insertbegin insertBusiness and Professions Codeend insert
7
begin insert is amended to read:end insert

8

7587.14.  

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

begin delete

15(a) The fine shall be twenty-five dollars ($25) for the first
16violation and fifty dollars ($50) per violation for each violation
17thereafter by a licensee.

end delete
begin delete

18(b) The fine shall be fifty dollars ($50) for each violation by a
19registrant or a firearms qualification cardholder.

end delete
20begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 7587.15 of the end insertbegin insertBusiness and Professions Codeend insert
21
begin insert is amended to read:end insert

22

7587.15.  

Notwithstanding any other provision of law, the
23director may assess a fine of up to five thousand dollars ($5,000)
24per violation against any licensee for a failure to comply with
25subdivision (e) of Sectionbegin delete 7583.2 or Section 7583.11. In addition,
26the director may deny, suspend, or revoke a license issued under
27this chapter for a failure to comply with Section 7583.11.end delete
begin insert 7583.2.end insert

28begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 7588 of the end insertbegin insertBusiness and Professions Codeend insert
29
begin insert is amended to read:end insert

30

7588.  

The fees prescribed by this chapter are as follows:

31(a) The application and examination fee for an original license
32for a private patrol operator may not exceed five hundred dollars
33($500).

34(b) The application fee for an original branch office certificate
35for a private patrol operator may not exceed two hundred fifty
36dollars ($250).

37(c) The fee for an original license for a private patrol operator
38may not exceed seven hundred dollars ($700).

39(d) The renewal fee is as follows:

P44   1(1) For a license as a private patrol operator, the fee may not
2exceed seven hundred dollars ($700).

begin delete

3(2) For a combination license as a private investigator under
4Chapter 11.3 (commencing with Section 7512) and private patrol
5operator, AC or DC prefix, the fee may not exceed six hundred
6dollars ($600).

end delete
begin delete

7(3)

end delete

8begin insert(2)end insert For a branch office certificatebegin delete for a combination private
9investigator under Chapter 11.3 (commencing with Section 7512)
10and private patrol operator, the fee may not exceed forty dollars
11($40), andend delete
for a private patrol operator, the fee may not exceed
12seventy-five dollars ($75).

13(e) The delinquency fee is 50 percent of the renewal fee in effect
14on the date of expiration.

15(f) A reinstatement fee is equal to the amount of the renewal
16fee plus the regular delinquency fee.

17(g) The fee for reexamination of an applicant or his or her
18manager shall be the actual cost to the bureau for developing,
19purchasing, grading, and administering each examination.

20(h) Registration fees pursuant to this chapter are as follows:

21(1) A registration fee for a security guard shall not exceed fifty
22dollars ($50).

23(2) A security guard registration renewal fee shall not exceed
24thirty-five dollars ($35).

25(i) Fees to carry out other provisions of this chapter are as
26follows:

27(1) A firearms qualification fee may not exceed eighty dollars
28($80).

29(2) A firearms requalification fee may not exceed sixty dollars
30($60).

31(3) An initial baton certification fee may not exceed fifty dollars
32($50).

33(4) An application fee and renewal fee for certification as a
34firearms training facility or a baton training facility may not exceed
35five hundred dollars ($500).

36(5) An application fee and renewal fee for certification as a
37firearms training instructor or a baton training instructor may not
38exceed two hundred fifty dollars ($250).

P45   1begin insert

begin insertSEC. 46.end insert  

end insert

begin insertArticle 9 (commencing with Section 7588.8) is added
2to Chapter 11.5 of Division 3 of the end insert
begin insertBusiness and Professions
3Code
end insert
begin insert, to read:end insert

begin insert

4 

5Article begin insert9.end insert  Review
6

 

7

begin insert7588.8.end insert  

Notwithstanding any other law, the powers and duties
8of the bureau, as set forth in this chapter, shall be subject to review
9by the appropriate policy committees of the Legislature. The review
10shall be performed as if this chapter were scheduled to be repealed
11as of January 1, 2020.

end insert
12begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 7591.11 of the end insertbegin insertBusiness and Professions Codeend insert
13
begin insert is amended to read:end insert

14

7591.11.  

begin insert(a)end insertbegin insertend insert The bureau shall deny a firearms permit, pursuant
15to Chapter 2 (commencing with Section 29800) of Division 9 of
16Title 4 of Part 6 of the Penal Code, to any licensee, qualified
17manager, or alarm agent who has been convicted of a felony, unless
18the felony conviction has been reduced pursuant to Section 17 of
19the Penal Code or the person has been pardoned by the Governor.
20The licensee, qualified manager, or alarm agent shall not have a
21right to a review or a hearing if the denial is made pursuant to this
22section.

begin insert

23
(b) The bureau shall not issue a firearms permit pursuant to
24this chapter to an applicant who, within the past 12 months, has
25been found incapable of exercising appropriate judgment, restraint,
26and self-control, for the purposes of carrying and using a firearm
27during the course of his or her duties pursuant to the assessment
28required under Section 7583.47 for a permit associated with a
29security guard registration.

end insert
30begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 7596.3 of the end insertbegin insertBusiness and Professions Codeend insert
31
begin insert is amended to read:end insert

32

7596.3.  

The director shall issue a firearms permit when all of
33the following conditions exist:

34(a) The applicant is a licensee, a qualified manager of a licensee,
35a designated branch office manager of a licensee, or a registered
36alarm agent.begin insert A firearms permit may only be associated with the
37following:end insert

begin insert

38
(1) A sole owner of a sole ownership licensee.

end insert
begin insert

39
(2) A partner of a partnership licensee.

end insert
begin insert

40
(3) A qualified manager of a licensee.

end insert
begin insert

P46   1
(4) A designated branch office manager of a licensee.

end insert
begin insert

2
(5) A registered alarm agent.

end insert

3(b) The applicant has filed with the bureau a classifiable
4fingerprint card, a completed application for a firearms permit on
5a form prescribed by the director, dated and signed by the applicant,
6certifying under penalty of perjury that the information in the
7application is true and correct.

8(c) A certified firearms training instructor certifies that the
9applicant has successfully completed the bureau-approved training
10course in the carrying and use of firearms.

11(d) The applicant has provided the bureau with evidence that
12the applicant has completed a course in the exercise of the powers
13to arrest.

14(e) The bureau has determined, after investigation, that the
15carrying and use of a firearm by the applicant, in the course of his
16or her duties, presents no apparent threat to the public safety, or
17the carrying and use of a firearm by the applicant is not in violation
18of the Penal Code.

19(f) The applicant has produced evidence to the firearm training
20facility that he or she is a citizen of the United States or has
21permanent legal alien status in the United States. Evidence of
22citizenship or permanent legal alien status shall be that deemed
23sufficient by the bureau to ensure compliance with federal laws
24prohibiting possession of firearms by persons unlawfully in the
25United States and may include, but not be limited to, Department
26of Justice, Immigration and Naturalization Service Form I-151 or
27I-551, Alien Registration Receipt Card, naturalization documents,
28or birth certificates evidencing lawful residence or status in the
29United States.

30(g) The application is accompanied by the fee prescribed in this
31chapter.

32begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 7596.4 of the end insertbegin insertBusiness and Professions Codeend insert
33
begin insert is amended to read:end insert

34

7596.4.  

begin insert(a)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insert If a firearms permit is denied, the denial of
35the permit shall be in writing and shall describe the basis for the
36denial. The denial shall inform the applicant that if he or she desires
37a review by the Alarm Company Operator Disciplinary Review
38begin delete Committee or a hearing to contest the denial,end deletebegin insert Committee,end insert the review
39begin delete or hearingend delete shall be requested within 30 days of the issuance of the
40denial.

begin delete

P47   1 A

end delete

2begin insert(2)end insertbegin insertend insertbegin insertAend insert review or hearing shall be held pursuant to Section
37591.19. However, no review or hearing shall be granted to an
4individual who is otherwise prohibited by law from carrying a
5firearm.

begin insert

6
(b) (1) If a firearms permit is denied on the basis of the results
7of an assessment required for a permit associated with a security
8guard registration pursuant to 7583.47, the denial shall be in
9writing and shall describe the basis for the denial. The denial shall
10inform the applicant that if he or she desires to contest the denial,
11the applicant shall request a hearing within 30 days of the issuance
12of the denial.

end insert
begin insert

13
(2) Appeals of denials pursuant to this subdivision shall be in
14accordance with Chapter 5 (commencing with Section 11500) of
15Part 1 of Division 3 of Title 2 of the Government Code.

end insert
16begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 7596.8 of the end insertbegin insertBusiness and Professions Codeend insert
17
begin insert is amended to read:end insert

18

7596.8.  

(a) begin deleteEffective October 1, 1993, the end deletebegin insertThe end insertbureau shall
19not issue a firearm permit if the applicant is prohibited from
20possessing, receiving, owning, or purchasing a firearm pursuant
21to state or federal law.

22(b) Before issuing an initial firearm permit the bureau shall
23provide the Department of Justice with the name, address, social
24security number, and fingerprints of the applicant.

25(c) The Department of Justice shall inform the bureau, within
2660 days from receipt of the information specified in subdivision
27(b), of the applicant’s eligibility to possess, receive, purchase, or
28own a firearm pursuant to state and federal law.

29(d) An applicant who has been denied a firearm permit based
30upon subdivision (a) may reapply for the permit after the
31prohibition expires. The bureau shall treat this application as an
32initial application and shall follow the required screening process
33as specified in this section.

begin insert

34
(e) The bureau shall not issue a firearm permit pursuant to this
35chapter to an applicant who, within the past 12 months, has been
36found incapable of exercising appropriate judgment, restraint,
37and self-control, for the purposes of carrying and using a firearm
38during the course of his or her duties, pursuant to the assessment
39required under Section 7583.47 for a permit associated with a
40security guard registration.

end insert
P48   1begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 7596.83 of the end insertbegin insertBusiness and Professions Codeend insert
2
begin insert is amended to read:end insert

3

7596.83.  

begin insert(a)end insertbegin insertend insert A firearm permit shall be automatically revoked
4if at any time the Department of Justice notifies the bureau that
5the holder of the firearm permit is prohibited from possessing,
6receiving, or purchasing a firearm pursuant to state or federal law.
7Following the automatic revocation, an administrative hearing
8shall be provided upon written request to the bureau in accordance
9with Chapter 5 (commencing with Section 11500) of Part 1 of
10Division 3 of Title 2 of the Government Code.

begin insert

11
(b) The bureau shall seek an emergency order pursuant to
12Article 13 (commencing with Section 11460.10) of Chapter 4.5 of
13Part 1 of Division 3 of Title 2 of the Government Code against the
14holder of the firearms permit if, after the bureau’s investigation
15relating to any of the following events, the bureau determines that
16the holder of the firearms permit presents an undue hazard to
17public safety that may result in substantial injury to another:

end insert
begin insert

18
(1) Receipt of subsequent arrest information of an arrest for
19any of the following:

end insert
begin insert

20
(A) Assault.

end insert
begin insert

21
(B) Battery.

end insert
begin insert

22
(C) Any use of force or violence on any person committed by
23the permitholder.

end insert
begin insert

24
(2) A report from a bureau-approved firearms training facility
25or instructor made pursuant to Section 7585.18.

end insert
begin insert

26
(3) A report from the permitholder’s employer or former
27employer that the permitholder may be a threat to public safety.

end insert
begin insert

28
(4) A complaint filed by any member of the public that the permit
29holder may be a threat to public safety.

end insert
begin insert

30
(5) If the permitholder has been determined incapable of
31exercising appropriate judgment, restraint, and self-control
32pursuant to the assessment required under Section 7583.47 for a
33permit associated with a security guard registration.

end insert
34begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 7597.1 of the end insertbegin insertBusiness and Professions Codeend insert
35
begin insert is amended to read:end insert

36

7597.1.  

(a) begin deleteNo end deletebegin insertA end insertlicensee, qualified manager, branch office
37manager, or alarm agent shallbegin insert notend insert carry, use, or possess a loaded
38or unloaded firearm in the course and scope of his or her
39employment, whether or not it is serviceable or operative, unless
40he or she has in his or her possession a valid and current firearms
P49   1qualification card issued to him or her by the bureau. The card
2shall be shown to any peace officer or bureau representative upon
3demand.

4(b) Subdivision (a) shall not apply to a duly appointed peace
5officer, as defined in Chapter 4.5 (commencing with Section 830)
6of Title 3 of Part 2 of the Penal Code,begin insert or a federal qualified law
7enforcement officer, as defined in Section 926B of Title 18 of the
8United States Code,end insert
who meets all of the following:

9(1) He or she has successfully completed a course of study in
10the use of firearms.

11(2) He or she is authorized to carry a concealed firearm in the
12course and scope of his or her employment pursuant to Article 2
13(commencing with Section 25450) of Chapter 2 of Division 5 of
14Title 4 of Part 6 of the Penal Code.

15(3) He or she has proof that he or she has applied to the bureau
16for a firearms qualification card.

17(c) A fine ofbegin delete twenty-five dollars ($25)end deletebegin insert two hundred fifty dollars
18($250)end insert
may be assessed for the first violation of this section and
19a fine ofbegin delete one hundred dollars ($100)end deletebegin insert five hundred dollars ($500)end insert
20 for each subsequent violation.

21begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 7597.2 of the end insertbegin insertBusiness and Professions Codeend insert
22
begin insert is amended to read:end insert

23

7597.2.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertA end insertlicensee, qualified manager, branch office
24manager, or alarm agent shallbegin insert notend insert carry any inoperable, replica, or
25other simulated firearm.

begin delete

26 A

end delete

27begin insert(b)end insertbegin insertend insertbegin insertAend insert violation of this section shall result in a fine ofbegin delete twenty-five
28dollars ($25)end delete
begin insert one hundred dollars ($100)end insert for the first violation and
29a fine ofbegin delete one hundred dollars ($100)end deletebegin insert two hundred fifty dollars
30($250)end insert
for each subsequent violation.

31begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 7597.3 of the end insertbegin insertBusiness and Professions Codeend insert
32
begin insert is amended to read:end insert

33

7597.3.  

begin insert(a)end insertbegin insertend insert No licensee, qualified manager, branch office
34manager, or alarm agent shall use a firearm which is in violation
35of law, or in knowing violation of the standards for carrying and
36usage of firearms, as taught in the course of training in the carrying
37and use of firearms, including, but not limited to:

begin delete

38(a)

end delete

39begin insert(1)end insert Illegally using, carrying, or possessing a dangerous weapon.

begin delete

40(b)

end delete

P50   1begin insert(2)end insert Brandishing a weapon.

begin delete

2(c)

end delete

3begin insert(3)end insert Drawing a weapon without proper cause.

begin delete

4(d)

end delete

5begin insert(4)end insert Provoking a shooting incident without cause.

begin delete

6(e)

end delete

7begin insert(5)end insert Carrying or using a firearm while on duty under the influence
8of alcohol or dangerous drugs.

begin delete

9(f)

end delete

10begin insert(6)end insert Carrying or using a firearm of a caliber for which a bureau
11firearms permit has not been issued.

begin insert

12
(7) Carrying or using a firearm while performing duties not
13related to the qualifying license, certificate, or registration to
14which the bureau associated the firearms permit.

end insert
begin delete

15 A

end delete

16begin insert(b)end insertbegin insertend insertbegin insertAend insert fine of onebegin delete hundred dollars ($100)end deletebegin insert thousand dollars
17($1,000) and a suspension of the firearms permit for six monthsend insert

18 may be assessed for the first violation of this section and a fine of
19begin delete five hundred dollars ($500) for eachend deletebegin insert end insertbegin insertone thousand dollars ($1,000)
20and a suspension of the firearms permit for not more than one year
21for aend insert
subsequent violation.

22begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 7597.5 of the end insertbegin insertBusiness and Professions Codeend insert
23
begin insert is amended to read:end insert

24

7597.5.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertA end insertlicensee, qualified manager, branch office
25manager, or alarm agent shallbegin insert notend insert carry or use tear gas or any other
26nonlethal chemical agent in the performance of his or her duties,
27unless he or she has in his or her possession proof of completion
28of a course in the carrying and use of tear gas or other nonlethal
29chemical agent.

begin delete

30 A

end delete

31begin insert(b)end insertbegin insertend insertbegin insertAend insert fine ofbegin delete twenty-five dollars ($25)end deletebegin insert one hundred dollars
32($100)end insert
may be assessed for the first violation of this section and
33a fine ofbegin delete one hundred dollars ($100)end deletebegin insert two hundred fifty ($250)end insert for
34each subsequent violation.

35begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 7597.6 of the end insertbegin insertBusiness and Professions Codeend insert
36
begin insert is amended to read:end insert

37

7597.6.  

(a) begin deleteNo end deletebegin insertA end insertlicensee, qualified manager, branch office
38manager, or alarm agent shallbegin insert notend insert carry a pistol, revolver, or other
39firearm capable of being concealed upon the person in a concealed
40manner unless one of the following circumstances apply:

P51   1(1) The person has been issued a permit to carry that firearm in
2a concealed manner by a local law enforcement agency pursuant
3to Section 26150, 26155, 26170, or 26215 of the Penal Code.

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

8(3) The person is a duly appointed peace officer, as defined in
9Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
10of the Penal Code, who is authorized to carry a concealed firearm
11in the course and scope of his or her employment pursuant to
12Article 2 (commencing with Section 25450) of Chapter 2 of
13Division 5 of Title 4 of Part 6 of the Penal Code.

14(b) A fine ofbegin delete five hundred dollars ($500)end deletebegin insert one thousand dollars
15($1,000)end insert
may be assessed for each violation of subdivision (a).

16begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 7598.51 of the end insertbegin insertBusiness and Professions Codeend insert
17
begin insert is amended to read:end insert

18

7598.51.  

begin insert(a)end insertbegin insertend insert An alarm agent shall carry on his or her person,
19while on duty, either a valid and current registration card or a
20temporary application for registration.

begin delete

21 A

end delete

22begin insert(b)end insertbegin insertend insertbegin insertAend insert fine ofbegin delete ten dollars ($10)end deletebegin insert one hundred fifty dollars ($150)end insert
23 may be assessed forbegin delete the first violation of this section and a fine of
24twenty-five dollars ($25) for each subsequent violation.end delete
begin insert each
25violation of subdivision (a).end insert

26begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 7598.53 of the end insertbegin insertBusiness and Professions Codeend insert
27
begin insert is amended to read:end insert

28

7598.53.  

An alarm agent who responds to an alarm system
29shall wear a prominently displayed patch or other designation
30which clearly identifies the name of the licensee. An alarm agent
31who carries a deadly weapon while responding to an alarm system
32shall wear a recognizable uniform with a prominently displayed
33patch or other designation which clearly identifies the name of the
34licensee. The uniform must be distinguishable from the uniforms
35worn by local regular law enforcement officers. A violation of this
36section may result in a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert two
37hundred fifty dollars ($250)end insert
for each violation.

38begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 7599.32 of the end insertbegin insertBusiness and Professions
39Code
end insert
begin insert, as amended by Section 13 of Chapter 140 of the Statutes of
402015, is amended to read:end insert

P52   1

7599.32.  

(a) A licensee shall notify the bureau within 30 days
2of any change of its officers or members required to be named
3pursuant to Section 7593.4 or 7593.5 and of any addition of a new
4partner.

5(b) Applications, on forms prescribed by the director, shall be
6submitted by all new officers, managing members, and partners.
7The director may suspend or revoke a license issued under this
8chapter if the director determines that the new officer, managing
9member, or partner has committed any act which constitutes
10grounds for the denial of a license pursuant to Section 7591.10.

11(c) A notice of warning may be issued for the first violation of
12this section and a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert five hundred
13dollars ($500)end insert
for each subsequent violation.

14(d) This section shall remain in effect only until January 1, 2019,
15and as of that date isbegin delete repealed, unless a later enacted statute, that
16is enacted before January 1, 2019, deletes or extends that date.end delete

17
begin insert repealed.end insert

18begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 7599.32 of the end insertbegin insertBusiness and Professions
19Code
end insert
begin insert, as amended by Section 14 of Chapter 140 of the Statutes of
202015, is amended to read:end insert

21

7599.32.  

(a) A licensee shall notify the bureau within 30 days
22of any change of its officers required to be named pursuant to
23Section 7593.4 and of any addition of a new partner.

24(b) Applications, on forms prescribed by the director, shall be
25submitted by all new officers and partners. The director may
26suspend or revoke a license issued under this chapter if the director
27determines that the new officer or partner has committed any act
28which constitutes grounds for the denial of a license pursuant to
29Section 7591.10.

30(c) A notice of warning may be issued for the first violation of
31this section and a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert five hundred
32dollars ($500)end insert
for each subsequent violation.

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

34begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 7599.33 of the end insertbegin insertBusiness and Professions Codeend insert
35
begin insert is amended to read:end insert

36

7599.33.  

begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert conductbegin delete businessend deletebegin insert business,end insert
37 as defined in Sectionbegin delete 7599.20end deletebegin insert 7599.20,end insert from any location other
38than that location for which a license or branch office registration
39was issued. A violation of this section may result in a fine of
40begin delete twenty-five dollars ($25) for eachend deletebegin insert five hundred dollars ($500) for
P53   1the first violation of this section and a fine of one thousand dollars
2($1,000) for each subsequentend insert
violation.

3begin insert

begin insertSEC. 62.end insert  

end insert

begin insertSection 7599.34 of the end insertbegin insertBusiness and Professions
4Code
end insert
begin insert, as amended by Section 15 of Chapter 140 of the Statutes of
52015, is amended to read:end insert

6

7599.34.  

(a) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert conduct a business as an
7individual, partnership, limited liability company, or corporation
8unless the licensee holds a valid license issued to that exact same
9individual, partnership, limited liability company, or corporation.
10A violation of this section may result in a fine ofbegin delete one hundred
11dollars ($100)end delete
begin insert five hundred dollars ($500)end insert for each violation.

12(b) As a condition of the issuance, reinstatement, reactivation,
13or continued valid use of a license under this chapter, a limited
14liability company shall, in accordance with the provisions of this
15section, maintain a policy or policies of insurance against liability
16imposed on or against it by law for damages arising out of claims
17based upon acts, errors, or omissions arising out of the alarm
18company services it provides.

19(c) The total aggregate limit of liability under the policy or
20policies of insurance required under this section shall be as follows:

21(1) For a limited liability company licensee with five or fewer
22persons named as managing members pursuant to Section 7593.5
23or 7599.32, the aggregate limit shall not be less than one million
24dollars ($1,000,000).

25(2) For a limited liability company licensee with more than five
26persons named as managing members pursuant to Section 7593.5
27or 7599.32, an additional one hundred thousand dollars ($100,000)
28of insurance shall be obtained for each person named as managing
29members of the licensee except that the maximum amount of
30insurance is not required to exceed five million dollars ($5,000,000)
31in any one designated period, less amounts paid in defending,
32settling, or discharging claims as set forth under this section.

33(d) Prior to the issuance, reinstatement, or reactivation of a
34limited liability company license as provided under this chapter,
35the applicant or licensee shall, in the manner prescribed by the
36bureau, submit the information and documentation required by
37this section and requested by the bureau, demonstrating compliance
38with the financial security requirements specified by this section.

39(e) For any insurance policy secured by a licensee in satisfaction
40of this section, a Certificate of Liability Insurance, signed by an
P54   1authorized agent or employee of the insurer, shall be submitted
2electronically or otherwise to the bureau. The insurer issuing the
3certificate shall report to the bureau the following information for
4any policy required under this section: name, license number,
5policy number, dates that coverage is scheduled to commence and
6lapse, the date and amount of any payment of claims, and
7cancellation date if applicable.begin insert The insurer shall list the bureau
8as the certificate holder for the purposes of receiving notifications
9related to the policy’s status.end insert

10(f) begin insert(1)end insertbegin insertend insert If a licensee fails to maintain sufficient insurance as
11required by this section,begin insert or fails to provide proof of the required
12insurance upon request by the bureau,end insert
the license is subject to
13
begin delete suspension.end deletebegin insert suspension and is automatically suspended pursuant
14to this subdivision until the date that the licensee provides proof
15to the bureau of compliance with the insurance coverage
16requirement.end insert

begin insert

17
(2) Prior to an automatic suspension, the bureau shall notify
18the licensee, in writing, that the licensee has 30 days to provide
19proof to the bureau of having the required insurance or the license
20shall be automatically suspended.

end insert
begin insert

21
(3) If the licensee fails to provide proof of insurance coverage
22within the period described in paragraph (2), the bureau may
23automatically suspend the license.

end insert

24(g) Where the license of a limited liability company is suspended
25pursuant to subdivision (f), each member of the limited liability
26company shall be personally liable up to one million dollars
27($1,000,000) each for damages resulting to third parties in
28connection with the company’s performance, during the period of
29suspension, of any act or contract where a license is required by
30this chapter.

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

34
begin insert repealed.end insert

35begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 7599.34 of the end insertbegin insertBusiness and Professions
36Code
end insert
begin insert, as amended by Section 16 of Chapter 140 of the Statutes of
372015, is amended to read:end insert

38

7599.34.  

(a) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert conduct a business as an
39individual, partnership, or corporation unless the licensee holds a
40valid license issued to that exact same individual, partnership, or
P55   1corporation. A violation of this section may result in a fine ofbegin delete one
2hundred dollars ($100)end delete
begin insert five hundred dollars ($500)end insert for each
3violation.

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

5begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 7599.36 of the end insertbegin insertBusiness and Professions Codeend insert
6
begin insert is amended to read:end insert

7

7599.36.  

begin insert(a)end insertbegin insertend insert Each licensee shall maintain a file or record
8containing the name, address, commencing date of employment,
9and position of each employee, and the date of termination. Those
10files and records shall be retained during the time of employment
11and for a period of not less than two years thereafter, and, together
12with usual payroll records, shall be available for inspection by the
13bureau, and copies thereof and information pertaining thereto or
14contained therein shall be submitted to the bureau upon written
15request. A violation concerning the maintenance of the files or
16 records may result in a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert two
17hundred fifty dollars ($250)end insert
for each violation.

begin delete

18 A

end delete

19begin insert(b)end insertbegin insertend insertbegin insertAend insert failure of a licensee to respond to the bureau’s request to
20forward copies of the files or records and information pertaining
21thereto or contained therein within 30 days of the bureau’s request
22may result in a fine ofbegin delete twenty-five dollars ($25) and ten dollars
23($10) for each additional day that elapses following the 30th day.end delete

24
begin insert two hundred fifty dollars ($250) for each violation.end insert

25begin insert

begin insertSEC. 65.end insert  

end insert

begin insertSection 7599.37 of the end insertbegin insertBusiness and Professions Codeend insert
26
begin insert is amended to read:end insert

27

7599.37.  

Each licensee shall maintain an accurate and current
28record of proof of completion of the course of training in the
29exercise of the power to arrest as required by Section 7598.1, by
30each of his or her employees. A violation of this section may result
31in a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert five hundred dollars ($500)end insert
32 for each violation.

33begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 7599.38 of the end insertbegin insertBusiness and Professions Codeend insert
34
begin insert is amended to read:end insert

35

7599.38.  

Each licensee shall certify an employee’s completion
36of the course of training in the exercise of power to arrest, or obtain
37proof that the training has been administered by a bureau-approved
38training facility, prior to allowing the employee to respond to an
39alarm system as required by Section 7598.1. A violation of this
P56   1section may result in a fine ofbegin delete one hundred dollars ($100)end deletebegin insert five
2hundred dollars ($500)end insert
for each violation.

3begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 7599.40 of the end insertbegin insertBusiness and Professions Codeend insert
4
begin insert is amended to read:end insert

5

7599.40.  

begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert allow any employee to carry
6a firearm or other deadly weapon without first ascertaining that
7the employee is proficient in the use of each weapon to be carried.
8A current and valid firearm qualification card which indicates the
9specific caliber of the firearm which may be carried shall be
10deemed evidence of proficiency. A firearm qualification permit is
11not valid unless the employee holds a valid, current registration
12card. With respect to other deadly weapons, evidence of proficiency
13 shall include a certificate from a training facility, certifying that
14the employee is proficient in the use of that particular deadly
15weapon. A violation of this section may result in a fine of two
16begin delete hundred fifty dollars ($250)end deletebegin insert thousand five hundred dollars ($2,500)end insert
17 for each violation.

18begin insert

begin insertSEC. 68.end insert  

end insert

begin insertSection 7599.41 of the end insertbegin insertBusiness and Professions Codeend insert
19
begin insert is amended to read:end insert

20

7599.41.  

A licensee shall maintain an accurate and current
21record of all firearms or other deadly weapons that are in the
22possession of the licensee, or of any employee of the licensee,
23while on duty. The record shall contain the make, model, and serial
24number, or a description of any other deadly weapon, and the name
25of the person who has title of ownership. A violation of this section
26may result in a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert five hundred
27dollars ($500)end insert
for each violation.

28begin insert

begin insertSEC. 69.end insert  

end insert

begin insertSection 7599.42 of the end insertbegin insertBusiness and Professions
29Code
end insert
begin insert, as amended by Section 17 of Chapter 140 of the Statutes of
302015, is amended to read:end insert

31

7599.42.  

(a) Within seven days after any violent incident
32involving a dangerous weapon that has been caused by or occurred
33upon a licensee or any officer, partner, managing member, qualified
34manager, or employee of a licensee, while acting within the course
35and scope of his or her employment, and that results in bodily
36injury to any person or death of any person involved in that incident
37or of any discharge of a weapon, excluding any discharge which
38occurs on the range, the licensee or his or her manager shall mail
39or deliver to the chief a detailed report of the incident. The report
40shall describe fully the circumstances surrounding the incident,
P57   1any injuries or damages incurred, the identity of all participants,
2and whether a police investigation was conducted. A violation of
3this sectionbegin insert by a licensee or any officer, partner, managing
4member, or qualified managerend insert
may result in a fine ofbegin delete twenty-five
5dollars ($25)end delete
begin insert one thousand dollars ($1,000)end insert for the first violation
6andbegin delete one hundred dollars ($100)end deletebegin insert two thousand dollars ($2,000)end insert for
7each subsequent violation.begin insert end insertbegin insertA violation of this section by an
8employee of a licensee may result in a fine of five hundred dollars
9($500) for each violation.end insert

10(b) This section shall remain in effect only until January 1, 2019,
11and as of that date isbegin delete repealed, unless a later enacted statute, that
12is enacted before January 1, 2019, deletes or extends that date.end delete

13
begin insert repealed.end insert

14begin insert

begin insertSEC. 70.end insert  

end insert

begin insertSection 7599.42 of the end insertbegin insertBusiness and Professions
15Code
end insert
begin insert, as amended by Section 18 of Chapter 140 of the Statutes of
162015, is amended to read:end insert

17

7599.42.  

(a) Within seven days after any violent incident
18involving a dangerous weapon, that has been caused by or occurred
19upon a licensee or any officer, partner, qualified manager, or
20employee of a licensee, while acting within the course and scope
21of his or her employment, and that results in bodily injury to any
22person or death of any person involved in that incident or of any
23discharge of a weapon, excluding any discharge which occurs on
24the range, the licensee or his or her manager shall mail or deliver
25to the chief a detailed report of the incident. The report shall
26describe fully the circumstances surrounding the incident, any
27injuries or damages incurred, the identity of all participants, and
28whether a police investigation was conducted. A violation of this
29sectionbegin insert by a licensee or any officer, partner, or qualified managerend insert
30 may result in a fine ofbegin delete twenty-five dollars ($25)end deletebegin insert one thousand
31dollars ($1,000)end insert
for the first violation andbegin delete one hundred dollars
32($100)end delete
begin insert two thousand five hundred ($2,500)end insert for each subsequent
33violation.begin insert end insertbegin insertA violation of this section by an employee of a licensee
34may result in a fine of five hundred dollars ($500) for each
35violation.end insert

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

37begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 7599.44 of the end insertbegin insertBusiness and Professions Codeend insert
38
begin insert is amended to read:end insert

39

7599.44.  

Every advertisement by a licensee soliciting or
40advertising business shall contain his or her name and license
P58   1number as they appear in the records of the bureau. A violation of
2this section may result in abegin delete Notice of Warningend deletebegin insert fine of five hundred
3dollars ($500)end insert
for the firstbegin delete violation, and a fine of twenty-five
4dollars ($25)end delete
begin insert violation and one thousand dollars ($1,000)end insert for each
5subsequent violation.

6begin insert

begin insertSEC. 72.end insert  

end insert

begin insertSection 7599.45 of the end insertbegin insertBusiness and Professions Codeend insert
7
begin insert is amended to read:end insert

8

7599.45.  

begin deleteNo end deletebegin insertA end insertlicensee or employee of a licensee shallbegin insert notend insert
9 enter any private building or portion thereof, excepting premises
10open to the public, without the consent of the owner or the person
11in legal possession thereof. A violation of this section may result
12in a fine ofbegin delete twenty-five dollars ($25) for the first violation andend delete one
13hundred dollars ($100) for eachbegin delete subsequentend delete violation.

14begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 7599.54 of the end insertbegin insertBusiness and Professions Codeend insert
15
begin insert is amended to read:end insert

16

7599.54.  

begin insert(a)end insertbegin insertend insert Except as provided by Section 7599.56, every
17agreement, including, but not limited to, lease agreements,
18monitoring agreements, and service agreements, including all
19labor, services, and materials to be provided for the installation of
20an alarm system, shall be in writing. Except as provided by Section
217599.56, all amendments subject to the provisions of this section
22to an initial agreement shall be in writing. Each initial agreement
23shall contain, but not be limited to, the following:

begin delete

24(a)

end delete

25begin insert(1)end insert The name, business address, business telephone number,
26and license number of the licensed alarm company operator and
27the registration number of any alarm agent who solicited or
28negotiated the agreement.

begin delete

29(b)

end delete

30begin insert(2)end insert The approximate dates when the work will begin and be
31substantially completed.

begin delete

32(c)

end delete

33begin insert(3)end insert A description of the work to be done, a description of the
34materials to be used, and the agreed consideration for the work.

begin delete

35(d)

end delete

36begin insert(4)end insert A disclosure that alarm company operators are licensed and
37regulated by the Bureau of Security and Investigative Services,
38Department of Consumer Affairs,begin delete Sacramento, CA, 95814.end delete
39
begin insert including the bureau’s current address and contact information.end insert

begin delete

40(e)

end delete

P59   1begin insert(5)end insert A description of the alarm system including the major
2components thereof and services to be provided to the purchaser
3once the alarm is installed, including response or monitoring
4services, if any.

begin delete

5(f)

end delete

6begin insert(6)end insert Other matters agreed to by the parties of the contract. The
7agreement shall be legible and shall be in a form as to clearly
8describe any other document which is to be incorporated into the
9contract, and, before any work is done, the client shall be furnished
10with a copy of the written agreement signed by the licensee.

begin delete

11(g)

end delete

12begin insert(7)end insert A statement setting forth that upon completion of the
13installation of the alarm system, the alarm company shall
14thoroughly instruct the purchaser in the proper use of the alarm
15system.

begin delete

16(h)

end delete

17begin insert(8)end insert In the event a mechanic’s lien is to be utilized, a
18notice-to-owner statement which shall describe, in nontechnical
19language and in a clear and coherent manner using words with
20common and everyday meaning, the pertinent provisions of this
21state’s mechanics’ lien laws and the rights and responsibilities of
22an owner of property and a contractor thereunder, including the
23provisions relating to the filing of a contract concerning a work of
24improvement with the county recorder and the recording in the
25office of a contractor’s payment bond for private work.

begin insert

26
(9) For agreements entered into on or after January 1, 2017,
27that include an automatic renewal provision renewing the
28agreement for a period of more than one month, a clear and
29distinct disclosure shall be included separate from the terms and
30conditions of the agreement advising the consumer that the
31agreement he or she is entering into contains an automatic renewal
32provision. The disclosure shall include the length of time of the
33renewal term and specify that failure to provide notification of
34nonrenewal to the licensee, as required in the agreement, will
35result in the automatic renewal of the agreement. The consumer
36shall acknowledge being advised of the automatic renewal
37provision by signing or initialing the disclosure. The disclosure
38may be included on the same document as the three-day right to
39cancel form required by Section 1689.7 of the Civil Code. The
P60   1automatic renewal provision shall be void and invalid without a
2separate acknowledgment of the disclosure by the consumer.

end insert
begin delete

3(i)

end delete

4begin insert(10)end insert In addition to the above, every initial residential sales and
5lease agreement, the total cost which over the time period fixed
6by the agreement exceeds two hundred fifty dollars ($250),
7including the cost of all labor, service, or material to be provided
8by the licensee for the installation, shall include, but not be limited
9to, the following:

begin delete

10(1)

end delete

11begin insert(A)end insert A schedule of payments showing the amount of each
12payment as a sum in dollars and cents. This schedule of payments
13shall be referenced to the amount of work for services to be
14performed or to any materials or equipment to be supplied.

begin delete

15(2)

end delete

16begin insert(B)end insert If the payment schedule contained in the agreement provides
17for abegin delete down paymentend deletebegin insert downpaymentend insert to be paid to the licensee by
18the owner or the tenant before commencement of the work, that
19begin delete down paymentend deletebegin insert downpaymentend insert shall not exceed one thousand dollars
20($1,000) or 10 percent of the contract price, excluding finance
21charges, whichever is the lesser.

begin delete

22(3)

end delete

23begin insert(C)end insert In no event shall the payment schedule provide that the
24licensee receive, nor shall the licensee actually receive, payment
25in excess of 100 percent of the value of the work performed on
26the project at any time, excluding finance charges, except that the
27licensee may receive an initialbegin delete down paymentend deletebegin insert downpaymentend insert
28 authorized by paragraph (2). A failure by the licensee, without
29legal excuse, to substantially commence work within 20 days of
30the approximate date specified in the contract when work is to
31commence, shall postpone the next succeeding payment to the
32licensee for that period of time equivalent to the time between
33when substantial commencement was to have occurred and when
34it did occur.

begin delete

35(4)

end delete

36begin insert(D)end insert A notice-to-owner statement which shall describe, in
37nontechnical language and in a clear and coherent manner using
38words with common and everyday meaning, the pertinent
39provisions of this state’s mechanics’ lien laws and the rights and
40responsibilities of an owner of property and a contractor thereunder,
P61   1including the provisions relating to the filing of a contract
2concerning a work of improvement with the county recorder and
3the recording in the office of a contractor’s payment bond for
4private work.

begin delete

5(5)

end delete

6begin insert(E)end insert A description of what constitutes substantial commencement
7of work pursuant to the contract.

begin delete

8(6)

end delete

9begin insert(F)end insert A disclosure that failure by the licensee, without legal
10excuse, to substantially commence work within 20 days from the
11approximate date specified in the agreement when the work will
12begin is a violation of the Alarm Company Act.

begin delete

13(7)

end delete

14begin insert(G)end insert A disclosure informing the buyer of any potential permit
15fees which may be required by local jurisdictions concerning the
16monitoring of an existing alarm system.

begin delete

17(8)

end delete

18begin insert(H)end insert This section shall not be construed to prohibit the parties
19to a residential alarm system sale contract from agreeing to a
20contract or account subject to Chapter 1 (commencing with Section
211801) of Title 2 of Part 4 of Division 3 of the Civil Code.

begin delete

22 A

end delete

23begin insert(b)end insertbegin insertend insertbegin insertAend insert violation of this section or failure to commence work
24pursuant tobegin insert subparagraph (F) ofend insert paragraphbegin delete (6)end deletebegin insert (10)end insert of subdivision
25begin delete (h)end deletebegin insert (a)end insert may result in a fine of one hundred dollars ($100) for the
26first violation and abegin delete five hundred dollar ($500)end delete finebegin insert of five hundred
27dollars ($500)end insert
for each subsequent violation.

28begin insert

begin insertSEC. 74.end insert  

end insert

begin insertSection 7599.59 of the end insertbegin insertBusiness and Professions Codeend insert
29
begin insert is amended to read:end insert

30

7599.59.  

The director may assess administrative finesbegin insert of fifty
31dollars ($50)end insert
against any licensee, qualified certificate holder,
32firearms qualification card holder, or registrant forbegin insert each violation
33forend insert
failure to notify the bureau within 30 days of any change of
34residence or business address.

begin delete

35(a) The fine shall be twenty-five dollars ($25) for each violation
36by a licensee or qualified certificate holder.

end delete
begin delete

37(b) The fine shall be fifteen dollars ($15) for each violation by
38a firearms qualification card holder or registrant.

end delete
P62   1begin insert

begin insertSEC. 75.end insert  

end insert

begin insertArticle 15 (commencing with Section 7599.80) is
2added to Chapter 11.6 of Division 3 of the end insert
begin insertBusiness and
3Professions Code
end insert
begin insert, to read:end insert

begin insert

4 

5Article begin insert15.end insert  Review
6

 

7

begin insert7599.80.end insert  

Notwithstanding any other law, the powers and duties
8of the bureau, as set forth in this chapter, shall be subject to review
9by the appropriate policy committees of the Legislature. The review
10shall be performed as if this chapter were scheduled to be repealed
11as of January 1, 2020.

end insert
12

begin deleteSECTION 1.end delete
13
begin insertSEC. 7end insertbegin insert6.end insert  

Section 10050 of the Business and Professions Code
14 is amended to read:

15

10050.  

(a) (1) There is in the Department of Consumer Affairs
16a Bureau of Real Estate, the chief officer of which bureau is named
17the Real Estate Commissioner.

18(2) Notwithstanding any other law, the powers and duties of the
19bureau, as set forth in this part and Chapter 1 (commencing with
20Section 11000) of Part 2, shall be subject to review by the
21appropriate policy committees of the Legislature. The review shall
22be performed as if this part and that chapter were scheduled to be
23repealed as of January 1, 2021.

24(b) It shall be the principal responsibility of the commissioner
25to enforce all laws in this part and Chapter 1 (commencing with
26Section 11000) of Part 2 in a manner that achieves the maximum
27protection for the purchasers of real property and those persons
28dealing with real estate licensees.

29(c) Wherever the term “commissioner” is used in this division,
30it means the Real Estate Commissioner.

31

begin deleteSEC. 2.end delete
32
begin insertSEC. 77.end insert  

Section 10177 of the Business and Professions Code
33 is amended to read:

34

10177.  

The commissioner may suspend or revoke the license
35of a real estate licensee, delay the renewal of a license of a real
36estate licensee, or deny the issuance of a license to an applicant,
37who has done any of the following, or may suspend or revoke the
38license of a corporation, delay the renewal of a license of a
39corporation, or deny the issuance of a license to a corporation, if
P63   1an officer, director, or person owning or controlling 10 percent or
2more of the corporation’s stock has done any of the following:

3(a) Procured, or attempted to procure, a real estate license or
4license renewal, for himself or herself or a salesperson, by fraud,
5misrepresentation, or deceit, or by making a material misstatement
6of fact in an application for a real estate license, license renewal,
7or reinstatement.

8(b) (1) Entered a plea of guilty or nolo contendere to, or been
9found guilty of, or been convicted of, a felony, or a crime
10substantially related to the qualifications, functions, or duties of a
11real estate licensee, and the time for appeal has elapsed or the
12judgment of conviction has been affirmed on appeal, irrespective
13of an order granting probation following that conviction,
14suspending the imposition of sentence, or of a subsequent order
15under Section 1203.4 of the Penal Code allowing that licensee to
16withdraw his or her plea of guilty and to enter a plea of not guilty,
17or dismissing the accusation or information.

18(2) Notwithstanding paragraph (1), and with the recognition
19 that sentencing may not occur for months or years following the
20entry of a guilty plea,begin delete the commissioner may suspend the license
21of a real estate licensee upon the entry by the licensee of a guilty
22plea to any of the crimes described in paragraph (1).end delete
begin insert upon receipt
23of the certified copy of the entered plea, if after a hearing
24conducted pursuant to Section 10100 before an administrative law
25judge from the Office of Administrative Hearings, it is determined
26that the licensee has entered a guilty plea to a felony or crime
27substanitally related to the qualifications, functions, or duties of
28a real estate licensee, the commissioner may suspend the license
29or endorsement of the bureau until the time for appeal has elapsed,
30if no appeal has been taken, or until the judgment of conviction
31has been affirmed on appeal or has otherwise become final, and
32until further order of the bureau.end insert
If the guilty plea is withdrawn,
33the suspension shall be rescinded and the license reinstated to its
34status prior to the suspension.begin delete The bureau shall notify a person
35whose license is subject to suspension pursuant to this paragraph
36of his or her right to elect to have the issue of the suspension heard
37in accordance with Section 10100.end delete

38(c) Knowingly authorized, directed, connived at, or aided in the
39publication, advertisement, distribution, or circulation of a material
40false statement or representation concerning his or her designation
P64   1or certification of special education, credential, trade organization
2membership, or business, or concerning a business opportunity or
3a land or subdivision, as defined in Chapter 1 (commencing with
4Section 11000) of Part 2, offered for sale.

5(d) Willfully disregarded or violated the Real Estate Law (Part
61 (commencing with Section 10000)) or Chapter 1 (commencing
7with Section 11000) of Part 2 or the rules and regulations of the
8commissioner for the administration and enforcement of the Real
9Estate Law and Chapter 1 (commencing with Section 11000) of
10Part 2.

11(e) Willfully used the term “realtor” or a trade name or insignia
12of membership in a real estate organization of which the licensee
13is not a member.

14(f) Acted or conducted himself or herself in a manner that would
15have warranted the denial of his or her application for a real estate
16license, or either had a license denied or had a license issued by
17another agency of this state, another state, or the federal
18government revoked or suspended for acts that, if done by a real
19estate licensee, would be grounds for the suspension or revocation
20of a California real estate license, if the action of denial, revocation,
21or suspension by the other agency or entity was taken only after
22giving the licensee or applicant fair notice of the charges, an
23opportunity for a hearing, and other due process protections
24comparable to the Administrative Procedure Act (Chapter 3.5
25(commencing with Section 11340), Chapter 4 (commencing with
26Section 11370), and Chapter 5 (commencing with Section 11500)
27of Part 1 of Division 3 of Title 2 of the Government Code), and
28only upon an express finding of a violation of law by the agency
29or entity.

30(g) Demonstrated negligence or incompetence in performing
31an act for which he or she is required to hold a license.

32(h) As a broker licensee, failed to exercise reasonable
33supervision over the activities of his or her salespersons, or, as the
34officer designated by a corporate broker licensee, failed to exercise
35reasonable supervision and control of the activities of the
36corporation for which a real estate license is required.

37(i) Used his or her employment by a governmental agency in a
38capacity giving access to records, other than public records, in a
39manner that violates the confidential nature of the records.

P65   1(j) Engaged in any other conduct, whether of the same or a
2different character than specified in this section, that constitutes
3fraud or dishonest dealing.

4(k) Violated any of the terms, conditions, restrictions, and
5limitations contained in an order granting a restricted license.

6(l) (1) Solicited or induced the sale, lease, or listing for sale or
7lease of residential property on the ground, wholly or in part, of
8loss of value, increase in crime, or decline of the quality of the
9schools due to the present or prospective entry into the
10neighborhood of a person or persons having a characteristic listed
11in subdivision (a) or (d) of Section 12955 of the Government Code,
12as those characteristics are defined in Sections 12926 and 12926.1,
13subdivision (m) and paragraph (1) of subdivision (p) of Section
1412955, and Section 12955.2 of the Government Code.

15(2) Notwithstanding paragraph (1), with respect to familial
16status, paragraph (1) shall not be construed to apply to housing for
17older persons, as defined in Section 12955.9 of the Government
18Code. With respect to familial status, nothing in paragraph (1)
19shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
20and 799.5 of the Civil Code, relating to housing for senior citizens.
21Subdivision (d) of Section 51 and Section 4760 of the Civil Code
22and subdivisions (n), (o), and (p) of Section 12955 of the
23Government Code shall apply to paragraph (1).

24(m) Violated the Franchise Investment Law (Division 5
25(commencing with Section 31000) of Title 4 of the Corporations
26Code) or regulations of the Commissioner of Corporations
27pertaining thereto.

28(n) Violated the Corporate Securities Law of 1968 (Division 1
29(commencing with Section 25000) of Title 4 of the Corporations
30Code) or the regulations of the Commissioner of Corporations
31pertaining thereto.

32(o) Failed to disclose to the buyer of real property, in a
33transaction in which the licensee is an agent for the buyer, the
34 nature and extent of a licensee’s direct or indirect ownership
35interest in that real property. The direct or indirect ownership
36interest in the property by a person related to the licensee by blood
37or marriage, by an entity in which the licensee has an ownership
38interest, or by any other person with whom the licensee has a
39special relationship shall be disclosed to the buyer.

40(p) Violated Article 6 (commencing with Section 10237).

P66   1(q) Violated or failed to comply with Chapter 2 (commencing
2with Section 2920) of Title 14 of Part 4 of Division 3 of the Civil
3Code, related to mortgages.

4If a real estate broker that is a corporation has not done any of
5the foregoing acts, either directly or through its employees, agents,
6officers, directors, or persons owning or controlling 10 percent or
7more of the corporation’s stock, the commissioner may not deny
8the issuance or delay the renewal of a real estate license to, or
9suspend or revoke the real estate license of, the corporation,
10provided that any offending officer, director, or stockholder, who
11has done any of the foregoing acts individually and not on behalf
12of the corporation, has been completely disassociated from any
13affiliation or ownership in the corporation. A decision by the
14commissioner to delay the renewal of a real estate license shall
15toll the expiration of that license until the results of any pending
16disciplinary actions against that licensee are final, or until the
17licensee voluntarily surrenders his, her, or its license, whichever
18is earlier.

19

begin deleteSEC. 3.end delete
20
begin insertSEC. 78.end insert  

Section 11301 of the Business and Professions Code
21 is amended to read:

22

11301.  

(a) (1) There is hereby created within the Department
23of Consumer Affairs a Bureau of Real Estate Appraisers to
24administer and enforce this part.

25(2) Notwithstanding any other law, the powers and duties of the
26bureau, as set forth in this part, shall be subject to review by the
27appropriate policy committees of the Legislature. The review shall
28be performed as if this part were scheduled to be repealed as of
29January 1, 2021.

30(b) Whenever the term “Office of Real Estate Appraisers”
31appears in any other law, it means the “Bureau of Real Estate
32Appraisers.”

33

begin deleteSEC. 4.end delete
34
begin insertSEC. 7end insertbegin insert9.end insert  

Section 11320 of the Business and Professions Code
35 is amended to read:

36

11320.  

No person shall engage in federally related real estate
37appraisal activity governed by this part or assume or use the title
38of or any title designation or abbreviation as a licensed appraiser
39in this state without an active license as defined in Section 11302.
40Any person who willfully violates this provision is guilty of a
P67   1public offense punishable by imprisonment pursuant to subdivision
2(h) of Section 1170 of the Penal Code, or in a county jail for not
3more than one year, or by a fine not exceeding ten thousand dollars
4($10,000), or by both the imprisonment and fine. The possession
5of a license issued pursuant to this part does not preempt the
6application of other statutes including the requirement for
7specialized training or licensure pursuant to Article 3 (commencing
8 with Section 750) of Chapter 2.5 of Division 1 of the Public
9Resources Code.

10

begin deleteSEC. 5.end delete
11
begin insertSEC. 80.end insert  

Section 11328 of the Business and Professions Code
12 is amended to read:

13

11328.  

To substantiate documentation of appraisal experience,
14or to facilitate the investigation of illegal or unethical activities by
15a licensee, applicant, or other person acting in a capacity that
16requires a license, that licensee, applicant, or person shall, upon
17the request of the director, submit copies of the engagement letters,
18appraisals, or any work product which is addressed by the Uniform
19Standards of Professional Appraisal Practice, and all supporting
20documentation and data to the office. This material shall be
21confidential in accordance with the confidentiality provisions of
22the Uniform Standards of Professional Appraisal Practice.

23

begin deleteSEC. 6.end delete
24
begin insertSEC. 8end insertbegin insert1.end insert  

Section 11340 of the Business and Professions Code
25 is amended to read:

26

11340.  

The director shall adopt regulations governing the
27process and the procedure of applying for a license which shall
28include, but not be limited to, necessary experience or education,
29equivalency, and minimum requirements of the Appraisal
30Foundation, if any.

31(a) For purposes of the educational background requirements
32established under this section, the director shall do both of the
33following:

34(1) Grant credits for any courses taken on real estate appraisal
35ethics or practices pursuant to Section 10153.2, or which are
36deemed by the director to meet standards established pursuant to
37this part and federal law.

38(2) Require the completion of a course on state and federal laws
39regulating the appraisal profession, as approved by the bureau
40every two years. The course shall include an examination that
P68   1requires an applicant to demonstrate the applicant’s knowledge of
2those laws.

3(b) For the purpose of implementing and applying this section,
4the director shall prescribe by regulation “equivalent courses” and
5“equivalent experience.” The experience of employees of an
6assessor’s office or of the State Board of Equalization in setting
7 forth opinions of value of real property for tax purposes shall be
8deemed equivalent to experience in federally related real estate
9appraisal activity. Notwithstanding any other law, a holder of a
10valid real estate broker license shall be deemed to have completed
11appraisal license application experience requirements upon proof
12that he or she has accumulated 1,000 hours of experience in the
13valuation of real property.

14(c) The director shall adopt regulations for licensure which shall
15meet, at a minimum, the requirements and standards established
16by the Appraisal Foundation and the federal financial institutions
17regulatory agencies acting pursuant to Section 1112 of the Financial
18Institutions Reform Recovery and Enforcement Act of 1989
19(FIRREA) (Public Law 101-73). The director shall, by regulation,
20require the application for a real estate appraiser license to include
21the applicant’s social security number or individual taxpayer
22identification number.

23(d) In evaluating the experience of any applicant for a license,
24regardless of the number of hours required of that applicant, the
25director shall apply the same standards to the experience of all
26applicants.

27(e) No license shall be issued to an applicant who is less than
2818 years of age.

29

begin deleteSEC. 7.end delete
30
begin insertSEC. 82.end insert  

No reimbursement is required by this act pursuant to
31Section 6 of Article XIII B of the California Constitution because
32the only costs that may be incurred by a local agency or school
33district will be incurred because this act creates a new crime or
34infraction, eliminates a crime or infraction, or changes the penalty
35for a crime or infraction, within the meaning of Section 17556 of
36the Government Code, or changes the definition of a crime within
37the meaning of Section 6 of Article XIII B of the California
38Constitution.



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