Amended in Assembly August 19, 2016

Amended in Assembly August 15, 2016

Amended in Assembly June 20, 2016

Amended in Senate April 12, 2016

Senate Bill No. 1196

Introduced by Senator Hill

(Principal coauthor: Assembly Member Salas)

February 18, 2016

An act to amend Sections 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, 10050, 10177, 11301, 11320, 11328, and 11340 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, the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 1196, as amended, Hill. Professions and vocations: Bureau of Real Estate, Bureau of Real Estate Appraisers, and Bureau of Security and Investigative Services.

(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.

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.

(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.

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.

(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.

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.

(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.

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.

(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.

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.

(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 begin delete existing law, end delete begin insert that act, end insert 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. begin delete Existing law end delete begin insert That act requires a person required to be registered as a security guard to carry a valid and current security guard registration card on his or her person, while on duty, and end insert also requires a person registered as a security begin insert guard end insert 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.

This bill would additionally impose the reporting duties upon the employer of the security guard or patrolperson. begin insert The bill would authorize a person required to be registered as a security guard, while pending receipt of the security guard registration card after the bureau’s approval, to be on duty if the person carries on his or her person both a hardcopy printout of the approved security guard registration information from the bureau’s Internet Web site and a valid picture identification. end 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.

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

(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 begin insert the applicant has filed with the bureau a classifiable fingerprint card and that end insert 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. begin insert Existing law prohibits a person required to be registered as a security guard from carrying or using a firearm unless he or she possesses a valid and current firearms permit and requires that person to carry the permit on his or her person when carrying a firearm on duty. end insert

This bill would provide for the association of a firearms permit with the license or registration of the applicant, as specified. begin insert The bill would authorize an applicant for a firearms permit to, in lieu of submitting a classifiable fingerprint card, submit fingerprints into an electronic fingerprinting system administered by the Department of Justice, as specified. end insert 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. begin insert The bill would authorize a person required to be registered as a security guard, while pending receipt of the firearms permit after the bureau’s approval, to carry a firearm while on duty if the person carries on his or her person both a hardcopy printout of the approved firearms permit information from the bureau’s Internet Web site and a valid picture identification. end 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.

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.

(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.

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.

(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.

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.

(12) Existing 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 requires 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 would begin delete authorize the Bureau of Real Estate, upon receipt of the certified copy of the plea and after a hearing, to suspend the license of a real estate licensee until the time for appeal has elapsed and end delete begin insert further authorize the Real Estate Commissioner to suspend the license of a real estate license upon the entry of a guilty plea by the licensee to any of the crimes described above. The bill end insert would require the begin delete commissioner to rescind end delete begin insert recission of end insert 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.

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

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:

SECTION 1.  

Section 205 of the Business and Professions
Code, as added by Chapter 510 of the Statutes of 2015, is amended
to read:

205.  

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

(1) Accountancy Fund.

(2) California Architects Board Fund.

(3) Athletic Commission Fund.

(4) Barbering and Cosmetology Contingent Fund.

(5) Cemetery and Funeral Fund.

(6) Contractors’ License Fund.

(7) State Dentistry Fund.

(8) Guide Dogs for the Blind Fund.

(9) Home Furnishings and Thermal Insulation Fund.

(10) California Architects Board-Landscape Architects Fund.

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

(12) Optometry Fund.

(13) Pharmacy Board Contingent Fund.

(14) Physical Therapy Fund.

(15) Private Investigator Fund.

(16) Private Security Services Fund.

(17) Professional Engineer’s, Land Surveyor’s, and Geologist’s
Fund.

(18) Consumer Affairs Fund.

(19) Behavioral Sciences Fund.

(20) Licensed Midwifery Fund.

(21) Court Reporters’ Fund.

(22) Veterinary Medical Board Contingent Fund.

(23) Vocational Nursing and Psychiatric Technicians Fund.

(24) Electronic and Appliance Repair Fund.

(25) Dispensing Opticians Fund.

(26) Acupuncture Fund.

(27) Physician Assistant Fund.

(28) Board of Podiatric Medicine Fund.

(29) Psychology Fund.

(30) Respiratory Care Fund.

(31) Speech-Language Pathology and Audiology and Hearing
Aid Dispensers Fund.

(32) Board of Registered Nursing Fund.

(33) Animal Health Technician Examining Committee Fund.

(34) State Dental Hygiene Fund.

(35) State Dental Assistant Fund.

(36) Structural Pest Control Fund.

(37) Structural Pest Control Eradication and Enforcement Fund.

(38) Structural Pest Control Research Fund.

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

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

SEC. 2.  

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

 

Article 10.  Review

 

6981.  

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

SEC. 3.  

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

7507.6.  

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

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

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

SEC. 4.  

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

7508.1.  

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

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

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

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

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

SEC. 5.  

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

7508.2.  

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

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

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

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

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

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

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

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

SEC. 6.  

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

7508.3.  

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

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

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

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

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

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

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

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

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

(i) The use of any deceptive forms.

SEC. 7.  

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

7508.4.  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 8.  

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

7508.6.  

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

SEC. 9.  

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

 

Article 12.  Review

 

7511.5.  

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

SEC. 10.  

Section 7520.3 of the Business and Professions Code
is amended to read:

7520.3.  

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

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

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

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

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

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

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

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

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

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

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

SEC. 11.  

Section 7525.1 of the Business and Professions Code,
as amended by Section 5 of Chapter 635 of the Statutes of 2015,
is amended to read:

7525.1.  

An application shall be verified and shall include:

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 12.  

Section 7533.5 of the Business and Professions Code
is amended to read:

7533.5.  

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

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

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

SEC. 13.  

Section 7533.5 is added to the Business and
Professions Code, to read:

7533.5.  

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

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

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

SEC. 14.  

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

7542.  

(a) A licensee and qualified manager who in the course
of his or her employment or business carries a deadly weapon shall
complete a course of training in the exercise of the powers to arrest
as specified in Section 7583.7 and a course of training in the
carrying and use of firearms as specified in Article 4 (commencing
with Section 7583) of Chapter 11.5. A licensee or qualified
manager shall not carry or use a firearm unless he or she has met
the requirements of Sections 7583.23, 7583.24, and 7583.28 and
has in his or her possession a valid firearms qualification card. A
licensee or qualified manager who possesses a valid firearms
qualification card shall comply with, and be subject to, Sections
7583.25, 7583.26, 7583.27, 7583.30, 7583.31, 7583.32, and
7583.37. A licensee or qualified manager who possesses a valid
firearms qualification card may carry a firearm capable of being
concealed upon the person in a concealed manner if he or she
complies with applicable provisions set forth in Chapter 4
(commencing with Section 26150) of Division 5 of Title 4 of Part
6 of the Penal Code.

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

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

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

SEC. 15.  

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

7563.  

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

SEC. 16.  

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

7566.  

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

SEC. 17.  

Section 7570 of the Business and Professions Code,
as amended by Section 16 of Chapter 669 of the Statutes of 2014,
is amended to read:

7570.  

The fees prescribed by this chapter are as follows:

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

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

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

(d) The renewal fee is as follows:

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

(2) For a branch office certificate for a private investigator, the
fee shall not exceed thirty dollars ($30).

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

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

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

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

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

SEC. 18.  

Section 7570 of the Business and Professions Code,
as added by Section 17 of Chapter 669 of the Statutes of 2014, is
amended to read:

7570.  

The fees prescribed by this chapter are as follows:

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

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

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

(d) The renewal fee is as follows:

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

(2) For a branch office certificate for a private investigator, the
fee shall not exceed thirty dollars ($30).

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

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

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

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

SEC. 19.  

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

 

Article 8.  Review

 

7573.5.  

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

SEC. 20.  

Section 7574.21 of the Business and Professions
Code is amended to read:

7574.21.  

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

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

(b) Maintain an accurate and current record of proof of
completion by each proprietary private security officer of the
training described in Section 7574.18.

SEC. 21.  

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

 

Article 6.  Review

 

7576.  

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

SEC. 22.  

Section 7583.3 of the Business and Professions Code
is amended to read:

7583.3.  

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

(a) Fail to carry on his or her person, while on duty, a valid and
current security guard registration begin delete card. end delete begin insert card, or if pending receipt
of the registration card after the bureau’s approval, a hardcopy
printout of the approved security guard registration information
from the bureau’s Internet Web site and a valid picture
identification pursuant to Section 7583.17. end insert

(b) Fail to carry on his or her person begin delete a valid and current firearms
permit end delete when carrying a firearm on begin delete duty. end delete begin insert duty either a valid and
current firearms permit, or if pending receipt of the permit after
the bureau’s approval, a hardcopy printout of the approved
firearms permit information from the bureau’s Internet Web site
and a valid picture identification pursuant to Section 7583.12. end insert

(c) Carry or use a firearm unless he or she possesses a valid and
current firearms permit that is associated with a valid and current
security guard registration issued pursuant to this chapter.

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

SEC. 23.  

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

7583.4.  

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

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

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

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

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

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

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

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

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

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

SEC. 24.  

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

7583.6.  

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

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

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

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

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

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

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

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

SEC. 25.  

Section 7583.9 of the Business and Professions Code
is amended to read:

7583.9.  

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

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

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

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

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

(1) Every conviction rendered against the applicant.

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

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

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

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

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

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

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

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

(i) (1) Peace officers exempt from obtaining a firearm
qualification card pursuant to subdivision (e) of Section 7583.12
shall submit to the bureau with their application for registration a
letter of approval from his or her primary employer authorizing
him or her to carry a firearm while working as a security guard or
security officer.

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

(j)  In addition to the amount authorized pursuant to Section
7570.1, the bureau may impose an additional fee not to exceed
three dollars ($3) for processing classifiable fingerprint cards
submitted by applicants excluding those submitted into an
electronic fingerprint system using electronic fingerprint
technology.

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

SEC. 26.  

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

7583.12.  

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

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

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

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

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

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

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

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

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

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

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

SEC. 27.  

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

7583.22.  

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

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

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

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

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

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

SEC. 28.  

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

7583.23.  

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

(a) The applicant is a licensee, a qualified manager of a licensee,
or a registered security guard subject to begin delete both of end delete the following:

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

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

(B) A partner of a partnership licensee, pursuant to Section
7582.7 or 7525.1.

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

(D) A security guard registrant.

(2) If the firearms permit is associated with a security guard
registration, he or she is subject to the provisions of Section
7583.47, regardless of any other license possessed or associated
with the firearms permit.

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

(c) The applicant has filed with the bureau a classifiable
fingerprint card, a completed application for a firearms permit on
a form prescribed by the director, dated and signed by the applicant,
certifying under penalty of perjury that the information in the
application is true and correct. begin insert In lieu of a classifiable fingerprint
card, the applicant may submit fingerprints into an electronic
fingerprinting system administered by the Department of Justice.
An applicant who submits his or her fingerprints by electronic
means shall have his or her fingerprints entered into the system
through a terminal operated by a law enforcement agency or other
facility authorized by the Department of Justice to conduct
electronic fingerprinting. The terminal operator may charge a fee
sufficient to reimburse it for the costs incurred in providing this
service. end insert

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

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

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

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

SEC. 29.  

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

7583.24.  

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

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

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

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

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

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

SEC. 30.  

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

7583.25.  

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

(b) Before renewing a firearm permit, the bureau shall provide
the Department of Justice with the information necessary to identify
the renewal applicant.

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

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

SEC. 31.  

Section 7583.27 of the Business and Professions
Code is amended to read:

7583.27.  

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

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

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

(A) Assault.

(B) Battery.

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

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

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

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

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

SEC. 32.  

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

7583.29.  

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

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

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

SEC. 33.  

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

7583.32.  

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

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

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

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

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

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

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

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

SEC. 34.  

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

7583.33.  

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

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

SEC. 35.  

Section 7583.37 of the Business and Professions
Code is amended to read:

7583.37.  

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

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

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

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

(2) Brandishing a weapon.

(3) Drawing a weapon without proper cause.

(4) Provoking a shooting incident without cause.

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

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

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

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

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

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

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

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

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

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

SEC. 36.  

Section 7583.39 of the Business and Professions
Code is amended to read:

7583.39.  

(a) The bureau shall require, as a condition precedent
to the issuance, reinstatement, reactivation, renewal, or continued
maintenance of a license, that the applicant or licensee file or have
on file with the bureau, an insurance policy, as defined in Section
7583.40.

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

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

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

(A) The name of the insured.

(B) The licensee’s license number.

(C) The policy number.

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

(E) The cancellation date, if applicable.

SEC. 37.  

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

7583.47.  

(a) As used in this section, “assessment” means the
application of a testing instrument identified by the bureau that
evaluates whether an applicant for a firearms permit who is a
registered security guard, at the time of the assessment, possesses
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.

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

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

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

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

(B) Identifying minimum standards for the assessment.

(C) Evaluating currently available assessments.

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

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

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

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

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

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

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

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

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

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

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

(g) The bureau may prescribe, adopt, and enforce emergency
regulations, and promulgate regulations to implement this section.
Any emergency regulation prescribed, adopted, or enforced
pursuant to this section shall be adopted in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code, and for purposes of that chapter,
including Section 11349.6 of the Government Code, the adoption
of the regulation is an emergency and shall be considered by the
Office of Administrative Law as necessary for the immediate
preservation of the public peace, health and safety, and general
welfare.

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

SEC. 38.  

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

7585.4.1.  

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

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

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

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

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

SEC. 39.  

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

7587.8.  

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

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

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

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

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

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

SEC. 40.  

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

7587.9.  

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

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

(b) Violation of subdivision (c) of Section 7583.3; five hundred
dollars ($500) for the first violation and one thousand dollars
($1,000) per violation for each violation thereafter.

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

SEC. 41.  

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

7587.10.  

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

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

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

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

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

SEC. 42.  

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

7587.12.  

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

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

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

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

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

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

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

SEC. 43.  

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

7587.14.  

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

SEC. 44.  

Section 7587.15 of the Business and Professions
Code is amended to read:

7587.15.  

Notwithstanding any other provision of law, the
director may assess a fine of up to five thousand dollars ($5,000)
per violation against any licensee for a failure to comply with
subdivision (e) of Section 7583.2.

SEC. 45.  

Section 7588 of the Business and Professions Code
is amended to read:

7588.  

The fees prescribed by this chapter are as follows:

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

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

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

(d) The renewal fee is as follows:

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

(2) For a branch office certificate for a private patrol operator,
the fee may not exceed seventy-five dollars ($75).

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 46.  

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

 

Article 9.  Review

 

7588.8.  

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

SEC. 47.  

Section 7591.11 of the Business and Professions
Code is amended to read:

7591.11.  

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

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

SEC. 48.  

Section 7596.3 of the Business and Professions Code
is amended to read:

7596.3.  

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

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

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

(2) A partner of a partnership licensee.

(3) A qualified manager of a licensee.

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

(5) A registered alarm agent.

(b) The applicant has filed with the bureau a classifiable
fingerprint card, a completed application for a firearms permit on
a form prescribed by the director, dated and signed by the applicant,
certifying under penalty of perjury that the information in the
application is true and correct. begin insert In lieu of a classifiable fingerprint
card, the applicant may submit fingerprints into an electronic
fingerprinting system administered by the Department of Justice.
An applicant who submits his or her fingerprints by electronic
means shall have his or her fingerprints entered into the system
through a terminal operated by a law enforcement agency or other
facility authorized by the Department of Justice to conduct
electronic fingerprinting. The terminal operator may charge a fee
sufficient to reimburse it for the costs incurred in providing this
service. end insert

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

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

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

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

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

SEC. 49.  

Section 7596.4 of the Business and Professions Code
is amended to read:

7596.4.  

(a) (1) If a firearms permit is denied, the denial of the
permit shall be in writing and shall describe the basis for the denial.
The denial shall inform the applicant that if he or she desires a
review by the Alarm Company Operator Disciplinary Review
Committee, the review shall be requested within 30 days of the
issuance of the denial.

(2) A review or hearing shall be held pursuant to Section
7591.19. However, no review or hearing shall be granted to an
individual who is otherwise prohibited by law from carrying a
firearm.

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

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

SEC. 50.  

Section 7596.8 of the Business and Professions Code
is amended to read:

7596.8.  

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

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

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

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

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

SEC. 51.  

Section 7596.83 of the Business and Professions
Code is amended to read:

7596.83.  

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

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

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

(A) Assault.

(B) Battery.

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

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

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

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

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

SEC. 52.  

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

7597.1.  

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

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

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

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

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

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

SEC. 53.  

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

7597.2.  

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

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

SEC. 54.  

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

7597.3.  

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

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

(2) Brandishing a weapon.

(3) Drawing a weapon without proper cause.

(4) Provoking a shooting incident without cause.

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

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

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

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

SEC. 55.  

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

7597.5.  

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

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

SEC. 56.  

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

7597.6.  

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

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

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

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

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

SEC. 57.  

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

7598.51.  

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

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

SEC. 58.  

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

7598.53.  

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

SEC. 59.  

Section 7599.32 of the Business and Professions
Code, as amended by Section 13 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.32.  

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

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

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

(d) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

SEC. 60.  

Section 7599.32 of the Business and Professions
Code, as amended by Section 14 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.32.  

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

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

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

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

SEC. 61.  

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

7599.33.  

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

SEC. 62.  

Section 7599.34 of the Business and Professions
Code, as amended by Section 15 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.34.  

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

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

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

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

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

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

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

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

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

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

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

(h) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

SEC. 63.  

Section 7599.34 of the Business and Professions
Code, as amended by Section 16 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.34.  

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

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

SEC. 64.  

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

7599.36.  

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

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

SEC. 65.  

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

7599.37.  

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

SEC. 66.  

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

7599.38.  

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

SEC. 67.  

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

7599.40.  

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

SEC. 68.  

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

7599.41.  

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

SEC. 69.  

Section 7599.42 of the Business and Professions
Code, as amended by Section 17 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.42.  

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

(b) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

SEC. 70.  

Section 7599.42 of the Business and Professions
Code, as amended by Section 18 of Chapter 140 of the Statutes of
2015, is amended to read:

7599.42.  

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

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

SEC. 71.  

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

7599.44.  

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

SEC. 72.  

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

7599.45.  

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

SEC. 73.  

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

7599.54.  

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

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

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

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

(4) A disclosure that alarm company operators are licensed and
regulated by the Bureau of Security and Investigative Services,
Department of Consumer Affairs, including the bureau’s current
address and contact information.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(b) A violation of this section or failure to commence work
pursuant to subparagraph (F) of paragraph (10) of subdivision (a)
may result in a fine of one hundred dollars ($100) for the first
violation and a fine of five hundred dollars ($500) for each
subsequent violation.

SEC. 74.  

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

7599.59.  

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

SEC. 75.  

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

 

Article 15.  Review

 

7599.80.  

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

SEC. 76.  

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

10050.  

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

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

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

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

SEC. 77.  

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

10177.  

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

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

(b) (1) 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, irrespective
of an order granting probation following that conviction,
suspending the imposition of sentence, or of a subsequent order
under Section 1203.4 of the Penal Code allowing that licensee to
withdraw his or her plea of guilty and to enter a plea of not guilty,
or dismissing the accusation or information.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 78.  

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

11301.  

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

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

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

SEC. 79.  

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

11320.  

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

SEC. 80.  

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

11328.  

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

SEC. 81.  

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

11340.  

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

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

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

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

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

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

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

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

SEC. 82.  

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