BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1077
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1077 (Price) - As Amended:  June 27, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 0 
                        Judiciary                             9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill authorizes a licensed alarm company to be organized as 
          a limited liability company (LLC) until January 1, 2016, and 
          authorizes the Bureau of Security and Investigate Services 
          (BSIS) to cite unlicensed alarm company operators.   
          Specifically, this bill:   

          1)Establishes a comprehensive system for BSIS to cite and issue 
            fines up to $5,000 to a person for unlicensed activity under 
            the Act.

          2)Authorizes a licensed alarm company to be organized as an LLC 
            until January 1, 2016, and makes conforming changes to the 
            licensing provisions of the Alarm Company Act.

          3)Authorizes an alarm company to apply with BSIS to assign the 
            license to another business entity as long as the direct and 
            indirect owners are unchanged.  

          4)Establishes a processing fee not to exceed $125 for the 
            assignment of an alarm company operator license. 

           FISCAL EFFECT  

          1)Costs associated with this legislation would be minor and 
            absorbable within existing BSIS resources. 

          2)Allowing BSIS to issue citations to unlicensed practitioners 
            would likely result in about $40,000 per year in increased 
            revenue. (Private Security Services Fund)








                                                                  SB 1077
                                                                  Page  2


           COMMENTS  

           1)Purpose  . This bill makes minor changes to Alarm Company Act. 
            It allows alarm companies to form a business as a LLC and 
            specifies that the applicant must provide specific information 
            and documents with his/her application regarding licensure as 
            a burglar alarm company.  It will also allow existing 
            licensees to change their business structure, with the 
            approval of BSIS, as long as the current principles of the 
            business remain the same at the time of the change. Finally, 
            this bill gives BSIS the ability to cite unlicensed 
            individuals who are operating alarm companies. 

           2)Background  . Currently, BSIS licenses approximately 18,604 
            alarm companies, qualified managers and alarm employees.  In 
            2011-12, BSIS received approximately 286 complaints regarding 
            alarm companies and their employees.  Many of the complaints 
            were regarding unlicensed practitioners.  Currently, BSIS 
            conducts investigations into these types of complaints but has 
            no authority to take action against the unlicensed 
            practitioners if found at fault.  



          Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081