Senate BillNo. 468


Introduced by Senator Hill

February 25, 2015


An act to amend Section 7590.1 of the Business and Professions Code, relating to professions and vocations.

LEGISLATIVE COUNSEL’S DIGEST

SB 468, as introduced, Hill. Alarm Companies: limited liability companies.

Existing law, California Revised Uniform Limited Liability Company Act, authorizes a limited liability company to have any lawful purpose, except as specified, and authorizes a domestic or foreign limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the provisions of that code authorize a limited liability company or foreign limited liability company to hold that license, certificate, or registration.

Existing law, the Alarm Company Act, provides for the licensure and regulation of alarm company operators by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of the act a crime. Existing law, until January 1, 2016, authorizes an alarm company operator to conduct a business as a limited liability company if the alarm company operator holds a valid license issued to that exact same limited liability company. For purposes of the act, existing law, until January 1, 2016, defines a “licensee” to include a limited liability company.

This bill would extend the operation of that definition provision to January 1, 2020. Because a violation of the act by a limited liability company would be a crime, the bill would impose a state-mandated local program.

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:

P2    1

SECTION 1.  

Section 7590.1 of the Business and Professions
2Code
, as amended by Section 2 of Chapter 291 of the Statutes of
32012, is amended to read:

4

7590.1.  

The following terms as used in this chapter have the
5meaning expressed in this article:

6(a) “Person” means any individual, firm, company, association,
7organization, partnership, limited liability company, or corporation.

8(b) “Department” means the Department of Consumer Affairs.

9(c) “Director” means the Director of Consumer Affairs.

10(d) “Bureau” means the Bureau of Security and Investigative
11Services.

12(e) “Chief” means the Chief of the Bureau of Security and
13Investigative Services.

14(f) “Employer” means a person who employs an individual for
15wages or salary, lists the individual on the employer’s payroll
16records, and withholds all legally required deductions and
17contributions.

18(g) “Employee” means an individual who works for an
19employer, is listed on the employer’s payroll records, and is under
20the employer’s direction and control.

21(h) “Employer-employee relationship” means an individual who
22works for another and where the individual’s name appears on the
23payroll records of the employer.

24(i) “Licensee” means a business entity, whether an individual,
25partnership, limited liability company, or corporation licensed
26under this chapter.

27(j) “Qualified manager” means an individual who is in active
28control, management, and direction of the licensee’s business, and
29who is in possession of a current and valid qualified manager’s
30certificate pursuant to this chapter.

P3    1(k) “Registrant” means any person registered or who has applied
2for registration under this chapter.

3(l) “Branch office” means any location, other than the principal
4place of business of the licensee, which is licensed as set forth in
5Article 11 (commencing with Section 7599.20).

6(m) “Branch office manager” means an individual designated
7by the qualified manager to manage the licensee’s branch office
8and who has met the requirements as set forth in Article 11
9(commencing with Section 7599.20).

10(n) “Alarm system” means an assembly of equipment and
11 devices arranged to signal the presence of a hazard requiring urgent
12attention and to which police are expected to respond.

13(o) “Alarm agent” means a person employed by an alarm
14company operator whose duties include selling on premises,
15altering, installing, maintaining, moving, repairing, replacing,
16servicing, responding, or monitoring an alarm system, or a person
17who manages or supervises a person employed by an alarm
18company to perform any of the duties described in this subdivision
19or any person in training for any of the duties described in this
20subdivision.

21(p) “Deadly weapon” means and includes any instrument or
22weapon of the kind commonly known as a blackjack, slungshot,
23billy, sandclub, sandbag, metal knuckles; any dirk, dagger, pistol,
24revolver, or any other firearm; any knife having a blade longer
25than five inches; any razor with an unguarded blade; or any metal
26pipe or bar used or intended to be used as a club.

27(q) “Firearms permit” means a permit issued by the bureau,
28pursuant to Article 6 (commencing with Section 7596), to a
29licensee, a qualified manager, or an alarm agent, to carry an
30exposed firearm while on duty.

31(r) (1) “Advertisement” means:

32(A) Any written or printed communication for the purpose of
33soliciting, describing, or promoting the licensed business of the
34licensee, including a brochure, letter, pamphlet, newspaper,
35periodical, publication, or other writing.

36(B) A directory listing caused or permitted by the licensee which
37indicates his or her licensed activity.

38(C) A radio, television, or similar airwave transmission which
39solicits or promotes the licensed business of the licensee.

40(2) “Advertisement” does not include any of the following:

P4    1(A) Any printing or writing used on buildings, vehicles,
2uniforms, badges, or other property where the purpose of the
3printing or writing is identification.

4(B) Any printing or writing on communications, memoranda,
5or any other writings used in the ordinary course of business where
6the sole purpose of the writing is other than the solicitation or
7promotion of business.

8(C) Any printing or writing on novelty objects used in the
9promotion of the licensee’s business where the printing of the
10information required by this chapter would be impractical due to
11the available area or surface.

12(s) “Residential sales agreement” means and includes an
13agreement between an alarm company operator and an owner or
14tenant for the purchase of an alarm system to be utilized in the
15personal residence of the owner or tenant.

16(t) “Firearm permit” means and includes “firearms permit,”
17“firearms qualification card,” “firearms qualification,” and
18“firearms qualification permit.”

19(u) This section shall remain in effect only until January 1,begin delete 2016,end delete
20begin insert 2020,end insert and as of that date is repealed, unless a later enacted statute,
21that is enacted before January 1,begin delete 2016,end deletebegin insert 2020,end insert deletes or extends
22that date.

23

SEC. 2.  

Section 7590.1 of the Business and Professions Code,
24as added by Section 3 of Chapter 291 of the Statutes of 2012, is
25amended to read:

26

7590.1.  

The following terms as used in this chapter have the
27meaning expressed in this article:

28(a) “Person” means any individual, firm, company, association,
29organization, partnership, limited liability company, or corporation.

30(b) “Department” means the Department of Consumer Affairs.

31(c) “Director” means the Director of Consumer Affairs.

32(d) “Bureau” means the Bureau of Security and Investigative
33Services.

34(e) “Chief” means the Chief of the Bureau of Security and
35Investigative Services.

36(f) “Employer” means a person who employs an individual for
37wages or salary, lists the individual on the employer’s payroll
38records, and withholds all legally required deductions and
39contributions.

P5    1(g) “Employee” means an individual who works for an
2employer, is listed on the employer’s payroll records, and is under
3the employer’s direction and control.

4(h) “Employer-employee relationship” means an individual who
5works for another and where the individual’s name appears on the
6payroll records of the employer.

7(i) “Licensee” means a business entity, whether an individual,
8partnership, or corporation licensed under this chapter.

9(j) “Qualified manager” means an individual who is in active
10control, management, and direction of the licensee’s business, and
11who is in possession of a current and valid qualified manager’s
12certificate pursuant to this chapter.

13(k) “Registrant” means any person registered or who has applied
14for registration under this chapter.

15(l) “Branch office” means any location, other than the principal
16place of business of the licensee, which is licensed as set forth in
17Article 11 (commencing with Section 7599.20).

18(m) “Branch office manager” means an individual designated
19by the qualified manager to manage the licensee’s branch office
20and who has met the requirements as set forth in Article 11
21(commencing with Section 7599.20).

22(n) “Alarm system” means an assembly of equipment and
23devices arranged to signal the presence of a hazard requiring urgent
24attention and to which police are expected to respond.

25(o) “Alarm agent” means a person employed by an alarm
26company operator whose duties include selling on premises,
27altering, installing, maintaining, moving, repairing, replacing,
28servicing, responding, or monitoring an alarm system, or a person
29who manages or supervises a person employed by an alarm
30company to perform any of the duties described in this subdivision
31or any person in training for any of the duties described in this
32subdivision.

33(p) “Deadly weapon” means and includes any instrument or
34weapon of the kind commonly known as a blackjack, slungshot,
35billy, sandclub, sandbag, metal knuckles; any dirk, dagger, pistol,
36revolver, or any other firearm; any knife having a blade longer
37than five inches; any razor with an unguarded blade; or any metal
38pipe or bar used or intended to be used as a club.

39(q) “Firearms permit” means a permit issued by the bureau,
40pursuant to Article 6 (commencing with Section 7596), to a
P6    1licensee, a qualified manager, or an alarm agent, to carry an
2exposed firearm while on duty.

3(r) (1) “Advertisement” means:

4(A) Any written or printed communication for the purpose of
5soliciting, describing, or promoting the licensed business of the
6licensee, including a brochure, letter, pamphlet, newspaper,
7periodical, publication, or other writing.

8(B) A directory listing caused or permitted by the licensee which
9indicates his or her licensed activity.

10(C) A radio, television, or similar airwave transmission which
11solicits or promotes the licensed business of the licensee.

12(2) “Advertisement” does not include any of the following:

13(A) Any printing or writing used on buildings, vehicles,
14uniforms, badges, or other property where the purpose of the
15printing or writing is identification.

16(B) Any printing or writing on communications, memoranda,
17or any other writings used in the ordinary course of business where
18the sole purpose of the writing is other than the solicitation or
19promotion of business.

20(C) Any printing or writing on novelty objects used in the
21promotion of the licensee’s business where the printing of the
22information required by this chapter would be impractical due to
23the available area or surface.

24(s) “Residential sales agreement” means and includes an
25agreement between an alarm company operator and an owner or
26tenant for the purchase of an alarm system to be utilized in the
27personal residence of the owner or tenant.

28(t) “Firearm permit” means and includes “firearms permit,”
29“firearms qualification card,” “firearms qualification,” and
30“firearms qualification permit.”

31(u) This section shall become operative on January 1,begin delete 2016.end delete
32begin insert 2020.end insert

33

SEC. 3.  

No reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution because
35the only costs that may be incurred by a local agency or school
36district will be incurred because this act creates a new crime or
37infraction, eliminates a crime or infraction, or changes the penalty
38for a crime or infraction, within the meaning of Section 17556 of
39the Government Code, or changes the definition of a crime within
P7    1the meaning of Section 6 of Article XIII B of the California
2Constitution.



O

    99