the alarm company act
TRANSCRIPT
THE ALARM COMPANY ACT
The provisions of the Alarm Company Act1 are contained in the California Business and
Professions Code of 2009, starting from Section 7590 to Section 7599.75. This chapter
constitutes on alarm company operators and alarm agents.
Definitions (Sections7590.1 to 7590.2)
Section 7590.1 of the Act provides the definitions for the following:
(a) "Employer" means a person who employs an individual for wages or
salary, lists the individual on the employer's payroll records, and withholds
all legally required deductions and contributions.
(b) "Employee" means an individual who works for an employer, is listed on
the employer's payroll records, and is under the employer's direction and
control.
(c) "Qualified manager" means an individual who is in active control,
management, and direction of the licensee's business, and who is in
possession of a current and valid qualified manager's certificate pursuant to
this chapter.
(d) "Branch office" means any location, other than the principal place of
business of the licensee, which is licensed.
1 http://www.ccsalarmsystems.com/californiaalarmlawp1.html http://www.ccsalarmsystems.com/californiaalarmlawp2.html
(e) "Branch office manager" means an individual designated by the qualified
manager to manage the licensee's branch office and who has met the
requirements as set forth.
(f) "Alarm system" means an assembly of equipment and devices arranged to
signal the presence of a hazard requiring urgent attention and to which
police are expected to respond.
(g) "Alarm agent" means a person employed by an alarm company operator
whose duties include selling on premises, altering, installing, maintaining,
moving, repairing, replacing, servicing, responding, or monitoring an alarm
system, or a person who manages or supervises a person employed by an
alarm company to perform any of the duties described in this subdivision or
any person in training for any of the duties described in this subdivision.
(h) "Firearms permit" means a permit issued by the bureau, pursuant to
Article 6 (commencing with Section 7596), to a licensee, a qualified
manager, or an alarm agent, to carry an exposed firearm while on duty.
(i) (1) "Advertisement" means:
i. Any written or printed communication for the purpose of soliciting,
describing, or promoting the licensed business of the licensee, including
a brochure, letter, pamphlet, newspaper, periodical, publication, or other
writing.
ii. A directory listing caused or permitted by the licensee which indicates
his or her licensed activity.
iii. A radio, television, or similar airwave transmission which solicits or
promotes the licensed business of the licensee.
(2) "Advertisement" does not include any of the following:
i. Any printing or writing used on buildings, vehicles, uniforms,
badges, or other property where the purpose of the printing or writing
is identification.
ii. Any printing or writing on communications, memoranda, or any
other writings used in the ordinary course of business where the sole
purpose of the writing is other than the solicitation or promotion of
business.
iii. Any printing or writing on novelty objects used in the promotion of
the licensee's business where the printing of the information required
by this chapter would be impractical due to the available area or
surface.
(j) "Residential sales agreement" means and includes an agreement between
an alarm company operator and an owner or tenant for the purchase of an
alarm system to be utilized in the personal residence of the owner or tenant.
(k) "Firearm permit" means and includes "firearms permit," "firearms
qualification card," "firearms qualification," and "firearms qualification
permit."
Alarm Company Operator
Section 7590.2 presents the definition for an Alarm Company Operator:
An "alarm company operator" means any person who, for any consideration
whatsoever, engages in business or accepts employment to install, maintain, alter,
sell on premises, MONITOR, or service alarm systems or who responds to alarm
systems except for any alarm agent. "Alarm company operator," includes any
entity that is retained by a licensed alarm company operator, a customer, or any
other person or entity, to monitor one or more alarm systems, whether or not the
entity performs any other duties within the definition of an alarm company
operator. The provisions of this chapter, to the extent that they can be made
applicable, shall be applicable to the duties and functions performed in monitoring
alarm systems.
A person licensed as an alarm company operator may not conduct any
investigation or investigations except those that are incidental to personal injury,
or the theft, loss, embezzlement, misappropriation, or concealment of any
property, or any other thing enumerated in this Section, which he or she has been
hired or engaged to protect.
Alarm company operator license
Section 7590.5 states that an applicant for an alarm company operator license or
an alarm agent registration shall be at least 18 years of age.
Provisions of Chief of the bureau and the Director
Section 7591.2 provides that every power and duty granted to or imposed upon
the director under this chapter may be delegated to the chief, except that the
director may not delegate authority to adopt or otherwise act upon any proposed
decision of a hearing officer after a hearing under the provisions of Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code. The chief may delegate any power or duty granted to or
imposed upon him or her under this chapter to the deputy chief, to the assistant
chief, or to any inspection, investigation, or auditing personnel of the bureau.
As per Section 7591.4, the chief shall gather evidence of violations of this chapter
and of any rule or regulation established under this chapter by unlicensed persons
who engage in a business for which a license is required under this chapter and
shall furnish the same to prosecuting officers of any county or city or city and
county for the purpose of prosecuting those violations.
Section 7591.5 explains that it shall be the duty of the chief to initiate and
conduct investigations into the business operations of alarm company operators
on his or her own motion, if the alarm company operator is not operating in
accordance with the provisions of this chapter, or there has been a written
complaint to the bureau about the actions and conduct of the alarm company
operator or his or her employees or agents.
Section 7591.7 mentions that the chief or his or her designee may inspect,
examine, or investigate the relevant records, books, accounts, and files created
and maintained by the alarm company operator. The chief shall have access to
those relevant business records, not including client information relating to the
operational integrity of the alarm system, necessary to the examination for the
purpose of performing a random audit to determine compliance with the
provisions of this chapter.
According to Section 7591.8 the director may automatically suspend a license,
registration, or firearm qualification card if it is determined that the continued
possession of such a license, registration, or card by the licensee, registrant, or
card holder presents an undue hazard to public safety which may result in
substantial injury to another. A licensee, registrant, or firearm qualification card
holder may request a review by the Alarm Company Operator Disciplinary
Review Committee as set forth in Section 7591.19 to appeal the suspension.
Denial of License (Sections 7591.10 to 7591.12)
Section 7591.10 mentions the following:
(a) The director may deny a license, certificate, or registration regulated by
this chapter on the grounds that the applicant has done any of the following:
(1) Knowingly made a false statement of fact required to be revealed in the
application for a license.
(2) Been convicted of a crime. A conviction within the meaning of this Section
means a plea or verdict of guilty or a conviction following a plea of nolo
contendere. Any action which the bureau is permitted to take following the
establishment of a conviction may be taken when the time for appeal has
elapsed, or the judgment of conviction has been affirmed on appeal, or
when an order granting probation is made suspending the imposition of
sentence, irrespective of a subsequent order under the provisions of Section
1203.4 of the Penal Code.
(3) Done any act involving dishonesty, fraud, or deceit with the intent to
substantially benefit himself, herself, or another, or to substantially injure
another.
(4) Done any act which if done by a licensee would be grounds for suspension
or revocation of a license.
(5) Done any act without a license for which a license is required under this
chapter.
(6) Been refused a license under this chapter or had a license revoked.
(7) Been an officer, partner, or manager of any person who has been refused a
license under this chapter or whose license has been suspended or revoked.
The bureau may deny a license, certificate, or registration pursuant to this
Section only if the crime or act is substantially related to the qualifications,
functions, or duties of the license, certificate, or registration for which
application has been made.
The denial of a license, certificate, or registration 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 disciplinary review committee the review shall be
requested within 30 days of the issuance of the denial. A review shall be held
pursuant to the provisions of Section 7591.19.
(b) Notwithstanding any other provision of this chapter, no person shall be denied a
license, certificate, or registration solely on the basis that he or she has been
convicted of a felony, if he or she has obtained a certificate of rehabilitation
pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3
of the Penal Code, or solely on the basis that he or she has been convicted of a
misdemeanor, if he or she has met all applicable requirements of the criteria of
rehabilitation.
According to Section 7591.11, the bureau shall deny a firearms permit, pursuant
to Section 12021 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.
Section 7591.12 explains the following:
(a) When considering the denial, suspension, or revocation of a license,
certificate, or registration, for which application has been made under this
chapter, the chief, in evaluating the rehabilitation of the applicant and his
or her present eligibility for a license, certificate, or registration shall
consider all the following criteria
(1) The nature and severity of the act or crime under consideration as
grounds for denial.
(2) Total criminal record.
(3) Evidence of any act committed subsequent to the act or crime under
consideration as grounds for a denial, suspension, or revocation which
also could be considered as grounds for denial under Section 7591.10
(4) The time that has elapsed since commission of the act or crime referred
to in paragraph (1) or (2).
(5) The extent to which the applicant has complied with any terms of
parole, probation, restitution, or any other sanctions lawfully imposed
against the applicant.
(6) Evidence, if any, of rehabilitation submitted by the applicant.
(b) When considering a petition for reinstatement of a license, certificate, or
registration, the chief shall evaluate evidence of rehabilitation, considering
those criteria of rehabilitation listed in subdivision (a).
Alarm Company Operator Disciplinary Review Committee (7591.17 to 7592.8)
The provision of Section 7591.17 enables the Governor to appoint an Alarm
Company Operator Disciplinary Review Committee.
Section 7591.18 explains the functions of the Alarm Company Operator
Disciplinary Review Committee.
(a) Affirm, rescind, or modify all appealed decisions concerning administrative
fines assessed by the bureau against alarm company operators or their
employees.
(b) Affirm, rescind, or modify all appealed decisions concerning denial,
revocation, or suspension of licenses, and certificates, registrations, or
permits issued by the bureau, except denials or suspensions ordered by the
director in accordance with Chapter 5 (commencing with Section 11500) of
Division 3 of Title 2 of the Government Code.
Section 7592 explains that no person shall engage within this state in the
activities of an alarm company operator as defined in Section 7590.2, unless the
person holds a valid alarm company operator's license or is exempt from the
provisions of this chapter.
Section 7592.2 details that any person who violates any provision of this chapter,
or who conspires with another person to violate any provision of this chapter, or
who knowingly engages an unlicensed alarm company operator after being
notified in writing by the bureau of the alarm company operator's unlicensed
status with the bureau, is guilty of a misdemeanor, and is punishable by a fine of
one thousand dollars ($1,000), or by imprisonment in the county jail for not more
than one year, or by both such fine and imprisonment.
As per Section 7592.3 any person who engages in any business regulated by this
chapter, who acts as or represents himself or herself to be a licensee under this
chapter, who falsely represents that he or she is employed by a licensee, or who
carries a badge, identification card, or business card, or uses a letterhead or
advertises that he or she is a licensee under this chapter, unless such person is
licensed under this chapter, is guilty of a misdemeanor, and is punishable by a
fine of one thousand dollars ($1,000), or by imprisonment in the county jail for
not more than one year, or by both such fine and imprisonment.
Section 7592.5 mentions that no person engaged in performing any service
requiring a license under this chapter may bring or maintain any action in any
court of this state for the collection of compensation for the performance of any
act or agreement, without alleging and proving, that the person was duly licensed
at all times during the performance of the act or agreement.
Application for alarm company operator license (Sections 7593 to 7594.6)
Section 7593 briefs that, an application for an alarm company operator license
shall be made in writing to, and filed with, the chief in the form that may be
required by the director and shall be accompanied by the original license fee
prescribed by this chapter. The chief may require the submission of any other
relevant information, evidence, statements, or documents.
Every application for an alarm company operator license shall state, among other
things that may be required, the name of the applicant with the name under which
the applicant will do business, and the location by street and number, and city of
the office of the business for which the license is sought. All information
obtained on the application shall be confidential pursuant to the Information
Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of
Part 4 of Division 3 of the Civil Code) and shall not be released to the public
except for the registrant's full name, the employer's name and address, and the
registration number. Nothing in this Section shall preclude the release of
information to the public regarding the status of an operator's license, or the
release of information to law enforcement agencies or other governmental
agencies for other authorized purposes.
Section 7593.1 describes the following:
(a) Each individual applicant and each qualified manager, partner of a
partnership, and designated officers of a corporation shall submit with the
application, one personal identification form provided by the chief 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 Settlement deed of which shall be forwarded to the
Federal Bureau of Investigation for purposes of a background check, and
personal description of each such person, respectively. The identification
form shall include residence addresses and employment history for the
previous five years.
(b) 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.
Section 7593.2 explains that if the applicant for license is an individual, the
application shall state the full name of the individual, the full residence address of
the applicant, and that the applicant is to be personally and actively in charge of
the business for which the license is sought; or if any other qualified manager is to
be actively in charge of the business, the application shall so state and set forth the
name of that person. The application shall be subscribed, verified, and signed by
the applicant, under penalty of perjury.
Section 7593.3 details that if the applicants for license are copartners, the
application shall state the true names and addresses of all the general partners and
the name of the partner to be actively in charge of the business for which the
license is sought; or if a qualified manager other than a partner is to be actively in
charge of the business then the application shall state the name and address of that
person. The application shall be subscribed, verified, and signed under penalty of
perjury by all of the general partners.
Section 7593.4 briefs that if the applicant for 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. A copy of the articles of
incorporation issued by the Secretary of State shall be supplied to the bureau upon
request. 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 under penalty of perjury.
Section 7593.6 describes that the director may refuse to issue a license to any
applicant pending final disposition of any investigation of criminal activity or of
any disciplinary action previously filed against the person or applicant or against
any qualified manager, partner, or officer of the applicant.
A new alarm company operator license, qualified manager certificate, or alarm
agent registration shall be subject to payment of any and all fines assessed
pursuant to this Section and not resolved in accordance with the provisions of this
Section and payment of all applicable fees.
According to Section 7593.7 the chief shall issue a pocket identification card to
the owner, partners, officers, and qualified manager. The chief shall determine
the form and content of the card. A photo identification card will be furnished to
any owner, partner, officer, qualified manager, or branch office manager upon
written request and payment of the fee prescribed by this chapter.
Section 7593.8 provides that the director shall issue a license, the form and
content of which shall be determined in accordance with Section 164. In addition,
the director shall issue a "Certificate of Licensure" to any licensee, upon request,
with the fee prescribed in this chapter. A "certificate of licensure" shall include an
embossed seal of the State of California and the signature of the chief or his or her
designated representative.
Section 7593.9 presents that each alarm company operator license, together with
the current renewal certificate, if any, shall at all times be conspicuously
displayed at the place of business for which the license is issued.
As per Section 7593.11 an alarm company operator license issued under this
chapter expires two years following the date of issuance or on the assigned
renewal date. Every alarm company operator issued a license under this chapter
that expires on or after January 1, 1997, and who is also issued or renews a
firearms qualification card on or after
Section 7593.12 mentions that an alarm company operator's license not renewed
within three years following its expiration may not be renewed thereafter.
Renewal of the license within one year, or issuance of an original license
thereafter, shall be subject to payment of any and all fines assessed pursuant to
Section 7591.9 and not resolved in accordance with the provisions of that Section
and payment of all applicable fees.
Section 7593.13 explains that a suspended alarm company operator license is
subject to expiration and shall be renewed as provided in this article, but renewal
of the license does not entitle the licensee, while the license remains suspended
and until it is reinstated, to engage in the licensed activity, or in any other activity
or conduct in violation of the order or judgment by which the license was
suspended.
Section 7593.14 briefs that an alarm company operator whose license has been
canceled pursuant to this article may obtain a new license only upon compliance
with all of the provisions of this chapter relating to the issuance of an initial
license.
According to Section 7594, a licensee desiring to operate an alarm company
operator business under one or more fictitious trade names shall apply and qualify
for an initial license for each fictitious trade name.
No licensee shall indicate, or cause to be indicated, in any printed matter, or in
any directory or listing, that he or she conducts an alarm company operator
business under any name, other than the name for which he or she is licensed. An
application for a license for an additional trade name shall be in the same form
and the applicant shall meet the same requirements as for an initial license.
Section 7594.1 provides that a licensee desiring to operate an alarm company
operator business at a location other than the principal place of business as shown
on the license shall apply for a branch office registration for each additional
location as set forth in this chapter.
Section 7594.2 explains that every licensed business, including registered branch
offices, shall be under the active charge of a qualified manager. Every licensed
registered branch office shall be managed by a designated branch office manager
as set forth in this chapter.
Section 7594.3 describes the following:
(a) Whenever a qualified manager ceases to be in active charge of the business,
the license shall be automatically suspended within 30 days unless the
licensee notifies the bureau within the 30-day period of such cessation.
(b) Whenever a designated branch office manager ceases management of a
registered branch office, the branch office registration shall be automatically
suspended within 30 days unless the qualified manager notifies the bureau
within the 30-day period of such cessation.
(c) If the notice of cessation is filed timely, the license or branch office
registration shall remain in force for a period of 90 days after cessation or for
an additional period, not to exceed one year, as specified by the director.
After the 90-day period or additional period, as approved by the director, the
license or branch office registration shall be automatically suspended, unless
the bureau receives written notification that the license is under the active
charge of a qualified manager or that a branch office manager has been
designated. A license or branch office registration suspended under this
Section may be reinstated only upon the filing of an application for
reinstatement, payment of the reinstatement fee, and the qualification of a
manager as provided by this chapter.
(d) In case of the death of a person licensed as an individual, a member of the
immediate family of the deceased licensee shall be entitled to continue the
business under the same license for 120 days following the death of the
licensee, provided that written notification is made to the bureau within 30
days following the death of the licensee. At the end of the 120-day period,
the license shall be automatically canceled. If no request is received within
the 30-day period, the license shall be automatically canceled at the end of
that period.
(e) In the case of the death or disassociation of a partner of an entity licensed as a
partnership, the licensee shall notify the bureau, in writing, within 30 days
from the death or disassociation of the individual. If notice is given, the
license shall remain in force for 90 days following the death or disassociation.
At the end of such period the license shall be automatically canceled. If the
licensee fails to notify the bureau within the 30-day period, the license shall
be automatically canceled.
Section 7594.4 mentions that except as herein otherwise provided, no individual
shall be in active charge of the business if the individual has ever had a license
revoked for cause or has ever been disqualified from further employment in the
alarm company operator business pursuant to this chapter, or was a qualified
manager, partner, or officer of a business whose license has been revoked.
Section 7594.5 defines the following:
(a) The business of each licensee shall be operated under the active direction,
control, charge, or management, in this state, of the licensee, if he or she is
qualified, or the person who is qualified and certified to act as the licensee's
manager, if the licensee is not qualified.
(b) The individual deemed to be actively in charge of the business shall be the
qualified manager, as defined in this chapter, and the certificate of the
qualified manager shall be prominently displayed below the alarm company
operator's license. Such individual shall share equally with the licensee the
responsibility for compliance with this chapter.
(c) The director may assess fines for any violations as enumerated in this article,
pursuant to Section 7591.9. Fines may be assessed against an alarm company
operator's license or a qualified manager's certificate, or both, as deemed
appropriate by the director.
(d) Assessment of the administrative fines shall be independent of any other
action by the bureau or any local, state, or federal governmental agency which
may result from a violation of this article.
Section 7594.6 details that the designated branch office manager shall spend an
average of 51 percent of the usual business hours in the conduct of the business at
the registered branch office location under the active management and supervision
of the qualified manager.
Branch office registration (Section 7599.20 to 7599.30)
According to Section 7599.20, for purposes of this article, "branch office" means
any additional location, other than the alarm company operator's principal place of
business, where the selling, monitoring, installation, or servicing of alarms is
administered, directed, or controlled.
“A telephone answering service or a telephone call forwarding device shall not
be deemed to be a branch office.”
Section 7599.21 states that any licensed alarm company operator, who maintains
or proposes to maintain a branch office as defined in this article, shall apply and
qualify for a branch office registration.
Section 7599.22 provides that the application for a branch office registration
under this article shall be on a form prescribed by the director and shall be
accompanied by the fee as set forth in this chapter.
As per Section 7599.23 the application shall include:
(a) The full name, address of the licensed location, telephone number at the
licensed location, the name of the qualified manager, and license number of
the applicant.
(b) The name and registration number of the designated branch office manager.
The individual shall
(1) Be at least 18 years of age.
(2) Be currently registered as an alarm agent.
(3) Read the Alarm Company Act and sign a statement declaring that he or
she has read the act. The statement shall be dated, signed by the qualified
manager, maintained in the licensee's employee records and made
available to the bureau upon request.
(c) The address of the branch office and the telephone number at the branch
office.
(d) The signature of the qualified manager.
Section 7599.24 explains that upon receipt of the application for a branch office
registration, the chief shall issue a "Branch Office Registration." The registration
shall be posted in a conspicuous place at the branch office location.
Section 7599.25 briefs that each branch office registration shall be managed and
supervised by a designated branch office manager. However, each registered
branch office and designated branch office manager shall be under the active
management supervision of the qualified manager of the licensee. A branch
office may be managed for 120 days from the date of initial application for
registration under the direction of the qualified manager of the licensee.
Section 7599.29 details that every branch office registration issued under this
chapter shall be subject to the same renewal provisions which apply to a license as
set forth in Sections 7593.11, 7593.12, 7593.13, and 7593.14.
Section 7599.30 describes that the director may assess fines for any violation as
enumerated in this article, pursuant to Section 7591.9. Assessment of
administrative fines shall be independent of any other action by the bureau or any
local, state, or federal governmental agency which may result from a violation of
this article.
Alarm company operator-Duties and responsibilities
According to Section 7599.31 for purposes of this article, "licensee" means an
alarm company operator. A licensee shall at all times be responsible for those
actions of his or her employees, including his or her qualified manager, performed
in violation of this chapter, when acting within the course and scope of his or her
employment.
Section 7599.32 explains the following:
(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 twenty-five dollars ($25) for each subsequent
violation.
Section 7599.33 provides that no licensee shall 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.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for each violation.
Section 7599.34 states that no licensee shall 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.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for each violation.
Section 7599.36 briefs that 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.
Penalty:
A violation concerning the maintenance of the files or records may result
in a fine of twenty-five dollars ($25) for each violation.
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
twenty-five dollars ($25) and ten dollars ($10) for each additional day that
elapses following the 30th day.
Section 7599.37 details that 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.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for each violation.
Section 7599.38 details that 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.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for each violation.
Section 7599.39 describes that within three working days, each licensee shall
verify proof of current and valid registration issued by the bureau for each
employee who is subject to registration, or shall require an employee to complete
and submit an application for registration after employing an individual who does
not possess a current and valid registration from the bureau. "Within three
working days" means 72 hours from the time an employee is first compensated
for alarm agent services for a licensee.
Penalty: A violation of this section may result in a fine of twelve dollars ($12) for
the first 10 violations and fifty dollars ($50) for each subsequent violation.
Section 7599.40 briefs that no licensee shall 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.
Penalty: A violation of this section may result in a fine of two hundred fifty
dollars ($250) for each violation.
Section 7599.41 provides that 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.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for each violation.
According to Section 7599.42 within seven days after any violent incident,
involving a dangerous weapon, which 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, 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.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for the first violation and one hundred dollars ($100) for each subsequent
violation.
Section 7599.43 explains that within seven days after receiving a final civil court
judgment filed against the licensee or any officer, partner, qualified manager, or
employee of a licensee for an amount of more than five hundred dollars ($500)
pertaining to any act done within the course and scope of his or her employment,
which may be in violation of this chapter, the licensee or his or her manager shall
mail or deliver to the chief a copy of the judgment.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for the first violation and one hundred dollars ($100) for each subsequent
violation.
As per Section 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.
Penalty: A violation of this section may result in a Notice of Warning for the first
violation, and a fine of twenty-five dollars ($25) for each subsequent violation.
Section 7599.45 details that no licensee or employee of a licensee shall 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.
Penalty: A violation of this section may result in a fine of twenty-five dollars
($25) for the first violation and one hundred dollars ($100) for each subsequent
violation.
Section 7599.46 provides that no licensee shall aid and abet an unlicensed alarm
company operator in any activity for which a license is required.
Penalty: A violation of this section may result in a fine of one thousand dollars
($1,000) for each violation.
According to Section 7599.47 no licensee shall transfer his or her license. This
means that no licensee shall permit an employee or agent, in his or her own name,
to advertise, engage clients, furnish reports or present bills to clients, or in any
manner perform any activities for which a license is required under this chapter.
Penalty: A violation of this section may result in a fine of one thousand dollars
($1,000) for each violation.
Section 7599.48 states that no licensee, or officer, partner, manager, or employee
of a licensee, shall knowingly make any false report to his or her employer or
client for whom information is being obtained.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation, and five hundred dollars ($500) for each subsequent
violation.
Section 7599.49 provides that no licensee shall abandon the completion of any
installation of an alarm system without legal excuse.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and five hundred dollars ($500) for each subsequent
violation.
As per Section 7599.50 no licensee shall willfully depart from or disregard any
plans or specifications, or in the absence of specific requirements, within the plans
or specifications of accepted trade standards for good and worker like
construction in any material respect and prejudicial to another, without consent of
the owner or his or her duly authorized representative, and without the consent of
the person entitled to have the particular installation of alarm system substantially
completed in accordance with such plans and specifications.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and five hundred dollars ($500) for each subsequent
violation.
Section 7599.51 explains that no licensee shall willfully or deliberately disregard
any building laws, safety law, or labor laws of the state or any political
subdivision thereof.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and five hundred dollars ($500) for each subsequent
violation.
Section 7599.52 briefs that no licensee shall fail in any material respect to
complete any alarm system installation for the price stated in the contract for the
alarm system.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and five hundred dollars ($500) for each subsequent
violation.
Section 7599.53 details that no licensee shall willfully refuse, without legal
excuse, to pursue the installation of an alarm system with reasonable diligence,
causing material injury to another.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and five hundred dollars ($500) for each subsequent
violation.
Section 7599.54 describes that every agreement, including, but not limited to,
lease agreements, monitoring agreements, and service agreements, including all
labor, services, and materials to be provided for the installation of an alarm
system, shall be in writing. All amendments subject to the provisions of this
section to an initial agreement shall be in writing. Each initial agreement shall
contain, but not be limited to, the following:
(a) The name, business address, business telephone number, and license number
of the licensed alarm company operator and the registration number of any
alarm agent who solicited or negotiated the agreement.
(b) The approximate dates when the work will begin and be substantially
completed.
(c) A description of the work to be done, a description of the materials to be used,
and the agreed consideration for the work.
(d) A disclosure that alarm company operators are licensed and regulated by the
Bureau of Security and Investigative Services, Department of Consumer
Affairs, Sacramento, CA, 95814.
(e) A description of the alarm system includes the major components thereof and
services to be provided to the purchaser once the alarm is installed, including
response or monitoring services, if any.
(f) Other matters agreed to by the parties of the contract. The agreement shall be
legible and shall be in a form as to clearly describe any other document which
is to be incorporated into the contract, and, before any work is done, the client
shall be furnished with a copy of the written agreement signed by the licensee.
(g) A statement setting forth that upon completion of the installation of the alarm
system, the alarm company shall thoroughly instruct the purchaser in the
proper use of the alarm system.
(h) In the event a mechanic's lien is to be utilized, a notice-to-owner statement
which shall describe, in nontechnical language and in a clear and coherent
manner using words with common and everyday meaning, the pertinent
provisions of this state's mechanics' lien laws and the rights and
responsibilities of an owner of property and a contractor there under,
including the provisions relating to the filing of a contract concerning a work
of improvement with the county recorder and the recording in the office of a
contractor's payment bond for private work.
(i) In addition to the above, every initial residential sales and lease agreement,
the total cost which over the time period fixed by the agreement exceeds two
hundred fifty dollars ($250), including the cost of all labor, service, or
material to be provided by the licensee for the installation, shall include, but
not be limited to, the following:
(1) A schedule of payments showing the amount of each payment as a sum in
dollars and cents. This schedule of payments shall be referenced to the
amount of work for services to be performed or to any materials or
equipment to be supplied.
(2) If the payment schedule contained in the agreement provides for a down
payment to be paid to the licensee by the owner or the tenant before
commencement of the work, that down payment shall not exceed one
thousand dollars ($1,000) or 10 percent of the contract price, excluding
finance charges, whichever is the lesser.
(3) In no event shall the payment schedule provide that the licensee receive, nor
shall the licensee actually receive, payment in excess of 100 percent of the
value of the work performed on the project at any time, excluding finance
charges, except that the licensee may receive an initial down payment
authorized by paragraph (2). A failure by the licensee, without legal
excuse, to substantially commence work within 20 days of the approximate
date specified in the contract when work is to commence, shall postpone the
next succeeding payment to the licensee for that period of time equivalent to
the time between when substantial commencement was to have occurred
and when it did occur.
(4) A notice-to-owner statement which shall describe, in nontechnical language
and in a clear and coherent manner using words with common and everyday
meaning, the pertinent provisions of this state's mechanics' lien laws and the
rights and responsibilities of an owner of property and a contractor there
under, including the provisions relating to the filing of a contract concerning
a work of improvement with the county recorder and the recording in the
office of a contractor's payment bond for private work.
(5) A description of what constitutes substantial commencement of work
pursuant to the contract.
(6) A disclosure that failure by the licensee, without legal excuse, to
substantially commence work within 20 days from the approximate date
specified in the agreement when the work will begin is a violation of the
Alarm Company Act.
(7) A disclosure informing the buyer of any potential permit fees which may be
required by local jurisdictions concerning the monitoring of an existing
alarm system.
(8) This section shall not be construed to prohibit the parties to a residential
alarm system sale contract from agreeing to a contract or account subject to
Chapter 1 (commencing with Section 1801) of Title 2 of Part 4 of Division
3 of the Civil Code.
Penalty: A violation of this section or failure to commence work pursuant to
paragraph (6) of subdivision (h) may result in a fine of one hundred dollars ($100)
for the first violation and a five hundred dollar ($500) fine for each subsequent
violation.
Section 7599.55 explains that no licensee shall make any untrue or misleading
statements in connection with the business of the licensee. "Untrue or misleading
statements" include, but are not limited to, a representation by an alarm company
operator or agent that:
(a) An alarm system is "Underwriters Laboratory approved or listed" (UL
approved or listed) unless the entire system, and not only one or more
components, is in fact, UL approved or listed.
(b) An alarm system is insurance approved, police approved, or approved by the
Department of Defense, unless in fact the approval has been obtained in
writing.
Penalty: A violation of this section may result in a fine of one hundred dollars
($100) for the first violation and a five hundred dollar ($500) fine for each
subsequent violation.
Prohibited Practices
Section 7599.58 states the following:
No alarm company operator shall:
(a) Knowingly install a defective alarm system.
(b) Willfully fail to service the alarm system pursuant to the terms of the warranty
or service agreement.
(c) Willfully fail to notify the owner of a defective system when the alarm
company operator makes a discovery of a defect in a system after installation.
(d) Willfully fails to provide any service described in the agreement pursuant to
Section 7599.54.
Penalty: Notwithstanding the provisions of Section 7591.9, a violation of this
section shall result in a fine of one thousand dollars ($1,000) for the first
violation, and a fine of not less than two thousand five hundred dollars ($2,500),
nor more than five thousand dollars ($5,000) for each subsequent violation.
Directors Powers
According to Section 7599.59 the director may assess administrative fines against
any licensee, qualified certificate holder, firearms qualification card holder, or
registrant for failure to notify the bureau within 30 days of any change of
residence or business address.
Penalty:
(a) The fine shall be twenty-five dollars ($25) for each violation by a licensee or
qualified certificate holder.
(b) The fine shall be fifteen dollars ($15) for each violation by a firearms
qualification card holder or registrant.
Section 7599.60 states that except as otherwise required complying with the
provisions of this chapter; the proceedings under this article shall be conducted in
accordance with Section 7591.19.
Section 7599.61 provides that the director may suspend or revoke an alarm
company operator license, a qualified manager certificate, an alarm agent
registration, or a firearms permit, issued under this chapter, if the director
determines that the licensee or his or her manager, if an individual, or if the
licensee is a person other than an individual, or his or her employees, that any of
its officers, partners, employees, or its manager, has:
(a) Made any false statement or given any false information in connection with
an application for a license or a renewal or reinstatement of a license.
(b) Violated any provisions or committed any prohibited acts of this chapter.
(c) Been convicted of any felony or misdemeanor including illegally using,
carrying, or possessing a dangerous weapon.
(d) Committed or permitted any employee to commit any act, while the license
was expired, which would be cause for the suspension or revocation of a
license, or grounds for the denial of an application for a license.
(e) Committed assault, battery, or kidnapping, or used force or violence on any
person, without proper justification.
(f) Violated, or advised, encouraged, or assisted the violation of any court order
or injunction in the course of business as a licensee.
(g) Been convicted of a violation of Section 148 of the Penal Code.
(h) Committed any act which is a ground for denial of an application for license
under this chapter.
(i) Committed any act prohibited by Chapter 1.5 (commencing with Section 630)
of Title 15 of Part 1 of the Penal Code.
(j) Committed any act in the course of the licensee's business constituting
dishonesty or fraud.
As per Section 7599.63 the record of conviction, or a certified copy thereof, shall
be conclusive evidence of conviction as that term is used in Section 7591.10.
Section 7599.70 briefs that effective July 1, 1998, the bureau shall establish and
assess fees and penalties for licensure and registration as follows:
(a) A company license application fee may not exceed thirty-five dollars ($35).
(b) An original license fee for an alarm company operator license may not exceed
two hundred eighty dollars ($280). A renewal fee for an alarm company
operator license may not exceed three hundred thirty-five dollars ($335).
(c) A qualified manager application and examination fee may not exceed one
hundred five dollars ($105).
(d) A renewal fee for a qualified manager may not exceed one hundred twenty
dollars ($120).
(e) An original license fee and renewal fee for a branch office certificate may not
exceed thirty-five dollars ($35).
(f) Notwithstanding Section 163.5, the reinstatement fee as required by Sections
7593.12 and 7598.17 is the amount equal to the renewal fee plus a Penalty: of
50 percent thereof.
(g) A fee for reexamination of an applicant for a qualified manager may not
exceed two hundred forty dollars ($240).
(h) An initial registration fee for an alarm agent may not exceed seventeen dollars
($17).
(i) A registration renewal fee for an alarm agent may not exceed seven dollars
($7).
(j) A firearms qualification fee may not exceed eighty dollars ($80) and a
firearms re-qualification fee may not exceed sixty dollars ($60).
(k) The fingerprint processing fee is that amount charged the bureau by the
Department of Justice.
(l) The processing fee required pursuant to Sections 7593.7 and 7598.14 is the
amount equal to the expenses incurred to provide a photo identification card.
(m)The fee for a "Certificate of Licensure" may not exceed fifty dollars ($50).
(n) The delinquency fee is 50 percent of the renewal fee in effect on the date of
expiration, but not less than twenty-five dollars ($25).
Section 7599.71 explains that the director shall furnish one copy of any issue or
edition of the licensing law, rules and regulations, manuals, or guides to any
applicant or licensee without charge. The director shall charge and collect a fee
equivalent to the cost of producing such laws, rules and regulations, manuals, or
guides, plus sales tax for each additional copy which may be furnished on request
to any applicant or licensee, and for each copy furnished on request to any other
person. All moneys derived, pursuant to this section except for any sales tax
collected shall be used to cover the costs of producing copies of such laws, rules
and regulations, manuals or guides. All moneys collected for sales tax shall be
remitted to the State Board of Equalization.
Section 7599.72 details that the department shall receive and account for all
money derived from the operation of this chapter and, at the end of each month,
shall report that money to the Controller and shall pay it to the Treasurer, who
shall keep the money in the Private Security Services Fund.
Section 7599.73 describes that the application or licensee fees shall not be
refunded except in accordance with Section 158.
According to Section 7599.74 all money derived from Section 7591.9 shall be
used to support the bureau's enforcement program.
Section 7599.75 states that there shall be a separate budget and expenditure
statement and a separate revenue statement outlining all moneys derived from and
expended for the licensing and regulation of alarm company operators and alarm
agents in accordance with the provisions of this chapter. All moneys derived from
the licensing of alarm company operators and alarm agents shall be expended
exclusively on the regulation of alarm company operators and alarm agents.
If at the end of any fiscal year, the moneys derived from the licensing of alarm
company operators and alarm agents is in surplus in an amount which equals or is
more than the moneys necessary for the regulation of alarm company operators
and alarm agents for the next two fiscal years, license or other fees shall be
reduced, during the following fiscal year in an amount which will reduce any
surplus moneys derived from the licensing of alarm company operators and alarm
agents to an amount less than the moneys expended for the regulation of alarm
company operators and alarm agents for the next two fiscal years.