the alarm company act

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.

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(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


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.



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.



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.



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.


($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.



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.



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.


($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.


($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.



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.



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.



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.



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.


($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.

the alarm company act

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