Article 12 - Alarm Company Operators—Conduct of Business, Prohibited Acts and Citations

California Business and Professions Code — §§ 7599.30-7599.59

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Added by Stats. 1982, Ch. 1210, Sec. 12.

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.

Added by Stats. 1982, Ch. 1210, Sec. 12.

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.

Amended (as amended by Stats. 2016, Ch. 800, Sec. 59) by Stats. 2018, Ch. 406, Sec. 20. (SB 904) Effective January 1, 2019.

(a)A licensee shall notify the bureau within 30 days of any change of its officers, members, or managers required to be named pursuant to Section 7593.4 or 7593.5 and of any addition of a new partner.
(b)Applications, on forms prescribed by the director, shall be submitted by all new officers, members,

managers, and partners. The director may suspend or revoke a license issued under this chapter if the director determines that the new officer, member, manager, or partner has committed any act which constitutes grounds for the denial of a license pursuant to Section 7591.10.

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

Amended by Stats. 2016, Ch. 800, Sec. 61. (SB 1196) Effective January 1, 2017.

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

Amended (as amended by Stats. 2016, Ch. 800, Sec. 62) by Stats. 2018, Ch. 406, Sec. 22. (SB 904) Effective January 1, 2019.

(a)A licensee shall not conduct a business as an individual, partnership, limited liability company, or corporation unless the licensee holds a valid license issued to that exact same individual, partnership, limited liability company, or corporation. A violation of this section may result in a fine of five hundred dollars ($500) for each violation.
(b)As a condition of the issuance, reinstatement, reactivation, or continued valid use of a license under this chapter, a limited liability company shall, in accordance with the provisions of this section, maintain a policy or policies of insurance against liability imposed on or against it by law for damages arising out of claims based upon acts, errors, or omissions arising out of the alarm company services it

provides.

(c)The total aggregate limit of liability under the policy or policies of insurance required under this section shall be as follows:
(1)For a limited liability company licensee with five or fewer persons named as members pursuant to Section 7593.5 or 7599.32, the aggregate limit shall not be less than one million dollars ($1,000,000).
(2)For a limited liability company licensee with more than five persons named as members pursuant to Section 7593.5 or 7599.32, an additional one hundred thousand dollars ($100,000) of insurance shall be obtained for each person named as

members of the licensee except that the maximum amount of insurance is not required to exceed five million dollars ($5,000,000) in any one designated period, less amounts paid in defending, settling, or discharging claims as set forth under this section.

(d)Prior to the issuance, reinstatement, or reactivation of a limited liability company license as provided under this chapter, the applicant or licensee shall, in the manner prescribed by the bureau, submit the information and documentation required by this section and requested by the bureau, demonstrating compliance with the financial security requirements specified by this section.
(e)For any insurance policy secured by a licensee in satisfaction of this section, a Certificate of Liability Insurance, signed by an authorized agent or employee of the insurer, shall be submitted electronically or otherwise to the bureau. The

insurer issuing the certificate shall report to the bureau the following information for any policy required under this section: name, license number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable. The insurer shall list the bureau as the certificate holder for the purposes of receiving notifications related to the policy’s status.

(f)(1) If a licensee fails to maintain sufficient insurance as required by this section, or fails to provide proof of the required insurance upon request by the bureau, the license is subject to suspension and is automatically suspended pursuant to this subdivision until the date that the licensee provides proof to the bureau of compliance with the insurance coverage requirement.
(2)Prior to an automatic suspension, the bureau shall notify the licensee, in writing, that the licensee has 30 days to provide proof to the bureau of having the required insurance or the license shall be automatically suspended.
(3)If the licensee fails to provide proof of insurance coverage within the period described in paragraph (2), the bureau may automatically suspend the license.
(g)Where the license of a limited liability company is suspended pursuant to subdivision (f), each member of the limited liability company shall be personally liable up to one million dollars ($1,000,000) each for damages resulting to third parties in connection with the company’s performance, during the period of suspension, of any act or contract where a license is required by this chapter.
(h)On and after January 1, 2019, a licensee organized as a limited liability company shall report annually to the bureau the date and amount of any claims paid, during the prior calendar year, from any general liability insurance policy held pursuant to this section. The licensee shall report the information on a form provided by the bureau. The licensee shall report the claim information no later than March 1. The creation of the form shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Amended by Stats. 2024, Ch. 484, Sec. 47. (SB 1454) Effective January 1, 2025.

Notwithstanding any other law, commencing January 1, 2030, a licensee shall not conduct business under this chapter as a limited liability company.

Amended by Stats. 2016, Ch. 800, Sec. 64. (SB 1196) Effective January 1, 2017.

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

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

Amended (as added by Stats. 2021, Ch. 697, Sec. 34) by Stats. 2022, Ch. 287, Sec. 55. (AB 2515) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.

(a)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 and the appropriate use of force as required by Section 7598.1, by each of their employees. A violation of this section may result in a fine of five hundred dollars ($500) for each violation.
(b)This section shall become operative on July 1, 2023.

Amended (as added by Stats. 2021, Ch. 697, Sec. 36) by Stats. 2022, Ch. 287, Sec. 57. (AB 2515) Effective January 1, 2023. Operative July 1, 2023, by its own provisions.

(a)Each licensee shall certify an employee’s completion of the course of training in the exercise of the power to arrest and the appropriate use of force, or obtain proof that the training has been administered by a bureau-approved training facility, prior to allowing the employee to respond to an alarm system as required by Section 7598.1. A violation of this section may result in a fine of five hundred dollars ($500) for each violation.
(b)This section shall become operative on July 1, 2023.

Added by Stats. 1982, Ch. 1210, Sec. 12.

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. 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.

Added by Stats. 1982, Ch. 1210, Sec. 12.

The director shall issue a qualified manager certificate to any person meeting the requirements of Section 7599. The certificate shall be posted, along with the alarm company operator license, in a conspicuous place at the principal place of business.

Amended by Stats. 2016, Ch. 800, Sec. 67. (SB 1196) Effective January 1, 2017.

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

violation.

Amended by Stats. 2016, Ch. 800, Sec. 68. (SB 1196) Effective January 1, 2017.

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

Amended (as amended by Stats. 2016, Ch. 800, Sec. 69) by Stats. 2018, Ch. 406, Sec. 26. (SB 904) Effective January 1, 2019.

Within seven days after any violent incident involving a dangerous weapon that has been caused by or occurred upon a licensee or any officer, partner, member, manager, qualified manager, or employee of a licensee, while acting within the course and scope of his or her employment, and that results in bodily injury to any person or death of any person involved in that incident or of any discharge of a weapon, excluding any discharge which occurs on the range, the licensee or his or her

qualified manager shall mail or deliver to the chief a detailed report of the incident. The report shall describe fully the circumstances surrounding the incident, any injuries or damages incurred, the identity of all participants, and whether a police investigation was conducted. A violation of this section by a licensee, officer, partner, member,

or manager of a licensee, or qualified manager may result in a fine of one thousand dollars ($1,000) for the first violation and two thousand dollars ($2,000) for each subsequent violation. A violation of this section by an employee of a licensee may result in a fine of five hundred dollars ($500) for each violation.

Amended (as amended by Stats. 2015, Ch. 140, Sec. 19) by Stats. 2018, Ch. 406, Sec. 28. (SB 904) Effective January 1, 2019.

Within seven days after receiving a final civil court judgment filed against the licensee or any officer, partner, member, manager, 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 that may be in violation of this chapter, the licensee or his or her

qualified manager shall mail or deliver to the chief a copy of the judgment. 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.

Amended by Stats. 2021, Ch. 373, Sec. 1. (AB 484) Effective January 1, 2022.

(a)Every advertisement by a licensee soliciting or advertising business shall contain the licensee’s name and license number as they appear in the records of the bureau.
(b)If a licensee maintains an internet website, any radio or television broadcast or billboard advertisement by the licensee soliciting or advertising business may direct potential customers to the licensee’s online landing pages for the required information in subdivision (a).
(c)A violation of this section may result in a fine of five hundred dollars ($500) for the first violation and one thousand dollars ($1,000) for each subsequent violation.

Amended by Stats. 2016, Ch. 800, Sec. 72. (SB 1196) Effective January 1, 2017.

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

Added by Stats. 1982, Ch. 1210, Sec. 12.

No licensee shall aid and abet an unlicensed alarm company operator in any activity for which a license is required. A violation of this section may result in a fine of one thousand dollars ($1,000) for each violation.

Added by Stats. 1982, Ch. 1210, Sec. 12.

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. A violation of this section may result in a fine of one thousand dollars ($1,000) for each violation.

Amended (as amended by Stats. 2015, Ch. 140, Sec. 21) by Stats. 2018, Ch. 406, Sec. 30. (SB 904) Effective January 1, 2019.

No licensee, or officer, partner, member, manager, qualified 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. 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.

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