Amended  IN  Assembly  April 19, 2021
Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 830

Introduced by Assembly Member Flora

February 17, 2021

An act to amend Sections 7590.1, 7590.2, 7592.9, 7593.1, 7593.7, 7596.3, 7596.7, 7598.14, 7598.51, 7599, 7599.54, 7599.70, and 10140.6 of, and to add Section 308 to Sections 308, 7590.6, and 7599.62 to, the Business and Professions Code, relating to the Department of Consumer Affairs. business.


LEGISLATIVE COUNSEL'S DIGEST


AB 830, as amended, Flora. Department of Consumer Affairs: vacancies. Business: Department of Consumer Affairs: Alarm Company Act: Real Estate Law.

Under

(1) Under existing law, the Department of Consumer Affairs is comprised of various boards, bureaus, commissions, committees, and similarly constituted agencies that license and regulate the practice of various professions and vocations. Existing law requires the Director of the Department of Consumer Affairs to administer and enforce those provisions.
This bill would require the director to notify the appropriate policy committees of the Legislature within 60 days after the position of chief or executive officer of any bureau or board within the department becomes vacant, as specified.
(2) Existing law, the Alarm Company Act, establishes the Bureau of Security and Investigative Services headed by the Chief of the Bureau of Security and Investigative Services, within the Department of Consumer Affairs and sets forth its powers and duties over the licensure, registration, and regulation of alarm company operators. Existing law prohibits a person from engaging in the activities of an alarm company operator unless the person holds a valid alarm company operator’s license. Existing law makes a violation of these provisions a crime. Existing law authorizes the bureau to establish fees and penalties for licensure and registration.
(A) Existing law defines terms for purposes of the act, including the terms “alarm agent” and “alarm system.”
This bill would change the definition of “alarm agent” to specify that the person is employed to physically conduct activities within the state. The bill would exclude from the definition of “alarm system” a fire protection system, as specified, and make other conforming changes.
(B) Existing law requires an application for an alarm company operator license to be made in writing to, and filed with, the chief in the form that may be required by the director and accompanied by the original license fee.
Existing law authorizes the Department of Consumer Affairs to enter into a contract with a vendor for the licensing and enforcement of the BreEZe system, which is a specified integrated, enterprisewide enforcement case management and licensing system, as specified.
This bill, on and after July 1, 2022, would require all applications under the act to be submitted electronically through the online licensing and enforcement platform.
(C) Existing law requires each individual applicant, partner of a partnership, designated officer of a corporation, or manager, as specified, to submit with the application a personal identification form with a photograph taken within one year immediately preceding the date of the filing of the application.
This bill would remove the requirement that these individuals submit photographs on the personal identification form.
(D) Existing law requires an alarm agent, while on duty, to carry either a valid and current registration card or a temporary application for a registration.
This bill would require, if an alarm agent carries a temporary application for registration, that it include the application number and that they also carry a valid photo identification. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program. The bill would authorize the registration card or temporary application carried by the alarm agent to be in a digital format, as described.
(E) Existing law requires every person licensed, registered, or designated under the act, who in the course of their employment carries a firearm, to complete a course of training in the carrying and use of firearms, receive a firearms qualification card prior to carrying a firearm, and complete a course in the exercise of the powers to arrest.
This bill would also require, before a firearms permit is issued by the director, that it be certified by a bureau-certified firearms instructor that the applicant successfully completed a written examination prepared by the bureau. The bill would prohibit an applicant who is a bureau-certified firearms training instructor from self-certifying their own completion of these requirements or from self-certifying the requalification requirements on the range for a firearms qualification card.
The bill would make the failure of any licensee who is also licensed to do business as a corporation or limited liability company in this state to be registered and in good standing with the Secretary of State and the Franchise Tax Board after notice from the bureau result in the automatic suspension of the licensee by operation of law. The bill would establish that the fee for reinstatement of a suspended license shall be 25% of the fee imposed for renewal of a license. The bill would make other conforming changes.
(F) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(3) Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, who is the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency.
Existing law prohibits a real estate licensee from publishing, circulating, distributing, or causing to be published, circulated, or distributed in newspapers or periodicals or mail, a matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that the licensee is performing acts for which a real estate license is required. Existing law also requires a real estate licensee to disclose their name, license identification number, and other specified information, on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements, as specified. Existing law authorizes the commissioner to adopt regulations identifying the materials in which a licensee must disclose this information.
This bill would authorize a real estate licensee who is a natural person and who legally changes the surname in which their license was originally issued to continue to utilize their former surname for business associated with their license so long as both names are filed with the department. The bill would provide that use of a former surname does not constitute a fictitious name for purposes of certain filing requirements.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 308 is added to the Business and Professions Code, to read:

308.
 The director shall notify the appropriate policy committees of the Legislature within 60 days after the position of chief or executive officer of any bureau or board within the department becomes vacant pursuant to Section 1770 of the Government Code.

SEC. 2.

 Section 7590.1 of the Business and Professions Code is amended to read:

7590.1.
 The following terms as used in this chapter have the meaning expressed in this article:
(a) (1) “Advertisement” means:
(A) 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.
(B) A directory listing caused or permitted by the licensee which indicates his or her their licensed activity.
(C) A radio, television, or similar airwave transmission that solicits or promotes the licensed business of the licensee.
(2) “Advertisement” does not include any of the following:
(A) Any printing or writing used on buildings, vehicles, uniforms, badges, or other property where the purpose of the printing or writing is identification.
(B) 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.
(C) 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.
(b) “Alarm agent” means a person employed by an alarm company operator whose duties duties, being physically conducted within the state, include selling on premises, altering, installing, maintaining, moving, repairing, replacing, servicing, responding, or monitoring an alarm system, and those ancillary devices connected to and controlled by the alarm system, including supplementary smoke detectors, 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.
(c) (1) “Alarm system” means an assembly of equipment and devices arranged to signal the presence of a hazard requiring urgent attention and to which police may respond. detect a hazard or signal the presence of an off-normal situation.
(2) “Alarm system” does not include a fire protection system, as defined in the California Fire Code.
(d) “Branch office” means any location, other than the principal place of business of the licensee, which is licensed as set forth in Article 11 (commencing with Section 7599.20).
(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 in Article 11 (commencing with Section 7599.20).
(f) “Bureau” means the Bureau of Security and Investigative Services.
(g) “Chief” means the Chief of the Bureau of Security and Investigative Services.
(h) “Deadly weapon” means and includes any instrument or weapon of the kind commonly known as a blackjack, slungshot, billy, sandclub, sandbag, metal knuckles; any dirk, dagger, pistol, revolver, or any other firearm; any knife having a blade longer than five inches; any razor with an unguarded blade; or any metal pipe or bar used or intended to be used as a club.
(i) “Department” means the Department of Consumer Affairs.
(j) “Director” means the Director of Consumer Affairs.
(k) “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.
(l) “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.
(m) “Employer-employee relationship” means an individual who works for another and where the individual’s name appears on the payroll records of the employer.
(n) “Firearm permit” means and includes “firearms permit,” “firearms qualification card,” “firearms qualification,” and “firearms qualification permit.”
(o) “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.
(p) “Licensee” means a business entity, whether an individual, partnership, limited liability company, or corporation licensed under this chapter.
(q) “Manager”means “Manager” means an individual designated under an operating agreement of a manager-managed limited liability company who is responsible for performing the management functions for the limited liability company specified in subdivision (c) of Section 17704.07 of the Corporations Code.
(r) “Member” means an individual who is a member of a limited liability company as defined in subdivision (p) of Section 17701.02 of the Corporations Code.
(s)  “Person” means any individual, firm, company, association, organization, partnership, limited liability company, or corporation.
(t)  “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.
(u)  “Registrant” means any person registered or who has applied for registration under this chapter.
(v)  “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.

SEC. 3.

 Section 7590.2 of the Business and Professions Code is amended to read:

7590.2.
 (a) An “alarm company operator” means a person who, for any consideration whatsoever, engages in business or accepts employment to install, maintain, alter, sell on premises, monitor, or service alarm systems systems, and those ancillary devices connected to and controlled by the alarm system, including supplementary smoke detectors, 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.
(b) A person licensed as an alarm company operator shall 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 they have been hired or engaged to protect.
(c) A person who is licensed, certified, or registered pursuant to this chapter is exempt from locksmithing requirements, pursuant to subdivision (e) of Section 6980.12, if the duties performed that constitute locksmithing are performed in combination with the installation, maintenance, moving, repairing, replacing, servicing, or reconfiguration of an alarm system, as defined in Section 7590.1, and limited to work on electronic locks or access control devices that are controlled by an alarm system control device, including the removal of existing hardware.

SEC. 4.

 Section 7590.6 is added to the Business and Professions Code, immediately following Section 7590.5, to read:

7590.6.
 (a) Notwithstanding any law, any application for a license, registration, certification, or permit required by this chapter shall be submitted electronically through the online licensing and enforcement platform, including, but not limited to, applications for an original, renewal, reinstatement, or replacement license, registration, certificate, or permit.
(b) This section shall become operative on July 1, 2022.

SEC. 5.

 Section 7592.9 of the Business and Professions Code is amended to read:

7592.9.
 Notwithstanding Section 7592.8, a city, county, or city and county that requires a person who owns, leases, rents, or otherwise possesses an alarm system to obtain a local use permit to operate the alarm system shall not fine an alarm company for requesting dispatch to a customer, whether residential or commercial, that does not have a current local use permit if either apply:
(a) It was not the alarm company’s legal responsibility to obtain the local use permit for the customer or renew the local use permit for the customer.
(b) If it is the alarm company’s legal responsibility to renew the local use permit for the customer, the alarm company was not notified that the customer’s local use permit had expired.
(c) Except as otherwise required by this chapter, this section shall not be construed to require the bureau to investigate, hear, or adjudicate a cause of action between an alarm company and a city, county, or city and county that pertains to liability for penalties imposed under an ordinance enacted by the city, county, or city and county.

SEC. 6.

 Section 7593.1 of the Business and Professions Code, as amended by Section 10 of Chapter 406 of the Statutes of 2018, is amended to read:

7593.1.
 (a) Each individual applicant, partner of a partnership, designated officer of a corporation, member, officer, or manager of a limited liability company, and a qualified manager 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 set 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.
(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 7.

 Section 7593.1 of the Business and Professions Code, as amended by Section 11 of Chapter 406 of the Statutes of 2018, is amended to read:

7593.1.
 (a) Each individual applicant, partner of a partnership, designated officer of a corporation, and a qualified manager 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 chief, with two legible sets of fingerprints, one set 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.
(c) This section shall become operative on January 1, 2024.

SEC. 8.

 Section 7593.7 of the Business and Professions Code is amended to read:

7593.7.
 The chief shall issue a pocket identification card to the owner; any partner, officer, member, or manager active in the licensed business; 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, member, manager, qualified manager, or branch office manager upon written request and payment of the fee prescribed by this chapter.

SEC. 9.

 Section 7596.3 of the Business and Professions Code is amended to read:

7596.3.
 The director shall issue a firearms permit when all of the following conditions exist:
(a) The applicant is a licensee, a qualified manager of a licensee, a designated branch office manager of a licensee, or a registered alarm agent. A firearms permit may only be associated with the following:
(1) A sole owner of a sole ownership licensee.
(2) A partner of a partnership licensee.
(3) A qualified manager of a licensee.
(4) A designated branch office manager of a licensee.
(5) A registered alarm agent.
(b) The applicant has filed with the bureau a classifiable fingerprint card, a completed application for a firearms permit on a form prescribed by the director, dated and signed by the applicant, certifying under penalty of perjury that the information in the application is true and correct. In lieu of a classifiable fingerprint card, the applicant may submit fingerprints into an electronic fingerprinting system administered by the Department of Justice. An applicant who submits their fingerprints by electronic means shall have their fingerprints entered into the system through a terminal operated by a law enforcement agency or other facility authorized by the Department of Justice to conduct electronic fingerprinting. The terminal operator may charge a fee sufficient to reimburse it for the costs incurred in providing this service.

(c)A certified

(c) (1) A bureau-certified firearms training instructor certifies that the applicant has successfully completed the bureau-approved training course in the carrying and use of firearms. a written examination prepared by the bureau and a training course in the carrying and use of firearms approved by the bureau.
(2) An applicant who is a bureau-certified firearms training instructor is prohibited from self-certifying as having successfully carried out the requirement of paragraph (1) and shall instead carry out the requirements under another bureau-certified firearms training instructor.
(d) The applicant has provided the bureau with evidence that the applicant has completed a course in the exercise of the powers to arrest.
(e) The applicant is at least 21 years of age and the bureau has determined, after investigation, that the carrying and use of a firearm by the applicant, in the course of their duties, presents no apparent threat to the public safety, or the carrying and use of a firearm by the applicant is not in violation of the Penal Code.
(f) The applicant has produced evidence to the firearm training facility that the applicant is a citizen of the United States or has permanent legal alien status in the United States. Evidence of citizenship or permanent legal alien status shall be that deemed sufficient by the bureau to ensure compliance with federal laws prohibiting possession of firearms by persons unlawfully in the United States and may include, but not be limited to, Department of Justice, Immigration and Naturalization Service Form I-151 or I-551, Alien Registration Receipt Card, naturalization documents, or birth certificates evidencing lawful residence or status in the United States.
(g) The application is accompanied by the fee prescribed in this chapter.

SEC. 10.

 Section 7596.7 of the Business and Professions Code is amended to read:

7596.7.
 A firearms qualification card expires two years from the date of issuance, if not renewed. A person who wishes to renew a firearms qualification card shall file an application for renewal at least 60 days prior to the card’s expiration. A person whose card has expired shall not carry a firearm until the person has been issued a renewal card by the bureau.
The director shall not renew a firearms qualification card unless all of the following conditions exist:
(a) The cardholder has filed with the bureau a completed application for renewal of a firearms qualification card, on a form prescribed by the director, dated and signed by the applicant under penalty of perjury certifying that the information on the application is true and correct.
(b) The application is accompanied by a firearms requalification fee as prescribed in this chapter.
(c) (1) The applicant has requalified on the range and has successfully passed a written examination based on course content as specified in the firearms training manual approved by the department and taught at a training facility approved by the bureau.
(2) An applicant who is a bureau-certified firearms training instructor is prohibited from self-certifying as having successfully carried out the requirement of paragraph (1) and shall instead carry out the requirements under another bureau-certified firearms training instructor.
(d) The applicant has produced evidence to the firearm training facility, either upon receiving an original qualification card or upon filing for renewal of that card, that the applicant is a citizen of the United States or has permanent legal alien status in the United States. Evidence of citizenship or permanent legal alien status is that deemed sufficient by the bureau to ensure compliance with federal laws prohibiting possession of firearms by persons unlawfully in the United States and may include, but not be limited to, United States Citizenship and Immigration Services Form I-551, Alien Registration Receipt Card, naturalization documents, or birth certificates evidencing lawful residence or status in the United States.
(e) An expired firearms qualification card may not be renewed. A person with an expired firearms qualification card is required to apply for a new card in the manner required of persons not previously registered. A person whose card has expired shall not carry a firearm until the person has been issued a new firearms qualification card by the bureau.

SEC. 11.

 Section 7598.14 of the Business and Professions Code is amended to read:

7598.14.
 (a)Upon approval of an application for registration, the chief shall cause to be issued to the applicant, at his or her their last known address, a registration card in a form approved by the director. A photo identification card shall be issued upon written request of the applicant, submission of two recent photographs of the applicant, and payment of the fee. The applicant may request to be issued an enhanced pocket card that shall be composed of a durable material and may incorporate technologically advanced security features. The bureau may charge a fee sufficient to reimburse the department’s costs for furnishing the enhanced license. The fee charged may not exceed the actual costs for system development, maintenance, and processing necessary to provide this service, and may not exceed six dollars ($6). If the applicant does not request an enhanced card, the department shall issue a standard card at no cost to the applicant. Every person, while engaged in any activity for which registration is required, shall display their valid pocket card as provided by regulation.

(b)This section shall become operative on July 1, 2018.

SEC. 12.

 Section 7598.51 of the Business and Professions Code is amended to read:

7598.51.
 (a) (1) An alarm agent shall carry on his or her their person, while on duty, either a valid and current registration card or a temporary application for registration. registration and a valid photo identification. The registration card or temporary application may be in a digital format.
(2) The temporary application shall include the application number that is assigned at the time that the application is received.
(b) For purposes of this section, “digital format” shall include, but not be limited to, an easily legible screenshot or image of the registration card or temporary application.

(b)

(c) A fine of one hundred fifty dollars ($150) may be assessed for each violation of subdivision (a).

SEC. 13.

 Section 7599 of the Business and Professions Code is amended to read:

7599.
 Except as otherwise provided in this chapter, an applicant for a qualified manager certificate for an alarm company operator license shall:
(a) Have had at least two years’ experience in alarm company work or the equivalent thereof as determined by the director.
A year’s experience shall consist of not less than 2,000 hours of actual compensated alarm company work performed by each applicant preceding the filing of an application.
Applicants shall substantiate the claimed years and hours of qualifying experience and the exact details as to the character and nature thereof by written certifications from employers on forms prescribed by the director, subject to independent verification by the director as he or she they may determine. In the event the applicant is unable to supply a written certification from an employer, the applicant may offer such other written certifications as may be properly considered by the director. In addition, applicants shall supply such evidence for consideration, as may be required by the director.
(b) Be at least 18 years of age.
(c) Complete and forward to the bureau an application for a qualified manager certificate for an alarm company operator license, which shall be on a form prescribed by the director. The application shall be accompanied by two recent photographs of the applicant, measuring 114″ by 112″, with a face size no greater than 1″ by 114″, and two classifiable sets of his or her the applicant’s fingerprints.
(d) Pass the required examination.
(e) Pay the required application and examination fees to the chief.

SEC. 14.

 Section 7599.54 of the Business and Professions Code is amended to read:

7599.54.
 (a) Except as provided by Section 7599.56, 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. Except as provided by Section 7599.56, 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:
(1) (A) The name, business address, business telephone number, and and, except as provided in subparagraphs (B) and (C), license number of the licensed alarm company operator and the name and registration number of any alarm agent who solicited or negotiated the agreement.
(B) An alarm agent that is working with a temporary registration pursuant to Section 7598.7 shall include the application number in lieu of the registration number.
(C) This paragraph does not apply to an agreement that was not solicited or negotiated by a registered alarm agent.
(2) The approximate dates when the work will begin and be substantially completed.
(3) A description of the work to be done, a description of the materials to be used, and the agreed consideration for the work.
(4) A disclosure that alarm company operators are licensed and regulated by the Bureau of Security and Investigative Services, Department of Consumer Affairs, including the bureau’s current address and contact information.
(5) A description of the alarm system including the major components thereof and services to be provided to the purchaser once the alarm is installed, including response or monitoring services, if any.
(6) 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.
(7) 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.
(8) 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 thereunder, 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.
(9) For residential agreements entered into on or after January 1, 2017, that include an automatic renewal provision renewing the agreement for a period of more than one month, a clear and distinct disclosure shall be included separate from the terms and conditions of the agreement advising the consumer that the agreement he or she is they are entering into contains an automatic renewal provision. The disclosure shall include the length of time of the renewal term and specify that failure to provide notification of nonrenewal to the licensee, as required in the agreement, will result in the automatic renewal of the agreement. The consumer shall acknowledge being advised of the automatic renewal provision by signing or initialing the disclosure. The disclosure may be included on the same document as the three-day right to cancel form required by Section 1689.7 of the Civil Code. The automatic renewal provision shall be void and invalid without a separate acknowledgment of the disclosure by the consumer.
(10) 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:
(A) 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.
(B) If the payment schedule contained in the agreement provides for a downpayment to be paid to the licensee by the owner or the tenant before commencement of the work, that downpayment shall not exceed one thousand dollars ($1,000) or 10 percent of the contract price, excluding finance charges, whichever is the lesser.
(C) 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 downpayment authorized by subparagraph (B). 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.
(D) 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 thereunder, 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.
(E) A description of what constitutes substantial commencement of work pursuant to the contract.
(F) 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.
(G) 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.
(H) 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.
(b) A violation of this section or failure to commence work pursuant to subparagraph (F) of paragraph (10) of subdivision (a) may result in a fine of one hundred dollars ($100) for the first violation and a fine of five hundred dollars ($500) for each subsequent violation.

SEC. 15.

 Section 7599.62 is added to the Business and Professions Code, to read:

7599.62.
 Notwithstanding any other law, the failure of any person licensed to do business as a corporation or limited liability company in this state to be registered and in good standing with the Secretary of State and the Franchise Tax Board after notice from the bureau shall result in the automatic suspension of the licensee by operation of law. The bureau shall notify the licensee in writing of its failure to be registered and in good standing with the Secretary of State or the Franchise Tax Board, or both, and that the licensee shall be suspended 30 days from the date of the notice if the licensee does not provide proof satisfactory to the bureau that it is properly registered and in good standing with the Secretary of State or the Franchise Tax Board, or both. Reinstatement may be made at any time following the suspension by providing proof satisfactory to the bureau that the licensee is properly registered and in good standing and the payment of the reinstatement fee as prescribed by this chapter.

SEC. 16.

 Section 7599.70 of the Business and Professions Code is amended to read:

7599.70.
 (a)The bureau shall establish and assess fees and penalties for licensure and registration as follows:

(1)

(a) An alarm company operator license application fee shall be at least three hundred seventy dollars ($370) and may be increased to an amount not to exceed four hundred seven dollars ($407).

(2)

(b) An original license fee for an alarm company operator license shall be at least six hundred dollars ($600) and may be increased to an amount not to exceed six hundred sixty dollars ($660). A renewal fee for an alarm company operator license shall be seven hundred fifty dollars ($750) and may be increased to an amount not to exceed eight hundred twenty-five dollars ($825).

(3)

(c) A qualified manager certificate application and examination fee shall be at least three hundred fifty dollars ($350) and may be increased to an amount not to exceed three hundred eighty-five dollars ($385).

(4)

(d) A renewal fee for a qualified manager certificate shall be at least two hundred twenty-five dollars ($225) and may be increased to an amount not to exceed two hundred forty-eight dollars ($248).

(5)

(e) An original license fee for a branch office certificate shall be at least two hundred fifty dollars ($250) and may be increased to an amount not to exceed two hundred seventy-five dollars ($275). A renewal fee for a branch office certificate shall be at least one hundred fifty dollars ($150) and may be increased to an amount not to exceed one hundred sixty-five dollars ($165).

(6)

(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.

(7)

(g) A fee for reexamination of an applicant for a qualified manager shall be at least sixty dollars ($60) and may be increased to an amount not to exceed sixty-six dollars ($66).

(8)

(h) An initial registration fee for an alarm agent shall be at least fifty-five dollars ($55) and may be increased to an amount not to exceed sixty dollars ($60).

(9)

(i) A registration renewal fee for an alarm agent shall be at least forty dollars ($40) and may be increased to an amount not to exceed forty-four dollars ($44).

(10)

(j) A firearms permit fee shall be at least one hundred dollars ($100) and may be increased to an amount not to exceed one hundred ten dollars ($110), and a firearms permit renewal fee shall be at least eighty dollars ($80) and may be increased to an amount not to exceed eighty-eight dollars ($88).

(11)

(k) The fingerprint processing fee is that amount charged the bureau by the Department of Justice.

(12)

(l) The processing fee required pursuant to Sections 7593.7 and Section 7598.14 is the amount equal to the expenses incurred to provide a photo identification card.

(13)

(m) The fee for a Certificate of Licensure, as specified in Section 7593.8, shall be twenty-five dollars ($25).

(14)

(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).

(15)

(o) The processing fee for the assignment of an alarm company operator license pursuant to Section 7593.15 shall be at least four hundred dollars ($400) and may be increased to an amount not to exceed four hundred forty dollars ($440).

(16)

(p) The fee for the replacement of a lost or destroyed registration card, license, certificate, or permit authorized by this chapter shall be twenty-five dollars ($25). The request for a replacement of a registration card, license, certificate, or permit shall be made in the manner prescribed by the bureau.

(17)

(q) The fee for an endorsed verification of licensure, certification, registration, or permit shall be twenty-five dollars ($25). The verification document shall include the license, certificate, registration, or permit number, the date of issuance and expiration of the license, certificate, registration, or permit, the current license, certificate, registration, or permit status, license, certificate, registration, or permit history and current status, the date of the endorsement, an embossed seal, and the signature of the chief.
(r) The reinstatement fee following a suspension pursuant to subdivision (f) of Section 7599.34 and Section 7599.62 shall be 25 percent of the renewal fee.

(b)This section shall become operative on July 1, 2018.

SEC. 17.

 Section 10140.6 of the Business and Professions Code is amended to read:

10140.6.
 (a) A real estate licensee shall not publish, circulate, distribute, or cause to be published, circulated, or distributed in any newspaper or periodical, or by mail, any matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that he or she the licensee is performing acts for which a real estate license is required.
(b) (1) A real estate licensee shall disclose his or her their name, license identification number and unique identifier assigned to that licensee by the Nationwide Mortgage Licensing System and Registry, if that licensee is a mortgage loan originator, and responsible broker’s identity, as defined in Section 10015.4, on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting in a manner that requires a real estate license or mortgage loan originator license endorsement in those transactions. The commissioner may adopt regulations identifying the materials in which a licensee must disclose a license identification number and unique identifier assigned to that licensee by the Nationwide Mortgage Licensing System and Registry, and responsible broker’s identity.
(2) A real estate licensee who is a natural person and who legally changes the surname in which their license was originally issued may continue to utilize their former surname for the purpose of conducting business associated with their license so long as both names are filed with the department. Use of a former surname shall not constitute a fictitious name for the purposes of Section 10159.5.

(2)

(3) For purposes of this section, “solicitation materials” include business cards, stationery, advertising flyers, advertisements on television, in print, or electronic media, “for sale,” rent, lease, “open house,” and directional signs, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer.

(3)

(4) Nothing in this section shall be construed to limit or change the requirement described in Section 10236.4 as applicable to real estate brokers.
(c) This section shall not apply to “for sale,” rent, lease, “open house,” and directional signs that do either of the following:
(1) Display the responsible broker’s identity, as defined in Section 10015.4, without reference to an associate broker or licensee.
(2) Display no licensee identification information.
(d) “Mortgage loan originator,” “unique identifier,” and “Nationwide Mortgage Licensing System and Registry” have the meanings set forth in Section 10166.01.

(e)This section shall become operative on January 1, 2018.

SEC. 18.

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