Alarm companies: limited liability companies.

Existing law, the Beverly-Killea Limited Liability Company Act, authorizes a limited liability company to engage in any lawful business activity, except as specified, but prohibits construing the act to permit a limited liability company to render professional services, as defined. Existing law also authorizes a limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the provisions of that code authorize a limited liability company to hold that license, certificate, or registration. Existing law, the Alarm Company Act, provides for the licensure, registration, and regulation of alarm company operators and alarm agents by the Bureau of Security and Investigative Services within the Department of Consumer Affairs and makes a violation of the act a crime. Existing law prohibits an alarm company operator from transferring his or her license, as specified. This bill would, until January 1, 2016, authorize the bureau to issue an alarm company operator license to a limited liability company and would make related conforming changes. The bill would require a limited liability alarm company to maintain specified insurance and to submit specified information and documentation to the bureau. A failure of a limited liability alarm company to comply with these requirements would render the company's license subject to suspension, and would expose the members of the limited liability alarm company to personal liability for damages to 3rd parties, as specified. Because a violation of the Alarm Company Act by a limited liability company would be a crime, the bill would expand the scope of a crime and would thereby impose a state-mandated local program. The bill would specify that an alarm company operator license is not assignable, but would authorize an operator who receives consent from the bureau, as specified, to assign the license to another business entity if the owners of the assignor own all of the assignee immediately after the assignment. Existing law requires the Governor to appoint an Alarm Company Operator Disciplinary Review Committee and requires the committee to affirm, rescind, or modify all appealed decisions concerning administrative fines assessed by the bureau and all appealed decisions concerning denial, revocation, or suspension of licenses, certificates, registrations, or permits issued by the bureau, as specified. This bill would authorize the committee to grant a probationary license, certificate, registration, or permit with respect to those appealed decisions. Existing law authorizes the Director of Consumer Affairs to deny a license where the applicant has committed specified acts. Existing law also authorizes the director to 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 applicant, as specified. This bill would authorize the director to grant a probationary license, registration, certificate, or permit to an applicant subject to specified terms and conditions. The bill would require the director, when considering the granting of a probationary license, registration, certificate, or permit, to request that an applicant with a dismissed conviction provide proof of that dismissal and would require that special consideration be given to applicants whose convictions have been dismissed, as specified. The bill would require the director to develop standard terms of probation, as specified. Existing law authorizes a board, bureau, or commission within the Department of Consumer Affairs to establish a system for the issuance of a citation to a licensee where the licensee is in violation of the applicable licensing act or regulation adopted thereunder, except with respect to a person regulated under the Alarm Company Act. This bill would remove the exception for a person regulated under the Alarm Company Act. Existing law also authorizes a board, bureau, or commission within the Department of Consumer Affairs to establish a similar system for the issuance of an administrative citation to an unlicensed person who is acting in the capacity of a licensee or registrant under the jurisdiction of the board, bureau, or commission. Existing law requires an advertisement by a licensed alarm company soliciting or advertising business to contain his or her name and license number and prohibits a licensee from making any untrue or misleading statements. This bill would authorize the Chief of the Bureau of Security and Investigative Services to issue a citation against any person who is acting in the capacity of a licensee, registrant, permitholder, or certificate holder under the alarm company jurisdiction of the bureau without a license, registration, permit, or certificate and against any person who advertises for the purpose of soliciting business as an alarm company operator without a license, as specified. The bill would make other related changes. 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.