AB 580 California Assembly · 2017-2018 Regular Session

Security services: limited liability companies.

Summary
The California Revised Uniform Limited Liability Company Act governs the formation and operation of limited liability companies. The act authorizes a limited liability company to engage in any lawful business activity, except as specified. A limited liability company is an entity distinct from its members. Existing law authorizes one or more persons to form a limited liability company by, among other things, signing and delivering articles of organization to the Secretary of State. Under existing law, a limited liability company is a member-managed limited liability company unless the articles of organization contain a statement that the limited liability company is to be manager managed. Under existing law, the operating agreement governs, among other things, relations among the members as members and between the members and the limited liability company and the activities of the limited liability company. Existing law 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. The Private Security Services Act in the Business and Professions Code provides for the licensure and regulation by the Department of Consumer Affairs and its Bureau of Security and Investigative Services of persons engaged in the provision of private security services. The Private Security Services Act authorizes an individual, a qualified manager, a partner of a partnership, or an officer of a corporation to apply for a license, as prescribed. Under the Private Security Services Act, an application is required to be verified and contain specific information, including an identification form signed under penalty of perjury, and is also required to be subscribed, verified, and signed by specific persons under penalty of perjury. This bill would additionally authorize a limited liability company to apply for licensure and make conforming changes to the provisions of the Private Security Services Act. The bill would require a limited liability company, as a condition of licensure, to be insured as prescribed. The bill, by additionally imposing perjury provisions on limited liability company applicants, would expand the crime of perjury, thereby imposing a state-mandated local program. The Proprietary Security Services Act provides for the registration and regulation of proprietary private security officers and proprietary private security employers by the department and bureau. The Proprietary Security Services Act defines terms for its purposes, including defining "person" to include any individual, firm, company, association, organization, partnership, and corporation. This bill would expand the definition of "person" to include a limited liability company. 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.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2017
Committee Review
Floor Vote
Governor
Introduced Feb 14, 2017 Last action Feb 1, 2018
Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
7
Key actions
1
Committee
3
Amendments
1
Apr 4, 2017
Committee
Re-referred to Com. on B. & P.
lower
Apr 3, 2017
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.
lower
Mar 30, 2017
Committee
Referred to Com. on B. & P.
lower
Feb 15, 2017
Lower · Passed
From printer. May be heard in committee March 17.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Jordan Cunningham
Jordan Cunningham
RRepublican
CA
35