Bill Text: CA AB1244 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Private security services and private investigators: qualified managers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 571, Statutes of 2023. [AB1244 Detail]

Download: California-2023-AB1244-Introduced.html


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1244


Introduced by Assembly Member Holden

February 16, 2023


An act to amend Sections 7512.7, 7535, 7536, 7559, 7559.5, 7570, 7580.7, 7582.21, 7582.22, 7586, 7586.3, 7586.4, and 7588 of the Business and Professions Code, relating to professions and vocations.


LEGISLATIVE COUNSEL'S DIGEST


AB 1244, as introduced, Holden. Private security services and private investigators: qualified managers.
Existing law, the Private Investigator Act, provides for the licensure and regulation of private investigators by the Director of Consumer Affairs. Existing law, the Private Security Services Act, provides for the licensure and regulation of private patrol operators, including security guards, by the director. Existing law requires the business of a licensee under those acts to be operated under the direction, control, charge, or management of the licensee, if they are qualified, or the person who is qualified to act as the qualified manager, and establishes requirements for a qualified manager. A violation of the Private Investigator Act or the Private Security Services Act is a crime.
This bill would require a qualified manager under those acts to hold a current and valid qualified manager’s certificate issued by the director, and would require the director to issue a qualified manager’s certificate to a person who meets the requirements of the act, as applicable. The bill would establish requirements for renewing a qualified manager certificate, and would establish application, examination, renewal, and delinquency fees for a qualified manager certificate, which would be deposited in the Private Security Services Fund. The bill would require branch office certificates and qualified manager certificates to be posted in a specified manner. The bill would make conforming and other nonsubstantive changes. Because the bill would expand the scope of a crime, the bill would impose a state-mandated local program.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 7512.7 of the Business and Professions Code is amended to read:

7512.7.
 As used in this chapter, “qualified manager” means the individual under whose direction, control, charge, or management the business of a licensee is operated as specified in Section 7536. 7536, and who is in possession of a current and valid qualified manager’s certificate issued pursuant to this chapter.

SEC. 2.

 Section 7535 of the Business and Professions Code is amended to read:

7535.
 (a) A licensee shall not advertise or conduct business from any location other than that shown on the records of the bureau as his or her their principal place of business unless he or she has they have received a branch office certificate for the location after compliance with the provisions of this chapter and any additional requirements necessary for the protection of the public as the director may by regulation prescribe. A licensee shall notify the bureau in writing within 30 days after closing or changing the location of a branch office.
(b) The branch office certificate shall be posted below the private investigator operator’s license.

SEC. 3.

 Section 7536 of the Business and Professions Code is amended to read:

7536.
 (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 they are qualified, or the person who is qualified to act as the licensee’s qualified manager, if the licensee is not qualified.
(b) No person shall act as a qualified manager of a licensee until he or she has they have complied with each of the following:
(1) Demonstrated his or her their qualifications by a written or oral examination, or a combination of both, if required by the director.
(2) Made a satisfactory showing to the director that he or she has they have the qualifications prescribed in Section 7526 and that none of the facts stated in Section 7538 or 7538.5 exist as to him or her. them.
(c) The director shall issue a qualified manager certificate to any person meeting the requirements of this section. The certificate of the qualified manager shall be prominently displayed below the private investigator operator’s license at the principal place of business. If the principal place of business is outside of this state, then the certificate of the qualified manager shall be posted below the branch office certificate at each branch office.
(d) A qualified manager certificate issued pursuant to this section shall expire at midnight on the last day of the month two years following the date of issuance unless renewed. To renew an unexpired certificate, the qualified manager shall apply for renewal on a form prescribed by the director, pay all fines assessed to the certificate, and pay the renewal fee as provided in this chapter. To renew an expired certificate, the qualified manager shall apply for renewal on a form prescribed by the director, pay all fines assessed to the certificate, the renewal fee, and the delinquency fee as provided in this chapter.

(c)

(e) A person shall not act as a qualified manager of more than five licensees. The person acting as a qualified manager shall share equally with the licensee the responsibility and any liability for the conduct of the business of the licensee and the actions of the employees and other personnel of the licensee. This section shall not apply to any licensee that notifies the bureau in writing that he or she is not conducting any business, but requests to maintain a current license status with the bureau. Whenever the licensee resumes conducting business, the licensee shall so inform the bureau in writing within 30 days.

(d)

(f) Any person acting as a qualified manager of a licensee shall be the holder of a qualification certificate issued by the bureau. The certificate, together with the current renewal certificate, shall be predominantly displayed below the private investigator’s license.

SEC. 4.

 Section 7559 of the Business and Professions Code is amended to read:

7559.
 A suspended license or license, branch office certificate, or qualified manager certificate 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 in any other activity or conduct in violation of the order or judgment by which the license was suspended, and renewal of the branch office certificate or qualified manager certificate does not entitle the licensee, while the certificate remains suspended, and until it is reinstated, to engage in the licensed activity at the location for which the certificate was issued, or to engage in any other activity or conduct in violation of the order or judgment by which the certificate was suspended.

SEC. 5.

 Section 7559.5 of the Business and Professions Code is amended to read:

7559.5.
 A revoked license or license, branch office certificate, or qualified manager certificate is subject to expiration as provided in this article, but it may not be renewed. If it is reinstated after its expiration, the licensee, as a condition precedent to its reinstatement, shall pay a reinstatement fee in an amount equal to the renewal fee in effect on the last regular renewal date before the date on which it is reinstated, plus the delinquency fee, if any, accrued at the time of its revocation.

SEC. 6.

 Section 7570 of the Business and Professions Code is amended to read:

7570.
 The fees prescribed by this chapter are as follows:
(a) The application and examination fee for an original license shall be at least three hundred forty dollars ($340) and may be increased to not more than three hundred seventy-four dollars ($374).
(b) The application fee for an original branch office certificate shall be at least ninety dollars ($90) and may be increased to not more than ninety-nine dollars ($99).
(c) The fee for an original license for a private investigator shall be at least three hundred eighty-five dollars ($385) and may be increased to not more than four hundred twenty-four dollars ($424).
(d) The initial application and examination fee for an original license for a qualified manager certificate 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).

(d)

(e) The renewal fee is as follows:
(1) For a license as a private investigator, the fee shall be at least two hundred sixty-five dollars ($265) and may be increased to not more than two hundred ninety-two dollars ($292).
(2) For a branch office certificate for a private investigator, the fee shall be at least sixty-five dollars ($65) and may be increased to not more than seventy-two dollars ($72).

(e)

(f) The delinquency fee for a license, registration, or certificate is 50 percent of the renewal fee in effect on the date of expiration.

(f)

(g) A reinstatement fee is equal to the amount of the renewal fee plus the regular delinquency fee.

(g)

(h) The fee for reexamination of an applicant or their qualified manager shall be at least sixty dollars ($60) and may be increased to not more than sixty-six dollars ($66).

(h)

(i) The processing fee for the assignment of a license pursuant to Section 7530 shall be at least four hundred dollars ($400) and may be increased to not more than four hundred forty dollars ($440).

(i)

(j) The firearms permit fee shall be at least one hundred dollars ($100), but shall not exceed one hundred ten dollars ($110).

(j)

(k) The firearms permit renewal fee shall be at least eighty dollars ($80), but shall not exceed eighty-eight dollars ($88).

(k)

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

(l)

(m) The fee for a Certificate of Licensure, as specified in Section 7528, shall be twenty-five dollars ($25).

(m)

(n) The fee for an endorsed verification of licensure, certification, or permit shall be twenty-five dollars ($25). The verification document shall include the history and current status of the license, certificate, or permit number, the date of the endorsement, an embossed seal, and the signature of the chief.

(n)

(o) The reinstatement fee following a suspension pursuant to subdivision (e) of Section 7520.3 shall be no more than 50 percent of the renewal fee.

(o)

(p) The reinstatement fee following a suspension pursuant to Section 7561.2 shall be 25 percent of the renewal fee.
(q) 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).

SEC. 7.

 Section 7580.7 of the Business and Professions Code is amended to read:

7580.7.
 As used in this chapter, “manager” means the individual under whose direction, control, charge, or management the business of a licensee is operated. operated, who has qualified pursuant to Section 7582.22, and who is in possession of a current and valid qualified manager’s certificate issued pursuant to this chapter.

SEC. 8.

 Section 7582.21 of the Business and Professions Code is amended to read:

7582.21.
 (a) A licensee shall not advertise or conduct business from any location other than that shown on the records of the bureau as his or her their principal place of business unless he or she has they have received a branch office certificate for the location after compliance with the provisions of this chapter and any additional requirements necessary for the protection of the public as the director may by regulation prescribe. A licensee shall notify the bureau in writing within 10 days after closing or changing the location of a branch office.
(b) The director may assess a fine of five hundred dollars ($500) for the first violation of subdivision (a) and one thousand dollars ($1,000) for each violation thereafter.
(c) The branch office certificate shall be posted below the private patrol operator’s license. The qualified manager certificate shall be posted below the branch office certificate.

SEC. 9.

 Section 7582.22 of the Business and Professions Code is amended to read:

7582.22.
 (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 they are qualified, or the person who is qualified to act as the licensee’s manager, if the licensee is not qualified. Any licensee conducting business in this state whose primary office is located outside of this state shall do both of the following:
(1) Maintain an office in this state operated under the active direction, control, charge, or management of a qualified manager.
(2) Maintain at the office in this state all records required under this chapter and under rules adopted by the bureau.
(b) No person shall act as a qualified manager of a licensee until he or she has they have complied with each of the following:
(1) Demonstrated his or her their qualifications by a written or oral examination, or a combination of both, if required by the director.
(2) Made a satisfactory showing to the director that he or she has they have the qualifications prescribed in Section 7582.8 and that none of the facts stated in Section 7582.24 or 7582.25 exist as to him or her. them.
(c) The director shall issue a qualified manager certificate to any person meeting the requirements of this section. The certificate of the qualified manager shall be prominently displayed below the branch office license at the principal place of business. If the principal place of business is outside of this state, then the certificate of the qualified manager shall be posted below the branch office certificate at each branch office.

SEC. 10.

 Section 7586 of the Business and Professions Code is amended to read:

7586.
 (a) A private patrol operator license, branch office certificate, qualified manager certificate, and pocket card issued under this chapter expires at midnight on the last day of the month two years following the date of issuance unless renewed.
(b) To renew an unexpired qualified manager certificate, the qualified manager shall apply for renewal on a form prescribed by the director, pay all fines assessed to the certificate, and pay the renewal fee as provided in this chapter. To renew an expired certificate, the qualified manager shall apply for renewal on a form prescribed by the director, pay all fines assessed to the certificate, the renewal fee, and the delinquency fee as provided in this chapter.

SEC. 11.

 Section 7586.3 of the Business and Professions Code is amended to read:

7586.3.
 A suspended license or license, branch office certificate certificate, or qualified manager certificate 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 in any other activity or conduct in violation of the order or judgment by which the license was suspended, and renewal of the branch office certificate or qualified manager certificate does not entitle the licensee, while the certificate remains suspended, and until it is reinstated, to engage in the licensed activity at the location for which the certificate was issued, or to engage in any other activity or conduct in violation of the order or judgment by which the certificate was suspended.

SEC. 12.

 Section 7586.4 of the Business and Professions Code is amended to read:

7586.4.
 A revoked license or license, branch office certificate certificate, or qualified manager certificate is subject to expiration as provided in this article, but it may not be renewed. If it is reinstated after its expiration, the licensee, as a condition precedent to its reinstatement, shall pay a reinstatement fee in an amount equal to the renewal fee in effect on the last regular renewal date before the date on which it is reinstated, plus the delinquency fee, if any, accrued at the time of its revocation.

SEC. 13.

 Section 7588 of the Business and Professions Code, as added by Section 41 of Chapter 287 of the Statutes of 2022, is amended to read:

7588.
 The fees prescribed by this chapter are as follows:
(a) The application and examination fee for an original license for a private patrol operator shall be at least five hundred fifty dollars ($550) and may be increased to an amount not to exceed six hundred five dollars ($605).
(b) The application fee for an original branch office certificate for a private patrol operator 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).
(c) The fee for an original license for a private patrol operator shall be at least seven hundred seventy dollars ($770) and may be increased to an amount not to exceed eight hundred forty-seven dollars ($847).
(d) The initial application and examination fee for an original certificate for a qualified manager 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).

(d)

(e) The renewal fee is as follows:
(1) For a license as a private patrol operator, the fee shall be at least nine hundred dollars ($900) and may be increased to an amount not to exceed nine hundred ninety dollars ($990).
(2) For a branch office certificate for a private patrol operator, the fee 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).

(e)

(f) The delinquency fee for a license, registration, or certificate is 50 percent of the renewal fee in effect on the date of expiration, but not less than twenty-five dollars ($25).

(f)

(g) A reinstatement fee is equal to the amount of the renewal fee plus the regular delinquency fee.

(g)

(h) The fee for reexamination of an applicant or the applicant’s manager shall be at least sixty dollars ($60) and may be increased to an amount not to exceed sixty-six dollars ($66).

(h)

(i) Registration fees pursuant to this chapter are as follows:
(1) A registration fee for a security guard shall be at least fifty-five dollars ($55) and may be increased to an amount not to exceed sixty dollars ($60).
(2) A security guard registration renewal fee shall be at least forty dollars ($40) and may be increased to an amount not to exceed forty-four dollars ($44).

(i)

(j) Fees to carry out other provisions of this chapter are as follows:
(1) (A) 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).
(B) 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).
(2) (A) An initial baton permit fee shall be sixty dollars ($60) and may be increased to an amount not to exceed sixty-six dollars ($66).
(B) A baton permit renewal fee shall be forty dollars ($40) and may be increased to an amount not to exceed forty-four dollars ($44).
(3) (A) An application fee for certification as a firearms training facility shall be at least eight hundred dollars ($800) and may be increased to an amount not to exceed eight hundred eighty dollars ($880).
(B) A renewal fee for certification as a firearms training facility shall be at least seven hundred fifty dollars ($750) and may be increased to an amount not to exceed eight hundred twenty-five dollars ($825).
(4) (A) An application fee for certification as a baton training facility shall be at least seven hundred dollars ($700) and may be increased to an amount not to exceed seven hundred seventy dollars ($770).
(B) A renewal fee for certification as a baton training facility shall be at least five hundred fifty dollars ($550) and may be increased to an amount not to exceed six hundred five dollars ($605).
(5) (A) An application fee for certification as a firearms or baton training instructor 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).
(B) A renewal fee for certification as a firearms training instructor shall be at least three hundred dollars ($300) and may be increased to an amount not to exceed three hundred thirty dollars ($330).
(C) A renewal fee for certification as a baton training instructor shall be at least two hundred seventy-five dollars ($275) and may be increased to an amount not to exceed three hundred three dollars ($303).
(6) 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.
(7) The fee for a Certificate of Licensure, as specified in Section 7582.11, shall be twenty-five dollars ($25).

(j)

(k) The fee for an endorsed verification of registration, licensure, certification, or permit shall be twenty-five dollars ($25). The verification document shall include the registration, license, certificate, or permit number, the registration, license, certificate, or permit history and current status, the date of the endorsement, an embossed seal, and the signature of the chief.

(k)

(l) The reinstatement fee following a suspension pursuant to Section 7587.11 shall be 25 percent of the renewal fee.

(l)This section shall become operative on January 1, 2024.

(m) 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).

SEC. 14.

 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.
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