DIVISION 3. Professions and Vocations Generally
CHAPTER 11.6. Alarm Companies
ARTICLE 12. Alarm Company Operators--Conduct of Business, Prohibited Acts
Cal Bus & Prof Code § 7599.54 (2006)
§ 7599.54. Installation agreements
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. 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:
(a) The name, business address, business telephone number, and license
number of the licensed alarm company operator and the registration number of
any alarm agent who solicited or negotiated the agreement.
(b) The approximate dates when the work will begin and be substantially
(c) A description of the work to be done, a description of the materials
to be used, and the agreed consideration for the work.
(d) A disclosure that alarm company operators are licensed and regulated
by the Bureau of Security and Investigative Services, Department of Consumer
Affairs, Sacramento, CA, 95814.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) 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:
(1) 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.
(2) If the payment schedule contained in the agreement provides for a
down payment to be paid to the licensee by the owner or the tenant before
commencement of the work, that down payment shall not exceed one thousand
dollars ($ 1,000) or 10 percent of the contract price, excluding finance
charges, whichever is the lesser.
(3) 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
down payment authorized by paragraph (2). 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.
(4) 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.
(5) A description of what constitutes substantial commencement of work
pursuant to the contract.
(6) 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.
(7) 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.
(8) 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.
A violation of this section or failure to commence work pursuant to
paragraph (6) of subdivision (h) may result in a fine of one hundred dollars
($ 100) for the first violation and a five hundred dollar ($ 500) fine for
each subsequent violation.
Cal Bus & Prof Code § 7599.54 (2006) § 7599.54. Installation agreements
DIVISION 3. Professions and Vocations Generally