April 26, 2011
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Question
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Hello Ken,
I have been receiving your news letter for several years.
I am currently occupying the office of the President of the National Electronics Service Dealers association (NESDA). Our organization has 800 members and its members are involved in the consumer electronics service business (TV Repair etc.). I am sure that you are aware of the changes that have happened in the consumer electronics business in the last couple of year. These changes have not necessarily been good for the majority of our members.
Lately, I have noticed that more and more of our members are gravitating toward the installation of CCTV surveillance systems and they are completely unaware that these activities may be governed by the fire and Burg licensing laws. I have seen several post recently on our NESDANET (NESDA email list) and I have responded to several members publicly and steered them to your website as well as the NYBFAA.
Since our association is a national association, and I am only familiar with NY F&B laws, I can't offer advice to members who live outside of NY state. I really would like to avoid(for our members) the uncomfortable position that the author of your most recent contributor to your newsletter found himself in (cows left the barn).
Would you be willing to offer some sage advice (which I can post to NESDANET) about unlicensed activity. The members who I have corresponded with regarding this subject had no idea that their activities fall under the licensing law. They could not see any reason why their CCTV surveillance installations should be a licensed activity. They felt it was a benign service which they were providing to the end user, which would never be involved in any legal actions.
Ben Fowler, CSM, MST, A+
ABC Electronics Service Corp.
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Answer
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One good bit of advice for you is that you should refrain from offering "legal" advice even regarding New York law, which you hopefully are familiar with. No point risking giving the wrong advice. Even the right advice is often misheard or misinterpreted.
As you know, the sale, installation and service of CCTV in New York is subject to a New York Installer's Alarm License when the CCTV is security related. Most states are enacting or already have license requirements for alarm systems and each state would need to be reviewed to determine if CCTV is covered by the state license. You members can engage my firm for that review and inquiry, or start their own investigation by visiting my web site at http://www.kirschenbaumesq.com/alarmlicreqstate.htm
Failing to comply with licensing requirements can result in an unenforceable contract and can lead to civil and criminal action against the offender by the licensing agency. Ignorance of the licensing law is of course not an acceptable excuse and I am comfortable opining that it's not worth taking the risk of engaging in licensed activities if you don't have the license - especially if you get caught !!
In fairness, CCTV may present a different level of exposure for liability than an alarm system. In most cases CCTV is used for after the fact surveillance, not present time preventative security. Of course when you have a housing complex and real time camera monitoring there could be an expectation of security and intervention in the event of an incident. The point is that depending on the design of the CCTV, how it's used and how it's perceived, the liability can be the same as for an alarm system. Potential liability for alarm systems are extensive and unlimited, which is why alarm companies avail themselves of the right to contract away liability for the own negligence and breach of contract. Consumer electronic business owners are probably not aware of the potential exposure and risk associated with security systems, including CCTV, and they should educate themselves before engaging in the security business.