Fines for Central Stations reporting alarms for subscribers without alarm
permits. That’s the idea the legislature of Nassau County, NY tossed around
last night. Fortunately members of Long Island Alarm Association attended,
spoke against the proposal and the proposal was defeated. Central stations of
course don’t install the alarm and in most cases have contact with the
subscriber only when one of its operators calls to confirm or report an alarm
signal. So why fine the central station?
The real agenda is revenue raising. Under the guise of exercising
its police powers, necessary for the protection of the public, governmental
entities enact permit requirements and false alarm fines. Contesting the
government’s right to impose permits and fines was lost long ago, but fines that
are for the most part beyond the control of the central station strike me as
patently unfair. Enforcement may therefore be challenged.
What could be the justification to fine the central station? It’s
the central station that makes the call to the police, fire department or
emergency services. The central station could certainly refuse to dispatch
police if it has no record of a required permit. Interestingly enough, one
could argue that the police also could choose to ignore a call if it cannot
ascertain a permit. I suspect the police would be risking at least bad
publicity if not liability if it ignored an alarm call just because there was no
permit. Why then does the legislature put the central station in the position
of ignoring the signal or risking a fine? It’s not fair and the alarm industry
should not stand for it.
Permits can serve a useful purpose if designed properly. Those
registering for permits can be required to provide certain information that
would be useful to those responding to alarms, such as address, access, contact
persons, and other information about the premises and those in the premises.
Also permits can be useful if end users are required to have the equipment
installed, serviced and checked by a licensed alarm company. Renewal of permits
could require inspection of the alarm by a licensed alarm company. All this of
course would help the alarm industry, end users and the police.
The installing alarm company is in the best position to advise the
end user what permits are required. We are not at the point where everyone
should know that one or more permits are required for an alarm system. I don’t
recall a car dealer reminding me that I need a driver’s license when I buy a
car, but alarm permits aren’t that ubiquitous. So installing alarm companies
should be required to advise the end user that permits are required, and a
permit should require that a licensed alarm company certify that the system was
properly installed.
Renewal permits should also require certification from a licensed
alarm company that the system was inspected, but the onus of getting the renewal
permit should rest with the end user.
It’s the end user who should be fined for no permits once properly
notified by the installing company that permits are required. Failure to
provide the notice should result in a fine to the installer.
But it’s easier to fine the central station and there’s probably
less political fallout. Why not look to only a handful of central stations
instead of numerous installers. End users are already taxed beyond
comprehension and this would just be more to complain about.
A central station will have to risk the fines or refuse to provide
notice if there is no permit. The hard choice is then risking sizable fines or
risk losing many subscribers and dealers.
Can the central station pass the cost of the fines to the installers
or subscribers? The monitoring contracts provide for that. I just changed the
monitoring contracts, three party contracts and the Installer contracts to
provide for that. The installer and subscribers must indemnify the central
station if there are permit or false alarm fines. Whether these new indemnity
provisions will hold up remains to be seen. The Disclaimer Notice should
disclose the permit requirements.
Nassau County can’t be the only jurisdiction considering these
permits and fines, and such requirements may already be in place. Central
Stations need to update their Installer Contracts and Three Party Contracts.
Dealers need to update the monitoring contracts and use the Disclaimer Notice.