August 20, 2011
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Question
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Dear Ken,
As you well know in the State Of New York you must be licensed to install security cameras CCTV, access control system or fire alarm systems as per Article 6-D of the General Business Law. If you are unlicensed you can be fined up to $10,000.00.
I have sent many complaints to the department of state of unlicensed installers, with there ads from Craigs List showing the dept. that they are unlicensed. A letter was sent to me, asking me to send them more sufficient evidence about there services.
After speaking to a Mr. Lee from the dept. he stated that the dept. is under staffed and an advertisement is not sufficient to look into this matter. The only way is to show them a signed contract from the unlicensed company.
Ken I would like to know from you and your readers is there any other way we (licensed installer) can combat this widespread problem.
Thank You
Steven Pagliaro
Safe World Alarm Co.
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Answer
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Thirty years ago there was no alarm licensing (excuse me if your state had a license). Now just about every state has some form of license or registration process. More often than not it was the alarm associations in the state that pushed for licensing. That was certainly the case in New York and we are seeing it now in Arizona. I suppose from the alarm association's perspective state licensing 1) preempts local municipal licenses, 2) weeds out the rift raft in the industry, 3) insures continuing education and minimum levels of experience and expertise, and 4) provides agency oversight to enforce rules and regulations.
Well, guess what? You got almost all you asked for.
Statewide licensing has not completely eliminated local municipal licenses or registration. Local agencies continue to require registration, permits and other charges, but not a "license" if preempted by state law.
Some rift raft were chased away, but most weren't scared away. They don't comply with most legal requirements so a license law isn't going to stop them. Since they haven't registered or submitted a license they remain off the radar screen of the licensing agency.
Those that do comply with the licensing requirements should have some benefits, mostly in terms of structure. Most license laws contain regulations that deal with employment, records, contracts, conduct and education. By simply complying with the rules you should be in a better position from a business point of view. Of course your costs may be a bit higher and you may find that being undercut from an unlicensed competitor hard to swallow.
Oversight. You'll have that. And since you're the one licensed you can expect to have audits [here in NY the licensing agency, Division of Licensing Service, started auditing all licensed alarm companies], have consumer complaints investigated and generally get the oversight the licensing statute requires. The unlicensed competitor avoids all that but does risk consequences if eventually caught.
As a licensed alarm company you should feel some satisfaction when you see unlicensed activity. Although the unlicensed company may operate for a long time with impunity, eventually the regulatory agency will get around to finding them. You can also get some satisfaction knowing that your unlicensed competitor really can't compete for the better higher end jobs, since those subscribers are usually smart enough to ask for licenses, and unlicensed contractors can't apply for permits. Insurance may be hard to find also. But best of all, unlicensed alarm companies probably can't accumulate subscriber contracts, and even if they do, they will have a hard time finding another alarm company willing to buy those contracts since the installations and sales were not lawful at the time signed and installed.
Back on point, if you know of unlicensed activity you should continue to report it to the licensing agency. Eventually the agency will get around to enforcing their laws.