more on giving up password / comments on reprogramming system after subsscriber default - October 4, 2012

see below for The Alarm Exchange

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Ken,
Texas makes it a little easier for us to understand, and also give us some legal grounds to ask for protection when/if passwords are given to end users. The law below applies only to fire alarms, but the concept is the same for burglar alarms as well. If the state can have legislation which dictates a release of liability for fire alarms, it seems to this layman that that same law would establish a legal background and reasoning for including such a release for burglar alarms. See below for the wording of the law.
In burglar alarms, there are two levels of codes. On capability that can be given to an end user is one which allows them to change only the user codes. Another level which could, but usually should not be given, would allow them to change the programming of the system functions, such as which zones report, what signals are reported for each zone, characteristics of that zone and of the system. That part of the program should be handled only by a professional. If a user who thinks he knows that he wants to change something in this section were to be allowed to make the change, then the system might not perform correctly, or at all. That would open liability issues of who made the mistake in programming. Was it the installing company or was it the end user? We can guess with a certain amount of accuracy which one the end user would claim after a loss.
Texas, for fire alarms, has stated in the Texas Administrative Code 34.616 (6) in red below, that a registered firm must give all passwords, but only after the system owner (which to me implies a sold system as opposed to a leased system?) signs a liability waiver “provided by the registered firm”. So the installing company gets to put in language which would release it from any liability for the system not working correctly due to anything in the program of that system.
Gary Dawkins, CEO
Response Center USA
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Response
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Texas has a law that provides for giving up the code and getting a waiver of liability. Thanks for providing a copy of the statute, which is below. There is no special form for the waiver. If anyone needs one prepared contact our Contract Administrator, Eileen Wagda at 516 747 6700 ext 312 and we will provide it for a nominal charge.
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Texas Administrative Code TITLE 28
INSURANCE
PART 1
TEXAS DEPARTMENT OF INSURANCE
CHAPTER 34
STATE FIRE MARSHAL
SUBCHAPTER F
FIRE ALARM RULES
RULE §34.616
Sales, Installation, and Service
(a) Residential Alarms (Single Station).
(1) Registered firms may employ persons exempt from the licensing provisions of the Insurance Code §6002.155(10) to sell, install, and service residential, single station alarms. Exempted persons must be under the supervision of a residential fire alarm superintendent (single station), residential fire alarm superintendent, or fire alarm planning superintendent.
(2) Each registered firm that employs persons exempt from licensing provisions of the Insurance Code §6002.155(10) is required to maintain documentation to include lesson plans and annual test results demonstrating competency of said employees regarding the provisions of the Insurance Code Chapter 6002, adopted standards, and this subchapter applicable to single station devices.
(b) Fire Detection and Fire Alarm Devices or Systems Other than Residential Single Station.
(1) The installation of all fire detection and fire alarm devices or systems, including monitoring equipment, subject to the Insurance Code Chapter 6002 must be performed by or under the direct on-site supervision of a licensed fire alarm technician, residential fire alarm technician, residential fire alarm superintendent, or a fire alarm planning superintendent, for the work permitted by the license. The certifying licensee must be licensed under the ACR number of the primary registered firm and must be present for the final acceptance test prior to certification.
(2) The maintenance or servicing of all fire detection and fire alarm devices or systems must be performed by or under the direct on-site supervision of a licensed fire alarm technician, residential fire alarm technician, residential fire alarm superintendent or a fire alarm planning superintendent, for the work permitted by the license. The licensee attaching a label must be licensed under the ACR number of the primary registered firm.
(3) If the installation or servicing of a fire alarm system also includes installation or servicing of any part of a fire protection sprinkler system and/or a fire extinguisher system other than inspection and testing of detection or supervisory devices, the licensing requirements of the Insurance Code Chapters 6001 and 6003 must be satisfied, as appropriate.
(4) The planning and installation of fire detection or fire alarm devices or systems, including monitoring equipment, must be in accordance with standards adopted in §34.607 of this chapter (relating to Adopted Standards) except when the planning and installation complies with a more recent edition of an adopted standard or a Tentative Interim Amendment published as effective by the NFPA.
(5) Fire alarm system equipment replaced in the same location with the same or similar electrical and functional characteristics and listed to be compatible with the existing equipment, as determined by a fire alarm planning superintendent, may be considered repair. The equipment replaced shall comply with the current adopted standards but the entire system is not automatically required to be modified to meet the applicable adopted code. The local authority having jurisdiction shall be consulted to determine whether to update the entire system to comply with the current code and if plans or a permit is required prior to making the repair.
(6) Upon request of the owner of the fire alarm system, a registered firm must provide all passwords, including those for the site specific software, but the registered firm may refrain from providing that information until the system owner signs a liability waiver provided by the registered firm.
(c) Monitoring Requirements.
(1) A registered firm may not monitor a fire alarm system located in the State of Texas for an unregistered firm.
(2) A registered firm may not connect a fire alarm system to a monitoring service unless:
(A) the monitoring service is registered under the Insurance Code Chapter 6002 or is exempt from the licensing requirements of that chapter; and
(B) the monitoring equipment being used is in compliance with the Insurance Code §6002.25.
(3) A registered firm must employ at least one technician licensee at each central station location. Each dispatcher at the central station is not required to be a fire alarm technician licensee.
(4) A registered firm subcontracting monitoring services to another registered firm must advise the monitoring services subscriber of the identity and location of the registered firm actually providing such services unless the registered firm's contract with the subscriber contains a clause giving the registered firm the right, at the registered firm's sole discretion, to subcontract any or all of the work or service.
(5) A registered monitoring firm, reporting an alarm or supervisory signal to a municipal or county emergency services center, shall provide, at a minimum, the type of alarm, address of alarm, name of subscriber, dispatcher's identification and call-back phone number. If requested, the firm shall also provide the name, registration number, and call-back phone number of the firm contracted with the subscriber to provide monitoring service if other than the monitoring station.
(6) If the monitoring service provided under this subchapter is discontinued before the end of the contract with the subscriber, the monitoring firm, central station, and/or service provider shall notify the owner or owner's representative of the monitored property and the local authority having jurisdiction, a minimum of seven days before terminating the monitoring service. If the monitored property is a one- or two-family-dwelling, notification of the local authority having jurisdiction is not required.
Source Note: The provisions of this §34.616 adopted to be effective February 27, 1995, 20 TexReg 1021; amended to be effective November 27, 1995, 20 TexReg 9449; amended to be effective August 26, 1996, 21 TexReg 7663; transferred effective September 1, 1997, as published in the Texas Register November 14, 1997, 22 TexReg 11091; amended to be effective April 1, 2006, 31 TexReg 1711; amended to be effective July 5, 2011, 36 TexReg 4111
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comments on reprogramming system after subsscriber default
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Ken
When I change cellphone (usually at service provider's request), the old phone is dead. I can't even get to my phonebook. Cellphone may also be considered "life safety" device (to call for help) just like alarm system. Once alarm subscriber stops paying for monitoring, the alarm (even if they purchased it) should stop working - just like the phone stops working, or a message "disconnected" or "not monitored" should be displayed to notify other alarm users (employees or family members) they should not rely on protection.
Dusan
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Ken
Why can't we remove all programming? The customer didn't purchase our programming of the system, they purchased the equipment only (per our contract). If someone isn't going to pay me for the RMR, they can get their book out and program their equipment. We look at it as a continued liability if they are using our programming for safety but we have no contract.
David L. Myers
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Ken,
I have heard of a dealer simply re-programming all zones as 24 hour zones in the case of non-payment. In that case the customer either has to power down the system themselves leaving them with NO system, or pay you COD for service to power it down or re-program properly again. Obviously you’ll most likely lose the customer regardless of the outcome.
Are there any liabilities there?
Bob Klein
RK Electronic Services
Monroe, CT
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Response
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The real issue is, what relationship is the subscriber terminating? If the subscriber buys a system and then signs up for monitoring, which is later canceled, then it's only the monitoring that should be stopped, and I agree with Dusan that it can simply end; no more service, and you can post it on the key pad if possible. [by the way that is the best justification for automatic renewal, even month to month - because if the contract term ends, so would the service, without the auto renewal provision].
I've had cases where the alarm company has disabled the alarm system when only monitoring was terminated. They don't go well for the alarm company. Understand what service the subscriber is canceling or refusing to pay for and terminate only that service.

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Speaking engagements:
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Electronic Security Association of Virginia, Annual Conference.and Trade Show. October 16, 2012 at Virginia Beach Resort Hotel and Conference Center. For more information contact Lynn Comer at lynn.comer@shenvalleysec.com; (800) 538-2322
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Want to schedule me, Jennifer or Dennis Stern for a speaking engagement? Alarm associations can book my presentation by calling Eileen in my office at 516 747 6700 x 312.