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Question
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Ken:
    I have a question that I would like answered:
    Florida:
    Is an alarm contract enforceable (especially the 60 month term) if the respective alarm salesperson or the alarm company is not fully licensed?
    Even if the alarm contract is sold to a third party funding company?
Dennis R. Pieta
Computerized Security Systems, Inc. AND
TEAMTRONICS, INC.
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Answer
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    Generally if the alarm company or its sales people don't have required licenses that are consumer oriented the alarm company will not be able to enforce the contract - for collections.  If the home owner sues the alarm company alleging breach of contract I think the alarm company will be able to rely on the contract.
    Transferring the contract to a licensed company will not cure the problem that no license was in place when the contract was first executed.
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Question
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Ken, 
    learned a lot from your newsletter. Im a new business owner and I am having trouble understanding how hiring installers works, and I was hoping you could help me figure it out. If I understand correctly, I have to list someone as an employee for their work to be covered by my license, is that so? Do I have to hire them as a full or part time employees, or can I have a contract that allows them to work when jobs arise, but keep them on my roster? I don't have enough installations to need a full time installer, but I don't want to do everything by myself. How do you
recommend I proceed? 
Thanks,
David
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Answer
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    Since you have a license you are probably in a state that requires that your employees be licensed, certified or registered in some manner.  You must comply with those requirements.  No short cuts.  Won't matter if they are full or part time, still have to comply with license requirements.
    If you decide that you don't have enough work for a full or part employees you can use subcontractors.  They will not be your employee.  You should make sure that the subcontractor is properly licensed and all its employees are properly licensed.  The subcontractor should also carry workers comp insurance and E&O insurance.  Be sure to get your company named as an additional insured.
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comment on licensing
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Ken
    Really! Why are we discussing an issue (Licensing) when it never gets enforced and the customer doesn’t care about it? Even municipal agencies feel that licensing isn’t worth considering in a proposal. I have run into two towns that have chosen unlicensed contractors for their access control and surveillance projects not to mention commercial and residential clients. In the end of the day what matters most is “who is the cheapest”?
    I just renewed my NYS license and often wonder why it even exists.  There is not teeth to go with it.
John Romero
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comment
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Ken 
    Here is Arizona law referencing unlicensed contractors. 
A.R.S. §32-1153:
No contractor as defined in section 32-1101 shall act as agent or commence or maintain any action in any court of the state for collection of compensation for the performance of any act for which a license is required by this chapter without alleging and proving that the contracting party whose contract gives rise to the claim was a duly licensed contractor when the contract sued upon was entered into and when the alleged cause of action arose.
    There are many case laws that come up on a simple Google search for each State. There are no federal laws, because Contractor Licensing is a State by State issue. Here is a Contractor site reference, one of many found with a simple Google search. http://constructionpronet.com/Content_Free/2013-2-22CCA.aspx
Thank you, 
Roger D. Score, President
Arizona Alarm Dealers Association
http://arizonaalarmdealers.org/BTR_
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Question
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Ken,
    I read your letter that said 19 states required alarm licensing.  Can you please give me your list of the 19 states as we have contacted several states regarding video monitoring and probably have  a different list.
Norm Charney, CEO
Stealth Monitoring Inc
Addison, TX 
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Answer
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    We are still working on our web site but we have most of the states up - you can find the info at https://www.kirschenbaumesq.com/page/alarm-law-issues
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com.  Most comments and questions get circulated.

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Speaking Engagements

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Metropolitan Burglar and Fire Alarm Assoc of New York.  May 15, 2014 4:30 to 6:30 PM at Marriot Hotel, Uniondale, NY.  Comprehensive analysis and comparison of the Standard Form All in One contracts.  All alarm dealers welcome.  No charge for attendance. Dinner and MBFAA meeting will follow the seminar.  For more info and to RSVP contact Alan Glasser, Executive Director of MBFAA at 718-894-6712 or mbfaa.ny@gmail.com

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Northeast Security & Systems Contractors Expo  Thursday, May 22, 2014 10 am to 5 PM at  Royal Plaza Trade Center,  Marlborough, MA.  registration  https://www.expotracshows.com/neacc/2014/  Presentation on Alarm Law issues and Q&A will be at 2 PM.  For more info contact Gary Spaulding, NEACC President

207-384-2420 gary@spauldingsecurity.com
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Alabama Alarm Association.  AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205  for more info contact AAA Executive Director: director@alabamaalarm.org  (205) 933-9000 

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Electronic Security Summit for 2014.  October 22-24, 2014  at the landmark Broadmoor Hotel. Colorado Springs, CO.  For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC.,  (786) 999-9738    alex.quirin@aspsummits.com    www.aspsummits.com

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