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more on retaining properly executed electronic contracts / CA here we come - licensing
September 4, 2017
    Regarding the electronic contract and valuation topic, in your response, you stated: “…especially if executed and retained properly.”  Please expand upon what “retained properly” means.  In other words, and in detail, how should we legally and properly retain electronic versions of our contracts?
    Curious question to buyers out there:  Currently we store our contracts in our cloud accounting software (offsite), a second separate cloud software (offsite) and on our local server (onsite) in which all are updated daily.  I’m curious if any buyer would mind commenting on whether we should print a hard copy for the client’s file or are any one of our electronic versions sufficient.  Thanks,
Kyle Beller
    How you retain electronic contracts is easy - same way you retain paper contracts.  You retain the full, complete copy of the contract, preferably in real size format or if reduced be sure to indicate that somewhere.  I can't emphasize enough that you must retain the complete contract, not just part of it.
    Remember if you are executing contracts electronically you should be using our Disclosure and Consent to Electronic Communication form, especially if you have residential subscribers.
    Where you store your contracts matters less than making sure you can retrieve them.  Think of the contracts as cash.  If you lose it then it's worthless.  More than one back-up is a good idea.
CA here we come - licensing

    Morgan Hertel from Rapid Response just devoted considerable time trying to figure out alarm licensing in California.  He has graciously granted permission for me to share his findings:
    I have spent a couple hours with the Chief of the BSIS on this and just to clarify for all,  these are not new laws but are now going to be aggressively enforced.
    The California Alarm Association is  going to have representatives from the BSIS at the upcoming CAA winter convention, I would encourage interested parties to come and participate in the meetings

    Initially, I tried to list all the variants of business models into a matrix but the more I looked at it the more I came to realized that it doesn’t make any difference the way she explained it.  Boils down to if you are either selling systems, installing systems or monitoring systems located in the State of California you have some licensing that has to be done.
    As I understand the rules this is what would be required, obviously, you will need to verify this with BSIS but this is what we were told on a long phone call meeting.
  • Each company needs to have an ACO, (Alarm Company License) in the case of a company using a contract monitoring company both would have to be licensed separately.
  • Any company that does not have its headquarters in California will be required to have a Branch License in addition to the ACO plus an in-state physical location that BSIS can come to inspect employee records and to verify business operations for the State.
  • If you are licensed as a branch office you must have either a AQM (Qualified Manager) or ACE (Alarm Company Employee) that works(employed) for/by the company at the branch office as the Branch Manager that would become the point of contact or service.
  • There has to be a verifiable way that a company can show how the QM or Branch Manager is effectively managing and being responsible for the work that is being done in California.
  • Any employee regardless of where they are physically located would need to have an ACE (Alarm Company Employee) license if they were working on or with California accounts.  Would include sales, service, administration or monitoring, basically anyone that touches or has access to the data or programming of the systems or sensitive information.
  • All licenses for the State of California require fingerprints/livescan and a background check in order to be licensed. 
    Bottom line, our licensing department can help - help you figure out if you need to be licensed; help you find a qualifier and help you with the application if necessary.  Contact Jennifer Kirschenbaum, Esq at or 516 747 6700 x 302 or our Contract Administrator Eileen Wagda at or 516 747 6700 x 312 [Eileen can hook you up with your contract needs too].  


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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
516 747 6700