KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ****************************** Comment on license holder risks October 1, 2020 **************************** Comment on license holder risks from article on September 25, 2020 **************************** Ken The article on September 25, 2020 was about an alarm license holder who wants to hold the license for 5 or 6 companies and is concerned with liability. This alarm dealer wrote "I am concerned about liability. I’ll be acting as qualifier for 5-6 companies within the next year and obviously I can’t manage all their activity." If "Name withheld" is in the State of New York he has to contend with the following law: TITLE 19 NYCRR SECURITY AND FIRE ALARM SYSTEMS PART 195 LICENSING REGULATIONS FOR THE BUSINESS OF INSTALLING, SERVICING OR MAINTAINING SECURITY OR FIRE ALARM SYSTEMS §195.3 Qualifying officers or managers An individual (qualifier) may make an application for licensure on behalf of a company, firm, partnership or corporation: (a) In the case of a company, firm or partnership, such application must be accompanied by evidence that the qualifier is a principal in the company to be licensed. Such individual must meet all applicable licensing requirements. (b) In the case of a corporation the qualifier may be an officer or employee of the corporation. In addition to meeting all applicable licensing requirements, such individual must direct and control the operation of the corporation. Such direction and control must be real and substantial and take place on a day to day basis. Alan Glasser, Executive Director METROPOLITAN BURGLAR & FIRE ALARM ASSOCIATION OF NEW YORK, INC. (718) 894-6712 mbfaa.ny@gmail.com www.mbfaa.com ************************** Response ************************** The Alarm Exchange certainly opened up the opportunity for those qualified to get an alarm license to hold the license for companies. In some of these situations the license holder is either an owner or employee of the company, but in other cases the proposed license holder has no affiliation whatsoever. Licensing laws differ from state to state, and so does the responsibility of the license holder. More importantly, the intended operation of the business within the state, over which the license holder is supposed to exercise supervision, dictates the level of supervision and oversight needed. For example, and I think this was the original idea that encouraged the opportunity, a nationwide operation requires a license holder because monitoring is covered by the license. The company intends to ship DIY equipment into the state and the customer will install and activate the monitoring. In some 20 states an alarm license is required even though the company will have no employees in the state and doesn't do installation or repair in the state. In this case the license holder will have very little to do and could very well hold the license for multiple companies. But other companies need a license holder because they do installation, inspection and repair in the state. They have employees who visit homes and commercial businesses. They install and service fire, intrusion and other systems. Maybe they have few or many employees. Now the license holder has plenty of oversight and supervision that will be required. In fact, the license holder may be required to devote full time to the required license activities. In this scenario the license holder would not be expected to be able to hold the license to more than one company engaging in such activities. Keep in mind that the article on September 25, 2020 discussed the license holder's personal liability. The most obvious risk is extending himself beyond the possibility of proper performance of having his license suspended or revoked as well as fines. Not only would the license holder be at risk of losing his valuable license, but the company might be fined and required to incur other expense, including existing the state for period of time. Thus both the license holder and the company have a keen interest is protecting themselves. That's why K&K's oversight of the license holder and company relationship is important and why the Qualifier Agreement is necessary. If you're a potential license holder or company looking for a license holder, contact our License Coordinator Eileen Wagda at 516 747 6700 x 312 or email her at EWadga@Kirschenbaumesq.com. Eileen also serves as our Contract Administrator. ************************* To order up to date Standard Form Alarm / Security / Fire and related Agreements, click here: www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
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