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 whitelist ken@kirschenbaumesq.com ****************************** When can use license holder to qualify for your alarm business and how do you get one May 15, 2024 ***************************** When can use license holder to qualify for your alarm business ***************************** Almost all states have a license law for engaging in the electronic security and fire alarm business, which almost always includes cameras and access control and a slew of other devices that have emerged in the industry as detection [and in some cases deterrent] devices. In the few states that don’t have a statewide license law there are cities and municipalities within the state that have their own license or registration requirements. All of the license laws share a common element, they require a live person to meet the licensing requirements and to obtain and maintain the license on behalf of the business. The criteria for qualifying for the license differs in the jurisdictions; reciprocity is not generally recognized, requiring a license in each jurisdiction. One of my favorite questions is do I need the license [a reasonable question] and what happens if I don’t get the license and do work anyway [a question requiring a little more thought]. I often respond, well you can drive from New York to California without a driver’s license or insurance and maybe you’ll make it without getting caught and no accident; maybe not. License enforcement in different jurisdictions various, from seldom to often and aggressive. Consequence if you get caught can vary from slip on the wrist to crushing monetary fines, forced surrender of contracts you’ve entered into, refund of money you collected, suspension or revocation of the right to conduct business in the jurisdiction. In other words, consequences can range from warning to out of business and large fines. With companies expanding to multiple states, some nationwide, it’s not easy to qualify for the alarm license. Having one person, even you, qualify in all jurisdictions would be putting all your eggs in one basket. Also, since more than one state has residency requirements it’s not likely one person can qualify in all jurisdictions. You have to turn to others who can qualify and hold the license for your company. That relationship needs to be carefully structured because the relationship between qualifier and company is as varied as the different state laws. The responsibilities and duties of the qualifier also varies among jurisdictions. Each jurisdiction will have its own peculiar requirements and responsibilities. \ The Kirschenbaum Contract™ that should be used to structure and document this relationship is the Qualifier Agreement. This is a customized agreement prepared for each relationship and deal. The cost of the Qualifier Agreement includes K&K License Coordinator finding the business a suitable candidate for the license holder, though no guarantee K&K can find someone. You need the Qualifier Agreement whether K&K finds you the license holder, you get someone else to find a license holder, you find a license holder on your own, including someone who already works for you as an employee. The only time you don’t need a K&K Qualifier Agreement is if you own the company and you will hold the license. A proper license holder will be someone who actually can and does perform the requirements of the license holder; the company will of course need to be cooperative and compliant with the license laws and permit the License Holder to do the duties of that job. The Qualifier Agreement is a Standard Kirschenbaum Contract ™ form that you get on line. K&K Contract Administrator will then contact you to get the details for the agreement. If you also need assistance finding a license holder contract K&K License Coordinator [who is also the Contract Administrator] by calling Eileen Wagda at 516 747 6700 x 312 or emailing her at EWagda@Kirschenbaumesq.com. **************************** STANDARD FORMS 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** 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
