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FOLLOW UP TO LICENSE REQUIREMENT FOR ALARM COMPANY AND ITS SUBCONTRACTOR FROM JUNE 30, 2016
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Ken,
    It is true for most states that the contractor and all subcontracts must hold licensing for the trade they are performing in that state, with exception in NY.  NY doesn't want out side contractors in their state so they only require the sub or contractor to be licensed that is actually doing the work, and they will deal with them locally. I am personally licensed in 24 states and this is the only one I have found this way.
Thanks,
MSH
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RESPONSE
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    Here is a good example of confusion regarding licensing in the alarm industry.  A licensed qualifier offers his opinion that in NY the contracting alarm company doesn't have to be licensed as long as the subcontractor doing the work is licensed.
    I disagree.  An unlicensed alarm company cannot contract for sale, installation or service of alarm systems in New York, no matter who it uses to do the work.  The test isn't whether the NYS Division of Licensing Services will take any action against the unlicensed alarm company.  Here is what I base my opinion on:  An unlicensed contractor will not be able to enforce its contract in New York.  
    If the unlicensed alarm company isn't doing the work and isn't contracting for the work, then what is it doing?  Acting as a referral source and looking for a kick back?  
    As I mentioned in my article on June 30, 2016 you have to look at the license law carefully to determine if you're engaging in licensed activity.  You can't hide behind your subcontractor's license if you are the one contracting for the service, at least not in a jurisdiction that licenses the sale of the system.  If a jurisdiction is focused on technical skills and qualifications pertaining to installation and service then it may be that an unlicensed alarm company can contract for the service as long as the subcontractors are licensed.  But I don't think it's a good idea.  Sometimes a law affecting your operation won't be found in the licensing law.  The prohibition in New York that prevents an unlicensed contractor from enforcing its contract for the licensed activity is not in the license law. 
    I am going to stick with my original advice.  If you contract for the work, be licensed.  If you do the work, be licensed.  Contact me or our licensing department for legal assistance with licensing issues, including a Qualifier Agreement.  For licensing contact Nicoletta Lakatos,Esq at 516 747 6700 x 311 or NLakatos@KirschenbaumEsq.com.  To be sure your subscriber agreements are compliant and up to date contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or EWagda@KirschenbaumEsq.com.
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