KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Follow up to where it’s Illegal for central station to monitor accounts for unlicensed alarm dealers
July 30,  2024
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Follow up to Illegal for central station to monitor accounts for unlicensed alarm dealers from article on June 21, 2024
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            In response to a question regarding criminal liability for doing business with an unlicensed alarm dealer [where a license is required] I mentioned that there are 7 states that penalizes central station who aid and abet unlicensed dealers by monitoring their accounts.  The original question involved a licensed alarm company doing business with an unlicensed alarm company. I have advised against that in all jurisdictions and noted that 7 states upped the ante by criminalizing or imposing severe penalties [monetary and license suspension and revocation].  In the article I suggested that dealers, particularly those who are unlicensed, to check with their central station to find out the central station’s policy on monitoring unlicensed dealers.  I also suggested that if the central station didn’t know about the 7 states that you call Rapid Response for the answer. 
            I decided to follow up on the issue.  Amanda Hayden is Rapid Response Monitoring’s Director of Compliance & Licensing, FSO.  She’s great at her job and was kind enough to share her hard work for the benefit of all, courtesy of Rapid Response.
            As I reported there are 7 states that either criminalize or severely penalize a licensed alarm company for aiding and abetting an unlicensed alarm company.  Some of the statutes address central stations directly, but the law would not be limited to central stations and would apply to contractors and subcontractors. 
            You can find the 7 states on the K&K website under Alarm Law Issues / States making it criminal or with severe fines for doing business with unlicensed alarm company: https://www.kirschenbaumesq.com/page/alarm-law-issues
          You can also find relevant portions of the law on the website.
          I want to thank Amanda and Rapid for sharing this valuable information.

Alabama

Virginia

 

Arizona

Arkansas

California

Florida

Illinois

Tennessee

Utah

 

 

 

Arizona: http://www.azleg.gov/viewdocument/?docName=http://www.azleg.gov/ars/32/00128.htm

 

32-128 C. The board may take disciplinary action against the holder of a certificate or registration under this chapter who is charged with the commission of any of the following acts:

 

3. Aiding or abetting an unregistered or uncertified person to evade this chapter or knowingly combining or conspiring with an unregistered or uncertified person, or allowing one's registration or certification to be used by an unregistered or uncertified person or acting as agent, partner, associate or otherwise of an unregistered or uncertified person, with intent to evade this chapter.

 

Arkansas:

https://www.dps.arkansas.gov/wp-content/uploads/2021/08/ACT-393-2021.pdf

17-40-301 (h) “Unlawful Acts” A credential holder or a licensee shall not contract or subcontract with an unlicensed person or uncredentialed individual to perform a service that requires a credential or a license under this chapter.

17-40-350. Grounds for disciplinary action.

(a) The Director of the Department of Arkansas State Police may suspend or revoke a license, credential, or commission or issue a fine in an amount not to exceed one thousand dollars ($1,000) for each violation of this chapter, or both, or the director may deny an application for a license, credential, or commission, or renewal thereof, on proof that the applicant, licensee, commission holder, or credential holder:

(1) Violated a provision of this chapter or violated a rule promulgated under this chapter;

 

California:

http://law.justia.com/codes/california/2016/code-bpc/division-3/chapter-11.6/article-12/section-7599.46

7599.46. No licensee shall aid and abet an unlicensed alarm company operator in any activity for which a license is required. A violation of this section may result in a fine of one thousand dollars ($1,000) for each violation.

Florida: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0400-0499/0489/Sections/0489.533.html

489.533 (2j) The following acts shall constitute grounds for disciplinary actions as provided in subsection (2): Performing any act which assists a person or entity in engaging in the prohibited uncertified and unregistered practice of contracting, if the certificate holder or registrant knows or has reasonable grounds to know that the person or entity was uncertified and unregistered.

Illinois:

http://www.ilga.gov/commission/jcar/admincode/068/068012400F05350R.html

1240.535b (Record Keeping Requirements)   Private alarm contractors who provide monitoring services shall maintain a separate roster of the names of all licensed agencies and/or individuals, including license number, from whom they accept monitoring contracts or assignments.  The roster shall be made available to the Division upon 24 hours notice.  It shall be considered unprofessional conduct, subject to discipline by the Division, for a licensed alarm contractor or agency to accept monitoring contracts or assignments from an unlicensed entity.

Tennessee:

http://www.lexisnexis.com/hottopics/tncode/

62-32-304 Prohibited Activities – Requirements

(e) No alarm systems contractor may participate in a joint venture to provide equipment or services that require certification under this part unless all parties to the joint venture are certified in accordance with this part.

(f) No contractor may subcontract the provision of equipment or services requiring a certification under this part to any uncertified person, firm, association or corporation except as provided in § 62-32-305(7).

 

Utah:

https://le.utah.gov/xcode/Title58/Chapter1/58-1-S401.html?v=C58-1-S401_2021050520210505

58-1-401 (2) The division may refuse to issue a license to an applicant and may refuse to renew or may revoke, suspend, restrict, place on probation, issue a public reprimand to, or otherwise act upon the license of a licensee for the following reasons:

(a)

subject to the provisions of Subsection (7), the applicant or licensee has engaged in unprofessional conduct, as defined by statute or rule under this title;

http://le.utah.gov/xcode/Title58/Chapter1/58-1-S501.html?v=C58-1-S501_2014040320140513

58-1-501 (2)(a): "Unprofessional conduct" means conduct, by a licensee or applicant, that is defined as unprofessional conduct under this title or under any rule adopted under this title and includes:

(ii) violating, or aiding or abetting any other person to violate, any generally accepted professional or ethical standard applicable to an occupation or profession regulated under this title;

 

Alabama:

https://aesbl.alabama.gov/wp-content/uploads/2023/11/AESBL-2023-State-Statute.pdf

Section 34-1A-7

(a) Effective January 1, 1998, it shall be unlawful for any individual or business entity to engage in a business regulated by this chapter in this state without a current valid license or in violation of this chapter and applicable rules of the board.

(d): Effective January 1, 1998, it shall constitute a Class A misdemeanor to willfully or intentionally do any of the following:

(3) While holding a license, allow another individual or business entity to use the license or      license number.

(4) Use, or permit the use of, any license by an individual or business entity other than the one       to whom the license is issued.

https://aesbl.alabama.gov/wp-content/uploads/2022/11/304-X-1_AESBL_Rules_effective_10-15-2022.pdf

 

304-X-1-5 Monitoring Stations

 

(b) Any person or business entity that offers to undertake, represents itself as being able to undertake, or does undertake the monitoring of an alarm system for the public for any type of compensation or, any monitoring station, must, with each renewal application, submit a report which provides the following: (1) the name of the person or business entity that requested their accounts be monitored as a system installer or dealer and (2) the date the company began monitoring accounts on behalf of the system installer or dealer. Said reporting list shall include monitored accounts for persons or business entities who have requested monitoring of accounts in the State of Alabama only and said list shall not include the individual customer list for each system installer or dealer.

 

304-X-1-6 General Information

(i) A license issued under this code shall be subject to revocation or suspension if any licensee fails to disclose pertinent information on the initial or renewal application, misleads, or is untruthful during the application process, or has applied for the original license under false pretenses…

 

 

 

 

Virginia:

http://law.lis.virginia.gov/vacodefull/title9.1/chapter1/article4/

§9.1-149 A.2 Unlicensed activity prohibited; penalty A. No person: 2. Licensed or required to be licensed under subsection A of § 9.1-139 shall employ or otherwise utilize, except as provided in this article, as armored car personnel, courier, armed security officer, security canine handler, personal protection specialist, private investigator, alarm respondent, central station dispatcher, electronic security sales representative or electronic security technician, any person not possessing a valid registration.

§ 9.1-150. Monetary penalty. Any person required to be licensed, certified or registered by the Board pursuant to this article who violates any statute or Board regulation who is not criminally prosecuted is subject to the monetary penalty provided in this section. If the Board determines that such person has violated any statute or Board regulation, the Board shall determine the amount of the monetary penalty for the violation, which shall not exceed $2,500 for each violation. The penalty may be sued for and recovered in the name of the Commonwealth. The monetary penalty shall be paid into the state treasury to the credit of the Literary Fund in accordance with § 19.2-353.

 

 

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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com