*****************************************************************************

*****************************
GETTING NEW CONTRACTS SIGNED
*****************************
Ken;
    I update our agreements every couple of years as you strongly suggest, but it always makes me wonder about the customers who signed agreements in the previous years.  Are there provisions in the contract that allow us to update the agreement such as the banks or credit card companies consistently do?  Will recent laws, regulations or decisions that the newest most updated contracts address, pose any threat to us from the older customers?  Short of dispatching our service techs with new paperwork, what guidance can you offer?
Regards;
A. J. DeMarzo, President
DFW ALARM
******************************
ANSWER
******************************
    Interestingly enough, the contracts I prepared over 30 years ago would still provide contractual protection for 95% of the claims we see against alarm companies.  Of course there have been substantial changes in the terminology, including the "protective" provisions, so it makes sense to update the contracts.  Contracts need to keep pace with technology and, perhaps more importantly, the innovative legal theories lawyers come up with and judges embrace.  The infamous case against Monitronics and the new one against ADT caused changes in the contracts that because of how the complaints were framed and the judge's decision.  
    I am not comfortable with a provision in the alarm contract that would provide that "alarm company can modify the terms of this agreement and subscriber agrees to such changes ..."   That might work for something like response time or how you're going to handle particular signals, or how often you can invoice, but I would not be comfortable if the change was to the exculpatory or limitation of liability provisions further disclaiming liability.  
    I've suggested that an effort be made to re-sign a subscriber on a new contract rather than rely on the automatic renewal provision, especially if the initial term is 3 or more years.  Getting new contracts is going to require some ingenuity on your part.  You may offer to do an on site inspection or survey of the alarm system, offer a free smoke or CO detector, offer to repair foil on one window for free, etc.  You should be able to upgrade that system, get more RMR and get a new term contract.  That's the plan.
    We now have so many contract forms on our Order Page a few of you are getting confused.  The All in One forms are the latest forms and those are the forms you should be using.  If your forms were purchased in 2012 or earlier they need to be updated.  If your forms are from 2013 there have been changes in 2015 that merit updating, but it's not essential.  We've left the older individual forms, such as sales, monitoring and service, on the list and they are updated, but it's the All in One forms you should be using.  I have just added a Standard Guard Response and Patrol Agreement.  It covers Patrol, Runner and alarm Guard Response and it's intended for high end residential subscribers.  The list of services in the Rider covers services that are more suitable for housekeeper, driver or handyman.  Some alarm companies in high end areas do provide these services as part of their security services.
    Another new contract is the GPS Tracking Agreement.  We have had this form for a while but it wasn't listed as a Standard Form.  This form is for signing up subscriber's in your local territory, not nationwide sales.  For nationwide sales you'll need to get our nationwide form by calling our Contract Administrator Eileen Wagda at 516 747 6700 x 312.   
******************************** 
ARKANSAS
********************************
Ken
    any new on the state of Arkansas doing away with their alarm board?
JM
*******************************
RESPONSE
*******************************
    On September 1, 2015, the Arkansas Board of Private Investigators and Private Security Agencies wil be abolished and all of it's duties, responsiblities, functions, personnel and funds will be transferred to the Arkansas State Police.  This means that come September, the Arkansas State Police will be in charge of regulating and enforcing the state law pertaining to the licensure and registration of alarm companies.  The law itself, as well as the licensing requirements contained therein, will remain intact for the most part. Even though the law has been amended, the same personnel from the Board of Private Investigators will still be in charge of regulating the licensure process, with the only difference being they are operating under the State Police rather than the Board.  

    For those of you who provide or plan to provide fire alarm installation or monitoring services in Arkansas, do not confuse the change in the law with a change in how the law is enforced.  While it may be a relief that the law itself will remain intact for the most part, the same cannot be said for how the law is enforced.  Once the law takes effect, the State Police is authorized to establish or alter requirements in the law pertaining to licensure, business and employee registration, license renewal process and application or renewal fees. We will not know until September whether the State Police will enforce the law any differently than the Board had.     

    It is important to remember that licensure requirements are different in every state.  For instance, just because you are in full compliance with the licensure requirements imposed by the law in State A, means nothing when it comes to whether you are compliant with the licensure requirements of State B.  This is not something you want to be careless with, since states loves nothing more than to raise money by imposing fine after fine for volations of licensure and registration requirements.  Remember, laws are always changing and and it can be hard to keep up with all the laws of the states in which you provide alarm services.

   Our firm's Licensing Department has consulted and has provided legal assistance to alarm companies throughout the country.  Whether you plan on expanding your alarm business to other states, need assstance in obtaining a license, appealing the suspension or termination of your license, properly registering your employees as required by state law, or you just want to make sure you are in full compliance with the licensing requirements of the state in which you operate, contact Jesse Kirschenbaum, Esq. of our Licensing Department, at (516) 747-6700 Ext. 307 or by email at Jesse@Kirschenbaumesq.com.


*******************************
HIRING FELONS
*******************************

Ken
    With regard to any manager / company in the security industry hiring felons....Not all the nuts are in trees.
JW
********************************