KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comments on contract objections / on CA home improvement contractors March 9, 2017
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Today's webinar is on licensing - March 9, 2017  12 noon EST
Title: All You Need To Know About Alarm Licensing and Contracts for DIY 
What will be covered: General discussion about licensing in the alarm industry for DYI. Different types of licenses, where you need them and how you get them. How and when to use License Holders or Qualifiers for your business and how to become a license holder for a company. Risks involved in not being licensed. Contract you will need for nationwide DIY monitoring agreements.
Who should attend: Alarm company owners, general managers, compliance managers and license holders.
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/2585168820901654273
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comment on contract objections from March 3, 2017 article
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Ken,
    In response to you article of March 3rd 2017 article, "more objections to contract provisions" -
    There is only one thing BETTER than a Ken Kirschenbaum alarm contract, and that is an "negotiated and altered" Ken Kirschenbaum contract such as asked for in this example where all of the standard provisions survived.
    Reason: should an action be commenced at this location, for whatever reason, the alarm company attorney can move for a direct decision to enforce the terms of the agreement because it is evidenced that not only did the subscriber read the agreement but had the wherewithal to add language to its own benefit. 
    This is a very narrow example and doubtful that I will ever see such a request to include it again in this lifetime, but as a more frequent example, I routinely accept contracts that the sub wants a 30 day right of cancellation as long as there was no adverse price consideration at the time of sale. Another common request is that all unused monitoring fees be refunded if there is a breach by the alarm company or the central station, again fine.
    Your readers should understand what is in their contracts, what can be altered and what can't. However if any of them get a request and are not sure what to do, they should call you or their insurance carrier or broker who understands the alarm industry. If they don't understand the industry, go The Alarm Exchangeinsurance category, and see Security America (SARRG) for a quote.
Bart A. Didden, Executive Claims Manager
Security America Risk Retention Group - SARRG
Security America Risk Purchasing Group LLC - SARPG
877-872-1266
bdidden@securityamericarrg.com 
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Response
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    Changes to the contract should be made or at least approved by an attorney.  Relying on a broker or someone at an insurance company will be risky.  Changes to my contracts should be approved by me.  Once you've done a few you may be able to identify changes that you can approve on your own.  Keep in mind that taking provisions out or adding provisions often depends on what provisions are not modified.  If the job is worth saving then it should be worth the investment to bring me in to the negotiations.  Some clients have actually been successful getting the subscriber to pay for my time; reimburing our client.
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comment on CA home improvement contractors from March 3, 2017 article
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Ken,
    I’m responding to today’s newsletter (3-3-17). Specifically the section entitled “do you need to be bonded in CA to sell alarms”.
    I couldn’t tell you where in the California code it states the following, but it’s in there somewhere.     That if you perform work over a certain dollar amount, I think it’s over $500, then you must hold a California Contractors License. All companies who hold a contractor’s license are required to have a bond. Additionally the bonding company must report that the bond is in active standing with the CSLB. I believe the bond threshold is very low. Something like $7,500.
    California is pretty serious about companies actively holding the contractor’s license. So much so that they passed a new law stating that if companies don’t hold a contractor’s license then the customer does not have to pay the company regardless of the contract. (Source: http://www.cslb.ca.gov/Media_Room/Industry_Bulletins/2016/December_30.aspx)  
    This has always been a hot topic in California on which classifications that a company that performs security work must obtain. I believe it that alarm services require C-7 and access control requires C-28.
    In addition to obtaining a contractor’s license companies also need to have a permit issued by California Bureau of Investigative Services. BSIS has permits for Alarm Companies, Locksmith Companies, and their employees.
    …at least that has always been my understanding.
Sincerely,
Ty Mullen, Sr. Security Specialist
COR Security, Inc
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Response
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    My understanding is that you do not need a "contractor" license if you have the alarm license.  The bonding requirement is required for the contractor license, but not the alarm license.
    Regarding alarm work, if fire components in the alarm system exceed $500 in value then the licensed alarm company has to also have a Contractor's license and then comply with the Contractor license laws.
    Alarm companies do need to be careful because just because you're doing alarm work doesn't mean you are permitted to do other "contracting" work for which you would need a Contractor's license.
    The Standard Form Agreements we provide to the alarm industry are for alarm work and do not include the contract requirements for home improvement contractors.
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WEBINARS:  Sign up for any or all of the webinars that interest you.

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FREE Webinar Series "All You Need To Know About" alarm industry issues. 
Register for one or all.  Each presentation scheduled for half hour to hour.  Not recorded.

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Title: All You Need To Know About Alarm Licensing and Contracts for DIY 
When: March 9, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about licensing in the alarm industry for DYI. Different types of licenses, where you need them and how you get them. How and when to use License Holders or Qualifiers for your business and how to become a license holder for a company. Risks involved in not being licensed. Contract you will need for nationwide DIY monitoring agreements.
Who should attend: Alarm company owners, general managers, compliance managers and license holders.
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/2585168820901654273
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TitleAll You Need To Know About Alarm dealer program contracts - getting in and getting out
When: March 28,  2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about honeypots/trappings of dealer program contracts and how difficult they are to get out of. 
Who should attend: Alarm company owners.
Presented by: James Babbitt, Esq. General Counsel, RMR Capital Group [jbabbitt@rmr-capital.com ; 952.467.8610]
Register here: https://attendee.gotowebinar.com/register/7359323076355955715
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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
516 747 6700
www.KirschenbaumEsq.com
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