Issue link: https://read.dmtmag.com/i/31501
10 NEWS www.securitysystemsnews.com APRIL 2011 SECURITY SYSTEMS NEWS Proposed N.J. legislation ‘anti-competitive?’ Some say legislation will be used to unfairly kill out-of-state competition, even from those licensed in N.J. By Daniel Gelinas TRENTON, N.J.—Hot on the heels of the New York licens- ing flap over Article 6-E, there is new proposed legislation in New Jersey that looks to restrict doing business in the state to alarm companies that have business offices here has at least one alarm company owner concerned. “This is being done quickly and quietly,” said Peter Rogers, COO of McLean, Va.-based FrontPoint Security, of A-2394. “What it really comes down to is making life more difficult for any out-of-state competitors. Think of all the companies in New York or Pennsylvania, or Delaware and even farther afield who are following all the rules, but suddenly they can’t operate. It’s anti-competitive and bad for consumers.” FrontPoint is licensed to do business in New Jersey, but maintains no brick-and-mortar presence there. The NJBFAA said it proposed the legislation to protect con- sumers from out-of-state com- panies that could potentially operate “under the radar.” “The benefit from this is that it will substantiate the regulations to make sure that permitting for jobs is being properly done by a business qualifier or a licensed individual and to provide onsite supervi- sion,” NJBFAA presi- dent Rich Trevelise said. “That way if an issue comes up on a proj- ect it can be addressed in a timely fashion by an onsite license holder.” Eric Pritchard, attorney with Kleinbard Bell & Brecker, said A-2394 is not groundbreaking. “States are permitted to regu- late these sorts of activities, and in fact many do regulate security and fire services,” he said. “Many states have requirements like that being considered in New Jersey.” Eric Pritchard The legislation continues to We don’t hold back. We give you our all by giving you your all – CASH UP FRONT for new accounts with NO HOLDBACKS, in addition to WEEKLY FUNDING and a generous multiples program. After all, You captured the business. And we thank-you-very-much. Dealer Development 888-848-8851 Visit us online at www.csgdealer.com FAIR& SQUARE BENEFITS n No Holdbacks n Weekly Funding n Up to 36x RMR n Non-Exclusive n Three-Payment Guarantee n Equipment Discounts n Control of Your Own Brand ASSURANCE n More Than 30 Years of Service n High Account Retention n Two-Way, Cellular, Internet and more n Interactive Services n Financial Stability n High Dealer Satisfaction n Compatible with Most Hardware n Personal Account Representative go through revisions and gain momentum. A recent round of revisions includes what some are calling unfair restrictions. Particularly onerous, according to Rogers, is a recent amendment that removes a clause allowing out-of-state companies to do business if they at least main- tain a power of attorney in New Jersey. What will be the impact of this legislation if it passes? “The question becomes: ‘What’s DEALER PROGRAM™ driving this?’ And from an outsider’s perspective this will be viewed as an anti-competitive effort on the part of those within the state. The impact will certainly be that it lessens competition,” Pritchard said. “Part of what I’ve been told is that what’s driving this is regulating the summer programs. I have to tell you, if I rep- resented a summer model company that was trying to do business in New Jersey, I don’t think it would be that difficult to comply with this law. I think this will lead to office-sharing arrangements—which exist in other states already—where a number of alarm companies get together and rent space or pay a service fee to a service provider to act as the local office. It happens in all industries all the time in all states.” What’s next for A-2394? “We passed the first milestone in mid-February when it made it through the assembly,” Trevelise said. “The next step is for it to go to the Senate.” The NJBFAA said it welcomes all comments from the industry. SSN SCHEDULE A ONE-ON-ONE MEETING AT THE ISC-WEST SHOW IN LAS VEGAS! CALL US NOW TO