Security Sales and Integration Magazine

Michigan’s Licensing Standards Fall With Approval of New Law

By Rodney Bosch | January 15, 2013 | Comments (9) | Post a comment

Despite a spirited lobbying effort by the Burglar and Fire Alarm Association of Michigan (BFAAM) and others, the state’s licensing standards have been upended following the signing into law of two bills that created the Security Alarm Systems Act. 

As I reported in the December issue, Michigan Senate Bill 1291 and SB 1292 had been vehemently opposed by security industry stakeholders, who argued the legislation would remove consumer protection aspects of an existing statute that regulated the electronic security industry and protected consumers from criminal activity within it. 

Joining in opposition to the legislation, which was heavily supported by AT&T, was the Electronic Security Association (ESA), law enforcement and Michigan’s Department of Licensing and Regulation. Petitioning state lawmakers ended when the two bills were signed into law Jan. 2. However, state licensing battles are gearing up to be waged elsewhere across the nation where AT&T and other telecoms are spearheading similar lobbying efforts. In a nutshell, AT&T desires to establish a separate set of licensing requirements for installing IP-enabled security systems. 

“Many safeguards were lost when these bills were signed into law, including effective and comprehensive criminal background checks, competency and qualification requirements, and provisions regarding uniform requirements, company name restrictions and advertising criteria,” John Chwat, ESA’s director of government relations, told me this week. 

Chwat explained while this is not a comprehensive list of revisions to Michigan’s previous law, it does give a brief overview of the areas the new legislation will influence. “We believe that all states should be aware that AT&T intends to move into other states and to be on alert for this new legislation. ESA will continue to work with members and chapters to monitor the progression of this legislation in other states.”

Rodney Bosch | Managing Editor

Review / Comment


AT&T needs to follow the rules, or stay out of the security industry. Comment via SSI's Facebook page.
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Richard Stremlow
January 16, 2013
It is a sad result because the responsible companies worked so hard amend the bill to protect consumers. Comment via SSI's Facebook page.
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Mitch Reitman
January 17, 2013
Apparently some companies are not only too big to fail, they are also so big they must be helped to grow. Good old AT&T. Comment via SSI's LinkedIn page.
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Robert Winslow
January 17, 2013
Rodney, Can you explain the underlying motives behind AT&T's lobbying efforts that according to your article actually remove consumer protection aspects of existing legislation?.. Seems "fishy" to me.
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Mark Borowski
January 17, 2013
Rodney, Can you explain the underlying motives behind AT&T's lobbying efforts that according to your article actually remove consumer protection aspects of existing legislation?.. Seems "fishy" to me.
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Mark Borowski
January 17, 2013
As an owner of a Texas alarm company I cheer on Michigan at least in part. The ridiculous system required to get licensed in Texas and many state wreaks of the ancient midieval apprentice and guild system. Purportedly to protect citizens it is a direct block to new business entry and a shield for old dusty, creaking alarm companies that want to circle the wagons and protect their turf. It stifles innovation. I like a background check. That's about it. Companies that offer poor customer service, are incompetant will wither on the vine. They will not get referrals. They will develope a crappy reputation and go out of business or remain on the margin. Also, caveat emptor, let the buyer beware. Potential customers these days are not babies that need protection. They are smart, savvy shoppers that read reviews and research companies. There are laws on the books already that protect against consumer fraud as well. This move by Michigan will invigorate the alarm industry. In fact i am considering opening up a branch there. The opportunity is astounding! My company will shine among any that are of poor quality and they will go by the wayside. Meanwhile alot of companies that could not have been licensed because the owners don't have any previous "alarm experience" will bring new ideas into pathetically stagnant industry. In fact it was new commers to the industry who really blasted the GSM market wide open with small gsm, z wave, internet services etc. The old war horses had to be dragged to the trough to drink by new innovative companies with no significant alarm industry track record. Go Michigan!!!!!!!!! Man up dudes and grow some. William SELFPROTECTION B17578
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Todd Self
January 17, 2013
Awesome! Now my neigbor can have his own alarm company when he is released from jail! He was hopoing to start that and was building him up a great collection of tools and computing equipment from some of his customers who unwillingly donated it to him! Excellent news!
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Sam Nabkey
January 18, 2013
Wow, sorry to hear this having gone through it here but now it kind of makes me proud to be in Massachusetts right now. Earlier this month a court appeal by the heads of Comcast and Verizon to overturn a Cease and Desist was upheld when the Massachusetts Systems Contractors Association (MSCA) was able to argue that the cable and communications giants weren't using class D licensed installers, weren't providing criminal background checks or pulling the appropriate wiring permits needed to install burglar alarms. I feel it may only be a matter of time before companies like these find or create (for that matter) a loophole but for now it's a huge victory for the little guys! Comment via SSI's LinkedIn page.
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Chris Burns
January 22, 2013
If AT&T or any company cannot follow the laws on the books then they should not be allowed to do the work. It is appearant that money talks in Michigan. AT&T is up to its old tricks again. I still remember when they messed up their last attempt in this arena. They act like laws do not apply to them. There is absolutely no doubt that Michigan law makers just cost their citizens a lot of grief. Comment via SSI's LinkedIn page.
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Kevin Oxner
January 22, 2013

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Author Bios
Scott Goldfine
Scott Goldfine

Scott joined SECURITY SALES & INTEGRATION in October 1998 and has distinguished himself by producing award-winning, exemplary work. A Western Publisher Association's Maggie Award winner, his editorial achievements have included blockbuster articles featuring major industry executives. Since graduating in 1986 with honors from California State University, Northridge with a degree in Radio-Television- Film, his professional endeavors have encompassed magazines, radio, TV, film and more.


Rodney Bosch
Rodney Bosch

Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com.