SimpliSafe Violating California, Florida, and Texas Licensing Laws

We asked the Florida Board about how they police compliance. We got a response this morning:

Complaints against the regulated professionals or professions may be filed with Complaints Unit in Tallahassee or any Regional Office. A complaint may be filed online, or by a complaint form and will be forwarded to one of our Regional offices for Investigation. 

It's up to you guys in the field. Local alarm integrators, as I said in the story, are usually very concerned with being in compliance with local and state codes and laws. If you see something that you think is a violation, report it.

Comcast is getting away with the installation of systems in MA, and I am sure Simplisafe is too, installing companies and all technicians (excluding Apprentices) have to be licensed and have a Public Safety License (company and ALL employees) to install systems but not Comcast or Simplisafe are required!

The chat above with Dave stating he is a "security consultant" is possibly crossing the line.  Will SimpliSafe come to my home or business and install or service my system?  When I sign-up for monitoring, who bills me, SimpliSafe or COPS?  I'm not defending SimpliSafe but how is this different from a local security distributor selling a kitted security system or video NVR/camera package?

Well then this isn't limited to Simpli Safe is it? What about Best Buy? They are selling the Ring security system in the store. I am sure there is a long list of retailers selling a DIY solution in their stores.

Well, I guess we can agree to disagree.

Some of the codes in the OP are pretty clear. They say SELL or install, etc. There is no exclusion or clause that says a company can resell a product based on the manufacturer being licensed. The whole point of being licensed is to ensure the seller has the knowledge to provide a sound solution.

I would think anyone selling Ring security products would need a license according to the codes listed above unless there is a specific exclusion somewhere.

As far as ADI/Anixter, they probably should have a license in certain states. There is nothing in the codes listed in THE OP that exclude wholesale distributors.

I know the GA Supreme Court has ruled that if the state legislators, wanted to include/exclude something in the law, they knew how to make those exclusions and that the law should be interpreted as written. I have to assume other states have the same opinion.

Here in GA I believe it is legal as the code here says low voltage contracting, and I do not think selling a box is contracting.

So the state is going to go after every seller of DIY alarm systems? Radio shack, Fry's, etc?

When I opened the Las Vegas branch of ADI, the City told me that we would have to submit to the same licensing as an alarm company. ADI balked at this, of course, as we don't sell or install on premise. The City didn't care. When we pointed out that Radio Shack sold actual Pro (Ademco) panels, the City told us, thinking we were some small business, that they weren't interested in pursuing Radio Shack, and that we still needed this license. ADI corporate took offense to this, and the lawyers started sending letters the way they do, and once the City realized that ADI (Pittway Corp) wasn't a small-time business that would be bullied, the licensing requirement magically went away. As far as California goes, the law clearly states "on premise". BSIS might interpret that as meaning any sales whatsoever, but they're going to run into issues going after large big-box resellers.

Right from today's ad - 

Regarding the issue of licensing for "Security Consultants", I don't know about Tennessee, but Texas has an exception for licensed engineers.  A licensed PE can act as a "Private Security Consulting Firm" and design security systems without being specifically licensed as such.

SUBCHAPTER N. EXCEPTIONS

• 1702.324. CERTAIN OCCUPATIONS. 

(b)  This chapter does not apply to:                                          

(6)  a licensed engineer practicing engineering or

directly supervising engineering practice under Chapter 1001,

including forensic analysis, burglar alarm system engineering, and

necessary data collection;

Note that this only covers a licensed engineer "practicing engineering".  I would interpret that to mean that they could recommend and/or specify products, design systems, etc. but would not extend to sales/installation of equipment or monitoring of those systems.

I'd be really interested in knowing which other states require licensing for security consultants.  Until I read this and found out about Tennessee, the only one I had found was Texas.

Update:

I question whether the Tennessee code that is quoted really requires licensing for someone acting exclusively as a consultant.  It reads:

No person shall advise anyone as to the need, quantity or quality of alarm systems and sell the systems unless certified, licensed or registered under this part. (emphasis added)

I'm not a lawyer but in my limited experience, this being a legal document, that word "and" means something very specific.  I would interpret that to mean that one needs to be certified, licenses or registered only if they advise and sell.  If licensing was required just for consulting, I would think it would read:

No person shall advise anyone as to the need, quantity or quality of alarm systems or sell the systems unless certified, licensed or registered under this part.

Any lawyers out there that could weigh in?

"Dave" is the generic name Simplisafe uses to respond to customers' emails and to send out marketing emails.  There might be a person named "Dave" there but that would be a coincidence.

This news makes me wonder: Since these systems are self-installed by the user, does the homeowner have to get a license as an "installer"?  If so, does that make me an outlaw?

John,

is there any chance that Simplisafe will actually have to pay fines for past sales or be barred from selling until a license is granted? In States where failure to have a license is a crime, does past commission of a crime block them from obtaining a license for a time period? Most small companies would be sweating these questions.

The question I have is about the consumer installing the system in his/her home. Per the law, they are an "Installer" and must be licensed to install security systems otherwise they should be fined too. 

Has any state addressed this?

You are absolutely correct. These exemptions are referred to as "owner/builder" and extend to all aspects of construction. 

After reading these comments it seems that there is some confusion by some over the types of licenses and when they apply. Typically states separate into three categories: monitoring, installation, and sales. Most states care about installation only and often it is for commercial/public buildings (not homes). Many care about monitoring. Only a few care about selling. In the states like those mentioned here in the article, even if you do not install or monitor the system, you still must be licensed. If you are only selling, the requirements are usually less demanding than the installation requirements. The DIY piece makes it more complicated but since they are offering professional services (monitoring, design, consulting), it certainly seems to cross the line from simple DIY retail. 

Also, nobody mentioned it but last I checked Louisiana was even harder; have to have a brick and motor office with licensed person living in state (or within normal commuting distance).