Recently, the House Subcommittee on Commerce, Trade and Consumer Protection passed H.R. 1796, the Residential Carbon Monoxide Poisoning Prevention Act. Working in coordination with other groups in the industry such as SIA, NEMA and the Fire Marshalls, we were able to get this bill passed out of subcommittee and into the full House Energy and Commerce committee.

The bill directs the federal Consumer Product Safety Commission to publish a regulation “safety standard” (ANSI/UL 2034-2005) that not only takes effect within 180 days after it is published but makes it “unlawful for any manufacturer or distributor to import or distribute” any carbon monoxide detector unless it complies with the standard, including a labeling requirement.

The legislation does have implications for ESA members, especially since many state legislatures have or will consider mandates for installing carbon monoxide devices in residences. The bill authorizes state grants by the Consumer Product Safety Commission. The eligibility for a state to receive grant funds would be the presence of a state regulation or law requiring installation in accordance with NFPA 720 of approved carbon monoxide alarms in all commercial residential dwelling units and all new dwelling unit construction. Funds from the grant would be used to train fire code enforcement officials on the installation of these approved devices, training materials, instructors and educating the public. Subcommittee Chairman Bobby Rush (D-IL) passed a “Managers Amendment” that included good changes to expand the authorized use of grant funds and including ANSI/UL 2075.

The Senate counterpart, S. 1216, is still pending in the Senate Commerce Committee. We will continue to network with other members of the industry to seek passage of this bill and will keep our members informed of its progress.

ESA recently joined more than 580 organizations in the Coalition for a Democratic Workplace to oppose a plan by the National Labor Relations Board requiring employees to cast ballots on union organizing from either home computers or other electronic devices outside of the workplace. ESA is an active member of this coalition and has opposed legislation advocating a “card check” process, known as the Employee Free Choice Act, which severely undermines employee privacy protections for a private ballot election and has been a hallmark of federal labor law.

Attached is a June 16^th letter from the Coalition to the chairman and members of the National Labor Relations Board. Copies of the letter were sent to the entire U.S. House and Senate. ESA is continuing its opposition in the Congress and in the Administration to Card Check plans by unions.

The Federal Trade Commission has announced that it will delay enforcement of the “Red Flags” Rule through December 31, 2010 to allow Congress the opportunity to consider legislation that would affect the scope of entities covered by the rule.

ESA has been working with members of Congress to have these rules delayed to allow adequate time for our members to comply. Today’s announcement marks the third time the rule has been delayed. The FTC delayed implementation of the rules in August 2009 as a result of a law suit by the American Bar Association, and once again in October 2009.

A copy of FTC’s statement is provided below.

FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule

At the request of several members of Congress, the Federal Trade Commission is further delaying enforcement of the “Red Flags” Rule through December 31, 2010, while Congress considers legislation that would affect the scope of entities covered by the Rule. Today’s announcement and the release of an Enforcement Policy Statement do not affect other federal agencies’ enforcement of the original November 1, 2008 deadline for institutions subject to their oversight to be in compliance.

“Congress needs to fix the unintended consequences of the legislation establishing the Red Flags Rule – and to fix this problem quickly. We appreciate the efforts of Congressmen Barney Frank and John Adler for getting a clarifying measure passed in the House, and hope action in the Senate will be swift,” FTC Chairman Jon Leibowitz said. “As an agency we’re charged with enforcing the law, and endless extensions delay enforcement.”

The Rule was developed under the Fair and Accurate Credit Transactions Act, in which Congress directed the FTC and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. The resulting Red Flags Rule requires all such entities that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.

The Rule became effective on January 1, 2008, with full compliance for all covered entities originally required by November 1, 2008. The Commission has issued several Enforcement Policies delaying enforcement of the Rule. Most recently, the Commission announced in October 2009 that at the request of certain Members of Congress, it was delaying enforcement of the Rule until June 1, 2010, to allow Congress time to finalize legislation that would limit the scope of business covered by the Rule. Since then, the Commission has received another request from members of Congress for another delay in enforcement of the Rule beyond June 1, 2010.

The Commission urges Congress to act quickly to pass legislation that will resolve any questions as to which entities are covered by the Rule and obviate the need for further enforcement delays. If Congress passes legislation limiting the scope of the Red Flags Rule with an effective date earlier than December 31, 2010, the Commission will begin enforcement as of that effective date.

In the interim, FTC staff has continued to provide guidance, both through materials posted on www.ftc.gov/redflagsrule, and in speeches and participation in seminars, conferences and other training events to numerous groups. The FTC also published a compliance guide for business, and created a template that enables low risk entities to create an identity theft program with an easy-to-use online form (www.ftc.gov/bcp/edu/microsites/redflagsrule/get-started.shtm). The FTC staff also has published numerous general and industry-specific articles, released a video explaining the rule, and continues to respond to inquiries from the public. To assist further with compliance, FTC staff has worked with a number of trade associations that have chosen to develop model policies or specialized guidance for their members.

As was the case previously, this enforcement delay is limited to the Red Flags Rule and does not extend to the rule regarding address discrepancies applicable to users of consumer reports (16 C.F.R.§641), or to the rule regarding changes of address applicable to card issuers (16 C.F.R.§681.2).

For questions regarding this Enforcement Policy, please contact Naomi Lefkovitz or Pavneet Singh, Bureau of Consumer Protection, 202-326-2252.

On Wednesday, May 19, security professionals in Oklahoma gained new insight into the legislative process during a legislative dinner hosted by ESA and sponsored by UTC Fire and Security.

Jana Davis of Access the World LLP, and Charles Hudacek of D & D Locksmith.

Oklahoma State Senator Harry Coates (R-Dist. 28) gave a brief presentation to the group addressing state legislation impacting the electronic life safety, security, and integrated systems industry. Coates is the author of several bills in the state legislation on electrical contracting including SB 577 which would require an individual to hold a license before doing electrical work on his or her own property or residence.

After the presentation, many attendees took the opportunity to network with one another.

Mark your calendar and start making plans to attend these exciting ESA events in 2010. ESA Day on Capitol Hill April 27 – 28 Washington, D.C.

Those who have registered (registration closed on April 9) are looking forward to Day on Capitol Hill – the premiere lobbying event of the industry. Day on Capitol Hill offers ESA members an opportunity to sit down with their elected officials and lobby for programs and legislation to benefit the electronic security industry and their businesses.

Participants attend this event at no charge thanks to support from our sponsors which this year include GE Security, Honeywell, Altronix, Diebold, and Security America RRG.

FREE Oklahoma State Legislative Dinner

Wednesday, May 19, 2010

Oklahoma residents are invited to attend a FREE Oklahoma State Legislative Dinner – compliments of GE Security. .. . Mickey Mantle’s Steakhouse

#7 Mickey Mantle Drive

Oklahoma City, OK 73104

(405) 272-0777

www.mickeymantlesteakhouse.com

Schedule:  6:00 – Cash Bar, 7:00 – Hosted Dinner, 7:30 – Senator Coates

The guest speaker will be Senator Harry Coates (R-Dist. 28). During his presentation, Senator Coates will address state legislation impacting the electronic life safety, security, and integrated systems industry. Senator Coates is the author of several bills in the state legislature on electrical contracting. Matthew Schue, Director of the Oklahoma State Department of Health, which regulates alarm licensing in Oklahoma, is also an invited guest and will be on hand to answer any questions. The Oklahoma state legislature will be in session until May 28, 2010.   Attending this dinner would be an excellent opportunity to find out how the state legislature impacts your business and how important it is to be INVOLVED. Register now Looking forward: 2010 ESA Summer Conference June 14 – 18 Pittsburgh, PA The ESA Summer Conference is where association leaders help shape the future of ESA and work to improve the business environment for the security industry. You can make a difference – join us for the 2010 ESA Summer Conference. Learn more about Pittsburgh, click here.

Click here to see the preliminary Summer Conference schedule.

View the exciting Welcome to Pittsburgh 2010 video

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If you are a resident of New York or have employees who live in New York, the New York Burglar & Fire Alarm Association could use your help to fight potentially devastating legislation.

The New York Burglar & Fire Alarm Association (NYBFAA), along with the Electronic Security Association (ESA), is urging opposition to Senate bill 2074, which recently passed the New York Senate Judiciary Committee. The bill would declare ‘void and unenforceable’ certain contract terms indemnifying or exempting manufacturers, sellers and/or monitors of burglary protection systems from liability for negligence.

“The bill would have a devastating effect on insurance, creating a deteriorating situation for security alarm dealers and monitoring companies by causing insurance to become scarce or unavailable. Many small businesses would be forced to close their doors, and those remaining would be forced to charge such a premium for their services that alarm systems would become unaffordable for most homes and businesses,” said Tim Creenan of Amherst Alarm in Amherst, NY, and NYBFAA legislative chairman.

This is not the first time this bill has been brought to the New York Senate Judiciary Committee. NYBFAA fought off an attempt to pass a similar bill last year.

Most concerning to NYBFAA and ESA is that the legislation threatens to make alarm monitoring services unaffordable to the general public, and if passed could have devastating consequences not only in New York, but throughout the country. Additionally, the associations view the new legislation as unnecessary. Currently, a contract which grants an exemption from liability for a willful or grossly negligent act is already void.

“State bills in California and New York have a tendency to be copied by other states in rapid order. If this bill survives the year-long session in New York, it will generate copycat bills in the 2011 state legislative sessions nationwide. This bill is a real threat to the security industry and we need to stop it,” said John Chwat, ESA’s Director of Government Relations.

Please contact your Senator TODAY and urge him or her to oppose Senate Bill 2074 and please encourage your employees who live in New York to do the same. (Locate your Senator)

ESA, through its involvement with the Alarm Industry Communications Committee (AICC), will continue to work with the Federal Communications Commission (FCC) as it begins moving forward on its recently released National Broadband plan.

The FCC unveiled its 300-plus page National Broadband Plan March 16, envisioning a series of rule-making proceedings to expand broadband coverage to every American. The AICC submitted comments to the FCC on the plan in January.

As part of the American Recovery and Reinvestment Act of 2009, Congress directed the FCC to create a national broadband plan that seeks to ensure that all Americans have access to broadband capability. About half of the plan’s recommendations are addressed to the FCC, while the remainder are for Congress, the Executive Branch, and state and local government, working closely with private and nonprofit sectors.

The plan calls for several actions over the next decade, including the transition from a circuit-switched telephone network to an IP-based network. Section 4.5 of the plan suggests the FCC start a proceeding on the transition that asks for comment on a number of questions, including whether the FCC should set a timeline for a transition. The Section concedes that such a transition will take “a number of years.”

Today, approximately one-third of Americans live, work and go to premises where security systems are utilized. Accordingly, many Americans would be impacted if the Public Switched Telephone Network (PSTN) is retired before there is a thorough understanding of how PTSN is relied upon everyday in security and life safety applications.

As the AICC stated in its comments to the FCC, the industry sees great potential in broadband development and IP-based communications in connection with alarm services. Advantages include the ability to transmit more data at faster speeds from a protected premise to the monitoring station.

However, the ability of the alarm industry to rely on broadband and IP-based communications will be hindered if all aspects of the communications path are not reliable. Further, the industry supports a gradual transition to broadband and IP-based communications to ensure compatibility with existing services and equipment.

ESA realizes that its membership is composed of different types and sizes of companies and that transition to broadband can be complicated and resource intensive. A gradual transition will provide smaller companies the opportunity to make the changeover in a more economically feasible manner.

ESA will maintain its active involvement in the AICC, and will continue to monitor the impact of the plan on the alarm industry. As the FCC moves forward with its rule-making proceedings, the association will provide support in areas where industry expertise can be most useful to ensure Americans can receive the same, reliable security services they currently do through the PSTN.

ESA’s government relations team will actively monitor and lobby Congress to ensure that the impact the plan will have on the industry is considered when legislation is drafted. ESA will also work closely with its members and other industry groups to develop a long-term industry perspective of the technology changes impacted by this plan.

Wednesday, May 19, 2010 at Mickey Mantle’s Steakhouse – www.mickeymantlesteakhouse.com

6:00 – Cash Bar, 7:00 – Hosted Dinner, 7:30 – Senator Coates will speak

During his presentation, Senator Coates will address state legislation impacting the
electronic life safety, security, and integrated systems industry. Senator Coates is the
author of several bills in the state legislature on electrical contracting.

Registration will be open soon.  Go to www.ESAweb.org for more information or RSVP to Michelle Whitaker at (888) 447-1689 or michellew@alarm.org by May 14.