Georgia city to shift false alarm fines to security dealers

The headline from the local newspaper says it all: “Sandy Springs targets security companies to reduce false alarms.”

Sandy Springs, a suburb of Atlanta, recently voted to fine alarm companies instead of homeowners for false alarms. The vote passed despite a lively debate between council members and alarm company representatives. The new false alarm law took effect Sept. 1, and the fine system went into place on Oct. 1.

The new alarm ordinance law requires the company that installs and services an alarm to register it, and makes the company responsible for false alarm fines. The fines escalate quickly: $25 for a first offense; $250 for the second and third; and $500 for all subsequent offenses.

The alarm industry is challenging the action by retaining legal counsel to argue that the ordinance is illegal. “The entire industry must rally around this,” says Jay Hauhn, CEO and Executive Director of The Monitoring Association (TMA). “If this municipality is able to implement this, others will quickly follow.

“This impacts monitoring companies everywhere, not just in Sandy Springs, not just in Georgia, not just for the Southeast. The potential repercussions will be nationwide,” Hauhn adds.

The Security Industry Alarm Coalition (SIAC), along with the Georgia Electronic and Life Safety and Systems Association (GELSSA), is taking the lead, hoping to draw a line in the sand when it comes to the policy of municipalities fining alarm companies for false alarms. “We have retained legal counsel to interface with the Sandy Springs’ city attorney,” says Stan Martin, SIAC Executive Director. “Our past successful work in this area suggests that city officials are not aware that this type of legislation poses a number of serious legal issues for the city.” 

Because each state operates under different laws, it is necessary to retain legal counsel each time a city proposes fining alarm companies. In the past, industry attorneys have successfully argued that proposed ordinances and laws violate substantive and procedural due process, as well as equal protection. They have also fought the proposals on the grounds that it is an improper tax on alarm companies, it it is an invalid exercise of municipal police power.   

“In order to make headway with a city attorney, or the courts, an attorney must first research state law and the state constitution,” Martin says. “The attorney can also raise sustentative issues regarding violations of the U.S. Constitution.”

“What makes these ordinances such a threat,” adds Hauhn, “is that they can create a huge financial and logistical burden for companies without the legal protections that are afforded those accused of violating a city ordinance.”

In past cases, industry attorneys have argued that these laws violate due process, which is afforded by the U.S. and most state constitutions. Due process is violated by making companies responsible for someone else’s actions which it has little or no control over, and fining them with no way to determine whether there was in fact a false alarm.

Such an ordinance imposes a penalty exclusively on the basis of government’s unilateral determination of a false alarm, and affords the alarm company no meaningful opportunity to be heard. This is a fatal due process obstacle in the ordinance.

“A significant cause of false alarm activity is caused by end-users not operating their system properly,” Hauhn says. “It is proven that fining end-users for false alarms has a direct and measurable positive impact on false alarm reduction. It is a simple and effective concept – personal financial responsibility for misuse modifies personal action.

“Legal challenges cost money and require continued strong industry financial support,” he added. “We are kidding ourselves if we believe such laws are going to be isolated incidents or a minor problem. Investment to stop this type of legislation will have a tremendous ROI vs. the cost of fighting these battles nationwide for years.”

SIAC and TMA are requesting the alarm industry’s help in fighting this law. Visit http://siacinc.org/donate.aspx to make a donation. Click to review the Ordinance and the Resolution establishing fines for violations.