This article originally appeared in the September 2024 issue of Security Business magazine. Don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter if you share it.
The Electronic Security Association (ESA) is actively monitoring, lobbying and advocating for the security industry on a variety of issues; in fact, ESA’s recently updated policy tracker monitors legislation covering 21 issues at the federal, state, and local levels. This legislation includes hot-topic issues such as school security, tax relief, workforce development, the right to repair, and automatic contract renewal limitations.
There are quite a few issues that security business executives should be informed of and involved in, and ESA will continue to serve as a watchdog for the industry. The association is working to support good legislation and fight back against harmful bills – because when it comes to policymaking, if you aren’t at the table, you could be on the menu. Here’s an overview of the hottest issues currently on the table:
School Security
After the school shooting tragedies in Uvalde, Texas, and Nashville, Ten., we saw a spike in legislation introduced to address school security.
ESA tracked 13 federal bills that aimed to increase funding for school security in a variety of ways, but mostly by utilizing funds that were allocated to schools during the COVID-19 pandemic.
Originally, that funding had strict rules in place for what it could be used for. Many of the federal proposals sought to loosen those rules so schools could utilize those funds for cameras, access control, and alarm systems.
While most of the media focused on proposals that would allow teachers to arm themselves or to hire additional counselors, ESA was supporting legislation that would allow industry members to do what they do best – put their tools and skills to use in protecting students and teachers.
In 2024, ESA launched a campaign in support of HR 7357, the Securing Our Schools Act of 2024. Unfortunately, the appetite in Congress for supporting school security funding seems limited; in fact, some leaders believe that increasing security systems in schools make students feel less safe. On the other side of the aisle, you have budget hawks who seem more interested in clawing back the COVID-19 funding that was originally allocated.
This will remain a major issue going into 2025.
Business Tax Relief
The Tax Relief for American Families and Workers Act of 2024 (HR 7024) also has the support of ESA. This bill would direct Congress to restore and extend three essential pro-growth business tax policies: The deduction for domestic research and development expenses; 100% bonus depreciation; and a cap on deducting business interest expenses that leads to earnings before interest, taxes, depreciation, and amortization (EBITDA).
These provisions are essential to U.S. security firms – including startups, which are leading the way in technical innovation – as well as helping businesses of all sizes make investments in facilities and equipment that improve safety and security for employees and patrons.
This bill looked to have significant momentum as it was introduced in mid-January 2024 and passed the House two weeks later 357-70. It has strong bipartisan backing and there was hope it could pass before Tax Day, April 15. However, it stalled in the Senate and its prospects appear up in the air, as neither side seems interested in letting the other claim a “win” before election day.
Workforce Development
The industry’s top concern for the near future is that there are not enough technicians entering the field. Many integrators are struggling to add staff to take on an increasing number of projects.
One proposed solution to this is to lower the barrier of entry. That is why ESA is promoting a campaign to support HR 1477/ S. 722, The Freedom to Invest in Tomorrow’s Workforce Act –bipartisan legislation that would allow families, students, and workers to use 529 education savings plan funds on recognized skills training and credentials such as occupational licenses and professional certifications. It would provide valuable tax-advantaged resources to those who want to pursue a career in the security industry.
There are now 147 co-sponsors of the bill in the House, which is a 75% increase since last November. There are also 24 co-sponsors in the Senate, an increase of 118%. While that is a significant spike in support, the bill faces a similar challenge as the tax relief bill. The murmurs on Capitol Hill are that if the bill does not pass this year it is expected to be a high priority in 2025.
Right to Repair
While Congress has experienced a great deal of gridlock over the last two years, much of the focus has been on the states, especially on the right to repair.
ESA has been following 77 of these bills across the country, and 21 campaigns were launched challenging right-to-repair legislation – urging lawmakers to accept industry exemptions to protect security and life safety systems.
Many of the proposals would have forced manufacturers to allow third parties access to product manuals, repair equipment, and lockout codes for security and life safety devices – potentially giving criminals and other bad actors a way to defeat security measures.
Victories with exemptions were scored in New York, Minnesota, California, and Colorado. Other victories were found in states where they stopped the bill completely; however, Oregon passed the right to repair without an industry exemption, despite industry concerns.
ESA members and industry allies are hard at work preparing for the 2025 right-to-repair fights and hope Oregon will reconsider its current position on the issue.
The Negative Option Rule
A fight against automatic contract renewal limitations – also known as the Negative Option rule – is taking place at the federal and state levels.
Recurring monthly revenue is critical to the success of integrators; however, some have sought to make it more difficult to automatically renew contracts by requiring notifications be sent out every time the contract is about to be renewed.
Our industry is not a bad actor, and we do not hide our systems from consumers. Unlike a jelly of the month club or a gym membership, our systems are interacted with daily. Consumers walk out of their homes and hear a chime. They rely on that system to remain on when they are away from home and work. They want it to remain on when they are sleeping.
ESA and industry allies submitted comments to the FTC, which recently weighed in on the issue. While we were disappointed with the final FTC vote, there is hope with a recent decision from the Supreme Court on the Chevron doctrine.
Lawsuits are being prepared to challenge the FTC’s decision on the issue and ESA hopes it can help protect automatic renewal contracts for its members.
