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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6520 June 1, 1988 ALARM SYSTEMS: Licensing of persons monitoring alarm system Licensing of persons selling alarm systems WORDS AND PHRASES: 'Monitor' A person who monitors burglar alarm systems and takes action to call the police or other persons by prearrangement must be licensed as an alarm system contractor or agent under the Private Security Guard Act of 1968. A person who sells burglar alarm systems is not required to be licensed as an alarm system contractor under the Private Security Guard Act of 1968. Honorable Michael O'Brien State Senator The Capitol Lansing, Michigan 48909 You have requested my opinion on two questions regarding the sale and monitoring of burglar alarm systems. Your first question may be stated as follows: Does the Private Security Guard Act of 1968, MCL 338.1051 et seq; MSA 18.185(1) et seq, require individuals or companies that only monitor burglar alarm systems to be licensed? MCL 338.1052(1); MSA 18.185(2)(1), provides in pertinent part: 'As used in this act: '(a) 'Alarm system' means a detection device or an assembly of equipment and devices arranged to signal the presence of a hazard requiring urgent attention or to which police are expected to respond. . . . '(b) 'Alarm system agent' means a person employed by an alarm system contractor whose duties include the altering, installing, maintaining, moving, repairing, replacing, selling, servicing, responding to, or causing others to respond to an alarm system '(c) 'Alarm system contractor' means a person, firm, company, partnership, or corporation engaged in the installation, maintenance, alteration, or servicing of alarm systems or who responds to an alarm system. 'Alarm system contractor' shall not include a business which only sells or manufactures alarm systems unless the business services alarm systems, installs alarm systems, or monitors or responds to alarm systems at the protected premises.' MCL 338.1053(1); MSA 18.185(3)(1), provides in pertinent part: 'Unless licensed pursuant to this act, a person, firm, company, partnership, or corporation shall not engage in the business of alarm system contractor, alarm system agent, . . . or any agency furnishing those services, notwithstanding the name or title used in describing the agency and notwithstanding that other functions and services may also be performed for fee, hire, or reward.' In the facts presented, the person or company monitoring the alarm systems takes some action when the alarm is triggered, e.g., by calling specific persons by prearrangement, or by calling police or fire departments. Such action constitutes 'responding to, or causing others to respond to an alarm system,' and brings the person or company within the purview of MCL 338.1053; MSA 18.185(3). It is my opinion, therefore, that an individual or company that monitors and responds to burglar alarm systems must be licensed as an alarm system contractor or agent under the Private Security Guard Act of 1968. Your second question may be stated as follows: Does the Private Security Guard Act of 1968, supra, require a person who only sells burglar alarm systems, which are then installed by unaffiliated alarm system contractors, to be licensed? MCL 338.1052(1)(c); MSA 18.185(2)(1)(c), specifically excludes from the definition of an alarm system contractor a business which only sells alarm systems. Assuming that your question concerns a person who is engaged only in selling such systems and who is not involved in installing nor in arranging for the installation of the systems, the person would fall within the above exception to the definition of an alarm system contractor. It is my opinion, therefore, that a person who only sells burglar alarm systems is not required to be licensed as an alarm system contractor under the Private Security Guard Act of 1968. Frank J. Kelley Attorney General
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