The Locksmith Investigator blog wins award

Congratulations on being one of Top Physical Security Blogs. Your blog was a great resource that not only kept your readers up to date, but provided vital information for keeping their homestead safe. Just by blogging, not only have you raised awareness for those interested, but also provided a place to go for answers when looking to ensure the safety of their family.

Thank you to the people at HomeSecuritySystems.net and Bestoftheblogs.org. We appreciate the honor.

Barbara Martin and Carol Leff, Editor

Conclusions and suggestions for locksmiths

The time for locksmiths to become involved, stay informed and unite against any attempt to license them is now. The effort to stay free from licensing will require infinitely less effort than complying with all the licensing rules should another attempt be successful. But if locksmiths can show they are alert, united and working to solve problems within their industry, any future assault to licensing will be lessened.

Here are some suggestions:

1. Continue to strengthen networks - socialize, stay in contact with other locksmiths. Build a database of all the locksmiths in you county or city and get to know each other.

2. Continue to stay vigilant against any assault to your economic freedoms or attempts to enslave you to continual taxes, fees or unnecessary training.

3. If not in an association, join one or start one in your local area.

4. This is a biggie: Do NOT vote for leaders in local associations who are in favor of locksmith legislation. To do anything else is unwise.

5. Educate the public wherever you go about genuine locksmithing, your business and your association. Associations could print cards or fliers for members to hand out. Educating the public that all businesses are already required to display their business tax ID or occupational license (at least it’s true in Florida) and to ask to see it is important. “Locksmiths” who refuse to answer simple identity questions are hiding the fact that they are not locksmiths. They don’t want their victims to know who they are or how to contact them.

6. Educate your representatives during their campaign events or visit them in their district offices. Develop an “elevator speech” whereby you can state your opinion briefly and clearly. Provide them with information they can read later. Find out how local representatives can strengthen anti-fraud laws by requiring all businesses (including locksmiths) to give a written estimate for work over a certain amount of money. Also, emphasize that the state has to take a stronger stand in educating the public.

7. Visit your local news media to educate them about your association and what your members are doing to thwart the scammer issue. Ask for the local association to be listed as a news source for local locksmith stories. Associations should develop a list of items reporters can use to correctly discern whether the person showing up for a lockout job is a scammer or a genuine locksmith and post it on their website. Emphasize that scammers are not locksmiths and ask them to please put quotes around the word “locksmith” when writing about them. At newspapers, speak to the Managing Editors. At television stations ask for the Assignment Desk Manager. Leave information.

8. Work together and find ways to legally stop scammers that are working in your call areas. They are not too hard to find if you need a lock job done.

Here’s what I did recently concerning another industry and it may be something 2 or 3 locksmiths can do together:

Recently, I got tired of the annoying phone calls by a bogus “survey” company trying to set up appointments for an “educational” home energy audit. Energy Conservation Group was the new name they were using this month and as usual, was not listed as a valid company with the State of Florida. The callers wouldn’t give me their address or any other information. I did the only thing I could. I went on the offensive and booked an appointment.

When the representative got to my house, I asked for ID and he gave me an ID from Energy Labs – name, picture, phone number. No address. While my husband distracted him by showing him our hot water heater in the utility room, I rifled through the notebook he left on the coffee table and got the name of the actual company behind the scheme and checked it and Energy Labs online.

Now the only thing I had to do in order to report the company to the consumer protection agency for violating telemarketing laws was to listen to his spiel. Was he really here just to conduct an energy audit and educate me as the telemarketer said or would he put on the hard-sell? For the next few minutes I listened to him talk about the benefits of his product, but challenged him on every point about his company’s credibility or why he was truly there.

“Our company’s been in business 27 years…”

“Really? Energy Labs is not even a valid company in the State of Florida.”

“Oh, well, Energy Labs is just the manufacturer. Solar First has been in business for 27 years.”

“Really? The State says it was first incorporated in 2008.”

He ignored my remarks and continued with his hard sell explaining to me the easy financing and how I would save $90+ a month in energy costs. It will only cost me a payment of $135 a month – but I’d be saving energy!

“Well, if you buy the $13,000 solar hot water heater you get all these tax credits, plus, you get your attic insulated for free – a $1,500 value.”

“Really? I just checked with Lowe’s and it’s only $200 if I do the insulation work myself using their machine. Besides, I thought you were just here to educate me. I didn’t know you would actually try to sell me something. I have to think about all this.”

“Of course, we’re here to educate you,” he said as he handed me two energy solution tip sheets. “We only sell to people who want to be sold.”

The persistent rep continued to try to sell me and finally gave up only after I told him I scheduled the appointment under false pretenses to find out who he really worked for and that I wasn’t buying or financing anything. The only thing I forgot to do as he left was to walk him out to his car and get his tag number.

Locksmith networks in each community could go on the offensive together as well. Call the scammer numbers and schedule a lock job. Ask for ID when they get there. Wait to see if they pull out the only “locksmith” tool they have – a drill. Remember the purpose of the call is to gather information (car tags, photos, etc.) to turn into consumer protection agencies or local law enforcement agencies. Just be sure not to get physical. Local locksmith associations can also post the results of their “stings” on their websites with photos of the perpetrators (check with legal counsel first). I’ll tell you how it works out with the “telemarketing sting” I conducted.

In summary, locksmiths must continue to inform and strengthen their networks, must go on the offensive with scammers, must make contact with their representatives and must stay alert to the next assault on their freedom.

Update: The Department of Agriculture and Consumer Services and local police fraud agencies are investigating this group. The company keeps calling me using various names (Power Saver Association, National Electric Advisors, etc.). I make appointments every time, but they refuse to come out. Apparently, I’m blacklisted. Since they won’t come out to my house but continue calling me, now I explain to the “survey taker” what I’ve found as an investigative journalist. The company is using unethical business practices and they need to find another job. Since if their employer requires them to lie and cheat to get into people’s homes, they will lie to and cheat them. In addition, God will hold them responsible as if they did the wrong deeds themselves.

Summer's over, back to work

Well, it’s been interesting having the summer off instead of just the two weeks I had planned. I really did have some conclusions to that big investigative story I had written, but when I submitted the article to my editor, Carol, it wasn’t pretty.

“Call me right away before you post anything,” was the urgent message she’d left on my voice mail.

I had written conclusions for both ALOA (Associated Locksmiths of America) and for locksmiths in general. Carol felt the ALOA conclusions I wrote could be potentially libelous. Okay, so I guess I really didn’t have to state the obvious – that some of them can be a bunch of stinkers and maybe their members should consider voting them out of both the local and national organizations. Since the investigation was so well-documented, I believe it spoke for itself.

Instead of taking the time then to rewrite the conclusions article, I put it aside and did some ghost writing for my former publisher, David. After all, he did drive in from out-of-state and sit right in my office. Gotta take care of what’s in right front of me. I’d get back to the conclusion article soon enough, I thought.

The summer was busier than I expected and getting back to it just wasn’t that easy. Vacations, helping both sons move – one to Colorado to go to college, the other to another town closer to hubby and I, then the sad, but not unexpected passing of Will Leff, Carol’s husband of 52 years. We all needed some time off especially Carol. She’s in Colorado to visit family, friends and my son, and I promised to behave while she’s gone.

Tomorrow, I’ll post my revised conclusions article.

Accurate answers? Part 3: Neglected facts and mischaracterizations lead to wrong conclusions

Neglected Facts by FWCLA and ALOA:

How locksmiths are trained.

Florida locksmiths are professionally trained. Check out FWCLA’s website. Their website touts “Florida West Coast Locksmith Association is all about education.” They have trainings scheduled every month as do other associations. Strange how they didn’t mention that, but then it looks like only the Associated Locksmiths Of America (ALOA) answered this question.

Locksmiths regularly receive training through local associations and locksmith suppliers who bring in safe, lock, equipment, tool and software manufacturers and vendors to certify locksmiths on their products. Locksmiths train to make their jobs easier, expand their services therefore gaining more business and service their customers better. They have file drawers of certificates and storefronts, warehouses, storage sheds and vans crammed with product and equipment to prove it. New locksmiths learn from long-time locksmiths and supplement their training at locksmith schools either online, distance learning, video or CD classes or attend classes at conventions or seminars. Most locksmiths feel it is not appropriate to be burdened with costly regulations and mandatory and continuing education. At an estimated $50 a credit hour, SB 658 is requiring 16 credit hours or an $800 burden on already professionally-trained locksmiths. Mandatory training of trained locksmiths will not stop the criminal element – only enforcement of current anti-fraud laws will do that.

Locksmiths certifying themselves?

When I interviewed Senate analyst Mandy O’Callaghan she said she had some concerns about whether or not the locksmiths were certifying themselves. She said she asked FWCLA lobbyist Janet Mabry about who would be doing the training and was told it would be the locksmith/employers or a major locksmith employer who would be providing the training.

Okay, so maybe Mabry just didn’t know what was going on in the locksmith industry. It’s possible. Maybe she was confused -- after all this is the lobbyist who every time she was asked at a committee meeting who she represented or every time she introduced herself or signed an appearance card, she couldn’t even get her client’s name right. She always said she was representing “Florida locksmiths” or “the Locksmith Association” instead of the Florida West Coast Locksmith Association. The first time I noticed it, I thought it was just a mistake, but after hearing or seeing the same faux pas on every committee video or tape recording, I began to wonder – was it intentional or is she really confused? Maybe overstating whom they represent is a normal “fib” for a lobbyist – I don’t know.

I explained to O’Callaghan that a large chain like Pop-A-Lock, that had their own training center, may be certifying their employees, but most locksmith businesses are a one- or two-person businesses and they do not certify themselves.

Questions 10 & 11 combined
What is the cost of regulation, including indirect cost to consumers and the method proposed to finance the regulation? (Question 11 addresses the cost to locksmiths and FWCLA and ALOA gave the same answer to both questions.)

Answer: ALOA and FWCLA state that the cost depends upon how many the state feels it can license plus the cost of administering the license. They list $500 (Illinois) every two years to $100 (N.C.) every year. They point out that it is less than $1 a day to maintain a license.

Not completely accurate
FWCLA and ALOA failed to address:
The cost to the professional locksmith would be significant as it includes licensing fees, mandatory and continuing education, as well as the cost to maintain and store records on customers and employees. All these costs would have to be passed on the public.

Question 12

Provide any previous efforts in this state to implement regulation of the profession or occupation?

Answer: FWCLA and ALOA state that Dade County had a locksmith licensing ordinance.

Inaccurate: Dade County has an existing locksmith licensing ordinance and it’s been operating well since 1995. FWCLA and ALOA did provide a link to Dade County’s ordinance in their answer, so it may have been a typo. Dade County’s ordinance does not, however, burden the locksmith with mandatory and continuing education. Miami locksmiths, who pay $600 every two years for a license, verified that the locksmith suppliers in the area invite vendors on a regular basis to provide certified training programs.

Question 13

Provide any other information the committee may consider relevant to the analysis of the proposed legislation?

Answer: FWCLA and ALOA state that “many consumers falsely believe that all locksmiths have had a background check and have some proficiency in their trade. There is no way to evaluate this unless locksmiths show that they have a license. With the advent of ‘Phony locksmiths’ defrauding and overcharging the public all over the country, the public is demanding that something be done.” The legislators are then directed to the ALOA’s website page with the 201 “locksmith” stories.

Inaccuracy #1: FWCLA and ALOA did not cite their documentation that determined what consumers do or don’t believe. Florida consumers can rightly believe that professional locksmiths are proficient because they are professionally trained and they actively acquire skills and training to enhance their service and livelihood. Consumers also are likely to presume that any professional trades person would be proficient in their trade. We assume, for example, that car mechanics are proficient in what they do. Most pay for their own schooling and training. Some of them get certified on particular cars or systems as locksmiths can get trained on specific locks and systems. But car mechanics are not required to be licensed or required to take continuing education classes and neither should locksmiths.

Inaccuracy #2: There is an evaluator. The marketplace is the evaluator. It evaluates car mechanics and professional locksmiths alike. Those who don’t measure up lose clients and eventually go out of business. With the advent of the Internet, consumers can go to government or association sites to assure themselves that they are calling a legitimate locksmith.

Inaccuracy #3: Apparently, the “public demand for something to be done” is not very high as locksmith scams are not even listed as one of the top 83 scams on the State’s consumer protection website administered by State Attorney General Bill McCollum.

McCollum’s office lists only one current “locksmith” investigation on its website and it’s for David Peer’s call center. Peer’s already sitting in a Missouri jail cell as that state’s Attorney General sent the U.S. Marshals after him for fraudulent crimes against Missouri residents and mail fraud.

According to Rachel Slone, media contact for McCollum’s office, there have been 62 “locksmith-related” crimes in Florida in the last 3 years or an average of 21 per year.

Slone said, “We have one active ongoing investigation and several of these complaints relate to this active case.” She said that she could not reveal the name of the person in the active case since the person was unaware of the investigation. When asked if they were locksmiths or those posing as locksmiths, Slone said, “We won’t know until we complete the investigation.” (See link below.)

According to Sonya Perez, the media contact for the Miami-Dade Consumer Services Department, where a locksmith licensing ordinance has been the law since 1995, there were 31 complaints against locksmiths in the last 3 years or an average of 10 per year. Perez, however, could not state how many complaints were against any of Miami-Dade’s 450+ registered locksmiths and how many complaints were against those posing as locksmiths.

According to Judy Pepper, President of the Better Business Bureau of Central Florida, there were five complaints against locksmiths in 2009 in Central Florida with a total of 81 throughout the state. South East Florida counties had the highest number of incidents with 53. Unknown is whether they were locksmith complaints or “locksmith” scammer complaints.

According to Terrance McElroy, spokesman with the State Department of Agriculture & Consumer Services, the department did not have a lot of complaints against locksmiths in 2009. He said it would be difficult to pull out specific data due to the way they input and track their information. Once it becomes a frequent complaint, they categorize it. Locksmith complaints have not been categorized.

“I don’t think we’ve had an excessive number of complaints,” McElroy said.

Totals from these agencies for 2009 for the whole state
    21     Attorney General’s Office
    10     Miami-Dade Consumer Services
    81     Better Business Bureau
    ?     Dept. of Agriculture & Consumer Services
        – too small to categorize
    4     Newspaper articles

How many of all these 116 reported incidents are duplicated to more than one agency is unknown. Let’s assume for arguments sake that 50% are against professional locksmiths – that figure would be less than 60 complaints in the entire state. I personally think these are mostly “locksmith” scammer complaints.

I did begin checking counties on Florida’s west coast when I heard a television reporter state in a news report that there were hundreds of locksmith complaints. The four agencies he listed were the Better Business Bureau, the Dept. of Agriculture & Consumer Services and both Hillsborough and Pinellas counties’ consumer protection agencies.

Pinellas County has the information online and there were 5 complaints all against David Peer. In Hillsborough County, there were 2 complaints (1 against Peer) in 2009. Apparently, the reporter’s figures don’t line up or, under time constraints, he may have relied upon the west coast locksmiths he interviewed to answer truthfully.

Question 14

Name of the person(s) completing this questionnaire and the entity or interested party that he or she represents.

Signed by:
Ken Kupferman, CML, Florida West Coast Locksmith Association
Tim McMullen, ALOA.

Accurate if you don’t count the omissions: Kupferman served as the President of ALOA from 2007 – 2009 and was on the ALOA board for the previous 6 years. Strange he didn’t mention that in the questionnaire or on his appearance cards or in person when he either testified before the committee hearings or showed up to speak.

FWCLA, by the way, was listed as an ALOA Affiliate on ALOA’s website in 2003, but dropped that designation somewhere along the line -- maybe as they began to get more politically involved.

McMullen is the Legislative Manager for ALOA

According to a State of the Association article in the July 2009 Keynotes magazine (page 33), “. . . ALOA played a proactive role in locksmith legislation by providing assistance with the passage of locksmith licensing and related bills in Alabama, California, Maryland and Virginia; monitoring and assisting with the process of introducing locksmith licensing bills in Florida, Georgia, Hawaii, Rhode Island. . . “

From what I could discern ALOA answered all 14 questions and I‘m crediting FWCLA with 7 answers, although it may not be that high and of those, 3 were inaccurate or distorted the facts. At least 6 of ALOA’s answers either neglected to tell the full story or were complete mischaracterizations and some had multiple inaccuracies.

I don’t know what “assisting with the process of introducing locksmith licensing bills in Florida” means to ALOA, but it appears to be more than just assisting especially when both people signing the questionnaire are leaders in ALOA.

Obviously, there is only one interested party in this questionnaire, only one group seeking to regulate Florida locksmiths – ALOA.

Next post (which may be next week):
I’ll be drawing some conclusions on this situation plus sharing how one locksmith almost single-handedly stopped locksmith legislation in his state by educating his fellow locksmiths what that law would actually cost them. Hope to have these two written the beginning of the week. Then I take two weeks off – to continue writing my former publisher’s memoirs. Then I’ll be back at it. Finally, thank you to all those that wrote such kinds words to me about the work I’m doing. I appreciate it.


DOCUMENTATION


Associations – check out the associations’ education (training) pages or notices

Central Florida Locksmith Association www.cflalocksmith.org First Coast Locksmith Association www.fcla.net
Florida West Coast Locksmith Association www.fwcla.org

FWCLA listed on ALOA’s June 2003 website as an affiliate:
http://web.archive.org/web/20030206051953/http://www.aloa.org/about/chapter.htm#aloa
Associated Locksmiths of America www.aloa.org
ALOA’s locksmith listings www.findalocksmith.com


Podcast of March 3, 2010 – Agriculture & Natural Resources Committee (Video is no longer archived but audio is in the form of a podcast)
www.myfloridahouse.gov/Sections/PodCasts/PodCasts.aspx Scroll down to the Committee’s March 3 podcast. You can also scroll down to the March 22 podcast of the Public Safety & Domestic Security Policy Committee and hear Mabry say she represents Florida Locksmiths..


Janet Mabry’s appearance sign in

www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=2470&Session=2010&DocumentType=Action Packets&FileName=ANRPC_ACTN_3_3_2010.pdf

This link is very long, so go to www.myfloridahouse.gov, then select committees and scroll down to “General Government Policy Council.” From there select the Agriculture & Natural Resources Policy Committee. Once on their page, select “All Council and Committee Documents” from the Committee Document section and select the March 3rd Action Packet. Page 5 lists Janet Mabry signing in as a lobbyist for Florida Locksmith Association.


Miami-Dade’s Locksmith Ordinance

www.miamidade.gov/csd/locksmith_ordinance.asp


Consumers can file or check out complaints at the following links:

County level - Most counties have a Consumer Protection Ordinance and agency that
handles complaints. Go to the local county page and look for the link.
Also, go to local police or sheriff’s office.

State level -
Department of Agriculture & Consumer Services
www.800helpfla.com/complnt.html
Office of the Attorney General of Florida
http://myfloridalegal.com/
To check out current investigations, go to: http://myfloridalegal.com/lit_ec.nsf/investigations, click on the “Search Active Investigations” link on top of the column of investigations. Type in the word “Locksmith” and see David Peer’s investigation show up.

Accurate answers? Part 2: FWCLA and ALOA’s flawed evidence about Florida locksmiths continues

Question 3 –continued

The distinction about who is causing the problem is imperative since lawmakers need accurate information upon which to base their support or their votes. Senate analyst Mandy O’Callaghan said in an interview that Florida West Coast Locksmith Association (FWCLA) and Associated Locksmiths Of America (ALOA) presented committee members with a booklet of news articles as documentation of “locksmith misconduct.” When I asked O’Callaghan if the misconduct were by professional locksmiths or call center employees posing as locksmiths, she said she wasn’t sure, but thought it was both.

In the March 3, 2010 hearing in front of the Agriculture & Natural Resources Policy Committee, Rep. Thomas Anderson, House sponsor of the bill, can be seen holding up the booklet and referring to it. (Video archives are no longer available, but audio podcasts are. See link below.)

“The locksmith industry has shared with me many examples of excessive charges and questionable practices by various locksmiths” said Anderson, “and is in agreement with this bill and actually the bill is being brought forward on behalf of the locksmith industry. It’s not something that I dreamt up. It’s something that the industry feels is needed and would like to have passed.”

Anderson then holds up the booklet, “I have a booklet here and I think most of you have seen this booklet. It is a listing of newspaper articles and magazine articles on the issue of theft, abuse and fraud in the locksmith industry. Now most recently, the current issue of Women’s Day magazine highlights ‘Scam Alert.’"

Anderson begins reading the article, “I recently called a local locksmith and ended up talking to a call center in Kansas and I live in Oregon. Scam companies will pile phone books with similar names however they are centrally located in other states.”

“Not only do they overcharge,” Anderson emphasized, “but they send out inexperienced locksmiths who now know how to get into your home.”

“Excessive charges and questionable practices by various locksmiths?” “Inexperienced locksmiths?” Could these possibly be unprofessional “locksmith” scammers Rep. Anderson is referring to?

Rep. Anderson doesn’t seem to be able to distinguish between the professional locksmith and the phony based on the information he’s been given. When you watch the video of the proceeding, it’s obvious that no proponents of the bill, sitting in close proximity to Rep. Anderson, attempted to clear up his misconception. Bobble-head FWCLA lobbyist Janet Mabry sat on the front row behind the podium where Anderson spoke, and where FWCLA Treasurer Ken Kupferman later spoke, and continually nodded her head in agreement.

This huge misconception is upon what most committee members would base their vote. Kupferman did not take the opportunity when he spoke to correct what had been said.

The booklet was just a print off of the 201 news stories on ALOA’s website. Associations of criminal elements to Florida’s professional locksmiths by FWCLA and ALOA were intentional and shameful.

So, the accurate answer to Question #3, (according to the documentation ALOA provided) is NONE. There was NO documented evidence of harm done to the Florida public by Florida’s professional locksmiths presented.

Locksmiths are regulated and information about them can be accessed online

Consumers can check local city or county websites to see if locksmiths are complying with local regulations by having a valid occupational license or business tax receipt. Consumers can also go to local associations websites to investigate local professional locksmiths and can call or go to county consumer protection agencies’ websites to see who complaints have been filed against.

Locksmiths are also self-regulated concerning training through their local associations. Training sessions are open to members and non-members alike.

As for unregulated “locksmith” scammers, they are criminals and it is difficult to “regulate” criminals until after they’ve been caught. They can and have been stopped in Florida by enforcing anti-fraud laws already on the books.

Questions 4 & 5 combined

Provide a list of states that regulate the profession (Question 4) and a list and description of state and federal laws that have been enacted to protect the public with respect to the profession or occupation and a statement of the reasons why these laws have not proven adequate to protect the public (Question 5):

Only ALOA answered: After listing 15 states with locksmith laws (and their websites), ALOA lists Connecticut, Nevada and Nebraska as having locksmith registration laws but writes “they have no enforcement mechanism except for lack of being registered.” I’m assuming only ALOA answered this question since FWCLA is Florida-based and not involved in other states’ legislation as is ALOA.

Inaccurate: In reading the laws in these three states, as in the other 12 states, if a locksmith is not registered, they will hear from the state or county authorities or law enforcement and suffer penalties such as fines, suspension, revocation or non-renewal of their license or registration. For those not registered who pose as locksmiths, the anti-fraud laws apply and they have been used successfully.

The other 12 states require something these three states lack -- mandatory and continuing testing and education. Apparently, this is the “enforcement mechanism,” that ALOA seeks.

Questions 6

Provide a description of the voluntary efforts made by members of the profession or occupation to protect the public and a statement of the reasons why these efforts are not adequate to protect the public:

Only ALOA answered: “ALOA has a grievance procedure, where they (we) can remove violators of the Code of Ethics from our rolls, but it only applies to members.”

Accurate: Short and sweet, but neglected to mention all the things Florida locksmiths have done to protect the public and why these efforts are working. See answer in Question 8. Local locksmith associations have their own grievance procedures as well and they, too, are limited to their members.

Neglected: Strange . . .FWCLA didn’t even mention their consumer warning page on their own website which makes me wonder just who filled out this questionnaire. Nor did they mention any of the consumer warnings on other locksmith association websites or the consumer warnings on most every legitimate locksmith’s website.

Question 7

Provide a copy of any federal legislation mandating regulation:

Answer: The Federal Non-Mailability Act (see attached).

Accurate: This relates to certain locksmithing devices such as bump keys prohibited from being mailed except by those within the locksmith community.

Question 8
Provide an explanation of the reasons why other types of less restrictive regulation would not effectively protect the public:

Only ALOA answered: ALOA refers back to their answer to Question 6 concerning “no enforcement mechanism except for lack of being registered.” They also conclude “if a registered locksmith harms the public, there is no recourse.”

Inaccurate: As long as Florida has attorneys, there is recourse against professional locksmiths (those professionally-trained Florida locksmiths who actively acquire skills and training to enhance his/her service and livelihood). As long as Florida has anti-fraud laws on the books, there is recourse against locksmith scammers. Scammers are criminals. Criminals can’t be “regulated” until they are caught. The public does not need to beware of professional locksmiths. Consumers have several agencies at the state and local levels where they can file a complaint. See links below.

ALOA neglected to mention all that Florida locksmiths are successfully doing:
Professional locksmiths have been voluntarily getting the word out about scammers to their customers whether verbally, by flyers, on their websites and blogs. They have threatened to pull their advertising from phone directories and Internet search engines if these providers don’t get rid of the scammers and it is working. Florida locksmiths educate the public at every chance and have not been waiting for the government to solve this problem for them.

Question 9
Provide the cost, availability and appropriateness of training and examination requirements:

Only ALOA answered: ALOA states that they have a nationally recognized training and testing program to sell to states at a nominal fee and it could be adjusted to meet each state’s needs.

Accurate, but neglected to mention: According to ALOA’s July 2009 Keynotes magazine, ALOA derived almost 50 percent of their income (more than $1 million) from their multi-day, all-day training conventions and educational programs.

That same year they took in $836,762 from memberships -- a decline from the prior year. The $836,762, by the way, accounts for 4,291 members each paying $195 annually or 5,071 paying $165 each since $30 goes to a legislative assessment fee. Kupferman had stated in a prior interview that the organization had 8,000 – 9,000 members. (See story in Locksmith Investigator link below.)

Since ALOA initiated this bill through its former president and former affiliate, it probably seems appropriate to them to influence locksmith legislation in various states, including Florida, to include mandatory testing and continuing education for their benefit.

As national policy analyst John Berlau said, “they (ALOA) shouldn’t use the power of big government to both coerce locksmiths and consumers into their cartel and fill their coffers.” See Berlau’s comments below in the Locksmith Investigator article entitled, “National policy expert gives pending Florida locksmith law a thumbs down.”

Tomorrow: The final installment of this report reveals facts that FWCLA and ALOA failed to mention, reveals what other state agencies have stated about the problem and more about the proponents of the bill.

DOCUMENTATION

Podcast of March 3, 2010 – Agriculture & Natural Resources Committee
(Video is no longer archived but audio is in the form of a podcast)
www.myfloridahouse.gov/Sections/PodCasts/PodCasts.aspx Scroll down to the Committee’s March 3 podcast. You can also scroll down to the March 22 podcast of the Public Safety & Domestic Security Policy Committee and hear Anderson repeat the same speech.


See Consumer Warning pages

Central Florida Locksmith Association www.cflalocksmith.org
First Coast Locksmith Association www.fcla.net
Florida West Coast Locksmith Association www.fwcla.org

FWCLA listed on ALOA’s June 2003 website as an affiliate: http://web.archive.org/web/20030206051953/http://www.aloa.org/about/chapter.htm#aloa"

Associated Locksmiths of America www.aloa.org

ALOA’s Keynotes magazine – July 2009
https://docs.google.com/fileview?id=0B0C_xUBqIBkhYjE5ZTdiNWMtYzRjZi00M2ZkLWIzMDUtM2IxMzE1MDBhN2Nl&hl=en"


Janet Mabry’s appearance sign in

www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=2470&Session=2010&DocumentType=Action Packets&FileName=ANRPC_ACTN_3_3_2010.pdf

This link is very long, so go to www.myfloridahouse.gov, then select committees and scroll down to “General Government Policy Council.” From there select the Agriculture & Natural Resources Policy Committee. Once on their page, select “All Council and Committee Documents” from the Committee Document section and select the March 3rd Action Packet. Page 5 lists Janet Mabry signing in as a lobbyist for Florida Locksmith Association.

Podcast of March 3, 2010 – Agriculture & Natural Resources Committee
(Video is no longer archived but audio is in the form of a podcast)
www.myfloridahouse.gov/Sections/PodCasts/PodCasts.aspx Scroll down to the Committee’s March 3 podcast. You can also scroll down to the March 22 podcast of the Public Safety & Domestic Security Policy Committee and hear Mabry state she is at the meeting to represent “Florida locksmiths.”


Locksmith Investigator news articles
“National Locksmith Association changes ethics code – almost.”
http://locksmithinvestigator.blogspot.com/2009/04/locksmith-association-clarifies-ethics.html
“National policy expert gives pending Florida locksmith law a thumbs down.”
http://locksmithinvestigator.blogspot.com/2010/03/national-policy-expert-gives-pending.html

Accurate answers? Part 1: Just what did FWCLA and ALOA tell the Florida legislators about Florida locksmiths?

Legislators review hundreds of bills each year and cannot be expected to know and understand how every industry works or what its needs are. One way they obtain information is to require that proponents of a bill supply answers about the impact and cost of the bill on a questionnaire called the “Sunrise Questionnaire for Groups Seeking New Regulation.”

Proponents Tim McMullen of Associated Locksmiths of America (ALOA) and Ken Kupferman of the Florida West Coast Locksmiths Association (FWCLA) answered the 14 questions posed to them. Both sponsors of the bills, Representative Thomas Anderson (R) and Senator Victor Crist (R), later on in committee meeting testimony, echoed much of the information.

Since many times busy legislators rely on the information provided by industry experts, it’s important to examine the accuracy of the information ALOA and FWCLA provided about the Florida locksmith industry.

Some questions and answers have been summarized. To read the Questionnaire and the answers in its entity, go to the link at the bottom of the story. Links to all documentation are listed after the story. Also, take the time to notice how many questions are obviously answered by ALOA and how many by FWCLA. It’s important when the very last question is presented.

Question 1
Provide the number of individuals or businesses that would be subject to the regulation:

Only ALOA Answered: ALOA estimated there were 1,660 locksmiths in Florida. ALOA states they have 415 Florida members and with these figures assumes they represent 20% of all Florida locksmiths.

Inaccurate: The Senate’s analyst Mandy O’Callaghan, who analyzed the bill, estimates there are 2,400 locksmiths in Florida. An exhaustive check of ALOA’s FindALocksmith website for Florida locksmiths in April revealed only 249 Florida members listed. These figures indicate ALOA represents only 10% of all locksmiths in Florida. Either ALOA miscounted or 166 Florida locksmiths have paid for an ALOA membership with a listing and did not get their listing.

Question 2
Name each association that represents members of the profession or occupation and provide a copy of its codes of ethics or conduct:

Answer: FWCLA and ALOA stated they had members in 3 state associations and listed:

Central Florida Locksmith Association
    (45 members, 7 in ALOA)
First Coast Locksmith Association
    (20 members, 1 in ALOA)
Florida West Coast Locksmith Association
    (48 members, 8 in ALOA)
Associated Locksmiths of America (ALOA) – Code of Ethics attached.

Accurate: After comparing ALOA’s membership list with the online member lists of each association, ALOA has a total of 16 members in three state associations or about 13%.

Accurate? Since ALOA did attach their Code of Ethics, I checked to see if “fudging” on a Senate Questionnaire was specifically listed and no, it wasn’t. The ALOA Code of Ethics is worth a read. It specifies that locksmiths should have “high ideals of personal honor.”

Question 3
Document the nature and extent of the harm to the public caused by the unregulated practice of the profession or occupation. Describe any complaints lodged against persons who have practiced the profession or occupation in this state during the preceding 3 years.

Before we reveal FWCLA and ALOA’s answer, we first need to get a good definition of a “professional” locksmith. Locksmiths, themselves, come in various degrees depending upon their desires. Some locksmiths are general practitioners – they do a little bit of everything. Others may specialize in just one or two areas of locksmithing such as auto, safes, commercial, residential, access control, hospitality, etc. The possibilities are endless. But whatever course of operation a locksmith chooses, he/she can be considered a professional if they meet the following definition and I believe most locksmiths meet this definition. To define a “professional” locksmith we do that by defining three words within this question:

Practice: to do or perform something repeatedly in order to acquire a skill

Profession: an occupation that requires considerable and specialized training
Occupation: an activity that serves as one’s regular source of livelihood

With these definitions, the question clearly is “Document the nature and extent of the harm to the (Florida) public caused by unregulated (by the State) professionally-trained Florida locksmiths who actively acquire skills and training to enhance their service and livelihood.”

The word “Florida” was added to clarify which “public” the Senators were concerned about since, obviously, they can only legislate in Florida. Also added are the words “by the State” to modify the word “unregulated.” Currently, there are no State regulations, which is what the question refers to, but professional locksmiths do adhere to county and city regulations, which mainly include zoning procedures, occupational licenses or business tax receipts.

Why “locksmith” scammers can never be considered professional locksmiths

Undoubtedly, one of the best explanations of how a network of professional locksmiths operates within a community was written by locksmith Tom Lynch, CRL, founder of the Society of Professional Locksmiths and former board member of ALOA and is posted on the media resource page of his website. (See link below) It states:

Fabric of the Industry -
The locksmith industry is comprised of a variety of individuals who posses various skill sets and backgrounds. The industry is considered to be a specialized tight-knit community. On a local level the professional locksmiths know each other and those working within their demographic area because of all the hours spent training together, meeting at locksmith supply houses, attending social events and association meetings, and attending product seminars or conventions. These locksmiths are frequently engaged in assisting one another in skill set development and mentoring. They regularly refer locksmiths in other areas when calls come in from out of their work area or if a job requires someone of a certain specialty.

“Locksmith” scammers are obviously locked out of this vibrant network of professionals.

Unfortunately, for Florida’s professional locksmiths, FWCLA and ALOA did not read through the question as thoroughly as I did. Their answer lumped Florida’s professional locksmiths with all sorts of criminal and unethical “locksmith” scammers not only in Florida, but all over the United States and in Canada when they provided a specific link to ALOA’s website. Here’s FWCLA and ALOA’s answer, or maybe it was just ALOA’s answer:

Answer: FWCLA and ALOA state that “locksmith scammers are defrauding and overcharging the public all over the country with a large portion in the retirement communities of Florida.” Legislators are provided a link to ALOA’s website, specifically to an 11-page list of 201 news stories from around the country and Canada with at least one-third of the articles more than three years old. (There were 201 news stories when I first began writing about this issue. More stories have been added.)

Accurate part: “Locksmith” scammers……is happening all over the country.

Inaccurate part: Linking to this list of 201 news stories across the country gives the impression the problem in Florida is huge when only 13 stories are Florida-related and within the three year limit. Many of the headlines use the word “locksmith” without explaining that these were call center employees posing as locksmiths.

Here’s how the 13 Florida stories break down:

8     Stories highlighted the investigation and arrest of call center
      owner David Peer who dispatched the “locksmith”scammers.
      (This was great news for the industry. These are not problem
    “locksmith” stories but problem solved stories.)
1     “News story of Senator Victor Crist introducing SB 658
      (an announcement story)
4     Stories are about call center employee scammers posing as
      locksmiths. None of the stories identify the victim as
        a retirement community resident. See links to stories below.

Four incidents in 3 years, none of which are related to professional locksmiths. This is not a huge problem. I’ll tell you later what other agencies have said, but after analyzing merely the documentation ALOA provided to legislators, there were only 4 incidents.

Tomorrow:
Part 2 details the booklet of locksmith misconduct given to House Committee members, Rep. Thomas Anderson’s comments at a committee hearing, what important “enforcement mechanism” (law) does ALOA believe is necessary for Florida locksmiths and what is the motivation behind ALOA’s push


DOCUMENTATION

Sunrise Questionnaire Click Here

Associations

Central Florida Locksmith Association www.cflalocksmith.org
First Coast Locksmith Association www.fcla.net
Florida West Coast Locksmith Association www.fwcla.org

Associated Locksmiths of America www.aloa.org

ALOA’s locksmith listings www.findalocksmith.com
ALOA’S Press room – 200+ stories www.aloa.org/pdf/pressroom.pdf
      There were 201 stories when I first began investigating in March/April

Society of Professional Locksmiths' Media Resource Page
www.sopl.us/media-resource-page.html

4 news stories – none identifying victims as retirement community residents

1. University of South Florida students and “locksmith” scammers www.usforacle.com/address-listings-for-mobile-locksmiths-don-t-match-up-1.2109053

2. Jacksonville “locksmith” scammer story www.firstcoastnews.com/news/special/specialreports/news-article.aspx?storyid=147962&catid=343

3. Hudson, FL story of woman and “locksmith”scammer www.abcactionnews.com/news/local/story/Finding-a-trustworthy-locksmith/QNY61c7L3kiKAAAOnpMSEQ.cspx

4. Orlando woman and “locksmith” scammer www.clickorlando.com/news/14656112/detail.html

Investigation uncovers origins and motivations of failed locksmith law

Tomorrow I’ll begin posting my three-part investigative report on how the Associated Locksmiths Of America (ALOA) and the Florida West Coast Locksmith Association (FWCLA) answered the Florida Senate’s 14 questions on the impact of the bill they proposed. The information is vital because if the proponents’ answers were flawed and unchallenged, as they were when no one opposed the legislation in the committee meeting hearings, it could have resulted in a defective locksmith law and caused hardship for locksmiths for many years to come.

While I completed the report about two weeks ago, my editor, Carol, had it a week, then, of course, there was the inevitable talk with the attorney. It’s always good to get a legal opinion even if you have years of legal experience and almost one year of law school. I say, almost, because while I loved learning about law, I realized I didn’t want to be an attorney so dropped out near the end of the first year. The knowledge I received, however, was invaluable for conducting investigations as well as writing and researching legal and legislative issues, but I’d never be so foolhardy as to proceed into a prickly area without advice of counsel.

Investigative journalists who write blogs have to be judicious in what they write so as not to unintentionally draw a defamation suit. Defamation occurs when “one acts with reckless disregard for the truth.” Documenting every step taken in the investigation, obviously, provides the antidote to reckless disregard. Documentation also leaves a trail of breadcrumbs that some one else can follow if need be.

Investigative work and documentation are time-consuming because stories must be based on accurate facts and figures that are not always initially apparent. A friend, in his 70’s, recently shared sage advice about figures that he learned in his youth.

“Remember,” said Bill Nichols of Winter Park, “Figures do not lie, but liars sure can figure.”

Exactly! That’s what reporters seek to discover – who’s mischaracterizing issues, facts and figures and why? Who’s making what statements and for what purpose? Of course, there are those who sometimes make statements out of ignorance – they just don’t know enough about a situation and assume things or they repeat rumors. For others, it’s intentional. They have a plan. They have an agenda. There’s a goal in sight. At other times reporters just have to explain issues in concise terms so people can understand them. Investigative reporters are trained to sort things out and give a clearer picture of what is going on or what happened.

Part 1 of my report details the first two questions and part of Question 3 and includes: who would be regulated and how many of the locksmiths do the proponents say they represent; what associations are involved and the evidence ALOA and FWCLA presented on how Florida locksmiths have harmed the public.

See you tomorrow!

Florida locksmith services law dies in House and Senate committees

The 2010 Locksmith Services law (House Bill 301 and Senate Bill 658) died in committee on April 30, the last day of session. While Florida locksmiths are safe from the burdensome regulations for another year, it was closer to passing this year than last.

The bills passed favorably through 2 of the 5 Senate committees and 2 of the 4 House committees. By mid-April, with only 2 weeks left in the session, the bills looked all but dead. Then former Associated Locksmiths Of America (ALOA) President Ken Kupferman sent out an urgent email asking Florida locksmiths to call House Speaker Larry Cretual and Majority Leader Adam Hasner and “ask them to bring our bill to the House Floor for a vote.”

What was going on? Had something been missed? How could asking Cretual and Hasner to bring the bill to the House floor for a vote have helped when it still had so far to go in the Senate? What would that have accomplished?

Plenty, as it turns out!

According to Jaryn Emhof, Communications Director for Senate President Jeff Atwater, “when a bill in the House and the Senate is identical (as was the case with HB 301 and SB 658) , and, if a deal has been made between the sponsors, should the bill pass one Chamber, it can automatically be passed in the other Chamber.”

Did Rep. Thomas Anderson (R) and Senator Victor Crist (R), (both sponsors in 2009 and 2010), reach an agreement either before or during the 2010 session? It’s possible. If it had been brought to the floor for a vote, in all likelihood, it would have passed, sidestepping the 5 remaining committee hearings.

So that may be the reason for Kupferman’s final urgent emails. It’s also a good reason why those who oppose legislation, any legislation, need to travel to Tallahassee to speak at committee hearings at the beginning of March to stop any unwanted legislation.

I did take Kupferman’s email seriously and called and sent faxes to Cretual and Hasner, but not in support of the bill. This course of action, however, was frustrating, and, I believe, not very effective at this point in the process. When I asked legislative staff answering the phones how they verify that those calling in to express their opinions are Florida residents, they said there was no way they could do that. Since ALOA has about 4,000 to 5,000 nationwide members, it was very disconcerning especially knowing what I already knew about their approach to this legislation.

Knowing how the system works empowers constituents

So how does a bill get started? Generally, interested Floridians approach their representatives in the Senate and the House to suggest a new regulation. Things usually begin happening far in advance of the March to April 60-day session when legislators actually vote on bills.

Bills are filed in November and then referred to councils or committees for discussion. November through March is the best time for constituents to visit their representatives in their district offices and voice their opinion about pending legislation. The second best opportunity for the opposition to voice their opinions is when the committee meetings begin in March. Until then, it’s possible that Representatives and Senators only know what the proponents of the bill have said.

Proponents are usually better organized and funded and are able to hire lobbyists. They and their lobbyist have already been visiting legislators in their districts offices and at campaign events. They even hold events packed with supporters of the bill and invite legislators to attend “to hear what the average locksmith thinks about the bill.”

If no one speaks against the bill at the committee meetings in Tallahassee, as happened in this case, then the bills are favorably passed by majority vote on to the next committee to await the next hearing and vote.

So what did the proponents of the bill have to say about Florida locksmiths and the Florida locksmith industry? You’d be surprised. I know I was.

My next post will reveal how the proponents of the bill answered the 14 questions of the “Sunrise Questionnaire for Groups Seeking New Regulation.” Exactly who are these proponents? How accurate was their assessment of the locksmith industry in Florida or did they over-inflate the problems and their representation of the industry? Did they mischaracterize Florida locksmiths or were they spot on? More importantly, what did they neglect to mention?

The next post is a long one because not only are the questions and answers listed, but interviews with legislative staff and investigative research has been provided as to the validity of the proponents’ claims.

If you haven’t signed up for this blog by email, please do so now. Watch for this next post, print it out and take time to read it. Then be ready next November to take a stand should a new bill be filed. Visit your representatives when they hold campaign events this summer or in their district offices – it’s a much shorter trip than driving to Tallahassee.

Who said what at the Florida Senate hearing on the locksmith bill and why was it important?

Last Tuesday the Florida Senate Community Affairs Committee passed unanimously SB 658 to impose strict regulations on Florida locksmiths. The hearing lasted just 2 minutes and 25 seconds and only one proponent spoke in favor of the bill – the bill’s sponsor Senator Victor Crist (R). Also on hand to speak was Florida West Coast Locksmiths Association lobbyist Janet Mabry. No opponents came to speak against the bill.

Since you missed the hearing, here’s a transcript of what was said. Senator Crist was introduced to the committee by Chairman Senator Mike Bennett (R).

Crist: "Thank you, Mr. Chairman.

Members, We find from time to time we often need to go into a certain area of consumer industries and provide additional safeguards for consumers. Over the years, the locksmith industry has been a favorable industry by those who would prey on consumers through illegal activities to grow those illegal activities. We provide on this industry to put our locks on our homes, businesses, schools and what not and criminals are finding what better way to access than to be the locksmith to secure the facility or keep a set of keys or combination to your safe for themselves.

So what this bill does per the request of this industry sets basic requirements that starts 1) doing criminal background check. 2) it requires they have to have a legal location and address at which they do business, and it basically professionalizes the industry and it works to helps protect the consumer from the rampant fraud that has been taking place especially in South Florida. There has been a lot of media attention to this issue.”

Chairman: “ Questions? We have one speaker, Janet Mabry for the Florida Locksmith Association** who is in support of the bill. Additional questions? (no response from committee members) Additional debate? (no response from committee members) Secretary, please call the roll on SB 658.”

The secretary then called the roll and nine Senators (one was absent) all voted in favor of the bill.

Committee members all voted to “professionalize the industry and help protect the consumer from the rampant fraud that has been taking place, especially in South Florida.”

So is there rampant fraud in Florida’s locksmith industry, especially in South Florida? Why is this important? It’s important because if it’s true, legislators should take immediate action to stop it. (According to Webster’s Dictionary “rampant” is defined as “threatening, extravagant or unrestrained in bearing.”)

If it’s not true that professional locksmiths are acting fraudulently, then regulating professional locksmiths won’t solve the problem.

Those, however, who pose as professional locksmiths, tend to negatively influence the public’s perception of the industry. These fakers (criminals) would legally fall under the anti-fraud laws and the jurisdiction of Attorney General Bill McCollum’s office. These criminals, obviously, can’t be "regulated" with civil charges until caught. Part of the duty and mission of McCollum’s office is to warn and educate the public of fraudulent activity such as the warnings of similarly unlicensed industries such as car mechanics. (Car mechanics pay for their own initial training, can improve their knowledge by voluntarily getting training or certified in certain brands or systems and don’t require licensing or continuing education.)

Depending upon the frequency of the crime, it may be time for McCollum to add the locksmith industry to his list of the 83 most frequent crimes against consumers. Each link on his page leads to information on how to avoid being a victim of the particular type of fraud.

In the meantime, Senator Crist’s legislative aide is compiling the documentation upon which the Senator based his conclusions. That along with requested locksmith fraud information from McCollum’s office and from an agency in South Florida should give a better picture of what is happening in Florida.

Plus, coming next week are interviews with Dade County locksmiths who are already regulated. What is the difference between the Dade County ordinance and the proposed locksmith law? And do those who are already regulated, think the new law will solve the problem of those posing as locksmiths?


** Note: There is no “Florida Locksmith Association.” When Mabry signed her Florida Senate Committee Appearance Record (card), she wrote that she was representing “Florida Locksmiths.” She should have written her client’s name - Florida West Coast Locksmith Association. However, the card did look like it was written quickly. When the Chairman, Senator Bennett read the card he mistakenly added the word “Association.”

Senate hearing on Florida locksmith law meets Wed., April 7, 2010 in Tallahassee

The Senate Community Affairs Committee meets at 8 a.m., Wed., April 7, in Room 412-K of the Knott Building (404 South Monroe Street) to hear comments from those opposing or supporting SB 658 filed by Sen. Victor Crist (R) on behalf of Ken Kupferman, former ALOA president, but representing the Florida West Coast Locksmiths Association and Tim McMullen, ALOA Legislative Manager.

This committee hearing is the second of five committees the bill must favorably pass through to get a vote on the Senate floor. It has already passed the Commerce Committee hearing. If unable to attend this hearing, you can phone, fax or email the committee members listed below to express your opinion.

The sponsor of the bill, Senator Victor Crist (R) can be reached at: 850-487-5068 or at Crist.Victor.web@flsenate.gov.

Community Affairs Committee

Chair: Senator Michael S. Bennett (R)
District Office: Bradenton
850-487-5078 Phone
850-487-5486 Fax
Bennett.mike.web@flsenate.gov

Vice Chair: Senator Gary Siplin (D)
District Office: Orlando
850-487-5190 Phone
850-487-5418 Fax
Siplin.Gary.web@flsenate.gov

Committee Members:

Senator Thad Altman (R)
District Office: Melbourne
850-487-5053 Phone
850-487-5463 Fax
Altman.Thad.web@flsenate.gov

Senator Ted Deutch (D)
District Office: Delray Beach
850-487-5091 Phone
850-487-5456 Fax
Deutch.Ted.web@flsenate.gov

Senator Rudy Garcia (R)
District Office: Hialeah
850-487-5106 Phone
888-284-8594 Fax
Garcia.Rudy.web@flsenate.gov

Senator Andy Gardiner (R)
District Office: Orlando
850-487-5047 Phone
850-487-5527 Fax
Gardiner.Andy.web@flsenate.gov

Senator Anthony C. Hill, Sr. (D)
District Office: Jacksonville
850-487-5024 Phone
850-487-5447 Fax
Hill.tony.web@flsenate.gov

Senator Jeremy Ring (D)
District Office: Margate
850-487-5094 Phone
850-487-5394 Fax
Ring.Jeremy.web@flsenate.gov

Senator Ronda Storms (R)
District Office: Brandon
850-487-5072 Phone
850-487-5485 Fax
Storms.Ronda.web@flsenate.gov

Senator John Thrasher (R)
District Office: Jacksonville
850-487-5030 Phone
850-487-5368 Fax
Thrasher.John.web@flsenate.gov

Senator Stephen R. Wise (R)
District Office: Jacksonville
850- 487-5027 Phone
Not available at press time
Wise.Stephen.web@flsenate.gov

National policy expert gives pending Florida locksmith law a thumbs down

I asked John Berlau, policy analyst at the Competitive Enterprise Institute in Washington, D.C. to look at HB 301 and comment on how this law would affect the mom-and-pop locksmith businesses if this law passed in Florida. Berlau is a frequent guest on Fox News’ “Your World with Neil Cavuto,” CNBC’s “The Call” and “Closing Bell” and MSNBC’s “The Situation” with Tucker Carlson. Besides television and radio broadcasts, Berlau writes for numerous news publications such as the Wall Street Journal, Barron’s and Investor’s Business Daily. He is the Director of the Center of Investors and Entrepreneurs for CEI and graduated from the University of Missouri with a degree in journalism and economics. For more information about Berlau and the Competitive Enterprise Institute, go to http://cei.org or www.cei.org.

Barbara Martin: So, Mr. Berlau, what did you think about the pending locksmith law in Florida now that you’ve had a chance to analyze it?

John Berlau: Nobel Prize winner in Economics Milton Friedman had written that the real effects of licensing, though often justified by proponents in the name of safety and security, is to serve the self-interest of members of a powerful industry group and to lock out competition. This group will then raise the rates, raise the wages and raise the prices to the advantage of the group benefiting from the law.

It seems like what Friedman wrote fits this bill.

The big issue is that the costly hours for mandatory training puts up a barrier for competition, raises prices for consumers and may actually be unconstitutional.

There are definitely some constitutional issues here. The Fourteenth Amendment states that individuals cannot be deprived of life, liberty and property without due process of law. To practice your trade is a liberty and this bill takes that away without due process of law and it just states that you can’t be a locksmith. There have been some court challenges based on this amendment and recently courts have been friendlier to economic liberty.


Martin: The Associated Locksmiths of America (ALOA) has provided the framework for the bill including the mandatory training. You can see a sample bill on their site which they make available for local locksmith associations to present to legislators as a guide. All they really need is one association in the state to work with them. While there are thousands of locksmiths in the state of Florida (estimates of about 3,000*), ALOA only lists 234 Florida members on its site (268 if you count duplicate business listings), yet ALOA’s members and their certified trainers in Florida are spearheading and pushing the legislation probably because a good part of their income is derived from providing training programs and trainers.

Berlau: ALOA should operate like AAA (the American Automobile Association) and other organizations in their ratings of businesses such as hotels. It is fine for ALOA to perform such a service, but as with AAA hotel ratings, it should be voluntary. ALOA is free to advertise to the market, to make the case to consumers that its members who complete their training are more qualified. They are free to use that power of persuasion, but they shouldn’t use the power of big government to both coerce locksmiths and consumers into their cartel and fill their coffers.

Martin: Another reason, no doubt, ALOA is involved is because of the locksmith scammer problems we’ve had, although with the arrest of a major player, call center owner David Peer in November, that problem seems to have to subsided. I’m seeing more legitimate locksmith ads and listings on the Internet and the phone directories are working on the problem as well. The latest books I received had no scammer advertising in it, but the listings still needed work.

Berlau: These problems all get into the issue of fraud. You wouldn’t need all this required training to solve fraud problems. All that’s needed are the false advertising laws already on the books. There are going to be scam artists out there. This law affects the law-abiding. They just need to beef up the fraud laws or enforce the laws already on the books. I’m sure Florida has a number of fraud laws on the books, bait and switch, - whatever - you can get them on any one of those laws and if they cross state lines it would involve federal laws.

Ultimately, Florida locksmiths should have the liberty to practice their trade without unreasonable restrictions. It seems all that would be necessary would be a simple background check to prevent criminals from becoming locksmiths.

While I generally believe that fingerprinting violates privacy rights, civil liberties and the Fourth Amendment’s prohibition of unreasonable search and seizures, there is an issue of public safety here. Still, I’m not sure if the safety interests here justify fingerprinting. If fingerprints are collected, though, access to the fingerprint registry needs to be strictly controlled to prevent abuses.

Martin: Thank you so much for your interview. You've effectively defined what a lot of locksmiths are saying and feeling.

Berlau: Anytime. Please keep me informed. This is an issue CEI would like to follow.




*Note: One good thing about blogs is that when you make a mistake you can fix it quickly. I previously over estimated the number of locksmiths in Florida. The number is closer to 3,000.

Investigations and emails continue

Happy New Year! Okay, it’s February so maybe I should say Happy Valentine’s Day. I’ve been on sabbatical and it’s been refreshing. Still writing, of course, just not focusing on the locksmith industry.

It’s been an interesting year (11 months actually) writing a blog. But it’s been tough because blogs demand frequency and consistency. Investigative journalism doesn’t work that way. It requires research, documentation, fact-checking, multiple interviews, re-interviews, writing, re-writing several times, then sending it to your editor. By the way, my editor, Carol Leff, is pretty good at not letting anything get by her.

Investigative reports cannot be scheduled for weekly postings as much as I’d like it to happen that way. I usually work on two or more investigations at the same time. If another important story breaks, I’ll mention the publication/reporter and provide a link to it instead of jumping into another investigation. In that way, I can focus on what I feel are the issues of the locksmith industry instead of concerns about a weekly post.

Favorite emails

My favorite emails by far are from locksmiths and consumers who thank me for the work I do. It’s gratifying.

Second on my list of favorite emails are fellow reporters who are working on their own stories about locksmith scammers. TV reporters generally don’t have the time or budget to invest in lengthy investigations. Last fall one news reporter asked how I came up with the figures for my phone directory story. I detailed the interviews and steps taken to get accurate numbers. Since I haven’t seen his story yet, I’m assuming he couldn’t invest the time to investigate in his area. News organizations, both print and TV, are short-staffed and it’s a growing problem in the industry. Many of the posts on news forums deal with the lack of funds for investigations.

Finally, I don’t usually receive emails from an editor of a national locksmith publication complimenting my “solid investigative skills and writing.” (Thanks, Carol, for making me look good!) She asked that I contact her about writing a monthly column for them. About a week later I attempted to get back to her and she was no longer listed on the website for the publication. Yet another staff cutback. C’est la vie!

Bogus locksmith emails

There were several attempts by locksmith scammers to get listed as legitimate locksmiths on my www.find-a-legit-locksmith.com when it was up. I also get comments from scammers trying to post comments to my blog posts. I guess they think I’ll list them or post their comments with a link to their business without checking them out first. Not likely. One Miami locksmith scammer wanted to get listed so I asked for his locksmith license (required in Dade County). Never heard from him again.

Anonymous emails

An anonymous email from my www.find-a-legit-locksmith.com site showed up in my inbox last year. Some one sure was mad at a Spring Hill locksmith. They passed on his name, business name, address and phone number along with information that he was a convicted felon, drug addict and had protection orders out on him. Ouch! That sounds personal.

So was it true? I don’t know. I did some initial checking but the locksmith had a fairly common name and no birth date was given. He was not legally registered in Hernando County with a business license and there was no response to my email to the sender. I did find two criminal cases for someone with his name – one case did not end in a conviction and the other was really bizarre. A 2006 drug possession case was suddenly closed and a death certificate was entered into the court records. So I’m thinking that wasn’t him. Sometimes investigations just dead end.

I had just about decided not to waste my time investigating any more anonymous email writers when I got one from a former employee of David Peer of Dependable Locks, Inc. Peer owned the Florida locksmith call center that sent out phony locksmiths. After several email interviews, my editor and I decided the timing wasn’t right to release the story. We needed more than one source to verify the story, plus we couldn’t risk the informant (or myself) becoming a target of these criminal enterprises types who use lawsuits, death threats and other intimidation practices to silence those who attempt to expose them. Some of what this informant, (who later revealed part of his identity), told me was uncovered in court documents during Peer’s arrest last November. The rest, I’ll leave for another post.

Write me if you have a particular topic you want to see covered.

In the meantime, Happy St. Patty’s Day!