Showing posts with label ALOA. Show all posts
Showing posts with label ALOA. Show all posts

Thursday, May 27, 2010

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.

Tuesday, May 25, 2010

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




Monday, May 24, 2010

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!

Friday, May 7, 2010

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.

Saturday, March 27, 2010

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.

Tuesday, October 20, 2009

Locksmiths should get listed with ALOA, LegalLocksmiths.com and/or local associations

I significantly changed my website, http://www.find-a-legit-locksmith.com/, this week by removing all the locksmith listings and I’ll eventually take the site totally down. I had originally created the site by listing, for no charge, all the locksmiths that had registered for a business license. Any locksmith who wanted to add their phone number and website could pay an annual fee.

I had assumed the “locksmith” scammers had not and would not bother to get a business license. I was wrong.

According to Larry Friberg, co-founder of LegalLocksmiths.com, phony locksmiths are now obtaining business licenses and then attempting (unsuccessfully) to use them to gain membership with his organization. Friberg and his partner do a comprehensive background check on those who apply and lists those who qualify.

Since I didn’t have the time or resources to verify how credible my listings were, I removed them and linked both my site and my blog to LegalLocksmiths.com at http://www.legallocksmiths.com/ and ALOA’s (Associated Locksmiths of America) site which lists locksmiths at http://www.findalocksmith.com/.

While LegalLocksmiths.com charges $25 for membership (which pays for the background check), the only benefit is getting listed on their website and, at the same time, supporting their mission to combat this national scourge of phony locksmiths.

According to ALOA’s website, membership costs $195 annually plus a $50 application fee. Membership includes a free bond, discounts on services, education, supplies and conference fees and a monthly magazine. While ALOA’s background check may not be as extensive the one as LegalLocksmiths.com does, they do require a recommendation from a sponsoring locksmith member. ALOA’s fees may be out of reach for the average locksmith right now especially while locksmiths endure the double-whammy of a down economy and losing significant market share to phony locksmiths. Still, locksmiths should consider membership.

Local locksmith associations also do a great job backgrounding and listing legitimate locksmiths. Unfortunately, most of the association websites I’ve seen are not user-friendly so it’s difficult for the average consumer to easily find a locksmith. In addition, most association names are not SEO-friendly (Search Engine Optimization) which means associations don’t show up early on an Internet search. ALOA and LegalLocksmiths.com have both user-friendly and SEO-friendly websites.

Discouraging news

Friberg, a former law enforcement officer, and his partner, by the way, are really sticking their necks out by standing up to this major threat to the locksmith industry. According to published news reports, local and federal police agencies believe the phony locksmiths (hired by call-center owners), are connected to organized crime, started in Chicago, have been entrenched in the U.S. for more than 12 years and are here for the long haul. It's a very serious situation. Local law enforcement are helpful and some state attorney generals are beginning to file lawsuits against the call-center owners, but federal agencies such as the FBI and Homeland Security are pouring resources into terrorist threats much to the neglect of domestic problems. Unfortunately, anyone who does stand up to this scourge can expect to be either sued, face the threat of being sued, receive death threats or all of the above.

According to news stories, there are about 6 to 8 call centers around the country including one in Florida. (See my April 5th blog post “Missouri Attorney General sues Florida Locksmith Company.”) It’s estimated that these call centers each average 400+ JOBS A DAY!!! That is more than 12,000 per month and is a HUGE loss to local locksmiths around the state.

The best thing locksmiths can do, besides educating the public, is to encourage those who are on the frontlines of the battle such as LegalLocksmiths.com by supporting them and, of course, pray for their safety along with anyone else who stands up against the scamming call-center owners. The $25 a year fee is not too much to ask to support them while at the same time enhancing one’s own credentials. Locksmiths should, of course, get involved with their local and national associations.

Saturday, September 26, 2009

Can extended code classes open new markets for locksmiths?

The Door and Hardware Institute (DHI) has been holding a convention in the Orlando/Kissimmee area for the last two weeks. I went mainly to find some answers about the fire and life safety code classes taught by the institute.

Code knowledge is an important topic since it’s just good business sense for locksmiths who do commercial work. No one wants to be responsible for someone’s death or injury due to improper hardware they installed.

In addition, state legislators developing locksmith laws have been including continuing education classes and specifying classes in fire and life safety codes knowledge.

DHI’s Director of Technical Services Keith E. Pardoe wrote a guide for AHJs (Authority Having Jurisdiction) entitled, Swinging Fire Doors with Builder’s Hardware. In it he writes that codes are documents designed to ensure buildings are constructed and properly maintained to protect the lives and property of occupants in all types of facilities, be it residential, commercial, industrial, institutional or recreational.

DHI offers a separate certification to become a fire door assembly inspector (FDAI) in a program that encourages annual inspections. Based on an 80-point inspection requirement, DHI provides those who complete the class with an Inspection Report form to use when doing inspections. Building owners will be able to keep the paperwork on file to show they are in compliance with code requirements.

Pardoe, who I had the opportunity to interview at the convention, believes it would be a good fit for locksmiths. After all, who better to first alert a customer to a fire and life safety issue than a locksmith instead of any number of AHJs including building or fire inspectors or code enforcement officers?

According to Pardoe, only about 5 or 6 locksmiths per year out of 600 annual participants take any of their classes. Those who do generally take classes related to electrified hardware instead of a code class. DHI’s 24-hour class Using Codes and Standards cost $1,050 for members and $1,305 for non-members. The fire door assembly inspector class costs $2245 for members and $2745 for non-members. Prerequisites to taking the class are 4 other DHI courses. Initial membership in DHI for individuals is about $500 for various fees, but only $250 per year to renew.

The least expensive way for commercial locksmiths to obtain this necessary knowledge is through a local locksmith association. Local associations can contact Associated Locksmiths of America (ALOA) Education Coordinator Kerry Eppler to set up their 8-hour code training session. Eppler said ALOA acts as a liaison for locksmith associations by providing qualified trainers and materials. When asked about pricing, she said, ALOA charges the association for the trainer’s fee, plus travel and accommodations and course materials. Prices can vary according to those expenses. The locksmith association, in turn, sets the price for the course contingent upon what ALOA charges and any other expenses the association may incur such as renting facilities, etc. Eppler gave an example of an upcoming 8-hour fire and life safety course for the New Mexico Locksmith Association. The class costs $150 for members ($170 for non-members), plus $45 for the book.

ALOA’s 8-hour class no doubt meets the necessary criteria for continuing education and knowledge that an average commercial locksmith would need. Pardoe’s mention, however, of the FDAI certification may open up an untapped market for locksmiths who invest the time and money to acquire the certification.

For more information about DHI’s programs, go to http://www.dhi.org/. For more information about ALOA’s programs, go to http://www.aloa.org/.

Thursday, July 16, 2009

Oregon next state to lock out 1-800-LocksmithScammers

Oregon Governor Ted Kulongoski, (D), has about 30 days to sign into law a bill that will create a Board of Locksmiths to oversee and license the state’s estimated 2,000 legitimate locksmiths and to combat untrained sub-contractors from posing as such.

The sub-contractors, working for call centers, defraud consumers with shoddy workmanship and bait-and-switch schemes. They have overwhelmed the phone directories and Internet with hundreds (and thousands) of bogus business listings. Unknowingly consumers have called the imposters thinking they were calling a legitimate locksmith.

According to the bill, the Board would be established within the Construction Contractors Board (CCB) that now licenses locksmith businesses but not individuals. The new Board would adopt rules concerning the passing of a competency test, background and fingerprint checks, continuing education standards, fees and penalties for violations – all with a deadline of July 1, 2010. Until then the CCB must make locksmith certification available no later than Jan. 1, 2010.

Ernie Blatz is licensed by the CCB. He is also the President of the Pacific Locksmith Association (PLA), owner of Ernie’s Locks and Keys in The Dalles and has been in the field more than 20 years. He said the PLA has a membership of 70-80 locksmiths from 4 states: Oregon, (South West) Washington, Idaho and (Northern) California.

Blatz said one problem with being licensed with the CCB was that all the continuing education is geared toward contractors. “We just want to be able to get accredited classes through the Associated Locksmiths of America (ALOA),” he said.

“It wasn’t just the 1-800-LocksmithScammer that was the problem,” said Republican State Representative John Huffman, who sponsored the bill. “There are very serious breaches of security going on and the consumer doesn’t even realize there is a problem.”

Huffman cited the following case relayed to him by a locksmith who had been hired to rekey a 12-unit apartment complex. For many years, the manager rekeyed and maintained the lock system at the complex. The locksmith, however, discovered the pinning system was flawed. Every laundry room key, which the tenants each had, was actually also a master key to the entire complex.

Huffman feels confident the governor will sign the bill, if not; the process to pass a locksmith law will begin next March 2010 when the Oregon legislature meets again.

As of today’s post the bill was not signed. However, Jillian Schoene, the Governor’s Deputy Communications Director, said she expected the bill to be signed within the next few weeks.

Thursday, April 30, 2009

National locksmith association changes ethics code - almost

When the Associated Locksmiths of America (ALOA) issued a press release Tuesday to explain a recent change in their Code of Ethics concerning deceptive advertising, I began to wonder exactly how many of their 8,000 national members were violating the code. The previous code stated that members should "abstain from using improper or questionable methods of soliciting patronage..."

According to the press release, the new language added directs all members to “advertise and conduct business in a non-deceptive manner.”

ALOA President Ken Kupferman said the association does receive a lot of complaints daily but not about members. He wasn’t certain if members were using deceptive advertising practices, but said the change puts any members doing so on notice.

“We don’t want to be associated with people like that,” Kupferman said. He suggested I speak to Attorney Tim McMullen, ALOA’s legislative manager who handles complaints.

McMullen could cite only one case – a woman in Washington, D.C. who called to complain that a member locksmith was using her address on his website and wanted it removed. McMullen said they notified the member and they are waiting on a response.

One out of 8,000 members. I’d say that’s a pretty good record in anyone’s book.

To see the entire code go to: http://aloa.org/pdf/ethicode.pdf, but wait a few days. The change hasn’t made it to the website yet.