Saturday, April 10, 2010

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.”

Tuesday, April 6, 2010

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

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.

Monday, February 8, 2010

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!

Saturday, October 31, 2009

Locksmith dies of wounds received in robbery

Reporter Mariann Martin of the Jackson Sun has reported that retired Marine and locksmith Troy Mitchell, 44, has died leaving behind a wife and seven sons. To read the entire story, go to:
http://www.jacksonsun.com/apps/pbcs.dll/article?AID=2009910310305

Friday, October 30, 2009

Tennessee locksmith in critical condition after being robbed and shot in the face

The Jackson Sun has published a lengthy story on Jackson, TN locksmith, Troy Mitchell, who was shot in the face Wednesday at 10 a.m. while working on a car parked in an apartment complex. For more information and photos of the crime, Mitchell’s life, family and business, what police think happened, reactions from his fellow locksmiths and how to help his family, go to:

http://www.jacksonsun.com/article/20091029/NEWS01/910290304/Locksmith+shot++condition+critical

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.