Date Requested:January 24, 2011
Time Requested:04:30 PM
Agency: Criminal Justice Services
CBD Number: Version: Bill Number: Resolution Number:
2011R1420 Introduced HB2787
CBD Subject: TRANSFER PRIVATE SECURITY SERVICES
FUND(S)
West Virginia Private Security Fund 15-14-5
Sources of Revenue
Special Fund
Legislation creates:
A New Program,A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The proposed legislation would Transfer licensure for private security services from the Secretary of State to the Division of Justice and Community Services in effect creating a new program and fund for these purposes.
    The proposed legislation would direct the Division of Justice and Community Services (DJCS) to implement some 20 articles ranging from the establishment of requirements for licenses and permits for private investigators; investigation details and alleged violations of the provisions of the article; and, maintain a registry of names.
    DJCS currently has no funds (general, special or otherwise) for the implementation of these responsibilities.
    
    This Fiscal Note will attempt to determine the fiscal impact on the State of West Virginia and the West Virginia Division of Justice and Community Services in administering this program pursuant to the guidelines established in the proposed legislation. For this determination to be made, the amount of funds currently produced from this program as it exists in its current form must be determined. Data provided from the WV Secretary of States Office indicates the following:
    
    There are approximately 200 private investigators holding individual licenses in WV
    There are approximately 50 security guards holding individual licenses in WV
    There are approximately 100 licensed private investigation firms in WV
    There are approximately 100 licensed security guard firms in WV
    There are approximately 100 licensed combined security guard/private investigation firms in WV
    
    The costs associated with this program in its current form at the WV Secretary of State’s Office appear to be limited to one FTE, plus the incidental costs of rent, utilities, postage and investigations. However, DJCS anticipates that the administration of the program would change significantly following the transfer to the DJCS. Additional resources would be placed for increased scrutiny of training courses for new businesses and for additional investigations of complaints as well as spot checks of businesses for compliance in the field.
    
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 100,000 261,540 261,540
Personal Services 60,000 181,540 181,540
Current Expenses 0 0 0
Repairs and Alterations 10,000 0 0
Assets 0 0 0
Other 30,000 80,000 80,000
2. Estimated Total Revenues 100,000 300,000 300,000
3. Explanation of above estimates (including long-range effect):
    REvenue projections are based on historical information provided by Secretary of State's Office
    Revenue:
     There are approximately 200 private investigators holding individual licenses in WV
    There are approximately 50 security guards holding individual licenses in WV
    There are approximately 100 licensed private investigation firms in WV
    There are approximately 100 licensed security guard firms in WV
    There are approximately 100 licensed combined security guard/private investigation firms in WV
    
    Funds for the administration of this program are generated from the following fee schedule:
    
     WV individual license: $150.00
     WV firm: $250.00
     WV Combined firm: $450.00
     Non resident individual: $550.00
     Non resident firm: $550.00
     Non resident combine firm: $1,050.00
    
    TOTAL funds generated: $300,000.00
    
    Expenses:
    The expectation is that DJCS would be more involved in setting and monitoring standards for training and compliance than hs been the historical situation:
    In order to implement/administer the West Virginia Private Security Licensing Program DJCS would require:
    
    Additional Staff Support (Personnel Services) Annually:
    
    Full-time Criminal Justice Specialist II approximate Market Rate Salary - $40,000.00
    Benefits (33%) - $13,200.00
    
    Investigator II approximate Market Rate Salary - $40,000.00
    Benefits (33%) - $13,200.00
    
    Secretarial Support approximate Market Rate - $26,000.00
    Benefits (33%) - $8,580.00
    
    Accounting Support – approximate Market Rate - $30,000 annually
    Benefits (33%) - $10,560.00
    
    TOTAL PERSONAL SERVICES ANNUALLY: $181,540.00
    
    Other expenses:
    Expenses necessary for routine functions of the program (i.e. mail outs, meetings, office supplies, proportionate office space, vehicle, maintenance, travel, etc., will also be required)
    
    Estimated: $40,000.00 annually.
    
    Expenses necessary for routine functions of the program (i.e. legal support, contracts, program development maintenance, database development maintenance, etc)
    
    Estimated: $40,000.00 annually.
    
    TOTAL OTHER EXPENSES ANNUALLY: $80,000.00
    
    * FY 2011 Transitional cost estimate does not identify a source of funding.
    
    


Memorandum
Person submitting Fiscal Note:
J. Norbert Federspiel
Email Address:
j.norbert.federspiel@wv.gov
    1. A definite date of transfer is desireable from a planning and implementation viewpoint. However, DJCS will need emergency rule-making authority prior to that time so licensees will know where to apply and how much the fees and other requirements will be.
    
    2. DJCS will need to either have the SOS provide information to expiring licensees or provide those notices with mailings on its own. This will require at least an initial transfer of the information in the Private Security data-base prior to implemenation date.
    
    3. DJCS will need a one time supplmental appropriation for fiscal 2011 to begin to lay the ground-work, prepare offices, hire and train qualified personnel as well as train current management for the new responsibilities. Our estimate is that $100,000 one time general fund supplemental could adequately cover transition costs.