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Private Investigative and Security Board seeks fee increases to address backlog, hire staff and explore online licensing
Summary
The committee heard testimony on Senate Bill 2051 from the North Dakota Private Investigative and Security Board proposing higher licensing and training fees to fund a part‑time administrative assistant, clear application backlogs and investigate an electronic application system. The board is self‑funded and said reserves have been drawn down.
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The Senate Industry and Business Committee heard testimony on Senate Bill 2051 from the North Dakota Private Investigative and Security Board, which asked lawmakers to authorize higher maximum fees to cover operating shortfalls, hire part‑time administrative help and fund possible modernization of licensing systems.
John Shorey, executive director of the board, told the committee the bill would change categories of fees under the board's statutory authority and convert the private security training certificate from a one‑time $25 fee to an initial $60 fee with a $60 renewal and a $20 late fee. "The Board found this was not a very effective method of handling trainer and instructor renewals...we are processing these renewal applications currently with no fees assessed to cover Board staff time and expenses," Shorey said.
Shorey said the board is self‑funded, receives no annual appropriation, and has operated with a single staff member for roughly four years because of budget constraints. He said the board had used reserves to cover deficits and now needs to shore up recurring revenue to clear a backlog of renewals. The board's fiscal estimate included an approximate increased revenue of $217,000 per biennium if the statutory maximums in the bill are adopted; Shorey said planned expenditures would initially include hiring a part‑time administrative assistant to clear the application backlog.
Committee members asked about notice to applicants, how frequently the board meets (quarterly by statute, but monthly in practice), the composition of the licensee population, and whether the board had considered consolidating administrative tasks with another agency. Shorey said application processing is mostly administrative work and estimated roughly 95% of functions are office‑based; he said earlier efforts leaned on law enforcement or contracted investigators for field investigation work.
Industry representatives on the board testified in support. Steve Lundin, vice chairman of the Private Investigative and Security Board and a licensed licensee, said electronic renewal systems used in other states can reduce the administrative burden and accelerate renewals. "In Montana, they have moved to a completely electronic renewal application process. In Montana, it takes me about 15 minutes every year to renew my security agency license," Lundin said. He added the requested fee increases were in line with other states and urged the committee to support the board's request to restore service levels.
Committee members discussed the timing of any fee change relative to the board's September 30 renewal season and whether an emergency clause would be appropriate to make changes effective before the next renewal cycle. Chairman Barta left the hearing open for further discussion and committee work on the emergency clause and other details.
No committee vote on SB2051 was recorded during the hearing; committee leadership said they would continue discussions about timing and possible amendments before taking formal action.
