SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE S TATEMENT OF ESTIMATED FISCAL IMPACT WWW.RFA.SC.GOV • (803)734-3793 This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation. Page 1 of 3 S. 0269 Fiscal Impact Summary This bill specifies that a public school district with more than 15,000 students may use security personnel who are armed or have been delegated arrest authority on the school premises if the district obtains a propriety security business license from the State Law Enforcement Division (SLED). The bill also requires SLED to implement certain training requirements for security personnel on school premises and specifies that school district security officers must be recertified every two years. The bill further specifies that school districts are not exempt from certain private security and investigative agency license requirements. This bill will have no expenditure impact on the S.C. Department of Education (SCDE). The department indicates that it can manage the provisions of the bill with existing appropriations. This bill will have no expenditure impact on state agency schools. The Governor’s School for Agriculture at John de la Howe, the Governor’s School for the Arts and Humanities, the Governor’s School for Science and Mathematics, the School for the Deaf and the Blind, and the Wil Lou Gray Opportunity School indicate that they can manage the provisions of the bill with existing appropriations. SLED indicates that the bill will increase the agency’s expenses by $132,320 in FY 2025-26. Of this amount, $124,320 is for 2.0 additional FTEs to manage the increase in applications for proprietary security business licenses from qualifying school districts, and $2,000 is for training and travel costs. The remaining $6,000 is for one-time equipment costs for the new FTEs. Expenses will decrease to $126,320 each year thereafter for the FTEs and training and travel costs. SLED reports that the agency will request a General Fund appropriation increase to fund the expenses. This bill may increase Other Funds revenue of SLED by an undetermined amount due to the potential increase in propriety security business license fees collected by the agency. Based on information from SLED, the cost of a propriety security business license fee is $350. The total amount will depend upon the number of districts that obtain a proprietary security business license. The overall expenditure impact of this bill on the local school districts will vary. SCDE surveyed the seventy-two regular school districts and three charter school districts and received responses Bill Number: S. 0269 Introduced on Januar y 28, 2025 Subject: Private Security Services in Public Schools Requestor: Senate Education RFA Analyst(s): Bryant Impact Date: March 25, 2025 Page 2 of 3 S. 0269 from twenty-two districts. Twenty of the responding districts indicate that the bill will have no expenditure impact. The remaining two districts indicate that if they choose to use security personnel who are armed or have been delegated arrest authority on the school premises, this will increase expenses by an amount ranging from $2,735 to $20,000 to obtain a propriety security business license, hire security officers, provide for SLED training and recertification, and purchase equipment. Explanation of Fiscal Impact Introduced on January 28, 2025 State Expenditure This bill specifies that a public school district with more than 15,000 students may use security personnel who are armed or have been delegated arrest authority on the school premises if the district obtains a proprietary security business license from SLED. School districts remain obligated to use school resource officers as otherwise provided by law. This bill also requires SLED to implement certain training requirements for security personnel on school premises and specifies that school district security officers must be recertified every two years. The bill further specifies that school districts are not exempt from certain private security and investigative agency license requirements specified in Title 40, Chapter 18. S.C. Department of Education. This bill will have no expenditure impact on SCDE. The department indicates that it can manage the provisions of the bill with existing appropriations. State Agency Schools. This bill will have no expenditure impact on state agency schools. The Governor’s School for Agriculture at John de la Howe, the Governor’s School for the Arts and Humanities, the Governor’s School for Science and Mathematics, the School for the Deaf and the Blind, and the Wil Lou Gray Opportunity School indicate that they can manage the provisions of the bill with existing appropriations. State Law Enforcement Division. SLED indicates that the bill will increase the agency’s expenses by $132,320 in FY 2025-26. Of this amount, $124,320 is for 2.0 additional FTEs to manage the increase in applications for proprietary security business licenses from qualifying school districts, and $2,000 is for training and travel costs. The remaining $6,000 is for one-time equipment costs for the new FTEs. Expenses will decrease to $126,320 each year thereafter for the FTEs and training and travel costs. SLED reports that the agency will request a General Fund appropriation increase to fund the expenses. State Revenue This bill specifies that a public school district with more than 15,000 students may use certain security personnel on the school premises if the district obtains a propriety security business license from SLED. The bill also requires school district security officers to be recertified by SLED every two years. This bill may increase Other Funds revenue of SLED by an undetermined amount due to the potential increase in propriety security business license fees and security officer registration __________________________________ Frank A. Rainwater, Executive Director DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT. Page 3 of 3 S. 0269 certificate fees collected by the agency. Based on information from SLED, the cost of a propriety security business license fee is $350. The total amount will depend upon the number of districts that obtain a proprietary security business license and the number of security officers requiring recertification each year. Local Expenditure This bill specifies that a public school district with more than 15,000 students may use security personnel who are armed or have been delegated arrest authority on the school premises if the district obtains a proprietary security business license from SLED. For reference, sixteen regular school districts and two charter school districts have more than 15,000 students in FY 2024-25. The overall expenditure impact of this bill on the local school districts will vary. SCDE surveyed the seventy-two regular school districts and three charter school districts and received responses from twenty-two districts. Twenty of the responding districts indicate that the bill will have no expenditure impact. The remaining two districts indicate that if they choose to use security personnel who are armed or have been delegated arrest authority on the school premises, this will increase expenses by an amount ranging from $2,735 to $20,000 for obtaining a propriety security business license, hiring security officers, SLED training and recertification, and equipment costs. Local Revenue N/A