May 15, 2009- Santa Fe, NM- I feel like I am the bearer of bad news or at least the teller of bad news about New Mexico Security, Regulation and Licensing Division (RLD) and the Private Investigator's Board. Is it fair to allow illegal and unlicensed security companies to compete with those companies who take all of the necessary (and costly) steps to stay in compliance?
Regulation and Licensing Division (RLD) is responsible for enforcing license, compliance and regulation. They levy the industry with fees and have a staff. The Superintendent appoints and advisory Board (Private Investigator Board).
It seems like RLD is making me out to be the bad guy for reporting all of this stuff but it is obvious to me by the response to this blog and all of the conversations that I have had with like-minded people; I am not the only person mad about the current state of affairs. Do I make complaints? Yes. Why doesn't the state do anything about them or the complaints that others make? Real people, employees and security consumers are getting hurt financially. Why does RLD exist if not to enforce their own rules? Shouldn't RLD be on the side of legal, compliant businesses? Should they look the other way and act like there is no problem other than my complaints?
Some people don't understand how competing with an unlicensed or illegal company hurts licensed, complaint security businesses and their employees. See below:
Illegal and or unlicensed security companies have less to worry about...
- Not pay but collect sales tax- 7% (gross sales)
- Not pay but collect FICA, Medicare, State and Federal Withholding from employees- 10% or more (wages)
- Security company not match most of the above taxes- 7% (wages)
- Not have WC insurance- 8-13% (wages)
- Not license guards, company, have CGL insurance, vehicle insurance, bonds or other things required to do legal business (large $$ savings!)
- minimum of 32% (probably a lot more) savings, thus ability to lower bids to ridiculous levels
As an example, in 2002 when we first started doing security our minimum bid for a unarmed standing guard was $16.50 per hour. In 2009, many illegal or unlicensed companies that we bid against are bidding $12-13 hr. How could a company do that while paying their guards $9-10 hr. and paying all taxes, etc?
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