STAND

STAND. COM. REP. 3074

Honolulu, Hawaii

, 2004

RE: H.B. No. 2421

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 2421 entitled:

"A BILL FOR AN ACT RELATING TO THE LICENSING REQUIREMENTS FOR PRIVATE DETECTIVES AND GUARDS,"

begs leave to report as follows:

The purpose of this measure is to enhance consumer protection by clarifying and strengthening the licensing requirements for private detectives and guards.

The State Board of Private Detectives and Guards (Board) testified in support of this measure.

This measure converts the current two-tiered licensing system to a single-tiered system by establishing a definition for a detective agency or guard agency "firm" that includes all business entity forms, including a sole proprietorship, regardless of whether the sole proprietor has employees. Under this proposed change, a sole proprietorship will be required to pay a single licensing fee as a firm, rather than having to pay multiple licensing fees as a principal and agency.

Additionally, this measure codifies current licensing policies and practices by:

(1) Requiring a principal detective or guard to be an employee of the agency and to be responsible for the direct management and control of the agency, including the actions of employees;

(2) Requiring a licensee to have a history of honesty, truthfulness, financial integrity, and fair dealing;

(3) Clarifying the scope of the Board's disciplinary authority to include the denial, renewal, and reactivation of a license; and

(4) Clarifying that an appeal of a license denial is subject to chapter 91, Hawaii Revised Statutes.

Your Committee has amended this measure:

(1) To authorize the placement of a license on inactive status; and

(2) By making technical, nonsubstantive amendments to reflect preferred drafting style.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2421, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2421, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

		____________________________ RON MENOR, Chair