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 S.B. No. 2896 entitled:

begs leave to report as follows:

The purpose of this measure is to revise licensing requirements for private detectives and guards.

Testimony in support of this measure was received from the Board of Private Detectives and Guards (Board).

Your Committee finds that a sole proprietor should be considered a firm or agency, regardless of whether or not the sole proprietor has any employees. This clarification would effectuate a reduction in a regulatory burden by establishing a one-tier licensing system rather than the current two-tier system, where a sole proprietor with employees pays two license fees.

Your Committee further finds that due to recurring questions the Board received regarding unofficial positions it has taken, there is a need to formalize and clarify such positions through statutory revisions. Such clarifications include making the principal detective or guard an employee of the agency, as well as responsible for the direct management and control of the agency and its employees; requiring that an applicant for a private detective or guard license possess a history of honesty, truthfulness, financial integrity, and fair dealing; and designate authority to the Board over the denial, renewal, and reactivation of licenses and make any appeal subject to Chapter 91, HRS.

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 S.B. No. 2896 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.