Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred S.B. No. 2295 entitled:

begs leave to report as follows:

The purpose of this measure is to repeal the requirement that principal detectives and principal guards must be residents of the State to qualify for licensure.

Additionally, this measure codifies the policies of the State Board of Private Detectives and Guards (Board) relating to principal detectives and principal guards.

Testimony in support of this measure was submitted by the State Board of Private Detectives and Guards. No testimony in opposition was submitted to your Committee.

The Department of the Attorney General has determined that the residency requirements contained in sections 463-5 and 463-7, Hawaii Revised Statutes, are unconstitutional because these provisions require residency as a condition of licensure. Your Committee finds that this constitutional defect necessitates the repeal of these residency requirements.

Your Committee also finds that consumer safety is ensured by the Board's policy that a principal who is a resident of another state or jurisdiction can qualify for licensure provided that the principal is fully responsible for the direct management and control of the agency or the agency's employees when detective or guard services are being provided in the State. Accordingly, your Committee finds that the codification of this Board policy is appropriate.

Last, your Committee notes that as an agency's business increases, the staffing requirements of the business and the offices of the business also increase. Your Committee finds that the Board's practice to allow an agency to employ more than one principal to aid in the direct management and control of the agency's employees ensures consumer safety and is appropriately codified by this measure.

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. 2295 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.