Bill Summary for Bill Number SB13-259

Date: 05/02/2013

Final
BILL SUMMARY for SB13-259

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View-->	Action Taken:
Adopt amendment L.016 (Attachment D). The motion p Adopt amendment L.017 (Attachment C). The motion p Refer Senate Bill 13-259, as amended, to the Commi	Pass Without Objection Pass Without Objection PASS

01:46 PM -- Senate Bill 13-259

Representative Melton, prime sponsor, presented Senate Bill 13-259 which concerns the regulation of private investigators by the Colorado Department of Regulatory Agencies (DORA). The bill creates a mandatory licensing program for private investigators, and a mandatory registration program for private investigator apprentices. Under current law, private investigators may seek a voluntary license from the state, but are not required to do so. Under the bill, the director of the Division of Professions and Occupations (division) in DORA is authorized to adopt rules, establish fees, and take disciplinary actions. Beginning March 1, 2014, only those persons who meet certain requirements and have been issued a state license may use the term "licensed private investigator" or "licensed private detective." Similar title protection is given to persons who register with the division as a "registered private investigator apprentice," or a "registered private detective apprentice," and the person works under the direct supervision of a licensed professional. Both private investigators and apprentices must maintain a surety bond in an amount determined by the director of the division by rule. Conducting private investigations without a state-issued license or without registering as an apprentice is punishable as a class 2 misdemeanor for the first offense and as a class 1 misdemeanor for second and subsequent offenses. The bill requires that the director of the division appoint a 5-member advisory committee to make recommendations concerning the regulation of private investigators and apprentices. The advisory committee may receive per diem and seek reimbursement for expenses. The regulatory program and the advisory board are repealed, effective September 1, 2012, and following a sunset review.

Representative Melton provided opening comments to the bill, and stated that under current law anyone can act as a private investigator (PI), whether they have prior experience as a PI or not. He stated that the bill addresses consumer protection issues and public safety concerns. He stated that the bill will keep jobs in Colorado. Representative Melton responded to questions from the committee and provided a handout (Attachment A).

13HseBus0502AttachA.pdf

The following persons testified:

01:59 PM -- Eugene Ferraro, representing himself as a PI, testified in support of the bill. Mr. Ferraro stated that he holds a license in Colorado because his clients require it of him. He stated that he supports the bill because it contains a component for consumer protection. He added that he has been a PI for 30 years and has seen all kinds of inappropriate behavior from others who claim to be PIs. Mr. Ferraro responded to questions from the committee.

02:13 PM -- John Barry, representing himself, testified in support of the bill. Mr. Barry stated that registration of PIs is a very important issue. He stated that his family was the target of someone claiming to be a PI, and that this person harassed, abused, and assaulted his family members. He stated that the man carried a weapon and a badge, and that he continues to do investigations even though a judge has ruled that he is not acting within his rights. Mr. Barry responded to questions from the committee.

02:19 PM -- Dan Anglin, representing the Colorado Society of Private Investigators (society), testified in opposition to the bill. Mr. Anglin stated that the society opposes the bill because of the lack of stakeholder meetings conducted. He stated that the society appreciates the intent of the bill but believes that more work needs to be done on the bill. Mr. Anglin responded to questions from the committee.

02:36 PM -- Stephen Pease, representing United Investigative Associates, testified in opposition to the bill. He discussed license requirements in other states. Mr. Pease responded to questions from the committee.

02:46 PM -- Rick Johnson, representing himself as a PI, testified in opposition to the bill. He stated that he opposes the bill because of the cost of licensing.

02:53 PM -- Robert Oblock, representing the Colorado Independent Investigators Association, testified in opposition to the bill. Mr. Oblock stated that he is concerned that the cost for the license will rise as a result of the bill.

02:55 PM -- Ron Jamison, representing the society, testified in opposition to the bill. He stated that he believes in licensing, but that the bill is a joke and that the costs imposed by the bill are of concern. He stated that during the stakeholder process, he was never asked to comment on the bill and he had to find information about it on the internet.

02:59 PM -- Glenn Walls, representing himself as a retired special agent, testified in opposition to the bill. He stated that the bill is about people wanting to spread around the wealth. He stated that private investigators are a self-policing community and that when someone misbehaves, it is known to the community. He stated that some PIs want to get a license so that they do not have to use their experience to get jobs. He stated that the bill is unnecessary.

03:03 PM -- Jan Dell Payne, representing herself, testified in opposition to the bill. Ms. Payne stated that registration and background checks do not guarantee that PIs meet professional standards or are trustworthy. She stated that the bill does not keep dishonest people from operating as PIs. Ms. Payne responded to questions from the committee.

03:06 PM -- Mark Good, representing himself, testified in opposition to the bill. He stated that he became informed of the bill a week ago. He stated that the bill will infringe on his ability to hire employees when he needs to, since the license will take up to 60 days to be granted. Mr. Good responded to questions from the committee.

03:12 PM -- Brian Pritchard, representing DORA, testified on the bill. Mr. Pritchard stated that DORA is neutral on the bill. Mr. Pritchard stated that the practice that is in place now is not working. He stated that it is very difficult to project numbers, fees, and ongoing costs for the licensure program. He responded to questions from the committee.

03:24 PM -- Dean Beers, representing himself, testified in support of the bill. He provided a handout to the committee (Attachment B). He stated that he and his wife are licensed PIs in Colorado. He stated that other states often require licenses, and that if all PIs are required to be licensed, DORA would have the ability to prevent persons who have acted inappropriately in other states from obtaining a license in Colorado.

13HseBus0502AttachB.pdf

03:27 PM -- Ellis Armistead, representing Heartland Investigators in Colorado, testified in support of the bill. Mr. Armistead stated that he has been a PI for 22 years and that he also had an 18 year career in law enforcement. He stated that he has personally encountered convicted felons who are working as PIs. He stated that PIs work with sensitive and confidential information provided by clients, and that clients should be assured that their PI has been vetted and is not a criminal. He stated that the bill is designed to protect Colorado's citizens from unscrupulous people.

03:31 PM -- Tan Smyth, representing herself as a PI, testified in support of the bill. Ms. Smyth provided examples of reported complaints about those presenting themselves as PIs. She gave examples of PIs that have sexually assaulted others, and those who have taken part in racketeering, bestiality, and theft. Ms. Smyth responded to questions from the committee.

03:36 PM -- Braiyon Logan, representing Stealth Inquisitions, Inc., testified in support of the bill. He said that the bill will allow consumers to report and review complaints against PIs and will provide a check to see if certain persons should be allowed to do business as a PI.

03:37 PM -- Ryan Johnston, representing himself as a PI, testified in support of the bill. He stated that self-policing among PIs does not happen. He said that DORA will be able to tell how many bad PIs are in the state once licensing is required.

03:40 PM -- Julie Young, representing herself as a PI, testified in support of the bill. She stated that clients often provide a retainer to the PI, but have no recourse if the PI goes missing. She said that consumers have no recourse for fraud or scams if the PI is not licensed.

03:42 PM -- Robert Orozco, representing American Private Investigator, testified in support of the bill. Mr. Orozco provided background information on his work and stated that people who call him want to be assured that their information is confidential and that they can trust him. He stated that, since licensing in Colorado is voluntary, it is possible for people to be defrauded by persons posing as investigators.

03:44 PM -- D.J. Himsteet, representing himself, testified in support of the bill. Mr. Himsteet provided background information on his company. He stated that the bill provides consumer protection by requiring that those who want to represent themselves as PIs have a license.

03:46 PM -- Stason Ikenouya, representing himself, testified in support of the bill. He stated that Colorado needs experienced investigators who have integrity. He stated that there are no standards currently for PIs and that anyone can represent himself or herself as a PI. He stated that the bill starts the building process so that there are minimum standards for PIs.

03:48 PM -- Chris Bray, representing himself and the Professional Private Investigators Association of Colorado, testified in support of the bill. He spoke to earlier testimony about stakeholder involvement with the bill. He responded to questions from the committee.

04:07 PM

Representative DelGrosso distributed amendment L.017 (Attachment C) and amendment L.016 (Attachment D) and explained the changes that the amendments make to the bill.

13HseBus0502AttachC.pdf

13HseBus0502AttachD.pdf


BILL:	SB13-259
TIME:	04:07:43 PM
MOVED:	DelGrosso
MOTION:	Adopt amendment L.017 (Attachment C). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	DelGrosso
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Kraft-Tharp
	Williams

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB13-259
TIME:	04:15:55 PM
MOVED:	DelGrosso
MOTION:	Adopt amendment L.016 (Attachment D). The motion passed without objection.
SECONDED:	Exum
		VOTE
	DelGrosso
	Exum
	Hamner
	Holbert
	Navarro
	Nordberg
	Rosenthal
	Ryden
	Szabo
	Kraft-Tharp
	Williams

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB13-259
TIME:	04:18:32 PM
MOVED:	Hamner
MOTION:	Refer Senate Bill 13-259, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:	Williams
		VOTE
	DelGrosso	No
	Exum	Yes
	Hamner	Yes
	Holbert	No
	Navarro	No
	Nordberg	No
	Rosenthal	Yes
	Ryden	Yes
	Szabo	No
	Kraft-Tharp	Yes
	Williams	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS