STAND. COM. REP. NO. 812

Honolulu, Hawaii

, 2001

RE: S.B. No. 263

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection and Housing and Judiciary, to which was referred S.B. No. 263 entitled:

"A BILL FOR AN ACT RELATING TO UNLICENSED CONTRACTORS,"

beg leave to report as follows:

The purpose of this measure is to discourage unlicensed activity as a contractor by:

(1) Requiring an unlicensed contractor to reimburse any money or consideration received for unlicensed work; and

(2) Providing that it is an unfair or deceptive practice subject to chapter 480, Hawaii Revised Statutes, for an unlicensed contractor to enter into a contracting arrangement.

Your Committees received testimony in favor of this measure from the Department of Commerce and Consumer Affairs, Subcontractors Association of Hawaii, Building Industry Association – Hawaii, and Consumer Lawyers of Hawaii.

Your Committees find that unlicensed contractor activity is prohibited to ensure public safety and compliance with labor, tax, and other laws. Current law prevents unlicensed persons from recovering on a contracting arrangement. This measure provides a further disincentive for unlicensed activity by requiring an unlicensed person to reimburse a contract deposit or other payment made pursuant to a contracting arrangement. In addition, by deeming unlicensed activity an unfair or deceptive practice, additional penalties may be imposed and other remedies are available.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 263 and recommend that it pass Third Reading.

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

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BRIAN KANNO, Chair

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RON MENOR, Chair