STAND. COM. REP. NO. 379
RE: S.B. No. 1104
Honorable Ronald D. Kouchi
President of the Senate
Thirty-First State Legislature
Regular Session of 2021
State of Hawaii
Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 1104 entitled:
"A BILL FOR AN ACT RELATING TO THE CONTRACTORS RECOVERY FUND,"
begs leave to report as follows:
The purpose and intent of this measure is to increase the monetary amount an injured homeowner may recover from the Contractor's Recovery Fund.
Your Committee received testimony in support of this measure from the Contractors License Board. Your Committee received testimony in opposition to this measure from the Subcontractors Association of Hawaii.
Your Committee finds the Contractors Recovery Fund was created to provide financial assistance to homeowners injured by the act, representation, transaction, or conduct of a licensed contractor. Currently, the maximum amount of recovery from the fund is $12,500 per contract, and the maximum payout per licensed contractor is $25,000. However, due to increased construction costs, homeowners are increasingly unable to recoup some of their financial losses from the fund. Accordingly, this measure increases the maximum recovery amount to $25,000 per contract, and the maximum payout per licensed contractor to $75,000.
As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1104 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,
ROSALYN H. BAKER, Chair