REPORT TITLE:
Unlicensed Contractors


DESCRIPTION:
Subjects the property of unlicensed contractors used in
unlicensed activities to criminal forfeiture.  Requires the
director of commerce and consumer affairs to determine whether
criminal forfeiture of the property of an unlicensed professional
should continue.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1472
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO UNLICENSED CONTRACTORS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The prevalence of unlicensed contractors in this
 
 2 State is a public safety hazard.  Licensure assures the public
 
 3 that the contractor so licensed has passed a written competency
 
 4 test, has the specified experience, has a history of honesty and
 
 5 fair dealing, has valid workers' compensation coverage for the
 
 6 contractor's employees, has personal injury and property damage
 
 7 insurance, and participates in the contractors recovery fund.
 
 8 These provisions protect the integrity of the profession and
 
 9 provide assurances to the public that their homes and businesses
 
10 will be built safely and competently.  Unlicensed contractors
 
11 often bilk the public by promising more than they can perform
 
12 competently, and then failing to complete the job or doing so
 
13 inadequately.
 
14      The purpose of this Act is to subject the property of
 
15 unlicensed contractors that was used in unlicensed activities to
 
16 criminal forfeiture proceedings.
 
17      SECTION 2.  Section 444-23, Hawaii Revised Statutes, is
 
18 amended by amending subsection (c) to read as follows:
 
19      "(c)  Except as provided in subsections (a), (b), (d), and
 

 
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 1 (e), any person who violates or fails to comply with this chapter
 
 2 shall be fined not less than $100 or more than $5,000 for each
 
 3 violation; provided that any person who violates section 444-9
 
 4 shall be fined:
 
 5      (1)  $500 or forty per cent of the total contract price,
 
 6           whichever is greater, for the first offense;
 
 7      (2)  $1,000 or forty per cent of the total contract price,
 
 8           whichever is greater, for the second offense; and
 
 9      (3)  $5,000 or forty per cent of the total contract price,
 
10           whichever is greater, for any subsequent offense[.];
 
11 and provided further that any person who violates section 444-9
 
12 shall forfeit to the State all tools, implements, armanentariums,
 
13 documents, materials, or any other property used by the person to
 
14 provide services for which a license is required under this
 
15 chapter.  The director, within forty-eight hours of notice of
 
16 seizure of tools, implements, armanentariums, documents,
 
17 materials, or any other property, shall render a determination
 
18 whether sufficient justification exists to warrant continuance of
 
19 forfeiture proceedings.  Upon issuance of final order or entry of
 
20 judgment finding that section 444-9 has been violated, the
 
21 director or circuit court judge may enter an order of forfeiture.
 
22 All proceeds generated from any forfeiture action under this
 
23 subsection shall be deposited in the special fund established
 

 
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 1 under section 26-9(o)."
 
 2      SECTION 3.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 4.  This Act shall take effect upon its approval.