STAND. COM. REP. NO. 669-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1933
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Consumer Protection and Commerce and
Judiciary and Hawaiian Affairs, to which was referred H.B. No.
1933 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to strengthen the contractor
licensing law and thereby provide the public with:

     (1)  Assurance, under licensure, of a contractor's
          competency, honesty, and possession of liability
          insurance; and

     (2)  The protection afforded by a fully funded Contractor's
          Recovery Fund.

This bill enhances the ability of the Regulated Industries
Complaints Office of the Department of Commerce and Consumer
Affairs (DCCA) to enforce the contractor licensing law, and
establishes a significant deterrent to unlicensed contracting by
providing that all tools, implements, documents, and other
property owned or used in unlicensed contracting activity are
subject to forfeiture.

     Your Committees received testimony in support of this
measure from DCCA, Consumer Lawyers of Hawaii (CLH), Hidano
Construction, Building Industry Association of Hawaii, CO-HA

 
 
 
                                 STAND. COM. REP. NO. 669-00
                                 Page 2

 
Builders, Inc., Subcontractors Association of Hawaii, and General
Contractors Association of Hawaii.  DCCA and CLH suggested
amendments.

     Your Committees have adopted the amendments developed by
DCCA in cooperation with the Department of the Attorney General.
As amended this bill:

     (1)  Better defines the administrative procedures and
          judicial review applicable in a forfeiture case;

     (2)  Specifies the authorized disposition of property
          forfeited to the State;

     (3)  Requires that moneys or other consideration received by
          an unlicensed contractor be returned to the consumer
          who paid the money or provided the consideration; and

     (4)  Clarifies that unlicensed contracting is an unfair and
          deceptive act or practice under chapter 480, Hawaii
          Revised Statutes.

     Technical, nonsubstantive amendments have also been made for
clarity, consistency, and style.

     As affirmed by the records of votes of the members of your
Committees on Consumer Protection and Commerce and Judiciary and
Hawaiian Affairs that are attached to this report, your
Committees are in accord with the intent and purpose of H.B. No.
1933, as amended herein, and recommend that it pass Second
Reading in the form attached hereto as H.B. No. 1933, H.D. 1, and
be placed on the calendar for Third Reading.

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



_______________________________    _______________________________
ERIC G. HAMAKAWA, Chair            RON MENOR, Chair