STAND. COM. REP. NO. 2118
                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2414
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 2414 entitled: 

     "A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

     The purpose of this measure is to prohibit the contractors
licensing board from restoring a contractor's license if the
contractor has allowed worker's compensation insurance coverage
to lapse for more than sixty days.

     Testimony in favor of this measure was received from Hawaii
Building and Construction Trades Council, AFL-CIO.  Testimony in
opposition to the measure was received from the Contractors
License Board, Department of Commerce and Consumer Affairs.

     To obtain and maintain a license, a contractor must carry
workers' compensation insurance.  Circumvention is possible by
purchasing insurance for a couple of months to obtain a license
and then having the policy lapse.  This measure encourages
continued coverage by prohibiting the licensing board from
restoring a forfeited license if the contractor has allowed the
policy to lapse for more than sixty days.  Your Committee is in
agreement that with continued insurance coverage, workers injured
on the job are protected.

     Your Committee has amended this measure to correctly reflect
the language in the Hawaii Revised Statutes and to correct a
typographical error.


 
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                                   STAND. COM. REP. NO. 2118
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2414, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2414,
S.D. 1, and be referred to the Committee on Commerce and Consumer
Protection.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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