STAND. COM. REP. NO. 1332-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2467
                                     S.D. 2
                                     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 S.B. No.
2467, S.D. 2, entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to authorize and establish
procedures for the administrative forfeiture of materials, tools,
and other property owned by an unlicensed contractor, to clarify
that unlicensed contracting is an unfair and deceptive practice,
and to require unlicensed contractors to reimburse moneys to
consumers. 

     Testimony in support of this measure was submitted by the
General Contractors Association of Hawaii, Subcontractors'
Association of Hawaii, Construction Industry Legislative
Organization, Inc., Plumbers and Fitters Local 675, and the
Laborers-Employers Cooperation and Education Trust.

     Testimony in support of this measure, with proposed
amendments, was submitted by the Department of Commerce and
Consumer Affairs (DCCA), Building Industry Association of Hawaii,
Hawaii Construction Industry Association, Hidano Construction,
Inc., and Consumer Lawyers of Hawaii.

     Testimony in opposition to this measure was submitted by a
concerned citizen.

 
 
                                 STAND. COM. REP. NO. 1332-00
                                 Page 2

 

     Testimony commenting on this measure was submitted by the
Small Business Regulatory Review Board.

     Your Committees find that unlicensed contractor activity has
become a significant problem in this State, and that stronger
measures are needed to deter such activity.  Moreover, it is the
intent of your Committees that the forfeiture provisions of this
measure should only apply to unlicensed contractors whose pattern
of conduct demonstrates a continuing and wilful disregard of the
law.

     Upon consideration of this measure, your Committees have
amended this bill by replacing its contents with the substantive
provisions of H.B. No. 1933, H.D. 1, a similar bill that was
jointly heard and reported from your Committee on Consumer
Protection and Commerce and Committee on Judiciary and Hawaiian
affairs earlier in this session.

     After replacing the contents of this measure with the
substantive provisions of H.B. No. 1933, H.D. 1, your Committees
have:

     (1)  Limited the forfeiture provisions, by making them
          applicable only where the unlicensed contractor is or
          was a defendant or respondent in a separate complaint,
          case, citation, or lawsuit, filed with or by DCCA; and

     (2)  Removed the requirement that moneys or other
          consideration received by an unlicensed contractor be
          returned to the consumer who paid the money or provided
          the consideration.

     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 S.B. No.
2467, S.D. 2, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as S.B. No. 2467, S.D.
2, H.D. 1, and be placed on the calendar for Third Reading.


 
 
 
 
 
 
 
 
                                 STAND. COM. REP. NO. 1332-00
                                 Page 3

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

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