Requires pest control licensees who install, inspect, or monitor bait station termite systems to be bonded if system developer requires licensee to be authorized or certified by the developer; party aggrieved by licensee unsatisfactory performance may bring action on the bond.

A BILL FOR AN ACT

SECTION 1. The legislature finds that Hawaii has the worst termite problem in the nation, causing about $100,000,000 in damages in Hawaii each year. Nearly one half of the homes in Hawaii are infested with termites. A termite treatment system introduced in Hawaii approximately five years ago, the Sentricon Termite Colony Elimination System developed by DowAgro Sciences, uses bait stations installed in the ground around a residence and requires a licensed pest control operator to carefully inspect and monitor the bait stations on a monthly basis. If termites are detected, bait is placed in the stations to eliminate the termites. After a colony has been eliminated, the bait is replaced with monitoring devices and a pest control operator continues to inspect and monitor all stations. At least two similar baiting termite systems have been developed since Sentricon's introduction in 1995.

Generally, a bait station type of termite treatment may be installed, inspected, and monitored only by a state licensed pest control operator who must receive additional authorization or certification from the company that developed the bait termite system. Because these types of termite treatment systems take longer and are more labor intensive than other termite treatments, they are considerably more expensive. Hawaii residents often make full payment in advance to a pest control operator for a bait station system's installation, inspection, and monitoring. When a local pest control operator's authorization or certification is subsequently terminated by the system's developer, a Hawaii resident who has contracted with the now unauthorized or decertified local pest control operator may be unable to have the paid-for termite treatment completed without additional expense.

The legislature finds that licensed pest control operators are also required to be authorized or certified by developers of bait station termite treatment systems as a prerequisite to the licensed pest controller's installation, inspection, and monitoring of the developer's bait station termite treatment system. Accordingly, they should be required to post a performance bond to protect Hawaii consumers from incomplete performance of a termite system contract. When a pest control operator's certification or authorization issued by the system developer is subsequently terminated or revoked, the pest control operator is unable to fulfill the operator's obligation to install and monitor the system.

It is the purpose of this Act to require that pest control licensees who offer installation, inspection, and maintenance of any termite control system that requires the licensee to be certified or authorized by the system developer to post a performance bond with the pest control board.

SECTION 2. Chapter 460J, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§460J- Bond required for installation of bait station termite systems that require certification or authorization by system developer. (a) Any pest control licensee desiring to engage in the business of installing, inspecting, or monitoring any termite system that requires the licensee to be certified or authorized by the developer of the termite system shall submit to the pest control board a performance bond in the sum of not less than $25,000, executed by licensee as principal and by a surety company authorized to do business in the State.

(b) The bond shall be in the form as the pest control board may prescribe, conditioned upon the satisfactory installation, inspection, and monitoring of the termite system for which certification is required, and upon the right of any person injured or damaged by any default or unsatisfactory performance by the licensee to bring an action on the bond."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.