Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred S.B. No. 2468, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to lower the contract price threshold at which a contractor's license is required, from $1,000 to $500.

Testimony in support of this measure was submitted by the Contractors License Board, the Department of Commerce and Consumer Affairs, Hawaii Flooring Association, Hawaii Roofing Contractors Association, Subcontractors Association of Hawaii, Harvey's Flooring, Fine Flooring, Inc., and Kaulana Roofing Corporation. The Hawaii Association of Realtors testified in opposition.

Your Committee finds that under current law, persons performing contracting work where the total project cost does not exceed $1,000, are not required to have a contractor's license. This "handyman" exemption was originally established to allow the undertaking for compensation of relatively simple repair or maintenance work without a license, and in 1992, the project cost threshold was $200.

Your Committee believes that the current $1,000 threshold allows unlicensed persons to undertake substantial, skilled work without complying with licensing standards, qualifications, and requirements established to protect the interests of consumers. Your Committee notes that consumers who are harmed by unlicensed contractors have no recourse under the contractor's licensing law.

Although your Committee supports the intent of this measure, your Committee has amended this bill by leaving the contract price threshold blank to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2468, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2468, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.