Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 2358, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a process for resolving construction disputes that provides a contractor with the opportunity to repair a construction defect prior to the dispute proceeding to litigation.

Testimony in support of this measure was received from the Judiciary, Insurance Division of the Department of Commerce and Consumer Affairs, Building Industry Association-Hawaii, Coalition of Hawaii Engineering & Architectural Professionals, General Contractors Association of Hawaii, Subcontractors Association of Hawaii, Paul Louie & Associates, Inc., Hidano Construction, Inc., T-2 Construction, Actus Lend Lease, and Land Use Research Foundation of Hawaii. Testimony in opposition was received from the Community Associations Institute (Hawaii Chapter) and Consumer Lawyers of Hawaii.

Your Committee finds that this measure provides homeowners and others suffering from construction defects in their residences and premises with a speedy and precise resolution to their problems by implementing important changes in the way builders are able to meet the needs of owners. This measure enables the resolution of claims for construction defects without incurring the high costs of litigation. Your Committee further finds that this measure would bring down the costs of liability insurance for contractors while protecting the rights and interests of Hawaii's citizens.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2358, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2358, S.D. 2.