Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2895, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require a pest control operator to maintain continuous workers' compensation and liability insurance coverages for license renewal.

Additionally, this measure:

Testimony in support of this measure was submitted by the State Pest Control Board (board) and the Hawaii Pest Control Association.

Your Committee finds that, although not specifically mandated by law, subsumed within the requirements that a pest control operator obtain workers' compensation and liability insurance coverages is the intent that such coverages be continuously maintained in order to preserve continued licensure. Your Committee further finds that the maintenance of workers' compensation and liability insurance coverages are so essential to continued licensure that failure to maintain such coverages should result in the automatic forfeiture of the pest control operator's license.

Furthermore, as it is the responsibility of the pest control operator to maintain compliance with all licensure requirements, the onus should be placed upon the pest control operator to notify the board of the termination or cancellation of any insurance coverage or be subject to disciplinary action. Your Committee also recognizes that, based upon the testimony submitted, it is currently difficult to obtain liability insurance; therefore, it is necessary to institute procedures for the restoration of a forfeited license that will protect the rights of a pest control operator as well as authorize the board to properly regulate and enforce requirements within the industry. To further assist the board in controlling the industry, the board should also be tasked with serving as the repository for the filing of proof of liability and workers' compensation insurance coverages for pest control businesses.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2895, S.D. 1, and recommends that it pass Third Reading.