STAND. COM. REP. NO. 743

Honolulu, Hawaii

, 2005

RE: H.B. No. 1542

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1542 entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

The purpose of this measure is to expedite the investigation of complaints against contractors by requiring the Regulated Industries Complaints Office (RICO) of the Department of Commerce and Consumer Affairs to:

(1) Initiate an investigation of a violation of the contractors law within seven working days of a complaint;

(2) Complete the investigation within 20 days; and

(3) Issue citations within seven working days after the completion of an investigation:

(A) To unlicensed contractors; or

(B) For any violation of the requirement that at least half of all craftsmen employed on a construction project by a specialty contractor, who are required to be licensed, are licensed.

Testimony in support of this bill was submitted by the International Brotherhood of Electrical Workers, Hawaii Building and Construction Trades Council, Building Industry Association-Hawaii, and Electrical Contractor's Association of Hawaii. RICO, the Hawaii Independent Auto Dealers Association, and Associated Builders and Contractors, Inc., submitted testimony in opposition.

Your Committee finds that this measure attempts to expedite the handling of complaints against contractors by setting specific deadlines for RICO, the agency that enforces the contractors law. Although your Committee recognizes the frustrations of the proponents of this bill, who have at times waited several months to have RICO complete their investigations, your Committee feels that the timelines set forth in this bill may not be feasible. Additionally, reducing RICO's ability to prioritize their investigations, as this measure does, may actually work against consumer interests.

In light of the above concerns, and to facilitate further discussion of this matter, your Committee has amended this bill by deleting references to the specific timelines within which RICO must initiate and complete investigations, and issue citations.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1542, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1542, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

____________________________

KENNETH HIRAKI, Chair