Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 1542, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the investigation of a complaint against a contractor within an unspecified number of working days and completion of that investigation within an unspecified number of working days.

This measure also requires investigators to issue citations for individuals who are practicing as unlicensed contractors or unlicensed craftsmen in violation of the law within an unspecified number of days of the completion of the investigation.

Testimony in support of this measure was submitted by the Building Industry Association-Hawaii, the Hawaii Building and Construction Trades Council AFL-CIO, and the International Brotherhood of Electrical Workers Local Union No. 1186. Testimony in opposition to this measure was submitted by the Department of Commerce and Consumer Affairs (DCCA).

Your Committee finds that the expeditious investigation of unlicensed contracting is necessary to abate the unlicensed activity and to protect consumers and the public. Your Committee understands that construction projects are time sensitive; therefore, it is imperative that investigations regarding complaints against contractors must be initiated and completed in a timely manner. This measure proposes to address this issue by requiring the DCCA to conduct an investigation of a complaint of unlicensed contracting and the completion of that investigation both within an unspecified number of working days of the complaint's receipt.

Additionally, this measure requires an investigator who determines that a person has engaged in unlicensed contracting or as an unlicensed craftsman to issue that person a citation within an unspecified number of working days after the investigation is completed.

Although no specified number of days are included within the measure, your Committee believes that this measure should continue to progress throughout the session as further discussion on the matter will eventually produce timely and reasonable requirements that will expedite the investigation of complaints.

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 H.B. No. 1542, H.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.