STAND. COM. REP. NO.  511

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1833

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1833 entitled:

"A BILL FOR AN ACT RELATING TO UNFAIR BUSINESS PRACTICES,"

begs leave to report as follows:

     The purpose of this bill is to prohibit the practice of mandating the use of certain surety producers or surety insurers by applicants when a bid, payment, or performance bond is required to ensure the performance of any real property construction contract.

     The Hawaii Surety Association, General Contractors Association of Hawaii, First Insurance Company of Hawaii, Ltd., King & Neel, Inc., and a concerned individual testified in support of this bill.  The Department of Commerce and Consumer Affairs provided comments.

     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. 1833 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

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

____________________________

ROBERT N. HERKES, Chair