STAND. COM. REP. NO. 960

Honolulu, Hawaii

RE:    S.B. No. 1425

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Commerce, Consumer Protection, and Affordable Housing, to which was referred S.B. No. 1425, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTOR LICENSING REQUIREMENTS DURING A STATE OF EMERGENCY OR DISASTER,"

begs leave to report as follows:

     The purpose of this measure is to ensure an adequate supply of licensed contractors is available to perform necessary repairs and reconstruction work during a state of emergency or disaster by authorizing the Contractors License Board to issue emergency contractor licenses under certain circumstances and subject to certain qualifications.

     Written comments in support of this measure were submitted by the Department of Defense and State Farm Insurance Companies.  Written comments were submitted by the Contractors License Board and the Subcontractors Association of Hawaii.

     Your Committee finds that the after effects of hurricanes Katrina and Rita demonstrated the effects of having a short supply of skilled and licensed contractors.  Currently, if a natural disaster or other state of emergency were to arise in Hawaii, the demand for skilled and licensed contractors may exceed the actual supply.  This might lead to people being scammed by unlicensed and unskilled individuals.  The intent of this measure is to protect consumers by allowing out-of-state contractors, who are licensed in other jurisdictions and subject to other qualifications, to obtain emergency contractor licenses in order to perform necessary repair and reconstruction work during a state of emergency or disaster.

     Your Committee has amended this measure to require that any applicant for an emergency contractor license must provide proof of workers' compensation insurance for work done in the State.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Affordable Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1425, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1425, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Affordable Housing,

____________________________

BRIAN T. TANIGUCHI, Chair