HB1339 HD1

SECTION 1. Chapter 444, Hawaii Revised Statutes, is amended by adding a new subsection to be appropriately designated and to read as follows:

"§444- Emergency contractors recovery fund; use of fund; person injured; fees. (a) The board may establish and maintain an emergency contractors recovery fund. Any person injured by an act, representation, transaction, or conduct of a duly licensed emergency contractor, which is in violation of this chapter or the rules adopted pursuant thereto, may recover by order of the circuit court or district court of the judicial circuit where the violation occurred, an amount not exceeding $12,500 per contract, regardless of the number of persons injured under the contract, for damages sustained by the act, representation, transaction, or conduct. Recovery from the fund shall be limited to the actual damages suffered by the claimant, including court costs and fees as set by law, and reasonable attorney fees as determined by the court; provided that recovery from the fund shall not be awarded to persons injured by an act, representation, transaction, or conduct of a contractor whose license was suspended, revoked, forfeited, terminated, or inactive at the time the claimant entered into the contract with the contractor.

(b) Applicants for an emergency contractor's license shall pay, in addition to the original license fee, a fee of not less than one per cent of the amount of the contract or contracts procured in Hawaii for deposit in the emergency contractors recovery fund.

(c) For purposes of this section, "person injured" or "injured person" means and is limited to owners or lessees of private residences, including condominium or cooperative units, who have contracted with a duly licensed emergency contractor for the construction of improvements or alterations to the owners' or lessees' own private residences and owners or lessees of real property who have contracted with a duly licensed emergency contractor for the construction of the owners' or lessees' own private residences on the owners' or lessees' real property."

SECTION 2. Section 444-10.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§444-10.6[]] State of emergency or disaster; [~~acting as a contractor without a license; penalty.~~] emergency licensure; penalties. (a) Notwithstanding any other provision of law to the contrary, the board may issue emergency contractor's licenses during a state of emergency or disaster duly declared by the governor under chapter 209 upon a determination by the board that a shortage of a qualified workforce exists.

(b) To qualify for an emergency contractor's license, an applicant shall:

(1) Provide proof of licensure as a contractor in another state with similar contractor licensing requirements as those in this State, and that the license is current and has been in good standing for the past two years;

(2) Provide proof of workers' compensation insurance, property damage insurance, and liability insurance in an amount not less than $300,000 per occurrence and $600,000 in the aggregate as specified in the board's rules;

(3) Submit a current financial statement prepared by a certified public accountant and applicable credit reports as specified in the board's rules;

(4) Pay all applicable application and license fees, including recovery fund and education fund fees;

(5) Submit a credit report; and

(6) Provide proof of licensure as a contractor in another state which follows the same adopted version of the applicable county's uniform building code.

(b) The classifications of emergency contractor's licenses issued and the duration of the emergency contractor's licenses shall be determined by the board based on the nature and duration of the state of emergency or disaster, and the needs and best interests of the public.

(c) The board may delegate the issuance of emergency contractors' licenses to its administrative staff; provided that the applicant shall meet all of the requirements specified in this section before the issuance of the license.

(d) A contractor who is issued an emergency contractor's license shall be subject to all requirements to maintain such license as set forth in section 444-11.1, and shall be subject to the same penalties as set forth in sections 444-10.6, 444-17, 444-23, 444-23.5, 444-24 and 444-25.5.

(e) An emergency contractor's license issued pursuant to this section shall be valid only during the period that the emergency exists.

(f) Any person who violates section 444-9, in connection with the offer or performance of repairs to a residential or nonresidential structure for damage caused by a natural disaster in a political subdivision for which a state of emergency or disaster is proclaimed by the governor, may be punished by a fine of up to $10,000, or imprisonment up to one year, or both, in addition to all other remedies or penalties."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	1339
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII