STAND. COM. REP. NO. 2739

Honolulu, Hawaii

RE:    S.B. No. 2896

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 2896, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

     The purpose of this measure is to reduce and deter unlicensed contractor activity in this State by prohibiting the resumption of work by any contractor who is issued a citation for operating without a license.

     Your Committee received testimony in support of this measure from the Subcontractors' Association of Hawaii.  Testimony in opposition was received from the General Contractors Association of Hawaii and testimony with concerns was submitted by the Iron Workers Stabilization Fund.

     Your Committee finds that unlicensed contracting activity is a serious problem that decreases state revenues and adversely impacts legitimate contractors and consumers, all of whom face the consequences of having to contend with contractors who refuse to play by the rules.  Your Committee notes that this measure will focus on those contractors who continue to perform work without a license, by requiring them to cease work immediately upon the issuance of a citation and prohibiting them from resuming work until all licensing requirements are met.  In addition, it is the intent of your Committee that the foregoing requirements apply to general contractors as well as subcontractors.  In this regard, unlicensed general contractors will receive the same citation and cease and desist orders as unlicensed subcontractors.

     Your Committee has amended this measure by requiring investigators to issue both citations and cease and desist orders upon determining that the contractor is performing work without a license.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2896, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2896, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

BRIAN T. TANIGUCHI, Chair