STAND. COM. REP. NO.  1425

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 203

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No. 203, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

     The purpose of this bill is to deter unlicensed contractor activity by increasing monetary sanctions for such violations.

     The Department of Commerce and Consumer Affairs (DCCA), Building Industry Association – Hawaii, General Contractors Association of Hawaii, and Subcontractors Association of Hawaii supported this bill.

     Your Committee acknowledges that this bill's current form is the result of a collaborative effort between DCCA and various stakeholder organizations and represents an ambitious approach to deter unlicensed contractors from engaging in activities requiring licensing and oversight.  Your Committee is concerned, however, that an increase in the minimum fine for an initial violation to $2,500 may result in an unintentionally severe penalty for a minor or inadvertent compliance violation.

     Your Committee has amended this bill by changing the effective date to January 1, 2046, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 203, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 203, S.D. 2, H.D. 1.

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

____________________________

JON RIKI KARAMATSU, Chair