STAND. COM. REP. NO. 779

Honolulu, Hawaii

RE:    S.B. No. 203

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred S.B. No. 203, 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 require that the Regulated Industries Complaints Office (RICO) of the Department of Commerce and Consumer Affairs issue a citation and a cease and desist order when an investigator determines that a person is acting as a contractor without a valid license and to amend penalty amounts for violations. 

     This measure increases the fines for violation of chapter 444, Hawaii Revised Statutes, regarding unlicensed persons performing contracting activities that require a license.  Your Committee finds that unlicensed contractor activity would be deterred by increasing the financial penalty for violations.  Unlicensed contracting activity is an ongoing and serious concern and fines must be sufficient to deter and punish violators.

     Your Committee has amended this measure by:

     (1)  Deleting section 1, relating to issuance of a citation, upon mutual agreement of the Regulated Industries Complaints Office, representatives of the contractors, and organized laborers; and

     (2)  Changing the effective date from January 1, 2015 to upon approval.

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

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

____________________________

BRIAN T. TANIGUCHI, Chair