STAND. COM. REP. NO. 2489

Honolulu, Hawaii

RE:    S.B. No. 2475

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Commerce and Consumer Protection and Judiciary and Labor, to which was referred S.B. No. 2475 entitled:

"A BILL FOR AN ACT RELATING TO ASSISTING UNLICENSED CONTRACTORS,"

beg leave to report as follows:

     The purpose and intent of this measure is to clarify that a contractor licensee who aids and abets an unlicensed contractor may be subject to additional discipline by the Contractors License Board.

     Your Committees received testimony in support of this measure from the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs, Contractors License Board, Subcontractors Association of Hawaii, Building Industry Association of Hawaii, Hawaii Island Contractors' Association, and Hawaii Laborers' Union.

     Your Committees find that the Contractors License Board has determined that aiding and abetting an unlicensed contractor under section 444-9.3, Hawaii Revised Statutes, only applies to criminal conduct and penalties and is outside the scope of administrative proceedings.  Since aiding and abetting conduct often occurs outside of a contract, the Regulated Industries Complaints Office is unable to administratively prosecute violations of section 444‑9.3, Hawaii Revised Statutes, as written.

     Your Committees further find that this measure enables the Regulated Industries Complaints Office to pursue, and authorizes the Contractors License Board to take, disciplinary action against contractor licensees who aid and abet unlicensed contractors.  This measure will also enhance enforcement and consumer protection efforts by dissuading licensed contractors from recommending unlicensed contractors to unwitting consumers.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2475 and recommend that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Judiciary and Labor,

____________________________ CLAYTON HEE, Chair

____________________________ ROSALYN H. BAKER, Chair