STAND. COM. REP. NO. 2946

Honolulu, Hawaii

RE: S.B. No. 2872

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2872 entitled:

"A BILL FOR AN ACT RELATING TO THE CONTRACTORS RECOVERY FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the amount an injured homeowner may recover from the Contractors Recovery Fund and the maximum payout for any licensed contractor from the Contractors Recovery Fund.

Your Committee received testimony in support of this measure from the Contractors License Board, Subcontractors Association of Hawaii, and one individual.

Your Committee finds that under existing law, homeowners can receive up to $12,500 per contract from the Contractors Recovery Fund, and that contractors have a maximum liability of $25,000 from the Contractors Recovery Fund. Your Committee further finds that with higher construction costs, increasing the maximum payments and payouts from this fund will protect both consumers and the construction industry.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2872 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair