STAND. COM. REP. NO. 436

Honolulu, Hawaii

RE: S.B. No. 417

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Public Safety and Military Affairs, to which was referred S.B. No. 417 entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

beg leave to report as follows:

The purpose and intent of this measure is to establish as a class B felony the unlicensed performance of contractor work, during or within five years following a national emergency, state of emergency, or disaster proclamation, in an affected political subdivision.

Your Committees received testimony in support of this measure from the Subcontractors Association of Hawaii.

Your Committees received comments on this measure from the Contractors License Board.

Your Committees find that there has been a prevalence of unlicensed contractors performing fraudulent or unauthorized contractor work in the State, especially following a natural disaster. Because not all states require contractor licensing, many unlicensed and unauthorized subcontractors come to the state attempting to sell or perform contracts to rebuild. Homeowners are often not aware that a license is required to perform subcontracting work in the State and may enter into contracts with unlicensed contractors who perform substandard repairs or abscond with advance payments. This measure will help control and abate unlawful activities of unlicensed contractors by enhancing the penalty as a class B felony to better reflect the severity of the offense to consumers.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Public Safety and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 417, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 417, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Public Safety and Military Affairs,

________________________________ BRANDON J.C. ELEFANTE, Chair

________________________________ JARRETT KEOHOKALOLE, Chair