Bill Text: HI HB1202 | 2013 | Regular Session | Amended

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Bill Title: Licensees; Contractors; Unlicensed Contracting Offenses; Unlicensed Activity

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2013-06-26 - Act 182, 6/25/2013 (Gov. Msg. No. 1285). [HB1202 Detail]

Download: Hawaii-2013-HB1202-Amended.html

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STAND. COM. REP. NO. 1000

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1202

       H.D. 1

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1202, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO BUSINESS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify that:

 

     (1)  A professional or vocational licensee who inadvertently fails to maintain licensing requirements but who subsequently corrects the failure so that there was no lapse in licensure shall not be guilty of unlicensed activity; and

 

     (2)  A contractor who inadvertently fails to maintain licensing requirements and who subsequently corrects the failure so that there was no lapse in licensure shall not be guilty of unlicensed contracting activity.

 

     Your Committee received testimony in support of this measure from the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs, Building Industry Association of Hawaii, General Contractors Association of Hawaii, and Subcontractors Association of Hawaii.

 

     Your Committee finds that this measure is intended to clarify that certain professional or vocational licensees or contractors, licensed under either chapter 436B or 444, Hawaii Revised Statutes, who inadvertently fail to renew their licenses shall not be treated as unlicensed contractors after the subsequent renewal of their licenses.

 

     Your Committee further finds that section 444-11.1, Hawaii Revised Statutes, states that the Contractors License Board cannot restore a forfeited license unless there is satisfactory proof of continuous insurance and bond coverage; however, this section also provides that a licensee who restores a license within sixty days is not required to reapply as a new applicant.  An amendment to this measure is therefore necessary to conform to existing licensure requirements under chapter 444, Hawaii Revised Statutes, by clarifying that a lapse in licensure of no more than sixty days does not constitute unlicensed contracting activity.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Clarifying that a contractor who inadvertently fails to maintain licensing requirements under chapter 444, Hawaii Revised Statutes, and who subsequently corrects the failure so that there was a lapse of no more than sixty days in licensure shall not be guilty of unlicensed contracting activity;

 

     (2)  Inserting an effective date of July 1, 2013; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1202, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1202, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Labor.

 

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

 

		____________________________ ROSALYN H. BAKER, Chair