STAND. COM. REP. NO. 2245

Honolulu, Hawaii

RE: S.B. No. 2977

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Public Safety and Intergovernmental and Military Affairs and Commerce and Consumer Protection, to which was referred S.B. No. 2977 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Make it unlawful for an unlicensed contractor to offer or perform repairs or improvements to a residential or nonresidential structure or property, or add to or subtract from grounds in connection with the structure or property, for damage or destruction caused by a natural disaster for which a state of emergency or disaster is proclaimed by the Governor; and

(2) Require violations to be punished by a fine of not more than $10,000, imprisonment up to one year, or both, in addition to all other remedies or penalties.

Your Committees received testimony in support of this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs, Hawaiʻi Emergency Management Agency, Subcontractors Association of Hawaii, and one individual.

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

Your Committees find that the August 2023 wildfires on Maui caused significant property loss, including the destruction of Lahaina town. Your Committees further find that work performed by unlicensed contractors unfairly exposes Hawaii property owners to liability for poor workmanship and jobsite injuries and increases the likelihood of unlicensed contractor fraud in which an unlicensed contractor obtains payment and provides no work or incomplete work. This measure will prevent further harms from occurring during the repairs and new construction in connection with the August 2023 Maui wildfires, or any future natural disasters.

As affirmed by the records of votes of the members of your Committees on Public Safety and Intergovernmental and Military Affairs and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2977 and recommend that it pass Second Reading and be referred to your Committee on Judiciary.

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

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ GLENN WAKAI, Chair