House District 13

House passes bill to address contractors acting without a license

In News Release on March 11, 2009 at 11:48 pm

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Honolulu. Last night, a bill introduced by Rep. Mele Carroll to address contractors acting on the work site without a license passed Third Reading in the House with one no vote.

House Bill 654 HD1 requires the issuance of citations and cease and desist orders in cases where an investigator personally observes and determines that a person is acting as a contractor without a license in good standing. The bill also allows for the state to issue citations and to order the person in violation to cease work immediately.

In a situation where an investigator does not personally observe but determines that a person is acting in the capacity of, or engaging in the business of, a contractor without having any license in good standing, the investigator may issue a citation to that person.

“This bill protects businesses as well as consumers that legitimately contract their work out to licensed contractors from people who are defrauding the system,” Rep. Mele Carroll said. “It also protects those unlicensed workers from harm should they get hurt on the job because they are not covered properly by insurance.”

HB654 HD1 also raises current fines from $500 on the first offense and $1,000 on the second offense to $2,500 on the first offense and $3,500 on the second offense.

“What it does is discourage contractors from using unlicensed sub-contractors knowing that the penalty is going to be stiffer,” said Kawika Kamai, owner of Hawai‘i Drywall and Plastering and a constituent from Haiku Maui. “Right now, they don’t have enough personnel to check on what’s going on.”

HB654 HD1 has been transmitted to the Senate.

Rep. Mele Carroll is Chairwoman of the House Hawaiian Affairs Committee and Chairwoman of the Legislative Hawaiian Caucus.

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