Hawaii Contractor Licensing Law

title: "Hawaii Contractor Licensing Law" description: "Complete text of Hawaii contractor licensing law statutes — Hawaii Code." slug: hawaii-contractor-licensing-law

Hawaii Contractor Licensing Law

Hawaii Code · 27 sections

The following is the full text of Hawaii’s contractor licensing law statutes as published in the Hawaii Code. For the official version, see the Hawaii Legislature.

Sections

Haw. Rev. Stat. § 238-1

Section

238-1 Definitions, generally

238-2 Imposition of tax on tangible personal property;

exemptions

238-2.3 Imposition of tax on imported services or contracting;

exemptions

238-2.5 Repealed

238-2.6 County surcharge on state tax; administration

238-3 Application of tax, etc.

238-4 Certain property used by producers

238-5 Returns

238-6 Collection of tax by seller; penalty

238-7 Audits; additional assessments; refunds

238-8 Appeal, correction of assessment

238-9 Records

238-9.5 Motor vehicle importation; report by dealers; proof

of payment

238-10 Penalties

238-11 Collection of taxes by assumpsit or distraint;

concurrent jurisdiction of district judges

238-12 Repealed

238-13 Other provisions of general excise tax law

applicable

238-14 Taxes state realizations

238-15 Short title

238-16 Rules and regulations

Law Journals and Reviews

Taxes in Hawaii Since July 1, 1968: A Report on the Unreported Decisions of Judge Dick Yin Wong, Arthur B. Reinwald, 9 HBJ 95.

Hawaii’s General Excise Tax Law: A Comprehensive Review of the Decisions. II HBJ No. 13, at pg. 1.

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HRS §444-1

§444-1  Definitions.  As used in this chapter:

"Board" means the contractors license board.

"Chlorofluorocarbon" or "CFC" means any member of the family of substances containing carbon, fluorine, and chlorine, including, without limitation, those compounds known as CFC-11, CFC-12, CFC-13, CFC-14, CFC-113, CFC-114, CFC-115, CFC-116, CFC-500, CFC-502, and CFC-503, and any combination or mixture containing any of these chlorofluorocarbon compounds.

"Contractor" means any person who by oneself or through others offers to undertake, or holds oneself out as being able to undertake, or does undertake to alter, add to, subtract from, improve, enhance, or beautify any realty or construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, project, development, or improvement, or do any part thereof, including the erection of scaffolding or other structures or works in connection therewith.

"Contractor", to the extent allowed under federal law includes a subcontractor, a specialty contractor, and any person, general engineering, general building, or specialty contractor who performs any of the activities listed in the previous paragraph directly or indirectly for the federal government.

"Department" means the department of commerce and consumer affairs.

"Director" means the director of commerce and consumer affairs.

"Hydrochlorofluorocarbon" or "HCFC" means any member of the family of substances containing hydrogen, carbon, fluorine, and chlorine, including, without limitation, those compounds known as HCFC-22 and HCFC-123 and any combination or mixture containing any of three hydrochlorofluorocarbon compounds.

"Investigator" means any person employed by the department of commerce and consumer affairs to investigate matters relating to any person who furnishes commodities or services for which a license is required from the department or any board or commission thereunder.

"Refrigerant recovery and recycling equipment" means a device used to recover and to purify CFCs from a device for later reuse.

"RME" means responsible managing employee.

"Sale" means any arrangement between two or more persons as a result of which there is, or is to be, a transfer of property for a consideration.

If any provision of this section, or the application thereof to any person, or circumstances, is held to be invalid, the invalidity shall not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end the provisions of this section are severable. [L 1957, c 305, §1(s 1); Supp, §166A-1; HRS §444-1; am L 1969, c 56, §1; am L 1970, c 203, §2; am L 1974, c 112, §1(2); am L 1983, c 274, §2; am L 1984, c 98, §1; gen ch 1985; am L 1989, c 77, §9; am L 1990, c 316, §7; am L 1992, c 202, §62 and c 264, §8; am L 2000, c 286, §3]

Note

Definition of "state resident" for purposes of federal construction employment preferences.  L 2000, c 286, §§1, 2.

Cross References

Ozone layer protection; CFCs, see chapter 342C.

Case Notes

Honolulu ordinances setting forth requirements for issuance of electrical contractor's license are invalid under §70-105, since this chapter indicates legislative intent to be the exclusive legislation applicable to contractors.  52 H. 550, 481 P.2d 116 (1971).

HRS §444-10.6

§444-10.6  State of emergency or disaster; emergency licensure; penalties.  (a)  Notwithstanding any other provision of law to the contrary, the board may issue emergency contractor's licenses during a state of emergency or disaster duly declared by the governor under chapter 209 upon a determination by the board that a shortage of Hawaii licensed contractors exists.

(b)  To qualify for an emergency contractor's license, an applicant shall:

(1)  Provide proof of licensure as a contractor in another state with similar contractor licensing requirements as those in this State, that the license is current, and that it has been in good standing for the past two years;

(2)  Provide proof of liability and property damage insurance, obtained through an insurer authorized to do business in this State or other insurer acceptable to the board;

(3)  Submit proof of workers' compensation insurance as specified in the board's rules;

(4)  Submit a current financial statement prepared by a certified public accountant and applicable credit reports as specified in the board's rules;

(5)  Pay all applicable application and license fees, including recovery fund and education fund fees;

(6)  Submit a state tax clearance statement; and

(7)  Provide proof of bond in the amount and in such form as set forth in section 444-16.5.

(c)  The classifications of emergency contractor's licenses issued and the duration of the emergency contractor's licenses shall be determined by the board based on the nature and duration of the state of emergency or disaster, and the needs and best interests of the public.

(d)  The board may delegate the issuance of emergency contractor's licenses to its administrative staff; provided that the applicant shall be required to meet all of the requirements specified in this section before the issuance of the license.

(e)  Any person who violates section 444-9, in connection with the offer or performance of repairs to a residential or nonresidential structure for damage caused by a natural disaster in a political subdivision for which a state of emergency or disaster is proclaimed by the governor, may be punished by a fine of up to $10,000, imprisonment up to one year, or both, in addition to all other remedies or penalties. [L 1996, c 172, pt of §2; am L 2007, c 81, §1]

HRS §444-11.1

§444-11.1  Requirements to maintain license.  (a)  A licensed contractor shall have and maintain in full force and effect the following:

(1)  Workers' compensation insurance; unless the licensee is authorized to act as a self-insurer under chapter 386 or is excluded from the requirements of chapter 386;

(2)  Liability insurance from an insurance company or agency for comprehensive personal injury and property damage liability; and

(3)  Bond when required by the board, under section 444-16.5.

(b)  Failure, refusal, or neglect of any licensed contractor to maintain in full force and effect, the applicable workers' compensation insurance, liability insurance, or bond shall cause the automatic forfeiture of the license of the contractor effective as of the date of expiration or cancellation of the contractor's workers' compensation insurance, liability insurance, or bond.

(c)  The board shall not restore the forfeited license until satisfactory proof of continuous insurance and bond coverages is submitted to the board as required by this section.

(d)  Failure to restore a license within sixty days after the date of forfeiture shall result in the forfeiture of all fees and shall require the person to apply as a new applicant.

(e)  The board may assess a fee not to exceed $1,000, impose a bond, or restrict the license as a condition for the restoration of a license forfeited pursuant to this section.

(f)  A licensee may, within sixty days after receipt of the notification of the forfeiture, request an administrative hearing to review the forfeiture pursuant to chapter 91. [L 1982, c 175, §1; am L 1995, c 20, §3]

Case Notes

No violation of public policy where plaintiff's insurance policy did not satisfy defendant general contractor's statutory coverage requirements pursuant to this section; this section regulates only the insurance coverage general contractors must maintain and not the coverage insurance companies must provide.  725 F. Supp. 2d 1219 (2010).

HRS §444-14

§444-14  Place of business and posting of license.  (a)  A licensed contractor shall have, maintain, and operate from a definite place of business in the State and shall display therein his or her contractor's license.

(b)  The licensed contractor shall report any change of address or telephone number to the contractors license board within ten business days from such change. [L 1957, c 305, §1(s 13); Supp, §166A-13; HRS §444-14; am L 1975, c 129, §1]

HRS §444-16.5

§444-16.5  Bond.  The contractors license board may require each licensee, applicant, individual or corporate, who is a specialty contractor to put up bond in the sum of not less than $5,000 executed by the licensee or applicant as principal and by a surety company authorized to do business in the State as surety.

The board may require each licensee, applicant, individual or corporate, who is a general contractor to put up a bond in the sum of not less than $5,000 executed by the licensee or applicant as principal and by a surety company authorized to do business in the State as surety.

The board, in exercising its discretion, shall take into consideration the licensee's or applicant's financial condition and experience in the field.

The bond shall be in a form as the board may prescribe, conditioned upon the payment of wages, as defined in section 104-1, to the employees of the contractor or any other person or entity entitled to wages when due, and giving employees or any other person or entity entitled to wages who have not been paid a right of action on the bond in their own names; and upon the honest conduct of the business of the licensee, and upon the right of any person injured or damaged by any wrongful act of the licensee to bring an action on the bond; provided that any claim for wages shall have priority over all other claims. [L 1969, c 234, §1; gen ch 1985; am L 1986, c 319, §2; ree L 1988, c 141, §50; am L 2015, c 165, §3]

HRS §444-21

§444-21  Death or dissociation.  No copartnership, joint venture, or corporation shall be deemed to have violated any provision of this chapter by acting or assuming to act as a contractor after the death or dissociation of a licensee who had the direct management of the contracting business thereof prior to final disposition by the contractors license board of an application for a license made within thirty days from the date of the death or dissociation. [L 1957, c 305, §1(s 20); Supp, §166A-20; HRS §444-21]

HRS §444-23.5

§444-23.5  Forfeiture of property for unlicensed activity.  (a)  If an investigator finds that a person has acted in the capacity of, or engaged in the business of a contractor within this State without having a current license as required by this chapter to so act or engage, and the person is or was a defendant or respondent in a separate citation or lawsuit filed with or by the department, the investigator may issue a notice of forfeiture of property used by the person in the unlicensed activity, and the property that is the subject of the notice of forfeiture shall be turned over to the department for disposition in accordance with this chapter.

(b)  Each notice of forfeiture shall be in writing and shall describe the tools, implements, documents, materials, or any other property used by any person in unlicensed activity that violates section 444-9.

(c)  The department shall make good faith efforts to locate and notify within a reasonable period of time all owners or interest-holders of property subject to a notice of forfeiture.

(d)  Service of a notice of forfeiture issued under this section shall be made:

(1)  If the name and current address of the unlicensed person, owner, or interest-holder is known:

(A)  By personal service; or

(B)  By mailing a copy of the notice to the unlicensed person, owner, or interest-holder by certified mail to the last address on record with a state agency; or

(2)  If the address of the unlicensed person, owner, or interest-holder is not known or is not on record with a state agency, by public notice once as provided in section 1-28.5.

(e)  An unlicensed person served with a notice of forfeiture under this section may submit a written request to the director for a hearing:

(1)  Within twenty days of receipt of the notice of forfeiture, if the person is served personally or by mail; or

(2)  Within twenty days of public notice of forfeiture.

If a request for a hearing is not timely filed with the director, the notice of forfeiture shall be deemed a final order of the director.

(f)  An owner or interest-holder served with a notice of forfeiture, other than the unlicensed person, may file a petition for remission of forfeiture with the department within twenty days of service by personal service or mail, or within twenty days of the date of public notice, if service is by public notice.  The petition shall be signed by the petitioner and sworn on oath before a notary public and shall contain the following:

(1)  A reasonably complete description of the property subject to forfeiture; and

(2)  A statement of the interest of the petitioner in the property subject to forfeiture, with supporting documentary evidence.

If a petition for remission of forfeiture is not timely filed with the director, the notice of forfeiture shall be deemed a final order of the director.

(g)  The department shall review the petition for remission of forfeiture and, if remission is warranted, return the property subject to forfeiture to the petitioner within thirty days of receipt of the petition.  If the department determines that remission is not warranted, the department shall issue a written decision to the petitioner within thirty days of receipt of the petition.

(h)  A petitioner whose petition for remission has been denied may file with the director a written request for a hearing as provided under subsections (i) and (j).  The written request shall be filed within twenty days of receipt of the written decision denying the petition for remission.  If a request for hearing is not timely filed with the director, the notice of forfeiture shall be deemed a final order of the director.

(i)  Hearings shall be subject to chapter 91 and shall be conducted by the director or a hearings officer designated by the director.  The director or designated hearings officer may issue subpoenas, administer oaths, hear testimony, find facts, make conclusions of law, and issue a final order of forfeiture.  The department shall have the burden to show by clear and convincing evidence that the property is subject to forfeiture.  In determining whether the property is subject to forfeiture, the director or hearings officer shall consider evidence of ownership, the description of the property, and any other relevant evidence.

(j)  Any person aggrieved by the decision of the director or designated hearings officer may appeal the decision in the manner provided in chapter 91, to the circuit court of the circuit in which:

(1)  The person resides;

(2)  The person's principal place of business is located; or

(3)  The activity in question occurred.

(k)  The director may file an action in the circuit court for a judgment to enforce any final order issued by the director or designated hearings officer pursuant to this section.  A judgment enforcing the final order shall issue upon a showing by the director either that notice was given and a hearing was held, or, that the time granted for requesting a hearing has run without the timely filing of a request.

(l)  The department may dispose of all property forfeited in accordance with this chapter by:

(1)  Transferring property to any local or state government entity, municipality, or law enforcement agency within the State;

(2)  Selling property to the public by public sale; or

(3)  Using any other means of disposition authorized by law.

(m)  All proceeds of a forfeiture action conducted pursuant to this section, after payment of expenses of administration and sale, shall be deposited in the compliance resolution fund established under section 26-9(o).  Moneys in the fund shall be appropriated for the payment of any expenses necessary to seize, detain, appraise, inventory, safeguard, maintain, advertise, or sell property seized, detained, or forfeited pursuant to this section or any other necessary expenses incident to the seizure, detention, or forfeiture of such property.

(n)  Forfeiture under this section shall be separate from and in addition to all other applicable remedies, either civil or criminal.  This section shall not apply to the violations set forth in section 444-23(a) and (b).

(o)  The director may adopt rules as necessary to fully effectuate this section. [L 2000, c 291, §2; am L 2003, c 3, §15]

HRS §444-24

§444-24  Injunction.  The contractors license board may, in addition to any other remedies available, apply to a circuit judge for a preliminary or permanent injunction restraining any person from acting, or assuming to act, or advertising, as general engineering contractor, general building contractor, or specialty contractor, without a license previously obtained under and in compliance with this chapter and the rules and regulations of the board, and upon hearing and for cause shown, the judge may grant the preliminary or permanent injunction. [L 1965, c 13, §1; Supp, §166A-23; HRS §444-24]

Rules of Court

Injunctions, see HRCP rule 65.

HRS §444-25

§444-25  Payment for goods and services.  A contractor shall pay the contractor's subcontractor for any goods and services rendered within ten days after receipt of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and after receipt by the contractor of payment from the owner for the subcontractor's work, whichever occurs later.  The subcontractor shall be entitled to receive interest on the unpaid amount at the rate of one and one-half per cent per month from the date payment is due; provided that this section shall not apply if the delay in payment is due to a bona fide dispute between the contractor and the subcontractor concerning the goods and services contracted for.

If payment is contingent upon receipt of funds held in escrow or trust, the contractor shall clearly state this fact in the contractor's solicitation of bids.  If the solicitation for bids contains the statement that the time of payment is contingent upon the receipt of funds held in escrow or trust and a contract is awarded in response to the solicitation, interest shall not begin to accrue upon any unpaid balance until after the tenth day following receipt by the contractor of an invoice by the subcontractor that includes any supporting documents as required by the terms of the subcontract and receipt of the escrow or trust funds, whichever occurs later; provided that this section shall not apply if the delay in payment is due to a bona fide dispute between the subcontractor and the contractor concerning the goods and services contracted for.

This section shall not apply to chapter 103 or any section affecting public contracts. [L 1969, c 147, §2; am L 1971, c 92, §1; gen ch 1985; am L 2012, c 260, §2]

Note

L 2012, c 260, §3 provides:

"This Act [amending §444-25] shall not apply to the payment terms of previously binding written private contracts entered into, construction bids opened, or request for proposals solicited prior to July 1, 2012."

HRS §444-25.7

[§444-25.7]  Roofing contractors guarantee bond.  (a)  Every contract executed for the purpose of constructing, repairing or improving a roof covering, which contract states a guarantee for workmanship for a period in excess of seven years, shall be accompanied by a bond, executed by the licensee as principal and by a surety company authorized to do business in the State as a surety, for the replacement value of such roof covering; provided that no surety company shall be compelled to issue a bond for any guarantee pursuant to a contract under this section which it would not ordinarily bond or consider to be a bondable project.

(b)  Such bond shall be for the exclusive benefit of, and be limited to, an owner or lessee of a private residence, including a condominium or cooperative unit, who has contracted with a duly licensed contractor for the construction of a roof covering to the owner's or lessee's own private residence and who has filed an appropriate claim for the replacement value of a roof covering which has become faulty or defective within the stated guarantee period.

(c)  The surety bond shall be continuous in form and the total aggregate liability of the surety for all claims shall be limited to the face amount of the bond irrespective of the number of years the bond is in force.

(d)  Any claim or subsequent action to make a claim against the bond shall be brought not later than one year after the expiration of the guarantee period for which the bond has been provided.  Claims against the bond, as provided in this section, shall not in any way supersede or prevent claims made under section 444-26 or any other appropriate statute or law.

(e)  Every contractor licensed to perform under this chapter shall, prior to entering into a contract covered by this section, provide to the owner appropriate information to evidence the existence of the bond and its conditions in writing.

(f)  Bonds required under this section shall be in addition to any other bond required by this chapter or any other bond required or executed between a contractor and an owner or other contracting agency.

(g)  Any violation by any contractor of any provision of this section or failure to maintain in full force and effect any bond required by this section, shall be deemed to be an unfair and deceptive act or practice. [L 1980, c 289, §1; gen ch 1985]

HRS §444-26

§444-26  Contractors recovery fund; use of fund; person injured; fees.  (a)  The board is authorized to establish and maintain a contractors recovery fund from which any person injured by an act, representation, transaction, or conduct of a duly licensed contractor that is in violation of this chapter or the rules adopted pursuant thereto may recover, by order of the circuit court or district court of the judicial circuit where the violation occurred, an amount of not more than $12,500 per contract, regardless of the number of persons injured under the contract, for damages sustained from the act, representation, transaction, or conduct.  Recovery from the fund shall be limited to the actual damages suffered by the claimant, including court costs and fees as set by law and reasonable attorney fees as determined by the court; provided that recovery from the fund shall not be awarded to persons injured by an act, representation, transaction, or conduct of a contractor whose license was suspended, revoked, forfeited, terminated, or in an inactive status at the time the claimant entered into the contract with the contractor.

(b)  For purposes of this chapter, "person injured" or "injured person" means and is limited to owners or lessees of private residences, including condominium or cooperative units, who have contracted with a duly licensed contractor for the construction of improvements or alterations to the owners' or lessees' own private residences and owners or lessees of real property who have contracted with a duly licensed contractor for the construction of the owners' or lessees' own private residences on the owners' or lessees' real property.

(c)  When any person applies for a contractors license, the person shall pay, in addition to the person's original license fee, a fee of $150 for deposit in the contractors recovery fund and a fee for deposit in the contractors education fund as provided in rules adopted by the director pursuant to chapter 91.  If the board does not issue the license, these fees shall be returned to the applicant. [L 1973, c 170, pt of §1; am L 1976, c 144, §1; am L 1977, c 127, §1 and c 152, §2; am L 1983, c 201, §4; gen ch 1985; am L 1989, c 209, §1; am L 1994, c 132, §2; am L 1995, c 20, §8; am L 2019, c 29, §§7, 18(2); am L 2020, c 12, §§1, 8; am L 2021, c 230, §15]

HRS §444-27

§444-27  Additional payments to fund.  (a)  At any time when the balance remaining in the contractors recovery fund is less than $250,000, the board may assess every contractor a fee not to exceed $500 annually for deposit in the contractors recovery fund.

(b)  The failure of any contractor to pay the assessment within sixty days from the date of assessment shall constitute a forfeiture of the contractor's license.  The board may impose other penalties or requirements as a condition of restoration of the license. [L 1973, c 170, pt of §1; am L 1977, c 127, §2; am L 1983, c 201, §5; gen ch 1985; am L 1994, c 132, §3]

HRS §444-28

§444-28  Statute of limitations; recovery from fund.  (a)  No action for an arbitration award or for a judgment which may subsequently result in an order for collection from the contractors recovery fund shall be commenced later than six years from the accrual of the cause of action thereon.  When any injured person commences action for an arbitration award or for a judgment which may result in collection from the contractors recovery fund, the injured person shall notify the board in writing to this effect at the time of the commencement of such action.  The board shall have the right to intervene in and defend any such action.  Nothing in this section shall supersede the statute of limitations as contained in section 657-8.

(b)  When any injured person recovers a valid judgment in any circuit court or district court of the county where the violation occurred against any licensed contractor for such act, representation, transaction, or conduct which is in violation of the provisions of this chapter or the regulations promulgated pursuant thereto, which occurred on or after June 1, 1974, the injured person may, upon the termination of all proceedings, including reviews and appeals in connection with the judgment, file a verified claim in the court in which the judgment was entered and, upon ten days' written notice to the contractors license board, may apply to the court for an order directing payment out of the contractors recovery fund, of the amount unpaid upon the judgment, subject to the limitations stated in this section.  Before proceeding against the contractors recovery fund, the injured person must first proceed against any existing bond covering the licensed contractor.

(c)  The court shall proceed upon such application in a summary manner, and, upon the hearing thereof, the injured person shall be required to show:

(1)  The injured person is not a spouse of debtor, or the personal representative of such spouse.

(2)  The injured person has complied with all the requirements of this section.

(3)  The injured person has obtained a judgment as set out in subsection (b) of this section, stating the amount thereof and the amount owing thereon at the date of the application.

(4)  The injured person has made all reasonable searches and inquiries to ascertain whether the judgment debtor is possessed of real or personal property or other assets, liable to be sold or applied in satisfaction of the judgment.

(5)  That by such search the injured person has discovered no personal or real property or other assets liable to be sold or applied, or that the injured person has discovered certain of them, describing them, owned by the judgment debtor and liable to be so applied, and that the injured person has taken all necessary action and proceedings for the realization thereof, and that the amount thereby realized was insufficient to satisfy the judgment, stating the amount so realized and the balance remaining due on the judgment after application of the amount realized.

(d)  The court shall make an order directed to the contractors license board requiring payment from the contractors recovery fund of whatever sum it shall find to be payable upon the claim, pursuant to the provisions of and in accordance with the limitations contained in this section, if the court is satisfied, upon the hearing of the truth of all matters required to be shown by the injured person by subsection (c) of this section and that the injured person has fully pursued and exhausted all remedies available to the injured person for recovering the amount awarded by the judgment of the court.

(e)  The license of the contractor shall be automatically terminated upon execution of a settlement agreement requiring payment from the contractors recovery fund or the issuance of a court order authorizing payment from the contractors recovery fund.  No contractor shall be eligible to receive a new license until the contractor has repaid in full, plus interest at the rate of ten per cent a year, the amount paid from the contractors recovery fund on the contractor's account.  A discharge in bankruptcy shall not relieve a person from the penalties and disabilities provided in this subsection.

(f)  If, at any time, the money deposited in the contractors recovery fund is insufficient to satisfy any duly authorized claim or portion thereof, the contractors license board shall, when sufficient money has been deposited in the contractors recovery fund, satisfy such unpaid claims or portions thereof, in the order that such claims or portions thereof were originally filed.

(g)  With respect to the repair or alteration of an existing residential building or structure or any appurtenance thereto, including but not limited to swimming pools, retaining walls, garages or sprinkling systems, initial construction of such appurtenances, and landscaping of private residences, including condominium or cooperative units, pursuant to a contract between the owner and a licensed contractor for which the owner has paid the contractor in full, should, because of the contractor's default, a mechanic's or materialman's lien be enforced against the property pursuant to section 507-47, the court hearing the action shall award such an owner or the owner's assigns a valid judgment against the contractor in an amount equal to the amount of the lien together with reasonable attorney's fees as determined by the court.  The judgment shall include an order directing payment out of the contractors recovery fund.  Notwithstanding any other provisions of this section to the contrary, the owner or the owner's assigns need not meet any other requirement to secure payment from the contractors recovery fund, except that notice of the lien enforcement hearing shall be given to the contractors license board so it may appear pursuant to section 444-31. [L 1973, c 170, pt of §1; am L 1975, c 183, §1; am L 1977, c 127, §3; gen ch 1985; am L 1992, c 258, §§5, 6]

Case Notes

Building material supplier could recover from fund where action against contractor began prior to 1977 amendments.  63 H. 540, 632 P.2d 649 (1981).

HRS §444-29

§444-29  Management of fund.  (a)  The sums received by the contractors license board for deposit in the contractors recovery fund shall be held by the contractors license board in trust for carrying out the purposes of the contractors recovery fund.  The contractors license board, as trustee of the recovery fund, shall be authorized to retain private legal counsel to represent the board in any action which may result in collection from the contractors recovery fund.  These funds may be invested and reinvested in the same manner as funds of the state employees' retirement system, and the interest from these investments shall be deposited to the credit of the contractors education fund.

(b)  The contractors education fund, which is hereby created, shall be available to the contractors license board for educational purposes.

(c)  Any law to the contrary notwithstanding, to maintain a reasonable relation between the fees generated and the cost of services rendered by the contractors recovery fund and the contractors education fund, the board may make a finding that a fee adjustment is appropriate and adjust the fees generated by renewals accordingly.  For the purposes of finding that a fee adjustment is appropriate in order to maintain a reasonable relation between the fees generated and the cost of services rendered by the funds, the board's review shall include the following:

(1)  Frequency and timing of anticipated revenue to the fund;

(2)  Identification of a reserve amount based on unanticipated revenue reductions and historical expenditures;

(3)  Anticipated expenses paid, including recovery payouts during a biennial budget cycle;

(4)  Unanticipated natural disasters or catastrophic weather events that may increase fund payments; and

(5)  Any statutory adjustments to fund payout amounts.

The balance in each fund shall not exceed sums determined by the board.  The sums shall be determined by the board biennially. [L 1973, c 170, pt of §1; am L 2019, c 29, §§8, 18(2); am L 2020, c 12, §§2, 8]

Attorney General Opinions

Governs hiring of attorneys for board; compliance with §103-3 unnecessary.  Att. Gen. Op. 86-9.

HRS §444-3

§444-3  Contractors license board.  (a)  There shall be a contractors license board of thirteen members.

(b)  Of the board members:

(1)  Ten shall be contractors who have been actively engaged in the contracting business for a period of not less than five years preceding the date of their appointment;

(2)  Five shall be general engineering or building contractors, five shall be specialty contractors, and three shall be noncontractors.  No member shall receive any compensation for the member's services, but each shall be reimbursed for necessary traveling expenses incurred in the performance of duties.

(c)  Each county shall be represented on the board.

(d)  No one, except the three noncontractor members, shall be eligible for appointment who does not at the time of the member's appointment hold a valid and unexpired license to operate as a contractor. [L 1957, c 305, §1(s 3); am L Sp 1959 2d, c 1, §§5, 6, 15; am L 1963, c 114, §3; am L 1965, c 279, §1; Supp, §166A-3; HRS §444-3; am L 1982, c 204, §8; am L 1983, c 124, §17 and c 275, §1; am L 1992, c 202, §63; am L 1993, c 322, §5]

HRS §444-30

[§444-30]  False statement.  It shall constitute a misdemeanor for any person or the person's agent to file with the contractors license board any notice, statement, or other document required under the provisions of this chapter, which is false or untrue or contains any material misstatement of fact. [L 1973, c 170, pt of §1; gen ch 1985]

HRS §444-31

[§444-31]  The contractors license board has standing in court.  When the contractors license board receives notice, as provided in section 444-28(a), the contractors license board may enter an appearance, file an answer, appear at the court hearing, defend the action or take whatever other action it may deem appropriate.  The contractors license board or its legal representative shall be served with all pleadings in an action which may result in a recovery from the contractors recovery fund.

Settlement of any claim against the contractors recovery fund shall be made only with the unanimous agreement of the contractors license board, director of commerce and consumer affairs and attorney general that settlement is in the best interest of the contractors recovery fund. [L 1973, c 170, pt of §1; am L 1982, c 204, §8; am L 1983, c 124, §17]

HRS §444-32

[§444-32]  Subrogation to rights of creditor.  When, upon the order of the court, the contractors license board has paid from the contractors recovery fund any sum to the judgment creditor, the contractors license board shall be subrogated to all of the rights of the judgment creditor and the judgment creditor shall assign all the judgment creditor's right, title and interest in the judgment to the contractors license board and any amount and interest so recovered by the contractors license board on the judgment shall be deposited to the credit of said fund. [L 1973, c 170, pt of §1; gen ch 1985]

HRS §444-35

§444-35  Disciplinary action against licensee.  Nothing contained herein shall limit the authority of the contractors license board to take disciplinary action against any licensee for a violation of any of the provisions of chapter 444, or of the rules and regulations of the contractors license board; nor shall the repayment in full of all obligations to the contractors recovery fund by any licensed contractor nullify or modify the effect of any other disciplinary proceeding brought pursuant to the provisions of chapter 444 or the rules and regulations. [L 1973, c 170, pt of §1; am L 1975, c 183, §3]

HRS §444-4

§444-4  Powers and duties of board.  In addition to any other powers and duties authorized by law, the board shall:

(1)  Grant licenses, including conditional licenses, to contractors pursuant to this chapter and rules;

(2)  Adopt, amend, or repeal such rules as the board may deem proper fully to effectuate this chapter and carry out the purpose thereof, which is the protection of the general public.  All rules shall be approved by the governor and the director, and when adopted pursuant to chapter 91, shall have the force and effect of law.  The rules may forbid acts or practices deemed by the board to be detrimental to the accomplishment of the purpose of this chapter.  The rules may require contractors to make reports to the board containing any items of information as will better enable the board to enforce this chapter and rules, or as will better enable the board from time to time to amend the rules more fully to effectuate the purposes of this chapter.  The rules may require contractors to furnish reports to owners containing any matters of information as the board deems necessary to promote the purpose of this chapter.  The enumeration of specific matters which may properly be made the subject of rules shall not be construed to limit the board's general power to make all rules necessary fully to effectuate the purpose of this chapter;

(3)  Adopt rules pursuant to chapter 91 necessary to implement the provisions of this chapter relating to CFCs, including, but not limited to, procedures for the disposal of air conditioning units utilizing CFCs that include mandatory recovery and recycling of CFCs;

(4)  Enforce this chapter and rules adopted pursuant thereto;

(5)  Suspend or revoke any license for any cause prescribed by this chapter, or for any violation of the rules, and refuse to grant, renew, restore, or reinstate any license for any cause which would be grounds for revocation or suspension of a license;

(6)  Publish and distribute pamphlets and circulars containing any information as the board deems proper to further the accomplishment of the purpose of this chapter;

(7)  Contract for professional testing services to prepare, administer, and grade the examinations for applicants as may be required for the purposes of this chapter.  The board shall determine the scope and length of the examinations, whether the examinations shall be oral, written, or both, and the score that shall be deemed a passing score;

(8)  Order summary suspension of a license; provided that summary suspensions may be delegated in accordance with section 436B-23;

(9)  Issue informal nonbinding interpretations or declaratory rulings, and conduct contested case proceedings pursuant to chapter 91; and

(10)  Subpoena witnesses and documents, administer oaths, receive affidavits and oral testimony, including telephonic communications. [L 1957, c 305, §1 (pt of §4); am L 1965, c 96, §107; Supp, pt of §166A-4; HRS §444-4; am L 1973, c 117, §1; am L 1982, c 204, §8; am L 1983, c 124, §17; am L 1985, c 160, §1; am L 1989, c 77, §10 and c 268, §1; am L 1990, c 316, §8; am L 1992, c 202, §64; am L 1995, c 20, §1]

Case Notes

Rulemaking authority of the board.  51 H. 673, 466 P.2d 1009 (1970).

HRS §444-5

§444-5  Other assistants.  Subject to chapter 76 the department may employ and remove such administrative and clerical assistants as the contractors license board may require. [L 1957, c 305, §1 (pt of §4); am L Sp 1959 2d, c 1, §15; am L 1963, c 114, §3; Supp, pt of §166A-4; am L 1967, c 85, §3; HRS §444-5; am L 1974, c 112, §1(4); am L 1982, c 204, §8; gen ch 1985; am L 1992, c 202, §65; am L 2000, c 253, §150]

HRS §444-7

§444-7  Classification.  (a)  For the purpose of classification, the contracting business includes any or all of the following branches:

(1)  General engineering contracting;

(2)  General building contracting;

(3)  Specialty contracting.

(b)  A general engineering contractor is a contractor whose principal contracting business is in connection with fixed works requiring specialized engineering knowledge and skill, including the following divisions or subjects:  irrigation, drainage, water power, water supply, flood control, inland waterways, harbors, docks and wharves, shipyards and ports, dams and hydroelectric projects, levees, river control and reclamation works, railroads, highways, streets and roads, tunnels, airports and airways, sewers and sewage disposal plants and systems, waste reduction plants, bridges, overpasses, underpasses and other similar works, pipelines and other systems for the transmission of petroleum and other liquid or gaseous substances, parks, playgrounds and other recreational works, refineries, chemical plants and similar industrial plants requiring specialized engineering knowledge and skill, powerhouses, power plants and other utility plants and installations, mines and metallurgical plants, land levelling and earth-moving projects, excavating, grading, trenching, paving and surfacing work and cement and concrete works in connection with the above mentioned fixed works.

(c)  A general building contractor is a contractor whose principal contracting business is in connection with any structure built, being built, or to be built, for the support, shelter, and enclosure of persons, animals, chattels, or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof.

(d)  A specialty contractor is a contractor whose operations as such are the performance of construction work requiring special skill such as, but not limited to, electrical, drywall, painting and decorating, landscaping, flooring, carpet laying by any installation method, plumbing, or roofing work, and others whose principal contracting business involves the use of specialized building trades or crafts. [L 1957, c 305, §1(s 6); Supp, §166A-6; HRS §444-7; am L 1989, c 162, §1]

HRS §444-7.5

[§444-7.5]  Asbestos contractors.  (a)  The board shall provide for the licensure or permitted activities as a specialty contractor of any person who engages in any activity involving the application, enclosure, removal, encapsulation, renovation, repair, demolition, or other disturbances of friable asbestos or asbestos-containing material that may become friable during the activity; provided that this section shall not apply to activities such as maintenance, repair, or removal of asbestos pipe or sheets, vinyl asbestos floor materials or asbestos-bituminous or resinous material as well as other activities that the board may exempt which are incidental to the primary purpose for which the contractor holds a license and if they were performed in a manner that no health hazard is posed to the public, the contractor, or the contractor's employees.

(b)  No person shall be licensed as an asbestos contractor unless that person meets all requirements of subsection (c) in addition to the requirements in section 444-11.

(c)  The licensing requirements and procedures, and the standards of conduct for individuals licensed as an asbestos contractor shall be as provided by rules and shall include, but shall not be limited to, provisions for the following:

(1)  Examination;

(2)  Registration of employees;

(3)  Training, experience, and any other certification standards for contractors and their employees;

(4)  Protective equipment standards;

(5)  Application, enclosure, removal, encapsulation, renovation, repair and demolition procedures;

(6)  Hazardous waste disposal;

(7)  Clean-up procedures;

(8)  Monitoring;

(9)  Health examinations;

(10)  Continuing education;

(11)  Administrative procedures; and

(12)  Fees.

The board shall consult with and shall initiate and maintain cooperative agreements with the departments of health, and labor and industrial relations, or any other state, federal, or county departments or agencies and the University of Hawaii or their community colleges in the development of these rules, and to develop procedures and methods for the enforcement of any asbestos activity.

(d)  The board, the departments of commerce and consumer affairs, labor and industrial relations, and the department of health shall have the right of entry to any job site and access to any records of the licensee for purposes of inspection for health or safety hazards.  Each agency shall be empowered to apply to a court of competent jurisdiction for an order restraining any activity at the job site which constitutes an imminent health or safety hazard.

(e)  Any person who knowingly hinders or delays the board or the above departments in the performance of their duties, who knowingly fails to obtain the licenses or registrations required by this section, or otherwise knowingly violates this section shall be guilty of a misdemeanor.

(f)  The board may, in addition to any other remedies provided by law, and after a hearing conducted pursuant to chapter 91, assess a fine not to exceed $5,000 for each violation of this section.  For purposes of this subsection, each day's violation shall constitute a separate violation. [L 1987, c 157, §2]

Cross References

Asbestos pollution control, see chapter 342P.

HRS §444-8

§444-8  Powers to classify and limit operations.  (a)  The contractors license board may adopt rules and regulations necessary to effect the classification of contractors in a manner consistent with established usage and procedure as found in the construction business, and may limit the field and scope of the operations of a licensed contractor to those in which the contractor is classified and qualified to engage, as defined in section 444-7.

(b)  A licensee may make application for classification and be classified in more than one classification if the licensee meets the qualifications prescribed by the board for such additional classification or classifications.  For qualifying or classifying in additional classifications, the licensee shall pay the appropriate application fee but shall not be required to pay any additional license fee.

(c)  This section shall not prohibit a specialty contractor from taking and executing a contract involving the use of two or more crafts or trades, if the performance of the work in the crafts or trades, other than in which the specialty contractor is licensed, is incidental and supplemental to the performance of work in the craft for which the specialty contractor is licensed. [L 1957, c 305, §1(s 7); am L 1965, c 241, §1; Supp, §166A-7; HRS §444-8; gen ch 1985]

Cross References

Rulemaking, see chapter 91.

Case Notes

Classifications; consistency with established usage and procedure and the public safety as provided in §444-4(2).  51 H. 673, 466 P.2d 1009 (1970).

HRS §444-9

§444-9  Licenses required.  No person within the purview of this chapter shall act, or assume to act, or advertise, as general engineering contractor, general building contractor, or specialty contractor without a license previously obtained under and in compliance with this chapter and the rules and regulations of the contractors license board. [L 1957, c 305, §1(s 8); Supp, §166A-8; HRS §444-9]

Case Notes

Pursuant to this section, a general engineering or building contractor is prohibited from doing any work that would require it to act as a specialty contractor in an area the general contractor was not licensed to operate; where project required plumbing work classified as C-37 specialty work, general contractor, which did not hold a C-37 specialty license, could not do work in that area; court thus erred in holding that project did not require work in the C-37 classification and that general contractor did not have to engage a specialty contractor holding a C-37 specialty license.  97 H. 450, 40 P.3d 73 (2002).

HRS §444-9.5

§444-9.5  Performance of electrical and plumbing work; licensing of electrical and plumbing workers.  (a)  A person licensed as an electrical or plumbing contractor under this chapter may enter into contracts to perform electrical or plumbing work, respectively; provided that:

(1)  If the contractor's responsible managing employee, which includes a sole proprietor, is not licensed in accordance with chapter 448E, the contractor shall employ individuals licensed in accordance with chapter 448E to actually perform the electrical or plumbing work, respectively, subject to this section; and

(2)  Employees of a community antennae television company and employees of a public utility within the State that is franchised or chartered by the State and regulated by the public utilities commission shall be exempt from this section while so employed and acting within the scope of their employment.

(b)  At least half of all individuals performing electrical or plumbing work employed on a construction job site by an electrical or plumbing contractor shall be licensed in accordance with chapter 448E.  The board may waive this requirement in any county when there are insufficient licensed electrical or plumbing workers in that county to comply with this section.

(c)  All individuals employed on a construction job site by an electrical or plumbing contractor who are licensed in accordance with chapter 448E shall visibly display their license on their person while on the construction job site.  Only individuals displaying their license at the time of a site inspection shall be counted as a licensee to determine compliance with this section. [L 1971, c 183, §2; gen ch 1985; am L 2006, c 274, §2; am L 2010, c 28, §2; am L 2017, c 173, §2]

Note

Applicability of L 2017, c 173.  L 2017, c 173, §3.

References

The law belongs to the people. Georgia v. Public.Resource.Org, 590 U.S. (2020)

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