2019 Hawaii Revised Statutes
TITLE 25. PROFESSIONS AND OCCUPATIONS
444. Contractors
444-26 Contractors recovery fund; use of fund; person injured; fees.

§444-26 Contractors recovery fund; use of fund; person injured; fees. [Section effective until June 30, 2020. For section effective July 1, 2020, see below. Repeal and reenactment on June 30, 2022. L 2019, c 29, §18(2).] (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, which 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 by 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. In the event that 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

§444-26 Contractors recovery fund; use of fund; person injured; fees. [Section effective July 1, 2020. For section effective until June 30, 2020, see above. Repeal and reenactment on June 30, 2022. L 2019, c 29, §18(2).] (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, which 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 by 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. In the event that the board does not issue the license, these fees shall be returned to the applicant.

(d) When the contractors recovery fund attains a funding level of $420,893 in any fiscal year, the board shall either:

(1) Cease accepting payments made by renewing licensees; or

(2) Develop a process to refund monies in excess of the $420,893 fund balance to licensees who paid into the fund, and refund such monies.

If acceptance of payments is ceased, it shall remain ceased until the funding level falls below $420,893. [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]