Contractor Hawaii Administrative Rules Ch. 16 Title 77

§16-77-70 Direct management of the contracting business.

(a) "Direct management of the contracting business" as used in chapter 444, HRS, and this chapter means the general supervision of the construction projects undertaken by the contracting entity, the control of technical and administrative decisions, personnel management, the review of construction contracts, and enforcing compliance with all laws and rules affecting the contracting business. (b) The contracting business of a contracting entity shall be under the direct management of a principal RME. [Eff 8/14/80; am and ren §16-77-70, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §444-4)

§16-77-34 Work incidental and supplemental.

(a) "Incidental and supplemental" is defined as work in other trades that is subordinate to, directly related to, and necessary for the completion of the [project undertaken by a licensee pursuant to] work of greater importance that is within the scope of the licensee's license (i.e., the primary work the specialty contractor is licensed to perform). (b) In addition to subsection (a), to qualify as incidental and supplemental work, that work must also represent less than a majority of the project (as measured in relation to the project's total cost or extent of work). (c) For purposes of this section, "majority" means any amount greater than fifty per cent. [Eff 8/14/80; am and ren §16-77-34, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; am and comp ] (Auth: HRS §§444-4, 444-7) (Imp: HRS §§444-7, 444- 8, 444-9)

§16-77-64 Notice due board on death, dissociation, or disability of RME; forfeiture of license.

(a) A contracting entity who qualified for licensure by employment of an RME shall within sixty days after the death, dissociation, or disability of the RME, notify the board of the death, dissociation, or disability of the RME. The contracting entity shall submit an application to qualify a new RME or place its license on inactive status within ninety days of the death, dissociation, or disability of the RME. The contracting entity may continue to operate until the board makes a final determination upon its timely application to qualify a new RME; provided that the entity may not bid upon or enter into new contracts until the board's determination is made. (b) "Disability" includes any situation in which the direct management of the licensed contracting entity's business is no longer under the control of the principal RME or when a subordinate RME is unable to be responsible for all construction activities relating to the license classifications held by the subordinate RME. (c) Failure of the contracting entity to notify the board of the death, dissociation, or disability of the RME within the sixty-day period shall result in the license being automatically forfeited without a hearing. The license may be restored when the contracting entity employs another licensed individual as the contracting entity's RME and the entity files a new application with the board. (d) Failure of the contracting entity to submit an application for a new principal RME within ninety days of the death, dissociation, or disability, and to qualify a new principal RME within the time period allowed by the board shall result in the automatic forfeiture of the contracting entity's license without a hearing. (e) Contracting entities shall not bid or enter into contracts without having a principal RME in its employ who has direct management of the contracting business. (f) An RME who dissociates from the contracting entity shall notify the board within sixty days of the dissociation. The RME shall, within ninety days of the dissociation: (1) Apply to become a contracting entity by submitting a current financial statement, fees, tax clearance or proof of payment arrangement, credit report, and required insurance; (2) Obtain employment with another contracting entity which shall submit a proper application thereof; or (3) Place the license on an inactive status. (g) Failure of the RME to complete one of the three actions in subsection (f) within ninety days of the dissociation shall cause the automatic forfeiture of the license without a hearing. [Eff 8/14/80; am and ren §16-77-64, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; am and comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-11, 444-11.1, 444-12, 444-15, 444-16, 444-21)

§16-77-33 Limitation of classifications.

(a) A licensee classified as an "A" general engineering contractor or as a "B" general building contractor shall not act, assume to act, or advertise as a specialty contractor except in the specialty classifications which the licensee holds. (b) A general building contractor license does not entitle the holder to undertake a contract unless it requires more than two unrelated building trades or crafts or unless the general building contractor holds the specialty license to undertake the contract. Work performed which is incidental and supplemental to one contractor classification shall not be considered as unrelated trades or crafts. (c) A licensee classified as a specialty contractor shall not act, assume to act, or advertise as a contractor in any classification other than those which the licensee holds. (d) Any licensee who acts, assumes to act, or advertises in any classification other than for which the licensee is duly licensed under this chapter shall be construed to be engaged in unlicensed activity. [Eff 8/14/80; am and ren §16-77-33, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-8) (Imp: HRS §§444-7, 444-8, 444-9, 444-9.2, 444-10)

§16-77-35 Additional classifications.

(a) A licensee may obtain additional classifications by filing an application, paying the appropriate fees, meeting the requirements regarding experience in the classification requested, and passing the appropriate part II examination. (b) A licensee holding a specialty contractor's license who is applying for an "A" general engineering or "B" general building contractor's license may be required to submit a current financial statement and other supporting documents. [Eff 8/14/80; am and ren §16-77-35, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §§444-4, 444-7) (Imp: HRS §§444-7, 444-8, 444-9, 444-15)

§16-77-80 Homeowner contracts.

(a) All contractors shall provide homeowners with a written contract involving home construction or improvements which shall provide the following: (1) The name, address, license number, and classification(s) of the contractor; (2) The exact dollar amount due from the homeowner under the contract; (3) The date work is to commence and number of days for completion; (4) The scope of the work to be performed and materials to be used; (5) The approximate percentage of work to be subcontracted and the names and license numbers of all subcontractors, if any; (6) A clear statement of the risk of loss of any payments made to a sales representative (printed in distinct capital letters next to the owner's signature line); (7) A provision explaining the lien rights of all parties performing under the contract including the contractor, any subcontractor, or any materialman supplying commodities or labor on the project; (8) The terms of any warranty offered; and (9) The signatures of the homeowner and the contractor. (b) The contract shall be executed prior to the performance of any home construction or improvement. (c) For purposes of section 444-25.5, HRS, and this section, "home construction or improvements" shall not include service-type work (e.g., maintenance work performed by electrical and plumbing contractors) that does not require a permit by a county or other local subdivision of the State. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: §§444-4, 444-25.5) (Imp: HRS §444-25.5)

§16-77-76 Maintenance of bond.

(a) All licensees shall be required to maintain any surety bond imposed by the board for at least one year before requesting a waiver of the surety bond. (b) The board may, in its discretion, waive the surety bond if a licensee demonstrates that it has financial integrity. The board may require a licensee to submit current credit reports, current financial statements, a current state tax clearance or proof of payment arrangement, and other documents to show evidence of financial integrity. [Eff and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11.1, 444-16.5)

§16-77-28 All contractors classified.

(a) All persons licensed under chapter 444, HRS, shall be classified by the board into one or more classifications or subclassifications, or both, as follows: General engineering contractor "A" General building contractor "B" Specialty contractor "C" (b) The definitions of these classifications shall be as provided in section 444-7, HRS. (c) Exhibit A, entitled Specialty Contractor Classifications, dated May 23, 2003, located at the end of this chapter, is hereby incorporated into and made a part of this chapter. (d) Classifications under C-68 classified specialist may be established by the board until the work performed is defined and a hearing is held to establish the proper classification. A C-68 classified specialist shall be subject to the same requirements as other contractor classifications. (e) The board, after a hearing, may establish or modify or delete existing classifications, based on established usage in the construction industry. [Eff 8/14/80; am and ren §16-77-28, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; am and comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-7, 444-8) (Imp: HRS §§444-7, 444-8, 444-9, 444-10, 444-11, 444-13

§16-77-56 Inactive status.

(a) An inactive licensee may reactivate the license by submitting an application, application fee, current financial statement, tax clearance, and credit report to the board. An inactive licensee may reactivate the license as an RME by submitting an application, application fee, and a current credit report. (b) The board shall review the request and supporting documents as if the request was a new application for a license. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11, 444-11.1, 444-12, 444-15)

§16-77-46 Examination misconduct.

(a) Any misconduct by an applicant during an examination shall be prohibited and subject to action by the board. Acts of misconduct during an examination include, but are not limited to, any of the following: (1) Failure to follow examination instructions or procedures; (2) Unauthorized communication between candidates or with others inside or outside of the examination room; (3) Copying another candidate's answers or allowing one's answers to be copied; (4) Allowing another person to sit in the examination room and take the examination for the applicant; (5) Reference to crib sheets, outlines, textbooks, or other unauthorized materials inside or outside the examination room; (6) Leaving the examination room without prior approval; or (7) Removal of any examination booklet, answer booklet, answer sheet, or workpapers from the examination room without permission. (b) Action by the board may include invalidating the entire examination and suspending an applicant from taking the examination again for a period of up to three years. Prior to imposing any action under this subsection, the applicant shall be afforded an opportunity to appear before the board. [Eff and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§436B-7, 444-4) (Imp: HRS §§436B-7, 444-4, 444-11)

§16-77-71 Principal and subordinate RMEs.

(a) Contracting entities may have in their employ more than one RME, but shall designate in every case a principal RME who shall be primarily responsible for the direct management of the business of the contracting entity and who shall be: (1) In a position to secure full compliance with the laws governing contractors, including but not limited to chapter 444, HRS, and this chapter; (2) Familiar with all contracts the contracting entity enters into, sees that all contract provisions are carried out, and signs or initials all contracts; (3) Familiar with all projects the contracting entity undertakes and sees that records are kept on the projects, which shall include the amount of time the principal RME spends with the contracting entity and payroll records of the principal RME; (4) In residence in the State during the time the license of the contracting entity is in effect or during the period a project is under construction; and (5) Held responsible for any violation of this chapter or chapter 444, HRS. (b) Other RMEs employed but not designated by the contracting entity as the principal RME shall be referred to as subordinate RMEs and shall be responsible for all activities relating to the classifications held by the subordinate RME. (c) An RME shall not be considered a contracting entity and shall be considered to be engaging in unlicensed activity if the RME enters into a contract other than for the contracting entity by whom the RME is employed. [Eff 8/14/80; am and ren §16-77-71, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-9, 444-11, 444-15, 444-17, 444-21)

§16-77-79 Disclosure to homeowners.

(a) Contractors engaging in home construction or home improvements shall, prior to obtaining a binding contract from the homeowner and prior to applying for a building permit: (1) Disclose all information pertaining to the contract and its performance, the absence of which might mislead the homeowner to the homeowner's detriment including but not limited to the lien rights of labor, suppliers, and subcontractors; (2) Disclose the scope of work to be performed; (3) Disclose the approximate percentage of work to be subcontracted; (4) Disclose whether the contractor is bonded or not and whether the owner has a right to demand bonding on the work to be performed; provided that if the contractor is not bonded, the contractor shall disclose the extent of the financial security available to assure performance of the contract; (5) Disclose the contractor's license number and contractor classification(s); (6) Disclose all warranties, if any; and (7) Provide an estimate of the cost of work to be performed. (b) For purposes of this chapter, "homeowner" means the owner or lessees of residential real property, including without limitation owners or lessees of private residences, condominiums, or cooperative units. [Eff 8/14/80; am and ren §16-77-79, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-25.5) (Imp: HRS §444-25.5)

§16-77-12 Application fees.

(a) Every application for a license shall be accompanied by the appropriate fees provided in chapter 16-53 and a contractors education fund fee of ten dollars. These fees may be paid by money order or check made payable to the "Department of Commerce and Consumer Affairs." (b) For purposes of this chapter, the dishonoring of any check upon first deposit shall constitute a failure to meet the fee requirements. [Eff 8/14/80; am and ren §16-77-12, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §§26-9, 444-4, 444-11, 444-12, 444-26) (Imp: HRS §§26-9, 444-9, 444-11, 444-12, 444-15, 444- 26)

§16-77-18 Experience requirement.

(a) Every individual applicant or RME shall have had, within the past ten years immediately preceding the filing of an application, not less than four years of supervisory experience as a foreman, supervising employee, or contractor in the particular classification in which the applicant intends to engage as a contractor. (b) Self-employed or unlicensed experience may be acceptable experience in the discretion of the board. (c) Contracting entities shall qualify through an RME who meets these experience requirements. [Eff 8/14/80; am and ren §16-77-18, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-7, 444-8, 444-9, 444-10, 444-11)

§16-77-63 Alternatives in lieu of revocation or suspension.

(a) Failure of any licensee, including RMEs, to comply with any provision of chapter 444, HRS, or this chapter shall be grounds for suspension, revocation, or refusal to renew the license. The board may, in its discretion and in lieu of suspension, revocation, or non-renewal of license, impose a bond, fine, or other condition acceptable to all interested parties. (b) To reinstate a license which was under suspension, the licensee may, in addition to meeting any conditions imposed for reinstatement, be required to show proof of workers' compensation, liability, and property damage insurance, submit a current financial statement, credit report, tax clearance, and as added proof of financial integrity, a bond in an amount to be determined by the board. [Eff 8/14/80; am and ren §16-77-63, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11, 444-16.5, 444-17)

§16-77-89 Place of business for out-of-state licensees.

(a) For out-of-state licensees, this section shall apply as to a place of business in the State. (b) Attorney's offices or other similar offices in the State may be listed as the place of business for out-of-state licensees; provided that an individual (or individuals) within the office is or acts as an agent or representative of the licensee who: (1) Can be served with notice and legal process; (2) Will receive all inquiries and other correspondence on behalf of the licensee; and (3) Will be responsible to see that the inquiries and other correspondence are expeditiously taken care of. If an attorney's office or other similar office in the State is listed as the place of business for an out-of-state licensee, information regarding the name of the agent or representative, and a telephone number where the agent or representative can be contacted shall be provided to the board and made available to the public. (c) Out-of-state addresses may be listed as the place of business for out- of-state licensees; provided that the contractor's license of the licensee is on inactive status. Inactive status is provided for in section 444-15, HRS. (d) Post office box numbers shall not be listed as the place of business for out-of-state licensees. (e) The contractor's license shall be prominently displayed in the out-of- state licensee's place of business in this State. [Eff 8/14/80; am and ren §16-77-89, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-14) (Imp: HRS §444-14)

§16-77-100 Recovery fund assessments.

(a) If a contractor fails to pay the contractors recovery fund fee provided in section 444-27, HRS, within sixty days from the date of the assessment, the contractor's license shall be automatically forfeited without a hearing. (b) A license forfeited under subsection (a) may be restored upon submittal of the assessed contractors recovery fund fee plus a penalty fee of ten dollars within thirty days of forfeiture. Failure to submit these fees within this time period shall require the contractor to apply as a new applicant. The contractor shall be required to pay these fees, in addition to meeting the other requirements contained in this chapter and chapter 444, HRS, as a condition of relicensure. [Eff and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-27) (Imp: HRS §444-27)

§16-77-32 General engineering, general building, and specialty contractors.

(a) Licensees who hold the "A" general engineering contractor classification shall automatically hold the following specialty classifications without further examination or paying additional fees: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (b) new pole lines C-3 asphalt paving and surfacing; C-9 cesspool; C-10 scaffolding; C-17 excavating, grading, and trenching; C-24 building moving and wrecking; C-31a cement concrete; C-32 ornamental guardrail, and fencing; C-35 pile driving, pile and caisson drilling, and foundation; C-37a sewer and drain line; C-37b irrigation and lawn sprinkler systems; C-38 post tensioning; C-43 sewer, sewage disposal, drain, and pipe laying; C-49 swimming pool; C-56 welding; C-57a pumps installation; C-57b injection well; C-61 solar energy systems. The "A" general engineering contractor may also install poles in all and replace poles, provided that the installation of the ground wires, insulators, and conductors is performed by a contractor holding the C-62 pole and line classification. The "A" general engineering contractor may also install duct lines, provided that the installation of conductors is performed by a contractor holding the C-13 electrical classification. (c) Licensees who hold the "B" general building contractor classification shall automatically hold the following specialty classifications without further examination or paying additional fees: (1) C-5 cabinet, millwork, and carpentry remodeling and repairs; (2) C-6 carpentry framing; (3) C-10 scaffolding; (4) C-12 drywall; (5) C-24 building moving and wrecking; (6) C-25 institutional and commercial equipment; (7) C-31a cement concrete; (8) C-32a wood and vinyl fencing; (9) C-42a aluminum and other metal shingles; (10) C-42b wood shingles and wood shakes. (d) Licensees who hold a specialty contractors license shall automatically hold the subclassifications of the licensee's particular specialty without examination or paying additional fees. [Eff 8/14/80; am and ren §16-77-32, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-8) (Imp: HRS §§444-7, 444- 8, 444-9, 444-10)

§16-77-13 When partnership or joint venture requires a license.

(a) No further license is required when all members of the joint venture or all partners in the partnership submit evidence to the board that all members or partners hold current contractor's licenses; provided that work to be performed is in a classification held by one of the members or partners. The board shall be notified in writing of all joint ventures and partnerships formed in this manner and the principal RME for the joint venture or partnership. (b) Joint ventures and partnerships shall be required to obtain a license when any member of the joint venture or any partner in the partnership does not hold a current contractor's license. All unlicensed members in a joint venture or partners in a partnership shall submit current financial statements, credit reports, and a tax clearance, and any other information requested by the board along with the application for licensure. (c) Except as otherwise provided by law, all joint ventures and partnerships shall be registered with the department's business registration division prior to engaging in any contracting activity. Joint ventures and partnerships shall provide proof of the registration to the board at the time of application. (d) A joint venture or partnership licensed under this section shall be required to notify the board of its dissolution within thirty days after its dissolution. Failure to notify the board of the dissolution within the thirty day period shall result in the licenses of the joint venture or partnership being automatically forfeited without a hearing. (e) The license of a joint venture or partnership shall be automatically forfeited without a hearing if the license of a member or partner is suspended, revoked, terminated, withdrawn, forfeited, or refused to be renewed. (f) Upon dissolution or forfeiture, the joint venture or partnership shall be prohibited from engaging in contracting and shall not bid upon or enter into new contracts. [Eff 8/14/80; am and ren §16-77-13, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-2, 444-11, 444-11.1, 444-12)

§16-77-55 Conditions for renewal of license.

(a) No license shall be renewed until the licensee continues to meet the requirements of sections 444-11, 444-11.1, and 444-17, HRS, and of this chapter including, but not limited to, proof of financial integrity. (b) (1) A current state tax clearance or proof of payment arrangement, and a statement disclosing or denying the existence of any liens, undisputed debts or judgments against the licensee relating to services or materials rendered in connection with operations as a contractor; and (2) Proof that the licensee has continuously maintained workers' compensation insurance, is authorized to act as a self-insurer under chapter 386, HRS, or is excluded from the requirements of chapter 386, HRS; (3) Proof that liability and property damage insurance has been maintained in the following amounts: Bodily injury $100,000 each person $300,000 each occurrence Property damage $ 50,000 each occurrence; and (4) Proof that any surety bond imposed by the board is current. (c) submitted to it To establish financial integrity, the licensee shall submit: A current state tax clearance or proof of payment arrangement, and a statement disclosing or denying the existence of any liens, undisputed debts or judgments against the licensee relating to services or materials rendered in connection with operations as a contractor; and Proof that the licensee has continuously maintained workers' compensation insurance, is authorized to act as a self-insurer under chapter 386, HRS, or is excluded from the requirements of chapter 386, HRS; Proof that liability and property damage insurance has been maintained in the following amounts: Bodily injury $100,000 each person $300,000 each occurrence Property damage $ 50,000 each occurrence; and Proof that any surety bond imposed by the board is current. The board may, at the time of renewal, consider any material concerning a licensee's financial integrity and shall give the licensee an opportunity to respond before the board to any allegations made concerning the licensee's financial integrity. (d) The board may refer any allegations concerning a licensee's lack of financial integrity for a hearing conducted pursuant to chapter 91, HRS. [Eff 8/14/80; am and ren §16-77-55, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11, 444-11.1, 444-15, 444-17)

§16-77-54 Renewal fees.

(a) Prior to September 30 of each even-numbered year, all licensees shall submit the appropriate renewal fees provided in chapter 16-53 and the (1) (2) (b) Consumer am and comp 444-15) following: A contractors education fund fee of five dollars; and A contractors recovery fund fee of ten dollars. These fees shall be payable to the "Department of Commerce and Affairs". [Eff 8/14/80; am and ren §16-77-54, 6/22/81; comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; ] (Auth: HRS §§26-9, 444-4, 444-15) (Imp: HRS §§26-9,

§16-77-101 Use of education fund fees.

(a) The board may authorize the use of the funds deposited in the contractors education fund for the consuming public, licensees, board members, and staff. (b) The education funds may be used for publications, media exposure, seminars, participation in national associations, classes, and any other educational purposes the board deems necessary. (c) The board may also use these funds to improve the services of the board's staff to the consuming public and licensees. [Eff and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-29) (Imp: HRS §444-29)

§16-77-24 Power of board to issue conditional licenses.

(a) The board may issue a conditional license, provided that the applicant or licensee submits in writing an agreement to comply with any condition the board may establish for the license, including but not limited to the provision that the license may be withdrawn at any time without a hearing upon determination by the board that the licensee has violated the conditions thereof or is otherwise not acting in the best interest of the public in the licensee's contracting business. (b) A conditional license may be issued: (1) When an applicant or licensee has not met all requirements for the issuance or renewal of a license but the board determines it to be in the best interest of the public to issue or renew the license on a conditional basis; (2) When an applicant or licensee has committed any act which may be grounds for the revocation, suspension, or refusal to renew a license under chapter 444, HRS; but the board has determined it to be in the best interest of the public to have the applicant or licensee obtain or retain the license on a conditional basis; or (3) Under other circumstances in which the board determines it to be in the best interest of the public that a person be issued a conditional license. (c) A conditional license shall be subject to the same requirements and license fees as an unconditional license and shall be renewable. Converting a conditional license to an unconditional license shall be by action of the board upon request by the licensee and there shall be no additional fees for this conversion. A conditional license shall remain in that status for at least one year. [Eff 8/14/80; am and ren §16-77-24, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-9, 444-11, 444-11.1, 444-12, 444-13)

§16-77-106 Oral testimony.

(a) The board shall accept oral testimony on any item which is on the board's agenda, provided that the testimony shall be subject to the following conditions: (1) Each person seeking to present oral testimony shall so notify the board not later than forty-eight hours prior to the meeting, and at that time shall state the item on which testimony is to be presented; (2) The board may request that any person providing oral testimony submit the remarks, or a summary of the remarks, in writing to the board; (3) The board may rearrange the items on the agenda for the purpose of providing for the most efficient and convenient presentation of oral testimony; (4) Persons presenting oral testimony shall, at the beginning of the testimony, identify themselves and the organization, if any, that they represent; (5) The board may limit oral testimony to a specified time period but in no case shall the period be less than five minutes, and the person testifying shall be informed prior to the commencement of the testimony of the time constraints to be imposed; and (6) The board may refuse to hear any testimony which is irrelevant, immaterial, or unduly repetitious to the agenda item on which it is presented. (b) Nothing in this section shall require the board to hear or receive any oral or documentary evidence from a person on any matter which is currently the subject of a proceeding which is subject to the hearings relief, declaratory relief, or rule relief provisions of chapter 16-201. (c) Nothing in this section shall prevent the board from soliciting oral remarks from persons present at the meeting or from inviting persons to make presentations to the board on any particular matter on the board's agenda. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §92-3) §16-77-107 Referral for hearing. The board may refer any disputed matter to a hearing pursuant to chapter 91, HRS, including but not limited to allegations concerning the experience or financial integrity of an applicant or a licensee. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11, 444-11.1, 444-16)

§16-77-11 Denial of license application.

(a) The board shall deny the issuance of a license when an application is insufficient or incomplete or where the applicant has failed to provide satisfactory proof that the applicant: (1) Meets the qualifications under section 444-11, HRS; (2) Is qualified by experience or training for the license sought; (3) Has the financial integrity to operate as a contractor. As proof of financial integrity, the board may require the applicant to post a surety bond as a condition for licensure; or (4) Meets any of the other requirements provided in chapter 444, HRS, or this chapter. (b) The board may deny issuance of a license when the applicant is known to have committed any of the acts for which a license may be suspended or revoked under chapter 444, HRS, or this chapter. (c) An application for a license shall be automatically rejected and the applicant shall be denied issuance of a license when: (1) The applicant or the applicant's RME, after having been notified to do so, fails to appear for the examination or reexamination, whichever the case may be. The executive officer, upon receiving a written request, may postpone the examination; provided that in no case shall the examination period extend over six months (refer to sections 16-77-43 and 16-77-45); or (2) The applicant, after having been notified to do so, fails to pay the required fees, fails to file a surety bond as required pursuant to this chapter, or fails to comply with any of the requirements in the law or rules of the board within one hundred twenty days from date of notification. (d) Any application for a license that has been denied shall remain in the possession of the board for two years and shall not be returned. [Eff 8/14/80; am and ren §16-77-11, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; am and comp 4/15/04; comp ] (Auth: HRS §444- 4) (Imp: HRS §§444-9, 444-10, 444-11, 444-11.1, 444-12, 444-15, 444-16.5, 444-17)

§16-77-75 Revocation, suspension, termination, withdrawal, forfeiture, and refusal to renew license of RME; fines.

(a) The license of an RME may be suspended, revoked, terminated, withdrawn, forfeited, or refused to be renewed if the license of the contracting entity for which the person is the RME is revoked, terminated, withdrawn, forfeited, suspended, or refused renewal pursuant to chapter 444, HRS, and this chapter. An RME may be fined if the contracting entity for which the person is the RME is fined for violating the provisions of chapter 444, HRS, and this chapter. (b) The license of the principal RME shall be automatically terminated upon issuance of a court order authorizing payment from the contractors recovery fund. The license of the subordinate RME who holds the classification within which arose the activities leading to a court order authorizing payment from the contractors recovery fund shall be automatically terminated upon issuance of a court order authorizing payment from the contractors recovery fund. [Eff 8/14/80; am and ren §16-77-75, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 2/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-17) (Imp: §§444-4, 444-17, 444-28)

§16-77-83 Advertising through the media.

A contracting entity advertising through any media shall be identified as a licensed contractor by listing the name under which the licensee is licensed or the licensee's trade name which has been filed with the board, and the licensee's license number. For the purpose of this section, "media" includes, but is not limited to, newspapers, magazines, radio, television, the Internet, and directories, including all listings in the yellow pages. [Eff 8/14/80; am and ren §16-77-83, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: §§444-4, 444-9.2) (Imp: HRS §444-9.2)

§16-77-69 License issued.

A contracting entity shall have a contractor's license prior to engaging in contracting. A contractor's license shall only be issued to a contracting entity if: (1) The contracting business is under the direct management of an individual who holds an appropriate and current license and who is the principal RME thereof; and (2) The contracting entity has met the financial integrity and capacity requirements to engage in the contracting business provided in this chapter and chapter 444, HRS. [Eff 8/14/80; am and ren §16-77-69, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: §444-4) (Imp: HRS §§444-1, 444-11, 444-12)

§16-77-44 Passing grade.

A grade of seventy-five per cent shall be a minimum passing grade for each part of any examination. [Eff 8/14/80; am and ren §16-77-44, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444- 10, 444-11)

§16-77-88 Change of address.

A licensee shall notify the board of any change of address within ten business days of the change. All notices required to be sent by the board under this chapter or chapter 444, HRS, shall be sent to the last known address on file with the board. [Eff 8/14/80; am and ren §16-77-88, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §444-14)

§16-77-39 Examination - part I.

All applicants for a contractor's license shall be required to take and successfully pass a written examination designed to test the applicant's general knowledge of the building, safety, health, labor, and lien laws of the State and of the basic administrative principles of the contracting business. [Eff 8/14/80; am and ren §16-77-39, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-10, 444-11)

§16-77-40 Examination - part II.

All applicants for a contractor's license shall be required to take and successfully pass a written examination designed to test the applicant's specialized knowledge in the particular classification in which the applicant desires to be licensed. [Eff 8/14/80; am and ren §16-77-40, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-10, 444-11)

§16-77-43 Notice of examination.

All applicants whose applications have been approved shall be given an application for examination and shall apply to the testing agency for examination. The board shall send notice to the applicant's last known address on file with the board. Examinations are given monthly. Unless applicants are otherwise notified, examinations shall be taken at the regularly scheduled time. [Eff 8/14/80; am and ren §16-77-43, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-10, 444-11)

§16-77-50 Date for filing.

All licensees shall complete and submit a renewal application as provided by the board together with all documents required under section 16-77-55 and pay the required fees, including the recovery and education fund fees, on or before September 30 of each even-numbered year. Failure, neglect, or refusal of any licensee to pay the fees and submit all required documents by September 30 of each even-numbered year shall result in the automatic forfeiture of the licensee's license without a hearing. The license shall be forfeited as of Octob er 1 of the even-numbered year. [Eff 8/14/80; am and ren §16-77-50, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04 comp ] (Auth: HRS §444-4) (Imp: HRS §§444-11.1, 444-13, 444-15)

§16-77-41 Examination not required.

An examination shall not be required when the applicant has previously qualified by written examination within a period of four years prior to application, or within four years from the date the applicant was last licensed in good standing or in an inactive status, provided the applicant applies for a license in the same classification in which the applicant previously qualified by examination. [Eff 8/14/80; am and ren §16-77-41, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-10, 444-11)

§16-77-72 RME for more than one contracting entity.

An individual may be an RME for more than one contracting entity if: (1) There is a common ownership of at least fifty-one per cent of the equity of each contracting entity for which the individual acts as the RME; (2) A contracting entity is a subsidiary of or joint venture with another contracting entity; (3) There is a direct family relationship between the RME and the officers, directors, members, managers, or partners of the other contracting entities for which the individual acts as the RME; or (4) There is a direct family relationship between the officers, directors, members, managers, and partners of all contracting entities for which the individual acts as the RME; and (5) The board is satisfied that it is in the public's interest and that the individual is competent, able, and qualified to be an RME for more than one contracting entity. [Eff 8/14/80; am and ren §16-77-72, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-9, 444-11)

§16-77-73 License nontransferable.

Any license issued under chapter 444, HRS, or this chapter shall be nontransferable. [Eff 8/14/80; am and ren §16-77-73, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: §§444-4, 444-9) §16-77-74 Repealed. [R 4/15/04]

§16-77-45 Failure to pass examination.

Applicants failing to obtain a passing grade on the first examination may schedule a second examination and shall pay the appropriate fees. Applicants who fail to pass the examination within six months shall file a new application and application fee. [Eff 8/14/80; am and ren §16-77-45, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §444-4)

§16-77-49 Notice of renewal.

Before August 15 of each even-numbered year the board shall mail to every licensee, except those whose license has been revoked, forfeited, terminated, withdrawn, or under suspension, a notice of renewal application to the last known address of the licensee on file with the board. [Eff 8/14/80; am and ren §16-77-49, 6/22/81; comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §444-15)

§16-77-51 Restoration of forfeited license.

Forfeited licenses may be restored by filing a renewal application along with all required documents, and paying the renewal fees, including the recovery and education fund fees, plus a penalty fee on or before November 30 of the renewal year. Licensees who fail to restore their licenses by November 30 shall be required to apply as new applicants, and shall file a new license application form along with all required supporting documents and fees. [Eff 8/14/80; am and ren §16-77-51, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp] (Auth: HRS §444-4) (Imp: HRS §444-15)

§16-77-97 Performance.

Licensees shall perform all work in a workmanlike manner. Workmanship shall conform to trade standards. [Eff 8/14/80; am and ren §16-77-97, 6/22/81; comp 11/7/83; comp 4/14/88; comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §444-4)

§16-77-87 All licensees to have place of business.

No license shall be issued or renewed to any contracting entity, except RMEs, who does not maintain a permanent place of business within the State where the contracting entity may be served notice and legal process, and where the contracting entity's license is prominently displayed. For purposes of this section, "permanent place of business" means a physical address, not a post office box number. [Eff 8/14/80; am and ren §16-77-87, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-14) (Imp: HRS §444-14)

§16-77-20 Power of board to accept equivalent knowledge.

The board in its discretion may accept any reasonably equivalent knowledge, training, or experience of the applicant in lieu of a specific experience requirement if upon investigation it makes a detailed finding to that effect. [Eff 8/14/80; am and ren §16-77-20, 6/22/81; am and comp 11/7/83; comp 4/14/88; comp 12/9/02; comp 4/15/04; comp 444-9, 444-10, 444-11) ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-7, 444-8,

§16-77-19 Power of board to approve training as experience.

The board in its discretion may approve certain technical training or business administration training as acceptable experience, but in no case shall the training count as more than one year of experience. [Eff 8/14/80; am and ren §16-77-19, 6-22/81; am and comp 11/7/83; am and comp 4/14/88; comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-7, 444-8, 444-9, 444-10, 444-11)

§16-77-52 Board may refuse to renew.

The board may refuse to renew or restore a license for failure or refusal of the licensee: (1) To properly complete the renewal application form and submit all documents required under section 16-77-55 and all fees required under section 16-77-54; (2) To comply with the rules of the board or section 444-17, HRS; or (3) To meet any of the qualifications under section 444-11, HRS, or this chapter. [Eff 8/14/80; am and ren §16-77-52, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444-4, 444-11, 444-11.1, 444-15, 444-17)

§16-77-15 Action on applications.

The board shall act upon the license application within one hundred and twenty days after the board's applications committee has determined that the application is proper. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§444-4, 444-16) (Imp: HRS §§444-9, 444-16)

§16-77-65 Board jurisdiction to proceed.

The lapsing, forfeiture, termination, or suspension of a license by operation of law, or by order or decision by the board or a court of law, or the voluntary surrender of a license by a licensee shall not deprive the board of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against the licensee, or to render a decision suspending or revoking the license. [Eff 8/14/80; am and ren §16-77-65, 6/22/81; am and comp 11/7/83; am and comp 4/14/88; comp 12/9/02; comp4/15/04; comp ] (Auth: HRS §444-4) (Imp: §§436B-22, 444-35)

§16-77-53 Proper filing authorizes contractor to operate.

The proper filing of a renewal application by September 30 of the even-numbered year authorizes operation as a contractor by the licensee until the actual issuance of the renewal license for the ensuing license period. The date upon which a renewal application is filed shall be determined: (1) If sent by mail, by the date of the United States Postal Service postmark appearing upon the envelope containing the application; or (2) If personally delivered, by the time stamp marked immediately upon receipt thereof. [Eff 8/14/80; am and ren §16-77-53, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §444-4) (Imp: HRS §§444- 13, 444-15)

§16-77-105 Administrative practice and procedure.

The rules of practice and procedure of the department, chapter 16-201, are incorporated by reference herein and made a part of this chapter. [Eff and comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: HRS §§91-2, 91-3, 91-8, 91-9, 444-4) (Imp: HRS §§91-2, 91-9)

§16-77-14 Posting of information in license application.

Whenever an applicant has filed a complete application, the name and address of the applicant, and the names and addresses and official capacity of the applicant's RME(s), officers, members, managers, and partners shall be publicly posted, as part of the board's investigation under section 444-16, HRS, for not less than fourteen days. No license shall be issued until the expiration of the posting period. [Eff 8/14/80; am and ren §16-77-14, 6/22/81; am and comp 11/7/83; comp 4/14/88; am and comp 12/9/02; comp 4/15/04; comp ] (Auth: §444-16) (Imp: HRS §§444-10, 444-14, 444-16)

fabrication

as used in defining the scope of work in various specialty classifications means field fabrication as opposed to shop fabrication which does not require a contractor's license.

employee

as used in section 444-2(6), HRS, means an individual who receives wages as sole compensation from, and works under the supervision of, an employer who is a contracting entity and who is liable for paying the social security and unemployment taxes on the individual and provides workers' compensation coverage for the individual.

partnership

includes, without limitation, general partnerships, limited partnerships, and limited liability partnerships.

current credit report

means a credit report covering at least the previous five years and issued within six months of the application date.

current financial statement

means a financial statement prepared within twelve months of the application date.

current proof of payment arrangement

means a payment arrangement issued by the department of taxation within six months of the application date, or September 30 of the even-numbered year if renewing a license.

current state tax clearance

means a tax clearance issued within six months of the application date, or September 30 of the even-numbered year if renewing a license.

owner builder exemption

means an owner or lessee of property is exempt from the contractors license law if the structure to be built or improved is for the owner's or lessee's own personal use and not for use or occupancy by the general public; provided that the structure so built or improved is not offered for sale or lease in its entirety or in part within one year after its completion; and, provided further that the owner or lessee registered for the exemption as provided in section 444-9.1, HRS.

building permit

means and includes any type of permit issued or required by the county or other local subdivision of the State as a condition precedent to the construction, alteration, improvement, demolition, or repair of any building or structure.

contracting entity

means any individual who has met the experience and financial integrity requirements for a license to engage in the contracting business or a corporation, partnership, joint venture, limited liability company, or other entity who has met the financial integrity requirements to engage in the contracting business and who has in its employ, a responsible managing employee.

financial integrity

means financial responsibility, financial capacity, and history of personal integrity to operate as a contractor and to engage in the contracting business.

responsible managing employee (RME)

means the individual who is a bona fide employee of the contracting entity that maintains a current contractor's license, and who qualifies the contracting entity for a contractor's license in the licensed classifications held by the individual.

home improvement contracting

means undertaking or holding oneself out as being able to undertake directly or indirectly renovation, remodeling, repairing, or otherwise improving a residential property for compensation.