STAND. COM. REP. 2339

Honolulu, Hawaii

, 2004

RE: S.B. No. 2119

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2119 entitled:

"A BILL FOR AN ACT RELATING TO DESIGN PROFESSIONAL CONCILIATION PANEL,"

begs leave to report as follows:

The purpose of this measure is to require the court to consider whether a fair and reasonable outcome for all parties would result from a determination that a claim is suitable for review by the Design Professional Conciliation Panel (DPCP).

This measure also removes the enumerated criteria which the court could consider in making a determination of the suitability of a claim for review by the DPCP.

Testimony in support of this measure was submitted by the American Institute of Architects Hawaii State Council, the Coalition of Hawaii Engineers and Architectural Professionals, and Pacific Structural Consultants, Inc. Comments on this measure were submitted by the Department of Commerce and Consumer Affairs and the Consumer Lawyers of Hawaii.

Your Committee finds that the DPCP was established to provide a consumer with a forum for the resolution of claims against a design professional that is more cost effective than litigation. Your Committee further finds that under the current law, a court is permitted to consider a number of factors in determining whether a claim is suitable for review by the DPCP. However, the need for consideration of these factors acts to severely limit the number of cases which may be directed to the DPCP, thereby requiring the need to proceed to trial on the merits, an occurrence that is often unnecessary and costly. Therefore, your Committee determines that the removal of specific criteria for the court's consideration will enable a court to instead consider a claim in its entirety and make a determination as to whether a fair and reasonable outcome for the parties would result from review by the DPCP.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2119 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair