A contractor's license expires on June 30th. If the contractor continues working without renewing until August 15th, what is the maximum penalty under HRS 444?
Correct Answer
B) $5,000
HRS 444 allows for penalties up to $5,000 for contracting without a valid license, plus potential criminal charges for continued violations.
Why This Is the Correct Answer
HRS 444 sets the maximum civil penalty for contracting without a valid license at $5,000. Any work performed after expiration is treated the same as unlicensed contracting — the contractor is operating without a legal license regardless of whether they simply forgot to renew.
Why the Other Options Are Wrong
Option A: $1,000
$1,000 is the threshold dollar amount that triggers the licensing requirement under HRS 444, not the penalty amount for violations.
Option C: $2,500
$2,500 is not a penalty figure specifically stated in HRS 444 for unlicensed contracting. It may be confused with fines in other regulatory contexts.
Option D: $500
$500 is far below the statutory maximum and does not reflect the serious nature of operating without a valid license under HRS 444.
Memory Technique
Think: '$5K to stay free' — the max penalty to avoid while unlicensed is $5,000. The number 5 also appears in HRS 444's enforcement teeth.
More Hawaii Questions
What is the minimum general liability insurance coverage required for Hawaii contractors under HRS 444?
A contractor's license expires on June 30th. What is the late renewal penalty fee in Hawaii?
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Under Hawaii's mechanics lien law, a subcontractor must provide preliminary notice within how many days of first furnishing labor or materials?
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