Under HRS 444, which of the following is NOT a valid reason for contractor license suspension?
Correct Answer
A) Filing bankruptcy
Filing bankruptcy alone is not grounds for license suspension under HRS 444, though other financial irresponsibility may be.
Why This Is the Correct Answer
Filing for bankruptcy protection is a federal legal process and, by itself, is not an enumerated ground for license suspension under HRS 444. The statute focuses on conduct — fraud, abandonment, criminal conviction related to contracting, failure to pay fees — rather than on a contractor's financial restructuring through the courts.
Why the Other Options Are Wrong
Option B: Conviction of a felony related to contracting
Conviction of a felony related to contracting is explicitly a disciplinary ground under HRS 444. A criminal record demonstrating dishonesty or unfitness in the trade directly threatens public protection.
Option C: Abandoning a construction project
Abandoning a construction project without legal justification harms consumers and is a clearly enumerated ground for suspension or revocation under Hawaii contractor law.
Option D: Failure to pay required fees
Failure to pay required fees (license fees, renewal fees, fund assessments) gives the DCCA cause to suspend or lapse a license because the contractor has not fulfilled their statutory obligations.
Memory Technique
Remember 'FAF' for valid suspension grounds: Felony conviction, Abandonment, Failure to pay fees. Bankruptcy does not fit the 'misconduct' pattern required by HRS 444.
More Hawaii Questions
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