South Dakota to Hawaii: residential contractor license reciprocity

1. 1Law / code exam. Pass a law, rules, or code exam. Part I of the contractor examination: the building, safety, health, labor and lien laws of Hawaii and the basic administrative principles of the contracting business. Seventy-five percent is needed to pass. It is never waived for an out-of-state applicant. The Board strongly recommends obtaining a copy of the contractor licensing law and rules before sitting it..
2. 2Trade exam. Pass the destination's trade exam. Part II of the contractor examination: trade knowledge in the classification requested, here Class B general building. Seventy-five percent is needed to pass. The applicant registers with the testing agency only after the Board approves the application and issues an examination approval letter, and must pass both parts within six months or file a new application and fee. A failed part may be retaken for a further fee inside that six-month window..
3. 3Application fee. Pay the application fee ($50). $50 nonrefundable application fee for each application filed, payable to Commerce and Consumer Affairs. More than one classification may be requested on a single application, but a contracting entity and its Responsible Managing Employee file separate applications and pay the fee separately, so an inbound company and its qualifying person pay $50 each. A further $10 contractors education fund fee accompanies every application, and a dishonored payment carries a $25 service charge..
4. 4Exam fee. Pay the exam fee. Examination fees are paid directly to the testing agency when the approved applicant registers, and are charged for each part taken. The Board's published FAQ lists $75 per part, with most classifications taking both parts, but that document dates from before the examinations moved to PSI Services LLC, so confirm the current amount with PSI on (833) 333-4754 before registering. An interpreter, if the Board approves one, adds $100 to the examination fee..
5. 5License fee. Pay the license or certificate fee. The Board assesses the license fee after the application is approved and the examinations are passed, telling the applicant the exact amount at that point. Its published FAQ gives $663 for a contracting entity or sole proprietor licensed in the first year of the two-year cycle and $494 in the second, and $438 or $334 on the same split for a Responsible Managing Employee, so budget for both. Licenses run to September 30 of the next even-numbered year whatever date they were issued. On-time renewal currently costs $338 for an entity or sole proprietor, $208 for an RME and $160 for an inactive license, plus $5 education fund and $10 recovery fund fees..
6. 6Financial responsibility. Show financial responsibility. A current financial statement, dated within one year, that is compiled, reviewed or audited and accompanied by an independent accountant's report from a CPA or public accountant holding a current permit to practice; an accountant licensed in another state attaches a copy of that license. For compiled and reviewed statements the applicant also signs the Board's own Financial Statement form CT-02 whether or not the accountant used it. The Board publishes no minimum net worth or working capital figure: it weighs the statement together with the credit reports and the tax clearance to decide whether the applicant has financial integrity, and whether to impose a bond. RMEs do not file a financial statement; the entity or sole proprietor does..
7. 7Surety bond. Post a surety bond (if applicable). A surety bond is not automatic in Hawaii. The Board may require one as proof of financial integrity, and sets the amount case by case; the bond form leaves the penal sum blank. Where one is imposed, it runs to the State of Hawaii on form CT-09, is conditioned on compliance with HRS chapter 444 and on paying employees' wages, is continuous, and can be canceled by the surety only on thirty days' written notice. Both the applicant and the surety notarize it. After a licensee has maintained the bond for at least a year it may ask the Board to waive it on proof of financial integrity, supported by current credit reports, financial statements and a tax clearance..
8. 8Insurance. Carry the required insurance. A certificate of comprehensive liability and property damage insurance with minimum limits of $100,000 bodily injury each person, $300,000 bodily injury each occurrence and $50,000 property damage each occurrence, plus a workers' compensation certificate from a carrier authorized in Hawaii or proof of self-insurance or exclusion. An out-of-state contractor may use a non-admitted carrier where the producer qualifies for an exemption under HRS 431:9A-104(b)(6). Coverage must be continuous for the life of the license: a lapse forfeits both the entity and the RME license automatically, and if it is not restored within sixty days both must apply as new applicants. Certificates are filed fastest through the Board's online insurance submittal system..
9. 9Business license. Obtain a business license. The contracting entity must be registered with the DCCA Business Registration Division before it can be licensed: a Hawaii corporation or LLC files a stamped copy of its articles, a foreign corporation its certificate of authority and a partnership its registration statement, and an entity registered for more than a year attaches a Certificate of Good Standing issued within the past year. Any trade name must be separately registered and a filed-stamped copy supplied. A current Hawaii tax clearance, issued within six months, is filed with the application and again at every renewal, and the name on it must match the license name exactly..
10. 10Background check. Complete a background check. A current and complete credit report for each officer, partner, manager or member, issued not more than six months earlier and covering at least the previous five years, showing each current and past debt, its status and any public records; a summary or a bare credit score is not accepted. Where a partner or member is itself a business, the credit reports of its officers or a comprehensive business credit report are filed instead. The RME files a credit report with the RME application as well..
11. 11Continuing education. Complete continuing education (if applicable). Hawaii imposes no continuing education requirement on contractors. Renewal by September 30 of each even-numbered year instead turns on continued financial integrity: a current tax clearance or payment arrangement, a statement about any liens, undisputed debts or judgments, proof that workers' compensation and liability coverage have been maintained without a break, and proof that any bond the Board imposed is current..
12. 12Other. The application, fee and every supporting document must reach the Board's Honolulu office on or before the first Tuesday of the month before the meeting at which it will be considered; the Board meets monthly except in December, and faxed or emailed copies are not accepted. An application is abandoned if licensure is not completed within a year of filing or the examinations are not passed after eligibility, and the Board keeps a denied application for two years. A Social Security number must be given or the application is treated as deficient..

Published fees on this path total $50, excluding exam-vendor fees, bonds, and insurance.