SR104.DOC

WHEREAS, the purpose of the Contractors License Board as stated in section 444-4(2), Hawaii Revised Statutes, is the protection of the general public; and

WHEREAS, the number of specialty license classifications currently exceeds one hundred ten; and

WHEREAS, each time a new specialty license classification is created it potentially precludes persons who had been hired to do that type of work under another classification from continuing to do that work; and

WHEREAS, complaints from the public against contractors often take months if not years to resolve because of technical issues relating to the scope of work each licensed contractor is licensed to do or which licenses are needed to enter into a construction contract; and

WHEREAS, the public, procurement agencies, and contractors themselves often do not know for certain which contractor can legally do a specific item of work; and

WHEREAS, technical errors relating to which specialty contractor can do specific items of work on public works projects is delaying the award of public works; and

WHEREAS, technical and clerical errors relating to the listing of specialty subcontractors on construction bid proposals for public works projects submitted pursuant to chapter 103D-302, Hawaii Revised Statutes, cost the public millions of dollars due to disqualifications of otherwise low and responsible bids; and

WHEREAS, protests of bid proposals due to allegations of improper listing of specialty contractors on public works projects is resulting in delaying the awards of public works projects and is jeopardizing Hawaii's receipt of American Recovery and Reinvestment Act funding; and

WHEREAS, there are many provisions in chapter 444, Hawaii Revised Statutes, that are highly restrictive without providing any increase in the protection of the general public; and

WHEREAS, every year there are numerous proposals to modify chapter 444, Hawaii Revised Statutes, indicating that many groups have concerns with chapter 444; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, that the Director of Commerce and Consumer affairs is requested to establish a task force to be named the Contractors Licensure Review Task Force (Task Force); and

BE IT FURTHER RESOLVED that the Task Force consist of the following members to be appointed by the Director of Commerce and Consumer Affairs:

(1) Three representatives from the General Contractors Association of Hawaii;

(2) Three representatives from the Building Industry Association of Hawaii;

(3) Two representatives of specialty contractors;

(4) One representative of the specialty trades;

(5) One representative of the basic trades;

(6) One representative of the Contractors License Board;

(7) One representative from the Department of Commerce and Consumer Affairs; and

(8) One representative from the State Procurement Office; and

BE IT FURTHER RESOLVED that the purpose of the Task Force is to review chapter 444, Hawaii Revised Statutes, title 16, chapter 77, Hawaii Administrative Rules, and the contractor licensing laws of other states with the intent of significantly reducing the number of contractor classifications and providing a simpler contractor licensing structure. The goal of the Task Force is to protect the public and taxpayers of this State and not the special interests of the contracting community; and

BE IT FURTHER RESOLVED that the members of the Task Force select a chairperson from among themselves, and the chairperson is requested to convene meetings of the Task Force; and

BE IT FURTHER RESOLVED that the members of the Task Force serve without compensation or reimbursement for expenses; and

BE IT FURTHER RESOLVED that the Task Force be situated in the Department of Commerce and Consumer Affairs for administrative purposes; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to assist the Task Force in drafting its recommendations and proposed legislation; and

BE IT FURTHER RESOLVED that the Task Force is requested to submit a report of its findings and recommendations, including any implementing legislation, to the Legislature no later than twenty days before the convening of the Regular Session of 2011; and

BE IT FURTHER RESOLVED that the Task Force cease to exist after June 30, 2011; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Commerce and Consumer Affairs, the Contractors License Board, the General Contractors Association of Hawaii, the Building Industry Association of Hawaii, the Legislative Reference Bureau, and the State Procurement Office.

	OFFERED BY:	_____________________________

Report Title:

Requesting a taskforce to help simplify specialty contractor licensing.

THE SENATE	S.R. NO.	104
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII