STAND. COM. REP. NO. 2392

Honolulu, Hawaii

RE:    S.B. No. 2220

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2220 entitled:

"A BILL FOR AN ACT RELATING TO CONSTRUCTION SITES,"

begs leave to report as follows:

     The purpose of this measure is to establish a construction site inspection task force to investigate and inspect construction sites for violations of the workplace and safety laws including unlicensed contractor activity, undocumented workers, and workplace safety violations. 

     Your Committee received testimony in support of this measure from the Subcontractors Association of Hawaii; the Hawaii Laborers Union; the Building Industry Association of Hawaii; the Hawaii Electricians Training Fund; the Hawaii Building and Construction Trades Council, AFL-CIO; The Pacific Resource Partnership; the Electrical Contractor's Association of Hawai‘i; the General Contractors Association of Hawaii, and one individual.  Testimony in opposition to the measure was received from the Department of Labor and Industrial Relations.  Comments on this measure were received from the Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs, the Contractors License Board, and the Electricians Union.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that unlicensed or unlawful construction activity undermines the State's regulatory system and puts contractors who do follow the law at a disadvantage since unlicensed operators cut corners by ignoring licensing, workplace safety, labor, and tax laws.  Your Committee finds that establishing a task force to investigate the scope and prevalence of construction violations in the State will enhance the ability of all affected departments to enforce existing laws.  Your Committee further finds that charging the task force with developing a plan to coordinate the efforts of the Department of Commerce and Consumer Affairs, Department of Taxation, and various divisions of the Department of Labor and Industrial Relations will help to ensure that enforcement efforts are as efficient and cost-effective as possible.  Your Committee appreciates the efforts of the stakeholders who worked diligently to develop this measure into its current form. 

     Your Committee has amended this measure by:

     (1)  Removing the contents of this measure from chapter 444, Hawaii Revised Statutes, and instead including them in new session law;

     (2)  Clarifying that the task force created by this measure shall be convened by and not administratively attached to the Department of Commerce and Consumer Affairs; 

     (3)  Changing the focus of the task force created by this measure from immediate enforcement to investigation, advisement, and creation of an enforcement process in order to ensure maximum efficiency and effectiveness in the enforcement program that is ultimately adopted;

     (4)  Specifying that the task force shall include representatives of the Disability Compensation, Occupational Safety and Health, and Unemployment Insurance Divisions of the Department of Labor and Industrial Relations;

     (5)  Directing the task force to report its findings and recommendations to the Legislature before the convening of the 2011 regular legislative session; and

     (6)  Making technical, nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2220, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2220, S.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ROSALYN H. BAKER, Chair