STAND. COM. REP. NO.  53-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1500

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1500 entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

The purpose of this measure is to define "incidental and supplemental work" for purposes of determining licensing requirements for general engineering and general building contractors.

The Iron Workers Stabilization Fund provided testimony in support of this measure.  The Contractors License Board; General Contractors Association of Hawaii; Building Industry Association of Hawaii; S&M Sakamoto, Inc.; Warrior Contracting, LLC; Henry's Equipment Rental and Sales, Inc.; LYZ, Inc.; Ledcor Construction Hawaii, LLC; Hawaii Laborers-Employers Cooperation and Education Trust; The Pacific Resource Partnership; Hawaii Construction Alliance; TOMCO CORP.; Lindemann Construction, Inc.; Healy Tibbitts Builders, Inc.; and Laborers' International Union of North America, Local 368 provided testimony in opposition to this measure.  The Subcontractors Association of Hawaii provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Deleting the definition of incidental and supplemental work;

     (2)  Allowing general engineering contractors and general building contractors to perform work that is subordinate to but necessary to the completion of the project and for which the contractors do not have a license, if the value of the work performed is equal to or less than one percent of the total contract price; and

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

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1500, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1500, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

MARK M. NAKASHIMA, Chair