STAND. COM. REP. NO.  92

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1213

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1213 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT SECURITY,"

begs leave to report as follows:

The purpose of this measure is to expedite the employment and confirmation of individuals or organizations as independent contractors by establishing a clearer definition of "independent contractor" and a process for certification by the Department of Labor and Industrial Relations as an independent contractor.

The Chamber of Commerce Hawaii; Maui Chamber of Commerce; Hawaii Island Chamber of Commerce; VIP Foodservice; Vantaggio HR ltd.; The Wright Company, LLC; Feed My Sheep, Inc.; National Federation of Independent Business; Society for Human Resource Management Hawaii; Island Landscape; Querubin & Associates, LLC; Entertainment Maui LLC; Kika, Inc.; Monsanto; CMS Group; MKC Enterprises; Kalalea Fire; Bev Gannon Restaurants; Eric Lee & Lee Enterprises; RicardoWEPA; No'eau Productions; Beach Activities of Maui; DeSilva Meeting Consultants; Avante-Guard LLC; Island Events LLC; and numerous individuals testified in support of this measure.  The Department of Labor and Industrial Relations; ILWU Local 142; Hawaii Association of Realtors; Whalers Realty Management Company Inc.; and an individual testified in opposition to this measure.  The National Kidney Foundation of Hawaii commented on this measure.  

     Your Committee has amended this measure by:

     (1)  Establishing the "independent contractor" definition in a new section in Chapter 383, Hawaii Revised Statutes, instead of amending section 383-6, Hawaii Revised Statutes;

     (2)  Including a $10 filing fee for certification;

     (3)  Changing the effective date to July 1, 2115, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for 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. 1213, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1213, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

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

____________________________

MARK M. NAKASHIMA, Chair