STAND. COM. REP. NO. 3553

Honolulu, Hawaii

RE: H.B. No. 1880

H.D. 3

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 1880, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRICAL CONTRACTORS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Extend the sunset date of Act 65, Session Laws of Hawaii 2013, which provides a limited exemption to the licensing requirements for certain individuals in situations when a public utility must retain qualified individuals to work with high voltage (six hundred volts or higher) who are not licensed in the State but are otherwise deemed qualified by the public utility; and

(2) Require the Departments of Labor and Industrial Relations and Business, Economic Development, and Tourism to submit reports to the Legislature regarding certain activities associated with qualified high voltage electrical contractors.

Your Committee received testimony in support of this measure from the Board of Electricians and Plumbers; Chamber of Commerce Hawaii; Hawaiian Electric Company, Inc.; and Land Use Research Foundation of Hawaii. Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations. Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism and International Brotherhood of Electrical Workers, Local Union No. 1186, AFL-CIO.

Your Committee finds that, other than utility electrical workers, most in-state electrical workers are only experienced in low voltage, meaning one hundred twenty to four hundred eighty volts, work that is common in most residential homes and commercial buildings. Your Committee further finds that high voltage work requires additional skills, training, and experience with related tools and equipment that are gained through a specific apprenticeship program.

Your Committee additionally finds that, due to the lack of sufficient in-state high voltage electricians, splicers, and linemen, and to address the need of an electric utility to retain the services of individuals qualified to work with high voltage power lines, Act 65, Session Laws of Hawaii 2013 (Act 65), provides a limited exemption to the licensing requirements for certain individuals in situations when an electric utility must retain qualified individuals to work with high voltage (six hundred volts or higher) who are not licensed in the State but are otherwise deemed qualified by the electric utility. However, Act 65 sunsets on June 30, 2018. This measure therefore extends the sunset date of Act 65 for five years, to June 30, 2023, which ensures that electric utilities can continue to retain the services of qualified out-of-state high voltage workers if needed, who could safely assist the utility in activities including storm restorations, complex and specialized maintenance, and emergency restorations that could potentially impact the health and safety of the State's residents.

Your Committee has heard the concerns that the Departments of Labor and Industrial Relations and Business, Economic Development, and Tourism do not collect and do not have the current capacity to provide the specific information requested by this measure. Your Committee understands these concerns and concludes that amendments to this measure are therefore necessary.

Your Committee has amended this measure by:

(1) Specifying that the Board of Electricians and Plumbers, rather than the Departments of Labor and Industrial Relations and Business, Economic Development, and Tourism, shall submit reports to the Legislature;

(2) Clarifying the contents of the reports to be submitted to the Legislature by the Board of Electricians and Plumbers;

(3) Changing its effective date to June 29, 2018; and

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

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1880, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1880, H.D. 3, S.D. 2.

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

________________________________

ROSALYN H. BAKER, Chair