STAND. COM. REP. NO. 1561

Honolulu, Hawaii

, 2019

RE: S.B. No. 767

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 767, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Raise the contractor licensing law's handyman exemption threshold amount from $1,000 to $1,500;

(2) Limit the handyman exemption to residential repairs or minor renovation projects;

(3) Require persons performing projects or operations under the handyman exemption to provide their name and contact information to the Department of Commerce and Consumer Affairs (DCCA); and

(4) Require the Department of Commerce and Consumer Affairs to adopt rules and submit annual reports to the Legislature detailing any complaints received regarding projects or operations performed under the handyman exemption.

The Hawai‘i Association of REALTORS, Marie Hansen Properties, REALTORS Association of Maui, and several concerned individuals submitted testimony in support of this measure. The Painting Industry of Hawaii Labor Management Cooperation Trust Fund; Hawaii Tapers Market Recovery Trust Fund; Hawaii Glaziers, Architectural Metal Glassworkers Local Union 1889 AFL-CIO Stabilization Trust Fund; Carpet, Linoleum and Soft Tile Local Union 1926 Market Recovery Trust Fund; International Union of Painters and Allied Trades, District Council 50; Hawaii Building and Construction Trades Council, AFL-CIO; and a concerned individual submitted testimony in opposition. The Department of Commerce and Consumer Affairs, Subcontractors Association of Hawaii, The Chamber of Commerce Hawaii, Building Industry Association of Hawaii, Hawaii Regional Council of Carpenters, Pacific Resource Partnership, and a concerned individual submitted comments.

Your Committee has amended this measure by:

(1) Applying the threshold limitation amount to the cost of labor and materials only;

(2) Removing the limitation that this exemption only applies to residential repairs or minor renovation projects;

(3) Removing the requirement that persons acting under the handyman exemption must submit their names to DCCA;

(4) Removing the requirement that DCCA adopt rules and submit annual reports;

(5) Removing the sunset date; and

(6) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 767, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 767, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

ROY M. TAKUMI, Chair