Hawaii-2018-HR67-Introduced

WHEREAS, it is of paramount importance to protect public safety and welfare in any sort of construction work; and

WHEREAS, in construction work, a structural engineer reviews all plans (known as S plans) that deal with the structural integrity of the building, and the structural engineer must approve the plans by stamping and validating these plans; and

WHEREAS, the C-6, C-31, C-32, C-35, C-38, C-41, C-48, and C-56 specialty subcontractor's license and other similar licenses fall under the purview of a structural engineer and must meet all requirements set forth in national and international standards; and

WHEREAS, the structural engineer must ensure that subcontractors and workers have sufficient knowledge and experience to work on a construction project; and

WHEREAS, the case District Council 50, of the International Union of Painters and Allied Trades, et al., v. Lopez, 298 P.3d 1045 (2013), dealt with the issue of whether Allied Pacific, a general contractor performing renovation work at Lanakila Elementary school, could undertake glass work as "incidental and supplemental" to its automatically held C-5 specialty subcontractor license and without a C-22 specialty contractor license; and

WHEREAS, the Hawaii Supreme Court held that the Contractors License Board of the Department of Commerce and Consumer Affairs erred in its interpretation of what is deemed "incidental and supplemental" in this case; and

WHEREAS, the Contractors License Board had erroneously decided that any work that constitutes less than a majority of the work can be deemed "incidental and supplemental" work; and

WHEREAS, the Contractors License Board has attempted to pass an administrative rule to this effect; and

WHEREAS, although under chapter 444, Hawaii Revised Statutes, the Contractors License Board has the authority to administer, review, and grant contractors and subcontractors licenses, it may be more useful to have an independent agency, like the Auditor's Office, evaluate the need for new construction licensing requirements; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-ninth Legislature of the State of Hawaii, Regular Session of 2018, that the Auditor is requested to conduct a review about allowing no "incidental and supplemental" work under the S plans of a structural engineer's purview, including specialty licenses and C-6, C-31, C-32, C-35, C-38, C-41, C-48, and C-56 licenses; and

BE IT FURTHER RESOLVED that the Auditor is requested to include in the review:

(1) An estimate of the number of licenses granted by the Contractors License Board;

(2) The possible implications if less than a majority of the work performed is deemed "incidental and supplemental";

(3) An examination of whether there are any public-safety issues involved in the performance of "incidental and supplemental" work;

(4) A review of best practices in construction projects;

(5) An examination of whether regulating individuals rather than companies would better protect public safety and welfare;

(6) A review of all construction-project disasters in Hawaii related to this issue; and

(7) Any proposed legislation; and

BE IT FURTHER RESOLVED that as the Auditor conducts the review, the Auditor is requested to meet with stakeholders regarding this issue, including construction unions, construction companies, structural engineers, steel fabricators and erectors, and trades councils; and

BE IT FURTHER RESOLVED that no later than 20 days prior to the convening of the Regular Session of 2019, the Auditor is requested to submit to the Legislature a report of the Auditor's findings and recommendations, including any proposed legislation; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor, Governor, and Director of Commerce and Consumer Affairs.

OFFERED BY:

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Report Title:

"Incidental and Supplemental" Work; Licensing; Contracting

HOUSE OF REPRESENTATIVES	H.R. NO.	67
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII