The Auditor
State of Hawai‘i

A Comparative Study of the Department of Commerce and Consumer Affairs Professional and Vocational Licenses

Report No. 05-14
December 2005

 

Foreword

Introduction

License Summaries

Accountant, Certified Public

Acupuncture

Chiropractor

Contractor

Electrician, Journeyman

Electrician, Supervising

Optometrist

Osteopathic Physician

Pharmacist

Pharmacy

Physician

Physician Assistant

Plumber, Journeyman

Plumber, Master

Podiatrist

Veterinarian

 

CONTRACTOR

Summary Overall Rank License Fees Table

Summary

Hawai‘i
issues a general contractor’s license which does not distinguish between residential or commercial work and uses multiple specialty classifications to limit the type of work a licensee may engage in. Twenty-seven states issue contractor licenses or registrations comparable to Hawai‘i’s license. In six states, contractor regulation is a city or county function. Other states issue specialty contractor licenses, such as residential contractor, asbestos contractor, or public works contractor, but do not license general building contractors. Only states that issue contractor licenses similar to Hawai‘i’s are included in this report.  

Requirement

Hawai‘i

Category Rank

National Median

OVERALL RANK (quintile)

1

 

 

Licensing

State license required.

1

State license or registration required. Twenty-seven states require a license or registration at the state level.

Education

None

5

None. Only Oregon requires education.

Examination

Yes

1

Yes. Nineteen states require passing a written examination.

Experience

4 years

1

Not required. Eleven states require experience ranging form two to five years.

Fees

$725

1

$400

Continuing Education

None

5

None. Only Alaska requires continuing education.

Reciprocity or Endorsement

No

1

Yes. Fifteen states have some form of reciprocity or endorsement.

Insurance, bond, tax clearance, financial statement, and other requirements

Hawai‘i requires liability insurance, worker’s compensation, a financial statement, a credit report, a tax clearance, and business registration.

2

Most states require insurance or bond and worker’s compensation insurance; half require a financial statement.

Responsible Managing Employee (RME)

Required with additional fees.

1

Not required. Nine states require an RME.

 Note on Contractor ranking:

1 = most difficult, most requirements, highest fees.
5 = least difficult, fewest requirements, lowest fees.

Licensing:  Twenty-three states require contractors to be licensed at the state level, four require contractors to register, and twenty-three states do not require a license or registration at the state level. In six states, licensing or registration is by local government. Nine states require a separate license for residential contractors.

Education:  Only Oregon specifically requires educational courses.

Examination: States were assigned a rank of 1 if an examination is required and a rank of 5 if no examination is required.

Experience:  States are assigned a rank of 1 if a there is an experience requirement and and a rank of 5 if there is no requirement

Fees: Rank is based on the cost of an initial license and an annualized renewal fee. This reflects the cost of obtaining and renewing a license. In addition to the contractor’s license, Hawai‘i requires each contractor to have a responsible managing employee (RME). There is an initial fee of $385 and a biennial renewal fee of $160 for the RME. 

Continuing education: Only Alaska requires continuing education. 

Reciprocity:  States were assigned a rank of 1 for no reciprocity and a rank of 5 if some form of reciprocity or endorsement is available. 

Insurance, bond, tax clearance, etc.: Most of the states require some form of insurance or bond and worker’s compensation coverage. Only two states require a credit report and two require a tax clearance. Ranking was based on whether a state required (1) insurance or bond, (2) financial statement or credit report, and (3) tax clearance or some other requirement. States were assigned ranks of 1 or 5 depending on whether they imposed the requirement, and an average of the three determined rank for this category. 

Responsible Managing Employee: Nine states require a RME with varying requirements.

Sources: In addition to state websites, we referred to Contractor's State Licensing Information Directory, National Association of State Contractors Licensing Agencies, 2005 Edition.