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Committee advances Labor Broker Registration Act requiring brokers in construction to register
Summary
House Bill 678, the Labor Broker Registration Act, was favorably reported as amended by the House Labor & Industry Committee; it would require labor brokers in the construction industry to register with the Department of Labor and Industry, create a public registry, and authorize investigations and penalties.
The House Labor & Industry Committee voted to report House Bill 678, the Labor Broker Registration Act, which would require labor brokers operating in the state's construction industry to register with the Department of Labor and Industry, maintain a public registry of registered brokers, and establish investigatory and penalty provisions for violations. Committee members adopted Amendment A02500, which revises penalties and requires the department to produce educational materials; the bill was favorably reported on a roll call that recorded 14 yes and 11 no votes.
Staff summarized the purpose: to create an application and registration process, a public website listing registered labor brokers, and an investigation and penalty framework. Chairman supporters said the amendment and technical changes improved the bill and that continued work would take place before floor consideration.
During debate, lawmakers raised concerns about the bill’s definition of a successor entity and its debarment consequences; Chairman James offered an amendment to refine debarment terms and later withdrew it for further floor consideration. Representatives questioned whether routine on‑site coordination among subcontractors — such as an electrician asking a drywall worker to make a small adjustment — could be misconstrued as "exclusive control" and unintentionally sweep legitimate subcontractors into the registration and debarment regime. Staff responded that the definition requires elements like authority to hire and fire and direction of methods and means of construction work before a business meets the successor entity standard for debarment.
Some members said the amendment made the bill stronger and welcomed stakeholder engagement; others remained concerned about debarment and asked for additional data from industry participants. Chairman James said he would work with members to craft a bipartisan floor amendment to address those issues before final House action.
What’s next: House Bill 678 was favorably reported as amended and will go to the House floor; the chair indicated further amendments on debarment and related definitions are likely before final passage.
