STAND. COM. REP. NO. 1763

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1149
                                     S.D. 1
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 1149, S.D. 1, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ENFORCEMENT OF WAGE LAWS,"

begs leave to report as follows:

     The purpose of this bill is to clarify that the Director of
Labor and Industrial Relations is not liable for attorney's fees
and other costs of the defendant in cases involving the
collection of unpaid wages.

     Testimony in support of this bill was received from the
Department of Labor and Industrial Relations, the Construction
Industry Legislative Organization, Inc., the Building Industry
Association of Hawaii, the General Contractors Association of
Hawaii, and Associated Builders and Contractors, Inc.

     Your Committee finds that the suspension provisions and
imposition of penalties including a flat penalty of ten percent
of the contract amount for a second violation in current laws are
harsh and inequitable.  Your Committee believes that amendments
to this measure will deter nonpayment of wages in a fair and
reasonable manner.

     Your Committee has amended this bill by:

     (1)  Changing the penalties for first, second and third
          violations;

 
 
                                 STAND. COM. REP. NO. 1763
                                 Page 2

 
     (2)  Defining "offense" to mean each section of the chapter
          for which the contractor is cited; provided that with
          respect to wage and overtime violations, each employee
          and each project shall constitute a separate offense;

     (3)  Changing the terms of suspension for violations when
          the person or firm fails to pay wages found due;

     (4)  Repealing the provision which allowed the Director to
          shorten the period of suspension; and

     (5)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 1149, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 1149, S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair