STAND. COM. REP. NO. 1201

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 161
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.C.R. No. 161 entitled:

     "SENATE CONCURRENT RESOLUTION REQUESTING THE HAWAII
     CARPENTERS' TRUST FUND AND OTHER UNION TRUST FUNDS TO WORK
     WITH THE CONSTRUCTION INDUSTRY EMPLOYERS TO RESOLVE
     DIFFERENCES OVER THE EMPLOYERS' OBLIGATION TO MAKE
     CONTRIBUTIONS TO THE UNION TRUST FUND,"

begs leave to report as follows:

     The purpose of this measure is to request that the union
trust funds work with construction industry employers to resolve
differences over the employer's obligation to make contributions
to the union trust fund.

     Testimony in support of this measure was received from
Hidano Construction, Inc.

     Your Committee finds that the Hawaii Supreme Court has held
that construction industry employers must contribute to union
trust funds for their workers or have liens placed on their
improvements or property.  In addition, general contractors are
liable for payments if a subcontractor fails to contribute to the
union trust fund.

     Your Committee feels that it would be in the best interest
of the industry and the union trust fund administrators to meet
and work out an agreement on the amounts that should be required
of employers to pay into the trust funds.

 
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                                   STAND. COM. REP. NO. 1201
                                   Page 2



     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee concurs with the intent and purpose of
S.C.R. No. 161, and recommends its adoption.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
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