Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1240 entitled:

begs leave to report as follows:

The purpose of this measure is to require government contractors to pay a specified minimum wage and provide days off to employees.

Your Committee received testimony in support of this measure from the Hawaii State AFL-CIO and American Friends Service Committee.

This measure applies to companies working on government contracts. The minimum wage is required to be $9.43 per hour. The contractor is required to give at least twelve paid days off per year for sick leave, vacation, and personal necessity. This measure also provides a remedies procedure for the employee and the State against any violating contractor.

This measure is intended to raise the standard of living for many workers who are employed on government contracts. Due to the high cost of living in Hawaii, your Committee feels that government has a responsibility to ensure that companies contracting with the government pay their workers a livable minimum wage.

Your Committee has amended this measure to make technical, nonsubstantive amendments for proper drafting and to correct statutory language.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1240, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1240, S.D. 1, and be referred to the Committee on Ways and Means.