Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs, and Government Operations and Economic Development, to which was referred H.B. No. 1103, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to require policy boards under the procurement code to adopt rules to promote small business.

Prior to holding a public hearing on this measure, a proposed S.D. 1 was prepared and made available for public review. In that form, it was clarified that the state law requiring payment of prevailing wages applies to all laborers, mechanics, required assistants, helpers, tenders, and apprentices on a public works project, and not only those on the job site.

Testimony in support of this measure was received from the Hawaii Operating Engineers Industry Stabilization Fund (operating engineers) and American Institute of Architects - Hawaii State Council. Testimony in opposition was received from the Department of Labor and Industrial Relations (DLIR), Department of Accounting and General Services, and Associated Builders and Contractors, Inc. - Hawaii Chapter.

Your Committees find that testimony in opposition to this measure was misconstrued as adding requirements to the Davis-Bacon Act (chapter 104, Hawaii Revised Statutes). However, oral testimony of the operating engineers indicated that the real intent of this measure is to authorize the DLIR to adopt rules for the on-site safety of assistants, helpers, tenders, and apprentices. Current law does not mention these types of workers.

As such, your Committees find that the legislative intent is to limit the application of this measure to the health, safety, and welfare of those workers, and not to impose union work rules into public works contracts.

Your Committees have amended the measure by:

(1) Adopting the changes in the proposed S.D. 1;

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs, and Government Operations and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1103, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1103, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.