Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 1214 entitled:

begs leave to report as follows:

The purpose of this bill is to amend the Wages and Hours of Employees on Public Works Law (Public Works Law) by:

The Hawaii Carpenters Union testified in support of this measure. The Department of Labor and Industrial Relations (DLIR) opposed this measure.

Currently, employees who work on public works projects are required to be compensated in accordance with the Federal Davis-Bacon Act and the Public Works Law (Chapter 104, Hawaii Revised Statutes, also known as the "Little Davis-Bacon Act"). These pieces of legislation were intended to provide a level playing field to bidders on public projects and prevent the practice of "undercutting" since all bidders were required to provide the same wages and benefits.

This measure attempts to reinforce the intent of the Davis-Bacon and Little Davis-Bacon Acts and assist DLIR with enforcing these laws.

Although your Committee understands the concerns raised by DLIR and the Hawaii Carpenters Union that this measure, as currently written, may have unintended consequences, this measure still has merit. Your Committee believes that the taxpaying public has a right to know and believe that moneys being spent on public work projects are being spent wisely since it is, in essence, the taxpayer's money being spent. Furthermore, the public also expects their agency for the protection of workers, DLIR, to ensure that individuals in this state are given a fair and equitable wage and that rules governing these wages are being enforced.

Your Committee further notes that a legal opinion dated September 8, 2003, and issued by the Department of the Attorney General to The Honorable Cal Kawamoto, State Senator, 18^th District, was recently brought to the attention of this Committee. The opinion states, in part, that construction projects, which are funded by special purpose revenue bonds exempt from taxation, fall within the definition of "public work" under chapter 104, HRS. As a consequence, such projects may also be included in this measure. Your Committee, therefore, recommends that the Finance Committee consider this possibility in its review of this bill.

Your Committee has amended this measure by:

(2) Removing general references to "private work projects";

and

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1214, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1214, H.D. 1, and be referred to the Committee on Finance.