Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Labor and Transportation and Government Operations, to which was referred H.B. No. 1214, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to provide for the manner in which the prevailing wages for laborers and mechanics on public work projects, including certain private construction contracts, are to be established.

This measure also allows individuals to bring suit against violators for noncompliance with the Director of Labor and Industrial Relations (DLIR) for failure to perform nondiscretionary duties.

Testimony in support of this measure was submitted by the Hawaii Carpenters Union. Testimony in opposition to this measure was submitted by the DLIR, the Department of Accounting and General Services, the Office of the Attorney General, the Building Industry Association, the National Federation of Independent Business, Associated Builders and Contractors, HSI Mechanical, Inc., Mark Development, Inc., and one individual.

Your Committees find that in order to ensure continuity and equitable standards among laborers and mechanics throughout the State, the applicability of the prevailing wages law should be extended to include certain types of private projects which are subsidized by the State or involve land leased by the State. Under these circumstances, State or county purposes are served, therefore warranting inclusion under the State's Davis Bacon Act, chapter 104, Hawaii Revised Statutes (HRS). Your Committees further find that the determination of prevailing wages is currently the responsibility of the Director of Labor and Industrial Relations with a formula and guidelines established in the administrative rules. In order to provide clear guidance on the calculation of prevailing wages, your Committees determine that codification of these rules is necessary.

Furthermore, your Committees acknowledge the concerns raised by the DLIR regarding difficulties in the administration and enforcement of the law, as amended by this measure. Therefore, your Committees have sought to further clarify the changes by including specific provisions for such administration and enforcement and removing amendments to the law regarding additional forms of remedies.

Accordingly, your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Labor and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1214, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1214, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.