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 S.B. No. 935 entitled:

beg leave to report as follows:

The purpose of this measure is to require any state funded construction project to establish certified payroll and comply with the Davis Bacon Act.

Testimony in support of this measure was submitted by the International Brotherhood of Electrical Workers Local Union 1186 and the Hawaii State Association of Electrical Workers. Testimony in opposition to this measure was submitted by the Department of Labor and Industrial Relations.

Your Committees find that it is crucial to ensure that minimum standards of prevailing wages and that proper reporting and monitoring, including through certified payroll, are maintained for public works projects. In order to affect the greatest number of projects possible where government funds are utilized, your Committees determine that the law should be expanded to include projects funded by special purpose revenue bonds and to remove the requirement that a governmental contracting agency be a party to the contract.

Your Committees have amended this measure by deleting the definition of "governmental contracting agency" in section 104-2(a), as applicable to that subsection.

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 S.B. No. 935, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 935, S.D. 1, and be referred to the Committee on Ways and Means.