STAND. COM. REP. NO. 1315

Honolulu, Hawaii

RE:    H.B. No. 760

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 760, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO A LIVING WAGE FOR WORKERS ON SERVICE CONTRACTS,"

begs leave to report as follows:

     The purpose of this measure is to reduce from $25,000 to $5,000 the applicability threshold of service contract wage, hour, and working condition requirements. This measure provides certain exemptions for nonprofits; requires wages providing an annual income of at least the U.S. poverty guideline for Hawaii for a family of four and includes provisions enhancing employees' ability to organize.

     Testimony in support of this measure was received from ILWU Local 142, Hawaii State Teachers Association, and the Hawaii State AFL-CIO.  Opposing Testimony was received from the Department of Labor and Industrial Relations and the Arc in Hawaii.  The Arc is sympathetic with the measure's intent but was wary of its affect on their organization which receives state funds for its operations. 

     Your Committee has amended this measure by excluding non-profit organizations, such as ARC, that qualify as community rehabilitation programs under Chapter 103D, Hawaii Revised Statutes (H.R.S) or  under Chapter 103F, H.R.S.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 760, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 760, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair