STAND. COM. REP. NO.  33

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 861

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 861 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC WORKS,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1) Require that the Director of Budget and Finance report any issuances of special purpose revenue bonds for public work projects that are subject to Chapter 104, Hawaii Revised Statutes (HRS), but not directly caused by a governmental contracting agency, to the Department of Labor and Industrial Relations (DLIR) so that DLIR may enforce the wage and hour provisions of Chapter 104, HRS; and

     (2)  Make DLIR responsible for enforcing the provisions in Chapter 104, HRS, including those on the collection and maintenance of certified payroll copies, for public work projects that are subject to Chapter 104, HRS, but not directly caused by a governmental contracting agency.

     The International Brotherhood of Electrical Workers Local Union 1186 and the Ironworkers Union Local 625 Stabilization Fund testified in support of this bill.  The Department of Budget and Finance and DLIR opposed this measure.

     Your Committee finds that under current law, public works projects involving special purpose revenue bonds are not subject to Chapter 104, HRS, enforcement.  To ensure that indirect public works projects which involve the issuance of special purpose revenue bonds comply with prevailing wages law, your Committee finds it necessary to clarify that DLIR is the government agency responsible for this area.      

     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. 861 and recommends that it pass Second Reading and be referred to the Committee on Economic Development & Business Concerns.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair