STAND. COM. REP. NO.  347

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 Economic Development & Business Concerns, 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 ensure that the prevailing wage is paid to workers at private construction projects funded by special purpose revenue bonds (SPRBs) by:

(1)  Requiring that the Director of Budget and Finance report to the Department of Labor and Industrial Relations (DLIR) on any issuances of SPRBs for private projects that fall within the definition of "public works project" in the prevailing wage law but are not directly caused by a governmental contracting agency; and

(2)  Requiring DLIR to serve as the governmental contracting agency and enforce the prevailing wage law for these private projects.

     The International Brotherhood of Electrical Workers Local Union 1186, Ironworkers Union Local 625, and Hawaii State AFL-CIO submitted testimony in support of this bill.  The Department of Budget and Finance and Department of Labor and Industrial Relations opposed the measure.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns 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 be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair