STAND. COM. REP. NO. 875

Honolulu, Hawaii

RE:    S.B. No. 957

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 S.B. No. 957 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC WORK PROJECTS,"

begs leave to report as follows:

     The purpose of this measure is to ensure that a violation under chapter 104, Hawaii Revised Statutes (HRS), is limited to a violation that occurs within a single contract, regardless of the close proximity in time of other violations on simultaneous projects. 

     Testimony in support of this measure was received from the Hawaii Building and Construction Trades Council, AFL-CIO, International Union of Elevator Constructors, Laborers' Union Local 368, Iron Workers, and one individual.  Testimony in opposition was received from the Department of Labor and Industrial Relations (DLIR).

     Your Committee is troubled with the DLIR's testimony as stated in the following:  "For example, if a contractor failed to pay overtime on March 26, Kuhio Day, to laborers or mechanics on three projects, because the contractor's employees would rather work on that State holiday than take the day off, the Department would have to suspend the contractor from any State work for three years.  Even if the contractor corrected the mistake within 20 days and paid back wages and penalties, the Department would still have to suspend the contractor."  The fact that DLIR finds this example acceptable under chapter 104, HRS, proves why this measure is needed. 

     Your Committee finds that the State should enforce laws that are created to protect the worker and taking a cavalier attitude toward violations under chapter 104, HRS, should not be condoned.

     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 S.B. No. 957 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

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

____________________________

CLAYTON HEE, Chair