STAND. COM. REP. NO.  496-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2927

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2927 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to strengthen enforcement of Hawaii's Public Works Law by requiring the Director of the Department of Labor and Industrial Relations (DLIR) to immediately suspend any contractor who interferes with or delays an investigation or falsifies payroll records from working on any public works project for three years.

     DLIR, the Hawaii Building and Trades Council, AFL-CIO, Building Industry Association of Hawaii, Associated Builders and Contractors, Hawaii, Hidano Construction, Inc., Koga Engineering and Construction, Inc., Laborers' Union Local 368, and Pacific Resources Partnership testified in support of this bill.

     Currently, employees who work on public works projects are required to be compensated in accordance with the Federal Davis-Bacon Act or Hawaii's Public Works Law (also known as the Little Davis Bacon Act).  These pieces of legislation were intended to provide a level playing field to bidders on public projects by requiring all bidders to provide the appropriate wages and benefits.

     Under current law, a contractor found to be in violation of Hawaii's Public Works Law is considered to have committed only one violation of the law, although multiple violations may be occurring or recurring simultaneously on multiple public works projects performed by the same contractor.  The lengthy process for conducting and completing investigations of possible violations is also problematic, often resulting in contractors not being properly sanctioned or restricted from obtaining contracts for additional public works projects.

     Your Committee finds that by requiring the Director of DLIR to suspend a contractor who delays or interferes with investigations conducted under Hawaii's Public Works Law or falsifies payroll records from working on any public work for three years will deter these actions and allow for better enforcement of Hawaii's Public Works Law.

     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. 2927 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

ALEX M. SONSON, Chair