STAND. COM. REP. NO.  360

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1676

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1676 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to clarify Hawaii's prevailing wage law and ensure payment of prevailing wages on projects financed with special purpose revenue bonds (SPRBs) by requiring project parties to submit a collective bargaining agreement to the Director of the Department of Labor and Industrial Relations (DLIR) which will serve as the basis for compliance with all applicable prevailing wage requirements.

     Hawaiian Electric Company, Inc., Hawaii Electric Light Company, and Maui Electric Company testified in support of this bill.  DLIR testified in opposition to this measure.

     Currently, public works projects require the payment of prevailing wages.  In 2007, the Legislature enacted Act 61 which specified that projects funded by SPRBs were considered public works and, therefore, subject to Hawaii's prevailing wage law.  Since some companies that finance projects with SPRBs also use their own unionized employees on the particular project, allowing for the properly submitted collective bargaining agreement to serve as the basis for compliance with Hawaii's prevailing wage law appears reasonable.

     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. 1676 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,

____________________________

KARL RHOADS, Chair