STAND. COM. REP. NO. 2995

Honolulu, Hawaii

RE:    H.B. No. 2897

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 2897, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTORS,"

begs leave to report as follows:

     The purpose of this measure is to subject a contractor to the revocation, suspension, or nonrenewal of its license for knowingly or intentionally employing a person on any project or operation who is not eligible to work in the United States under federal law.

     Written comments in support of the measure were submitted by two private organizations.  Written comments in opposition to the measure were submitted by the Hawai‘i Civil Rights Commission.  Written comments regarding the measure were submitted by the Contractors License Board.  Written comments presented to your Committee may be reviewed on the Legislature's website.

     Your Committee finds that, by Act 145, Session Laws of Hawaii 2009, the Legislature subjected a contractor to the revocation, suspension, or nonrenewal of its license for knowingly or intentionally employing a person who is not eligible to work in the United States under federal law to perform work under a contract subject to chapter 104, Hawaii Revised Statutes, relating to contracts for construction of a public work project to which a governmental contracting agency is a party.  Your Committee further finds that this measure is a logical extension of Act 145, as it will apply this penalty to all contractors and not just those contractors working on contracts that are subject to chapter 104, Hawaii Revised Statutes.  Given the current economic climate and resulting unemployment rate in Hawaii, it is not unreasonable that the State should provide a level playing field for contractors who hire legally-employable workers, rather than continuing to license contractors who may be cutting corners by hiring workers who are not.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2897, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

____________________________

BRIAN T. TANIGUCHI, Chair