STAND. COM. REP. NO. 1209

Honolulu, Hawaii

RE:    H.B. No. 1434

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1434, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to ensure that contractors shall be issued a separate Notice of Violation for each government construction project where the Department of Labor and Industrial Relations finds that a contractor has failed to comply with chapter 104, Hawaii Revised Statutes, the prevailing wage law.

     Your Committee finds that one deterrent to violation of the prevailing wage law is to bar contractors who accumulate three Notices of Violation of the law within two years from bidding on government construction projects for three years.  This deterrent of debarment from working on government projects is weakened by the fact that prevailing wage labor investigations can take over two years and that as the law reads now a violation refers to an investigation involving one or more projects.  Uncooperative contractors are able to stall and game the system due to the time limitations and the potential for the bundling of multiple projects into one Notice of Violation, thereby remaining eligible for government contracts despite multiple offenses over long periods of time on multiple projects.

     Your Committee recognizes the concerns of the contractor community that a contractor who unwittingly violates the law simultaneously on three projects due to the same mistake could be subject to debarment.  However, your Committee finds that considering the harm incurred by the workers and their families due to such violations, ensuring that such mistakes are not made should be a priority for contractors.  This measure will improve contractors' compliance with the law by discouraging intentional violations and deterring potential unwitting violators to eliminate mistakes that impact the lives of others.

     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 H.B. No. 1434, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

CLAYTON HEE, Chair