STAND. COM. REP. NO. 2199

Honolulu, Hawaii

RE: S.B. No. 2801

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Labor and Judiciary, to which was referred S.B. No. 2801 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the labor law enforcement special fund to finance the collection of penalties for violations of labor law;

(2) Establish two positions, including an attorney and legal assistant, in the Department of the Attorney General to represent the Department of Labor and Industrial Relations in collecting penalties for violations of law; and

(3) Appropriate funds into and out of the labor law enforcement special fund.

Your Committees received testimony in support of this measure from the Department of Labor and Industrial Relations, Pacific Resource Partnership, and one individual. Your Committees received comments on this measure from the Tax Foundation of Hawaii.

Your Committees find that this measure aims to improve compliance with labor laws by helping ensure that penalties for violations are collected by the Department of Labor and Industrial Relations. In mid-2017, the Department of Labor and Industrial Relations estimated that it had more than $2,705,024 in accounts receivable over the past several years. Your Committees further find that hiring an attorney and a legal assistant to pursue these collections would greatly improve the Department of Labor and Industrial Relations' capacity to collect these penalties and efficiently effectuate the intent of labor law.

Your Committees recommend that as this measure moves through the legislative process, your Committee on Ways and Means consider adding reporting requirements relating to the status of the special fund.

Your Committees have amended this measure by:

(1) Authorizing the labor law enforcement special fund to collect fees, in addition to penalties, as requested by the Department of Labor and Industrial Relations; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Labor and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2801, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2801, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ BRIAN T. TANIGUCHI, Chair

________________________________ JILL N. TOKUDA, Chair