STAND. COM. REP. NO. 1547

Honolulu, Hawaii

, 2019

RE: S.B. No. 292

S.D. 1

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred S.B. No. 292, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LABOR,"

begs leave to report as follows:

The purpose of this measure is to require contractors to submit certified payrolls and comply with certain wage and hours laws for service contracts that exceed $500,000.

The Hawaii Laborers-Employers Cooperation and Education Trust, Hawaii Laborers Union, Local 368, and Hawai‘i Construction Alliance submitted testimony in support of this measure. The Department of Labor and Industrial Relations submitted comments.

Your Committee has amended this measure by:

(1) Deleting the language that excludes service contracts less than $500,000 from submittal of certified payrolls that attest to compliance with certain wage and hours laws;

(2) Specifying the obligations and conditions of a contractor that performs services in excess of $25,000 for any governmental agency;

(3) Authorizing any governmental agency to withhold portions of payments from the contractor as the governmental agency considers necessary to cover the difference between the required wages and the wages received by the laborers and mechanics;

(4) Requiring that contracts to perform services in excess of $25,000 must require the contractor to submit a certified copy of all payrolls on a weekly basis to the governmental agency;

(5) Specifying the obligations in connection with payroll records and the penalties for failure to comply; and

(6) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 S.B. No. 292, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 292, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

AARON LING JOHANSON, Chair