STAND. COM. REP. NO. 2110

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 Finance, to which was referred S.B. No. 292, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LABOR,"

begs leave to report as follows:

The purpose of this measure is to ensure that service employees of state or county contractors are paid at wages that are certified to be accurate and in accordance with applicable labor laws. Specifically, this measure:

(1) Specifies wage obligations of a contractor that performs services in excess of $25,000 for any governmental agency;

(2) Authorizes a 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 employed laborers and mechanics;

(3) Requires a contractor to submit a certified copy of all payrolls on a weekly basis to the governmental contracting agency; and

(4) Specifies the contractor's obligations in connection with payroll records and the penalties for failure to comply.

Hawaii Regional Council of Carpenters, Hawaii Construction Alliance, and Hawaii Laborers Union, Local 368 supported this measure. The Department of Accounting and General Services, Department of Labor and Industrial Relations, Hawaii Laborers-Employers Cooperation and Education Trust, and Landscape Association of Hawaii offered comments on this measure.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 292, S.D. 1, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair