STAND. COM. REP. NO. 3550

Honolulu, Hawaii

RE: H.B. No. 2350

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor, Culture and the Arts, to which was referred H.B. No. 2350, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to update various assessments and penalties under the Department of Labor and Industrial Relations' jurisdiction by revising the monetary assessments according to changes in the Consumer Price Index.

Your Committee received testimony in support of this measure from Pacific Resource Partnership and Hawaii Regional Council of Carpenters. Your Committee received comments on this measure from the Department of Labor and Industrial Relations and United Public Workers, AFSCME Local 646, AFL-CIO.

Your Committee finds that the penalties in this measure have not been raised since the enactment of the establishing statutes. According to the Bureau of Labor Statistics, the equivalent of many of the penalties with inflation were often double the current statutorily set amount. As such, your Committee also finds, these penalties have lost their deterrent effect and that meaningful increases are needed to keep unfair treatment in check. Adjusting the penalties to keep pace with the cost of living demonstrates the State's investment in workers as well as its support for sustaining responsible employers who follow the labor laws.

Your Committee has amended this measure by:

(1) Making it effective upon its approval; and

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

As affirmed by the record of votes of the members of your Committee on Labor, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2350, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2350, H.D. 2, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor, Culture and the Arts,

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BRIAN T. TANIGUCHI, Chair