STAND. COM. REP. NO. 2670

Honolulu, Hawaii

RE:    S.B. No. 3087

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 3087, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTOR SUSPENSION ON PUBLIC WORKS PROJECTS,"

begs leave to report as follows:

     The purpose of this measure is to allow the Department of Labor and Industrial Relations to immediately suspend and begin debarment proceedings against contractors that purposely defraud the State on a public works project or do not cooperate with the Department of Labor and Industrial Relations in determining if there has been a violation of the prevailing wage law.

     Your Committee received testimony in support on this measure from the Department of Labor and Industrial Relations; General Contractors Association of Hawaii; Hawaii Building and Construction Trades Council, AFL-CIO; Building Industry Association of Hawaii (BIA-Hawaii); Laborers' Union Local 368; The Pacific Resource Partnership; and one individual.

     Providing for suspension as a penalty will create a clear line for those who are not willing to comply with the law.  Chapter 104, Hawaii Revised Statutes, relating to wage and hours of employees on public works, is a law imposed to even the playing field in bidding for public works jobs and pay a prevailing wage to workers.  Your Committee finds that it is not unreasonable to impose a three-year suspension for those who are not willing to comply with the law.

     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 S.B. No. 3087, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair