STAND. COM. REP. NO. 26-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1638

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred H.B. No. 1638 entitled:

"A BILL FOR AN ACT RELATING TO COUNTY LABOR STANDARDS,"

begs leave to report as follows:

The purpose of this measure is to authorize the counties to adopt labor standards.

Your Committee received testimony in support of this measure from the Office of the Mayor of the City and County of Honolulu; three members of the Maui County Council; one member of the Kauaʻi County Council; Pacific Resource Partnership; Hawaii Regional Council of Carpenters; Operating Engineers Local Union No. 3; and one individual. Your Committee received testimony in opposition to this measure from the Associated Builders and Contractors, Hawaii Chapter. Your Committee received comments on this measure from the Department of Labor and Industrial Relations; General Contractors Association of Hawaii; and Hawaii Harbors Users Group.

Your Committee finds that the State is comprised of local communities with unique needs and challenges. Empowering the counties to adopt certain disclosure requirements provides them with the flexibility to ensure the appropriate employer responsibilities and better serve local communities. Furthermore, encouraging a more adaptable approach to labor regulations promotes economic development while maintaining a baseline for worker protections.

Your Committee has amended this measure by:

(1) Clarifying that the counties shall have the authority to:

(A) Require employers to disclose information regarding its employees' wages, benefits, hours, and employment status, except for employees primarily engaged in harbor-related operations; and

(B) Deny, revoke, or suspend a building permit application for violating laws relating to wages, benefits, hours, and employment status; and

(2) Changing the effective date to July 1, 3000, to encourage further discussion.

Your Committee respectfully requests your Committee on Judiciary & Hawaiian Affairs, should it deliberate on this measure, to consider removing the exemption for harbor-related operations, as the disclosure requirement required in this measure as amended likely alleviates the concerns raised in testimony.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1638, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1638, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair