STAND. COM. REP. NO. 1094-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2615

S.D. 1

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 S.B. No. 2615, S.D. 1, 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 that include but are not limited to standards for living wages, benefits, and requirements for participation in state-approved apprenticeship programs, under certain conditions.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; Office of the Mayor of the City and County of Honolulu; one member of the Kauaʻi County Council; one member of the Hawaiʻi County Council; two members of the Honolulu City Council; one member of the Maui County Council; Operating Engineers Local 3; Pacific Resource Partnership; and Hawaii Regional Council of Carpenters. Your Committee received testimony in opposition to this measure from the Retail Merchants of Hawaii and Maui Chamber of Commerce. Your Committee received comments on this measure from the Department of the Attorney General; General Contractors Association of Hawaii; and Hawaii Harbor Users Group.

Your Committee finds that some employees are victims of labor violations when their employers avoid their employer responsibilities related to wages, payroll taxes, insurance, licensing, safety, and other regulatory requirements. Empowering the counties to adopt certain disclosure requirements provides them with the flexibility to ensure the appropriate employer responsibilities are being provided to employees. Furthermore, this measure 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; 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.

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 S.B. No. 2615, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2615, S.D. 1, 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