STAND. COM. REP. NO. 1496-24

Honolulu, Hawaii

, 2024

RE: H.R. No. 53

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.R. No. 53 entitled:

"HOUSE RESOLUTION REQUESTING THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS TO CONVENE AN INTERAGENCY ENFORCEMENT TASK FORCE TO COMBAT THE UNDERGROUND ECONOMY AND EMPLOYEE MISCLASSIFICATION,"

begs leave to report as follows:

The purpose of this measure is to request The Department of Labor and Industrial Relations to convene an Interagency Enforcement Task Force to combat the underground economy and employee misclassification.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations and Pacific Resource Partnership.

Your Committee notes that convening an interagency enforcement task force is essential for maximizing resources and effective coordination. Your Committee notes interagency task forces facilitate sharing data information to create effective enforcement measures. Your Committee believes the task force will help protect the rights and interests of workers.

Your Committee has amended this measure by:

(1) Amending its title;

(2) Clarifying that only the Director of Labor and Industrial Relations, rather than the Director or the Deputy Director is requested to serve as the Chair of the Interagency Enforcement Task Force;

(3) Limiting the scope of the Working Group to only the construction industry;

(4) Limiting the scope of the Task Force by deleting language requesting the Task Force to encourage identification of violators, work collaboratively with stakeholders to diminish the size of the underground economy and reduce employee misclassification, and work collaboratively with social service agencies to provide assistance to vulnerable populations that have been exploited by the underground economy and employee misclassification;

(5) Requesting the Insurance Commissioner from the Department of Commerce and Consumer Affairs to participate as a member of the Task Force; and

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

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 concurs with the intent and purpose of H.R. No. 53, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.R. No. 53, H.D. 1.

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

____________________________

SCOT Z. MATAYOSHI, Chair