STAND. COM. REP. NO. 1552

Honolulu, Hawaii

, 2023

RE: S.B. No. 722

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred S.B. No. 722, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO OCCUPATIONAL SAFETY AND HEALTH,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish the Workforce Safety and Health Special Fund; and

(2) Direct certain fees and penalties to be deposited into the special fund.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations. Your Committee received testimony in opposition to this measure from the Subcontractors Association of Hawaii. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that, according to the Department of Labor and Industrial Relations, the Department could use the fees collected pursuant to section 396-5.1, Hawaii Revised Statutes, to cover costs associated with permits, certificates, and licenses not covered by a federal grant, as federal grant conditions do not allow the State to use penalties collected to operate the enforcement program. Your Committee further finds that reallocating specified fees that would otherwise have gone to the general fund could support staff development and training and assist with staff retention efforts.

Your Committee has amended this measure by:

(1) Limiting the authorized uses of the Workforce Safety and Health Special Fund to expenses of the Hawaii Occupational Safety and Health Division, except for expenses prohibited by state law, federal law, or federal grant agreements; and

(2) 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 is in accord with the intent and purpose of S.B. No. 722, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 722, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

SCOT Z. MATAYOSHI, Chair