STAND. COM. REP. NO. 54-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1866

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred H.B. No. 1866 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Require contractors to disclose information regarding their employees' wages, benefits, hours, and employment status; and

(2) Deny, revoke, or suspend a building permit application if a contractor violates laws, as determined by the Department of Labor and Industrial Relations, United States Department of Labor, or judicial order relating to wages, benefits, hours, and employment status.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; International Union of Operating Engineers Local 3; Hawaiʻi Regional Council of Carpenters; and Pacific Resource Partnership. Your Committee received comments on this measure from the General Contractors Association of Hawaii.

Your Committee finds that this measure promotes fairness and accountability in the construction industry by leveling the playing field and encouraging responsible business practices. Your Committee further finds that this measure would complement existing federal and state labor laws without interfering with ongoing investigations.

Your Committee has amended this measure by:

(1) Deleting the counties' authority to deny, revoke, or suspend a building permit application if a contractor is found to be in violation of laws as determined by the Department of Labor and Industrial Relations, United States Department of Labor, or judicial order relating to wages, benefits, hours, and employment status;

(2) Changing its effective date to July 1, 3000, to encourage further discussion; and

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

Your Committee respectfully requests your Committee on Labor, should it deliberate on this measure, to consider alternative penalties for contractors who are found to be in violation of laws as determined by the Department of Labor and Industrial Relations, United States Department of Labor, or judicial order relating to wages, benefits, hours, and employment status.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1866, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1866, H.D. 1, and be referred to your Committee on Labor.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair