CONFERENCE COMMITTEE REP. NO. 41-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2140

S.D. 1

H.D. 2

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2140, S.D. 1, H.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Authorize counties to:

(A) Require contractors to disclose employee wage, benefit, hour, and employment‑status information; and

(B) Deny, revoke, or suspend building permits for a contractor's violations of related laws and judicial orders under certain conditions; and

(2) Establish a process by which a property owner may replace a noncompliant contractor and transfer the building permit to the replacement contractor.

Your Committee on Conference finds that persistent wage theft, worker misclassification, and other employment-law violations in the construction industry undermine fair competition, harm workers, and continue to occur despite citations issued to contractors. Your Committee further finds that enforcement gaps at the local level, combined with prolonged permitting timelines and limited mechanisms to prevent noncompliant contractors from continuing to work, have allowed violators to proceed with projects while law-abiding contractors and workers are placed at a disadvantage. This measure provides a practical and accountable framework that strengthens enforcement and promotes a fair, lawful, and competitive construction industry.

Your Committee on Conference has amended this measure by:

(1) Removing language that would have allowed violation of related laws by contractors, as determined by the United State Department of Labor, to serve as a basis for counties to deny, revoke, or suspend building permits;

(2) Inserting language to exempt building permit applications submitted by an owner-occupant for construction work performed on the owner-occupant's residence from the counties' authority to deny, revoke, or suspend building permit applications under this measure;

(3) Making it effective upon its approval; and

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

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2140, S.D. 1, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2140, S.D. 1, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ BRANDON J.C. ELEFANTE Chair
____________________________ DAVID A. TARNAS Co-Chair	____________________________ KARL RHOADS Co-Chair
	____________________________ LES IHARA, JR. Co-Chair