Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1162
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 1162 entitled: 


begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Include amusement rides under the oversight of the
          Boiler and Elevator Inspection Branch;

     (2)  Require the Department of Labor and Industrial
          Relations (DLIR) to issue a "permit to operate"
          regarding any boiler, pressure system, amusement ride,
          or elevator and similar equipment if found to be safe
          accordance with Chapter 91, Hawaii Revised Statutes;

     (3)  Delete the requirement for the DLIR to issue inspection
          certificates after each inspection;

     (4)  Increase the penalty from $1,000 to $10,000 per
          violation; and

     (5)  Amend Act 142, Session Laws of Hawaii (SLH) 1998, to
          ensure that amendments to section 36-27, Hawaii Revised
          Statutes, are not repealed in 2000.

     The DLIR testified in support of this measure.

                                 STAND. COM. REP. NO. 638
                                 Page 2

     This measure will increase the civil penalty fine from
$1,000 to $10,000 per violation.  The current penalty ceiling is
inadequate to deter violations of safety rules that directly
impact public safety.  In the past two years, the DLIR has had
instances where it was cheaper for the company in violation to
deliberately violate the rules and receive a penalty rather than
properly fix the equipment or wait for the proper authorizations
and safeguards.  This measure will provide adequate deterrence to
those who choose to violate safety laws and endanger public

     Upon further consideration, your Committee has amended this
measure by:

     (1)  Deleting erroneous amendments to Act 142, SLH 1998, and
          instead amending Act 216, SLH 1997, to keep the
          exemption for the Boiler and Elevator Safety Revolving
          Fund from being repealed in 2000 when the repeal and
          reenactment section of Act 216, SLH 1997, makes section
          36-27 revert to the format in which it read on July 1,
          1997; and

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

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1162, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1162, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public

                                   TERRY NUI YOSHINAGA, Chair