Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 96
                                     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. 96 entitled: 


begs leave to report as follows:

     The purpose of this bill is to amend the penalty provisions
for violations of Chapter 104, Hawaii Revised Statutes (Chapter
104), regarding wages and hours of employees on public works.

     The Hawaii Island Contractors Association, Michael L. Freed,
Esq., the Hawaii Chapter of the Associated Builders and
Contractors, Inc., the Contractors Association of Hawaii, Carr
Gouveia & Associates, CPAs, Inc., QN Electric, Inc., the General
Contractors Association of Hawaii, the Construction Industry
Legislative Organization, Inc., Jack Wolfe Insurance, and Jas. W.
Glover, Ltd., testified in support of the bill.  Wahine Builders
and the Plumbers and Pipefitters Union Local 675 commented on the
bill.  The Department of Labor and Industrial Relations (DLIR)
submitted testimony outlining its concerns with the bill.

     Your Committee finds that strict compliance with Chapter 104
is important to maintaining the integrity of the competitive
bidding process for public works.  Your Committee further finds,
however, that the current penalty provisions can result in
excessive and unfair penalties for inadvertent violations.

     Your Committee has amended the bill by:

                                 STAND. COM. REP. NO. 639
                                 Page 2

     (1)  Establishing a special fund for the enforcement of
          Chapter 104;

     (2)  Restructuring the penalty provisions, so that all
          penalties are based upon the back wages found due, or a
          minimum dollar amount; 
     (3)  Removing the requirement that DLIR first find that a
          violation is knowingly made before assessing a penalty;

     (4)  Clarifying that in the event of suspension of a
          contractor for a third violation, suspension will not
          include suspension from work on current contracts.

     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. 96, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 96, 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