Honolulu, Hawaii



RE:    H.B. No. 643

       H.D. 2

       S.D. 2




Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii




     Your Committee on Judiciary and Government Operations, to which was referred H.B. No. 643, H.D. 2, S.D. 1, entitled:




begs leave to report as follows:


     The purpose of this measure is to allow the Contractors Licensing Board to revoke, suspend, or refuse to renew the license of a contractor who knowingly employs individuals who are ineligible for employment in the United States on public works contracts.


     Your Committee finds that while federal law regulates eligibility criteria for foreign workers in the United States, the states retain a role in regulating state contracting and labor issues.


     Your Committee believes that companies who are hiring illegal workers in this State to do public works projects are taking gainful employment away from our local workers who are struggling to keep food on their families' tables, pay their bills, and keep their homes.  The March 6, 2009 report of the University of Hawaii Economic Research Organization states, in relevant part:


     The global credit crisis and deepening recession have materially worsened prospects for the Hawai'i construction industry.  Commercial and resort building are in retreat, hampered by a bleak national outlook and financing constraints.  The residential construction downturn will continue as income and wealth losses undermine housing demand.  We now expect a deeper adjustment in the local real estate market, although somewhat milder than past Hawai'i experience and much less severe than the steep contractions in some mainland regions.  Government spending initiatives may provide substantial support for the industry in the medium term, but they will provide very little stimulus over the next two years.


     Your Committee has amended this measure by changing the effective date to July 1, 2075 to continue the discussions on this matter.


     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 643, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 643, H.D. 2, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,