Honolulu, Hawaii



RE:    H.B. No. 2766

       H.D. 2

       S.D. 1




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2766, H.D. 2, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to ensure that the State's wage and hour law is strictly enforced on public works projects.


     Specifically, the measure:


     (1)  Establishes the wage and hour for public works projects special fund and requires a certain percentage of  capital improvement construction funds to be transferred to the special fund to enforce the provisions of chapter 387, Hawaii Revised Statutes;


     (2)  Requires the Department of Labor and Industrial Relations to submit annual reports to the Legislature relating to the special fund; and


     (3)  Appropriates funds for three labor law specialist IV positions to enforce wage and hours laws for employees on public works projects.


     Written comments in support of this measure were submitted by the Department of Labor and Industrial Relations.  Written comments were submitted by the Department of Budget and Finance.


     Your Committee finds that public works projects face issues involving adherence to wage and hour laws and that the State has a direct interest in enforcing these laws.  Your Committee further finds that providing funding for more inspectors will ensure wage and hour law compliance for public works projects.


     Your Committee has amended this measure by:


     (1)  Changing to an unspecified percentage the amount of all state fund appropriations that are made available for capital improvements designated for the construction cost element that is to be transferred into the wage and hour for public works projects special fund to an unspecified percentage;


     (2)  Clarifying that the provisions of chapter 104, Hawaii Revised Statutes, shall be enforced on public works projects rather then chapter 387, Hawaii Revised Statutes; and


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


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2766, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2766, H.D. 2, S.D. 1.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,