STAND. COM. REP. NO. 455

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1082

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

 

Sir:

 

     Your Committee on Labor, Culture and the Arts, to which was referred S.B. No. 1082 entitled:

 

"A BILL FOR AN ACT RELATING TO WAGES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to make general contractors entering into or under contracts in Hawaii for work on buildings or structures liable for debt incurred by subcontractors for wages due to claimants for performance of labor in the contract between the general contractor and owner.

 

     Your Committee received testimony in support of this measure from Pacific Resource Partnership and Hawaii Regional Council of Carpenters.  Your Committee received testimony in opposition to this measure from the Subcontractors Association of Hawaii.  Your Committee received comments on this measure from the Department of Labor and Industrial Relations.

 

     Your Committee finds that under existing law, general contractors are not liable for the unfair labor practices of their subcontractors, including but not limited to the nonpayment of wages.  As a result, employees of subcontractors are, in certain instances, not getting adequately compensated for work they provide.  This measure will hold general contractors liable for debt incurred by subcontractors for wages due to their employees, which will ensure that general contractors take precautions in hiring subcontractors if they want to avoid being responsible for the subcontractor's nonpayment to their employees. 

 

     Your Committee has amended this measure by:

 

     (1)  Inserting an effective date of January 1, 2051, to encourage further discussion; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Labor, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1082, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1082, S.D. 1, and be referred to your Committee on Judiciary.

 

Respectfully submitted on behalf of the members of the Committee on Labor, Culture and the Arts,

 

 

 

________________________________

BRIAN T. TANIGUCHI, Chair