STAND. COM. REP. NO. 1196

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.R. No. 40
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.R. No. 40 entitled:

     "SENATE RESOLUTION URGING A COMPREHENSIVE STUDY OF THE
     IMPACTS OF RAISING THE STATE MINIMUM WAGE,"

begs leave to report as follows:

     The purpose of this measure is to direct the legislative
reference bureau to conduct a comprehensive study on the impacts
of raising the state minimum wage.

     Testimony in support of this measure was received from the
Hawaii State Teachers Association, the American Friends Service
Committee, and a concerned citizen.

     Your Committee finds that a comprehensive study of the
impacts of raising the state minimum wage will provide data and
insights which will help clarify what the appropriate minimum
wage should be for Hawaii's wage earners.

     Your Committee has amended this measure by broadening the
scope of the study to include:

     (1)  An evaluation of the real value of the current minimum
          wage as compared to the real value of the initial
          minimum wage established in 1968;

     (2)  The current wage structure in Hawaii small businesses
          including the prevalent minimum and highest wages paid;

 
a                                                     SR40 SD1
                                   STAND. COM. REP. NO. 1196
                                   Page 2


     (3)  Data on how past increases in the minimum wage have
          affected other wages in Hawaii's businesses.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee concurs with the intent and purpose of
S.R. No. 40, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.R. No. 40, S.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
a                                                     SR40 SD1