STAND. COM. REP. NO. 855-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2984
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2984, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO MINIMUM WAGE,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Increase the minimum wage to $5.75 per hour beginning
          January 1, 2002; and

     (2)  Increase the tip credit to twenty-two cents per hour
          beginning January 1, 2002.

     The Department of Human Services, Hawaii State Teachers
Association, Community Action Program, Inc., and individuals
testified in support of this bill.  The Department of Labor and
Industrial Relations, the ILWU Local 142, the Hawaii Government
Employees Association, the Small Business Regulatory Review
Board, Silverware Inc., Kokua Council, the Building Industry
Association and an individual commented on this bill.  The
American Friends Service Committee supported the intent of this
bill.  The National Federation of Independent Business,
Legislative Information Services of Hawaii, the Chamber of
Commerce of Hawaii, the Hawaii Association of Realtors, the
Hawaii Business League, the Hawaii Restaurant Association, the
Hawaii Hotel Association and individuals testified in opposition
to this bill.
   

 
 
                                 STAND. COM. REP. NO. 855-00
                                 Page 2

 
     Your Committee notes that during floor debate of this issue
on February 18, 2000, the subject matter chair noted that this
legislation had been drafted incorrectly.  Your Committee has,
accordingly amended this bill by changing the effective date for
the increase in minimum wage and tip credit to January 1, 2003.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2984, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2984, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair