STAND. COM. REP. NO. 2926

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2984
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred H.B. No. 2984, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to increase the minimum wage
to $5.75 per hour and the tip credit to twenty-two cents
beginning January 1, 2003.

     Testimony in support of a minimum wage increase was received
from the Department of Labor and Industrial Relations, Department
of Human Services, Hawaii State Teachers Association, Affordable
Housing and Homeless Alliance, American Friends Service
Committee, and the Retail Merchants of Hawaii.  Testimony in
support of the minimum wage increase but in opposition to the tip
credit increase was received from the Hawaii State AFL-CIO and
the ILWU Local 142.  Testimony in opposition to the minimum wage
increase and the two cents tip credit increase was received from
Cheese Burger in Paradise, Outrigger, Livingston Ventures,
Kyotaru Hawaii Corporation, Rocky's Pizza, the Old Spaghetti
Factory, Cucina di Malia, Maui Tacos, Hawaii Restaurant
Association, Edward's at Kanaloa, and Drysdale's.  Testimony in
opposition to the minimum wage increase was received from the
National Federation of Independent Business, Chamber of Commerce
of Hawaii, Hawaii Business League, Hawaii Hotel Association,
Hawaii Association of Realtors, Alan Wong's Restaurant, Aroma
D'italia Ristorante, Jose's Mexican Cafe & Cantina, Big City

 
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                                   STAND. COM. REP. NO. 2926
                                   Page 2


Diner, Marco's Grill & Deli, Theo Davies, Legislative Information
Services of Hawaii, and the Building Industry Association.
Comments were received from Chuck's Steak House and the Center
for Labor Education and Research. 

     Currently, the minimum wage is $5.25 per hour and the tip
credit is twenty cents.  Beginning January 1, 2003, this measure
raises the minimum wage to $5.75 per hour and the tip credit to
twenty-two cents.

     Your Committee amended this measure by changing the
effective date of the increase in minimum wage and tip credit to
January 1, 2001, and mandating application of the federal minimum
wage rate should it exceed the State's minimum wage.

     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 is in accord with the intent and purpose
of H.B. No. 2984, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 2984, H.D. 2, S.D. 1, and be referred to the Committee on
Ways and Means.

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



                                   ______________________________
                                   BOB NAKATA, Chair

 
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