Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 166 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the minimum wage. The bill provides that Hawaii's minimum wage shall be not less than 50 cents greater than the federal minimum wage beginning January 1, 2002.

Testimony in support of this bill was submitted by the Hawaii State Commission on the Status of Women; American Friends Service Committee, Hawaii Area; Women's Legislative Coalition; Hawaii Women's Political Caucus; and the ILWU. The Department of Labor and Industrial Relations supported the intent of the bill, but preferred H.B. No. 669. The Hawaii Business League, Hawaii Restaurant Association, and Retail Merchants of Hawaii opposed the measure.

Your Committee finds that despite the steady and constant increase in the cost of living in Hawaii, there has been no increase in the minimum wage for the past seven years. Testimony established that minimum wage issues disproportionately impact women and minorities.

The Department of the Attorney General has informed your Committee that tying raises in the State's minimum wage to increases in the federal minimum wage effectively abdicates the Legislature's power to set Hawaii's minimum wage and is prohibited. Adoption of future legislation is prohibited because it is considered a relinquishment of the Legislature's duty. Although the Attorney General noted there are exceptions to the general rule and the Hawaii Supreme Court has not ruled on any similar issue, it was recommended that the Legislature should fix the amount of the Hawaii minimum wage.

Upon further consideration, your Committee has amended the measure to implement the Attorney General's recommendation by:

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 166, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 166, H.D. 1, and be referred to the Committee on Finance.