STAND

STAND. COM. REP. NO.1129-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2118

S.D. 1

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2118, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT,"

begs leave to report as follows:

The purpose of this bill, as received, is to require successor employers to retain incumbent employees upon the divestiture, sale, or acquisition of a business.

Your Committee circulated a proposed H.D. 1 at the public hearing, which:

(1) Establishes a new section in the Hawaii Revised Statutes instead of a new chapter, providing that the successor employer retain at least 50 percent of incumbent, nonsupervisory employees;

(2) Adds a new definition and amends existing definitions; and

(3) Requires an employer in a covered establishment to provide written notification at least 60 days prior to the divestiture.

The ILWU, Hawaii State AFL-CIO, Unity House, Inc., and Hotel Employees and Restaurant Employees, Local 5 submitted testimony in support of the proposed H.D. 1.

The Department of Labor and Industrial Relations, Chamber of Commerce of Hawaii, Hawaii Hotel Association, Society of Human Resource Management – Hawaii Chapter, and Hawaii Reserves, Inc., opposed the proposed H.D. 1.

Your Committee has amended this bill by deleting its substance and replacing its contents with the proposed H.D. 1. Other technical, nonsubstantive amendments were also made for purposes of clarity and style.

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 S.B. No. 2118, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2118, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

		____________________________ DWIGHT Y. TAKAMINE, Chair