Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2118 entitled:

begs leave to report as follows:

The purpose of this measure is to limit the effects of economic dislocations and resultant unemployment by requiring successor employers to retain incumbent employees upon the divestiture, sale, or acquisition of a business.

Your Committee finds that the retention of incumbent workers is healthier for the State's economy because it provides stable employment to residents, and efficient, uninterrupted service to consumers.

Recognizing that smaller businesses would be detrimentally affected by this measure, your Committee has amended this measure by changing the minimum number of employees of business establishments covered by the new chapter from twenty to fifty, and by making nonsubstantive, technical amendments.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2118, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2118, S.D. 1.