STAND. COM. REP. NO.  547

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 396

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Economic Revitalization, Business, & Military Affairs, to which was referred H.B. No. 396, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT,"

begs leave to report as follows:

     The purpose of this bill is to protect Hawaii's workers who are employed by a business that employs 100 or more workers by:

(1)  Requiring successor employees to retain incumbent employees upon divestiture of a business; and

(2)  Assessing penalties for non-compliance with worker retention requirements.

     The Hawaii Government Employees Association, ILWU Local 142, Hawaii Building and Construction Trades Council, AFL-CIO, Hawaii State AFL-CIO, and a concerned individual testified in support of this bill.  UNITE HERE! Local 5 supported the intent of this measure.  The Department of Labor and Industrial Relations, Outrigger Hotels, Hawaii Hotel & Lodging Association, Retail Merchants of Hawaii, Chamber of Commerce of Hawaii, National Federation of Independent Business, Hawaii Restaurant Association, and Classic Resorts Limited testified in opposition to this bill.

     Your Committee has amended this bill by changing its effective date to July 1, 2112 to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization, Business, & Military Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 396, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 396, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization, Business, & Military Affairs,

____________________________

ANGUS L.K. MCKELVEY, Chair