STAND. COM. REP. NO. 2361

Honolulu, Hawaii

RE: S.B. No. 3023

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 3023 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to repeal provisions that allow individuals whose earning capacity is impaired by old age or physical or mental deficiency or injury to receive wages lower than the applicable minimum wage.

Your Committee received testimony in support of this measure from the Hawai‘i Appleseed Center for Law & Economic Justice, IMUAlliance, Pono Hawai‘i Initiative, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Kupuna Caucus of the Democratic Party of Hawaii, Stress Free Souls, and forty-one individuals. Your Committee received comments on this measure from the Department of Labor and Industrial Relations, Goodwill Hawaii, Hawaii Disability Rights Center, and Self Advocacy Advisory Council.

Your Committee finds that the existing Hawaii special minimum wage law allows employers to pay workers with disabilities subminimum wages in certain circumstances. Legislation that allows subminimum wages for certain individuals with disabilities was enacted under federal law in 1938, at a time when there were limited opportunities, few services, and even fewer technologies to enable workers with disabilities to engage in the workplace. Your Committee finds that with the high-cost of living in Hawaii and the availability and advancement of assistive technologies that can aid all workers, it is necessary that the State's policies are supportive and inclusive to allow all workers with disabilities to reach their full vocational and socioeconomic potential.

Your Committee has heard the testimony from proponents and also those with concerns about possible unintended consequences of this measure. As such, your Committee recommends that, as this measure moves through the legislative process, your Committee on Ways and Means consider amendments proposed by the Department of Labor and Industrial Relations and further recommends that proponents of this measure and those who testified with concerns discuss possible amendments and improvements for submission to the Legislature.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3023, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3023, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

JILL N. TOKUDA, Chair