STAND. COM. REP. NO. 2170

Honolulu, Hawaii

, 2019

RE: S.B. No. 789

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 789, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Raise the minimum wage rate to $11.00 per hour on January 1, 2020, and subsequently raise the minimum wage rate by $1.00 per hour annually, ending on January 1, 2024;

(2) Establish a separate minimum wage rate of $10.50 per hour, beginning on January 1, 2020, for employers required to provide health care coverage to any employee by a prepaid group health care plan, and subsequently raise the minimum wage rate by $0.50 per hour annually, ending on January 1, 2025; and

(3) Delete the provision allowing the Director to provide for wages lower than the applicable minimum wage for certain individuals.

The Honolulu City Councilmember for District 9; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Save Medicaid Hawaii; O‘ahu County Democrats; Breastfeeding Hawaii; Hawaii Women's Coalition; Pacific GPS; Our Revolution Hawaii; and a few individuals submitted testimony in support.

Island Plastic Bags, Inc.; PCG Enterprises LLC; Hakuyosha International, Inc.; Dust-Tex Honolulu, Inc.; Tanaka of Tokyo Restaurants; Tiki's Grill & Bar; Tea Chest Hawaii; Hawai‘i Farm Bureau; The Chamber of Commerce Hawaii; Hawaii Food Industry Association; Maui Chamber of Commerce; Magics Beach Grill; Hawaii Petroleum Marketers Association; Isemoto Contracting Co., Ltd; Big City Diner; FISH Honolulu; Kauai Ice; Charley's Taxi; Retail Merchants of Hawaii; Ha Long Pho Noodle House; Hawaiian Chip Company; ABC Stores; Hawaii Food Manufacturer's Association; JPG Hawaii, Inc; Gyotaku Japanese Restaurants; National Federation of Independent Business; Kona-Kohala Chamber of Commerce; and several individuals submitted testimony in opposition to this measure.

The Department of Labor and Industrial Relations; Hawai‘i State Commission on the Status of Women; Hawaii State Teachers Association; Democratic Party of Hawai‘i; Hawai‘i Alliance for Community-Based Economic Development; League of Women Voters of Hawaii; ILWU Local 142; Hawai‘i Public Health Institute; AAUW of Hawaii; Hawaii Children's Action Network; Hawai‘i Appleseed Center for Law and Economic Justice; Americans for Democratic Action; Democratic Party of Hawaii Labor Caucus; Midwives Alliance of Hawaii; PHOCUSED; Hawaiian Community Assets; Pride at Work Hawaii; Democratic Party of Hawai‘i Education Caucus; Catholic Charities Hawai‘i; Sierra Club of Hawai‘i; Mental Health America of Hawaii; IMUAlliance; Iron Workers Stabilization Fund; LGBT Caucus of the Democratic Party of Hawaii; Grassroot Institute of Hawaii; Moiliili Community Center; Society for Human Resource Management – Hawaii Chapter; International Alliance of Theatrical Stage Employees Local 665; Young Progressives Demanding Action; Living Wage Hawaii; Pono Hawai‘i Initiative; Healthy Mothers Healthy Babies; and many individuals submitted comments on this measure.

Your Committee has amended the measure by:

(1) Changing the proposed minimum wage rates to unspecified hourly amounts; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, 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. 789, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 789, S.D. 2, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair