STAND. COM. REP. NO. 1704

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 97
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.C.R. No. 97, S.D. 1, entitled:

     "SENATE CONCURRENT RESOLUTION URGING A COMPREHENSIVE STUDY
     OF THE IMPACTS OF RAISING THE STATE MINIMUM WAGE,"

begs leave to report as follows:

     The purpose of this Concurrent Resolution is to request the
Legislative Reference Bureau do a comprehensive study of the
impacts of raising the state minimum wage.

     Specifically, this Concurrent Resolution asks the Bureau to
study and evaluate the interplay between Hawaii's economy and the
minimum wage.

     Your Committee finds that advocates of a minimum wage
increase believe that the wage hike will raise employees out of
poverty and off the welfare rolls, thus reducing general fund
welfare payments and increasing income tax revenues.  On the
other hand, business community opponents believe that a wage hike
will adversely affect the business climate in Hawaii, increasing
entry level worker costs, reducing available entry level
positions, and increasing wages and benefits across the board.

     Your Committee finds, however, that this study requires data
and technical expertise that are not generally possessed by
legislative staff and service agencies, and therefore should be

 
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                                   STAND. COM. REP. NO. 1704
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carried out by an executive agency.  Accordingly, your Committee
has amended this Concurrent Resolution by replacing the
Legislative Reference Bureau with the University of Hawaii Center
for Labor Education and Research.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee concurs with the intent and purpose of S.C.R. No. 97,
S.D. 1, as amended herein, and recommends its adoption in the
form attached hereto as S.C.R. No. 97, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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