STAND. COM. REP. NO. 464-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2984
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Economic
Development and Business Concerns, to which was referred H.B. No.
2984 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to increase the minimum wage by:

     (1)  Raising it to $5.75 per hour beginning January 1, 2001;
          and 

     (2)  Providing for incremental increases based on the
          average consumer price index beginning January 1, 2001.

     The Hawaii State AFL-CIO, ILWU Local 142, Hawaii State
Teachers Association, Hawaii Nurses Association, and the
Affordable Housing and Homeless Alliance supported this bill.
The American Friends Service Committee and an Individual
supported the intent of this bill.  The Department of Labor and
Industrial Relations commented on this bill.  The Hawaii
Restaurant Association, National Federation of Independent
Business, Liberty House, Hawaii Business League, Hawaii Chamber
of Commerce, and several individuals opposed this bill.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 464-00
                                 Page 2

 
     Upon further discussion, your Committees find that raising
the minimum wage will create overall economic gains that will
outweigh any short-term losses.  

     However, your Committees also find that linking the minimum
wage increases to the consumer price index would not be in the
State's best interests.  Your Committees further find that
increasing the minimum wage in 2001 will place an undue burden
upon businesses.

     Therefore, your Committees have amended this measure by:

     (1)  Increasing the minimum wage to $5.75 on January 1,
          2002;

     (2)  Increasing the tip credit by an equal percentage to
          twenty-two cents on January 1, 2002; and

     (3)  Making technical, nonsubstantive changes for purposes
          of style and clarity.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Economic
Development and Business Concerns that are attached to this
report, your Committees are in accord with the intent and purpose
of H.B. No. 2984, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as H.B. No. 2984, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Economic
                                   Development and Business
                                   Concerns,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ROBERT N. HERKES, Chair            TERRY NUI YOSHINAGA, Chair