STAND. COM. REP. NO.  1281

 

Honolulu, Hawaii

                , 2009

 

RE:   S.B. No. 688

      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 S.B. No. 688, 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 nonsupervisory and nonconfidential employees in the event of the sale, transfer, merger, or other divestiture of a business employing 100 or more persons by requiring that the successor business hire all incumbent employees unless it is substantially dissimilar from the old business, or experiences a reduction in human resource needs.

 

     The Hawaii Government Employees Association; ILWU Local 142; United Public Workers, AFSCME, Local 646, AFL-CIO; International Brotherhood of Electrical Workers; Hawaii Teamsters Local 996; Laborers' International Union North America, Local 368; Pride At Work Hawai'I; and Hawaii Building and Construction Trades Council, AFL-CIO testified in support of this bill.  The Department of Labor and Industrial Relations; Hawaii Credit Union League; Building Industry Association of Hawaii; Hawaii Business League; National Federation of Independent Business; Hawaii Automobile Dealers Association; Retail Merchants of Hawaii; General Contractors Association of Hawaii; Hawaii Hotel & Lodging Association; Chamber of Commerce of Hawaii; Maui Chamber of Commerce; Limtiaco Company; Outrigger Hotels, ABC Stores; and numerous concerned individuals opposed this measure.

 

     Many businesses voiced concern about the effect that this bill would have on potential transfers of business interests in Hawaii, as well as its impact on the perception of Hawaii's business climate.

 

     Upon reflection, your Committee has amended this bill to give a successor employer that is subject to the employee security requirements of this bill, a general excise tax exemption.  The one-year exemption, beginning at the time the successor employer starts to conduct business, is intended to offset the burdens placed on the divesture transaction.

 

     Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

 

     Your Committee respectfully requests the Committee on Finance, to which this bill is next referred, to examine the timing of the general excise tax exemption provided in this bill, as well as related issues.

 

     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 S.B. No. 688, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 688, H.D. 2.

 

 

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

 

 

 

 

____________________________

ANGUS L.K. MCKELVEY, Chair