Honolulu, Hawaii



RE:    H.B. No. 2598

       H.D. 2

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 2598, H.D. 2, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to require the Department of Labor and Industrial Relations to establish paid family leave for all workers in the State by January 1, 2020.


     Your Committee received written comments in support of this measure from the Office of the Governor, Department of Human Services, Hawai`i State Commission on the Status of Women, Hawaii State Democratic Women's Caucus, AARP Hawaii, American Civil Liberties Union of Hawaii, Mental Health America of Hawaii, Hawaii Women's Coalition, Hawaii State Teachers Association, Caring Across Generations, Hawaii Public Health Institute, International Brotherhood of Electrical Workers Local Union 1260, Hawaii State AFL-CIO, Hawaii Government Employees Association, Hawaii Appleseed Center for Law & Economic Justice, Hawaii Children's Action Network, YWCA Oahu, PHOCUSED, Planned Parenthood Votes Northwest and Hawaii, Community Alliance on Prisons, IMUAlliance, American Association of University Women-Hawaii, Healthy Mothers Healthy Babies, Americans for Democratic Action Hawaii, Hawaii Women Lawyers, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawai`i, and approximately thirty-three individuals.


     Written comments in opposition were received from the Hawaii Transportation Association, Hawaii Food Industry Association, National Federation of Independent Business, Society for Human Resource Management-Hawaii, Il Gelato Hawaii, Maui Chamber of Commerce, Kualapuu Market Ltd., Maui Soda & Ice Works, Ltd., Chamber of Commerce Hawaii, Hawaii Restaurant Association, Gyotaku Japanese Restaurants, Larry Jefts Farms, LLC, Building Industry Association of Hawai`i, Retail Merchants of Hawaii, Centerscale Automation Hawaii Inc., Hawaii Credit Union League, and five individuals.


     The Department of Labor and Industrial Relations, Legislative Reference Bureau, The Queen's Health Systems, Hawaii Lodging & Tourism Association, ProService Hawaii, General Contractors Association of Hawaii, Hawaii Pacific Health, and ILWU Local 142   submitted written comments on the measure.


Your Committee finds that this measure will benefit employees who cannot afford to take unpaid leave to care for a family member with a serious health condition. 


     Your Committee has amended this measure by:


     (1)  Deleting language that:


          (A)  Established a paid family leave special fund and referenced the special fund;


          (B)  Required the Department of Labor and Industrial Relations to select a paid family leave model and adopt rules that establish paid family leave;


          (C)  Established a Paid Family Leave Implementation Board within the Department of Labor and Industrial Relations and required the Implementation Board to develop an analysis and implementation plan and report to the Legislature;


          (D)  Required the Legislative Reference Bureau to conduct a study, including an actuarial analysis; and


          (E)  Required the collection of payments from employers and employees by July 1, 2021;


     (2)  Changing the date by which paid family leave shall be established from January 1, 2020, to January 1, 2021;


     (3)  Specifying that a paid family leave program shall include an expanded temporary disability insurance program and shall begin processing payments by July 1, 2022;


     (4)  Specifying that the Department of Labor and Industrial Relations shall report to the Legislature on its progress in meeting its obligations under this measure;


     (5)  Changing the means of financing the appropriation to the Department of Labor and Industrial Relations to establish a paid family leave program, from the paid family leave special fund to the general fund; and


     (6)  Making technical nonsubstantive changes for the purposes of clarity, consistency, and style.


     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 is in accord with the intent and purpose of H.B. No. 2598, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2598, H.D. 2, S.D. 2.


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