STAND. COM. REP. NO. 214-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2720

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 2720 entitled:

"A BILL FOR AN ACT RELATING TO GENDER EQUITY,"

begs leave to report as follows:

The purpose of this measure is to require publicly held domestic and foreign corporations to include a certain number of women among the directors of their corporate boards.

Your Committee received testimony in support of this measure from the American Association of University Women of Hawaii, Common Cause Hawaii, Midwives Alliance of Hawaii, Breastfeeding Hawaii, Planned Parenthood Votes Northwest and Hawaii, and five individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs.

Your Committee finds that women still lag substantially behind men in terms of their representation in leadership positions. With increased awareness of the gender gap, there is greater emphasis on work environments to create a more diverse and inclusive workplace culture. Your Committee notes that this measure supports an organizational culture that embraces greater representation of women in decision making and leadership positions.

Your Committee has amended this measure by:

(1) Changing its effective date to January 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

At its hearing, your Committee noted that the Department of Commerce and Consumer Affairs' Business Registration Division's primary function is the registration, processing, and maintenance of the State's business industry. Should your Committee on Consumer Protection and Commerce choose to hear this measure, your Committee respectfully requests that it consider the Department of Commerce and Consumer Affairs' testimony that the requirements contained in this measure require the Business Registration Division to carry out duties that are beyond the Division's statutory function as a ministerial agency.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2720, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2720, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

AARON LING JOHANSON, Chair