CONFERENCE COMMITTEE REP. NO. 232-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2510

H.D. 2

S.D. 1

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 2510, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCOME,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to incrementally:

(1) Increase the State's minimum wage to $12.00 per hour beginning October 1, 2022; $15.00 per hour beginning January 1, 2024; and $18.00 per hour beginning January 1, 2026; and

(2) Phase out the tip credit.

Your Committee on Conference finds that while the cost of living in the State continues to rise, the minimum wage has not been adjusted to a level that is necessary to offset the higher cost of living. Your Committee on Conference further finds that increasing the minimum wage will help to foster economic stability.

Your Committee on Conference has amended this measure by:

(1) Inserting a preamble;

(2) Inserting provisions that make the State earned income tax credit refundable and permanent, and providing for the carryforward of nonrefundable tax credits previously claimed;

(3) Changing the timespan and staggering of the minimum wage increases from $12.00 on October 1, 2022; $15.00 on January 1, 2024; and $18.00 on January 1, 2026; to $12.00 on October 1, 2022; $14.00 on January 1, 2024; $16.00 on January 1, 2026; and $18.00 on January 1, 2028; and

(4) Instead of phasing out the tip credit, increasing the tip credit incrementally to $1.50 per hour over a six-year period.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 2510, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 2510, H.D. 2, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ BRIAN T. TANIGUCHI Chair	____________________________ RICHARD H.K. ONISHI Co-Chair
____________________________ MICHELLE N. KIDANI Co-Chair	____________________________ SCOTT Y. NISHIMOTO Co-Chair