STAND. COM. REP. NO. 3885

Honolulu, Hawaii

RE: H.B. No. 2510

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2510, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCOME,"

begs leave to report as follows:

The purpose and intent of this measure is to incrementally increase the State's minimum wage.

More specifically, the measure:

(1) Increases 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) Reduces the tip credit to $.35 per hour beginning October 1, 2022; and zero cents per hour beginning January 1, 2026.

Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations; Department of Human Services; Hawaii County Council; Hawaii State Association of Counties; Hawaii State American Federation of Labor and Congress of Industrial Organizations; American Association of University Women of Hawaii; Hawaii Alliance of Nonprofit Organizations; Rainbow Family 808; Stonewall Caucus of the Democratic Party of Hawaii; Pride @ Work Hawaii; Hawaii Alliance for Community-Based Economic Development; Hawaii Workers Center; Chamber of Sustainable Commerce; League of Women Voters Hawaii; Hawaii Association of School Psychologists; International Alliance of Theatrical Stage Employees 665; Hawaii State Teachers Association; Hawaii Children's Action Network Speaks!; Church of the Crossroads; Hawaii Alliance for Progressive Action; United Public Workers, American Federation of State, County, and Municipal Employees Local 646; Democratic Party of Hawaii Education Caucus; Musicians' Association of Hawaii; Catholic Charities Hawaii; Imua Alliance; Hawaii Health and Harm Reduction Center; Hawaii Public Health Institute; Hawaii Ironworkers Stabilization Fund; Democratic Party of Hawaii Labor Caucus; Living Wage Hawaii; Hawaii Government Employees Association; Pono Hawaii Initiative; Democratic Party of Hawaii; International Union of Bricklayers and Allied Craftworkers, Local 1 of Hawaii; Puakalehua Early Learning Consortium; Raise Up Hawaii Kauai; Faith Action for Community Equity, Hawaii Workers Center, Raise Up Hawaii; Hawaii Clubhouse Advocacy Coalition; and numerous individuals.

Your Committee received written comments in opposition to this measure from the National Federation of Independent Business; Magics Beach Grill; Hawaii Food Manufacturers Association; Society of Human Resource Management Hawaii; Kona-Kohala Chamber of Commerce; Tiki's Grill and Bar; Hawaiian Chip Company; Hawaii Lodging and Tourism Association; Hawaiian Candies and Nuts, Ltd; Island Business Management, LLC; Gyotaku Japanese Restaurants; Il Gelato Hawaii; L&L Hawaiian Barbecue; and two individuals.

Your Committee received written comments on this measure from the Department of Budget and Finance; Hawaii Restaurant Association; Hawaii Food Industry Association; Retail Merchants of Hawaii; Hawaii Farm Bureau; Hawaii Petroleum Marketers Association; Kohala Coast Resort Association; Hawaii Appleseed Center for Law and Economic Justice; Chamber of Commerce Hawaii; Grassroot Institute of Hawaii; Maui Chamber of Commerce; KYD, Inc.; and two individuals.

Your Committee finds that incrementally increasing the minimum wage will help provide more economic stability for the State's low-income working residents without unduly burdening employers in the State.

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. 2510, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair