STAND. COM. REP. NO. 2167

Honolulu, Hawaii

RE: S.B. No. 2818

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2818 entitled:

"A BILL FOR AN ACT RELATING TO THE MINIMUM WAGE,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Department of Business, Economic Development, and Tourism to conduct a study on the effect on businesses of increasing the minimum wage and appropriate moneys to conduct the study.

Your Committee received testimony in support of this measure from the Hawaiʻi Farm Bureau and Retail Merchants of Hawaii.

Your Committee received testimony in opposition to this measure from the Democratic Party of Hawaiʻi, Imua Alliance, and Democratic Party of Hawaiʻi Labor Caucus.

Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism and UNITE HERE Local 5.

Your Committee finds that the assessment of increasing the minimum wage in the State needs to be thorough and comprehensive to factor in the adjustment's larger impact on the State's economy. Small agricultural businesses are especially vulnerable to any increase in costs. This measure will help ensure any minimum wage increase considers a proper balance in light of these concerns.

Your Committee acknowledges the concerns raised by the Department of Business, Economic Development, and Tourism that they do not have the adequate resources to conduct this study. The Department estimates the cost to hire a research firm to conduct surveys and prepare a report to be approximately $200,000. Should your Committee on Ways and Means choose to hear this measure, your Committee respectfully requests that this amount be considered.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2060, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2818, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2818, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

________________________________

LYNN DECOITE, Chair