STAND. COM. REP. NO.  172

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 33

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 33 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII LIVING WAGE LAW,"

begs leave to report as follows:

     The purpose of this bill is to ensure that public funds used for contracted services provide a living wage to the persons providing the services by:

(1)  Establishing a living wage of $9.43 an hour, to be recalculated every year by the Department of Labor and Industrial Relations;

(2)  Requiring that contractors pay employees providing services under the contract, at least the living wage; and

(3)  Providing for enforcement of the law.

     DLIR commented on this bill.

     Your Committee finds that where government funds are being used to pay wages, these wages should at a minimum allow the persons providing services under the contract to live at or above the federal poverty level, which is the intent of this bill.  However, your Committee recognizes that this measure may have the effect of reducing the ability of nonprofits to provide services to the needy, and respectfully requests the Committee on Labor to examine this concern.

     Your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2034, to encourage further discussion of the measure; and

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

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 33, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 33, H.D. 1, and be referred to the Committee on Labor & Public Employment.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair