STAND. COM. REP. NO. 299

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1574
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Environment, to which was
referred S.B. No. 1574 entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYMENT,"

begs leave to report as follows:

     The purpose of this measure is to require successor
employers to retain incumbent employees upon the divestiture,
sale, or acquisition of a business.

     Testimony in support of this measure was received from the
Hawaii State AFL-CIO, the ILWU Local 142, Unity House, Inc., and
seven individuals.  Testimony in opposition to the measure was
received from the Department of Labor and Industrial Relations,
the Chamber of Commerce of Hawaii, the Legislative Information
Services of Hawaii, and Jas. W. Glover, Ltd.

     Your Committee finds that it is in the State's interest to
provide a stable employment environment for its residents and
maintain a smooth continuity in the delivery of services when an
establishment is sold or transferred.  Your Committee believes
that this measure merits further discussion and refinement by
parties affected by the measure.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1574 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

 
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                                   STAND. COM. REP. NO. 299
                                   Page 2



                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and
                                   Environment,



                                   ______________________________
                                   BOB NAKATA, Chair

 
a                                                     SB1574