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New garments regs adopted
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Posted on Nov 22 2005
New regulations have been adopted to allow garment manufacturers seeking to expand their operations to take over the business licenses of other factories that have already shut down.
Adopted on an emergency basis, the new regulations implement Public Law 14-82, which was enacted on Aug. 2, 2005. They take effect immediately and will remain effective for 120 days.
P.L. 14-82 directs the Attorney General’s Office, Department of Finance and Department of Labor to adopt the implementing regulations in fewer than the regular 30-day notice.
Furthermore, the three agencies said the emergency adoption was necessary because they had determined that Ågthe existing prohibition on the transfer of business licenses within the garment industry is unnecessarily preventing expansion at a time when many other challenges threaten the survival of the industry.Åh
The regulations implementing P.L. 14-82 apply only to businesses receiving a transfer business license for garment manufacturing. They also allow garment companies to employ foreign garment workers who may be displaced due to factory closure or downsizing.
But the regulations maintain strict compliance with the existing ceiling on the number of garment workers within the Commonwealth. Garment employers will not be allowed to recruit overseas if there are still 15,727 garment workers on island.
A related regulation, which waives for new employers the requirement of filing the statement of user fees paid in the previous year, is also maintained.
ÅgThis measure accomplishes the foregoing while still maintaining strict compliance with the existing 15,727 ceiling on the number of garment workers within the commonwealth,Åh Gov. Juan N. Babauta has said of P.L. 14-82. ÅgThis measure also promotes economic stability in the garment industry without rewarding or benefiting those garment manufacturers that ceased operations prior to Jan. 1, 2005, especially thoseÅcthat may have failed to honor their statutory or contractual obligations to their employees and the Commonwealth.Åh
