STAND. COM. REP. NO. 709-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2553
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2553 entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYMENT SECURITY,"

begs leave to report as follows:

     The purpose of this bill is to conform state statutes to the
provisions of the federal Balanced Budget Act of 1997 (BBA).

     The BBA amended certain provisions of section 903 of the
Social Security Act to provide a special distribution of Reed Act
funds for fiscal years ending in 2000, 2001, and 2002 and to
require that these funds be expended exclusively for unemployment
insurance administrative expenses.  State statutes must conform
to these amendments in order to expend the special distribution
of Reed Act funds for the federal fiscal years 1999, 2000, and
2001.

     The Department of Labor and Industrial Relations testified
in support of this bill.

     Your Committee has amended this bill by making technical,
nonsubstantive changes for purposes of consistency, clarity, and
style.


 
 
 
 
 
 
                                 STAND. COM. REP. NO. 709-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2553, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 2553, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair