Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 2531 entitled:

begs leave to report as follows:

The purpose of this bill is to clarify that the expenditure of money appropriated for COBRA reimbursement payments, under Act 6, Third Special Session laws of Hawaii 2001, shall be for a specific period of time or until funds for these payments run out.

The Department of Labor and Industrial Relations and the Department of Commerce and Consumer Affairs testified in support of this measure.

The terrorist attacks of September 11, 2001, devastated tourism in Hawaii and crippled an already struggling economy. The downturn in the visitor industry caused a ripple effect in all segments of the economy, resulting in large numbers of layoffs and furloughs, and a reduction in many employees' work hours. This created a burden for many individuals with regards to continued health insurance benefits.

Act 6, Third Special Session Laws of Hawaii 2001, was enacted to provide temporary health insurance for unemployed persons who lost their health insurance on or after September 11, 2001, or individuals who cannot afford to continue to pay for health coverage. This bill clarifies the specific period these benefits are available for eligible persons.

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

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2531, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2531, H.D. 1, and be referred to the Committee on Finance.