Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 2789 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify Act 6, Third Special Session Laws of Hawaii 2001, regarding reimbursement of payments to provide that the expenditure of money appropriated shall be for a specific period of time or when the money runs out.

Testimony in support of the measure was received from the Department of Labor and Industrial Relations and the Department of Commerce and Consumer Affairs' Insurance Division.

Your Committee finds that the terrorist attacks of September 11, 2001, sent devastating shockwaves through Hawaii's economy. The downturn in the tourism industry caused a ripple effect in all sectors of the State's economy, subjecting many workers to furloughs, layoffs, and reduced work hours. Although many of these workers qualify for relief through unemployment insurance benefits, in some cases, they are not able to continue their health insurance coverage due to their financial situation.

To this end, your Committee finds that 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 who cannot afford to pay for continued coverage. The clarifications to Act 6 that are contained in this measure will enable the State to effectively administer the temporary health insurance program and consequently ensure the continuation or provision of health insurance coverage to dislocated workers of the State.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2789 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.