Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3025 entitled:

begs leave to report as follows:

The purpose of this measure is to re-create a temporary window of opportunity for successor employers to utilize the predecessor employer's experience record in computing the successor employer's contribution rates for unemployment insurance.

Specifically, this measure opens the new window period from July 1, 2001 to December 31, 2002.

Your Committee finds that under previous law a window period had existed from December 31, 1988 to December 31, 1992. Your Committee further finds that allowing a successor employer to use the predecessor's experience record will assist in minimizing the start up costs of the successor employer, thereby increasing the employer's chances for survival.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3025 and recommends that it pass Third Reading.