Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 290, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to create a program to extend unemployment insurance benefits; provided that the federal Temporary Extended Unemployment Compensation program is not extended after May 31, 2003.

This measure also ensures that state benefits will cease once the unemployment insurance fund reaches the threshold where the Department of Labor and Industrial Relations would be required to increase the unemployment taxes paid by employers, conforms state statutory provisions to the federal Temporary Extended Unemployment Compensation Act of 2002, and permits the usage of unemployment insurance trust fund moneys for unemployment benefits as well as administrative costs.

Testimony in support of this measure was submitted by the ILWU Local 142. The Department of Labor and Industrial Relations, the Chamber of Commerce of Hawaii, and the Retail Merchants of Hawaii submitted testimony in opposition to this measure.

Your Committee finds that Hawaii's economy has experienced a significant downturn over the past several years, predominantly in the tourist industry and particularly since the terrorist attacks of September 11, 2001. This depressed economic state has caused an unprecedented number of individuals to fall victim to layoffs, work furloughs, and decreased work hours. Your Committee believes that the imminent threat of war will continue to further exacerbate the problem and mandates the need for assistance and support for those individuals who continue to be affected by the distressed state of the economy. Your Committee further believes that the passage of this measure will act as a necessary precaution in these unstable political and economic times.

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 H.B. No. 290, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.