Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 968 entitled:

begs leave to report as follows:

The purpose of this bill is to encourage unemployed persons to seek gainful employment by maximizing the weekly benefit amount that an eligible individual who is unemployed is entitled to receive.

The Hawaii State AFL-CIO, Hotel Employees Restaurant Employees Local 5, and a concerned individual testified in support of this bill. The Department of Labor and Industrial Relations supported the intent of the measure. ILWU Local 142 opposed the bill.

At the present time, many individuals who maintained multiple jobs but were laid off from one of them have had their unemployment benefits offset by the wages received from their other part-time employment less $50. As a result, such individuals have seen their total income reduced through no fault of their own and face a disincentive against seeking employment.

Your Committee would like to inform the Committee on Finance that an additional $31,000,000 is available in federal funds under the Temporary Extended Unemployment Compensation Act to pay for unemployment benefits. These moneys should help to mitigate the financial effect that this bill will have on the State's Unemployment Compensation Fund.

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. 968 and recommends that it pass Second Reading and be referred to the Committee on Finance.