STAND. COM. REP. 1089

Honolulu, Hawaii

, 2003

RE: S.B. No. 773

H.D. 1

 

 

 

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 S.B. No. 773 entitled:

"A BILL FOR AN ACT RELATING TO UNEMPLOYMENT INSURANCE,"

begs leave to report as follows:

The purpose of this bill is to provide greater flexibility for unemployed individuals to qualify for unemployment insurance (UI) benefits by:

(1) Requiring the Department of Labor and Industrial Relations (DLIR) to notify unemployed individuals, who do not have sufficient qualifying weeks or wages in the base period, of the option of designating an alternative base period (ABP);

(2) Defining ABP to mean:

(A) The last four completed calendar quarters immediately preceding the individual's benefit period; or

(B) The last three completed calendar quarters immediately preceding the benefit period and, of the calendar quarter in which the benefit period commences, the portion of the quarter that occurs before the commencing of the benefit period.

In addition, this bill:

(1) Allows DLIR, under certain conditions, to base determinations of eligibility for UI benefits on the affidavit of an individual;

(2) Requires the individual to furnish payroll documentation, if available, in support of the affidavit; and

(3) Requires that the determination of UI benefits based on an ABP shall be adjusted based upon the quarterly report of wage information from the employer.

ILWU Local 142 and Hawaii State AFL-CIO supported this bill. DLIR offered comments.

Workers are often disqualified for UI benefits because they do not have sufficient qualifying weeks of wages under the traditional base period. Your Committee finds that establishing an ABP will allow workers to include more recent wages in order to meet UI eligibility requirements, and assist low-wage workers to qualify for UI benefits.

In light of the war with Iraq, and the likely impacts on our economy, your Committee finds it imperative to take immediate steps to stabilize the economic situation of workers who may be severely impacted by a reduction of work hours or layoffs.

Your Committee recognizes however, that certain changes must be made for DLIR to implement the ABP option.

With these concerns in mind, your Committee has amended this bill by:

(1) Changing the definition of "ABP" to mean the four completed calendar quarters immediately preceding the first day of an individual's benefit year;

(2) Deleting the provision requiring DLIR to notify individuals, who do not have sufficient qualifying weeks or wages in the base period, of the option of designating that the base period shall be the ABP;

(3) Deleting the provisions relating to the use of affidavits and the use of quarterly reports of wage information received from the employer;

(4) Clarifying that for benefit years beginning after January 1, 2004, and thereafter, if an individual fails to establish a valid claim for UI benefits, then DLIR shall make a redetermination of entitlement based upon the ADP;

(5) Requiring individuals to satisfy the conditions of section 383-28(a)(5), Hawaii Revised Statutes (HRS), which contain certain minimum work week and wage requirements;

(6) Prohibiting employment and wages used to establish a benefit year from being reused to establish another benefit year;

(7) Requiring that the establishment of claims using the ABP shall be subject to the terms and conditions of section 383-33, HRS, relating to procedures used for determinations and in cases where the employer fails to furnish information necessary to determine claimant benefits; and

(8) Requiring that the establishment of claims using the ABP shall be subject to the terms and conditions of section 383-94, HRS, relating to requirements for records and reports.

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 S.B. No. 773, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 773,

H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

 

____________________________

MARCUS R. OSHIRO, Chair