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 S.B. No. 773 entitled:

begs leave to report as follows:

The purpose of this measure is to amend chapter 383, Hawaii Revised Statutes, to permit the use of an alternative base period for the calculation of unemployment insurance benefits.

Testimony in support of this measure was submitted by the ILWU Local 142 and the Hawaii State AFL-CIO. The Department of Labor and Industrial Relations submitted comments on this measure.

Your Committee finds that this measure would allow the Department of Labor and Industrial Relations more flexibility in calculating unemployment insurance benefits, by allowing the base period to be calculated as either: (1) the last four completed quarters before the individual's base period, or (2) the last three completed quarters before the benefit period, plus that portion of the quarter that occurs before the benefit period begins. Your Committee finds that this adjustment would afford the Department more options in determining a base period that best reflects the employee's true earnings. If verification of wage earnings is not available, the employee may submit an affidavit from the employee, together with other supporting payroll information, if available. Your Committee finds that this would enhance the Department's ability to fulfill its function.

Your Committee further finds that twelve jurisdictions have enacted statutes that allow the use of alternative base periods in determining eligibility for unemployment insurance benefits. These states are: Connecticut, the District of Columbia, Georgia, Maine, Minnesota, New Hampshire, New Jersey, North Carolina, Ohio, Oklahoma, Rhode Island, and Washington. On average, benefits paid out of unemployment insurance trust funds have increased by only four to six per cent in states which allow the use of alternative base periods.

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. 773 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.