Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1792, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to conform statutory provisions to Public Law 107-147, the Temporary Extended Unemployment Compensation Act of 2002, by eliminating the time limitations and restrictions on the use of Reed Act funds received in 2002.

This measure also earmarks federal unemployment compensation funds appropriated under the General Appropriations Act of 2003, for unemployment compensation and to supplant general fund appropriations for general administration.

Your Committee finds that Public Law 107-147, the Temporary Extended Compensation Act of 2002, provided for the expanded utilization of Reed Act funds for the payment of unemployment benefits or for the administration of state unemployment compensation law and public employment offices. Therefore, in addition to federal administrative funds provided to finance delivery of up to twenty-six weeks of temporary extended unemployment insurance benefits under the Temporary Extended Compensation Act of 2002, a state may also use transferred Reed Act funds for employment security administration purposes.

Your Committee determines that changes in the current statutory scheme are necessary to allow for the use of Reed Act funds to the fullest extent provided under federal law.

Your Committee has left the effective date as July 1, 2010, in order to promote the continued discussion on the amounts available and to determine whether the use of federal funds by the State can be expended in other areas of general administration.

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 H.B. No. 1792, H.D. 2, S.D. 1, and recommends that it pass Third Reading.