STAND. COM. REP. NO.  625

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 106

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 106 entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYMENT SECURITY LAW,"

begs leave to report as follows:

     The purpose of this bill is to assist unemployed individuals by:

     (1)  Creating a self-employment assistance program to help              unemployed individuals start their own businesses; and

     (2)  Allowing eligible unemployed individuals to receive            weekly unemployment insurance benefits while working               full-time towards starting their own businesses, rather       than seeking employment.

     The Hawaii Alliance for Community Based Economic Development testified in support of this bill.  The Hawaii Business League testified in opposition to this measure.  The Department of Labor and Industrial Relations submitted comments.

     Self-employment is an excellent opportunity for individuals to support themselves and their families.  Allowing individuals to receive unemployment insurance benefits while working full-time towards establishing a business is one mechanism to achieve this self-reliance.

     However, your Committee recognizes the concerns raised by the Hawaii Business League regarding the funding mechanism for this venture.  Accordingly, your Committee has amended this bill by:

     (1)  Changing its effective date to July 1, 2059, to                    facilitate further discussion; and

     (2)  Making technical, nonsubstantive amendments for clarity,      consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 106, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 106, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

ALEX M. SONSON, Chair