STAND. COM. REP. NO. 1554

Honolulu, Hawaii

RE:    H.B. No. 1399

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1399, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INCARCERATED PERSONS,"

begs leave to report as follows:

     The purpose of this measure is to clarify that inmates who participate in work, education, and vocational training programs are exempt from statutory employee benefits.

     Your Committee received testimony in support of the bill from the Department of Public Safety and from the Department of Labor and Industrial Relations.

     Your Committee finds that the Federal Unemployment Tax Act already exempts inmates from statutory employee benefits but the state law does not explicitly provide for a similar exemption.  Your Committee further finds that if inmates are considered employees of the State, the cost of unemployment insurance and other benefits could force the closure of important rehabilitative programs.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report,

your Committee is in accord with the intent and purpose of H.B. No. 1399, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair