STAND. COM. REP. NO. 1646

Honolulu, Hawaii

RE:    H.B. No. 1500

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1500, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to temporarily increase the maximum weekly unemployment benefit amount to seventy-five per cent of an average weekly wage.

     Generally, the measure also temporarily increases to $150, the weekly earnings disregarded by an employee and increases the taxable wage base for an employee to $13,000.  The measure also changes the requirements of the adequate reserve fund to reflect the temporary change.

     Your Committee received comments in support of the measure from the Hawaii State AFL-CIO, the Retail Merchants of Hawaii, the Chamber of Commerce of Hawaii, and the ILWU Local 142.  The Attorney General submitted comments on this measure.  The National Federation of Independent Businesses submitted comments in opposition to the measure.

     Your Committee finds that unemployment benefits are necessary to allow an unemployed worker to pay for necessities of life during periods of unemployment.  The benefits enable the local workforce to remain self-sufficient and independent while seeking gainful employment.

     Your Committee has amended the measure by:

     (1)  Clarifying the calculation of the adequate reserve fund for years 2008 to 2010; and

     (2)  Making technical amendments for the purposes of clarity and style.

     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. 1500, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1500, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair