STAND. COM. REP. NO. 2316

Honolulu, Hawaii

RE:    S.B. No. 2324

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Labor, to which was referred S.B. No. 2324 entitled:

"A BILL FOR AN ACT RELATING TO UNEMPLOYMENT INSURANCE BENEFITS,"

begs leave to report as follows:

     The purpose of this measure is to authorize an individual that is attached to a regular employer who is not offering work to still receive unemployment insurance benefits even if that individual voluntarily or involuntarily separates from part-time employment.

     Testimony in support of this measure was submitted by three private organizations.  Testimony in opposition of this measure was submitted by one state agency.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that it is essential to preserve unemployment insurance benefits for certain unemployed or underemployed individuals that are attached to a regular employer who is not offering work.  Your Committee also finds that it is not fair or equitable to withdraw unemployment insurance benefits from an unemployed or underemployed individual that seeks out part-time work, even if that individual is later voluntarily or involuntarily separated from the part-time employer.  Your Committee further finds that the Department of Labor and Industrial Relations has identified some concerns about this measure that your Committee deems to be valid and worthy of further discussion on its merits.  In passing this measure it is the intent of your Committee to work closely with the Department of Labor and Industrial Relations to adequately resolve these concerns.

     Your Committee has amended this measure by:

     (1)  Amending section 383-29.6, Hawaii Revised Statutes, instead of section 383-30, Hawaii Revised Statutes, to more appropriately address the intent of this measure;

     (2)  Removing the repeal date of section 383-29.6, Hawaii Revised Statutes, to ensure that the amendments made herein are not repealed pursuant to Act 170, Session Laws of Hawaii 2009;

     (3)  Clarifying the requirements for unemployment insurance benefits under this measure, including applicable wage requirements for the base period of the current claim; and

     (4)  Authorizing an individual that is attached to a regular employer who is not offering work to still receive unemployment insurance benefits under certain circumstances if the individual separates from an employer offering part-time employment.

     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. 2324, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2324, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

DWIGHT Y. TAKAMINE, Chair