STAND. COM. REP. NO.  505

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 113

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Economic Revitalization & Business and Labor & Public Employment, to which was referred H.B. No. 113 entitled:

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

beg leave to report as follows:

     The purpose of this bill is to establish a voluntary work sharing program to avoid layoffs and allow employees who are employed for a portion of the week to collect unemployment benefits.

     The Department of Labor and Industrial Relations (DLIR) supported the intent of this bill.

     In light of testimony submitted by DLIR, your Committees have amended this measure by deleting its contents and inserting provisions to establish a short-time compensation program under DLIR that conforms to model language provided to DLIR by the federal Department of Labor.  As amended, this bill establishes requirements, standards, and procedures for the short-time compensation program.

     Your Committees have also amended this measure by:

     (1)  Inserting a savings clause to ensure that the measure does not adversely affect federal funding;

     (2)  Requiring DLIR to adopt rules to implement the short-time compensation program;

     (3)  Making it effective on July 1, 2112, to encourage further discussion; and

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

     Recognizing the financial implications of this measure, your Committees respectfully request that your Committee on Finance investigate the use of employment and training funds that may be available to help offset the costs of this important program.

     As affirmed by the records of votes of the members of your Committees on Economic Revitalization & Business and Labor & Public Employment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 113, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 113, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Economic Revitalization & Business and Labor & Public Employment,

____________________________ KARL RHOADS, Chair

____________________________ ANGUS L.K. MCKELVEY, Chair