Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3 entitled:

begs leave to report as follows:

The purpose of this measure is to create a temporary program providing additional unemployment benefits to unemployed workers by extending their unemployment insurance benefits.

Basically, this bill provides extended unemployment benefits to individuals who filed for unemployment benefits after September 11, 2001, who are unemployed between the first Sunday following the date this bill becomes law and June 30, 2002, and whose regular unemployment benefits have been exhausted or whose applicable benefit year expires after September 11, 2001.

Furthermore, this bill provides the extended benefits for up to thirteen weeks. Also, this measure specifies that funds for the extended benefits will be paid from the unemployment compensation trust fund and also from the general fund, if necessary. Moreover, this measure maintains employers contribution rates to the trust fund for calendar year 2002 at schedule C.

Testimony in support of this measure was received from the Department of Labor and Industrial Relations, the Hawaii State Teachers Association, the Maui Hotel Association, the Hawaii State AFL-CIO, the Chamber of Commerce of Hawaii, the Hawaii Nurses Association, and the local affiliate of the National Alliance for the Mentally Ill. No testimony in opposition to the measure was received.

Your Committee finds that bold and proactive steps are needed to rebuild Hawaii's economy following the events of September 11, 2001. This measure is necessary to provide purchasing power to workers who have been rendered jobless as a result of layoffs subsequent to September 11, 2001, and whose attempts to seek suitable work have been frustrated in a depressed economy. The Department of Labor and Industrial Relations testified that every dollar paid in unemployment benefits has an actual impact of $2.15 on the economy, therefore, the supplemental unemployment compensation benefits will stimulate business activity and in turn improve the local economic outlook.

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 concurs with the intent and purpose of S.B. No. 3 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.