Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1160
                                        H.D. 1
                                        S.D. 2

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Judiciary, to which was referred H.B. No.
1160, H.D. 1, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this measure is to clarify existing law by
specifying that the Department of Labor and Industrial Relations'
Employment Security Appeals Referee Office (ESARO) may hold
hearings in counties other than the county in which the appeal
was filed.

     Your Committee finds that current law allows for hearings
outside the county in which an appeal is filed in cases in which
the parties consent or in order to ensure a fair and impartial
hearing.  The Department of Labor and Industrial Relations (DLIR)
originally requested that the requirement of obtaining a party's
consent be deleted in its entirety so that ESARO could conduct
the hearings by telephone from Honolulu, explaining that this
change is necessary to facilitate the timely disposition of
ESARO's hearing calendar.  However, your Committee believes that
such a change in the current hearing process would be inherently
unfair and that an aggrieved party deserves the right to object
to a telephone hearing initiated from another county.

     Testimony in support of this measure was submitted by the
Department of Labor and Industrial Relations.

                                   STAND. COM. REP. NO. 1598
                                   Page 2

     Upon further consideration, your Committee has amended this
measure by:

     (1)  Clarifying that a hearing may be held by telephone or
          by other suitable communication devices or technology,
          outside the county in which the appeal was filed so
          long as the parties are notified of their opportunity
          to object, and neither party objects;

     (2)  Clarifying that a party may appear by telephone or
          other technology if the party is unable to appear in
          person; and

     (3)  Clarifying that the location of a hearing is determined
          by the location of the hearing officer conducting the

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1160, H.D. 1, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 1160,
H.D. 1, S.D. 2.

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

                                   AVERY B. CHUMBLEY, Co-Chair

                                   MATTHEW M. MATSUNAGA, Co-Chair