Report Title:

Unemployment Insurance; State Additional Benefits

Description:

Creates a temporary program providing additional benefits to unemployed workers by extending their unemployment insurance benefits in the event of an economic emergency.

HOUSE OF REPRESENTATIVES

H.B. NO.

876

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO UNEMPLOYMENT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that, in the aftermath of the September 11, 2001, terrorist attacks and the damaging effect on the airline and visitor industries, Hawaii's economy experienced an immediate and significant downturn with an unprecedented number of workers being laid off.

The legislature further finds that since the events of September 11, the ongoing war on terrorism and potential future confrontations with other nations or groups that are violently opposed to the United States may impact heavily on the citizens and resources of this State. It is therefore incumbent upon the State to ensure that contingencies are in place should an attack on the United States or some other event cause hardship to Hawaii's residents.

The purpose of this Act is to create a temporary program providing additional benefits to unemployed workers who may be laid off following a future attack on the United States by extending their unemployment insurance benefits. The funds for

state additional benefits payable under this Act shall be withdrawn from the unemployment compensation trust fund pursuant to sections 383-121 to 383-123, Hawaii Revised Statutes. If necessary, additional moneys may be allocated from the state general fund and used for the payment of expenses incurred for the administration of state additional benefits.

This Act will take effect, however, only if the governor issues a proclamation declaring an economic emergency for any period during the interim between the 2003 and 2004 regular sessions of the legislature. An economic emergency is one in which there has been a two hundred per cent statewide increase in initial claims filed for unemployment benefits, other than claims resulting from a labor dispute, when compared with initial claims filed in the corresponding week of the preceding calendar year.

SECTION 2. For the purpose of this Act:

"Applicable benefit year" means the individual's current benefit year if the individual has an unexpired benefit year, or the individual's most recent benefit year for regular benefits ending after the date an economic emergency has occurred as specified in the governor's proclamation issued pursuant to section 9.

"Benefit year" has the same meaning as defined in section 383-1, Hawaii Revised Statutes.

"Continued claim certification" means an application that certifies the completion of a week of total, part-total, or partial unemployment to claim benefits for a week of unemployment as defined in rules adopted by the department of labor and industrial relations.

"Eligibility period" for the receipt of state additional benefits shall be the period beginning on the first Sunday following the date that this Act takes effect and ending one calendar year later.

"Initial claim" includes a new claim, an additional claim, or a reopened claim as defined in rules adopted by the department of labor and industrial relations.

"Regular benefits" means the unemployment insurance benefits paid on an initial claim filed under chapter 383, Hawaii Revised Statutes, except as provided for in sections 383-168 to 383-176, Hawaii Revised Statutes.

"State additional benefits" means the unemployment compensation benefits payable under this Act.

"Week of unemployment" has the same meaning as "weeks of unemployment" as that term is defined in section 383-1, Hawaii Revised Statutes.

SECTION 3. An individual shall be eligible to receive a payment of state additional benefits with respect to a week of unemployment in accordance with this Act; provided that:

(1) The individual filed an initial claim or continued claim certification for regular benefits after the date an economic emergency has occurred as specified in the governor's proclamation issued pursuant to section 9, and was paid benefits for the period after that date;

(2) The week of unemployment falls within the eligibility period;

(3) The individual exhausted all rights to receive regular benefits under chapter 383, Hawaii Revised Statutes, after the date an economic emergency has occurred as specified in the governor's proclamation issued pursuant to section 9, or if regular benefits were not exhausted, the individual's applicable benefit year expired after that date;

(4) The individual is not eligible to receive unemployment benefits under federal law or the laws of any other state, or any federal or federal-state extended benefits program, after the date an economic emergency has occurred as specified in the governor's proclamation issued pursuant to section 9;

(5) Any additional or extended unemployment benefits paid under federal law or the laws of any other state, or any federal or federal-state extended benefits program, shall not be deducted from the total state additional benefits amount the individual is eligible for, but shall be in addition to state additional benefits, and state additional benefits shall be paid only when the federal, federal-state, or other state's extended benefits are not payable to the individual; and

(6) The individual has met all other conditions of eligibility that apply to regular benefits as required under chapter 383, Hawaii Revised Statutes, except that no individual shall be required to serve a waiting period in the eligibility period.

SECTION 4. (a) The weekly state additional benefits amount payable to an individual for a week of total unemployment in the eligibility period shall be an amount equal to the weekly benefit amount payable in the individual's applicable benefit year.

(b) The maximum state additional benefits amount payable to any eligible individual with respect to the individual's applicable benefit year shall be thirteen times the individual's weekly state additional benefits amount.

(c) No state additional benefits shall be payable for any week beginning prior to the eligibility period or after the close of the eligibility period.

SECTION 5. Benefits paid to an individual under the state additional benefits program shall be charged against the account of any of the individual's base period employers, except for employers on a contributory plan under section 383-61, Hawaii Revised Statutes.

SECTION 6. Except when the result would be inconsistent with this Act, chapter 383, Hawaii Revised Statutes, which applies to claims for, or the payment of, regular benefits, shall apply to claims for, and the payment of, state additional benefits.

SECTION 7. No provision in this Act shall apply to the payment of state additional benefits if the provision conflicts with federal statutes and jeopardizes the receipt of federal administrative funding and certification for the Federal Unemployment Tax Act employer tax offset credit.

If any provision in this Act jeopardizes the receipt of federal funds, the governor may to revise any provision of this Act to the extent required to maximize the receipt of federal funds. The governor shall promptly report any such revision and reasons therefor to the legislature at the next legislative session thereafter.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $560,000, or so much thereof as may be necessary for fiscal year 2003-2004, to carry out the purposes of this Act.

The sum appropriated shall be expended by the department of labor and industrial relations; provided that the appropriation authorized by this section shall be made only if the governor issues a proclamation as provided in section 9 before 5:00 p.m. on January 13, 2004.

SECTION 9. This Act shall take effect only if the governor issues a proclamation declaring an economic emergency for any period between May 2, 2003, to January 13, 2004, if the governor finds that, during this time period, there has been a two hundred per cent statewide increase in initial claims filed for unemployment benefits, other than claims resulting from a labor dispute, when compared with initial claims filed in the corresponding week of the preceding calendar year; provided that this Act shall be repealed on January 14, 2004.

INTRODUCED BY:

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