STAND. COM. REP. NO. 773

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1088

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1088, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to clarify the laws relating to partial unemployment benefits.

 

     Specifically, this measure:

 

(1)  Makes permanent the partial unemployment benefits system;

 

(2)  Protects an individual from being disqualified for unemployment benefits if the individual, under certain conditions, separates from a secondary employer offering part-time employment; and

 

(3)  Removes restrictions on being eligible for continued claim certification for partial unemployment benefits where an intervening period of total unemployment extends beyond eight consecutive weeks.

 

     Your Committee received comments in support of this measure from ILWU Local 142.

 

     Your Committee received comments in opposition to this measure from Dwight Takamine, Director, Department of Labor and Industrial Relations; and Chamber of Commerce of Hawaii.

 

     Your Committee finds that a partial unemployment system provides benefits to both the temporarily laid-off employee as well as the regular employer.  In many cases, partial unemployment occurs when an employer requires a temporary shutdown of all or part of the employer's operations and provides some benefits (usually medical coverage) as an incentive for employees to return to their jobs when work becomes available.  The arrangement is a "win-win" for both sides.  Employees have income support during the temporary layoff while the employer is assured that experienced employees will return to their jobs and the cost of recruitment and training of new employees can be avoided.

 

     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 is in accord with the intent and purpose of S.B. No. 1088, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair