AUGUSTA – The Legislature passed a new bill early Thursday morning to extend unemployment benefits to part-time workers. The new effort attempts to appease Gov. Angus King – who vetoed a similar measure just days earlier – by adding a provision that ends the benefits once federally designated funds are exhausted.

“This legislation takes care of the chief executive’s concerns about future costs,” said Rep. George Bunker, D-Kossuth Township, sponsor of the measure. “It has a sunset provision that ends this program Jan. 1, 2006, unless the Legislature then votes to continue it.”

King vetoed the earlier bill that provided unemployment benefits to part-time workers who lost their jobs through no fault of their own because it created a new benefit that eventually would cost employers an increase in the taxes they pay to fund the unemployment insurance system. Under existing law, part-time workers can receive benefits only if they are willing to accept full-time employment.

“I have not really looked at the [latest] legislation,” King said in an interview Thursday morning at daybreak, just moments after lawmakers adjourned the session. “I will look at it and decide what I will do with this, and announce my decision within the next few days.”

Because of the adjournment, King can either sign the bill or exercise a “pocket veto” that would put the measure in limbo. Under the state Constitution, if this Legislature meets again for three days in a special session, they will have the opportunity to override the veto. If they do not meet again, which is not likely, the measure will not become law.

King said he is concerned the bill creates a new program that relies on one-time federal funds. The money for the expanded benefits program comes from the economic stimulus package that President Bush signed in February. Maine received $32.5 million as its share of the surplus in the federal unemployment trust fund as part of the federal legislation.

Rep. Russell Treadwell, R-Carmel, opposed the measure because he believes it will eventually lead to an increase in employer tax rates. He said it will be very difficult for a future Legislature to repeal the new benefit. “I have no doubt this would mean a tax increase down the road,” he said.

Supporters of the legislation argue the measure is needed to address the changing nature of the state work force. Experts say about a third of the more than 600,000 Mainers in the work force are working part-time jobs and another 10 percent are self-employed and not covered by the unemployment system.

And while part-time workers technically are covered, current law will allow part-time workers to receive benefits only if they are willing to take full-time work.

“That does not recognize what has happened with workers,” said Laura Fortman, executive director of the Maine Women’s Lobby. “This is a very important issue for a lot of women. Over 70 percent of part-time workers are women.”

Chris Hastedt of the Maine Equal Justice Project, an Augusta-based group that advocates for people with low incomes, said the legislation updates a system first set up in the 1930s to provide a safety net for workers when they lose their jobs from layoffs. “This legislation addresses what we see as a serious inequity in the unemployment system and it would not cost employers,” she said.

But employers are not sure they won’t be faced with a bill for the benefits in later years.

“We still have very real concerns about this legislation,” said Peter Gore, a lobbyist for the Maine State Chamber of Commerce.

The unemployment insurance program is a federal and state partnership that pays benefits to unemployed workers who have lost jobs through no fault of their own. Benefits are paid through payroll taxes assessed on employers, and provide partial, temporary replacement of lost wages. States set their own eligibility and benefit levels with federal guidelines.