Bill Text: HI SB1304 | 2012 | Regular Session | Introduced
Bill Title: Employment Security
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1304 Detail]
Download: Hawaii-2012-SB1304-Introduced.html
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THE SENATE |
S.B. NO. |
1304 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO EMPLOYMENT SECURITY LAW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to provide for a mechanism of collecting special assessments from employers in a fair and equitable manner to pay for interest on unpaid Title XII loans that are due on September 30, 2011. Act 2, passed during the Regular Session of 2010, assisted employers by providing relief from a scheduled increase in the unemployment insurance (UI) contribution rates for calendar years 2010 and 2011. This action, however, contributed to the insolvency of the UI trust fund beginning in December 2010 and required the State of Hawaii to borrow monies from the federal government in order to pay unemployment insurance benefits. The Employment and Training (E&T) fund is the only cost effective mechanism available to charge a surtax on the employer. It is for this reason that the current law must be amended to include the payment of interest on Title XII loans as one of the uses of the E&T fund and to expand the assessment on all employers. The surtax must be included in the notices that are mailed out to the employers in early March of each year.
SECTION 2. Section 383-128, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The moneys in the employment and training fund may be used for funding:
(1) The operation of the state employment service for which no federal funds have been allocated;
(2) Business-specific training programs to create a more diversified job base and to carry out the purposes of the new industry training program pursuant to section 394-8;
(3) Industry or employer-specific training programs where there are critical skill shortages in high growth occupational or industry areas;
(4) Training and retraining programs to assist workers who have become recently unemployed or likely to be unemployed;
(5) Programs to assist residents who do not otherwise
qualify for federal or state job training programs to overcome employment
barriers; [and]
(6) Training programs to provide job-specific skills
for individuals in need of assistance to improve career employment prospects[.];
and
(7) The payment of interest due under the provisions of section 1202(b) of the Social Security Act, as amended, for advances made to the unemployment compensation fund."
SECTION 3. Section 383-129, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In addition to contributions
determined by section 383-68, every employer, except an employer who has
selected an alternative method of financing liability for unemployment
compensation benefits pursuant to section 383-62[, or an employer who has
been assigned a minimum rate of zero per cent or the maximum rate of five and
four-tenths per cent in accordance with section 383-68], shall be subject
to an employment and training fund assessment at a rate of .01 per cent of
taxable wages as specified in section 383-61. If interest is due on a Title
XII advance under the provisions of section 1202(b) of the Social Security Act,
the employment and training fund assessment shall be increased to pay the
interest due. The director shall have the discretion to determine the amount
of such increase in the employment and training assessment rate for the
calendar year 2011. The increase in the employment and training assessment
rate shall be in increments of .01 per cent."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval and shall apply retroactively to January 1, 2011; provided that on January 1, 2012, this Act shall be repealed and sections 383-128 and 383-129, Hawaii Revised Statutes, are reenacted in the form in which they read on December 31, 2010.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Employment Security
Description:
Provides for payment of interest due on Title XII loans from the Employment and Training (E&T) Fund. Authorizes the Department of Labor and Industrial Relations director to increase the E&T assessment in increments of .01 per cent retroactive to January 1, 2011.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
