STAND. COM. REP. NO. 1041-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3128

S.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Labor & Tourism, to which was referred S.B. No. 3128, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE ADEQUATE RESERVE FUND,"

begs leave to report as follows:

The purpose of this measure is to amend the definition of "adequate reserve fund" for calendar years 2023 through 2030 to exclude the benefit cost rate from June 2020 through August 2021.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations, Hawaii Food Industry Association, and Maui Chamber of Commerce. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that the calculation of the Adequate Reserve Fund is designed to ensure that there are sufficient reserves in the Unemployment Compensation Trust Fund to pay unemployment insurance benefits. Your Committee further finds that this measure will allow contributory employers to replenish the Unemployment Compensation Trust Fund and help to reestablish the fund's integrity without facing the highest contribution schedules in future years as Hawaii's economy continues to recover from the coronavirus disease 2019 pandemic.

As affirmed by the record of votes of the members of your Committee on Labor & Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3128, S.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Tourism,

____________________________

RICHARD H.K. ONISHI, Chair