STAND. COM. REP. NO. 3619

Honolulu, Hawaii

RE: H.B. No. 2165

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2165, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYMENT SECURITY LAW,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the qualifications for unemployed individuals who are eligible to receive unemployment benefits.

Specifically, beginning April 1, 2027, this measure:

(1) Removes the two-year limitation on the recoupment of overpayments and limits the overpaid amount and the penalty assessment amount that may be deducted from future benefits payable to an individual;

(2) Requires the Department of Labor and Industrial Relations to assess and collect a service charge for dishonored unemployment insurance assessments;

(3) Specifies that employers shall report separation and wage information within five calendar days of notice being sent, whether by mail or electronic notification; and

(4) Increases the penalty for an employer's failure to report separations or wages, or failure to file wage reports.

Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations and University of Hawaii Professional Assembly.

Your Committee received written comments on this measure from UNITE HERE Local 5.

Your Committee finds that this measure will improve operations related to unemployment benefits and align state law with federal unemployment insurance requirements.

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 H.B. No. 2165, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

________________________________

DONOVAN M. DELA CRUZ, Chair