REPORT TITLE:
Labor and Industrial Relations


DESCRIPTION:
The purpose of this bill is to conform to the provisions of the
federal Balanced Budget Act (BBA) of 1997.  (HB2553 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2553
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EMPLOYMENT SECURITY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 383-123, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§383-123  Withdrawals; administrative use.(a)
 
 4 Withdrawals.  Moneys requisitioned from the State's account in
 
 5 the unemployment trust fund shall be used exclusively for the
 
 6 payment of benefits and for refunds of contributions pursuant to
 
 7 section 383-76 and section 383-7(6),  except that moneys credited
 
 8 to this State's account pursuant to section 903 of the Social
 
 9 Security Act, as amended, shall be used exclusively as provided
 
10 in subsection (b) [of this section].  The director of finance
 
11 shall from time to time, with the approval of the department of
 
12 labor and industrial relations in accordance with rules
 
13 prescribed by the comptroller of the State, requisition from the
 
14 unemployment trust fund such amounts, not exceeding the amount
 
15 standing to this State's account therein, as it deems necessary
 
16 for the payment of such benefits and refunds of contributions for
 
17 a reasonable future period.  Upon receipt thereof the moneys
 
18 shall be deposited in the benefit account.  Expenditures of such
 
19 moneys in the benefit account and refunds from the clearing
 
20 account shall not be subject to any provisions of law requiring
 

 
Page 2                                                     2553
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 specific appropriations or other formal release by state officers
 
 2 of moneys in their custody.  All benefits and refunds of
 
 3 contributions shall be paid from the fund upon warrants drawn
 
 4 upon the director of finance by the comptroller of the State
 
 5 supported by vouchers approved by the department.  Any balance of
 
 6 moneys requisitioned from the unemployment trust fund which
 
 7 remains unclaimed or unpaid in the benefit account after the
 
 8 expiration of the period for which the sums were requisitioned
 
 9 shall either be deducted from estimates for, and may be utilized
 
10 for the payment of, benefits and refunds during succeeding
 
11 periods, or, in the discretion of the department, shall be
 
12 redeposited with the Secretary of the Treasury of the United
 
13 States, to the credit of this State's account in the unemployment
 
14 trust fund, as provided in section 383-122.
 
15      (b)  Administrative use.  Moneys credited to the account of
 
16 this State in the unemployment trust fund by the Secretary of the
 
17 Treasury of the United States pursuant to section 903 of the
 
18 Social Security Act, as amended, may be requisitioned and used
 
19 for the payment of benefits and for the payment of expenses
 
20 incurred for the administration of this [chapter pursuant to a
 
21 specific appropriation by the legislature;] State's unemployment
 
22 compensation law and public employment offices pursuant to a
 
23 specific appropriation of the legislature; provided that the
 

 
Page 3                                                     2553
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 expenses are incurred and the money is requisitioned after the
 
 2 enactment of an appropriation law which:
 
 3      (1)  [specifies] Specifies the purposes for which the moneys
 
 4           are appropriated and the amounts appropriated
 
 5           therefor[,];
 
 6      (2)  [limits] Limits the period within which the moneys may
 
 7           be obligated to a period ending not more than two years
 
 8           after the date of the enactment of the appropriation
 
 9           law[,]; and
 
10      (3)  [limits] Limits the amount which may be obligated
 
11           during a twelve-month period beginning on July 1 and
 
12           ending on the next June 30 to an amount which does not
 
13           exceed the amount by which (A) the aggregate of the
 
14           amounts credited to the account of this State pursuant
 
15           to section 903 of the Social Security Act, as amended,
 
16           during the same twelve-month period and the thirty-four
 
17           preceding twelve-month periods exceeds; and (B) the
 
18           aggregate of the amounts obligated pursuant to this
 
19           subsection and charged against the amounts credited to
 
20           the account of this State during such thirty-five
 
21           twelve-month periods.
 
22 For the purposes of this subsection, amounts which are obligated
 
23 for administration or paid out for benefits shall be charged
 

 
Page 4                                                     2553
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 against equivalent amounts which were first credited and which
 
 2 are not already so charged; except that no amount obligated for
 
 3 administration during a twelve-month period specified herein may
 
 4 be charged against any amount credited during such twelve-month
 
 5 period earlier than the thirty-fourth preceding such period.
 
 6      Moneys credited to the account of this State pursuant to
 
 7 section 903 of the Social Security Act, as amended, may not be
 
 8 withdrawn or used except for the payment of benefits and for the
 
 9 payment of expenses for the administration of this chapter
 
10 pursuant to this subsection.
 
11      The appropriation, obligation, and expenditure or other
 
12 disposition of money appropriated under this subsection shall be
 
13 accounted for in accordance with standards established by the
 
14 United States Secretary of Labor.  Moneys appropriated for the
 
15 payment of expenses of administration pursuant to this subsection
 
16 shall be requisitioned as needed for the payment of obligations
 
17 incurred under the law appropriating the moneys and, upon
 
18 requisition, shall be deposited in the employment security
 
19 administration fund from which such payments shall be made.
 
20 Moneys so deposited shall, until expended, remain a part of the
 
21 unemployment compensation fund and, if it will not be expended
 
22 within one week after it is withdrawn from the unemployment trust
 
23 fund, shall be returned at the earliest practical date to the
 

 
Page 5                                                     2553
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1 Secretary of the Treasury of the United States for credit to this
 
 2 State's account in the unemployment trust fund.
 
 3      (c)  Notwithstanding subsection (b), moneys credited to the
 
 4 State's account in federal fiscal years 2000, 2001, and 2002
 
 5 shall be used solely for the administration of the unemployment
 
 6 compensation program and are not subject to the specific
 
 7 appropriation requirements of subsection (b)."
 
 8      SECTION 2.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 3.  This Act shall take effect upon its approval.