HB3167

SECTION 1. The purpose of this Act is to clarify the classification of the unemployment compensation fund, the workers' compensation special compensation fund, the temporary disability insurance special fund for disability benefits, and the prepaid health care special premium supplementation fund as trust funds. These funds were established as special funds and thus, were classified accordingly by the department of accounting and general services. This amendment is needed to comply with the State Auditor's recommendation that the department of labor and industrial relations should clarify the classification of these four special funds as trust funds. The attorney general has also concluded that these special funds fall within the definition of a trust fund or functions as a trust fund and has recommended that the discrepancy be addressed through legislative action.

SECTION 2. Section 383-121, Hawaii Revised Statutes, is amended to read as follows:

"§383-121 Unemployment compensation fund; establishment and control. There is established in the treasury of the State as a [~~special~~] trust fund, separate and apart from all public moneys or funds of the State, an unemployment compensation fund, which shall be administered by the department of labor and industrial relations exclusively for the purposes of this chapter. All contributions pursuant to this chapter shall be paid into the fund and all compensation and benefits payable pursuant to this chapter shall be paid from the fund. All moneys in the fund shall be mingled and undivided. The fund shall consist of:

(1) All contributions collected pursuant to this chapter;

(2) Interest earned on any moneys in the fund;

(3) Any property or securities acquired through the use of moneys belonging to the fund;

(4) All earnings of such property or securities;

(5) All moneys credited to this State's account in the unemployment trust fund pursuant to section 903 of the Social Security Act, as amended; and

(6) All other moneys received for the fund from any other source."

SECTION 3. Section 386-151, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is hereby created a trust fund to be known as the special compensation fund which shall consist of payments made to it as provided by law. The director of finance of the State shall be custodian of the fund, and all disbursements therefrom shall be paid by the director of finance upon orders by the director of labor and industrial relations."

SECTION 4. Section 392-61, Hawaii Revised Statutes, is amended to read as follows:

"[[]§392-61[]] Establishment of [~~special~~]trust fund for disability benefits. There is established in the treasury of the State, separate and apart from all public moneys or funds of the State, a [~~special~~] trust fund for disability benefits which shall be administered by the director exclusively for the purposes of this chapter. All contributions pursuant to this part shall be paid into the fund and all benefits payable under this part shall be paid from the fund. The fund shall consist of (1) all contributions collected pursuant to this part, together with any interest thereon; (2) all fines and penalties for the fund pursuant to this chapter; (3) all moneys collected by way of subrogation; (4) interest earned on any moneys in the fund; (5) any property or securities acquired through the use of moneys belonging to the fund; (6) all earnings of such property and securities; and (7) all other moneys received for the fund from any source."

SECTION 5. Section 393-41, Hawaii Revised Statutes, is amended to read as follows:

"[[]393-41[]] Establishment of [~~special~~] premium supplementation fund. There is established in the treasury of the State, separate and apart from all public moneys or funds of the State, a [~~special~~] trust fund for premium supplementation which shall be administered exclusively for the purposes of this chapter. All premium supplementations payable under this part shall be paid from the fund. The fund shall consist of (1) all money appropriated by the State for the purposes of premium supplementation under this part and (2) all fines and penalties collected pursuant to this chapter."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	3167
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII