STAND. COM. REP. NO. 614

Honolulu, Hawaii

RE:    S.B. No. 947

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 947, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO UNEMPLOYMENT CONTRIBUTION RATES,"

begs leave to report as follows:

     The purpose of this measure is to change from calendar quarter to calendar year the effective date at which two related employers must recalculate their unemployment insurance contribution rates whenever one employer transfers its organization, trade, or business to the other, and both employers are under substantially common ownership, management, or control.

     This measure also corrects a cross reference to the Internal Revenue Code.

     Your Committee believes that this measure will conform Hawaii's unemployment insurance law to federal law to provide uniform application of unemployment insurance rate calculations.  Your Committee finds that under the present law, the discrepancy in the effective date for rate re-calculations causes multiple calculations of rates within a year.

     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 S.B. No. 947, S.D. 1, and recommends that it pass Third Reading.

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

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DONNA MERCADO KIM, Chair