HOUSE OF REPRESENTATIVES	H.B. NO.	2585
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO UNEMPLOYMENT INSURANCE INTEREST PAYMENT.

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

SECTION 1.  Section 383-128, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The moneys in the employment and training fund may be used for funding:

     (1)  The operation of the state employment service for which no federal funds have been allocated;

     (2)  Business-specific training programs to create a more diversified job base and to carry out the purposes of the new industry training program pursuant to section 394-8;

     (3)  Industry or employer-specific training programs where there are critical skill shortages in high growth occupational or industry areas;

     (4)  Training and retraining programs to assist workers who have become recently unemployed or are likely to be unemployed;

     (5)  Programs to assist residents who do not otherwise qualify for federal or state job training programs to overcome employment barriers; [and]

     (6)  Training programs to provide job-specific skills for individuals in need of assistance to improve career employment prospects[.]; and

(7) The payment of interest due on Title XII advances made under the provisions of section 1202(b) of the Social Security Act, as amended, to the unemployment compensation fund."

     SECTION 2.  Section 383-129, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In addition to contributions determined by section 383-68, every employer, except an employer who has selected an alternative method of financing liability for unemployment compensation benefits pursuant to section 383-62, [or an employer who has been assigned a minimum rate of zero per cent or the maximum rate of five and four-tenths per cent in accordance with section 383-68,] shall be subject to an employment and training fund assessment at a rate of .01 per cent of taxable wages as specified in section 383-61.  If interest is due on a Title XII advance under the provisions of section 1202(b) of the Social Security Act, as amended, the employment and training fund assessment shall be used to pay the interest due.  The director shall have the discretion to determine the amount of the employment and training assessment rate for the calendar year 2012 in increments of .01 per cent.  Notwithstanding any provisions of this chapter to the contrary, any amounts collected but not applied to interest payments due in 2012, shall not be returned retroactively to any employer and shall be retained in the employment and training fund."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall apply retroactively to January 1, 2012; provided that on January 1, 2013, this Act shall be repealed and sections 383‑128 and 383-129, Hawaii Revised Statutes, shall be reenacted in the form in which it read on December 31, 2010.

INTRODUCED BY:	_____________________________
	BY REQUEST

Report Title:

Unemployment Insurance Interest Payment

Description:

Authorizes the Department of Labor and Industrial Relations director to increase the employment and training assessment in increments of .01 per cent retroactive to January 1, 2012, for payment of interest on federal loans for unemployment insurance benefits.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.