STAND. COM. REP. NO.  90

 

Honolulu, Hawaii

                , 2013

 

RE:   H.B. No. 915

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 915 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to improve the integrity of the State's unemployment insurance program.

 

Specifically, the measure would authorize the Department of Labor and Industrial Relations to:

 

(1)  Recoup certain overpayments of unemployment benefits from an employer's account in the unemployment trust fund and from the federal income tax refund payments of the employer and the individual who received the overpayments;

 

(2)  Offset an employer's default of contributions, advance payments, or reimbursement against the employer's federal income tax refund payments; and

 

(3)  Use moneys in the State's account in the unemployment trust fund for the payment of fees authorized under the Internal Revenue Code for the review of reductions relating to credits and refunds.

 

     Testimony in support of the measure was received from the Department of Labor and Industrial Relations.

 

     Your Committee finds that this measure is necessary to conform Hawaii's employment security laws to the federal Trade Adjustment Assistance Extension Act of 2011 and to make facilitating amendments.  The federal law requires states to charge overpaid amounts to an employer's account when an employer fails to respond to the department's written request for information and to impose a specified minimum penalty on fraudulent overpayments.  Failure to adopt these changes may result in the loss of $13,000,000 in federal grants.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 915 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

 

 

 

 

____________________________

MARK M. NAKASHIMA, Chair