HB2097.DOC

SECTION 1. Chapter 398, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part

partial wage replacement for leave

§398-A Partial wage replacement for leave trust fund. (a) There is established outside the state treasury, a trust fund to be known as the "partial wage replacement for leave trust fund".

(b) The trust fund shall consist of employee contributions, which shall not exceed per cent of each employee's wages per pay period, as well as interest earned and income, dividends, refunds, rate credits, and other returns received by the fund. It is hereby declared that any and all sums contributed or paid from any source to the fund created by this part, and all assets of the fund including any and all interest and earnings on the same, are and shall be held in trust by the department for the exclusive use and benefit of the employee-beneficiaries and shall not be subject to appropriation for any other purpose whatsoever.

(c) The trust fund shall be used to provide an eligible employee with twelve weeks per calendar year of paid family leave; provided that an employee shall not be paid more than sixty-six per cent of the employee's monthly wage.

(d) The trust fund shall be under the control of and administered by the department.

(e) After fiscal year 2014-2015, the partial wage replacement for leave trust fund shall become self-sustaining through employee contributions.

§398-B Wage withholding. (a) Each employee shall make a contribution to the partial wage replacement for leave trust fund per pay period.

(b) If an employee's contribution to the fund is not withheld and transmitted to the fund, the employee shall pay per cent of the employee's wage per pay period directly to the fund by the first day of each month.

(c) The department of taxation shall administer and oversee each employee's contribution to the partial wage replacement for leave trust fund."

SECTION 2. Section 398-1, Hawaii Revised Statutes, is amended by amending the definition of "employer" to read as follows:

""Employer" means any individual or organization, including the State, any of its political subdivisions, any instrumentality of the State or its political subdivisions, any partnership, association, trust, estate, joint stock company, insurance company, or corporation, whether domestic or foreign, or receiver or trustee in bankruptcy, or the legal representative of a deceased person, who employs one [~~hundred~~] or more employees for each working day during each of twenty or more calendar weeks in the current or preceding calendar year."

SECTION 3. Section 398-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) An employee shall be entitled to a total of [~~four~~] twelve weeks of family leave during any calendar year [~~upon the birth of a child of the employee or the adoption of a child, or to care~~]:

(1) To care for or bond with the employee's child within twelve months of the child's birth, foster placement, or placement for adoption with the employee; or

(2) To care for the employee's self, child, spouse or reciprocal beneficiary, or parent with a serious health condition."

SECTION 4. Section 398-3, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Nothing in this chapter shall entitle an employee to more than a total of [~~four~~] twelve weeks of leave in any twelve-month period."

SECTION 5. Section 398-4, Hawaii Revised Statutes, is amended by amending its title and subsections (a) and (b) to read as follows:

"§398-4 [~~Unpaid leave~~] Leave permitted; relationship to paid leave; sick leave. (a) Pursuant to section 398-3[,] and section 398-A, an employee shall be entitled to [~~four~~] twelve weeks of family leave. [~~The family leave shall consist of~~ ~~unpaid leave, paid leave, or a combination of paid and unpaid leave.~~] If an employer provides paid family leave other than that required by this chapter for fewer than [~~four~~] twelve weeks, [~~the additional~~] that period of leave [~~added~~] shall be subtracted from the twelve weeks required by section 398-3 to attain the [~~four-week~~] twelve-week total [~~may be unpaid~~].

(b) Except as otherwise provided in subsection (c), an employee may elect to substitute any of the employee's accrued paid leaves, including but not limited to vacation, personal, or family leave for any part of the [~~four-week~~] twelve-week period in subsection (a)."

SECTION 6. Section 398-2, Hawaii Revised Statutes, is repealed.

["~~[§398-2] Inapplicability.~~ ~~The rights provided under this chapter shall not apply to employees of an employer with fewer than one hundred employees.~~"]

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 for the purpose of hiring and employing an administrator, administrative assistant, and an accountant to perform functions relating to the administration of the partial wage replacement for leave trust fund, including the oversight of payroll deductions, administrative processes, and payment to eligible employees.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 8. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 9. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2014.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2097
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII