HOUSE OF REPRESENTATIVES	H.B. NO.	2323
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO EMPLOYMENT SECURITY.

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

SECTION 1.  Section 383-68, Hawaii Revised Statutes, is amended by amending subsections (c) and (d) to read as follows:

"(c)  Effective with calendar year 1992 and thereafter, before December 31 of the previous year the contribution rate schedule for the following calendar year shall be determined on the basis of the relationship between the most recent current reserve fund and the most recent adequate reserve fund, in accordance with this subsection and subsection (d).

     (1)  Whenever the ratio of the current reserve fund to the adequate reserve fund is greater than 1.69, contribution rate schedule A shall apply.

     (2)  Whenever the ratio of the current reserve fund to the adequate reserve fund is 1.3 to 1.69, contribution rate schedule B shall apply.

     (3)  Whenever the ratio of the current reserve fund to the adequate reserve fund is 1.0 to 1.29, contribution rate schedule C shall apply.

     (4)  Whenever the ratio of the current reserve fund to the adequate reserve fund is .80 to .99, contribution rate schedule D shall apply.

     (5)  Whenever the ratio of the current reserve fund to the adequate reserve fund is .60 to .79, contribution rate schedule E shall apply.

     (6)  Whenever the ratio of the current reserve fund to the adequate reserve fund is .40 to .59, contribution rate schedule F shall apply.

     (7)  Whenever the ratio of the current reserve fund to the adequate reserve fund is .20 to .39, contribution rate schedule G shall apply.

     (8)  Whenever the ratio of the current reserve fund to the adequate reserve fund is less than .20, contribution rate schedule H shall apply.

     [Notwithstanding the ratio of the current reserve fund to the adequate reserve fund, contribution rate schedule D shall apply for calendar years 2021 and 2022.]

Notwithstanding the ratio of the current reserve fund to the adequate reserve fund, contribution rate schedule D shall apply for calendar year 2023, and contribution rate schedule E shall apply for calendar year 2024.

(d)  Subject to the requirements of sections 383-63 to 383-69, an employer's contribution rate for calendar year 1992 and for each calendar year thereafter shall be that rate which appears on the same line as the employer's reserve ratio for that year in the contribution rate schedule applicable for the year as specified in subsection (c).

CONTRIBUTION RATE SCHEDULES (rates in percentages)

  Reserve Ratio      A   B    C    D    E    F    G    H

  .1500 and over     0.0  0.0   0.0   0.2   0.6   1.2   1.8   2.4

  .1400 to   .1499   0.0  0.0   0.1   0.4   0.8   1.4   2.0   2.6

  .1300 to   .1399   0.0  0.0   0.2   0.6   1.0   1.6   2.2   2.8

  .1200 to   .1299   0.0  0.1   0.4   0.8   1.2   1.8   2.4   3.0

  .1100 to   .1199   0.0  0.2   0.6   1.0   1.4   2.0   2.6   3.2

  .1000 to   .1099   0.1  0.3   0.8   1.2   1.6   2.2   2.8   3.4

  .0900 to   .0999   0.3  0.5   1.0   1.4   1.8   2.4   3.0   3.6

  .0800 to   .0899   0.5  0.7   1.2   1.6   2.0   2.6   3.2   3.8

  .0700 to   .0799   0.7  0.9   1.4   1.8   2.2   2.8   3.4   4.0

  .0600 to   .0699   0.9  1.1   1.6   2.0   2.4   3.0   3.6   4.2

  .0500 to   .0599   1.1  1.3   1.8   2.2   2.6   3.2   3.8   4.4

  .0300 to   .0499   1.3  1.5   2.0   2.6   3.0   3.6   4.2   4.8

  .0000 to   .0299   1.7  1.9   2.4   3.0   3.4   4.0   4.6   5.2

 -.0000 to  -.0499   2.1  2.3   2.8   3.4   3.8   4.4   5.0  [5.4]

5.2

 -.0500 to  -.0999   2.5  2.7   3.2   4.0   4.4   5.0  [5.4] [5.6]

5.2 5.4

 -.1000 to  -.4999   2.9  3.1   3.6   4.6   5.0  [5.4] [5.6] [5.8]

5.2 5.4 5.6

 -.5000 to  -.9999   3.4  3.6   4.2   5.2  [5.4] [5.6] [5.8] [6.0]

5.2 5.4 5.6 5.8

-1.0000 to -1.4999   4.1  4.2   4.8  [5.4] [5.6] [5.8] [6.0] [6.2]

5.2 5.4 5.6 5.8 6.0

-1.5000 to -1.9999   4.7  4.8  [5.4] [5.6] [5.8] [6.0] [6.2] [6.4]

5.2 5.4 5.6 5.8 6.0 6.2

-2.0000 and less   [5.4] [5.4] [5.6] [5.8] [6.0] [6.2] [6.4] [6.6]

5.2 5.2 5.4 5.6 5.8 6.0 6.2 6.4

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval and shall apply retroactively to January 1, 2021; provided that this Act shall be repealed on January 1, 2025, and section 383‑68(c) and (d), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day before the effective date of this Act.

INTRODUCED BY:

_____________________________

Report Title:

Employment Security; Unemployment Insurance; Reserve Fund; Rate Calculation; Employer Contribution; Moratorium; Sunset

Description:

Temporarily reduces employer contribution rates for unemployment insurance. Repeals 1/1/2025.

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