STAND. COM. REP. NO. 600-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2469

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 2469, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNEMPLOYMENT COMPENSATION TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish an Unemployment Compensation Insolvency Special Fund to be expended solely to resolve an Unemployment Compensation Trust Fund insolvency emergency declared by the Governor;

(2) Allow the Governor to declare an Unemployment Compensation Trust Fund insolvency emergency and to expend monies from the special fund if the Director of Finance determines that the trust fund balance is insufficient to meet the State's obligations; and

(3) Appropriate monies into the Unemployment Compensation Insolvency Special Fund.

Your Committee received testimony in support of this measure from the Hawaii Food Industry Association. Your Committee received testimony in opposition to this measure from Unite Here! Local 5 Hawaii. Your Committee received comments on this measure from the Department of Labor and Industrial Relations, Department of Budget and Finance, Parents and Children Together, and Tax Foundation of Hawaii.

Your Committee finds that the coronavirus disease 2019 pandemic and the associated governmental responses to curtail the spread of the virus have significantly impacted the State's economy and created an unprecedented period of unemployment that rapidly depleted funds within the Unemployment Compensation Trust Fund. This measure will establish an additional fund dedicated to replenishing the Unemployment Compensation Trust Fund when the trust fund's obligations are insufficient to meet the State's obligations and the Governor declares an Unemployment Compensation Trust Fund insolvency emergency.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2469, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair