STAND. COM. REP. NO. 1115-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3129

S.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 Labor & Tourism, to which was referred S.B. No. 3129, S.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 appropriate funds to the Unemployment Compensation Trust Fund as a cash infusion for the fund.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations and Retail Merchants of Hawaii. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the coronavirus disease 2019 pandemic created an unprecedented period of unemployment in the State and resulted in the rapid depletion of funds from the Unemployment Compensation Trust Fund. According to the Department of Labor and Industrial Relations, it is estimated that for every $100,000,000 added to the Unemployment Compensation Trust Fund, the statutory schedule of employer taxes will likely drop one level in the following calendar year. This measure will thereby provide some relief to employers still recovering from the effects of the pandemic.

As affirmed by the record of votes of the members of your Committee on Labor & Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3129, S.D. 1, and recommends that it pass Second Reading and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Tourism,

____________________________

RICHARD H.K. ONISHI, Chair