CONFERENCE COMMITTEE REP. NO. 104

Honolulu, Hawaii

, 2023

RE: S.B. No. 1383

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1383, S.D. 1, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to

(1) Institute an unemployment insurance technology assessment to be imposed on employers at an unspecified rate of taxable wages;

(2) Establish the Unemployment Insurance Technology Special Fund into which the assessment shall be deposited, and which shall be used to defray the costs of information technology infrastructure for the Unemployment Insurance Program; and

(3) Clarify the order of priority to apply collections from delinquent employers to delinquent amounts under Hawaii's Employment Security Law.

Your Committee on Conference finds that federal funds are currently available for the infrastructure and equipment necessary to modernize the Unemployment Insurance Program, and the costs of operating and maintaining the information technology systems are not covered by federal funds. This measure would provide a permanent funding mechanism to support the necessary continued maintenance of the Unemployment Insurance Division's information technology infrastructure.

Your Committee on Conference has amended this measure by:

(1) Specifying that the unemployment insurance technology assessment be at a rate of .01 percent of taxable wages as specified in section 383-61, Hawaii Revised Statutes; and

(2) Making it effective upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1383, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1383, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SCOT Z. MATAYOSHI Co-Chair	____________________________ SHARON MORIWAKI Chair
____________________________ ANDREW GARRETT Co-Chair	____________________________ MAILE S.L. SHIMABUKURO Co-Chair