STAND. COM. REP. NO. 1813

Honolulu, Hawaii

RE: H.B. No. 477

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Ways and Means and Judiciary, to which was referred H.B. No. 477, H.D. 1, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to amend certain aspects of the Hawaii Employment Security Law.

More specifically, this measure:

(1) Amends the definition of "registered for work" or "registration for work";

(2) Repeals the requirement to post work availability online;

(3) Amends the qualifications for unemployed individuals who are able to receive certain unemployment benefits;

(4) Beginning April 1, 2027, authorizes electronic notification of determinations or redeterminations of unemployment claims; and

(5) Repeals language that limited an individual's ability to change a previously elected withholding status to once during a benefit year.

Your Committees received written comments in support of this measure from the Department of Labor and Industrial Relations and IUPAT District Council 50.

Your Committees received written comments in opposition to this measure from SHRM Hawaii.

Your Committees received written comments on this measure from the Chamber of Commerce Hawaii.

Your Committees find that this measure establishes a foundation for transitioning the State to a modernized unemployment insurance system while improving services for individuals. Your Committees also find that by streamlining the process for individuals to register for work, this measure addresses existing delays and denials caused by system navigation challenges. Your Committees further find that enabling the electronic delivery of unemployment insurance documents and appeal notifications ensures secure, efficient, and more accessible communication for individuals and reduces dependency on traditional paper and mail processes. Additionally, your Committees find that allowing individuals to adjust their tax withholding multiple times enhances flexibility and responsiveness to changing financial circumstances and improves user experience.

Your Committees have amended this measure by changing the effective date from July 1, 2050, to July 1, 2025.

As affirmed by the records of votes of the members of your Committees on Ways and Means and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 477, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 477, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Judiciary,

________________________________ KARL RHOADS, Chair

________________________________ DONOVAN M. DELA CRUZ, Chair