STAND. COM. REP. NO. 51

Honolulu, Hawaii

RE: S.B. No. 716

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 716 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to improve the State's unemployment insurance system through deregulation, modernization, and streamlining of the registration and notification requirements.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations.

Your Committee finds that the unemployment insurance system is a critical resource for supporting individuals who have lost employment income. However, the current system requires modernization to improve services, increase accessibility, and strengthen its legal and operational framework. Your Committee finds that this measure will streamline the work registration process, update electronic communication processes, and allow claimants to change their tax withholdings multiple times. These changes will modernize the system and increase flexibility and accessibility for claimants in need of financial support during the period they have no or limited work income.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 716, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 716, S.D. 1, and be referred to your Committees on Ways and Means and Judiciary.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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HENRY J.C. AQUINO, Chair