REPORT TITLE:
Employment security


DESCRIPTION:
Phases out the Employment and Training Fund assessment from .05
per cent to .01 per cent of taxable wages over a three-year
period.  (SB2905 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2905
THE SENATE                              S.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO EMPLOYMENT SECURITY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 383-129, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "(a)  Effective January 1, 1992, through June 30, 1997, and
 
 4 from January 1, 1999, through December 31, [2000,] 2003, in
 
 5 addition to contributions determined by section 383-68, every
 
 6 employer, except an employer who has selected an alternative
 
 7 method of financing liability for unemployment compensation
 
 8 benefits pursuant to section 383-62 or an employer who has been
 
 9 assigned a minimum rate of zero per cent or the maximum rate of
 
10 five and four-tenths per cent in accordance with section 383-68,
 
11 shall be subject to an employment and training fund assessment at
 
12 a rate of:
 
13      (1)  .05 per cent of taxable wages for 2000;
 
14      (2)  .03 per cent of taxable wages for 2001; and
 
15      (3)  .01 per cent of taxable wages for 2002;
 
16 as specified in section 383-61.
 
17      For 2003 and all subsequent years, there shall be no
 
18 employment and training fund assessments."
 

 
Page 2                                                     2905
                                     S.B. NO.           H.D. 2
                                                        
                                                        

 
 1      SECTION 2.  The auditor shall conduct an audit of the
 
 2 employment and training fund, established by section 383-128,
 
 3 Hawaii Revised Statutes, and shall report the findings and
 
 4 recommendations at least twenty days prior to the convening of
 
 5 the regular session of 2001.  The audit shall include but not be
 
 6 limited to an assessment of:
 
 7      (1)  The programs for which expenditures from the fund have
 
 8           been made;
 
 9      (2)  The nexus between the revenue sources and expenditures;
 
10      (3)  The moratorium on employer assessments from 1997
 
11           through 1998;
 
12      (4)  The characterization of the fund as a special fund or a
 
13           trust fund; and
 
14      (5)  The feasibility and merit of levying a nominal training
 
15           charge.
 
16      SECTION 3.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect upon its approval.