Bill > HB202

This bill amends the definition of "adequate reserve fund" in Hawaii's unemployment compensation law to modify how the fund's size is calculated. Currently, the adequate reserve fund is calculated by multiplying a benefit cost rate by total employer remuneration, but the bill introduces a new approach for calendar years 2026 and beyond. The bill requires the Department of Labor and Industrial Relations to conduct an actuarial study to determine whether an increase in the multiplier used to calculate the fund is necessary to maintain sufficient reserves for unemployment insurance benefits. Specifically, the department must submit a report to the legislature before the 2026 regular session, detailing its findings and recommendations. The bill excludes the benefit cost rate from the unusual period of June 2020 through August 2021 (likely due to the COVID-19 pandemic's economic impact) when calculating the fund's size. The legislation is set to take effect on July 1, 2050, which is an unusually distant future date that may indicate this is a placeholder for further legislative action. The goal appears to be ensuring the unemployment compensation trust fund remains financially stable and can adequately support workers during periods of job loss.

Budget and Finance, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=202&year=2025