Funds

HRS div. 1, tit. 21, ch. 383, pt. V

in effect

HRS §383-121 Unemployment compensation trust fund; establishment and control

383-121. Unemployment compensation trust fund; establishment and control There is established in the treasury of the State as a trust fund, separate and apart from all public moneys or funds of the State, an unemployment compensation fund, which shall be administered by the department of labor and industrial relations exclusively for the purposes of this chapter. All contributions pursuant to this chapter shall be paid into the fund and all compensation and benefits payable pursuant to this chapter shall be paid from the fund. All moneys in the fund shall be mingled and undivided. The fund shall consist of: (1) All contributions collected pursuant to this chapter; (2) Interest earned on any moneys in the fund; (3) Any property or securities acquired through the use of moneys belonging to the fund; (4) All earnings of such property or securities; (5) All moneys credited to this State's account in the unemployment trust fund pursuant to section 903 of the Social Security Act, as amended; and (6) All other moneys received for the fund from any other source. [L 1939, c 219, §9(a); am L 1941, c 304, §1, subs 28; RL 1945, §4263; RL 1955, §93-120; am L 1957, c 145, §1(a); am L Sp 1959 2d, c 1, §27; HRS §383-121; am L 1987, c 119, §5; am L 2013, c 100, §4]

HRS §383-121.5 Renumbered

383-121.5. Renumbered as §383-127.

HRS §383-122 Accounts and deposit

383-122. Accounts and deposit The director of finance shall maintain within the fund three separate accounts: (1) A clearing account; (2) An unemployment trust fund account; (3) A benefit account. All moneys payable to the fund, upon receipt thereof by the director of finance, shall be immediately deposited in the clearing account. The director of finance of the State shall be the treasurer and custodian of the fund and shall administer the fund in accordance with directions of the department of labor and industrial relations. All moneys in the clearing account after clearance thereof shall, except as herein otherwise provided, be deposited immediately with the Secretary of the Treasury of the United States to the credit of the account of this State in the unemployment trust fund, established and maintained pursuant to section 904 of the Social Security Act, as amended, any provisions of law in this State relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this State to the contrary notwithstanding. Refunds of contributions payable pursuant to section 383-76 and section [383-7(a)(6)] may be paid from the clearing account or the benefit account. The benefit account shall consist of all moneys requisitioned from the State's account in the unemployment trust fund in the United States treasury. Except as herein otherwise provided, moneys in the clearing and benefit accounts may be deposited in any depositary bank in which general funds of the State may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund. Moneys in the clearing and benefit accounts shall not be commingled with other state funds, but shall be maintained in separate accounts on the books of the depositary bank. The money shall be secured by the depositary bank to the same extent and in the same manner as required by the general depositary law of this State; and collateral pledged for this purpose shall be kept separate and distinct from any collateral pledged to secure other funds of the State. The director of finance shall be liable on the director's official bond for the faithful performance of the director's duties in connection with the unemployment compensation fund provided for under this chapter. The liability on the official bond shall be effective immediately upon the enactment of this provision. All sums recovered on such surety bond for losses sustained by the unemployment compensation fund shall be deposited in the fund. [L 1939, c 219, §9(b); am L 1941, c 304, §1, subs 29; RL 1945, §4264; RL 1955, §93-121; am L Sp 1959 2d, c 1, §§14, 27; am L 1963, c 114, §1; HRS §383-122; gen ch 1985; am L 1987, c 119, §6]

HRS §383-123 Withdrawals; administrative use

383-123. Withdrawals; administrative use (a) Withdrawals. Moneys requisitioned from the State's account in the unemployment trust fund shall be used exclusively for the payment of benefits, refunds of contributions pursuant to section 383-76 and section 383-7(a)(6), and for payment of fees authorized under section 6402(f) of the Internal Revenue Code, except that moneys credited to this State's account pursuant to section 903 of the Social Security Act, as amended, shall be used exclusively as provided in subsection (b). The director of finance shall from time to time, with the approval of the department of labor and industrial relations in accordance with rules prescribed by the comptroller of the State, requisition from the unemployment trust fund such amounts, not exceeding the amount in the State's account, as it deems necessary for the payment of benefits and refunds of contributions for a reasonable future period. The moneys shall be deposited in the benefit account. Expenditures of such moneys in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of moneys in their custody. All benefits and refunds of contributions shall be paid from the fund upon warrants drawn upon the director of finance by the comptroller of the State supported by vouchers approved by the department. Any balance of moneys requisitioned from the unemployment trust fund that remains unclaimed or unpaid in the benefit account after the expiration of the period for which the sums were requisitioned shall either be deducted from estimates for, and may be used for the payment of, benefits and refunds during succeeding periods or, in the discretion of the department, shall be redeposited with the Secretary of the Treasury of the United States, to the credit of this State's account in the unemployment trust fund, as provided in section 383-122. (b) Administrative use. Moneys credited to the account of this State in the unemployment trust fund by the Secretary of the Treasury of the United States pursuant to section 903 of the Social Security Act, as amended, may be requisitioned and used for the payment of benefits and for the payment of expenses incurred for the administration of this State's unemployment compensation law and public employment offices pursuant to a specific appropriation of the legislature; provided that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law that: (1) Specifies the purposes for which the moneys are appropriated and the amounts appropriated therefor; (2) Limits the period within which the moneys may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and (3) Limits the amount that may be obligated to an amount that does not exceed the amount by which the aggregate of the amounts credited to the account of this State pursuant to section 903 of the Social Security Act, as amended, exceeds the aggregate of the amounts obligated pursuant to this subsection and charged against the amounts credited to the account of this State. Moneys credited to the account of this State pursuant to section 903 of the Social Security Act, as amended, may not be withdrawn or used except for the payment of benefits and for the payment of expenses for the administration of this chapter pursuant to this subsection. The appropriation, obligation, and expenditure or other disposition of moneys appropriated under this subsection shall be accounted for in accordance with standards established by the United States Secretary of Labor. Moneys appropriated for the payment of expenses of administration pursuant to this subsection shall be requisitioned as needed for the payment of obligations incurred under the law appropriating the moneys and, upon requisition, shall be deposited in the employment security administration fund from which the payments shall be made. Moneys so deposited, until expended, shall remain a part of the unemployment compensation fund and, if not expended within one week after withdrawn from the unemployment trust fund, shall be returned at the earliest practical date to the Secretary of the Treasury of the United States for credit to this State's account in the unemployment trust fund. (c) Notwithstanding subsection (b), moneys credited to the State's account in federal fiscal years ending in 2000, 2001, and 2002 shall be used solely for the administration of the unemployment compensation program and are not subject to the specific appropriation requirements of subsection (b), except that moneys credited in calendar year 2002 with respect to P.L. 107-147 shall not be subject to the conditions of this subsection or the two‑year limitation requirement specified in subsection (b). (d) Notwithstanding subsection (b), moneys credited to the account of this State pursuant to the special transfer made in 2009 under section 903(g) of the Social Security Act, as amended, shall be used solely for the payment of expenses for the administration of this chapter. [L 1939, c 219, §9(c); am L 1941, c 304, §1, subs 30; RL 1945, §4265; RL 1955, §93-122; am L 1957, c 145, §1(b) and c 152, §1; am L Sp 1959 2d, c 1, §§14, 27; am L 1963, c 114, §1; am L 1966, c 5, §2; HRS §383-123; am L 1971, c 187, §12; am L 1973, c 4, §1; am L 1984, c 14, §1; am L 1987, c 119, §7; am L 2001, c 112, §1; am L 2005, c 249, §2; am L 2006, c 190, §§2, 3; am L 2011, c 120, §1; am L 2013, c 3, §4]

HRS §383-124 Relation to unemployment trust fund

383-124. Relation to unemployment trust fund Sections 383-121 to 383-123 to the extent that they relate to the unemployment trust fund, shall be operative only so long as the unemployment trust fund continues to exist, and so long as the Secretary of the Treasury of the United States continues to maintain for the State a separate account of all funds deposited therein by the State for benefit purposes, together with the State's proportionate share of the earnings of such unemployment trust fund, from which no other state or territory is permitted to make withdrawals. If and when the unemployment trust fund ceases to exist, or the separate account is no longer maintained, all moneys, properties, or securities therein, to the credit of the unemployment compensation fund of the State, are returnable to the director of finance of the State who shall hold, invest, transfer, sell, deposit, and release such moneys, properties, or securities in a manner approved by the department of labor and industrial relations in accordance with this chapter. The moneys shall be invested in the following readily marketable classes of securities: bonds or other interest-bearing obligations of the United States, or other securities which may be acquired under the sinking fund laws of the State; provided that the investment shall at all times be so made that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The director of finance shall dispose of securities or other properties belonging to the unemployment compensation fund only under the direction of the department. [L 1939, c 219, §9(d); RL 1945, §4266; RL 1955, §93-123; am L Sp 1959 2d, c 1, §27; HRS §383-124]

HRS §383-125 Financing employment security administration

383-125. Financing employment security administration All moneys received from the federal government or other sources that are required by federal law or regulations to be for the purposes of administering the employment security program shall be expended subject to the findings of the Secretary of Labor as to purpose and amount, and subject to all appropriation, budgeting, and accounting requirements of the State not inconsistent with federal laws and regulations governing such moneys. [L 1939, c 219, §12(a); am L 1941, c 304, §1, pt of subs 34; RL 1945, §4283; am L 1953, c 41, §1(2); RL 1955, §93-124; am L 1957, c 145, §1(c), c 152, §1, and c 205, §1(g); am L 1959, c 265, §13(b); HRS §383-125]

HRS §383-126 Reimbursement of fund

383-126. Reimbursement of fund If any moneys received after June 30, 1941, from the Secretary of Labor under title III of the Social Security Act, or any unencumbered balances in the employment security administration fund as of that date, or any moneys granted after that date to the State pursuant to the Wagner-Peyser Act, are found by the Secretary of Labor, because of any action or contingency, to have been lost or been expended for purposes other than, or in amounts in excess of, those found necessary by the Secretary of Labor for the proper administration of this chapter, it is the policy of the State that such moneys shall be replaced by moneys appropriated for such purpose from the general funds of the State to the employment security administration fund for expenditure as provided in section 383-125. Upon receipt of notice of such a finding by the Secretary of Labor, the department of labor and industrial relations shall promptly report the amount required for such replacement to the governor and the governor shall, at the earliest opportunity, submit to the legislature a request for the appropriation of the amount. This section shall not be construed to relieve the State of its obligation with respect to funds received prior to July 1, 1941, pursuant to title III of the Social Security Act. [L 1939, c 219, §12(b); am L 1941, c 304, §1, pt of subs 34; RL 1945, §4284; am L 1953, c 41, §1(2); RL 1955, §93-125; am L 1957, c 205, §1(h); am L Sp 1959 2d, c 1, §27; HRS §383-126]

HRS §383-126.5 Evaluation of fund balance adequacy

383-126.5. Evaluation of fund balance adequacy The director shall conduct an annual evaluation of the adequacy of the fund balance, taking into account conditions in the State and national economic trends, and submit a report of findings to the legislature no later than twenty days prior to the convening of each regular session. [L 1991, c 193, §1]

HRS §383-127 Special unemployment insurance administration fund

383-127. Special unemployment insurance administration fund (a) There is created in the state treasury a special fund to be known as the special unemployment insurance administration fund. All interest, fines, and penalties collected under this chapter on and after October 1, 1987, shall be paid into this fund and shall not be commingled with other state funds but maintained in a separate account on the books of the depository. Interest earned upon moneys in the administration fund shall be deposited and credited to the administration fund. All moneys payable to the administration fund shall be transferred immediately into the administration fund from the clearing account of the unemployment compensation fund. The director of finance shall be the treasurer and custodian of the administration fund and shall administer the fund in accordance with directions by the director of labor and industrial relations. The director of finance shall be liable on the director's official bond for the faithful performance of all duties in connection with the administration fund. All sums recovered on such surety bond for losses sustained by the administration fund shall be deposited into the fund. (b) Notwithstanding any other provisions of this section to the contrary, the moneys in the administration fund shall be used for the payment of the following expenses and obligations relating to the administration of the unemployment insurance program: (1) Refunds or adjustments of interest on delinquent contributions and penalties or fines erroneously collected under this chapter; (2) Expenses for which allocation of federal funds have been duly requested but not yet received, subject to the reimbursement of the expenditures against the funds received; (3) Expenditures deemed necessary by the director in the administration of this chapter for which no allocations of federal administration funds have been made; and (4) Interest due under the provisions of section 1202(b) of the Social Security Act, as amended, for advances made to the unemployment compensation fund. (c) No moneys in the administration fund shall be expended for any purpose for which federal funds would otherwise be available. (d) All expenditures from the administration fund, except for refunds of penalties and interest erroneously collected, shall be approved by the director. (e) All moneys deposited or paid into the administration fund shall be continuously available to the director for expenditures consistent with this section and shall not lapse at any time. The director may transfer moneys deposited in the administration fund to the unemployment compensation fund as the director deems necessary. (f) Twenty days before the convening of the legislature in regular session each year, the director shall submit a report to the legislature on the financial status of the special unemployment insurance administration fund. [L 1987, c 119, §1; am L 1988, c 77, §1]

HRS §383-128 Employment and training fund established

383-128. Employment and training fund established (a) Effective January 1, 1992, there is established in the state treasury, apart from all other funds in this State, a special fund to be known as the employment and training fund. All assessments collected pursuant to section 383-129 and all other moneys received by the fund from any other source shall be deposited into the employment and training fund. (b) The moneys in the employment and training fund may be used for funding: (1) The operation of the state employment service for which no federal funds have been allocated; (2) Business-specific training programs to create a more diversified job base and to carry out the purposes of the new industry training program pursuant to section 394-8 with emphasis on serving small businesses by serving the training needs for industries included in the State's economic development strategy as recommended by the department of business, economic development, and tourism and training needs identified by the county workforce investment boards, employer organizations, industry or trade associations, labor organizations and similar organizations; (3) Industry or employer-specific training programs where there are critical skill shortages in high growth occupational or industry areas with emphasis on serving small businesses by serving the training needs for industries included in the State's economic development strategy as recommended by the department of business, economic development, and tourism and training needs identified by the county workforce investment boards, employer organizations, industry or trade associations, labor organizations and similar organizations; (4) Training and retraining programs to assist workers who have become recently unemployed or are likely to be unemployed; (5) Programs to assist residents who do not otherwise qualify for federal or state job training programs to overcome employment barriers; (6) Training programs to provide job-specific skills for individuals in need of assistance to improve career employment prospects; and (7) For the period from July 1, 2013, to June 30, 2014, costs to administer, manage, report, and oversee title I programs funded under the federal Workforce Investment Act of 1998, P.L. 105-220, as amended. (c) The director shall require employers who use or who are assisted by any of these programs to contribute fifty per cent of the cost of the assistance in cash or in-kind contributions. (d) The department may contract for employment, education, and training services from public and private agencies and nonprofit corporations. Contracts, pursuant to subsection (b), shall be exempt from chapter 103F so funds for these services may be expended in a timely manner to effectuate the purposes of this section. All other disbursements shall be in accordance with chapters 103D and 103F. (e) The department shall ensure the proper administration of the employment and training fund program by: (1) Standardizing contractual language and requirements for all grantees and vendors; (2) Expediting the program's macro grant application process by either eliminating the county advisory committees' review or by formalizing, defining, and including specific time frames related to these committees; (3) Providing evidence that grant applications are treated in accordance with fund policies by documenting the reasons for acceptance and denial of each proposed grant; (4) Improving the program's monitoring of funds disbursed by, at a minimum: (A) Establishing and implementing an organized filing system; (B) Requiring documentation of all contact made with grant applicants and recipients; and (C) Ensuring that staff in all branch offices are familiar with the various reports and submittals required of the different fund recipients; (5) Developing and disseminating the state participant evaluation form to the program's vendors; (6) Developing and implementing strategies for evaluating the program's overall success that include but are limited to: (A) Assessing whether the program is improving the long-term employability of Hawaii's people; (B) Measuring program outcomes related to work unit and company performance; and (C) Collecting and comparing wage data from workers who have utilized the fund versus those who have not; (7) Increasing awareness of the fund and its programs by strengthening publicity; (8) Establishing consistent attendance-reporting requirements for both macro grant projects and micro vendors and comparing attendance rates for projects and vendors who charge additional fees to participants versus those who do not; and (9) Reporting as encumbrances only those obligations for which the fund has entered into bona fide contracts. (f) For purposes of grants awarded under subsection (d), any organization requesting a grant shall: (1) Be licensed and accredited, as applicable, under the laws of the State; (2) Have at least one year's experience with the project or in the program area for which the request or proposal is being made; except that the director may grant an exception where the project or program area deals with new industry training; and (3) Be, employ, or have under contract persons who are qualified to engage in the program or activity to be funded by the State. (g) Recipients of grants shall be subject to the following conditions: (1) Any organization requesting a grant shall submit its request together with all the information required by the director on an application form provided by the department; (2) The recipient of a grant shall not use public funds for purposes of entertainment or perquisites; (3) The recipient of a grant shall comply with applicable federal, state, and county laws; (4) The recipient of a grant shall comply with any other requirements the director may prescribe; (5) The recipient of a grant shall allow the director, the legislative bodies, and the legislative auditor full access to records, reports, files, and other related documents so that the program, management, and fiscal practices of the grant recipient may be monitored and evaluated to assure the proper and effective expenditure of public funds; (6) Every grant shall be monitored according to rules established by the director to ensure compliance with this section; and (7) Any recipient of a grant under this section who withholds or omits any material fact or deliberately misrepresents facts to the director or who violates the terms of the recipient's contract shall be in violation of this section and, in addition to any other penalties provided by law, shall be prohibited from applying for a grant under this section for a period of five years from the date of termination. (h) The director shall submit a report to the legislature on the status of the employment and training fund, including expenditures and program results, at least twenty days prior to the convening of each regular legislative session. (i) The director of finance shall act as the treasurer and custodian of the employment and training fund, invest those moneys in accordance with applicable laws and rules, and disburse the moneys in the employment and training fund in accordance with directions by the director of labor and industrial relations; provided that if administrative encumbrances are executed, then any portions thereof that are unexpended at the close of each fiscal year shall be lapsed into the employment and training fund. All interest earned from investment of moneys in the employment and training fund shall be deposited in the fund. The director of finance shall be liable on the director's official bond for the faithful performance of all duties in connection with the employment and training fund. All sums recovered on the surety bond for losses sustained by the employment and training fund shall be deposited in the fund. (j) Administrative costs for the collection of employment and training fund contributions and for costs related to the establishment and maintenance of the employment and training fund shall be borne by the fund beginning with fiscal year 1992-1993 and thereafter. (k) The director may establish positions and hire necessary personnel to establish and administer the employment and training fund in accordance with chapter 76. [L 1991, c 68, pt of §2; am L 1996, c 223, §3; am L 1997, c 190, §6; am L 1999, c 230, §1; am L 2000, c 253, §150; am L 2002, c 248, §1; am L 2004, c 216, §41; am L 2006, c 300, §13; am L 2011, c 2, §§2, 5; am L 2012, c 6, §§3, 7; am L 2013, c 25, §2 and c 101, §2; am L 2014, c 96, §21]

HRS §383-129 Employment and training assessment

383-129. Employment and training assessment (a) In addition to contributions determined by section 383-68, every employer, except an employer who has selected an alternative method of financing liability for unemployment compensation benefits pursuant to section 383-62, or an employer who has been assigned a minimum rate of zero per cent or the maximum rate of the applicable schedule in accordance with section 383-68, shall be subject to an employment and training fund assessment at a rate of .01 per cent of taxable wages as specified in section 383-61. (b) Collections from the employment and training assessment shall be made in the same manner and at the same time as any contributions required under section 383-61, and shall not be deducted, in whole or in part, from the wages of individuals in an employer's employ. (c) Any assessments collected pursuant to this section shall remain separate and shall not be included in any manner in computing unemployment contribution rates assigned to employers in accordance with sections 383-63 to 383-68. (d) The director may impose penalty and interest on delinquent employment and training assessments in the same manner as provided for contributions to the unemployment compensation fund in section 383-73. For purposes of computation of penalty and interest under this subsection, employment and training assessments shall be considered part of the employer's contributions to the unemployment compensation fund. (e) Collection of money from an employer delinquent in paying employment and training assessments, unemployment insurance technology assessments, or contributions to the unemployment compensation fund pursuant to this chapter shall first be applied to interest and penalty, then applied to delinquent unemployment compensation contributions, then to delinquent unemployment insurance technology assessments, and finally to delinquent employment and training assessments. [L 1991, c 68, pt of §2; am L 1996, c 223, §4; am L 1997, c 194, §2; am L 2000, c 197, §1; am L 2002, c 248, §2; am L 2011, c 2, §§3, 5; am L 2012, c 6, §§4, 7; am L 2013, c 102, §1; am L 2023, c 208, §2]

HRS §383-130 Unemployment insurance technology special fund

383-130. Unemployment insurance technology special fund (a) There is established in the state treasury the unemployment insurance technology special fund to be administered by the department. All assessments collected pursuant to section 383-131 and all moneys received by the fund from any other source shall be deposited in the unemployment insurance technology special fund. (b) Moneys in the unemployment insurance technology special fund shall be used by the department for the operating expenses to operate and maintain the department's information technology infrastructure used for the payment of benefits and contributions as provided for in this chapter. Administrative costs for the collection of the unemployment insurance technology assessments and for costs related to the establishment and maintenance of the unemployment insurance technology special fund shall be borne by the fund. (c) The director shall submit a report to the legislature on the status of the unemployment insurance technology special fund, including expenditures and program results, not less than twenty days prior to the convening of each regular session; provided that the director may include the report in the report required by section 383-126.5. [L 2023, c 208, pt of §1]

HRS §383-131 Unemployment insurance technology assessment

383-131. Unemployment insurance technology assessment (a) In addition to contributions determined by section 383-68, every employer, except an employer who has elected an alternative method of financing liability for unemployment compensation benefits pursuant to section 383-62, shall be subject to an unemployment insurance technology assessment at a rate of 0.01 per cent of taxable wages as specified in section 383-61. (b) Collections from the unemployment insurance technology assessment shall be made in the same manner and at the same time as any contributions required under section 383-61, and shall not be deducted, in whole or in part, from the wages of individuals in an employer's employ. (c) Any assessments collected pursuant to this section shall remain separate and shall not be included in any manner in computing unemployment contribution rates assigned to employers in accordance with sections 383-63 to 383-69. (d) The director may impose a penalty and interest on delinquent unemployment insurance technology assessments in the same manner as provided for contributions to the unemployment compensation fund in section 383-73. For purposes of computation of penalty and interest under this subsection, unemployment insurance technology assessments shall be considered part of the employer's contributions to the unemployment compensation fund. (e) Collection of money from an employer delinquent in paying unemployment insurance technology assessments, employment and training fund assessments, or contributions to the unemployment compensation fund pursuant to this chapter shall first be applied to interest and penalty, then applied to delinquent unemployment compensation contributions, then to delinquent unemployment insurance technology assessments, and finally to delinquent employment and training assessments. [L 2023, c 208, pt of §1]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0383/HRS_0383-.htmFetched: 11/10/2026