HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 383-123, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "383-123  Withdrawals; administrative use.(a)
 4 Withdrawals.  Moneys requisitioned from the State's account in
 5 the unemployment trust fund shall be used exclusively for the
 6 payment of benefits and for refunds of contributions pursuant to
 7 section 383-76 and section 383-7(6),  except that moneys credited
 8 to this State's account pursuant to section 903 of the Social
 9 Security Act, as amended, shall be used exclusively as provided
10 in subsection (b) of this section.  The director of finance shall
11 from time to time, with the approval of the department of labor
12 and industrial relations in accordance with rules prescribed by
13 the comptroller of the State, requisition from the unemployment
14 trust fund such amounts, not exceeding the amount standing to
15 this State's account therein, as it deems necessary for the
16 payment of such benefits and refunds of contributions for a
17 reasonable future period.  Upon receipt thereof the moneys shall
18 be deposited in the benefit account.  Expenditures of such moneys
19 in the benefit account and refunds from the clearing account
20 shall not be subject to any provisions of law requiring specific

a                                                     LBR-02(00)
Page 2                                                     2553
                                     H.B. NO.           

 1 appropriations or other formal release by state officers of
 2 moneys in their custody.  All benefits and refunds of
 3 contributions shall be paid from the fund upon warrants drawn
 4 upon the director of finance by the comptroller of the State
 5 supported by vouchers approved by the department.  Any balance of
 6 moneys requisitioned from the unemployment trust fund which
 7 remains unclaimed or unpaid in the benefit account after the
 8 expiration of the period for which the sums were requisitioned
 9 shall either be deducted from estimates for, and may be utilized
10 for the payment of, benefits and refunds during succeeding
11 periods, or, in the discretion of the department, shall be
12 redeposited with the Secretary of the Treasury of the United
13 States, to the credit of this State's account in the unemployment
14 trust fund, as provided in section 383-122.
15      (b)  Administrative use.  Moneys credited to the account of
16 this State in the unemployment trust fund by the Secretary of the
17 Treasury of the United States pursuant to section 903 of the
18 Social Security Act, as amended, may be requisitioned and used
19 for the payment of benefits and for the payment of expenses
20 incurred for the administration of this [chapter pursuant to a
21 specific appropriation by the legislature;] State's unemployment

a                                                     LBR-02(00)
Page 3                                                     2553
                                     H.B. NO.           

 1 compensation law and public employment offices pursuant to a
 2 specific appropriation of the legislature; provided that the
 3 expenses are incurred and the money is requisitioned after the
 4 enactment of an appropriation law which: (1) specifies the
 5 purposes for which the moneys are appropriated and the amounts
 6 appropriated therefor, (2) limits the period within which the
 7 moneys may be obligated to a period ending not more than two
 8 years after the date of the enactment of the appropriation law,
 9 and (3) limits the amount which may be obligated during a twelve-
10 month period beginning on July 1 and ending on the next June 30
11 to an amount which does not exceed the amount by which (A) the
12 aggregate of the amounts credited to the account of this State
13 pursuant to section 903 of the Social Security Act, as amended,
14 during the same twelve-month period and the thirty-four preceding
15 twelve-month periods exceeds (B) the aggregate of the amounts
16 obligated pursuant to this subsection and charged against the
17 amounts credited to the account of this State during such thirty-
18 five twelve-month periods.  For the purposes of this subsection,
19 amounts which are obligated for administration or paid out for
20 benefits shall be charged against equivalent amounts which were
21 first credited and which are not already so charged; except that
22 no amount obligated for administration during a twelve-month

a                                                     LBR-02(00)
Page 4                                                     2553
                                     H.B. NO.           

 1 period specified herein may be charged against any amount
 2 credited during such twelve-month period earlier than the thirty-
 3 fourth preceding such period.
 4      Moneys credited to the account of this State pursuant to
 5 section 903 of the Social Security Act, as amended, may not be
 6 withdrawn or used except for the payment of benefits and for the
 7 payment of expenses for the administration of this chapter
 8 pursuant to this subsection.
 9      The appropriation, obligation, and expenditure or other
10 disposition of money appropriated under this subsection shall be
11 accounted for in accordance with standards established by the
12 United States Secretary of Labor.  Moneys appropriated for the
13 payment of expenses of administration pursuant to this subsection
14 shall be requisitioned as needed for the payment of obligations
15 incurred under the law appropriating the moneys and, upon
16 requisition, shall be deposited in the employment security
17 administration fund from which such payments shall be made.
18 Moneys so deposited shall, until expended, remain a part of the
19 unemployment compensation fund and, if it will not be expended
20 within one week after it is withdrawn from the unemployment trust
21 fund, shall be returned at the earliest practical date to the
22 Secretary of the Treasury of the United States for credit to this

a                                                     LBR-02(00)
Page 5                                                     2553
                                     H.B. NO.           

 1 State's account in the unemployment trust fund.
 2      (c)  Notwithstanding subsection (b), moneys credited to the
 3 State's account in federal fiscal years 2000, 2001, and 2002
 4 shall be used solely for the administration of the unemployment
 5 compensation program and are not subject to the specific
 6 appropriation requirements of subsection (b)."
 7      SECTION 2.  Statutory material to be repealed is bracketed.
 8 New statutory material is underscored.
 9      SECTION 3.  This Act shall take effect upon its approval.
11                           INTRODUCED BY:  _______________________

a                                                     LBR-02(00)