STAND. COM. REP. NO. 1378_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1147
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1147, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAII WORKFORCE
     DEVELOPMENT COUNCIL,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Bring Hawaii into compliance with the requirements of
          the Federal Workforce Investment Act of 1998 (Act), by
          requiring the Hawaii Workforce Development Council
          (Council) to assist the Governor in, among other
          things:

          (A)  Developing the State's plan for the use of federal
               workforce investment funds;

          (B)  Developing and improving statewide and local
               workforce investment systems;

          (C)  Commenting at least annually on the measures taken
               pursuant to the Carl D. Perkins Vocational and
               Technical Education Act;

          (D)  Developing allocation formulas for the
               distribution of funds to local areas;


 
 
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          (E)  Developing and improving comprehensive state
               performance measures to assess the effectiveness
               of the workforce investment activities; and

          (F)  Preparing the annual report to the United States
               Secretary of Labor.

          and

     (2)  Provide for the following changes to the composition of
          the Council:

          (A)  Increasing the size of the council from 17 to a
               maximum of 29 members;

          (B)  Increasing the number of private sector
               representatives on the council from 10 to 15;

          (C)  Removing one representative of a community-based
               organization while retaining the representative
               from a community-based native Hawaiian
               organization;

          (D)  Providing that two representatives shall be from
               labor;

          (E)  Adding four members from the legislature, two from
               each house; and

          (F)  Adding two mayors or their representatives.

     The Department of Business, Economic Development, and
Tourism, the Department of Human Services, the Department of
Labor and Industrial Relations, and the Workforce Development
Council testified in support of this measure.

     Your Committee notes that this bill is similar in general
purpose and intent to H.B. 1159, H.D. 1, which was passed out of
this Committee after a public hearing.

     Your Committee has amended this bill deleting its substance
and inserting language similar to H.B. No. 1159, H.D. 1.  As
amended, this measure differs from the measure as heard by
providing:

          (A)  That the members of the Council who are the four
               members of the legislature shall be appointed by
               the presiding officer of each house instead of by
               the governor; and

 
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          (B)  An effective date of September 15, 2001.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1147, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1147, S.D. 2, H.D. 1, and be referred to the Committee on
Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair