STAND. COM. REP. NO. 1380_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1153
                                     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. 1153 entitled: 

     "A BILL FOR AN ACT RELATING TO THE EMPLOYMENT AND TRAINING
     FUND PROGRAM,"

begs leave to report as follows:

     The purpose of this bill is to exempt grants and subsidies
given through the Employment and Training Fund (ETF) from
chapters 103F and 42F, Hawaii Revised Statutes.

     The State Procurement Office testified in support of this
bill.  The Department of Labor and Industrial Relations testified
in support of this bill with suggested technical amendments.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Deleting its substance and inserting the substance of a
          similar bill, H.B. 1166, H.D. 1;

     (2)  Changing "grants and subsidies" to "contracts" to
          conform with current statutes which enacted chapter
          103F, Hawaii Revised Statutes (HRS), and repealed
          chapter 42D, HRS; and

     (3)  Exempting the ETF from chapter 103D, HRS, rather than
          chapter 42D, HRS, as a "contract" is subject to chapter

 
 
 
                                 STAND. COM. REP. NO. 1380_______
                                 Page 2

 
          103D, HRS, the overall procurement law governing all
          state contracts.

     Your Committee notes that H.B. 1166, H.D.1, passed out of
the House of Representatives after public hearings before this
Committee and the Committee on Finance.

     This measure will enable DLIR to solicit proposals in a
timely and continuous manner without impediment from procurement
process requirements.

     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. 1153, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1153, 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