STAND. COM. REP. NO. 356

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1153
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Labor and Environment and Government
Operations and Housing, to which was referred S.B. No. 1153
entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to exempt grants and
subsidies from the employment and training fund (ETF) for
employment, education, and training services from the
requirements of chapter 103F, Hawaii Revised Statutes (HRS).

     Your Committees received testimony in support of this
measure from the DLIR and the State Procurement Office (SPO).

     Current law exempts the employment and training fund from
chapter 42F, HRS, relating to grants and subsidies.  The
exemption from chapter 103F, HRS, is needed because of DLIR's
need to solicit proposals on a continuous basis without the
potential delays associated with the procurement process.
Moreover, chapter 103F, HRS, deals with the purchase of health
and human services and the ETF projects extend beyond those
areas.

     As affirmed by the records of votes of the members of your
Committees on Labor and Environment and Government Operations and
Housing that are attached to this report, your Committees are in
accord with the intent and purpose of S.B. No. 1153 and recommend

 
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                                   STAND. COM. REP. NO. 356
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that it pass Second Reading and be referred to the Committee on
Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and
                                   Environment and Government
                                   Operations and Housing,



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ROD TAM, Chair                     BOB NAKATA, Chair

 
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