STAND. COM. REP. NO. 471-00
                                 Page 1

 
                                 STAND. COM. REP. NO. 471-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2564
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Economic
Development and Business Concerns, to which was referred H.B. No.
2564 entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYMENT SECURITY,"

beg leave to report as follows:

     The purpose of this bill is to extend the sunset date of the
Employment and Training Fund (Fund) program to December 15, 2005.

     The Hawaii Association for the Education of Young Children,
Honsador Lumber Corporation, Hawaii Fashion Industry Association,
the Kanoelehua Industrial Area Association Employee Training
Center, Shriners Hospital for Children, Hawaii Agriculture
Research Center, the Department of Labor and Industrial
Relations, and a concerned individual testified in support of
this measure.  The National Federation of Independent Business
and the Hawaii Business League testified in opposition.

     Your Committees find that the original intent of the Fund
was to help train displaced sugar workers for new careers.  Since
this group of people it was intended to help was finite, the Fund
was limited to a period of five years.

     Your Committees further find that  contributors to the Fund
are not the same as the benefactors of the Fund.  This has
resulted in a situation where one competitor may end up funding
training for another competitor.


 
                                 STAND. COM. REP. NO. 471-00
                                 Page 2

 
     Your Committees have amended this bill by:

     (1)  Changing the ending date for the employment and
          training fund program to December 31, 2003;

     (2)  Limiting the .05 percent charged for the Fund
          assessment to taxable year 2000;

     (3)  Setting the rate at .034 per cent of taxable wages for
          taxable year 2001;

     (4)  Setting the rate at .016 per cent of taxable wages for
          taxable year 2002; and

     (5)  Cancelling any Fund assessments for taxable year 2003
          and all subsequent years.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Economic
Development and Business Concerns that are attached to this
report, your Committees are in accord with the intent and purpose
of H.B. No. 2564, as amended herein, and recommend that it pass
Second Reading in the form attached hereto as H.B. No. 2564, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Economic
                                   Development and Business
                                   Concerns, 



_______________________________    _______________________________
ROBERT N. HERKES, Chair            TERRY NUI YOSHINAGA, Chair