STAND. COM. REP. NO. 352

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 173
                                        S.D. 1




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 Education and
Technology, to which was referred S.B. No. 173 entitled: 

     "A BILL FOR AN ACT RELATING TO SCHOOL-TO-WORK
     OPPORTUNITIES,"

beg leave to report as follows:

     The purpose of this measure is to provide a tax credit to
employers participating in a School-to-Work (STW) program.  

     This measure also appropriates funds to the Department of
Education (DOE) for the STW opportunities pilot project,
including funds to extend the contracts for regional STW
coordinators from ten months to twelve months.

     Testimony in support of this measure was received from the
DOE, the Department of Labor and Industrial Relations, the
School-to-Work Executive Council, the Hawaii State Teachers
Association, the Chamber of Commerce of Hawaii, Hawaiian Electric
Company, and the Estate of James Campbell.  The Department of
Taxation testified in opposition to the measure and the Tax
Foundation of Hawaii made comments on the measure.

     Your Committees find that increasing the eight regional
coordinator positions to twelve-month contracts will lead to
better coordination of STW across the State.  Working year-round
also allows the coordinators to plan and implement summer
projects with teachers and students, as well as plan for the
following year.  

 
a                                                     SB173 SD1
                                   STAND. COM. REP. NO. 352
                                   Page 2



     However, your Committees find that it is imprudent to
adversely impact the tax system with another tax credit,
particularly since it is unclear that this credit will aid the
STW program.  Accordingly, your Committees have amended this
measure to remove section 1 which provides for the tax credit for
businesses.

     As affirmed by the records of votes of the members of your
Committees on Labor and Environment and Education and Technology
that are attached to this report, your Committees are in accord
with the intent and purpose of S.B. No. 173, as amended herein,
and recommend that it pass Second Reading in the form attached
hereto as S.B. No. 173, S.D. 1, 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 Education and
                                   Technology,



____________________________       ______________________________
DAVID Y. IGE, Chair                BOB NAKATA, Chair

 
a                                                     SB173 SD1