STAND. COM. REP. NO. 2783

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2420
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2420, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TECHNOLOGY,"

begs leave to report as follows:

     The purpose of this measure is to add a new chapter to
Hawaii Revised Statutes to establish a new economy technology
scholarship act.

     Testimony in support of the measure was received from the
Governor's Special Advisor on Technology Development, University
of Hawai'i, Department of Accounting and General Services, High
Technology Development Corporation, Workforce Development
Council, Hawai'i Technology Trade Association, and Hawaii
Educational Networking Consortium.

     Your Committee finds that the urgent demand for computer
literate and highly trained technology workers in all businesses
in this State is not being filled by the various short term
courses and degree programs that are currently available.

     Your Committee agrees that the new economy technology
scholar pilot program should be established to (1) create a
sustained pool of highly trained technology workers in the
shortest time possible and (2) encourage Hawaii students to
pursue higher education and training in science and technology
fields that are essential to the economic development of this
State.

 
a                                                     SB2420 SD2
                                   STAND. COM. REP. NO. 2783
                                   Page 2



     To expedite development of a technologically-literate
workforce, the Department of Business, Economic Development, and
Tourism should solicit information from the High Technology
Development Corporation and other agencies to determine where
there are shortages of technology workers, and how best to
prepare Hawaii residents for the new economy.

     Your Committee amended the measure as follows:

     (1)  Amending the definition of "approved educational
          institution" to include public or private post-
          secondary educational institutions and vendor
          educational programs provided by vendor certified
          training organizations.  By expanding this definition,
          your Committee intends to meet the demand for
          technology workers by enabling students to complete
          their training or programs in the shortest period
          possible by allowing them to access all available
          programs;

     (2)  Adding a definition for "vendor educational programs";

     (3)  Making the new economy technology scholarship program a
          five year pilot program within the Department of
          Business, Economic Development, and Tourism, which is
          the lead agency for expanding Hawaii's e-business niche
          in the global economy;

     (4)  Allowing grants awarded under the program to be limited
          to funds otherwise matched by external entities;

     (5)  Allowing the Department of Business, Economic
          Development, and Tourism to cooperate with private or
          foundation funding sources, in order to qualify the
          State to receive funds made available under the Higher
          Education Act of 1965;

     (6)  Deleting references to the post-secondary education
          commission;

     (7)  Adding a repeal date of June 30, 2005; and

     (8)  Making technical, nonsubstantive amendments for
          consistency.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2420, S.D. 1, as amended herein, and recommends that it

 
a                                                     SB2420 SD2
                                   STAND. COM. REP. NO. 2783
                                   Page 3


pass Third Reading in the form attached hereto as S.B. No. 2420,
S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB2420 SD2