STAND. COM. REP. NO. 1387-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2905
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2905, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to extend the period during
which employers must contribute to the Employment and Training
Fund (Fund) until December 31, 2003.

     The Hawaii Business League testified in support of this
bill.

     Oceanic Institute, Simple Office Solutions, National
Tropical Botanical Garden, Copiers Hawaii, Inc., People Attentive
tO Children, Chun Kim Chow, Ltd., Hawaii Fashion Industry
Association, John Mullen & Co., Inc., First American Long and
Melone Title Company, Ltd., Hawaii County Private Industry
Council/Workforce Investment Board, Edward K. Noda and
Associates, Inc., and several individuals offered comments on
this bill.

     The Department of Labor and Industrial Relations and the
National Federation of Independent Business testified in
opposition to this bill.


 
 
 
 
 
                                 STAND. COM. REP. NO. 1387-00
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Changing the assessment percentages for 2001 and 2002
          to .03 and .01 percent of taxable wages for 2001 and
          2002, respectively; and 

     (2)  Requiring that the audit of the Employment and Training
          Fund assess the feasibility and merit of levying a
          nominal training charge.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2905, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2905, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair