Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor, to which was referred H.B. No. 1130, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to clarify the provisions relating to the Employment and Training Fund (Fund) by:

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations, the United Public Workers, AFSCME, Local 646, AFL-CIO, Building Industry Association of Hawaii, the Oceanic Institute, Albu and Albu, Attorneys at Law, Oceanit, and a private citizen. The Department of Labor and Industrial Relations supported the intent of this bill. An individual offered comments. The Hawaii Business League, the National Federation of Independent Business, and six businesses testified in opposition to the measure.

Your Committee finds that the Employment and Training Fund provides much needed funding for the Department of Labor and Industrial Relations' Workforce Development Division to assist numerous businesses and persons across the State with training and workforce development opportunities. Providing access to these opportunities benefits the State as a whole in its efforts to keep pace with the rapidly advancing global economy. Businesses can utilize the services of the Workforce Development Division to retrain or upgrade their employees' skills, thus making them more productive employees. Your Committee believes that fixing the assessment rate and making it permanent is a cost-effective means of benefiting not only employers and employees, but the entire State as well.

However, your Committee is also concerned over the cost that employers must pay in order to participate in the programs provided under the Employment and Training Fund. The measure as received by your Committee would require participating employers to pay at least fifty percent of the costs of educating their workforce. Your Committee believes that this cost is too high for many businesses and will serve as a deterrent to full participation in the programs that the Employment and Training Fund could offer.

Consequently, your Committee has amended the measure by:

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1130, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1130, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.