Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1889, S.D. 1, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to ensure that all future apprenticeship agreements approved by the State will safeguard the welfare of apprentices by:

The Hawaii Building and Construction Trades Council, AFL-CIO and International Union of Painters and Allied Trades, District Council 50, AFL-CIO testified in support of this bill. The International Brotherhood of Painters and Allied Trades, Drywall Tapers, Finishers and Allied Workers Local Union 1944, AFL-CIO and Glaziers Local Union 1889 supported the intent of this measure. The General Contractors Association of Hawaii and Associated Builders and Contractors, Inc. – Hawaii Chapter opposed this bill. DLIR and the Department of the Attorney General offered comments.

This bill amends the existing statute to reflect federal and state rules and the practices and procedures already in place within DLIR. Furthermore, this measure procedurally shifts final decision-making on apprenticeship matters to the body with expertise.

The support of the building trades testifying on this bill and the files of DLIR affirm that the language proposed in this measure does not reflect a change in the operations of the apprenticeship programs in Hawaii, but rather reflects the law and current practice. For that reason, your Committee has deleted the provisions of this bill requiring approval from the OATELS.

Section 1 of this bill adds the following additional standards that a program applicant must satisfy to submit a valid apprenticeship program:

(1) Qualified training personnel;

(2) Adequate supervision on the job; and

The first two standards are already mandated by federal law. (See 29 C.F.R. §29.5(b)(1), (7), and (14))

Section 1 of this bill also requires that where an application is received in a trade where an apprenticeship agreement already exists, the new applicant must show a continuing need exists in the trade or group of trades, and compliance with the "equal to or better than" requirement. Your Committee heard testimony from the building trades and reviewed correspondence dated March 30, 1999, from Elaine Young to Lorraine Akiba, then the director of DLIR, that showed that DLIR has for years by custom and practice required a new and competing program to establish that it is offering at least a program which is "equal to or better than" the existing program to be registered in a parallel trade or craft.

Section 2 of this bill expands the existing role of the apprenticeship council from a purely advisory body under section 372-4, Hawaii Revised Statutes (HRS), to one that is responsible for promoting and approving apprenticeship programs consistent with the standards for agreements. Under existing law, the director of DLIR already relies on the views and opinions of the apprenticeship council, which has the requisite expertise and experience in the field and represents a cross-section of the community that is most directly involved in apprenticeship and education. We believe the apprenticeship council is better qualified to uphold the standards established by chapter 372, HRS. Empowering the apprenticeship council will not alter the standards each apprenticeship program must satisfy to gain approval. The federal law already recognizes that the apprenticeship council can have the authority to register and/or approve the local apprenticeship programs and agreements. (See 29 C.F.R. §29.2(o))

The federal regulations do not require OATELS review and approval before the State can implement clarification of its state apprenticeship statute. The submittal of any changes or modifications is limited to maintaining recognition for federal purposes. Since the changes in this bill are consistent with the federal regulations, your Committee sees no reason to delay the implementation of this measure. Bureaucratic review by the OATELS could delay changes your Committee believes will provide immediate safeguards for the welfare of apprentices.

Accordingly, your Committee has amended this measure by:

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. 1889, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1889, S.D. 1, H.D. 2.