SB813 CD1 CCR127

CONFERENCE COMMITTEE REP. NO. 127

Honolulu, Hawaii

, 2005

RE: S.B. No. 813

S.D. 2

H.D. 2

C.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 813, S.D. 2, H.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to amend the law relating to the use of unemployment trust fund moneys to conform to P.L. 107-147, the Temporary Extended Unemployment Compensation Act of 2002, because the requirements for Reed Act funds distributed in 2002 differ from those of prior special Reed Act distributions.

Additionally, this measure appropriates $10,000,000 from the unemployment insurance trust fund in each fiscal year of the 2005-2007 biennium to improve the services of the unemployment insurance and workforce development divisions of the Department of Labor and Industrial Relations; provided that:

(1) $6,000,000 be allocated to the four county workforce investment boards for, among other things, employer outreach services, labor force pool expansion, and capacity building; and

(2) $1,000,000 be allocated to Leeward Community College for education and job training for immigrants from the Freely Associated States pursuant to the workforce development program established under Act 225, Session Laws of Hawaii 2004.

In 2002, the Department of Labor and Industrial Relations received approximately $31,000,000 in federal Reed Act funds. These funds have been placed within the unemployment trust fund, which can be utilized for the payment of benefits and expenses incurred for the administration of the unemployment compensation laws, as well as for public employment offices. Your Committee further finds that Reed Act distributions made prior to P.L. 107-147 were restricted to unemployment insurance administration purposes only. Additionally, under section 303(a)(8) of the Social Security Act, state laws must include provisions for the expenditure of all moneys. Therefore, the current law must be amended to allow for the utilization of the 2002 Reed Act funds.

Furthermore, the utilization of these funds is necessary not only to improve the State's automated unemployment insurance and workforce development division services, but also to address the specific needs of the local workforce investment boards of the four counties. Moreover, immigrants from the Freely Associated States and residents of Hamakua, Waimea, Kohala, and Waikoloa should also benefit from these funds through the provision of services under the Wagner-Peyser Act.

Upon further consideration, your Committee has amended this measure by:

(1) Clarifying that the Reed Act funds are appropriated to provide seed money to the Department of Labor and Industrial Relations to be used in consultation with the local workforce investment boards to plan, develop, and implement a computer system to benefit workforce development activities and programs operated by the counties;

(2) Clarifying that the Oahu workforce investment board shall partner with Leeward Community College to provide federal Wagner-Peyser services for immigrants from the Freely Associated States, pursuant to the workforce development program established under Act 225, Session Laws of Hawaii 2004;

(3) Providing that of the $10,000,000 appropriation in each fiscal year of the 2005-2007 biennium, the sum of:

(A) $4,795,000 shall be allocated to the Honolulu workforce investment board; provided that it will partner with Leeward Community College to provide federal Wagner-Peyser services to immigrants from the Freely Associated States;

(B) $1,252,775 shall be allocated to the Maui workforce investment board;

(D) $1,650,000 shall be allocated to the Hawaii workforce investment board; provided that it shall partner with the Department of Labor and Industrial Relations to provide Wagner-Peyser services for the eradication of coqui frogs and other invasive species and to serve the residents of Hamakua, Waimea, Kohala, and Waikoloa; and

(E) $1,302,225 shall be allocated to the Department of Labor and Industrial Relations to be used in consultation with the local workforce investment boards to plan, develop, and implement a computer system to benefit workforce development activities and programs operated by the counties;

(4) Clarifying that the funds appropriated to the county workforce investment boards are to be used to improve employer outreach and services, labor force pool expansion, capacity building, and to fund some shared costs for the operations of the one-stop career centers within each county;

(5) Requiring that no funds appropriated under the Act shall be released by the Governor to the Department of Labor and Industrial Relations until all funds appropriated for the counties have been so released;

(6) Providing that the appropriation of funds are not subject to the allotment system powers under part II of chapter 37, Hawaii Revised Statutes;

(7) Requiring the Department of Labor and Industrial Relations to report to the Legislature on the status of the timely release of funds appropriated under the Act to the counties; and

(8) Changing the effective date of the act from July 1, 2010 to be effective upon its approval; provided that the appropriation in section 3 shall take effect on July 1, 2005.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 813, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 813, S.D. 2, H.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ KIRK CALDWELL, Co-Chair		____________________________ BRIAN KANNO, Chair
____________________________ DWIGHT TAKAMINE, Co-Chair		____________________________ BRIAN T. TANIGUCHI, Co-Chair