Transfers the Manpower Development and Training Program from the Department of Labor and Industrial Relations (DLIR) to the University of Hawaii Community College System. Appropriates Reed Act Funds to be expended by the community college system for administrative costs of county employment service programs. Appropriates funds for four county manpower development program coordinators.

A BILL FOR AN ACT

PART I

SECTION 1. This Act shall be known and may be cited as the Workforce Development Act.

PART II

SECTION 2. The purpose of this part is to remove oversight of the manpower and development training program from the state department of labor and industrial relations and reestablish the program within the community college system of the University of Hawaii.

SECTION 3. Chapter 305, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . manpower development and training

§305-A Purpose. The purpose of this part is to establish manpower development and training programs in the State of Hawaii and to determine the extent to which the employment needs of individuals can be met by either job training or a public service job or a combination of both.

§305-B Establishment of programs. (a) There is established within the community college system, manpower development and training programs for the various industries in the state. The training programs shall assist those unemployed and underemployed persons who cannot reasonably be expected to obtain suitable full-time employment without the benefit of training. Instruction and training shall be provided by the department of education, the community college system, both campuses of the University of Hawaii, or other suitable agencies. Where a need is indicated to overcome barriers to possible training, the community college system, either on its own or in cooperation with the various departments and agencies of the state and county governments and private industry, may arrange for transportation, child care, health care, and other aids to employment. The community college system may also formulate and implement a program providing useful public service employment to unemployed persons other than public assistance recipients.

(b) The department of human services may formulate and implement a program providing useful public service employment to public assistance recipients. Refusal to accept suitable work as determined by the department of human services without justifiable reasons shall render an unemployed or underemployed recipient ineligible for public assistance.

§305-C Contracts; public and private sectors. (a) The community college system may enter into contracts for manpower development and training with the department of education, both campuses of the University of Hawaii, or other public agencies.

(b) The community college system may enter into contracts with private industry for manpower training and job placement of unemployed persons within such private organizations. The private employer shall be responsible for compensating such persons the minimum wage and the State may assume the differences in wages, if any, by determining the prevailing wage of persons employed in similar positions in private industry during the contract period for such manpower training.

(c) The community college system shall formulate standards and adopt rules to carry out the purposes of this section.

§305-D Compensation. The State shall pay to each person who is enrolled in a manpower development and training program a weekly compensation equal to the average weekly benefit amount provided under chapter 383. The State may pay to each person who is employed on a public service employment project under section 305-B the prevailing wage of persons employed in similar public employment.

§305-E Administration. (a) The community college system may plan and administer manpower development and training programs under this part with the advice of the workforce development council.

(b) The community college system shall employ persons in each of the four counties for purposes of coordinating the manpower development and training program for the community college system within the particular county.

(c) The community college system shall process the payment of weekly compensation as provided under this part.

§305-F Funds. The State shall provide funds to cover training costs such as instructors' salaries, equipment, and supplies. The State shall also provide funds to cover costs of each coordinator position established under section 305-E.

§305-G Type of training. Training is to be undertaken for those occupations for which there is reasonable expectation of employment upon completion of training with priority given to growth industries, including but not limited to electronics, software, instrumentation, biotechnology, renewable energy, telecommunications, computers, mariculture, aquaculture, tropical agriculture, and Hawaiian natural products.

§305-H New industry training program. (a) There is established the new industry training program, which shall be administered by the community college system. Program moneys may be used:

(b) The community college system shall use the resources of the University of Hawaii, the high technology development corporation, and other educational and training resources in the public and private sectors throughout the state as may be appropriate to provide pre-employment, employment, or on-the-job training for local residents hired by businesses that are relocating to Hawaii or expanding their local operations. To provide the training, the community college system may contract with public agencies, including the various University of Hawaii campuses, private educational institutions, nonprofit corporations, or private entities.

§305-I Eligibility requirements. (a) To be eligible for state-assisted training or retraining under section 305-H, businesses shall:

(b) The community college system may adopt rules to promote economic expansion within the state by further identifying the businesses and industries that qualify for services and the job positions and persons that are eligible for training under this chapter and may consult with the department of business, economic development, and tourism prior to issuing these rules."

SECTION 4. Chapter 305, Hawaii Revised Statutes, is amended by designating sections 305-1 to 305-5 as part I and inserting a title before section 305-1 to read as follows:

"PART I. GENERAL AND ADMINISTRATIVE PROVISIONS"

SECTION 5. Chapter 394, Hawaii Revised Statutes, is repealed.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2006-2007 to hire coordinators for the community college system manpower development and training program.

The sum appropriated shall be expended by the community college system for the purposes of this part.

PART III

SECTION 7. This part:

SECTION 8. Section 383-123, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Administrative use. Moneys credited to the account of this State in the unemployment trust fund by the Secretary of the Treasury of the United States pursuant to section 903 of the Social Security Act, as amended, may be requisitioned and used for the payment of benefits and for the payment of expenses incurred for the administration of this State's unemployment compensation law and public employment offices pursuant to a specific appropriation of the legislature; provided that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law which:

Moneys credited to the account of this State pursuant to section 903 of the Social Security Act, as amended, may not be withdrawn or used except for the payment of benefits and for the payment of expenses for the administration of this chapter pursuant to this subsection.

The appropriation, obligation, and expenditure or other disposition of [money] moneys appropriated under this subsection shall be accounted for in accordance with standards established by the United States Secretary of Labor. Moneys appropriated for the payment of expenses of administration pursuant to this subsection shall be requisitioned as needed for the payment of obligations incurred under the law appropriating the moneys and, upon requisition, shall be deposited in the employment security administration fund from which such payments shall be made. Moneys so deposited [shall], until expended, shall remain a part of the unemployment compensation fund and, if it will not be expended within one week after it is withdrawn from the unemployment trust fund, shall be returned at the earliest practical date to the Secretary of the Treasury of the United States for credit to this State's account in the unemployment trust fund.

(c) Notwithstanding subsection (b), moneys credited to the State's account in federal fiscal years ending in 2000, 2001, and 2002 shall be used solely for the administration of the unemployment compensation program and are not subject to the specific appropriation requirements of subsection (b)[.]; except that moneys credited in calendar year 2002 with respect to P.L. 107-147 shall not be subject to the conditions of this subsection or the two-year limitation requirement specified in subsection (b)."

SECTION 9. There is appropriated from the unemployment trust fund from moneys deposited pursuant to section 383-123(b) the sum of $15,000,000 or so much thereof as may be necessary for fiscal year 2005-2006 and the same sum or so much thereof as may be necessary for fiscal year 2006-2007 for the administrative expenses of the employment security program as administered by the county workforce investment boards.

The sums appropriated shall be expended by the community college system for the purposes of this part.

SECTION 10. No funds appropriated under section 8 to the community college system for use by the community college system may be released by the governor to the community college system until all funds appropriated by the legislature for the benefit of the counties under section 8 have been timely, fully, and completely released to the counties as intended by the legislature.

The allotment system powers granted to the governor and the executive branch by the legislature under part II of chapter 37, Hawaii Revised Statutes, shall not apply to the appropriation of federal Reed Act funds in section 8, as the appropriation of federal moneys does not affect the solvency of the general fund.

SECTION 11. The community college system shall report back to the legislature at least twenty days prior to the convening of the regular session of 2007 on the status of the timely release of funds appropriated for the benefit of the counties under this part. The department shall make another report to the legislature at least twenty days prior to the convening of the regular session of 2008 on the status of the timely release of the year two funds appropriated for the benefit of the counties under this part. Where a delay in the release of these funds is reported to the legislature by the community college system, the community college system shall explain the delay to the legislature and shall submit to the legislature, as soon as practicable, a corrective action plan intended to ensure the timely release of these funds.

PART IV

SECTION 12. All rights, powers, functions, and duties of the state department of labor and industrial relations regarding manpower development and training programs are transferred to the community college system of the University of Hawaii.

All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 13. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the state department of labor and industrial relations relating to the functions transferred to the community college system of the University of Hawaii shall be transferred with the functions to which they relate.

SECTION 14. If any provision of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting provision of this Act shall be held inoperative solely to the extent of the conflict with respect to the agencies directly affected, and shall not affect the operation of the remainder of this Act in its application to the agencies concerned.

SECTION 15. In codifying the new part added to chapter 305, Hawaii Revised Statutes, by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for letters used in designating the new sections in this Act.

SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect on July 1, 2006.