SB2959 SD1

Report Title:

Workforce Development Act; UH; Reed Act Funds; Appropriation

Description:

Establishes the rapid response development and training program within the community college system; transfers the manpower development and training program from the DLIR to the UH community college system; makes appropriation to UH for rapid response development and training program and to community college system for manpower development and training program. (SD1)

THE SENATE	S.B. NO.	2959
TWENTY-THIRD LEGISLATURE, 2006		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to labor.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. Career and technical education, including apprenticeship education and job upgrade training, have been an integral component of the community college system of the University of Hawaii (community college system) since 1964. The community college system presently serves as the state's major resource in preparing and re-educating Hawaii's workforce in these changing economic times offering short-term training, certificates, and associate degree programs in more than one hundred twenty specialty areas. In addition, the employment training center of the community college system has developed considerable knowledge and expertise in working with hard-to-serve non-traditional students in a focused job preparation setting. This has significantly improved the state's ability to field a skilled workforce in many different fields.

Recent closings of businesses with a long history in Hawaii, as well as the closing of many plantations, including the recent announcement that the Del Monte Corporation will soon cease pineapple operations on Oahu and Kauai, has created a need for a shifting of the skilled labor force. Rapid response to these types of incidences that allow for the expeditious training of workers in other skills that will allow them to return to the labor market is paramount. Providing vocational and industrial training, including training in new and innovative industries, promotes a healthy and productive society and will continue to serve to strengthen our economy.

The purpose of this part is to statutorily establish a rapid response development and training program within the community college system of the University of Hawaii.

SECTION 2. Chapter 305, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part RAPID RESPONSE DEVELOPMENT AND TRAINING PROGRAM"

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

§305-B Establishment of programs. (a) There is established within the community college system, a rapid response development and training program for the various industries in the state. The training program 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, the Manoa and Hilo 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, the Manoa and Hilo 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.

§305-D 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 rapid response development and training program for the community college system within the particular county.

§305-E 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-D.

§305-F 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, Hawaiian natural products, and space applications, including astronomical research.

§305-G New industry training program. (a) There is established the new industry training program, within the rapid response development and training program established under section 305-A, which shall be administered by the community college system. Program moneys may be used:

(1) To tailor training or retraining programs to meet the needs of qualifying businesses;

(2) To reimburse instructors for valid and approved expenditures in delivering instruction under the program;

(3) To rent appropriate training facilities and equipment;

(4) To purchase or develop materials required to deliver the instruction; and

(5) For any other training-related expenses of the program.

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

(1) Be licensed to do business in Hawaii;

(2) Establish or expand operations in Hawaii; and

(3) Be engaged in research, development, manufacturing, production, or delivery of services in growth industries, including but not limited to electronics, software, instrumentation, biotechnology, renewable energy, telecommunications, computers, mariculture, aquaculture, tropical agriculture, Hawaiian natural products, and space applications, including astronomical research.

(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 3. 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 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2006-2007 to establish a rapid response development and training program within the community college system of the university of Hawaii.

The sum appropriated shall be expended by the University of Hawaii for the purposes of this part.

PART II

SECTION 5. 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 6. 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 and to determine the extent to which the employment needs of individuals can be met by job training or a public service job. §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 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 n, the community college system, University of Hawaii at Manoa, University of Hawaii-Hilo, or other suitable agencies. If there is a need to overcome barriers to possible training, the community college system, 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.

§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, University of Hawaii at Manoa, University of Hawaii-Hilo 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 private organizations. The private employer shall be responsible for compensating such persons the minimum wage and the State may pay 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 manpower training.

§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.

§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 shall be provided 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:

(1) To tailor training or retraining programs to meet the needs of qualifying businesses;

(2) To reimburse instructors for valid and approved expenditures in delivering instruction under the program;

(3) To rent appropriate training facilities and equipment;

(4) To purchase or develop materials required to deliver the instruction; and

(5) For any other training-related expenses of the program.

(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. 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:

(1) Be licensed to do business in Hawaii;

(2) Establish or expand operations in Hawaii; and

SECTION 7. 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 8. Chapter 394, Hawaii Revised Statutes, is repealed.

SECTION 9. 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 10. This part:

(1) Appropriates Reed Act moneys to the community college system of the University of Hawaii for the administration of public employment offices within the jurisdiction of the county workforce investment boards, specifically to:

(A) Provide seed moneys to be used in consultation with the local workforce investment boards of each of the four counties, to develop and implement plans that benefit employment service programs operated by the counties;

(B) Allow the four local workforce investment boards of each of the four counties to:

(i) Improve employer outreach and services;

(ii) Improve labor force pool expansion;

(iii) Improve capacity building; and

(iv) Support administration and service delivery of employment and information services in the one-stop operating system;

and

(2) Provide funds for any infrastructure and support costs of county employment service programs.

SECTION 11. 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 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 12. No funds appropriated for purposes of section 383-123(b) or (c), Hawaii Revised Statutes, 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 11 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 383-123(b) or (c), Hawaii Revised Statutes, as the appropriation of federal moneys does not affect the solvency of the general fund.

SECTION 13. The community college system shall report 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 14. 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 15. 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 16. 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 17. In codifying the new parts added to chapter 305, Hawaii Revised Statutes, by sections 2 and 6 of this Act, the revisor of statutes shall substitute appropriate section numbers for letters used in designating the new sections in this Act.

SECTION 18. New statutory material is underscored.

SECTION 19. This Act shall take effect on July 1, 2006.