Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2947, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to increase the amount of federal Reed Act funds previously appropriated out of the unemployment insurance trust fund for fiscal year 2006-2007 under Act 249, Session Laws of Hawaii 2005 (Act 249).

Furthermore, this measure repeals the requirement under Act 249 that allocations of the funds must first be made to the workforce investment boards before they can be made to the Department of Labor and Industrial Relations. This measure also repeals the requirement that the allotment system is inapplicable to the allocation of the funds.

While your Committee strongly believes that Act 249 correctly and legitimately took effect by operation of law, your Committee is aware that the legitimacy of Act 249 is still in dispute. Accordingly, your Committee is resolved to discuss the issue further in Conference.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2947, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2947, H.D. 2, S.D. 2.