STAND. COM. REP. NO.  162

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 751

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 751 entitled:

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

begs leave to report as follows:

     The purpose of this bill is to support workforce and economic development by:

     (1)  Extending the time period in which the Department of               Labor and Industrial Relations may expend Reed Act            monies appropriated under Act 190, Session Laws of               Hawaii 2006 (Act 190);

     (2)  Removing restrictions placed on funds used by the              Workforce Development Council that conflict with federal      restrictions; and

     (3)  Providing DLIR with up to 10 percent of these funds for        administrative purposes.

     DLIR, the Workforce Development Council, and the Workforce Investment Boards of the City and County of Honolulu, County of Maui, County of Hawaii, and County of Kauai testified in support of this bill.

     Act 190 provided $10,000,000 in Reed Act funds to four county workforce investment boards for workforce and economic development purposes.  However, the one year time frame to expend these funds has proven to be inadequate due to the complexity of the issue and the procedural requirements involved in using federal funds.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 751 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair