STAND. COM. REP. NO. 1567

Honolulu, Hawaii

RE:    H.B. No. 751

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 751, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to attach further conditions to the Department of Labor and Industrial Relations' expenditure of the appropriation made from the unemployment trust fund for fiscal year 2006-2007 by Act 190, Session Laws of Hawaii 2006.

     Specifically, this measure attaches a proviso that prohibits not more than a specified percentage of the subappropriations to be used for administrative purposes and provides that the moneys appropriated lapse on June 30, 2009.

     Your Committee received comments on the measure from the Department of Labor and Industrial Relations and the Workforce Development Council.

     Your Committee finds that passage of this measure is critical.  Severe cuts in federal funding has hampered ongoing operations of the workforce investment boards and the workforce development council, such that an infusion of federal Reed Act funds will permit the workforce investment boards and the workforce development council to initiate activities that will benefit both Hawaii's employers and employees.

     Your Committee has amended this measure by recasting the proviso for administrative purposes from a specified percentage of the subappropriations to a specified sum and by accordingly reducing the amounts of the subappropriations.  The total appropriation is unchanged.

     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. 751, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 751, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair