SB609

SECTION 1. The legislature finds that the State's employment and training fund, established under section 383-128, Hawaii Revised Statutes, has a declining balance since the enactment of Act 248, Session Laws of Hawaii 2002, which reduced employer assessments to the fund. The reduction in the fund's revenues has resulted in the unintended consequence of a deficiency in the administration of the fund.

The purpose of this Act is to:

(1) Establish an advisory committee to make recommendations, relative to the employment and training fund, to the legislature on:

(A) Methods to increase revenues to the fund; and

(B) Improvements to administration of the fund; and

(2) Transfer reverted revenues to the employment and training fund; and

(3) Make an appropriation to the employment and training fund to increase training.

SECTION 2. Chapter 36, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§36- Transfer of reverted revenues to employment and training fund. The director of finance, with the approval of the governor, may transfer at the end of every fiscal year, up to ten per cent of unexpended and unencumbered funds in special funds, revolving funds, special accounts, or appropriations, that are unexpended and unencumbered at the end of a fiscal year and that would otherwise revert into the general fund, to the credit of the employment and training fund under section 383‑128. The amounts transferred to the employment and training fund shall be deemed to be appropriated to that fund for the purpose of article VII, section 4, of the state constitution."

SECTION 3. (a) There is established a temporary advisory committee to make recommendations to the legislature and the department of labor and industrial relations on the administration of the employment and training fund. The advisory committee shall be under the department of labor and industrial relations for administrative purposes.

(b) The temporary advisory committee shall be appointed by the governor, without regard to section 26-34, Hawaii Revised Statutes, and shall be composed of a total of eleven representatives, as follows:

(1) Two from the Hawaii workforce development council;

(2) Three from the private sector of business; provided that one representative under this paragraph shall represent a small business, one representative shall represent a medium-sized business, and one shall represent a large business, as the governor shall determine;

(3) Three from labor unions;

(4) The director of labor and industrial relations, or designee;

(5) The director of business, economic development, and tourism, or designee;

(6) One to represent the governor's designee.

The governor shall appoint the chairperson of the temporary advisory committee from amongst its members. The members shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(1) Obtaining other means of increasing revenues to the employment and training fund, including but not limited to, repeal of the statutory revisions to section 383-129(a), Hawaii Revised Statutes, as enacted by Act 248, Session Laws of Hawaii 2002;

(2) Determining a reasonable and necessary constant balance of funds in the employment and training fund; and

(3) Improving the administration of the employment and training fund so as to improve the fund's efficacy to serve its purpose of increasing employment-related education and training, including but not limited to, identifying and eliminating barriers and simplifying the process to providing education and training.

(d) The temporary advisory committee shall report to the legislature no later than twenty days prior to the convening of the regular session of 2008 on findings and recommendations.

(e) The department of labor and industrial relations shall report on the progress of implementing the temporary advisory committee's recommendations, which shall be included in the department's report to the legislature on the status of the employment and training fund pursuant to section 383-128(h), Hawaii Revised Statutes.

(f) The temporary advisory committee shall cease to exist on May 15, 2008.

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 2007-2008, to be deposited into the employment and training fund, established in section 383-128, Hawaii Revised Statutes.

SECTION 5. There is appropriated out of the employment and training fund the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for purposes set forth in section 383-128(b), Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 6. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2007.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	609
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII