STAND. COM. REP. NO.  1663-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2876

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2876, H.D. 1, 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 allocating Reed Act moneys out of the Unemployment Trust Fund to the Hawaii and Oahu Workforce Investment Boards (WIB) to improve employer outreach and services, labor force pool expansion, and capacity building, and to fund some shared costs for the operations of the one-stop career centers within each county.

     The Mayor of the County of Hawaii, County of Hawaii's Office of Housing and Community Development, Kanoelehua Industrial Area Association, Inc., Hawaii Island Workforce & Economic Development Ohana, Office of Continuing Education and Training at Hawaii Community College, Rural Development Program at Hawaii Community College, and several concerned individuals supported this bill.  The Department of Labor and Industrial Relations (DLIR) submitted comments.

     Your Committee notes that while this measure deals with allocations to the Hawaii and Oahu WIBs, no testimony was received from the Oahu WIB.

     Your Committee has amended this bill by:

(1)  Deleting the provision allocating money to the Oahu WIB;

(2)  Appropriating $2,000,000 to the Hawaii WIB;

(3)  Specifying that the Hawaii WIB may use a portion of the allocated moneys to reimburse DLIR for certain administrative expenses;

(4)  Changing the effective date to July 1, 2020, to encourage further discussion; and

(5)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2876, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2876, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair