HB2820.DOC

SECTION 1. The legislature finds that immediate, speedy action must be taken to reduce unemployment in this State. The present decline in the health of the state and national economies and the high rates of unemployment that will accompany this decline will cause considerable hardship among the residents of the State. The legislature further finds it is therefore prudent at this time to take steps to alleviate the effects of a high rate of unemployment through the development of a state unemployment program aimed at creating one hundred thousand jobs for the unemployed and underemployed. The purpose of this Act is to:

(1) Enable unemployed and underemployed persons with employment in needed public service jobs, and, whenever feasible, related training and manpower services, to move into employment or training supported under this chapter; and

(2) Provide subsidies for certain private employers to participate in the employment programs involving the training and hiring of unemployed persons.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

state comprehensive employment and training program

part i. general provisions

§ -1 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Department" means the department of labor and industrial relations.

"Director" means the director of labor and industrial relations.

"Unemployed person" means a person who is without a job and is able, available, and seeking full-time employment.

§ -2 Authority. (a) The director may create and administer a statewide state-funded subsidized public service employment program. In carrying out the program, the director shall accord priority to individuals to be hired in the following order:

(1) Unemployed persons who have been unemployed for more than fifteen weeks, including those who have exhausted their unemployment benefits;

(2) All other unemployed persons, who are unemployment insurance claimants including those who have exhausted their unemployment benefits;

(3) All other unemployed persons, whether or not they are unemployment insurance claimants, who are certified by the director as recipients of state public assistance under chapter 346; and

(4) All other unemployed persons, whether or not they are unemployment insurance claimants.

(b) Persons employed in public service jobs under this chapter shall not be paid wages below the state minimum wage.

(c) Persons under subsection (b) shall not be considered state employees and shall not be subject to the provisions of law relating to state employment, including those regarding hours of work, rates of compensation, leave, unemployment compensation, and state employee benefits.

(d) For purposes of chapter 386, persons under subsection (b) shall be deemed employees of the State within the meaning of the term "employee" as defined in section 386-1, and the provisions of that chapter shall apply.

§ -3 Relationship of program under this part to other state programs. The program under this part is a state-funded program. Accordingly, the director shall not be required to conform this program with that of other public service employment programs.

The director, immediately upon the effective date of this chapter, shall implement this part. The director shall coordinate the activities with any other state or county activities relating to public service employment, including but not limited to programs under chapters, 202, 394, and 394B, and sections 346-71 and 346-101.

§ -4 Rules. The director shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter.

§ -5 Reports. The director shall report on the progress of this chapter to the legislature annually.

part Ii. STATE ASSISTANCE FOR CERTAIN EMPLOYMENT

§ -11 State subsidy for certain employers. Any employer, whether profit-making or nonprofit making, who agrees to participate in an employment program to train and permanently hire unemployed persons, shall be entitled to a state subsidy in accordance with this part and rules as may be necessary.

§ -12 Nature of subsidy. The subsidy shall be to defray extra costs of providing employment and a program of training and support services. It may be used for on-the-job training and counseling, job orientation, job-related education, instruction in English as a second language, medical and dental services, transportation expenses, a portion of wages, and other costs related to the employment.

All subsidies shall be made directly to the employer by the director. The amounts of the subsidies shall be determined by the director in accordance with guidelines adopted by the director, and all subsidies shall be incorporated into contracts entered into between the director and the participating employers.

§ -13 Limitations. No subsidy shall exceed $ for one permanent job position. The maximum subsidy allowed to any one employer shall be $ or an amount not to exceed twenty-five per cent of any one employer's workforce, whichever is the lesser amount, except under exceptional circumstances as determined by the director. The training subsidy for a given position shall not exceed twenty weeks.

part IIi. STATE LOANS FOR CERTAIN EMPLOYMENT

§ -21 State loans for certain private employers. Any private employer, whether profit or nonprofit, who agrees to participate in an employment program to train and permanently hire unemployed persons shall be entitled to qualify for state low-interest loans for purposes described in this part.

§ -22 Nature of loans. The employer who qualifies shall be entitled to a loan of not more than $ for each unemployed person that the employer immediately hires; provided that the persons shall be employed at least one year or for the term of the loan, whichever is longer.

The loan shall be for five years maximum, at the rate of per cent interest a year, and shall be payable in equal monthly installments of principal and interest.

The loan shall be for purposes directly related to the maintenance or expansion of the employer's business activity.

Any provision to the contrary notwithstanding, the director shall have full authority and discretion to consider, approve, or disapprove any loan application and impose restrictions on any loan made pursuant to this part. Under no circumstances shall any one employer be granted loans exceeding $ ."

SECTION 3. 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 2010-2011 to implement section 2 of this Act by creating up to jobs for the unemployed and underemployed.

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

SECTION 4. This Act shall take effect on July 1, 2010.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2820
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII