STAND. COM. REP. NO. 1343

Honolulu, Hawaii

RE:    H.B. No. 918

       H.D. 1

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 918, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYMENT AND TRAINING FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase employment, earnings, and occupational skill level of the workforce in Hawaii, and as a result, improve productivity and competitiveness of Hawaii businesses.

     More specifically, this measure allows employment and training fund moneys to be used to supplement insufficient funds allocated under the federal Workforce Investment Act of 1998, Public Law 105-220, as amended, as a temporary measure from July 1, 2013, to June 30, 2014, until a long-term solution is created.  This measure also clarifies that the moneys collected as part of the employment and training assessment for the purpose of paying interest assessments in 2011 are used by the employment and training fund to support workforce training activities and further the State's economic recovery.

     Your Committee received written comments in support of this measure from the Department of Labor and Industrial Relations and ILWU Local 142.

     Your Committee finds that the recent reduction in federal Workforce Investment Act funding for administrative purposes has adversely affected the ability of the Department of Labor and Industrial Relations to carry out statewide administrative functions and to support local workforce systems, including programs under the federal Workforce Investment Act.  Although the Department maintains the same federal responsibilities regarding program management, administration, reporting, and oversight, these responsibilities must be met with less federal financial assistance.  This measure will temporarily assist the Department of Labor and Industrial Relations to fulfill its federally mandated responsibilities to provide certain workforce training programs until a long-term solution is derived.

     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. 918, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

DAVID Y. IGE, Chair