STAND. COM. REP. NO. 654

Honolulu, Hawaii

RE: S.B. No. 365

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Education, to which was referred S.B. No. 365 entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Business, Economic Development, and Tourism to develop annual regional economic plans for each county to identify regional economic priorities and industry clusters and jobs within those priorities and clusters;

(2) Require the Workforce Development Council to develop, based on the findings of the regional economic plans, K‑16 pathways and programs in each public school, including each public charter school, that prepare students to fill the priority jobs identified in the regional economic plans; and

(3) Require participating schools to communicate opportunities to enroll in K-16 pathways and qualified internship programs to prepare students for jobs identified by regional economic plans as priorities in each geographical area.

Your Committees received testimony in support of this measure from the Workforce Development Council, State Public Charter School Commission, Chamber of Commerce Hawaii, HawaiiKidsCAN, W.A.V.E. Hawai‘i Kids Can, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and eight individuals. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; State Procurement Office; Department of Education, Executive Office on Early Learning; and University of Hawai‘i System.

Your Committees find that technological advancements in automation and artificial intelligence will reshape the State and global economy and future generations must possess adaptability and skills to be successful in this new future economy. Your Committees also find that the State must develop a strategic, forward-looking approach toward work-based learning. This measure requires the Department of Business, Economic Development, and Tourism to develop annual regional economic plans for each county that will be used by the Workforce Development Council, Department of Education, and the University of Hawaii to provide K-16 pathways and internship programs in each public school, including each public charter school, thereby encouraging and fostering the education and future professional success of Hawaii's children in an ever-changing technology-influenced economy.

Your Committees have amended this measure by:

(1) Exempting internship placements made within a qualified internship program, rather than all aspects of a qualified internship program, from the Hawaii procurement code; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 365, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 365, S.D. 1, and be referred to your Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Education,

________________________________ MICHELLE N. KIDANI, Chair

________________________________ GLENN WAKAI, Chair