STAND. COM. REP. NO. 865

Honolulu, Hawaii

RE: S.B. No. 365

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means, to which was referred S.B. No. 365, S.D. 1, 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 HawaiiKidsCAN, W.A.V.E. (HawaiiKidsCAN), O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and four individuals. Your Committees received comments on this measure from the Department of Education; Department of Business, Economic Development, and Tourism; State Procurement Office; and one individual.

Your Committees find that the State can expand opportunities to better prepare students for college and their careers. The Department of Business, Economic Development, and Tourism should be required to develop annual regional economic plans for each county based on the boundaries of development or community plans in each county. Additionally, the Workforce Development Council, in partnership with the Department of Education and the University of Hawaii, can use this data to provide K-16 pathways and internship programs in each public school and public charter school to match the State's specific industry needs. These pathways, industry certifications, and qualified internship programs will serve as the foundation for developing work-based learning opportunities that reflect high-growth, high-need industries, which are often concentrated in health care, technical roles, business and finance, information technology, and management.

Your Committees have amended this measure by:

(1) Authorizing the payment of bonus incentives to participating public schools for each student who receives an industry certification, in addition to each student who completes a qualified internship program, and making conforming amendments;

(2) Exempting, from the Hawaii Public Procurement Code procurements for the placement of students in qualified internship programs, rather than the entire qualified internship program; and

(3) 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 Public Safety, Intergovernmental, and Military Affairs and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 365, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 365, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ CLARENCE K. NISHIHARA, Chair