STAND. COM. REP. NO. 201

Honolulu, Hawaii

RE: S.B. No. 1503

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 1503 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require the Department of Labor and Industrial Relations to develop and implement training programs, public-private partnerships, funding opportunities, and recruitment strategies to develop a local workforce to meet the growing demand for defense-related personnel and promote economic diversification.

Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations, Hawaii Military Affairs Council, Chamber of Commerce Hawaii, and one individual.

Your Committee finds that the defense industry has continuously grown in the State in recent years, leading to a parallel increase in demand for defense-related personnel. The defense industry is the second largest industry segment in the State's economy, acting as a critical employer and driver of economic growth. This measure capitalizes on the industry's presence to further diversify the economy and employ more residents by requiring the Department of Labor and Industrial Relations to develop and implement a variety of measures to develop the local defense-related workforce.

Your Committee has amended this measure by:

(1) Inserting language that requires the Department of Labor and Industrial Relations to submit a report to the Legislature before the convening of the Regular Session of 2027 and every other year thereafter;

(2) Changing the appropriation to an unspecified amount;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

Your Committee notes that this measure, as amended, contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $1,000,000 for the Department of Labor and Industrial Relations to develop and increase the defense-related workforce in the State and promote economic diversification.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1503, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1503, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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HENRY J.C. AQUINO, Chair