STAND. COM. REP. NO. 1049

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1166
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Labor and Environment and Government
Operations and Housing, to which was referred H.B. No. 1166,
H.D. 1, entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to exempt the Employment and
Training Fund (ETF) Program from the state procurement code.

     Testimony in support of this measure was received from the
Department of Labor and Industrial Relations and the Department
of Accounting and General Services.

     Your Committees find that the ETF Program has successfully
trained over 25,000 clients since its inception in 1992.  In
order to continue to provide this kind of service to Hawaii's
business community, it is necessary to exempt the fund from the
State's procurement code.

     Your Committees also find that the fund contracts for
services, rather than provides grants and subsidies under chapter
42F, as stated in the present draft of the measure.

     Your Committees have amended this measure by:


 
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                                   STAND. COM. REP. NO. 1049
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     (1)  Replacing the phrase "grants and subsidies" with
          "contracts" and eliminating other references to grants
          and subsidies; and

     (2)  Exempting the contracts made for training programs from
          chapters 103D and 103F.

     As affirmed by the records of votes of the members of your
Committees on Labor and Environment and Government Operations and
Housing that are attached to this report, your Committees are in
accord with the intent and purpose of H.B. No. 1166, H.D. 1, as
amended herein, and recommend that it pass Second Reading in the
form attached hereto as H.B. No. 1166, H.D. 1, S.D. 1, and be
referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and
                                   Environment and Government
                                   Operations and Housing,



____________________________       ______________________________
ROD TAM, Chair                     BOB NAKATA, Chair

 
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