Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 522
                                        H.D. 3
                                        S.D. 1

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


     Your Committees on Labor and Environment and Education and
Technology, to which was referred H.B. No. 522, H.D. 3, entitled: 


beg leave to report as follows:

     The purpose of this measure is transfer the executive
director and staff of the School-To-Work Opportunities (STW)
Pilot Project from the Hawaii School-To-Work Opportunities
Executive Council (Council) to the Department of Education (DOE).

     This measure maintains the independence and authority of the

     Testimony in support of this measure with amendments was
received from the Department of Labor and Industrial Relations.
The DOE testified in support of the concept of this measure.  The
University of Hawaii and the Chamber of Commerce of Hawaii
testified in support of this measure.

     Your Committees find that there is a need to ensure the
successful continuation of the STW concept beyond the life of the
federally funded pilot project.  It is imperative that STW
projects take place within the institutional purview of the DOE.
There must also be a system in place by which the STW project can
draw on the resources of other government agencies and the
private sector.

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     Your Committees find, however, that it would be imprudent to
alter the present structure of the STW pilot project and the
Council as this may jeopardize the project's federal funding.
Federal funds are available for the project until August 1, 2000.  

     Your Committees strongly believe that the Council must
develop a concrete action plan immediately in order to ensure
that public funds are being spent judiciously.  This action plan
must address the methods used to create positive outcomes in
educational curriculum that contribute to workforce development.
Your Committees also expressed concern that any plan of work
developed by the Council not be limited to only task groups.

     Your Committees also strongly believe that there is an
immediate need to provide intermediary services for educational
institutions and employers seeking to institute work-based
curricula and placement.  These intermediary services include a
referral service for educational institutions seeking potential
employers for students.  One of the most frequent complaints of
employers who are interested in participating in STW and other
workforce development efforts is that they are besieged with
requests beyond their capacity to comply.  The staff of the STW
Opportunities Pilot Project are equipped to negotiate with both
employers and educators regarding the appropriate work-based
learning experiences for students.  The staff also has access to
educational institutions statewide and, therefore, can provide a
fair and equitable access to potential employers by any of these

     Your Committees have amended this measure by replacing its
contents with the language of S.B. No. 1475, S.D. 1, which:

     (1)  Transfers the administrative control of STW
          opportunities pilot project from the Council to the DOE
          and makes the Council an advisory body to the BOE and

     (2)  Allows the Superintendent of Education to appoint the
          executive director of STW opportunities pilot project,
          and allows the DOE to employ other staff of the
          project; and 

     (3)  Makes the changes to the STW project and Council
          effective January 1, 2001.

     In addition, your Committees have amended the measure by:

     (1)  Including in the activities of the STW pilot project a
          plan of work that may be carried out by task groups;

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     (2)  Clarifying that staff support for the advisory council
          will be provided by the DOE and other state agencies
          where appropriate;

     (3)  Requiring that the Council or DOE provide intermediary
          services for employers and educational institutions
          seeking to institute work-based learning curricula and
          placement; and

     (4)  Appropriating funds to carry out the STW Opportunities
          Pilot Project.

     As affirmed by the records of votes of the members of your
Committees on Labor and Environment and Education and Technology
that are attached to this report, your Committees are in accord
with the intent and purpose of H.B. No. 522, H.D. 3, as amended
herein, and recommend that it pass Second Reading in the form
attached hereto as H.B. No. 522, H.D. 3, 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 Education and

____________________________       ______________________________
DAVID Y. IGE, Chair                BOB NAKATA, Chair

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