Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1147
                                        S.D. 1

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


     Your Committee on Labor and Environment, to which was
referred S.B. No. 1147 entitled: 


begs leave to report as follows:

     The purpose of this measure is to expand the duties and
responsibilities of the Workforce Development Council (Council)
in order to conform to federal legislation. 

     The measure permits the Council to function as the State
Workforce Investment Board for purposes of the Federal Workforce
Investment Act of 1998.  The measure also expands the Council
from seventeen members to as many as twenty-nine; adding to the
Council two mayors, four legislators, and additional members of
the business community.  

     Testimony in support of this measure was received from the
Department of Labor and Industrial Relations (DLIR), the
Department of Business, Economic Development, and Tourism, and
the Department of Human Services.  Testimony in support of this
measure with amendments was received from the Workforce
Development Council, and the Office of the State Director for
Vocational Education.  Testimony in opposition to this measure
was received by an individual.

     Your Committee finds that if Hawaii hopes to attract high
technology businesses or to sustain and grow the ones already in

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the State, it is important to develop the State's workforce
potential.  Upon the passage of this measure, the State will
conform to federal mandates and qualify for approximately
$17,000,000 authorized by Federal legislation.  These funds will
be available to DLIR to develop workforce policies, conduct
planning and evaluation, offer a variety of services, and conduct
a research and statistics program.

     The Council and the Office of the State Director for
Vocational Education requested amendments to the measure as

     (1)  Changing references to the federal law to the Carl D.
          Perkins Vocational and Technical Education Act (Public
          Law No. 105-332); and

     (2)  Adding paragraph (13) to section 202-2 to designate the
          Council as the entity to conduct activities to be in
          compliance with Public Law No. 105-332.

     As affirmed by the record of votes of the members of your
Committee on Labor and Environment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1147, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1147,
S.D. 1, and be referred to the Committee on Ways and Means.

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

                                   BOB NAKATA, Chair

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