Report Title:

State Comprehensive Employment Training Program



Creates the state comprehensive employment training program providing subsidized employment for work with a public purpose.  Appropriates funds.




H.B. NO.














relating to unemployment.





SECTION 1.  The legislature finds that immediate, speedy action must be taken to reduce unemployment in this State.  The present decline in the health of the state and national economies and the high rates of unemployment that will accompany this decline will cause considerable hardship among the residents of the State.  The legislature further finds it is therefore prudent at this time to take steps to alleviate the effects of a high rate of unemployment through the development of a state unemployment program.  The purpose of this Act is to:

(1)  Assist unemployed persons who have used all available unemployment insurance benefits with employment in needed public service jobs, and, whenever feasible, related training and manpower services, to enable them to move into temporary full-time or part-time employment or training supported under this chapter; and

(2)  Provide subsidies for certain private employers to participate in the employment programs involving the training and hiring of unemployed persons.

SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:


state comprehensive employment and training program

part i.  general provisions

     §   -1  Definitions.  As used in this chapter, unless the context clearly requires otherwise:

     "Department" means the department of labor and industrial relations.

     "Director" means the director of labor and industrial relations.

     "Unemployed person" means a person who is without a job and is able, available, and seeking full-time employment.

     §   -2  Authority.  (a) The director may create and administer a statewide state-funded subsidized public service employment program.  In carrying out the program, the director shall accord priority to individuals to be hired in the following order:

(1)  Unemployed persons who have exhausted their unemployment benefits; and

(2)  All other unemployed persons that do not qualify for unemployment benefits.

(b)  Persons employed in public service jobs under this chapter shall not be paid wages below the state minimum wage. 

(c)  Persons under subsection (b) shall not be considered state employees and shall not be subject to the provisions of law relating to state employment, including those regarding hours of work, rates of compensation, leave, unemployment compensation, and state employee benefits.

(d)  For purposes of chapter 386, persons under subsection (b) shall be deemed employees of the State within the meaning of the term "employee" as defined in section 386-1, and the provisions of that chapter shall apply.

     §   -3  Relationship of program under this part to other state programs.  The program under this part is a state-funded program.  Accordingly, the director shall not be required to conform this program with that of other public service employment programs.

     The director, immediately upon enactment of this part, shall implement this part.  The director shall coordinate the activities with any other federal, state, or county activities relating to public service employment, including but not limited to programs under chapters, 202, 394, and 394B, and sections 208-5, 346-71, and 346-101.

     §   -4  Rules.  The director shall adopt rules pursuant to chapter 91 necessary for the purposes of this chapter.

     §   -5  Reports.  The director shall report on the progress of this chapter to the legislature annually.


§   -11  State subsidy for certain employers.  Any employer, whether profit-making or nonprofit making, who agrees to participate in an employment program to train and permanently hire unemployed persons, shall be entitled to a state subsidy in accordance with this part and rules as may be necessary.

§   -12  Nature of subsidy.  The subsidy shall be to defray extra costs of providing employment and a program of training and support services.  It may be used for on-the-job training and counseling, job orientation, job-related education, instruction in English as a second language, medical and dental services, transportation expenses, a portion of wages, and other costs related to the employment.

All subsidies shall be made directly to the employer by the director.  The amounts of the subsidies shall be determined by the director in accordance with guidelines adopted by the director, and all subsidies shall be incorporated into contracts entered into between the director and the participating employers.

§   -13  Limitations.  No subsidy shall exceed $         for one permanent job position.  The maximum subsidy allowed to any one employer shall be $          or an amount not to exceed twenty-five per cent of any one employer's workforce, whichever is the lesser amount, except under exceptional circumstances as determined by the director.  The training subsidy for a given position shall not exceed twenty weeks."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 to implement section 2 of this Act.

     The sum appropriated shall be expended by the director of labor and industrial relations for the purposes of this Act.

     SECTION 4.  This Act shall take effect on the later of:

(1)  July 1, 2009; or

(2)  The date upon which:

(A)  The State's seasonally adjusted unemployment rate is determined by the department of labor and industrial relations to have exceeded seven per cent; and

(B)  The governor issues a proclamation that the events in subparagraph (A) have occurred and publishes a notice statewide as provided in section 1-28.5, Hawaii Revised Statutes,

and shall be repealed on June 30, 2010.