Honolulu, Hawaii



RE:    H.B. No. 918

       H.D. 1

       S.D. 1




Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii




     Your Committee on Judiciary and Labor, to which was referred H.B. No. 918, H.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to permit the Department of Labor and Industrial Relations to temporarily use employment and training fund monies to administer, manage, report, and oversee Title I programs funded under the federal Workforce Investment Act of 1998; as amended (Workforce Investment Act).


     Your Committee received testimony in support of this measure from the Department of Labor and Industrial Relations; International Longshore and Warehouse Union, Local 142; and one individual.


     Your Committee finds that programs funded under the federal Workforce Investment Act are primarily intended to provide adults, dislocated workers, youth, and other target groups with relevant training programs and intensive job counseling services to better prepare them for new careers.  However, the Department of Labor and Industrial Relations testified that since 2011, the amount of funds that may be used to administer Workforce Investment Act programs has been reduced by sixty-seven percent, while the State's responsibilities regarding program management, administration, reporting, and oversight have remained the same.  Without supplemental funds, the Department may be unable to fulfill all of its federally mandated responsibilities, which could potentially subject the State to disallowed costs for non‑compliance, which can only be repaid by using non-federal funds, thereby increasing the State's general fund liabilities.  This measure temporarily allows the Department to use employment and training fund monies to supplement the reduced funding for statewide administration and fulfill its federal responsibilities until a longer-term solution is derived.


     Your Committee has amended this measure by:


     (1)  Deleting the language in the effective date language regarding the repeal and reenactment of section 383‑128, Hawaii Revised Statutes;


     (2)  Inserting an effective date of July 1, 2013; and


     (3)  Making a technical, nonsubstantive amendment for the purpose of clarity and consistency.


     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 918, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 918, 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 Committee on Judiciary and Labor,