STAND. COM. REP. NO. 1440

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1166
                                        H.D. 1
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1166, H.D. 1, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to specify that contracts funded
through the employment and training fund for any of the specified
purposes of the fund are exempt from the public procurement code.

     This bill also removes obsolete references to grants and
subsidies being exempt from requirements pertaining to grants and
subsidies.

     Your Committee finds that clarifying amendments are
necessary to reflect the reality that the fund operates through
the disbursements of contracts rather than the disbursements of
grants and subsidies.  Furthermore, your Committee finds that the
continued success of the fund requires flexibility from the
constraints of the public procurement code and related laws.

     Your Committee has amended this measure by also exempting
disbursements from the fund from the requirements of chapter

 
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                                   STAND. COM. REP. NO. 1440
                                   Page 2


103F, Hawaii Revised Statutes, pertaining to the purchases of
health and human services.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1166, H.D. 1, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 1166,
H.D. 1, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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